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Employer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 462.31 Td (Identification No.\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 79.50 447.45 Td (5100 Patrick Henry Drive, Santa Clara, California) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.25 447.45 Td (95054) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.10 436.31 Td (\(Address of principal executive offices\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.60 436.31 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 183.65 420.70 Td (Registrant's telephone number) Tj ET Q q 0 0 0 rg BT 292.38 420.70 Td (, including area code: ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 372.10 420.70 Td (\(408\)764-4000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 202.50 406.90 Td (Securities registered pursuant to Section12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 393.95 406.90 Td (Act:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 66 377.4 m 257 377.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 377.4 m 527 377.4 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 134.70 381.46 Td (Title of each class) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.20 386.16 Td (Name of each exchange on which) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.65 379.21 Td (r) Tj ET Q q 0 0 0 rg BT 416.63 379.21 Td (egister) Tj ET Q q 0 0 0 rg BT 436.32 379.21 Td (ed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.75 368.71 Td (Common Stock, $0.01 par value) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.50 368.71 Td (The NASDAQ Stock MarketLLC) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.35 357.71 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 191.65 342.10 Td (Securities registered pursuant to Section12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 383.10 342.10 Td (Act: None) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 325.30 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 294.80 325.30 Td (, as defined in Rule405 of the Securities ) Tj ET Q q 0 0 0 rg BT 442.77 325.30 Td (Act.) 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Tj ET Q q 0 0 0 rg BT 73.74 297.70 Td (Y) Tj ET Q q 0 0 0 rg BT 79.34 297.70 Td (es) Tj ET Q /GS0 gs q 8.02 0 0 9.18 89.09 295.76 cm /I5 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 97.11 297.70 Td (No) Tj ET Q /GS0 gs q 9.54 0 0 9.18 119.36 295.76 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 280.90 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 Exchange ) Tj ET Q q 0 0 0 rg BT 539.57 280.90 Td (Act of 1934 ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 9.00 270.10 Td (during the preceding 12months \(or for such shorter period that the registrant was required to file such reports\) and \(2\)has been subject to such filing requirements ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 9.00 259.30 Td (for the past 90days.) Tj ET Q q 0 0 0 rg BT 83.65 259.30 Td (Y) Tj ET Q q 0 0 0 rg BT 89.25 259.30 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 99.00 257.36 cm /I7 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 108.54 259.30 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 130.79 257.36 cm /I8 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 242.50 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 405.46 242.50 Td (W) Tj ET Q q 0 0 0 rg BT 413.23 242.50 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 461.13 242.50 Td (, every Interactive Data File required ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 9.00 231.70 Td (to be submitted and posted pursuant to Rule405 of RegulationS-T) Tj ET Q q 0 0 0 rg BT 250.06 231.70 Td ( \(229.405 of this chapter\) during the preceding 12months \(or for such shorter period that the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 9.00 220.90 Td (registrant was required to submit and post such files.) 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Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 205.45 32.30 Td (DOCUMENT) Tj ET Q q 0 0 0 rg BT 258.79 32.30 Td ( INCORPORA) Tj ET Q q 0 0 0 rg BT 315.87 32.30 Td (TED BY) Tj ET Q q 0 0 0 rg BT 348.79 32.30 Td ( REFERENCE) Tj ET Q 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 endstream endobj 5 0 obj <>] /Rotate 0 /Contents 6 0 R>> endobj 6 0 obj <> stream BT /F1 9.00 Tf ET q 0 0 0 rg BT 36.00 731.80 Td (Portions of the registrant's Proxy Statement for the registrant's fiscal 2015 ) Tj ET Q q 0 0 0 rg BT 303.45 731.80 Td (Annual Meeting of Stockholders are incorporated by reference into PartIII of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 9.00 721.00 Td (Form10-K to the extent stated herein. ) Tj ET Q q 0 0 0 rg BT 148.30 721.00 Td (The Proxy Statement or an amended report on Form10-K will be filed within 120days of the registrant's fiscal year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 9.00 710.20 Td (September27, 2014) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 81.24 710.20 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 8.5 699.7 m 602.5 699.7 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 8.5 695.7 m 602.5 695.7 l s BT /F1 10.00 Tf ET 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 endstream endobj 7 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream 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 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 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 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 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 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 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 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.) 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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 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 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 548 663.0833984375 m 558 663.0833984375 l s q 0 0 1 rg BT 548.00 664.42 Td (31) 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 548 648.0833984375 m 558 648.0833984375 l s q 0 0 1 rg BT 548.00 649.42 Td (31) 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 548 633.0833984375 m 558 633.0833984375 l s q 0 0 1 rg BT 548.00 634.42 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 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 548 618.0833984375 m 558 618.0833984375 l s q 0 0 1 rg BT 548.00 619.42 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 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 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 548 578.0833984375 m 558 578.0833984375 l s q 0 0 1 rg BT 548.00 579.42 Td (34) 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 548 563.0833984375 m 558 563.0833984375 l s q 0 0 1 rg BT 548.00 564.42 Td (36) 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 548 538.0833984375 m 558 538.0833984375 l s q 0 0 1 rg BT 548.00 539.42 Td (37) 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 548 523.0833984375 m 558 523.0833984375 l s q 0 0 1 rg BT 548.00 524.42 Td (53) 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 548 508.0833984375 m 558 508.0833984375 l s q 0 0 1 rg BT 548.00 509.42 Td (54) 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 548 483.0833984375 m 558 483.0833984375 l s q 0 0 1 rg BT 548.00 484.42 Td (54) 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 548 468.0833984375 m 558 468.0833984375 l s q 0 0 1 rg BT 548.00 469.42 Td (55) 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 548 453.0833984375 m 558 453.0833984375 l s q 0 0 1 rg BT 548.00 454.42 Td (57) 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 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 548 423.0833984375 m 558 423.0833984375 l s q 0 0 1 rg BT 548.00 424.42 Td (58) 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 548 408.0833984375 m 558 408.0833984375 l s q 0 0 1 rg BT 548.00 409.42 Td (59) 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 548 383.0833984375 m 558 383.0833984375 l s q 0 0 1 rg BT 548.00 384.42 Td (59) 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 548 358.0833984375 m 558 358.0833984375 l s q 0 0 1 rg BT 548.00 359.42 Td (59) 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 548 343.0833984375 m 558 343.0833984375 l s q 0 0 1 rg BT 548.00 344.42 Td (59) 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 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 548 313.0833984375 m 558 313.0833984375 l s q 0 0 1 rg BT 548.00 314.42 Td (61) 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 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 548 298.9833984375 m 558 298.9833984375 l s q 0 0 1 rg BT 548.00 300.32 Td (64) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 9 0 obj <>] /Rotate 0 /Contents 10 0 R>> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.35 742.10 Td (SPECIAL) Tj ET Q q 0 0 0 rg BT 198.54 742.10 Td ( NOTE REGARDING FOR) Tj ET Q q 0 0 0 rg BT 310.49 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 318.82 742.10 Td (ARD LOOKING ST) Tj ET Q q 0 0 0 rg BT 401.35 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 407.46 742.10 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (This annual report contains certain forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 306.41 710.10 Td (These forward-looking statements include, without limitation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (statements relating to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 678.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 666.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 666.10 Td (expansion into, and financial returns from, new markets; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 642.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 642.10 Td (maintenance and development of current and new customer relationships; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 618.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 618.10 Td (enhancement of market position through existing or new technologies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 594.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 594.10 Td (timing of new product introductions and shipments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 570.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 570.10 Td (optimization of product mix;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 546.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 546.10 Td (future trends in microelectronics, scientific research and government programs, OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 534.10 Td (instrumentation and materials processing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 510.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 510.10 Td (utilization of vertical integration;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 486.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 486.10 Td (adoption of our products or lasers generally; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 462.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 462.10 Td (applications and processes that will use lasers, including the suitability of our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 438.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 438.10 Td (capitalization on market trends;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 414.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 414.10 Td (alignment with current and new customer demands;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 390.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 390.10 Td (positioning in the marketplace and gains of market share;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 366.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 366.10 Td (design and development of products, services and solutions; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 342.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 342.10 Td (control of supply chain and partners;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 318.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 318.10 Td (protection of intellectual property rights; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 294.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 294.10 Td (compliance with environmental and safety regulations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 270.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 270.10 Td (net sales and operating results;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 246.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 246.10 Td (capital spending;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 222.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 222.10 Td (order volumes;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 198.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 198.10 Td (variations in stock price;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 174.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 174.10 Td (growth in our operations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 150.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 150.10 Td (market acceptance of products; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 126.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 126.10 Td (trends in the instrumentation market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 102.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 102.10 Td (controlling our costs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 78.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 78.10 Td (suf) Tj ET Q q 0 0 0 rg BT 116.04 78.10 Td (ficiency and management of cash, cash equivalents and investments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 54.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 54.10 Td (acquisition ef) Tj ET Q q 0 0 0 rg BT 157.97 54.10 Td (forts, payment methods for acquisitions and utilization of technology from our acquisitions;) 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 50 771.2669921875 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 endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 730.10 Td (sales by geography;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 706.10 Td (ef) Tj ET Q q 0 0 0 rg BT 111.59 706.10 Td (fect of legal claims;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 682.10 Td (expectations regarding the payment of future dividends;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 658.10 Td (ef) Tj ET Q q 0 0 0 rg BT 111.59 658.10 Td (fect of competition on our financial results;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 634.10 Td (plans to renew leases when they expire;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 610.10 Td (accounting for goodwill and intangible assets, inventory valuation, warranty reserves and taxes; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 586.10 Td (impact from our use of financial instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 554.10 Td (In addition, we include forward-looking statements under the "Our Strategy" and "Future ) Tj ET Q q 0 0 0 rg BT 432.92 554.10 Td (T) Tj ET Q q 0 0 0 rg BT 438.68 554.10 Td (rends" headings set forth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 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 50.00 530.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.39 530.10 Td (Analysis of Financial Condition and Results of Operations.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 510.10 Td (Y) Tj ET Q q 0 0 0 rg BT 80.22 510.10 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 466.33 510.10 Td (," "will," "could," ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 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 50.00 486.10 Td (observation," or the negative of such terms, or other comparable terminology) Tj ET Q q 0 0 0 rg BT 357.78 486.10 Td (. Forward-looking statements also include the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 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 74.00 454.10 Td (Our actual results could dif) Tj ET Q q 0 0 0 rg BT 182.68 454.10 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 50.00 442.10 Td (factors, including those set forth below in "Business," "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 394.83 442.10 Td (Analysis of Financial Condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Results of Operations" and under the heading "Risk Factors." ) Tj ET Q q 0 0 0 rg BT 297.21 430.10 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 50.00 418.10 Td (based on information available to us on the date hereof. ) Tj ET Q q 0 0 0 rg BT 274.47 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.11 418.10 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 50.00 406.10 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 50.00 394.10 Td (events, except to the extent required by law) Tj ET Q q 0 0 0 rg BT 223.17 394.10 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 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 endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream 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 (2014) 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 (2013) 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 (2012) 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 (September27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.33 658.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (September28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.26 646.25 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.20 646.25 Td (September29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.47 646.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 235.13 646.25 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 433.93 646.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.93 646.25 Td (, fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.09 646.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.09 646.25 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 634.25 Td ( for convenience. Fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.62 634.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.62 634.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.62 634.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.62 634.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.05 634.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.05 634.25 Td ( included 52weeks.) 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 suppliers of photonics-based solutions in a broad range of commercial and scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (research applications. ) Tj ET Q q 0 0 0 rg BT 138.95 602.25 Td (W) Tj ET Q q 0 0 0 rg BT 147.58 602.25 Td (e design, manufacture, service and market lasers and related accessories for a diverse group of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (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 OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 151.74 510.25 Td (The size and complexity of many of the SLS products require service to be performed at the customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (site by factory-trained field service engineers. CLC focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 440.52 498.25 Td (fered in set configurations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (The product architectures are designed for easy exchange at the point of use such that substantially all product service and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (repairs are based upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 352.91 474.25 Td (. CLC's primary markets include materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (processing, original equipment manufacturer \("OEM"\) 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 \(loss\) 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 \(loss\) from operations represents the sales less the cost of sales and direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (operating expenses incurred within the operating segments as well as allocated expenses such as shared sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (manufacturing costs. ) Tj ET Q q 0 0 0 rg BT 135.63 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 144.27 406.25 Td (e do not allocate to our operating segments certain operating expenses, which we manage separately at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (the corporate level. ) Tj ET Q q 0 0 0 rg BT 129.22 394.25 Td (These unallocated costs include stock-based compensation and corporate functions \(certain advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (research and development, management, finance, legal and human resources\) and are included in Corporate and other) Tj ET Q q 0 0 0 rg BT 520.36 382.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (Management does not 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 50.00 214.25 Td (INDUSTR) Tj ET Q q 0 0 0 rg BT 94.66 214.25 Td (Y) Tj ET Q q 0 0 0 rg BT 101.51 214.25 Td ( BACKGROUND) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 194.25 Td (The word "laser" is an acronym for "light amplification by stimulated emission of radiation." ) Tj ET Q q 0 0 0 rg BT 447.75 194.25 Td (A) Tj ET Q q 0 0 0 rg BT 454.42 194.25 Td ( laser emits an intense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (coherent beam of light with some unique and highly useful properties. Most importantly) Tj ET Q q 0 0 0 rg BT 402.34 182.25 Td (, a laser is orders of magnitude brighter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.25 Td (than any lamp. ) Tj ET Q q 0 0 0 rg BT 111.10 170.25 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 50.00 158.25 Td (requiring very high power densities including cutting and other materials processing procedures. ) Tj ET Q q 0 0 0 rg BT 438.33 158.25 Td (The laser's high spatial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.25 Td (resolution is also useful for microscopic imaging and inspection applications. Laser light can be monochromaticall the beam ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.25 Td (ener) Tj ET Q q 0 0 0 rg BT 67.03 134.25 Td (gy is confined to a narrow wavelength band. Some lasers can be used to create ultrafast outputa series of pulses with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.25 Td (pulse durations as short as attoseconds \(i.e.,10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 237.19 125.88 Td (-18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.12 122.25 Td ( seconds\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 102.25 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 90.25 Td (action. ) Tj ET Q q 0 0 0 rg BT 79.25 90.25 Td (This can be in the form of a gas, liquid, semiconductor) Tj ET Q q 0 0 0 rg BT 297.69 90.25 Td (, solid state crystal or fiber) Tj ET Q q 0 0 0 rg BT 403.77 90.25 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 78.25 Td (output wavelength: ultraviolet, visible, infrared or wavelength tunable. ) Tj ET Q q 0 0 0 rg BT 335.01 78.25 Td (W) Tj ET Q q 0 0 0 rg BT 343.65 78.25 Td (e manufacture all of these laser types. ) Tj ET Q q 0 0 0 rg BT 496.74 78.25 Td (There are also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.25 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 66.25 Td (, beam dimensions, etc. In fact, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.25 Td (each application has its specific requirements in terms of laser performance. ) Tj ET Q q 0 0 0 rg BT 356.36 54.25 Td (The broad technical depth at Coherent enables us ) 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 50 771.2669921875 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 endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream 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 (to of) Tj ET Q q 0 0 0 rg BT 68.43 742.10 Td (fer a diverse set of product lines characterized by lasers tar) Tj ET Q q 0 0 0 rg BT 303.13 742.10 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 50.00 730.10 Td (we aim to be the supplier of choice by of) Tj ET Q q 0 0 0 rg BT 213.38 730.10 Td (fering a high-value combination of superior technical performance and high reliability) Tj ET Q q 0 0 0 rg BT 557.60 730.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 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 517.37 710.10 Td (. Photonics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 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 50.00 686.10 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 50.00 674.10 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 50.00 662.10 Td (conventional technology because it can do the job faster) Tj ET Q q 0 0 0 rg BT 273.96 662.10 Td (, better or more economically) Tj ET Q q 0 0 0 rg BT 391.32 662.10 Td (. Second, there are new applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 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 50.00 638.10 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 50.00 626.10 Td (computers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 606.10 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 50.00 594.10 Td (manufacturing; solar cell production; medical and bio-instrumentation; materials processing; industrial process and quality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (control; marking; imaging and printing; graphic arts and display; and, research and development. For example, ultraviolet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (\(UV\) lasers are enabling the move towards miniaturization, which drives innovation and growth in many markets. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (addition, the advent of industrial grade ultrafast lasers continues to open up new applications for laser processing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (OUR STRA) Tj ET Q q 0 0 0 rg BT 100.65 538.10 Td (TEGY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 518.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 518.10 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 50.00 506.10 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 398.41 506.10 Td (, we intend to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 485.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 485.10 Td (Leverage our) Tj ET Q q 0 0 0 rg BT 160.74 485.10 Td ( technology portfolio and application engineering to lead the pr) Tj ET Q q 0 0 0 rg BT 429.73 485.10 Td (oliferation of photonics into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 473.10 Td (br) Tj ET Q q 0 0 0 rg BT 113.82 473.10 Td (oader) Tj ET Q q 0 0 0 rg BT 138.08 473.10 Td ( markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.57 473.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.21 473.10 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 104.00 461.10 Td (engineering can be used to of) Tj ET Q q 0 0 0 rg BT 221.28 461.10 Td (fer innovative solutions and gain access to new markets. ) Tj ET Q q 0 0 0 rg BT 448.81 461.10 Td (W) Tj ET Q q 0 0 0 rg BT 457.45 461.10 Td (e plan to utilize our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 449.10 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 77.00 428.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 428.10 Td (Optimize our) Tj ET Q q 0 0 0 rg BT 160.75 428.10 Td ( leadership position in existing markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.71 428.10 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 104.00 416.10 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 104.00 404.10 Td (derived a substantial portion of our revenues. ) Tj ET Q q 0 0 0 rg BT 287.10 404.10 Td (W) Tj ET Q q 0 0 0 rg BT 295.74 404.10 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 77.00 383.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 383.10 Td (Maintain and develop additional str) Tj ET Q q 0 0 0 rg BT 257.18 383.10 Td (ong collaborative customer) Tj ET Q q 0 0 0 rg BT 372.53 383.10 Td ( and industry r) Tj ET Q q 0 0 0 rg BT 436.53 383.10 Td (elationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.11 383.10 Td (W) Tj ET Q q 0 0 0 rg BT 505.74 383.10 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 371.10 Td (the Coherent brand name and reputation for product quality) Tj ET Q q 0 0 0 rg BT 341.61 371.10 Td (, technical performance and customer satisfaction will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 359.10 Td (help us to further develop our loyal customer base. ) Tj ET Q q 0 0 0 rg BT 309.32 359.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.96 359.10 Td (e plan to maintain our current customer relationships and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 347.10 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 104.00 335.10 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 77.00 314.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 314.10 Td (Develop and acquir) Tj ET Q q 0 0 0 rg BT 187.16 314.10 Td (e new technologies and market shar) Tj ET Q q 0 0 0 rg BT 339.47 314.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.91 314.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.54 314.10 Td (e will continue to enhance our market position ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 302.10 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 104.00 290.10 Td (ef) Tj ET Q q 0 0 0 rg BT 111.59 290.10 Td (forts, as well as through the acquisition of additional complementary technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 524.71 290.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 278.10 Td (manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 263.77 278.10 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 257.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 257.10 Td (Str) Tj ET Q q 0 0 0 rg BT 117.15 257.10 Td (eamline our) Tj ET Q q 0 0 0 rg BT 167.79 257.10 Td ( manufacturing structur) Tj ET Q q 0 0 0 rg BT 271.50 257.10 Td (e and impr) Tj ET Q q 0 0 0 rg BT 317.98 257.10 Td (ove our) Tj ET Q q 0 0 0 rg BT 349.74 257.10 Td ( cost structur) Tj ET Q q 0 0 0 rg BT 406.21 257.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 257.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.29 257.10 Td (e will focus on optimizing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 245.10 Td (mix of products that we manufacture internally and externally) Tj ET Q q 0 0 0 rg BT 351.04 245.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.86 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 364.50 245.10 Td (e will utilize vertical integration where our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 233.10 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 104.00 221.10 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 77.00 200.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 200.10 Td (Focus on long-term impr) Tj ET Q q 0 0 0 rg BT 210.20 200.10 Td (ovement of adjusted EBITDA, in dollars and as a per) Tj ET Q q 0 0 0 rg BT 436.71 200.10 Td (centage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.07 200.10 Td (W) Tj ET Q q 0 0 0 rg BT 536.71 200.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 188.10 Td (define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 203.42 188.10 Td ( as operating income adjusted for depreciation, amortization, stock compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 176.10 Td (expenses, 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 104.00 164.10 Td (reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 217.85 164.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 381.15 164.10 Td (Asian manufacturing locations, rationalizing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 152.10 Td (our supply chain and continued leveraging of our infrastructure.) 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 50 771.2669921875 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 endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 742.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 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 50.00 710.25 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 50 688.68505859375 m 121.2646484375 688.68505859375 l s q 0 0 0 rg BT 50.00 690.25 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 690.25 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 690.25 Td (onics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 670.25 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 50.00 658.25 Td (tablets, ultrabooks, personal computers \("PC's"\), televisions \("TV's"\) and now "wearables" are driving advances in displays, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (integrated circuits and PCBs. In response to market demands and expectations, semiconductor and device manufacturers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (continually seeking to improve their process and design technologies in order to manufacture smaller) Tj ET Q q 0 0 0 rg BT 454.20 634.25 Td (, more powerful and more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (reliable devices at lower cost. New laser applications and new laser technologies are a key element in delivering higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (resolution and higher precision at lower manufacturing cost.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 590.25 Td (e support three major markets in the microelectronics industry: \(1\)flat panel display \("FPDs"\) manufacturing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (\(2\)advanced packaging and interconnects and \(3\)semiconductor front-end.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 558.25 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 558.25 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 558.25 Td (onicsflat panel display manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 538.25 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 50.00 526.25 Td (ultrabooks, laptop computers, ) Tj ET Q q 0 0 0 rg BT 171.19 526.25 Td (TVs and wearables. ) Tj ET Q q 0 0 0 rg BT 252.64 526.25 Td (There are several types of established and emer) Tj ET Q q 0 0 0 rg BT 442.09 526.25 Td (ging displays based on quite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 514.25 Td (ferent technologies, including liquid crystal \("LCD"\) and or) Tj ET Q q 0 0 0 rg BT 299.96 514.25 Td (ganic polymers \("OLED"\). Each of these technologies utilize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 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 50.00 490.25 Td (superior display brightness and resolution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 470.25 Td (Several display types require a high-density pattern of silicon thin film transistors \("TFT) Tj ET Q q 0 0 0 rg BT 427.31 470.25 Td (s"\). If this silicon is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.25 Td (polycrystalline, the display performance is greatly enhanced. In the past, these polysilicon layers could only be produced on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.25 Td (expensive special glass at high temperatures. However) Tj ET Q q 0 0 0 rg BT 268.13 446.25 Td (, excimer) Tj ET Q q 0 0 0 rg BT 305.14 446.25 Td (-based processes, such as excimer laser annealing \("ELA"\) have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.25 Td (allowed high-volume production of low-temperature polysilicon \("L) Tj ET Q q 0 0 0 rg BT 322.54 434.25 Td (TPS"\) on conventional glass substrates. Our excimer lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.25 Td (provide an invaluable solution for L) Tj ET Q q 0 0 0 rg BT 193.21 422.25 Td (TPS because they are the only industrial-grade excimer lasers with the high pulse ener) Tj ET Q q 0 0 0 rg BT 538.20 422.25 Td (gy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (optimized for this application. ) Tj ET Q q 0 0 0 rg BT 172.85 410.25 Td (The current state-of-the-art product for this application is our excimer ) Tj ET Q q 0 0 0 rg BT 454.22 410.25 Td (VYPER laser) Tj ET Q q 0 0 0 rg BT 507.98 410.25 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (delivers over 1000W) Tj ET Q q 0 0 0 rg BT 133.68 398.25 Td ( of power) Tj ET Q q 0 0 0 rg BT 171.60 398.25 Td (, enabling customers to scale to current Generation 5 & 5.5 substrates all the way up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (Generation 8 sizes. ) Tj ET Q q 0 0 0 rg BT 128.68 386.25 Td (These systems are integral to the manufacturing process on all leading L) Tj ET Q q 0 0 0 rg BT 417.39 386.25 Td (TPS-based smart phone displays, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (with the highest commercially available pixel densities of greater than 300 pixels per inch \(ppi\), with the current trends going ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (to even higher ppi for high end smart phones, and hold the potential for deployment in tablet display and OLED ) Tj ET Q q 0 0 0 rg BT 500.00 362.25 Td (TV) Tj ET Q q 0 0 0 rg BT 513.14 362.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 330.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 91.50 330.25 Td (A) Tj ET Q q 0 0 0 rg BT 97.43 330.25 Td (VIA, Rapid, ) Tj ET Q q 0 0 0 rg BT 148.91 330.25 Td (T) Tj ET Q q 0 0 0 rg BT 154.32 330.25 Td (alisker and DIAMOND lasers are also used in other production processes for FPDs. ) Tj ET Q q 0 0 0 rg BT 491.85 330.25 Td (These processes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (include drilling, cutting, patterning, marking and yield improvement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 298.25 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 298.25 Td (onicsadvanced packaging and inter) Tj ET Q q 0 0 0 rg BT 259.72 298.25 Td (connects) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 278.25 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 50.00 266.25 Td (in a packaged encapsulated silicon chip. Ultimately) Tj ET Q q 0 0 0 rg BT 255.11 266.25 Td (, these chips are then assembled into finished products. ) Tj ET Q q 0 0 0 rg BT 477.38 266.25 Td (The advent of high-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 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 50.00 242.25 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 50.00 230.25 Td (thinner silicon. Our ) Tj ET Q q 0 0 0 rg BT 129.99 230.25 Td (A) Tj ET Q q 0 0 0 rg BT 135.92 230.25 Td (VIA, Rapid, ) Tj ET Q q 0 0 0 rg BT 187.40 230.25 Td (T) Tj ET Q q 0 0 0 rg BT 192.81 230.25 Td (alisker and Matrix lasers provide economical methods of cutting and scribing these wafers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (while delivering higher yields than traditional mechanical methods. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 198.25 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 50.00 186.25 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 50.00 174.25 Td (method for drilling microvias in chip substrates and in both rigid and flexible PCBs. ) Tj ET Q q 0 0 0 rg BT 388.94 174.25 Td (These microvias are tiny interconnects that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.25 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 50.00 150.25 Td (DIAMOND carbon dioxide \("CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 184.34 148.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.59 150.25 Td ("\) and ) Tj ET Q q 0 0 0 rg BT 213.88 150.25 Td (A) Tj ET Q q 0 0 0 rg BT 219.82 150.25 Td (VIA) Tj ET Q q 0 0 0 rg BT 237.04 150.25 Td ( diode pumped solid state \("DPSS"\) lasers are the lasers of choice in this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.25 Td (application. ) Tj ET Q q 0 0 0 rg BT 99.25 138.25 Td (The ability of these lasers to operate at very high repetition rates translates into faster drilling speeds and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.25 Td (throughput in microvia processing applications. In addition, multi-layer circuit boards require more flexible production ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.25 Td (methods than conventional printing technologies can of) Tj ET Q q 0 0 0 rg BT 271.99 114.25 Td (fer) Tj ET Q q 0 0 0 rg BT 282.69 114.25 Td (, which has led to widespread adoption of laser direct imaging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.25 Td (\("LDI"\). Our Paladin laser is used for this application.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 82.25 Td (Lasers have also become a valuable tool in high-brightness \("HB"\) LED manufacturing, improving LED performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (and yield. LEDs have widespread adoption as the light source in all categories of LCD displays, from phones all the way to full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (size ) Tj ET Q q 0 0 0 rg BT 67.87 58.25 Td (TVs and moving into general lighting. Our lasers are used in back-end processing of HB-LEDs.) 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 50 771.2669921875 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 endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 742.25 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 742.25 Td (onicssemiconductor) Tj ET Q q 0 0 0 rg BT 193.85 742.25 Td ( fr) Tj ET Q q 0 0 0 rg BT 203.94 742.25 Td (ont-end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 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 74.00 702.25 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 50.00 690.25 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 50.00 678.25 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 50.00 666.25 Td (inspection techniques that are closely linked to the manufacturing process. For example, automated laser) Tj ET Q q 0 0 0 rg BT 468.28 666.25 Td (-based inspection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 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 50.00 642.25 Td (optical microscopes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 622.25 Td (Detecting the presence of defects is only the first step in preventing their recurrence. ) Tj ET Q q 0 0 0 rg BT 413.59 622.25 Td (After detection, defects must be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 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 437.18 610.25 Td (This examination is called ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 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 50.00 586.25 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 50.00 574.25 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 50.00 562.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 67.50 562.25 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 50 540.68505859375 m 138.4130859375 540.68505859375 l s q 0 0 0 rg BT 50.00 542.25 Td (Materials pr) Tj ET Q q 0 0 0 rg BT 103.41 542.25 Td (ocessing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 522.25 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 50.00 510.25 Td (joining, drilling, perforating, and marking of metals and nonmetals. ) Tj ET Q q 0 0 0 rg BT 322.26 510.25 Td (W) Tj ET Q q 0 0 0 rg BT 330.90 510.25 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 50.00 498.25 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 74.00 478.25 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 50.00 466.25 Td (materials processing applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.25 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 50.00 434.25 Td (cooling and stacking technology) Tj ET Q q 0 0 0 rg BT 179.04 434.25 Td (. ) Tj ET Q q 0 0 0 rg BT 183.86 434.25 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 50.00 422.25 Td (well as our Highlight kW) Tj ET Q q 0 0 0 rg BT 151.47 422.25 Td ( class and upcoming multi-kilowatt class fiber lasers. Our dif) Tj ET Q q 0 0 0 rg BT 395.12 422.25 Td (ferentiated fiber laser design of) Tj ET Q q 0 0 0 rg BT 519.88 422.25 Td (fers our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (customers a higher level of integration and additional options for product serviceability) Tj ET Q q 0 0 0 rg BT 398.42 410.25 Td (. Our fiber lasers are used for metal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (cutting, cladding, welding and additive manufacturing applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 378.25 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 458.12 376.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.37 378.25 Td ( laser) Tj ET Q q 0 0 0 rg BT 482.20 378.25 Td (. Introduced in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (2009, this laser remains in high demand due to its high power) Tj ET Q q 0 0 0 rg BT 296.23 366.25 Td (, small size and completely sealed design - all ideal for materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (processing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 334.25 Td (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 295.35 332.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 334.25 Td ( of) Tj ET Q q 0 0 0 rg BT 309.25 334.25 Td (ferings with our MET) Tj ET Q q 0 0 0 rg BT 395.94 334.25 Td (A) Tj ET Q q 0 0 0 rg BT 402.61 334.25 Td ( flatbed cutting tool provides a strong, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (compelling four) Tj ET Q q 0 0 0 rg BT 113.95 322.25 Td (-pronged approach to meeting the needs of our diverse materials processing customers. ) Tj ET Q q 0 0 0 rg BT 464.49 322.25 Td (The new MET) Tj ET Q q 0 0 0 rg BT 522.01 322.25 Td (A) Tj ET Q q 0 0 0 rg BT 528.68 322.25 Td ( 10C ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 310.25 Td (fers the industry's most compact 1kW) Tj ET Q q 0 0 0 rg BT 208.91 310.25 Td ( tool, with tool footprints at least 50% smaller than competitive designs. Due to its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (accurate power control it of) Tj ET Q q 0 0 0 rg BT 160.32 298.25 Td (fers highest versatility and cuts and engraves metal, plastics and or) Tj ET Q q 0 0 0 rg BT 427.01 298.25 Td (ganics in one setup. Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (costs, due to a combination of input power ef) Tj ET Q q 0 0 0 rg BT 230.61 286.25 Td (ficiencies and the sealed nature of the DIAMOND series of CO2 lasers, are 50% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (less than similar) Tj ET Q q 0 0 0 rg BT 114.59 274.25 Td (, but lar) Tj ET Q q 0 0 0 rg BT 145.23 274.25 Td (ger tools.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 254.25 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 50.00 242.25 Td (host of materials using our DIAMOND CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 223.87 240.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.12 242.25 Td ( lasers; Highlight fiber array product \("F) Tj ET Q q 0 0 0 rg BT 388.20 242.25 Td (AP"\) semiconductor lasers in OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (opportunities and direct end user applications with MET) Tj ET Q q 0 0 0 rg BT 274.98 230.25 Td (A) Tj ET Q q 0 0 0 rg BT 281.65 230.25 Td ( cutting tools; applications including cutting, perforating and scoring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (of paper) Tj ET Q q 0 0 0 rg BT 82.64 218.25 Td (, thin metals and packaging materials; and various cutting and patterning applications in the textile, wood and sign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (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 50.00 194.25 Td (complex shapes in leather for footwear) Tj ET Q q 0 0 0 rg BT 205.37 194.25 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 50.00 182.25 Td (denims.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 162.25 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 50.00 150.25 Td (which we remain a leading supplier) Tj ET Q q 0 0 0 rg BT 191.90 150.25 Td (. ) Tj ET Q q 0 0 0 rg BT 196.72 150.25 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 50.00 138.25 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 50.00 126.25 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 63.89 124.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.14 126.25 Td ( lasers provide many systems manufacturers with a reliable cost ef) Tj ET Q q 0 0 0 rg BT 332.43 126.25 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 50.00 114.25 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 50.00 102.25 Td (marking of other materials in high volume manufacturing.) 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 80.68505859375 m 217.5146484375 80.68505859375 l s q 0 0 0 rg BT 50.00 82.25 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 62.25 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 50.25 Td (include bio-instrumentation, medical OEMs, graphic arts and display and machine vision.) Tj ET Q q 0 0 0 rg BT 411.40 50.25 Td (W) Tj ET Q q 0 0 0 rg BT 420.04 50.25 Td (e also support the laser) Tj ET Q q 0 0 0 rg BT 511.48 50.25 Td (-based ) 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 50 771.2669921875 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 endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream 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 50.00 742.10 Td (instrumentation market with a range of laser) Tj ET Q q 0 0 0 rg BT 226.96 742.10 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 50.00 730.10 Td (component business includes sales to other) Tj ET Q q 0 0 0 rg BT 221.51 730.10 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 50.00 718.10 Td (processing, scientific, and medical.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (Bio-instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.10 Td (Bio-instrumentation applications for lasers include bio-agent detection for point source and standof) Tj ET Q q 0 0 0 rg BT 470.66 678.10 Td (f detection of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 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 50.00 654.10 Td (cellular and subcellular structures and processes with an incredible amount of detail; DNA) Tj ET Q q 0 0 0 rg BT 411.55 654.10 Td ( sequencing that provides automation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 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 50.00 630.10 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 50.00 618.10 Td (populations of cells in a heterogeneous mixture, including blood samples. Our OBIS, Flare, Galaxy) Tj ET Q q 0 0 0 rg BT 446.77 618.10 Td (, Sapphire, Compass, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (BioRay and Coherent CUBE lasers are used in several bio-instrumentation applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Medical Therapy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 566.10 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 547.69 566.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (aesthetic, sur) Tj ET Q q 0 0 0 rg BT 102.02 554.10 Td (gical, therapeutic and dentistry) Tj ET Q q 0 0 0 rg BT 224.66 554.10 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 337.70 552.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.95 554.10 Td ( lasers are widely used in ophthalmic, aesthetic and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (sur) Tj ET Q q 0 0 0 rg BT 62.04 542.10 Td (gical markets. ) Tj ET Q q 0 0 0 rg BT 120.45 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.09 542.10 Td (e have a leading position in Lasik and photorefractive keratectomy sur) Tj ET Q q 0 0 0 rg BT 410.47 542.10 Td (gery methods with our ExciStar XS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (excimer laser platform. ) Tj ET Q q 0 0 0 rg BT 145.33 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 153.97 530.10 Td (e also provide ultrafast lasers for use in cataract sur) Tj ET Q q 0 0 0 rg BT 358.98 530.10 Td (gery) Tj ET Q q 0 0 0 rg BT 376.10 530.10 Td (, a growing applications space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 510.10 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 50.00 498.10 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 50.00 486.10 Td (Age Related Macular Degeneration and retinal diseases associated with diabetes. ) Tj ET Q q 0 0 0 rg BT 376.08 486.10 Td (The 577nm wavelength was designed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 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 50.00 462.10 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 50.00 450.10 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 50.00 438.10 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 50 416.53505859375 m 244.4189453125 416.53505859375 l s q 0 0 0 rg BT 50.00 418.10 Td (Scientific r) Tj ET Q q 0 0 0 rg BT 96.19 418.10 Td (esear) Tj ET Q q 0 0 0 rg BT 118.22 418.10 Td (ch and government pr) Tj ET Q q 0 0 0 rg BT 212.76 418.10 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 398.10 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 50.00 386.10 Td (market" for our leading-edge innovations. ) Tj ET Q q 0 0 0 rg BT 219.96 386.10 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 50.00 374.10 Td (excimer gas lasers and water) Tj ET Q q 0 0 0 rg BT 164.75 374.10 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 50.00 362.10 Td (and includes our Chameleon, COMPexPro, Evolution, Legend, Libra, MBD, MBR, ) Tj ET Q q 0 0 0 rg BT 386.73 362.10 Td (V) Tj ET Q q 0 0 0 rg BT 393.35 362.10 Td (itara, Mephisto, Mira and ) Tj ET Q q 0 0 0 rg BT 497.59 362.10 Td (V) Tj ET Q q 0 0 0 rg BT 503.70 362.10 Td (erdi lasers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (Many of the innovations and products pioneered in the scientific marketplace have become commercial successes for both our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (OEM customers and us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 318.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 318.10 Td (e have a lar) Tj ET Q q 0 0 0 rg BT 128.26 318.10 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 50.00 306.10 Td (branch of science and engineering. ) Tj ET Q q 0 0 0 rg BT 191.42 306.10 Td (These applications include biology and life science, engineering, physical chemistry and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 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 50.00 282.10 Td (measured in femto- or attoseconds \(10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 203.56 286.63 Td (-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.23 282.10 Td ( to 10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 235.01 286.63 Td (-18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.67 282.10 Td ( seconds\). 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 50.00 270.10 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 521.07 270.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (lasers also deliver very high peak power and lar) Tj ET Q q 0 0 0 rg BT 240.86 258.10 Td (ge bandwidths, which can be used to generate many exotic ef) Tj ET Q q 0 0 0 rg BT 485.87 258.10 Td (fects. Some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 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 477.76 246.10 Td (The use of ultrafast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 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 50.00 222.10 Td (tool in modern brain research. ) Tj ET Q q 0 0 0 rg BT 172.55 222.10 Td (W) Tj ET Q q 0 0 0 rg BT 181.19 222.10 Td (e recently released a new product called the Fidelity tar) Tj ET Q q 0 0 0 rg BT 402.30 222.10 Td (geted to this market.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (FUTURE ) Tj ET Q q 0 0 0 rg BT 93.43 202.10 Td (TRENDS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 182.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 182.10 Td (onics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 162.10 Td (Lasers are widely used in mass production microelectronics applications lar) Tj ET Q q 0 0 0 rg BT 376.78 162.10 Td (gely because they enable entirely new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (application capabilities that cannot be realized by any other known means. ) Tj ET Q q 0 0 0 rg BT 350.27 150.10 Td (These laser) Tj ET Q q 0 0 0 rg BT 395.32 150.10 Td (-based fabrication and testing methods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 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 442.22 138.10 Td (, are touch free, deliver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (superior end products, increase yields, and/or cut production costs. ) Tj ET Q q 0 0 0 rg BT 319.19 126.10 Td (W) Tj ET Q q 0 0 0 rg BT 327.83 126.10 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 50.00 114.10 Td (increasing sophistication and miniaturization of consumer electronic goods and their conver) Tj ET Q q 0 0 0 rg BT 417.49 114.10 Td (gence via the internet, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (increasing demand for better displays, more bandwidth and memory) Tj ET Q q 0 0 0 rg BT 322.33 102.10 Td (, and all packaged into devices which are lighter) Tj ET Q q 0 0 0 rg BT 514.91 102.10 Td (, thinner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (and consume less power) Tj ET Q q 0 0 0 rg BT 146.92 90.10 Td (. ) Tj ET Q q 0 0 0 rg BT 151.37 90.10 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 78.10 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 66.10 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 64.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.90 66.10 Td (, fiber) Tj ET Q q 0 0 0 rg BT 163.38 66.10 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 54.10 Td (improvements and reduced process costs. ) 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 50 771.2669921875 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 endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream 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 74.00 742.10 Td (L) Tj ET Q q 0 0 0 rg BT 79.19 742.10 Td (TPS-based high resolution mobile displays \(greater than 300ppi\), and especially the emer) Tj ET Q q 0 0 0 rg BT 436.70 742.10 Td (gence of OLED technology) Tj ET Q q 0 0 0 rg BT 546.29 742.10 Td (, is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (evolving as the prevalent FPD technology) Tj ET Q q 0 0 0 rg BT 217.37 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 222.19 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 230.83 730.10 Td (e believe we are well positioned, especially with our ) Tj ET Q q 0 0 0 rg BT 442.80 730.10 Td (V) Tj ET Q q 0 0 0 rg BT 448.91 730.10 Td (yper Excimer lasers and LB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (optical systems, to take advantage of this trend, including flexible OLED displays. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 87.89 696.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.14 698.10 Td (, ) Tj ET Q q 0 0 0 rg BT 95.59 698.10 Td (A) Tj ET Q q 0 0 0 rg BT 102.07 698.10 Td (via, Matrix, Rapid, ) Tj ET Q q 0 0 0 rg BT 180.21 698.10 Td (T) Tj ET Q q 0 0 0 rg BT 185.62 698.10 Td (alisker) Tj ET Q q 0 0 0 rg BT 211.87 698.10 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 50.00 686.10 Td (panel, film cutting, light guide technology) Tj ET Q q 0 0 0 rg BT 217.93 686.10 Td (, repair) Tj ET Q q 0 0 0 rg BT 245.84 686.10 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 72.50 662.10 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 423.53 662.10 Td (s mobile devices requiring thinner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (glass with higher degrees of mechanical strength and scratch resistance. ) Tj ET Q q 0 0 0 rg BT 339.43 650.10 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 50.00 638.10 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 50.00 626.10 Td (expect lasers to play an increased role. Our CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 238.54 624.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.79 626.10 Td ( and Rapid lasers are well positioned to take advantage of this trend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 606.10 Td (Semiconductor devices look set to continue Moore's Law) Tj ET Q q 0 0 0 rg BT 302.60 606.10 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 50.00 594.10 Td (as expanding vertically into new 3D structures. ) Tj ET Q q 0 0 0 rg BT 240.51 594.10 Td (As a result we believe our many UV) Tj ET Q q 0 0 0 rg BT 386.12 594.10 Td ( laser sources \(such as ) Tj ET Q q 0 0 0 rg BT 476.92 594.10 Td (Azure, Paladin, ) Tj ET Q q 0 0 0 rg BT 540.80 594.10 Td (A) Tj ET Q q 0 0 0 rg BT 547.28 594.10 Td (via, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (Rapid, ExiStar and Matrix\) 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 50.00 570.10 Td (process demands of a nanometer scale world. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 550.10 Td (The same lasers plus CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 173.42 548.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.67 550.10 Td ( are also widely adopted for back end ) Tj ET Q q 0 0 0 rg BT 328.28 550.10 Td (Advanced Packaging and Interconnect \(API\) applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 538.10 Td (ith dimension roadmaps showing a decade of dimension shrink on PCBs, interconnects, Silicon & LED scribe widths and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (wafer thickness, we believe that our portfolio of lasers aligns well with these demands as well as new processes that seem ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (likely to be enabled by our lasers, to meet the increasing demands and decreasing tolerances of these markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (Materials pr) Tj ET Q q 0 0 0 rg BT 103.41 494.10 Td (ocessing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 474.10 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 240.90 472.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 474.10 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 50.00 462.10 Td (very diverse. New product introductions such as our Diamond J-series and key design wins continue to support our growth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (this area. ) Tj ET Q q 0 0 0 rg BT 88.41 450.10 Td (These lasers represent a cost-ef) Tj ET Q q 0 0 0 rg BT 213.17 450.10 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 50.00 438.10 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 50.00 426.10 Td (apparel and leather goods manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 406.10 Td (The market for kW) Tj ET Q q 0 0 0 rg BT 150.73 406.10 Td ( class fiber lasers has seen strong growth in recent years, replacing legacy multi-kW) Tj ET Q q 0 0 0 rg BT 486.54 406.10 Td ( CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 502.93 404.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.18 406.10 Td ( lasers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (metal cutting and other applications. ) Tj ET Q q 0 0 0 rg BT 198.11 394.10 Td (This trend will likely continue into the future. ) Tj ET Q q 0 0 0 rg BT 383.17 394.10 Td (The favorable cost of ownership of high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 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 529.41 382.10 Td (They ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 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 50.00 358.10 Td (and 3D printing. ) Tj ET Q q 0 0 0 rg BT 118.14 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 126.78 358.10 Td (e believe we are well positioned to benefit from these lar) Tj ET Q q 0 0 0 rg BT 353.74 358.10 Td (ge and growing markets with our line of kW) Tj ET Q q 0 0 0 rg BT 531.29 358.10 Td ( fiber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (and diode lasers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 326.10 Td (Our four) Tj ET Q q 0 0 0 rg BT 108.51 326.10 Td (-pronged approach to the higher power industrial laser market provides us with a unique combination of high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (power) Tj ET Q q 0 0 0 rg BT 74.59 314.10 Td (, precision and compact size, which we believe will be highly desirable in existing manufacturing environments as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (as those of the future. ) Tj ET Q q 0 0 0 rg BT 138.68 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 147.32 302.10 Td (e of) Tj ET Q q 0 0 0 rg BT 162.41 302.10 Td (fer kilowatt Diamond CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 264.89 300.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.14 302.10 Td ( lasers, kilowatt class Highlight fiber series \(including a range of multi-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (kilowatt versions to be released\) and up to 10kW) Tj ET Q q 0 0 0 rg BT 245.88 290.10 Td ( Highlight direct diode lasers as well as the MET) Tj ET Q q 0 0 0 rg BT 440.86 290.10 Td (A) Tj ET Q q 0 0 0 rg BT 447.53 290.10 Td ( family of turnkey laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (machine tools. Several factors are enabling us to gain market share in the materials processing market. ) Tj ET Q q 0 0 0 rg BT 461.90 278.10 Td (W) Tj ET Q q 0 0 0 rg BT 470.54 278.10 Td (e have developed an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (expanded portfolio of lasers with a broad spectrum of wavelengths, enabling optimum solutions for virtually every metal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (non-metal material type. ) Tj ET Q q 0 0 0 rg BT 149.97 254.10 Td (At the same time, the reliability of these products has been achieved at even higher levels, lowering ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (the cost of ownership.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 202.10 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 439.38 202.10 Td (, flow cytometry and DNA) Tj ET Q q 0 0 0 rg BT 546.30 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 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 50.00 178.10 Td (OPSL) Tj ET Q q 0 0 0 rg BT 74.08 178.10 Td ( technology gives us truly dif) Tj ET Q q 0 0 0 rg BT 190.83 178.10 Td (ferentiated products at a number of important wavelengths. ) Tj ET Q q 0 0 0 rg BT 429.74 178.10 Td (This advantage coupled with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (strong focus on meeting our customers) Tj ET Q q 0 0 0 rg BT 207.84 166.10 Td ( demands for more compact and cost ef) Tj ET Q q 0 0 0 rg BT 365.10 166.10 Td (fective sources has made us very successful and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (we expect that to continue. Our OPSL) Tj ET Q q 0 0 0 rg BT 202.09 154.10 Td ( technology resulted in the first truly continuous wave solid-state UV) Tj ET Q q 0 0 0 rg BT 478.53 154.10 Td ( laser which enables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (the use of UV) Tj ET Q q 0 0 0 rg BT 105.64 142.10 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 74.00 122.10 Td (In the medical therapeutic area, we see solid business with several opportunities for growth. ) Tj ET Q q 0 0 0 rg BT 443.71 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.34 122.10 Td (e supply excimer lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (used in refractive eye sur) Tj ET Q q 0 0 0 rg BT 150.33 110.10 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 98.10 Td (ultrafast lasers in applications such as laser cataract sur) Tj ET Q q 0 0 0 rg BT 270.29 98.10 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 86.10 Td (and more reliable patient outcomes. Laser cataract sur) Tj ET Q q 0 0 0 rg BT 265.83 86.10 Td (gery is a relatively new application which is expected to see strong ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (growth over the next several years. ) Tj ET Q q 0 0 0 rg BT 192.27 74.10 Td (W) Tj ET Q q 0 0 0 rg BT 200.90 74.10 Td (e also have opportunities in dental procedures for both hard and soft tissue ablation, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (greatly improved patient comfort and outcome. In the area of photocoagulation, our Genesis OPSL) Tj ET Q q 0 0 0 rg BT 445.35 62.10 Td ( yellow lasers are being used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (as the wavelength is particularly suitable for the treatment of blood vessels. In aesthetic laser procedures, we are an OEM ) 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 50 771.2669921875 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 endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream 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 50.00 742.10 Td (supplier of CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 109.44 740.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.69 742.10 Td ( and semiconductor lasers to the major manufacturers of equipment used in the latest procedures in dermatology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (and hair removal. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (Scientific r) Tj ET Q q 0 0 0 rg BT 96.19 710.10 Td (esear) Tj ET Q q 0 0 0 rg BT 118.22 710.10 Td (ch and government pr) Tj ET Q q 0 0 0 rg BT 212.76 710.10 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 690.10 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 50.00 678.10 Td (level. Bright spots include the strong push in neuroscience to better understand how the brain works. Lasers play a very ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 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 548.03 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 556.67 666.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 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 501.45 654.10 Td (. In physics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 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 50.00 630.10 Td (have been very well received. ) Tj ET Q q 0 0 0 rg BT 171.42 630.10 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 50.00 618.10 Td (growth.) 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 50 771.2669921875 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 endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream 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) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 661.99 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) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 603.99 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) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 405.99 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) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 278.89 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 and fiber facilities all maintain an external ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 119.25 Td (customer base providing value-added solutions. ) Tj ET Q q 0 0 0 rg BT 243.11 119.25 Td (W) Tj ET Q q 0 0 0 rg BT 251.75 119.25 Td (e direct significant engineering ef) Tj ET Q q 0 0 0 rg BT 385.95 119.25 Td (forts to produce unique solutions tar) Tj ET Q q 0 0 0 rg BT 530.47 119.25 Td (geted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 107.25 Td (for internal consumption. ) Tj ET Q q 0 0 0 rg BT 153.69 107.25 Td (These investments, once integrated into our broader product portfolio, provide our customers with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 95.25 Td (uniquely dif) Tj ET Q q 0 0 0 rg BT 98.42 95.25 Td (ferentiated solutions and the opportunity to substantially enhance the performance, reliability and capability of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 83.25 Td (products we of) Tj ET Q q 0 0 0 rg BT 109.25 83.25 Td (fer) Tj ET Q q 0 0 0 rg BT 119.79 83.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 63.25 Td (TECHNOLOGIES) 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 50 771.2669921875 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 endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Diode-pumped solid-state lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 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 484.82 722.25 Td (gy) Tj ET Q q 0 0 0 rg BT 494.17 722.25 Td (, optical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (components and the types of crystals used in the laser) Tj ET Q q 0 0 0 rg BT 264.27 710.25 Td (, dif) Tj ET Q q 0 0 0 rg BT 280.20 710.25 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 74.00 690.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 690.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 131.19 690.25 Td (, reliability) Tj ET Q q 0 0 0 rg BT 174.42 690.25 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 50.00 678.25 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 50.00 666.25 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 50.00 654.25 Td (not have internal controls or components that require adjusting and cleaning to maintain consistency) Tj ET Q q 0 0 0 rg BT 450.63 654.25 Td (. ) Tj ET Q q 0 0 0 rg BT 455.45 654.25 Td (They are also less af) Tj ET Q q 0 0 0 rg BT 536.90 654.25 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (by environmental changes in temperature and humidity) Tj ET Q q 0 0 0 rg BT 270.40 642.25 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 74.00 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 622.25 Td (e manufacture a variety of types of DPSS lasers for dif) Tj ET Q q 0 0 0 rg BT 301.28 622.25 Td (ferent applications including semiconductor inspection; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (advanced packaging and interconnects; laser pumping; spectroscopy; bio-agent detection; DNA) Tj ET Q q 0 0 0 rg BT 432.38 610.25 Td ( sequencing; drug discovery; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (flow cytometry; forensics; computer) Tj ET Q q 0 0 0 rg BT 195.59 598.25 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 50.00 586.25 Td (marking, welding, engraving, cutting and drilling.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (Fiber lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 546.25 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 445.65 546.25 Td (The unique features of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.25 Td (fiber laser make them suitable for producing high power) Tj ET Q q 0 0 0 rg BT 275.08 534.25 Td (, continuous wave laser beams. ) Tj ET Q q 0 0 0 rg BT 401.81 534.25 Td (W) Tj ET Q q 0 0 0 rg BT 410.45 534.25 Td (e have introduced a 1 kilowatt fiber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (laser and we plan to introduce multi-kilowatt fiber lasers in fiscal 2015. Our fiber laser design has several unique features ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (including a modular design for improved serviceability and diode bar based pumping. Due to packaging ef) Tj ET Q q 0 0 0 rg BT 476.37 510.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 507.92 510.25 Td (, diode bars ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (reduce the overall cost of a fiber laser) Tj ET Q q 0 0 0 rg BT 200.21 498.25 Td (. Some of the most critical components inside a fiber laser include the gain fiber itself and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (the diodes providing the pump power) Tj ET Q q 0 0 0 rg BT 199.15 486.25 Td (. ) Tj ET Q q 0 0 0 rg BT 203.96 486.25 Td (W) Tj ET Q q 0 0 0 rg BT 212.60 486.25 Td (e are well positioned as a fiber laser supplier since we are vertically integrated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (respect to these key technologies; we use diode bars and fiber manufactured in-house. ) Tj ET Q q 0 0 0 rg BT 395.81 474.25 Td (W) Tj ET Q q 0 0 0 rg BT 404.45 474.25 Td (e plan to continue to drive cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (reduction in our diode laser pumps and demonstrate the scalability of the platform by moving up the power scale into the multi ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (kilowatt regime. ) Tj ET Q q 0 0 0 rg BT 117.86 450.25 Td (This platform will address the lar) Tj ET Q q 0 0 0 rg BT 250.70 450.25 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 50.00 430.25 Td (Gas lasers \(CO) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 112.23 428.82 Td (2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 115.48 430.25 Td (, Excimer) Tj ET Q q 0 0 0 rg BT 154.92 430.25 Td (, Ion\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 410.25 Td (The breadth of our gas laser portfolio is industry leading, encompassing CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 377.82 408.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.07 410.25 Td (, excimer and ion laser technologies. Gas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (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 367.77 398.25 Td (They collectively span an extremely diverse and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (useful emission range, from the very deep ultraviolet to the far infrared. ) Tj ET Q q 0 0 0 rg BT 339.16 386.25 Td (This diverse range of available wavelengths, coupled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (with high optical output power) Tj ET Q q 0 0 0 rg BT 172.92 374.25 Td (, and an abundance of other attractive characteristics, makes gas lasers extremely useful and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (popular for a variety of microelectronics, scientific, medical therapeutic and materials processing applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (Optically Pumped Semiconductor Lasers \("OPSL"\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 322.25 Td (Our OPSL) Tj ET Q q 0 0 0 rg BT 116.13 322.25 Td ( platform is a surface emitting semiconductor laser that is ener) Tj ET Q q 0 0 0 rg BT 365.31 322.25 Td (gized or pumped by a semiconductor laser) Tj ET Q q 0 0 0 rg BT 534.15 322.25 Td (. ) Tj ET Q q 0 0 0 rg BT 538.97 322.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 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 50.00 298.25 Td (powered devices. ) Tj ET Q q 0 0 0 rg BT 121.36 298.25 Td (A) Tj ET Q q 0 0 0 rg BT 128.03 298.25 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 50.00 286.25 Td (changing the frequency of the laser beam using techniques common in solid state lasers. ) Tj ET Q q 0 0 0 rg BT 405.00 286.25 Td (The platform leverages high reliability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (technologies developed for telecommunications and produces a compact, rugged, high power) Tj ET Q q 0 0 0 rg BT 422.81 274.25 Td (, single-mode laser) Tj ET Q q 0 0 0 rg BT 498.07 274.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.25 Td (Our OPSL) Tj ET Q q 0 0 0 rg BT 116.13 254.25 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 50.00 242.25 Td (therapeutics and graphic arts and display markets. ) Tj ET Q q 0 0 0 rg BT 251.97 242.25 Td (W) Tj ET Q q 0 0 0 rg BT 260.61 242.25 Td (e have expanded our of) Tj ET Q q 0 0 0 rg BT 353.72 242.25 Td (ferings in the area of entertainment lighting using a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (variety of products across the visible spectrum and we also continue to expand our ultraviolet version of the OPSL) Tj ET Q q 0 0 0 rg BT 507.85 230.25 Td ( platform ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (called 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 50.00 198.25 Td (Semiconductor lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 178.25 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 50.00 166.25 Td (produce significantly higher power levels. ) Tj ET Q q 0 0 0 rg BT 220.88 166.25 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 50.00 154.25 Td (reliability and greater ef) Tj ET Q q 0 0 0 rg BT 146.16 154.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 177.71 154.25 Td (. ) Tj ET Q q 0 0 0 rg BT 182.53 154.25 Td (W) Tj ET Q q 0 0 0 rg BT 191.17 154.25 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 50.00 142.25 Td (ranging from 650nm to over 1000nm and output powers ranging from 1W) Tj ET Q q 0 0 0 rg BT 346.71 142.25 Td ( to over 100W) Tj ET Q q 0 0 0 rg BT 403.28 142.25 Td (, with highly integrated products in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (kW) Tj ET Q q 0 0 0 rg BT 64.26 130.25 Td ( range. ) Tj ET Q q 0 0 0 rg BT 93.78 130.25 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 50.00 118.25 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 50.00 106.25 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 86.25 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 86.25 Td ( products that are manufactured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.25 Td (by us, as well as a wide variety of external medical, OEM, military and industrial applications, including aesthetic \(hair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.25 Td (removal, cosmetic dentistry\), graphic arts, counter measures, rangefinders, tar) Tj ET Q q 0 0 0 rg BT 361.09 62.25 Td (get designators, cladding, hardening and plastic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.25 Td (welding.) 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 50 771.2669921875 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 endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Ultrafast \("UF"\) Lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (Ultrafast lasers are lasers generating light pulses with durations of a few femtoseconds \(10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 435.84 725.88 Td (-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.77 722.25 Td ( seconds\) to a few tens of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (picoseconds \(10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 114.71 713.88 Td (-1) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 118.85 713.88 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 710.25 Td ( seconds\). ) Tj ET Q q 0 0 0 rg BT 163.75 710.25 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 50.00 698.25 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 50.00 686.25 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 470.26 686.25 Td (T) Tj ET Q q 0 0 0 rg BT 475.67 686.25 Td (erawatts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 666.25 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 50.00 654.25 Td (electrons. In addition, the high peak power enables so-called non-linear ef) Tj ET Q q 0 0 0 rg BT 345.82 654.25 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 50.00 642.25 Td (molecule at the same time. ) Tj ET Q q 0 0 0 rg BT 159.22 642.25 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 50.00 630.25 Td (materials with high precision and minimal thermal damage.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (SALES ) Tj ET Q q 0 0 0 rg BT 83.63 610.25 Td (AND MARKETING) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 590.25 Td (e primarily market our products in the United States through a direct sales force. Our foreign sales are made principally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (to customers in South Korea, Japan, Germany) Tj ET Q q 0 0 0 rg BT 233.20 578.25 Td (, China and other European and ) Tj ET Q q 0 0 0 rg BT 361.77 578.25 Td (Asia-Pacific countries. ) Tj ET Q q 0 0 0 rg BT 455.17 578.25 Td (W) Tj ET Q q 0 0 0 rg BT 463.81 578.25 Td (e sell internationally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (through direct sales personnel located in Canada, France, Germany) Tj ET Q q 0 0 0 rg BT 317.59 566.25 Td (, Italy) Tj ET Q q 0 0 0 rg BT 340.26 566.25 Td (, Japan, the Netherlands, China, South Korea, ) Tj ET Q q 0 0 0 rg BT 525.04 566.25 Td (T) Tj ET Q q 0 0 0 rg BT 530.45 566.25 Td (aiwan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (and the United Kingdom, as well as through independent representatives in certain jurisdictions around the world. Foreign sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.19 542.25 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.52 542.25 Td ( of our total net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.04 542.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.04 542.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.04 542.25 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.38 542.25 Td ( of our total net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.90 542.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.90 542.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 542.25 Td (76%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.67 542.25 Td ( of our total net sales in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 530.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 530.25 Td (. Sales made to independent representatives and distributors are generally priced in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 480.16 530.25 Td (A) Tj ET Q q 0 0 0 rg BT 486.83 530.25 Td ( lar) Tj ET Q q 0 0 0 rg BT 499.69 530.25 Td (ge portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (foreign sales that we make directly to customers are priced in local currencies and are therefore subject to currency exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (fluctuations. 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 484.42 506.25 Td (fs, export and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (import controls and political instability) Tj ET Q q 0 0 0 rg BT 205.44 494.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 474.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 474.25 Td (e had one customer) Tj ET Q q 0 0 0 rg BT 159.71 474.25 Td (, ) Tj ET Q q 0 0 0 rg BT 164.16 474.25 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 50.00 462.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 462.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 462.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 462.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 462.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.44 462.25 Td (. ) Tj ET Q q 0 0 0 rg BT 139.26 462.25 Td (W) Tj ET Q q 0 0 0 rg BT 147.90 462.25 Td (e had another customer) Tj ET Q q 0 0 0 rg BT 240.51 462.25 Td (, Japan Steel ) Tj ET Q q 0 0 0 rg BT 293.10 462.25 Td (W) Tj ET Q q 0 0 0 rg BT 301.73 462.25 Td (orks, Ltd., who contributed more than 10% of revenue during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 450.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 450.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 430.25 Td (T) Tj ET Q q 0 0 0 rg BT 79.41 430.25 Td (o support our sales ef) Tj ET Q q 0 0 0 rg BT 164.77 430.25 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 50.00 418.25 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 50.00 406.25 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 50.00 394.25 Td (Locations include several facilities in the US, Europe and ) Tj ET Q q 0 0 0 rg BT 282.15 394.25 Td (Asia.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 374.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 374.25 Td (e maintain customer support and field service staf) Tj ET Q q 0 0 0 rg BT 281.56 374.25 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 50.00 362.25 Td (South Korea, ) Tj ET Q q 0 0 0 rg BT 105.09 362.25 Td (T) Tj ET Q q 0 0 0 rg BT 110.50 362.25 Td (aiwan and other ) Tj ET Q q 0 0 0 rg BT 176.31 362.25 Td (Asia-Pacific countries. ) Tj ET Q q 0 0 0 rg BT 269.71 362.25 Td (This or) Tj ET Q q 0 0 0 rg BT 298.13 362.25 Td (ganization works closely with customers, customer groups and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 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 50.00 338.25 Td (applications of our technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 318.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 318.25 Td (e typically provide parts and service warranties on our lasers, laser) Tj ET Q q 0 0 0 rg BT 348.73 318.25 Td (-based systems, optical and laser components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.25 Td (related accessories and services. ) Tj ET Q q 0 0 0 rg BT 181.14 306.25 Td (W) Tj ET Q q 0 0 0 rg BT 189.78 306.25 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 532.17 306.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 294.25 Td (arranty reserves, as reflected on our consolidated balance sheets, have generally been suf) Tj ET Q q 0 0 0 rg BT 413.85 294.25 Td (ficient to cover product warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (repair and replacement costs. ) Tj ET Q q 0 0 0 rg BT 168.93 282.25 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 50.00 262.25 Td (RESEARCH ) Tj ET Q q 0 0 0 rg BT 107.51 262.25 Td (AND DEVELOPMENT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 242.25 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 242.25 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 50.00 230.25 Td (serve the markets we participate in. Our development ef) Tj ET Q q 0 0 0 rg BT 273.90 230.25 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 50.00 218.25 Td (solutions that anticipate customers' changing needs and emer) Tj ET Q q 0 0 0 rg BT 293.50 218.25 Td (ging technological trends. Our ef) Tj ET Q q 0 0 0 rg BT 425.22 218.25 Td (forts are also focused on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 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 50.00 194.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 194.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.43 194.25 Td ($79.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.32 194.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 194.25 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.98 194.25 Td ( of net sales compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.17 194.25 Td ($82.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.06 194.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.89 194.25 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.72 194.25 Td ( of net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.02 194.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.02 194.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.46 194.25 Td ($78.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 182.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.72 182.25 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.55 182.25 Td ( of net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.85 182.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.85 182.25 Td (. ) Tj ET Q q 0 0 0 rg BT 233.67 182.25 Td (W) Tj ET Q q 0 0 0 rg BT 242.31 182.25 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 50.00 170.25 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 50.00 158.25 Td (research and educational institutions to develop new photonics based solutions.) 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 50 771.2669921875 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 endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream 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 the 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 operation. ) Tj ET Q q 0 0 0 rg BT 318.07 566.25 Td (This has allowed us to reduce service response time and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (inventories, providing benefits to us and to our customers.) Tj ET Q q 0 0 0 rg BT 285.06 554.25 Td (W) Tj ET Q q 0 0 0 rg BT 293.70 554.25 Td (e have also established an International Procurement Of) Tj ET Q q 0 0 0 rg BT 517.05 554.25 Td (fice in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (Singapore and have started to increase our sourcing of materials from ) Tj ET Q q 0 0 0 rg BT 330.19 542.25 Td (Asia to reduce material costs on a global basis. In fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (2012, we opened a tube refurbishment manufacturing site in South Korea to better service our customers in that region. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (fiscal 2013, we expanded our manufacturing presence in Germany through the acquisitions of Innolight and Lumera. ) 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 and Sunnyvale, California; ) Tj ET Q q 0 0 0 rg BT 415.94 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 424.98 298.25 Td (ilsonville, Oregon; East Hanover) Tj ET Q q 0 0 0 rg BT 556.21 298.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (New Jersey; Bloomfield, Connecticut; Salem, New Hampshire; Lbeck, Germany; Gttingen, Germany; Kaiserslautern, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (Germany; Hannover) Tj ET Q q 0 0 0 rg BT 131.51 274.25 Td (, Germany; Glasgow) Tj ET Q q 0 0 0 rg BT 213.90 274.25 Td (, Scotland; ) Tj ET Q q 0 0 0 rg BT 258.80 274.25 Td (Y) Tj ET Q q 0 0 0 rg BT 265.02 274.25 Td (ongIn-Si, South Korea; Kallang Sector) Tj ET Q q 0 0 0 rg BT 419.87 274.25 Td (, Singapore; and Penang, Malaysia. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (In addition, we also use contract manufacturers for the production of certain assemblies and turnkey solutions. Our ion gas ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (lasers, 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, fiber lasers and ultrafast scientific lasers are manufactured at our Santa Clara, California site. Our laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (diode module products, laser instrumentation products, test and measurement equipment products are manufactured in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 59.04 214.25 Td (ilsonville, Oregon. ) Tj ET Q q 0 0 0 rg BT 136.07 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 144.71 214.25 Td (e manufacture exotic crystals in East Hanover) Tj ET Q q 0 0 0 rg BT 328.12 214.25 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 299.20 202.25 Td ( gas lasers are manufactured in Bloomfield, Connecticut. ) Tj ET Q q 0 0 0 rg BT 528.94 202.25 Td (W) Tj ET Q q 0 0 0 rg BT 537.58 202.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (manufacture a portion of our DPSS lasers used in microelectronics and OEM components and instrumentation applications in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (Lbeck, Germany) Tj ET Q q 0 0 0 rg BT 121.54 178.25 Td (. ) Tj ET Q q 0 0 0 rg BT 126.36 178.25 Td (W) Tj ET Q q 0 0 0 rg BT 135.00 178.25 Td (e manufacture a portion of our DPSS lasers used in microelectronics, OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (instrumentation and materials processing applications in Kaiserslautern, Germany) Tj ET Q q 0 0 0 rg BT 377.04 166.25 Td (. ) Tj ET Q q 0 0 0 rg BT 381.86 166.25 Td (W) Tj ET Q q 0 0 0 rg BT 390.49 166.25 Td (e manufacture a portion of our DPSS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (lasers used in microelectronics and scientific applications in Hannover) Tj ET Q q 0 0 0 rg BT 331.73 154.25 Td (, Germany) Tj ET Q q 0 0 0 rg BT 373.29 154.25 Td (. Our excimer gas laser products are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (manufactured in Gttingen, Germany) Tj ET Q q 0 0 0 rg BT 199.30 142.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.12 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 212.76 142.25 Td (e refurbish excimer tubes at our manufacturing site in South Korea. ) Tj ET Q q 0 0 0 rg BT 484.72 142.25 Td (W) Tj ET Q q 0 0 0 rg BT 493.35 142.25 Td (e manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (the fiber) Tj ET Q q 0 0 0 rg BT 83.39 130.25 Td (-based lasers and a portion of our DPSS lasers used in microelectronics and scientific research applications in Glasgow) Tj ET Q q 0 0 0 rg BT 559.00 130.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (Scotland. Our facility in Sunnyvale, California grows the aluminum-free materials that are incorporated into our semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (lasers. ) Tj ET Q q 0 0 0 rg BT 77.59 106.25 Td (W) Tj ET Q q 0 0 0 rg BT 86.23 106.25 Td (e have transferred several products and subassemblies for manufacture at our Singapore and Malaysia facilities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (are continuing to transfer additional product manufacturing to Singapore and Malaysia as part of our ) Tj ET Q q 0 0 0 rg BT 454.05 94.25 Td (Asia strategy) Tj ET Q q 0 0 0 rg BT 505.88 94.25 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 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 endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream 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 (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.06 710.25 Td (, we held approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.20 710.25 Td (427) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.20 710.25 Td ( U.S. and foreign patents, which expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (from 2014 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 460.70 698.25 Td (147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.70 698.25 Td ( additional pending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (patent applications that have been filed. ) Tj ET Q q 0 0 0 rg BT 211.15 686.25 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 companies including CVI Melles Griot, GSI Group,Inc., IPG Photonics Corporation, JDS Uniphase Corporation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (Newport Corporation, Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 190.35 542.25 Td (T) Tj ET Q q 0 0 0 rg BT 195.76 542.25 Td (echnologies,Inc., ) Tj ET Q q 0 0 0 rg BT 268.61 542.25 Td (T) Tj ET Q q 0 0 0 rg BT 274.37 542.25 Td (rumpfGmbH, as well as other smaller companies. ) Tj ET Q q 0 0 0 rg BT 477.47 542.25 Td (W) Tj ET Q q 0 0 0 rg BT 486.11 542.25 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 (2014) 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 ($328.3 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 ($285.8 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 (2013) 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 $253.0 million and $204.7 million, 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 2014 and 2013 year) Tj ET Q q 0 0 0 rg BT 153.10 442.25 Td (-ends. Backlog for CLC was $75.3 million and $81.1 million, respectively) Tj ET Q q 0 0 0 rg BT 449.63 442.25 Td (, at fiscal 2014 and 2013 ) 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 2013 to fiscal 2014 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 orders for the flat panel display market, which explains the increase in overall company backlog as well. Orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (used to compute backlog are generally cancelable without substantial penalties. Historically) Tj ET Q q 0 0 0 rg BT 416.73 406.25 Td (, the rate of cancellation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (experienced by us has not been significant though we cannot guarantee that cancellations will not increase in the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (SEASONALITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 354.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 354.25 Td (e have historically experienced decreased bookings and revenue in the first fiscal quarter compared to other quarters in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (our fiscal year due to the impact of time of) Tj ET Q q 0 0 0 rg BT 220.59 342.25 Td (f and business closures at our facilities and those of many of our customers due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.25 Td (year) Tj ET Q q 0 0 0 rg BT 67.01 330.25 Td (-end holidays. For example over the past 10 years we have noted, excluding certain recovery years, our first fiscal quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.25 Td (revenues have ranged 2%-12% below the fourth quarter of the prior fiscal years. ) Tj ET Q q 0 0 0 rg BT 373.58 318.25 Td (This historical pattern should not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.25 Td (considered a 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 50.00 286.25 Td (EMPLOYEES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 266.25 Td (As of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.60 266.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.60 266.25 Td (year) Tj ET Q q 0 0 0 rg BT 162.11 266.25 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.97 266.25 Td (2,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.47 266.25 Td ( employees. ) Tj ET Q q 0 0 0 rg BT 288.18 266.25 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.23 266.25 Td (399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.23 266.25 Td ( of our employees are involved in research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (development; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.93 254.25 Td (1,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.43 254.25 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 515.41 254.25 Td (594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.41 254.25 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (employees are involved in sales, order administration, marketing, finance, information technology) Tj ET Q q 0 0 0 rg BT 442.01 242.25 Td (, general management and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (other administrative functions. Our success will depend in lar) Tj ET Q q 0 0 0 rg BT 295.59 230.25 Td (ge part upon our ability to attract and retain employees. ) Tj ET Q q 0 0 0 rg BT 519.50 230.25 Td (W) Tj ET Q q 0 0 0 rg BT 528.14 230.25 Td (e face ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 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 50.00 206.25 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 206.25 Td (ganizations. ) Tj ET Q q 0 0 0 rg BT 108.51 206.25 Td (W) Tj ET Q q 0 0 0 rg BT 117.15 206.25 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 50.00 186.25 Td (ACQUISITIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 166.25 Td (In December 2012, we acquired privately held Lumera Laser GmbH \(Kaiserslautern, Germany\) \("Lumera"\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 154.25 Td ($51.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 154.25 Td (, excluding transaction costs. Lumera manufactures ultrafast solid state lasers for microelectronics, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (OEM medical and materials processing applications. Lumera has been included in our Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 118.25 Td (In October 2012, we acquired all of the outstanding shares of Innolight Innovative Laser and Systemtechnik GmbH ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (\("Innolight"\) for approximately $18.3 million, excluding transaction costs. Innolight provides a core technology building block ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (for an emer) Tj ET Q q 0 0 0 rg BT 95.90 94.25 Td (ging class of commercial, sub-nanosecond lasers for microelectronics manufacturing. Its semiconductor) Tj ET Q q 0 0 0 rg BT 511.12 94.25 Td (-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (architecture delivers pulsed output that can be amplified by conventional or fiber amplifiers to ultimately deliver infrared, green ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (or ultraviolet light capable of processing a range of materials. Innolight has 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 58.25 Td (segment.) 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 50 771.2669921875 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 endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream 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 1 1 1 rg /GS0 gs 77.00 749.03 470.18 -9.09 re f /GS0 gs q 0 0 0 rg BT 77.00 742.10 Td (In July 2012, we acquired all of the outstanding shares of MiDAZ Lasers Ltd for approximately $3.8 million in cash. ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 50.00 737.03 194.52 -9.09 re f /GS0 gs q 0 0 0 rg BT 50.00 730.10 Td (MiDAZ was a technology-based acquisition. ) Tj ET Q q 0 0 0 rg BT 231.45 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 240.08 730.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.52 730.10 Td ( intend to utilize th) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 320.06 737.03 226.61 -9.09 re f /GS0 gs q 0 0 0 rg BT 320.06 730.10 Td (e acquired technology in low cost, compact pulsed solid ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 50.00 725.03 80.82 -9.09 re f /GS0 gs q 0 0 0 rg BT 50.00 718.10 Td (state lasers. MiDAZ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.82 718.10 Td ( has been included in our Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 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 50.00 686.10 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 50.00 666.10 Td (GOVERNMENT) Tj ET Q q 0 0 0 rg BT 123.71 666.10 Td ( REGULA) Tj ET Q q 0 0 0 rg BT 168.25 666.10 Td (TION) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Environmental regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 626.10 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 50.00 614.10 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 50.00 602.10 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 459.59 602.10 Td (Agency) Tj ET Q q 0 0 0 rg BT 490.04 602.10 Td (. Comparable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 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 50.00 578.10 Td (changes closely) Tj ET Q q 0 0 0 rg BT 112.38 578.10 Td (. ) Tj ET Q q 0 0 0 rg BT 117.20 578.10 Td (W) Tj ET Q q 0 0 0 rg BT 125.84 578.10 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 50.00 566.10 Td (compliance with those regulations will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 326.94 566.10 Td (fect on our capital expenditures, earnings and competitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (and financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 534.10 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 50.00 522.10 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 50.00 510.10 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 50.00 498.10 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 72.50 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 478.10 Td (e may face potentially increasing complexity in our product designs and procurement operations due to the evolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (nature of product compliance standards. ) Tj ET Q q 0 0 0 rg BT 212.54 466.10 Td (Those standards may impact the material composition of our products entering specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (markets. Such regulations went into ef) Tj ET Q q 0 0 0 rg BT 203.67 454.10 Td (fect in the European Union \("EU"\) in 2006, and China in 2007. ) Tj ET Q q 0 0 0 rg BT 458.82 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 467.46 454.10 Td (e could face significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (costs and liabilities in connection with product take-back legislation. Beginning in 2006, the EU ) Tj ET Q q 0 0 0 rg BT 436.96 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 445.60 442.10 Td (aste Electrical and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Electronic Equipment Directive made producers of electrical goods financially responsible for specified collection, recycling, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (treatment and disposal of past and future covered products. In addition, the EU has added the Registration, Evaluation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (Authorization of Chemicals Regulation, otherwise known as the REACH Regulation, which further regulates substances and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (products imported, manufactured or sold within the EU. Similar laws are now pending in various jurisdictions around the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (world, including the United States.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (Environmental liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 334.10 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 504.15 334.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (pollutants and the management and disposal of hazardous substances. ) Tj ET Q q 0 0 0 rg BT 330.49 322.10 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 50.00 310.10 Td (we could incur substantial costs, including remediation costs. ) Tj ET Q q 0 0 0 rg BT 297.55 310.10 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 50.00 298.10 Td (are dif) Tj ET Q q 0 0 0 rg BT 75.63 298.10 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 50.00 286.10 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 382.79 286.10 Td (, the complexity of the site, site geology) Tj ET Q q 0 0 0 rg BT 542.39 286.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (nature and extent of contamination, the type of remedy) Tj ET Q q 0 0 0 rg BT 268.99 274.10 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 50.00 262.10 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 74.00 242.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 242.10 Td (e further discuss the impact of environmental regulation under "Risk Factors" in Item 1A) Tj ET Q q 0 0 0 rg BT 438.22 242.10 Td ( "Compliance or the failure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 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 50.00 210.10 Td (SEGMENT) Tj ET Q q 0 0 0 rg BT 99.83 210.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 150.47 210.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 190.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 190.10 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 50.00 178.10 Td (Components \("CLC"\). ) Tj ET Q q 0 0 0 rg BT 142.15 178.10 Td (This segmentation reflects the go-to-market strategies for various products and markets. SLS develops ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (and manufacturers configurable, advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 323.57 166.10 Td (gely serving the microelectronics, scientific research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (government programs and OEM components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 351.70 154.10 Td (The size and complexity of many of the SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (products require service to be performed at the customer site by factory-trained field service engineers. ) Tj ET Q q 0 0 0 rg BT 464.09 142.10 Td (While both segments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (work to deliver cost-ef) Tj ET Q q 0 0 0 rg BT 140.62 130.10 Td (fective photonics solutions, CLC focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 457.60 130.10 Td (fered in set ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (configurations. ) Tj ET Q q 0 0 0 rg BT 112.58 118.10 Td (The product architectures are designed for easy exchange at the point of use such that product service and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (repairs are based upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 352.91 106.10 Td (. CLC's primary markets include materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 74.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 74.10 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 62.10 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 62.10 Td (A) Tj ET Q q 0 0 0 rg BT 542.08 62.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 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 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 endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream 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 (been determined. ) Tj ET Q q 0 0 0 rg BT 121.18 742.10 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 488.40 742.10 Td (, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (corporate costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 106.12 710.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 156.76 710.10 Td (TION ) Tj ET Q q 0 0 0 rg BT 184.27 710.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 219.65 710.10 Td ( FOREIGN ) Tj ET Q q 0 0 0 rg BT 270.77 710.10 Td (AND DOMESTIC OPERA) Tj ET Q q 0 0 0 rg BT 386.14 710.10 Td (TIONS ) Tj ET Q q 0 0 0 rg BT 419.21 710.10 Td (AND EXPOR) Tj ET Q q 0 0 0 rg BT 478.03 710.10 Td (T) Tj ET Q q 0 0 0 rg BT 484.52 710.10 Td ( SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 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 399.73 690.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.73 690.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.73 690.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.73 690.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.17 690.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.17 690.10 Td (, is set forth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 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 50.00 666.10 Td (annual report.) 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 50 771.2669921875 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 endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (Y) Tj ET Q q 0 0 0 rg BT 54.14 718.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 108.77 718.25 Td (efully consider the followings risks when considering an investment in our Common Stock. These risks could ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (materially affect our business, r) Tj ET Q q 0 0 0 rg BT 176.62 706.25 Td (esults of operations or financial condition, cause the trading price of our Common Stock to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (decline materially or cause our actual r) Tj ET Q q 0 0 0 rg BT 208.54 694.25 Td (esults to differ materially fr) Tj ET Q q 0 0 0 rg BT 318.17 694.25 Td (om those expected or those expr) Tj ET Q q 0 0 0 rg BT 446.37 694.25 Td (essed in any forwar) Tj ET Q q 0 0 0 rg BT 524.60 694.25 Td (d-) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (looking statements made by us. These risks ar) Tj ET Q q 0 0 0 rg BT 234.94 682.25 Td (e not exclusive, and additional risks to which we ar) Tj ET Q q 0 0 0 rg BT 440.10 682.25 Td (e subject include, but ar) Tj ET Q q 0 0 0 rg BT 536.10 682.25 Td (e not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (limited to, the factors mentioned under Forwar) Tj ET Q q 0 0 0 rg BT 243.28 670.25 Td (d-Looking Statements and the risk of our businesses described elsewher) Tj ET Q q 0 0 0 rg BT 535.94 670.25 Td (e in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (this annual r) Tj ET Q q 0 0 0 rg BT 100.25 658.25 Td (eport. ) Tj ET Q q 0 0 0 rg BT 126.17 658.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 175.06 658.25 Td (, these risks and uncertainties described her) Tj ET Q q 0 0 0 rg BT 351.05 658.25 Td (ein ar) Tj ET Q q 0 0 0 rg BT 374.29 658.25 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 49.50 646.25 Td (that we do not curr) Tj ET Q q 0 0 0 rg BT 125.79 646.25 Td (ently anticipate or that we curr) Tj ET Q q 0 0 0 rg BT 250.13 646.25 Td (ently deem immaterial also may affect our business, r) Tj ET Q q 0 0 0 rg BT 463.89 646.25 Td (esults of operations or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 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 49.5 608.68505859375 m 297.9130859375 608.68505859375 l s q 0 0 0 rg BT 49.50 610.25 Td (BUSINESS ENVIRONMENT) Tj ET Q q 0 0 0 rg BT 177.41 610.25 Td ( ) Tj ET Q q 0 0 0 rg BT 179.35 610.25 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 248.18 610.25 Td (Y) Tj ET Q q 0 0 0 rg BT 255.03 610.25 Td ( ) Tj ET Q q 0 0 0 rg BT 257.35 610.25 Td (TRENDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 586.25 Td ( operating r) Tj ET Q q 0 0 0 rg BT 117.46 586.25 Td (esults, including net sales, net income \(loss\) and adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 398.89 586.25 Td ( in dollars and as a per) Tj ET Q q 0 0 0 rg BT 495.96 586.25 Td (centage of net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (sales, as well as our) Tj ET Q q 0 0 0 rg BT 131.82 574.25 Td ( stock price have varied in the past, and our) Tj ET Q q 0 0 0 rg BT 318.31 574.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 342.85 574.25 Td (e operating r) Tj ET Q q 0 0 0 rg BT 397.65 574.25 Td (esults will continue to be subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (quarterly and annual fluctuations based upon numer) Tj ET Q q 0 0 0 rg BT 275.48 562.25 Td (ous factors, including those discussed in this Item 1A) Tj ET Q q 0 0 0 rg BT 499.68 562.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (thr) Tj ET Q q 0 0 0 rg BT 62.65 550.25 Td (oughout this r) Tj ET Q q 0 0 0 rg BT 122.48 550.25 Td (eport. Our) Tj ET Q q 0 0 0 rg BT 167.85 550.25 Td ( stock price will continue to be subject to daily variations as well. Our) Tj ET Q q 0 0 0 rg BT 463.77 550.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 488.31 550.25 Td (e operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.76 538.25 Td (esults and stock price may not follow any past tr) Tj ET Q q 0 0 0 rg BT 259.41 538.25 Td (ends or) Tj ET Q q 0 0 0 rg BT 290.62 538.25 Td ( meet our) Tj ET Q q 0 0 0 rg BT 330.98 538.25 Td ( guidance and expectations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.25 Td (Our net sales and operating results, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 318.61 514.25 Td ( percentage, net income \(loss\) and operating expenses, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 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 49.50 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 490.25 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 536.96 490.25 Td (ficult ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (to predict, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 466.25 Td () 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 (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 85.50 442.25 Td (we serve;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.25 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 67.50 406.25 Td () 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 (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 85.50 382.25 Td (limited source components, in a timely manner) Tj ET Q q 0 0 0 rg BT 273.11 382.25 Td (, in the quantity) Tj ET Q q 0 0 0 rg BT 335.23 382.25 Td (, quality and prices desired;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 358.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.25 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 67.50 334.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.25 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 67.50 322.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.25 Td (cancellation of customer orders and rescheduling of shipments;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.25 Td (fluctuations in our product mix;) 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 67.50 262.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 262.25 Td (the ability of our customers' other suppliers to provide suf) Tj ET Q q 0 0 0 rg BT 316.80 262.25 Td (ficient material to support our customers' products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 238.25 Td (currency fluctuations and stability) Tj ET Q q 0 0 0 rg BT 221.20 238.25 Td (, in particular the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 368.83 238.25 Td (Y) Tj ET Q q 0 0 0 rg BT 375.05 238.25 Td (en, the Korean ) Tj ET Q q 0 0 0 rg BT 435.95 238.25 Td (W) Tj ET Q q 0 0 0 rg BT 444.59 238.25 Td (on, the Chinese Renminbi ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.25 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 67.50 214.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.25 Td (commodity pricing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 178.25 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 85.50 166.25 Td (markets, pricing pressures and other competitive factors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.25 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 85.50 130.25 Td (defects;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 106.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.25 Td (our ability to manage our capacity and that of our suppliers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.25 Td () 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 (our increased reliance on contract manufacturing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 58.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 58.25 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 46.25 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 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 endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) 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 (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 67.50 730.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 718.10 Td (expenses associated with acquisition-related activities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 694.10 Td (seasonal sales trends;) 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 (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 67.50 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 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 85.50 634.10 Td (products by us or our competitors;) 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 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (our ability to control expenses;) 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 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td (the level of capital spending of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td () 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 (potential excess and/or obsolescence of our inventory;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.10 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 85.50 526.10 Td (and business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 Td () 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 (costs related to acquisitions of technology or businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 478.10 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 67.50 466.10 Td () 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 (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 67.50 442.10 Td () 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 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 85.50 418.10 Td (universities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 406.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 394.10 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 67.50 382.10 Td () 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 (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 67.50 358.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 346.10 Td (changes in policy) Tj ET Q q 0 0 0 rg BT 154.83 346.10 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 85.50 334.10 Td (standards;) 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 (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 67.50 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 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 67.50 262.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 262.10 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 85.50 250.10 Td (laws;) 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 (impact of government economic policies on macroeconomic conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.10 Td (costs and expenses from litigation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 178.10 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 85.50 166.10 Td (business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 Td (government support of the alternative ener) Tj ET Q q 0 0 0 rg BT 255.53 142.10 Td (gy industries, such as solar;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 130.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 118.10 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 85.50 106.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.10 Td () 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 (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 58.10 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 46.10 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 46.10 Td (, the adverse ) 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 50 771.2669921875 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 endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (compensate for the shortfall. ) Tj ET Q q 0 0 0 rg BT 166.22 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 174.86 730.10 Td (e also base our manufacturing on our forecasted product mix for the quarter) Tj ET Q q 0 0 0 rg BT 476.98 730.10 Td (. If the actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 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 483.69 718.10 Td (, which would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (result in delays in the shipment of our products. ) Tj ET Q q 0 0 0 rg BT 242.25 706.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 291.58 706.10 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 49.50 694.10 Td (higher mar) Tj ET Q q 0 0 0 rg BT 92.91 694.10 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 72.50 682.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 670.10 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 406.13 670.10 Td (-to-quarter and year) Tj ET Q q 0 0 0 rg BT 485.33 670.10 Td (-to-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (comparisons of our historical operating results may not be meaningful. ) Tj ET Q q 0 0 0 rg BT 334.90 658.10 Td (Y) Tj ET Q q 0 0 0 rg BT 341.12 658.10 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 49.50 646.10 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 49.50 634.10 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 49.50 622.10 Td (years, the stock market has experienced extreme price and volume fluctuations that have af) Tj ET Q q 0 0 0 rg BT 413.61 622.10 Td (fected the stock prices of many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (technology companies both in and outside our industry) Tj ET Q q 0 0 0 rg BT 268.54 610.10 Td (. ) Tj ET Q q 0 0 0 rg BT 273.36 610.10 Td (There has not always been a direct correlation between this volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (and the performance of particular companies subject to these stock price fluctuations. Further) Tj ET Q q 0 0 0 rg BT 422.58 598.10 Td (, over the last twelve months, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (equity markets around the world have significantly fluctuated across most sectors. ) Tj ET Q q 0 0 0 rg BT 380.34 586.10 Td (These factors, as well as general economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (and political conditions or investors' concerns regarding the credibility of corporate financial statements, may have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 562.10 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 49.50 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 538.10 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 49.50 526.10 Td (materials, including exotic materials, certain cutting-edge optics and crystals, in our products, which make us susceptible to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 299.88 514.10 Td (fect our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 490.10 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 49.50 478.10 Td (limited source suppliers, both internal and external. Our failure to timely receive these key components and materials, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (the lar) Tj ET Q q 0 0 0 rg BT 74.58 466.10 Td (ge optics used in our flat panel display manufacturing applications, could cause delays in the shipment of our products. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (Some of these suppliers are relatively small private companies that may discontinue their operations at any time and which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (be particularly susceptible to prevailing economic conditions. Some of our suppliers are located in regions which may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (susceptible to natural disasters, such as the flooding in ) Tj ET Q q 0 0 0 rg BT 269.28 430.10 Td (Thailand and the earthquake, tsunami and resulting nuclear disaster in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (Japan and severe flooding and power loss in the Eastern part of the United States in recent years. ) Tj ET Q q 0 0 0 rg BT 438.92 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 447.56 418.10 Td (e typically purchase our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (components and materials through purchase orders or agreed upon terms and conditions and we do not have guaranteed supply ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (arrangements with many of these suppliers. Some of our products, particularly in the flat panel display industry) Tj ET Q q 0 0 0 rg BT 494.30 394.10 Td (, require designs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (and specifications which are at the cutting-edge of available technologies. Our and our customers' designs and specifications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (frequently change to meet rapidly evolving market demands. ) Tj ET Q q 0 0 0 rg BT 294.70 370.10 Td (Accordingly certain of our products require components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (supplies which may be technologically dif) Tj ET Q q 0 0 0 rg BT 218.45 358.10 Td (ficult and unpredictable to manufacture. ) Tj ET Q q 0 0 0 rg BT 380.97 358.10 Td (These characteristics further pressure the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (timely delivery of such components. ) Tj ET Q q 0 0 0 rg BT 197.62 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 206.26 346.10 Td (e may fail to obtain these supplies in a timely manner in the future. ) Tj ET Q q 0 0 0 rg BT 476.28 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 484.92 346.10 Td (e may experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 334.10 Td (ficulty identifying alternative sources of supply for certain components used in our products and may have to incur expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (and management distraction in assisting our current and future suppliers to meet our and our customers' technical requirements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 310.10 Td (e would experience further delays while identifying, evaluating and testing the products of these potential alternative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (suppliers. Furthermore, financial or other dif) Tj ET Q q 0 0 0 rg BT 227.88 298.10 Td (ficulties faced by these suppliers or significant changes in demand for these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (components or materials could limit their availability) Tj ET Q q 0 0 0 rg BT 261.58 286.10 Td (. ) Tj ET Q q 0 0 0 rg BT 266.39 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 275.03 286.10 Td (e continue to consolidate our supply base and move supplier locations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (When we transition locations we may increase our inventory of such products as a safety stock during the transition, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (may cause the amount of inventory reflected on our balance sheet to increase. ) Tj ET Q q 0 0 0 rg BT 362.15 262.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 412.05 262.10 Td (, many of our customers rely on sole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (source suppliers. In the event of a disruption of our customers' supply chain, orders from our customers could decrease or be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (delayed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 214.10 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 49.50 202.10 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 49.50 190.10 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 49.50 178.10 Td (customers to cancel orders. ) Tj ET Q q 0 0 0 rg BT 160.67 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 169.30 178.10 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 49.50 166.10 Td (strategic components, crystals, semiconductor lasers, lasers and laser) Tj ET Q q 0 0 0 rg BT 324.77 166.10 Td (-based systems. Because we manufacture, package and test ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (these components, products and systems at our own facilities, and such components, products and systems are not readily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (available from other sources, any interruption in manufacturing would adversely af) Tj ET Q q 0 0 0 rg BT 381.71 142.10 Td (fect our business. In addition, our failure to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (achieve adequate manufacturing yields of these items at our manufacturing facilities may materially and adversely af) Tj ET Q q 0 0 0 rg BT 517.19 130.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (operating results and financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 94.10 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 82.10 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 70.10 Td (our business and results of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 58.10 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 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 endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream 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 72.00 742.10 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 49.50 730.10 Td (of product supply and demand, changing customer requirements and evolving industry standards. ) Tj ET Q q 0 0 0 rg BT 441.45 730.10 Td (The nature of this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 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 49.50 706.10 Td (material sales of our products to our customers in this market. ) Tj ET Q q 0 0 0 rg BT 298.89 706.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 348.79 706.10 Td (, our product of) Tj ET Q q 0 0 0 rg BT 410.82 706.10 Td (ferings may become obsolete given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 49.50 682.10 Td (acceptance, or the microelectronics market fails to grow) Tj ET Q q 0 0 0 rg BT 273.19 682.10 Td (, it would likely have a significant negative ef) Tj ET Q q 0 0 0 rg BT 456.01 682.10 Td (fect on our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 646.10 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 49.50 634.10 Td (backlog, timing of net sales and results of operations could be negatively impacted in the event our customers reschedule ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 598.10 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 49.50 586.10 Td (annealing products.In each of our last three fiscal years, ) Tj ET Q q 0 0 0 rg BT 277.19 586.10 Td (Advanced Process Systems Corporation, an integrator in the flat panel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (display market, has contributed more than 10% of our revenue. Given macroeconomic conditions, varying consumer demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (and technical process limitations at manufacturers, our customers may seek to reschedule or cancel orders. Challenges in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (meeting evolving technological requirements for these complex products by us and our suppliers could also result in delays in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (shipments, rescheduled or canceled orders by our customers. ) Tj ET Q q 0 0 0 rg BT 294.80 538.10 Td (This could negatively impact our backlog, timing of net sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (results of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 502.10 Td (As of September 27, 2014, flat panel display systems represented 41% of our backlog. Given our backlog includes these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (higher average selling price flat panel display systems, any delays or cancellation of shipments could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 478.10 Td (fect on our financial results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 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 72.00 430.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 418.10 Td (Lasers and laser systems are inherently complex in design and require ongoing regular maintenance. ) Tj ET Q q 0 0 0 rg BT 475.85 418.10 Td (The manufacture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (our lasers, laser products and systems involves a highly complex and precise process. ) Tj ET Q q 0 0 0 rg BT 393.03 406.10 Td (As a result of the technological ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 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 49.50 382.10 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 499.99 382.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (ability to achieve acceptable manufacturing yields and product reliability) Tj ET Q q 0 0 0 rg BT 340.96 370.10 Td (. ) Tj ET Q q 0 0 0 rg BT 345.78 370.10 Td (T) Tj ET Q q 0 0 0 rg BT 351.19 370.10 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 49.50 358.10 Td (projected yields or product reliability) Tj ET Q q 0 0 0 rg BT 197.69 358.10 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 49.50 346.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 346.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 127.15 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 135.78 346.10 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 49.50 334.10 Td (recorded during the period of sale. ) Tj ET Q q 0 0 0 rg BT 189.54 334.10 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 49.50 322.10 Td (expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 300.13 322.10 Td (. ) Tj ET Q q 0 0 0 rg BT 304.95 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 313.59 322.10 Td (e typically establish warranty reserves based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 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 436.93 310.10 Td (fer significantly from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 465.30 298.10 Td (fect on our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.10 Td (Our customers may discover defects in our products after the products have been fully deployed and operated under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (end user's peak stress conditions. In addition, some of our products are combined with products from other vendors, which may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (contain defects. ) Tj ET Q q 0 0 0 rg BT 114.20 238.10 Td (As a result, should problems occur) Tj ET Q q 0 0 0 rg BT 252.66 238.10 Td (, it may be dif) Tj ET Q q 0 0 0 rg BT 308.30 238.10 Td (ficult to identify the source of the problem. If we are unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (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 85.50 214.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.10 Td (loss of customers or orders;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 178.10 Td (increased costs of product returns and warranty expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.10 Td (damage to our brand reputation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 130.10 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 67.50 118.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 Td (diversion of development and engineering resources; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.10 Td () 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 (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 49.50 70.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 58.10 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 46.10 Td (results of operations.) 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 50 771.2669921875 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 endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream 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 49.50 730.10 Td (Continued volatility in the semiconductor manufacturing and advanced packaging markets could adversely af) Tj ET Q q 0 0 0 rg BT 501.55 730.10 Td (fect our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 706.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 694.10 Td ( portion of our net sales in the microelectronics market depends on the demand for our products by semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (equipment and advanced packaging applications companies. ) Tj ET Q q 0 0 0 rg BT 293.40 682.10 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 49.50 670.10 Td (severe cyclical variations in product supply and demand, which have often severely af) Tj ET Q q 0 0 0 rg BT 393.91 670.10 Td (fected the demand for semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (manufacturing equipment, including laser) Tj ET Q q 0 0 0 rg BT 216.47 658.10 Td (-based tools and systems. ) Tj ET Q q 0 0 0 rg BT 320.45 658.10 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 49.50 646.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 646.10 Td (ficult to predict, and we may not be able to respond ef) Tj ET Q q 0 0 0 rg BT 276.29 646.10 Td (fectively to these cycles. ) Tj ET Q q 0 0 0 rg BT 376.90 646.10 Td (The continuing uncertainty in these markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (severely limits our ability to predict our business prospects or financial results in these markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 610.10 Td (During industry downturns, our net sales from these markets may decline suddenly and significantly) Tj ET Q q 0 0 0 rg BT 472.93 610.10 Td (. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (rapidly and ef) Tj ET Q q 0 0 0 rg BT 104.85 598.10 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 49.50 586.10 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 49.50 574.10 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 49.50 562.10 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 49.50 550.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 550.10 Td (, downturns in the semiconductor capital equipment market may materially harm our operating results. Conversely) Tj ET Q q 0 0 0 rg BT 556.95 550.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (when upturns in these markets occur) Tj ET Q q 0 0 0 rg BT 195.45 538.10 Td (, we must be able to rapidly and ef) Tj ET Q q 0 0 0 rg BT 333.28 538.10 Td (fectively increase our manufacturing capacity to meet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 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 49.50 514.10 Td (our relationships with our customers may be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 490.10 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 49.50 478.10 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 49.50 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 454.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 454.10 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 49.50 442.10 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 49.50 430.10 Td (products. In particular) Tj ET Q q 0 0 0 rg BT 137.68 430.10 Td (, it is dif) Tj ET Q q 0 0 0 rg BT 170.83 430.10 Td (ficult to develop and implement strategy) Tj ET Q q 0 0 0 rg BT 332.08 430.10 Td (, sustainable business models and ef) Tj ET Q q 0 0 0 rg BT 476.32 430.10 Td (ficient operations, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (well as ef) Tj ET Q q 0 0 0 rg BT 87.63 418.10 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 49.50 406.10 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 425.45 406.10 Td (. Our ability to maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (research and development investments in our broad product of) Tj ET Q q 0 0 0 rg BT 299.24 394.10 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 49.50 382.10 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 49.50 370.10 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 49.50 358.10 Td (operating results. ) Tj ET Q q 0 0 0 rg BT 120.69 358.10 Td (The current global economic conditions remain uncertain and challenging. ) Tj ET Q q 0 0 0 rg BT 420.96 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.60 358.10 Td (eakness in our end markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (could negatively impact our net sales, gross mar) Tj ET Q q 0 0 0 rg BT 242.04 346.10 Td (gin and operating expenses, and consequently have a material adverse ef) Tj ET Q q 0 0 0 rg BT 532.02 346.10 Td (fect on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (our business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 310.10 Td (Recent uncertainty in global fiscal policy has likely had an adverse impact on global financial markets and overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (economic activity) Tj ET Q q 0 0 0 rg BT 120.21 298.10 Td (.Should this uncertain financial policy recur) Tj ET Q q 0 0 0 rg BT 297.82 298.10 Td (, it would likely negatively impact global economic activity) Tj ET Q q 0 0 0 rg BT 535.72 298.10 Td (. ) Tj ET Q q 0 0 0 rg BT 540.16 298.10 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (weakness in global economies would also likely have negative repercussions on U.S. and global credit and financial markets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (and further exacerbate sovereign debt concerns in the European Union.) Tj ET Q q 0 0 0 rg BT 335.77 274.10 Td (All of these factors would likely adversely impact the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (global demand for our products and the performance of our investments, and would likely have a material adverse ef) Tj ET Q q 0 0 0 rg BT 516.10 262.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 226.10 Td (The financial turmoil which recently af) Tj ET Q q 0 0 0 rg BT 229.20 226.10 Td (fected the banking system and financial markets continues to negatively impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (financial institutions and has resulted in tighter credit markets, and lower levels of liquidity in some financial markets. ) Tj ET Q q 0 0 0 rg BT 524.75 214.10 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (could be a number of follow-on ef) Tj ET Q q 0 0 0 rg BT 186.50 202.10 Td (fects from the tightened credit environment on our business, including the insolvency of key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (suppliers or their inability to obtain credit to finance development and/or manufacture products resulting in product delays; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (inability of customers to obtain credit to finance purchases of our products and/or customer insolvencies; and failure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (financial institutions negatively impacting our treasury functions. In the event our customers are unable to obtain credit or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (otherwise pay for our shipped products it could significantly impact our ability to collect on our outstanding accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (receivable. Other income and expense also could vary materially from expectations depending on gains or losses realized on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (sale or exchange of financial instruments; impairment char) Tj ET Q q 0 0 0 rg BT 284.51 130.10 Td (ges resulting from revaluations of debt and equity securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (other investments; interest rates; cash balances; and changes in fair value of derivative instruments. ) Tj ET Q q 0 0 0 rg BT 448.91 118.10 Td (V) Tj ET Q q 0 0 0 rg BT 454.84 118.10 Td (olatility in the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (markets and any overall economic uncertainty increase the risk that the actual amounts realized in the future on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (instruments could dif) Tj ET Q q 0 0 0 rg BT 134.31 94.10 Td (fer significantly from the fair values currently assigned to them. Uncertainty about current global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (economic conditions could also continue to increase the volatility of our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 70.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 58.10 Td (In addition, political and social turmoil related to international conflicts, terrorist acts and civil unrest may put further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (pressure on economic conditions in the United States and abroad. Unstable economic, political and social conditions make it ) 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 50 771.2669921875 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 endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream 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 49.50 742.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 742.10 Td (ficult for our customers, our suppliers and us to accurately forecast and plan future business activities. If such conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (persist, our business, financial condition and results of operations could suf) Tj ET Q q 0 0 0 rg BT 350.37 730.10 Td (fer) Tj ET Q q 0 0 0 rg BT 360.92 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 365.37 730.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 415.27 730.10 Td (, unstable economic conditions can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (provide significant pressures and burdens on individuals, which could cause them to engage in inappropriate business conduct. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (See PartII,Item9A. CONTROLS ) Tj ET Q q 0 0 0 rg BT 193.92 706.10 Td (AND PROCEDURES.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 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 49.50 658.10 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 49.50 646.10 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 49.50 634.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 622.10 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 49.50 610.10 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 49.50 598.10 Td (solvency of some financial institutions. ) Tj ET Q q 0 0 0 rg BT 208.74 598.10 Td (These financial institutions, including banks, have had dif) Tj ET Q q 0 0 0 rg BT 439.90 598.10 Td (ficulty timely performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (regular services and in some cases have failed or otherwise been lar) Tj ET Q q 0 0 0 rg BT 320.04 586.10 Td (gely taken over by governments. ) Tj ET Q q 0 0 0 rg BT 453.15 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.79 586.10 Td (e maintain our cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 49.50 562.10 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 49.50 550.10 Td (ability to timely access our cash deposited with such institutions, or) Tj ET Q q 0 0 0 rg BT 319.33 550.10 Td (, in extreme circumstances the failure of such institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 49.50 526.10 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 49.50 514.10 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 49.50 502.10 Td (impact on our operations, including our reported net income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 490.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 478.10 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 49.50 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 454.10 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 49.50 442.10 Td (declines in their market values could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 303.09 442.10 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 49.50 430.10 Td (global nature of our business, we have investments both domestically and internationally) Tj ET Q q 0 0 0 rg BT 404.32 430.10 Td (. ) Tj ET Q q 0 0 0 rg BT 409.14 430.10 Td (There has recently been growing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 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 49.50 406.10 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 49.50 394.10 Td (issued by such nations. ) Tj ET Q q 0 0 0 rg BT 143.67 394.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 193.57 394.10 Td (, our overall investment portfolio is often concentrated in certificates of deposit and money ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (market funds. ) Tj ET Q q 0 0 0 rg BT 106.80 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 115.44 382.10 Td (e maintain a mix of government-issued securities. Credit ratings and pricing of these investments can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (negatively impacted by liquidity) Tj ET Q q 0 0 0 rg BT 178.54 370.10 Td (, credit deterioration or losses, financial results, or other factors. ) Tj ET Q q 0 0 0 rg BT 436.24 370.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 486.14 370.10 Td (, liquidity issues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (or political actions by sovereign nations could result in decreased values for our investments in certain government securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (As a result, the value or liquidity of our cash, cash equivalents and short-term investments could decline or become materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (impaired, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 245.90 334.10 Td (fect on our financial condition and operating results. See Item7A. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Quantitative and Qualitative Disclosures about Market Risk.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 460.72 298.10 Td (fset potential declines in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 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 49.50 274.10 Td (our operating results may suf) Tj ET Q q 0 0 0 rg BT 170.45 274.10 Td (fer) Tj ET Q q 0 0 0 rg BT 181.56 274.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 250.10 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 49.50 238.10 Td (laser systems and related accessories, as well as our ability to identify) Tj ET Q q 0 0 0 rg BT 327.65 238.10 Td (, in advance, emer) Tj ET Q q 0 0 0 rg BT 400.49 238.10 Td (ging markets for laser) Tj ET Q q 0 0 0 rg BT 487.76 238.10 Td (-based systems. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 226.10 Td (e cannot assure you that we will be able to successfully identify) Tj ET Q q 0 0 0 rg BT 312.14 226.10 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 49.50 214.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 214.10 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 49.50 202.10 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 49.50 190.10 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 49.50 178.10 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 49.50 166.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 154.10 Td (e have in the past experienced decreases in the ) Tj ET Q q 0 0 0 rg BT 268.61 154.10 Td (ASPs of some of our products. ) Tj ET Q q 0 0 0 rg BT 393.33 154.10 Td (As competing products become more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (widely available, the ) Tj ET Q q 0 0 0 rg BT 134.47 142.10 Td (ASPs of our products may decrease. If we are unable to of) Tj ET Q q 0 0 0 rg BT 367.55 142.10 Td (fset any decrease in our ) Tj ET Q q 0 0 0 rg BT 463.89 142.10 Td (ASPs by increasing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (sales volumes, our net sales will decline. In addition, to maintain our gross mar) Tj ET Q q 0 0 0 rg BT 365.92 130.10 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 49.50 118.10 Td (manufacturing our products while maintaining their high quality) Tj ET Q q 0 0 0 rg BT 306.29 118.10 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 49.50 106.10 Td (technological products, may fail in greater frequency than anticipated. ) Tj ET Q q 0 0 0 rg BT 332.26 106.10 Td (This can lead to further char) Tj ET Q q 0 0 0 rg BT 445.08 106.10 Td (ges, which can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (higher costs, lower gross mar) Tj ET Q q 0 0 0 rg BT 166.79 94.10 Td (gins and lower operating results. Furthermore, as ) Tj ET Q q 0 0 0 rg BT 364.81 94.10 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 82.10 Td (develop and introduce new products and product enhancements with higher mar) Tj ET Q q 0 0 0 rg BT 369.77 82.10 Td (gins. If we cannot maintain our gross mar) Tj ET Q q 0 0 0 rg BT 536.22 82.10 Td (gins, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (our operating results could be seriously harmed, particularly if the ) Tj ET Q q 0 0 0 rg BT 315.81 70.10 Td (ASPs of our products decrease significantly) Tj ET Q q 0 0 0 rg BT 490.40 70.10 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 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 endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (24) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 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 49.50 730.25 Td (needs of our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 706.25 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 49.50 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 694.25 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 49.50 682.25 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 49.50 670.25 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 49.50 658.25 Td (size and have lower ) Tj ET Q q 0 0 0 rg BT 130.58 658.25 Td (ASPs, and therefore, we have to sell more units to maintain revenue levels. ) Tj ET Q q 0 0 0 rg BT 432.72 658.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.06 658.25 Td (, we must continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 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 49.50 634.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 622.25 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 49.50 610.25 Td (needs. Introduction of new products and product enhancements will require that we ef) Tj ET Q q 0 0 0 rg BT 393.37 610.25 Td (fectively transfer production processes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (from research and development to manufacturing and coordinate our ef) Tj ET Q q 0 0 0 rg BT 334.48 598.25 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 49.50 586.25 Td (production rapidly) Tj ET Q q 0 0 0 rg BT 123.00 586.25 Td (. If we fail to transfer production processes ef) Tj ET Q q 0 0 0 rg BT 304.70 586.25 Td (fectively) Tj ET Q q 0 0 0 rg BT 339.03 586.25 Td (, develop product enhancements or introduce new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (products in suf) Tj ET Q q 0 0 0 rg BT 108.76 574.25 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 49.50 562.25 Td (may be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 538.25 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 49.50 526.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 502.25 Td (For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.39 502.25 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.55 502.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.55 502.25 Td (fiscal 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.70 502.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.14 502.25 Td (fiscal 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.30 502.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 502.25 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.63 502.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.63 502.25 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.96 502.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.39 502.25 Td (76%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.72 502.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 382.39 502.25 Td (, of our net sales were derived from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (customers outside of the United States. ) Tj ET Q q 0 0 0 rg BT 207.90 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 216.54 490.25 Td (e anticipate that foreign sales, particularly in ) Tj ET Q q 0 0 0 rg BT 396.47 490.25 Td (Asia, will continue to account for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (significant portion of our net sales in the foreseeable future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 454.25 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 454.25 Td ( global economic slowdown or a natural disaster could have a negative ef) Tj ET Q q 0 0 0 rg BT 371.72 454.25 Td (fect on various foreign markets in which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 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 446.42 442.25 Td (Thailand in recent years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 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 451.13 430.25 Td (fect the overall level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (business in such countries. Our foreign sales are primarily through our direct sales force. ) Tj ET Q q 0 0 0 rg BT 406.07 418.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 455.97 418.25 Td (, some foreign sales are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (made through foreign distributors and resellers. Our foreign operations and sales are subject to a number of risks, including:) 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 67.50 382.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 382.25 Td (longer accounts receivable collection periods;) 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 67.50 358.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.25 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 67.50 346.25 Td () 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 (unexpected changes in regulatory requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.25 Td (certification requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.25 Td (environmental regulations;) 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 67.50 262.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 262.25 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 67.50 250.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 238.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 238.25 Td (potentially adverse tax consequences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.25 Td () 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 (political and economic instability;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 190.25 Td (import/export regulations, tarif) Tj ET Q q 0 0 0 rg BT 208.90 190.25 Td (fs and trade barriers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 166.25 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 67.50 154.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.25 Td (cultural and management dif) Tj ET Q q 0 0 0 rg BT 200.00 142.25 Td (ferences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 118.25 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 67.50 106.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 94.25 Td (preference for locally produced products; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 70.25 Td (shipping and other logistics complications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 58.25 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 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 endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream 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 72.00 742.10 Td (Our business could also be impacted by international conflicts, terrorist and military activity) Tj ET Q q 0 0 0 rg BT 440.42 742.10 Td (, civil unrest and pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (illness which could cause a slowdown in customer orders or cause customer order cancellations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 718.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 706.10 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 530.83 706.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 480.04 694.10 Td (While we use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 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 49.50 670.10 Td (to the economic risks of foreign currency fluctuations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 658.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 646.10 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 387.71 646.10 Td (fect our competitive advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 634.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 622.10 Td (Maintenance of intellectual property rights and the protection thereof is important to our business. ) Tj ET Q q 0 0 0 rg BT 466.43 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 475.07 622.10 Td (e rely on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 49.50 598.10 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 470.05 598.10 Td (ficiently protect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 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 49.50 574.10 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 400.36 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 409.00 574.10 Td (e cannot be certain that the steps we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (have taken will prevent the misappropriation of our intellectual property) Tj ET Q q 0 0 0 rg BT 337.92 562.10 Td (, particularly in foreign countries where the laws may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (not protect our proprietary rights as fully as in the United States. Further) Tj ET Q q 0 0 0 rg BT 338.76 550.10 Td (, we may be required to enforce our intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 49.50 526.10 Td (diversion of management's attention. ) Tj ET Q q 0 0 0 rg BT 198.77 526.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 248.67 526.10 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 49.50 514.10 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 49.50 502.10 Td (might infringe upon since these applications are often not publicly available until a patent is issued or published.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 478.10 Td (e may) Tj ET Q q 0 0 0 rg BT 81.43 478.10 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 49.50 466.10 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 49.50 454.10 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 49.50 442.10 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 72.00 430.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 418.10 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 49.50 406.10 Td (intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 160.40 406.10 Td (This has been seen in our industry) Tj ET Q q 0 0 0 rg BT 296.39 406.10 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 49.50 394.10 Td (between IMRA) Tj ET Q q 0 0 0 rg BT 110.88 394.10 Td ( ) Tj ET Q q 0 0 0 rg BT 112.83 394.10 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 49.50 382.10 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 49.50 370.10 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 49.50 358.10 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 49.50 346.10 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 49.50 334.10 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 49.50 322.10 Td (to indemnify our customers against third-party infringement claims relating to our products. ) Tj ET Q q 0 0 0 rg BT 419.51 322.10 Td (These claims and any resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 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 507.55 310.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 49.50 286.10 Td (time and attention. ) Tj ET Q q 0 0 0 rg BT 126.15 286.10 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 305.75 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 Td ( ) Tj ET Q BT /F1 3.00 Tf ET q 0 0 0 rg BT 85.50 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.25 262.10 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 67.50 250.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 238.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 238.10 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 530.26 238.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 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 67.50 214.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.10 Td (redesign the products that use the technology) Tj ET Q q 0 0 0 rg BT 265.36 202.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 190.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 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 49.50 166.10 Td (losses and our business may be seriously harmed. ) Tj ET Q q 0 0 0 rg BT 250.12 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 258.76 166.10 Td (e do not have insurance to cover potential claims of this type.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 154.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 72.00 130.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 118.10 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 49.50 106.10 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 94.10 Td (impairment at least annually) Tj ET Q q 0 0 0 rg BT 162.42 94.10 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 82.10 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 70.10 Td (market capitalization or future cash flows projections. ) Tj ET Q q 0 0 0 rg BT 267.58 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 276.21 70.10 Td (e recorded a char) Tj ET Q q 0 0 0 rg BT 344.59 70.10 Td (ge during the fourth quarter of fiscal 2012 related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (the impairment of intangibles in our SLS operating segment relating to the decision to discontinue the legacy Hypertronics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (products. ) Tj ET Q q 0 0 0 rg BT 90.89 46.10 Td (A) Tj ET Q q 0 0 0 rg BT 97.56 46.10 Td ( decline in our stock price, or any other adverse change in market conditions, particularly if such change has the ) 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 50 771.2669921875 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 endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 742.10 Td (fect of changing one of the critical assumptions or estimates we used to calculate the estimated fair value of our reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (units, could result in a change to the estimation of fair value that could result in an impairment char) Tj ET Q q 0 0 0 rg BT 446.70 730.10 Td (ge. ) Tj ET Q q 0 0 0 rg BT 460.59 730.10 Td (Any such material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (char) Tj ET Q q 0 0 0 rg BT 66.53 718.10 Td (ges, whether related to goodwill or purchased intangible assets, may have a material negative impact on our financial and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 694.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 682.10 Td (e depend on skilled personnel to operate our business ef) Tj ET Q q 0 0 0 rg BT 287.20 682.10 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 49.50 670.10 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 72.00 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 646.10 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 49.50 634.10 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 528.92 634.10 Td (ficult. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 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 415.32 622.10 Td (ficult to retain key employees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (management at a reasonable cost. ) Tj ET Q q 0 0 0 rg BT 185.93 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.56 610.10 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 49.50 598.10 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 543.86 598.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (our growth and our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 574.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 562.10 Td (Our future success depends upon the continued services of our executive of) Tj ET Q q 0 0 0 rg BT 373.67 562.10 Td (ficers and other key engineering, sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (marketing, manufacturing and support personnel, any of whom may leave, which could harm our business and our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 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 427.95 514.10 Td (fsetting net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 502.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td (Customers often view the purchase of our products as a significant and strategic decision. ) Tj ET Q q 0 0 0 rg BT 432.18 490.10 Td (As a result, customers typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (expend significant ef) Tj ET Q q 0 0 0 rg BT 133.18 478.10 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 49.50 466.10 Td (in a lengthy initial sales cycle. ) Tj ET Q q 0 0 0 rg BT 172.89 466.10 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 49.50 454.10 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 49.50 442.10 Td (needs. ) Tj ET Q q 0 0 0 rg BT 77.09 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.73 442.10 Td (e may also expend significant management ef) Tj ET Q q 0 0 0 rg BT 268.25 442.10 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 49.50 430.10 Td (components or materials prior to receiving an order) Tj ET Q q 0 0 0 rg BT 254.71 430.10 Td (. Even after this evaluation process, a potential customer may not purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (our products. ) Tj ET Q q 0 0 0 rg BT 104.22 418.10 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 49.50 406.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 406.10 Td (fset such expenses.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 49.50 370.10 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 72.00 358.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.10 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 440.92 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 449.56 346.10 Td (e compete against a number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (of lar) Tj ET Q q 0 0 0 rg BT 70.70 334.10 Td (ge public and private companies, including CVI Melles Griot, GSI Group,Inc.,IPG Photonics Corporation, JDS Uniphase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Corporation, Newport Corporation, Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 243.18 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 248.59 322.10 Td (echnologies,Inc., and ) Tj ET Q q 0 0 0 rg BT 338.38 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 344.13 322.10 Td (rumpfGmbH, as well as other smaller companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Some of our competitors are lar) Tj ET Q q 0 0 0 rg BT 176.22 310.10 Td (ge companies that have significant financial, technical, marketing and other resources. ) Tj ET Q q 0 0 0 rg BT 523.68 310.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (competitors may be able to devote greater resources than we can to the development, promotion, sale and support of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (products. Some of our competitors are much better positioned than we are to acquire other companies in order to gain new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (technologies or products that may displace our product lines. ) Tj ET Q q 0 0 0 rg BT 295.00 274.10 Td (Any of these acquisitions could give our competitors a strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (advantage. ) Tj ET Q q 0 0 0 rg BT 94.48 262.10 Td (Any business combinations or mer) Tj ET Q q 0 0 0 rg BT 233.17 262.10 Td (gers among our competitors, forming lar) Tj ET Q q 0 0 0 rg BT 395.17 262.10 Td (ger companies with greater resources, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (could result in increased competition, price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 320.89 250.10 Td (gins or loss of market share, any of which could materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (and adversely af) Tj ET Q q 0 0 0 rg BT 114.84 238.10 Td (fect our business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.00 226.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 214.10 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 49.50 202.10 Td (with new companies in the future. ) Tj ET Q q 0 0 0 rg BT 187.89 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.53 202.10 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 49.50 190.10 Td (competitors, are committed to the products of) Tj ET Q q 0 0 0 rg BT 231.77 190.10 Td (fered by these competitors. Further) Tj ET Q q 0 0 0 rg BT 371.60 190.10 Td (, our current or potential customers may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 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 451.88 178.10 Td (As a result of the foregoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (factors, we expect that competitive pressures may result in price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 404.74 166.10 Td (gins, loss of sales and loss of market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 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 49.50 130.10 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 49.50 118.10 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 72.00 106.10 Td () 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 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 82.10 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 70.10 Td (required to obtain the necessary components and materials. ) Tj ET Q q 0 0 0 rg BT 288.41 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.04 70.10 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 58.10 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 46.10 Td (specific supplier requirements, the size of the order) Tj ET Q q 0 0 0 rg BT 254.02 46.10 Td (, contract terms and current market demand for components. For substantial ) 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 50 771.2669921875 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 endstream endobj 59 0 obj <>] /Rotate 0 /Contents 60 0 R>> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (overestimate our component and material requirements, we may have excess inventory) Tj ET Q q 0 0 0 rg BT 396.78 730.10 Td (, which would increase our costs. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (underestimate our component and material requirements, we may have inadequate inventory) Tj ET Q q 0 0 0 rg BT 418.99 718.10 Td (, which could interrupt and delay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (delivery of our products to our customers. ) Tj ET Q q 0 0 0 rg BT 219.47 706.10 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 49.50 694.10 Td (operating results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (Our increased reliance on contract manufacturing and other outsourcing may adversely impact our financial results and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (operations due to 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 72.00 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 634.10 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 49.50 622.10 Td (complex turnkey products, including some performed at international sites located in ) Tj ET Q q 0 0 0 rg BT 391.08 622.10 Td (Asia and Eastern Europe. ) Tj ET Q q 0 0 0 rg BT 494.66 622.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 544.56 622.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (have outsourced the manufacture of certain of our optics components to certain third parties. Our ability to resume internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (manufacturing operations for certain products and components in a timely manner may be eliminated. ) Tj ET Q q 0 0 0 rg BT 459.47 598.10 Td (The cost, quality) Tj ET Q q 0 0 0 rg BT 525.75 598.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (performance and availability of contract manufacturing operations are and will be essential to the successful production and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (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 49.50 562.10 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 49.50 550.10 Td (to meet our cost, quality) Tj ET Q q 0 0 0 rg BT 145.77 550.10 Td (, performance, and availability standards. ) Tj ET Q q 0 0 0 rg BT 313.31 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.95 550.10 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 49.50 538.10 Td (product volumes that are high enough to achieve suf) Tj ET Q q 0 0 0 rg BT 258.70 538.10 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 49.50 526.10 Td (increased costs or be required to take ownership of the inventory) Tj ET Q q 0 0 0 rg BT 307.65 526.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.10 526.10 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 49.50 514.10 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 450.65 514.10 Td (, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (impact our financial condition or results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (If we fail to ef) Tj ET Q q 0 0 0 rg BT 107.08 478.10 Td (fectively manage our growth or) Tj ET Q q 0 0 0 rg BT 235.41 478.10 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 291.14 478.10 Td (, our spending during downturns, our business could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (disrupted, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 454.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 442.10 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 49.50 430.10 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 49.50 418.10 Td (strain. ) Tj ET Q q 0 0 0 rg BT 76.54 418.10 Td (The failure to ef) Tj ET Q q 0 0 0 rg BT 141.04 418.10 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 49.50 406.10 Td (successfully of) Tj ET Q q 0 0 0 rg BT 109.03 406.10 Td (fer our products and implement our business plan in evolving markets requires an ef) Tj ET Q q 0 0 0 rg BT 445.70 406.10 Td (fective planning and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (management process. In economic downturns, we must ef) Tj ET Q q 0 0 0 rg BT 281.20 394.10 Td (fectively manage our spending and operations to ensure our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 536.99 382.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (failure to ef) Tj ET Q q 0 0 0 rg BT 95.96 370.10 Td (fectively manage our spending and operations could disrupt our business and harm our operating results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 358.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.46 346.10 Td (, acquisitions have been an important element of our strategy) Tj ET Q q 0 0 0 rg BT 348.76 346.10 Td (. However) Tj ET Q q 0 0 0 rg BT 389.87 346.10 Td (, we may not find suitable acquisition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 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 490.25 334.10 Td (Any acquisitions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 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 72.00 310.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 298.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 298.10 Td (e have in the past made strategic acquisitions of other corporations and entities, as well as asset purchases, and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (continue to evaluate potential strategic acquisitions of complementary companies, products and technologies. In the event of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (any future acquisitions, we could:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 250.10 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 67.50 238.10 Td () 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 (pay cash that would decrease our working capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.10 Td (incur debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 178.10 Td (assume liabilities; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.10 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 67.50 142.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 130.10 Td (Acquisitions also involve numerous risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 118.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 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 94.10 Td () 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 (an inability to realize expected operating ef) Tj ET Q q 0 0 0 rg BT 258.57 82.10 Td (ficiencies or product integration benefits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 58.10 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 58.10 Td (ficulties in coordinating and integrating geographically separated personnel, or) Tj ET Q q 0 0 0 rg BT 411.42 58.10 Td (ganizations, systems and facilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 46.10 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 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 endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 0 obj <> stream 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 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 (dif) Tj ET Q q 0 0 0 rg BT 96.43 742.10 Td (ficulties integrating business cultures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 718.10 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 85.50 706.10 Td (company;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 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 67.50 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 126.13 658.10 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 67.50 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td (potential loss of key employees, particularly those of the purchased or) Tj ET Q q 0 0 0 rg BT 365.51 634.10 Td (ganizations;) 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 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 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 67.50 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 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 85.50 574.10 Td (in the expensing of potentially significant professional fees and other char) Tj ET Q q 0 0 0 rg BT 381.34 574.10 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 85.50 562.10 Td (negotiations are terminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 538.10 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 49.50 526.10 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 49.50 514.10 Td (transactions, which may harm our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 490.10 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 458.87 490.10 Td (fect on our business, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 454.10 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 539.33 454.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (death or commercial losses occur from the use of our products. ) Tj ET Q q 0 0 0 rg BT 303.68 442.10 Td (While we typically maintain business insurance, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (directors' and of) Tj ET Q q 0 0 0 rg BT 113.88 430.10 Td (ficers' policies, litigation can be expensive, lengthy) Tj ET Q q 0 0 0 rg BT 317.74 430.10 Td (, and disruptive to normal business operations, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (potential impact of indemnification obligations for individuals named in any such lawsuits. ) Tj ET Q q 0 0 0 rg BT 416.19 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.83 418.10 Td (e may not, however) Tj ET Q q 0 0 0 rg BT 503.29 418.10 Td (, be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (secure insurance coverage on terms acceptable to us in the future. Moreover) Tj ET Q q 0 0 0 rg BT 353.41 406.10 Td (, the results of complex legal proceedings are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 394.10 Td (ficult to predict. ) Tj ET Q q 0 0 0 rg BT 126.52 394.10 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 49.50 382.10 Td (determined to be defective, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 289.75 382.10 Td (fect on our business, operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 358.10 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 49.50 346.10 Td (damage or liability resulting from accidental environmental contamination or injury) Tj ET Q q 0 0 0 rg BT 396.66 346.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 334.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 322.10 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 49.50 310.10 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 49.50 298.10 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 509.35 298.10 Td (Also, if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 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 49.50 274.10 Td (it could release highly toxic emissions. ) Tj ET Q q 0 0 0 rg BT 207.35 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.98 274.10 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 49.50 262.10 Td (comply with all federal, state and of) Tj ET Q q 0 0 0 rg BT 193.44 262.10 Td (fshore regulations and standards. However) Tj ET Q q 0 0 0 rg BT 363.82 262.10 Td (, the risk of accidental environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 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 49.50 238.10 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 49.50 226.10 Td (resources of our business which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 278.41 226.10 Td (fect on our financial results or our business as a whole.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 214.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 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 72.00 190.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 178.10 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 49.50 166.10 Td (dischar) Tj ET Q q 0 0 0 rg BT 78.20 166.10 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 49.50 154.10 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 49.50 142.10 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 49.50 130.10 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 49.50 118.10 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 49.50 106.10 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 94.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 82.10 Td (From time to time new regulations are enacted, and it is dif) Tj ET Q q 0 0 0 rg BT 308.42 82.10 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 70.10 Td (and enforced. ) Tj ET Q q 0 0 0 rg BT 106.23 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 114.87 70.10 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 70.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (regulations include, for example, the Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 300.27 58.10 Td (Authorization and Restriction of Chemical substances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 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 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 endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream 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 (\(RoHS\) and the ) Tj ET Q q 0 0 0 rg BT 123.46 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 132.10 742.10 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 49.50 730.10 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 49.50 718.10 Td (products we manufacture. ) Tj ET Q q 0 0 0 rg BT 155.39 718.10 Td (This and similar legislation that has been or is in the process of being enacted in Japan, China, Korea ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (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 49.50 694.10 Td (standards, for example by requiring the use of dif) Tj ET Q q 0 0 0 rg BT 246.76 694.10 Td (ferent types of materials. ) Tj ET Q q 0 0 0 rg BT 348.48 694.10 Td (These redesigns or alternative materials may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 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 49.50 670.10 Td (similar ef) Tj ET Q q 0 0 0 rg BT 87.36 670.10 Td (fects. ) Tj ET Q q 0 0 0 rg BT 111.06 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 119.70 670.10 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 49.50 658.10 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 49.50 646.10 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 49.50 634.10 Td (incur any additional material costs or expenses associated with our operations. ) Tj ET Q q 0 0 0 rg BT 365.34 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 373.98 634.10 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 49.50 622.10 Td (costs or expenses. ) Tj ET Q q 0 0 0 rg BT 123.75 622.10 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 49.50 610.10 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 490.41 610.10 Td (forts to prevent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (the sourcing of such minerals. ) Tj ET Q q 0 0 0 rg BT 174.57 598.10 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 49.50 586.10 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 49.50 574.10 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 49.50 562.10 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 49.50 550.10 Td (claims, and could jeopardize our ability to conduct business in the United States and foreign countries.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 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 49.50 514.10 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 72.00 502.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td (Our and our customers' operations, logistics and facilities and those of our suppliers and contract manufacturers could be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (subject 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 530.89 478.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (pandemic illnesses, ener) Tj ET Q q 0 0 0 rg BT 146.79 466.10 Td (gy shortages, theft of assets, other natural disasters or terrorist activity) Tj ET Q q 0 0 0 rg BT 426.61 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 431.06 466.10 Td (A) Tj ET Q q 0 0 0 rg BT 437.73 466.10 Td ( substantial portion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (research and development activities, manufacturing, our corporate headquarters and other critical business operations are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (located near major earthquake faults in Santa Clara, California, an area with a history of seismic events. ) Tj ET Q q 0 0 0 rg BT 466.58 442.10 Td (Any such loss or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (detrimental impact to any of our operations, logistics or facilities could disrupt our operations, delay production, shipments and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (net sales and result in lar) Tj ET Q q 0 0 0 rg BT 148.46 418.10 Td (ge expenses to repair or replace the facility) Tj ET Q q 0 0 0 rg BT 319.67 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 324.49 418.10 Td (While we have obtained insurance to cover most potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (losses, after reviewing the costs and limitations associated with earthquake insurance, we have decided not to procure such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (insurance. ) Tj ET Q q 0 0 0 rg BT 92.63 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 101.27 394.10 Td (e believe that this decision is consistent with decisions reached by numerous other companies located nearby) Tj ET Q q 0 0 0 rg BT 535.77 394.10 Td (. ) Tj ET Q q 0 0 0 rg BT 540.59 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 549.23 394.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (cannot assure you that our 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 49.50 360.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 62.65 360.10 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 49.50 348.10 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 49.50 336.10 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 49.50 324.10 Td (and financial exposure and liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 307.60 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 49.50 295.60 Td (products licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 198.63 295.60 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 49.50 283.60 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 49.50 271.60 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 49.50 259.60 Td (the SEC. ) Tj ET Q q 0 0 0 rg BT 89.50 259.60 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 49.50 247.60 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 49.50 235.60 Td (system could adversely af) Tj ET Q q 0 0 0 rg BT 152.90 235.60 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 49.50 223.60 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 223.60 Td (Act of 2002. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 207.10 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 49.50 195.10 Td (technology system. ) Tj ET Q q 0 0 0 rg BT 129.03 195.10 Td (While our system is designed with access security) Tj ET Q q 0 0 0 rg BT 328.61 195.10 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 49.50 183.10 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 49.50 171.10 Td (business, litigation and possible liability) Tj ET Q q 0 0 0 rg BT 209.68 171.10 Td (. ) Tj ET Q q 0 0 0 rg BT 214.50 171.10 Td (These 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 49.50 159.10 Td (intentional misconduct by computer hackers, employee error) Tj ET Q q 0 0 0 rg BT 292.07 159.10 Td (, malfeasance or otherwise. ) Tj ET Q q 0 0 0 rg BT 403.14 159.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 453.04 159.10 Td (, third parties may attempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 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 49.50 135.10 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 49.50 123.10 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 49.50 111.10 Td (sabotage systems, change frequently and generally are not recognized until launched against a tar) Tj ET Q q 0 0 0 rg BT 438.61 111.10 Td (get, we may be unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (anticipate these techniques or to implement adequate preventative measures. ) Tj ET Q q 0 0 0 rg BT 357.16 99.10 Td (Any security breach could result in a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 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 75.10 Td (future sales. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 51.10 Td (Changes in tax rates, tax liabilities or tax accounting rulescould af) Tj ET Q q 0 0 0 rg BT 326.58 51.10 Td (fect future results.) 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 50 771.2669921875 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 endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream 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 72.00 730.10 Td (As a global company) Tj ET Q q 0 0 0 rg BT 156.05 730.10 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 49.50 718.10 Td (Significant judgment is required to determine worldwide tax liabilities. Our future tax rates could be af) Tj ET Q q 0 0 0 rg BT 460.87 718.10 Td (fected by changes in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (composition of earnings in countries or states with dif) Tj ET Q q 0 0 0 rg BT 264.84 706.10 Td (fering tax rates, changes in the valuation of our deferred tax assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (liabilities, or changes in the tax laws or the interpretation of such tax laws, including the Base Erosion Profit Shifting \(BEPS\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (project being conducted by the Or) Tj ET Q q 0 0 0 rg BT 185.66 682.10 Td (ganization for Economic Co-operation and Development \(OECD\). In addition, we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (subject to regular examination of our income tax returns by the Internal Revenue Service \(IRS\) and other tax authorities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (From time to time the United States, foreign and state governments make substantive changes to tax rulesand the application of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (rulesto companies, including various announcements from the United States government potentially impacting our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (defer taxes on international earnings. ) Tj ET Q q 0 0 0 rg BT 199.82 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 208.46 634.10 Td (e regularly assess the likelihood of favorable or unfavorable outcomes resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (these examinations to determine the adequacy of our provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 374.12 622.10 Td (Although we believe our tax estimates are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 414.46 610.10 Td (ferent than the treatment reflected in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (our historical income tax provisions and accruals, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 410.59 598.10 Td (fect our operating results and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 564.10 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 49.50 552.10 Td (regarding compliance matters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 540.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 528.10 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 478.64 528.10 Td (ganizations such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.10 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 49.50 504.10 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 49.50 492.10 Td (members and impose civil and criminal penalties for companies and their chief executive of) Tj ET Q q 0 0 0 rg BT 416.69 492.10 Td (ficers, chief financial of) Tj ET Q q 0 0 0 rg BT 512.01 492.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.10 Td (directors for securities law violations. ) Tj ET Q q 0 0 0 rg BT 202.61 480.10 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 49.50 468.10 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 49.50 456.10 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 49.50 444.10 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 49.50 432.10 Td (standards are subject to varying interpretations in many cases. ) Tj ET Q q 0 0 0 rg BT 299.43 432.10 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 49.50 420.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 420.10 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 49.50 408.10 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 49.50 396.10 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 49.50 384.10 Td (our ef) Tj ET Q q 0 0 0 rg BT 72.92 384.10 Td (forts to comply with new or changed laws, regulations and standards dif) Tj ET Q q 0 0 0 rg BT 361.00 384.10 Td (fer from the activities intended by regulatory or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.10 Td (governing bodies due to ambiguities related to practice, our reputation may also be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 360.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 348.10 Td (Governmental regulations, including duties, af) Tj ET Q q 0 0 0 rg BT 242.12 348.10 Td (fecting the import or export of products could negatively af) Tj ET Q q 0 0 0 rg BT 484.42 348.10 Td (fect our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 336.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 324.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.20 324.10 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 49.50 312.10 Td (including some of those which we sell. In particular) Tj ET Q q 0 0 0 rg BT 256.55 312.10 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 49.50 300.10 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 49.50 288.10 Td (foreign subsidiaries. ) Tj ET Q q 0 0 0 rg BT 132.91 288.10 Td (These products can be subject to a duty on the product value. ) Tj ET Q q 0 0 0 rg BT 379.23 288.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 429.13 288.10 Td (, the United States and various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.10 Td (foreign governments have imposed tarif) Tj ET Q q 0 0 0 rg BT 209.27 276.10 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 49.50 264.10 Td (some technologies, especially encryption technology) Tj ET Q q 0 0 0 rg BT 260.18 264.10 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 49.50 252.10 Td (regulation of encryption technology) Tj ET Q q 0 0 0 rg BT 192.42 252.10 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 49.50 240.10 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 49.50 228.10 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 454.74 228.10 Td (fect our net sales. From ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (time to time our duty calculations and payments are audited by government agencies. In the event of an adverse audit result, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (could be liable for additional payments, duties, taxes and penalties, any of which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 503.88 204.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (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 72.00 180.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 168.10 Td (In addition, compliance with the directives of the Directorate of Defense ) Tj ET Q q 0 0 0 rg BT 364.49 168.10 Td (T) Tj ET Q q 0 0 0 rg BT 370.24 168.10 Td (rade Controls \(DDTC\) may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (substantial expenses and diversion of management. ) Tj ET Q q 0 0 0 rg BT 256.39 156.10 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 49.50 144.10 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 460.59 144.10 Td (fect on our business or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (financial position, results of operations, or cash flows.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 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 96.10 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 84.10 Td (operating results will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 72.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 60.10 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 48.10 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 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 endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (rapid change, it is dif) Tj ET Q q 0 0 0 rg BT 134.02 742.10 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 49.50 730.10 Td (will depend on, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 718.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (maintaining and enhancing our relationships with our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 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 67.50 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 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 85.50 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 634.10 Td (For our fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.98 634.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.98 634.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.98 634.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.98 634.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.41 634.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.41 634.10 Td (, our research and development costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.57 634.10 Td ($79.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.46 634.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.29 634.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.12 634.10 Td ( of net sales\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td ($82.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 622.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 622.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.05 622.10 Td ( of net sales\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.31 622.10 Td ($78.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.20 622.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.03 622.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.86 622.10 Td ( of net sales\), respectively) Tj ET Q q 0 0 0 rg BT 394.33 622.10 Td (. ) Tj ET Q q 0 0 0 rg BT 399.15 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 407.79 622.10 Td (e cannot assure you that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (expenditures for research and development will result in the introduction of new products or) Tj ET Q q 0 0 0 rg BT 418.16 610.10 Td (, if such products are introduced, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (that those products will achieve suf) Tj ET Q q 0 0 0 rg BT 190.67 598.10 Td (ficient market acceptance or to generate sales to of) Tj ET Q q 0 0 0 rg BT 393.16 598.10 Td (fset the costs of development. Our failure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (to address rapid technological changes in our markets could adversely af) Tj ET Q q 0 0 0 rg BT 339.77 586.10 Td (fect our business and results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (Failure to maintain ef) Tj ET Q q 0 0 0 rg BT 140.72 562.10 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 49.50 550.10 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 422.11 550.10 Td (fect our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 538.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.10 Td (The SEC, as directed by Section404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 312.78 526.10 Td (Act of 2002, adopted rulesrequiring public companies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 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 49.50 502.10 Td (assessment by management of the ef) Tj ET Q q 0 0 0 rg BT 195.66 502.10 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 49.50 490.10 Td (registered public accounting firm must attest to and report on the ef) Tj ET Q q 0 0 0 rg BT 318.96 490.10 Td (fectiveness of our internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 49.50 466.10 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 49.50 454.10 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 49.50 442.10 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 49.50 418.10 Td (Provisions of our charter documents and Delaware law) Tj ET Q q 0 0 0 rg BT 276.65 418.10 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 49.50 406.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 406.10 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 72.00 394.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.10 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 458.64 382.10 Td (ger or acquisition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (make removal of incumbent directors or of) Tj ET Q q 0 0 0 rg BT 220.93 370.10 Td (ficers more dif) Tj ET Q q 0 0 0 rg BT 279.61 370.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 305.53 370.10 Td (These provisions may discourage takeover attempts and bids ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (for our common stock at a premium over the market price. ) Tj ET Q q 0 0 0 rg BT 285.91 358.10 Td (These provisions include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.10 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 67.50 322.10 Td () 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 (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 67.50 298.10 Td () 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 (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 85.50 274.10 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 49.50 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 250.10 Td (e are subject to Section203 of the Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 361.82 250.10 Td (, which prohibits a publicly-held Delaware ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (corporation from engaging in a mer) Tj ET Q q 0 0 0 rg BT 191.77 238.10 Td (ger) Tj ET Q q 0 0 0 rg BT 204.14 238.10 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 49.50 226.10 Td (three years following the date such person became an interested stockholder) Tj ET Q q 0 0 0 rg BT 353.43 226.10 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 49.50 214.10 Td (obtained or as otherwise provided. ) Tj ET Q q 0 0 0 rg BT 189.84 214.10 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 49.50 202.10 Td (acquiring or mer) Tj ET Q q 0 0 0 rg BT 115.96 202.10 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 49.50 190.10 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 49.50 178.10 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 49.50 166.10 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 49.50 154.10 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 50.00 130.10 Td (ITEM 1B.UNRESOL) Tj ET Q q 0 0 0 rg BT 150.77 130.10 Td (VED ST) Tj ET Q q 0 0 0 rg BT 185.87 130.10 Td (AFF) Tj ET Q q 0 0 0 rg BT 204.94 130.10 Td ( COMMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 110.10 Td (Not ) Tj ET Q q 0 0 0 rg BT 90.95 110.10 Td (Applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (ITEM 2.PROPER) Tj ET Q q 0 0 0 rg BT 137.43 78.10 Td (TIES ) 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 50 771.2669921875 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 endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream 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 74.00 742.10 Td (Our corporate headquarters is located in Santa Clara, California. ) Tj ET Q q 0 0 0 rg BT 333.07 742.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.73 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.73 742.10 Td (year) Tj ET Q q 0 0 0 rg BT 409.23 742.10 Td (-end, our locations with lar) Tj ET Q q 0 0 0 rg BT 517.08 742.10 Td (ger than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (10,000 square feet were as follows \(all square footage is approximate\) \(unless otherwise indicated, each property is utilized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (jointly by our two segments\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 685.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 685.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 685.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 685.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 685.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 685.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 685.60 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 645.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 645.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 645.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 645.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 645.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 645.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 645.60 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 595.60 107.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 595.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 595.60 134.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 595.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 595.60 133.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 595.60 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 595.60 126.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 547.60 107.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 547.60 134.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 547.60 133.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 547.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 547.60 126.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 507.60 107.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 507.60 4.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 507.60 134.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 507.60 4.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 507.60 133.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 507.60 4.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 507.60 126.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 446.60 107.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 446.60 4.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 446.60 134.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 446.60 4.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 446.60 133.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 446.60 4.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 446.60 126.00 -39.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 382.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 382.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 382.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 382.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 382.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 382.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 382.60 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 332.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 332.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 332.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 332.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 332.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 332.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 332.60 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 282.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 282.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 282.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 282.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 282.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 282.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 282.60 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 232.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 232.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 232.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 232.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 232.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 232.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 232.60 126.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 182.60 107.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 156.50 182.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 160.50 182.60 134.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 182.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 298.50 182.60 133.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 182.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 182.60 126.00 -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 160.5 685.6 m 294.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 685.6 m 431.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 685.6 m 561.5 685.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 690.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 207.20 689.83 Td (Description) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.25 689.83 Td (Use) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.80 689.83 Td (Term) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 676.17 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 676.17 Td (8.5 acres of land, 200,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 666.17 Td (square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 676.17 Td (Corporate headquarters,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 666.17 Td (manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 676.17 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 651.17 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 651.17 Td (90,120 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 651.17 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 651.17 Td (Leased through July 2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 636.17 Td (Sunnyvale, CA \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 636.17 Td (24,159 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 636.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 636.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 626.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 611.17 Td (Bloomfield, CT \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 611.17 Td (72,996 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 611.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 611.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 601.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 586.17 Td (East Hanover, NJ \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 586.17 Td (29,932 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 586.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 586.17 Td (Leased through October) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 576.17 Td (2015*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 563.17 Td (Wilsonville, OR \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 563.17 Td (41,250 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 563.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 563.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 553.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 538.17 Td (Salem, NH\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 538.17 Td (44,153 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 538.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 538.17 Td (Leased through October 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 523.17 Td (Dieburg, Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 523.17 Td (32,123 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 523.17 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 523.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 513.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 498.17 Td (Gttingen, Germany\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 498.17 Td (7.6 acres of land, several) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 488.17 Td (buildings totaling 136,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 478.17 Td (square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 498.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 498.17 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 462.17 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 462.17 Td (41,328 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 462.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 462.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 452.17 Td (2014*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 437.17 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 437.17 Td (22,583 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 437.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 437.17 Td (Leased through December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 427.17 Td (2014 with option to purchase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 417.17 Td ( building*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 398.17 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 398.17 Td (8,159 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 398.17 Td (Manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 397.27 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 387.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 373.17 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 373.17 Td (7,578 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 373.17 Td (Manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 373.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 363.17 Td (2015*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 348.17 Td (Kaiserslautern, Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 338.17 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 348.17 Td (33,740 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 348.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 348.17 Td (Leased through September) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 338.17 Td (2015*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 323.17 Td (Hannover, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 323.17 Td (11,759 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 323.17 Td (Manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 323.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 313.17 Td (2014*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 298.17 Td (Shanghai, China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 298.17 Td (11,127 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 298.17 Td (Office, Minor Service Repair) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 298.17 Td (Leased through May 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 273.17 Td (Seoul, South Korea) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 273.17 Td (16,474 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 273.17 Td (Office, Minor Service Repair) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 273.17 Td (Leased through October) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 263.17 Td (2015*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 248.17 Td (Tokyo, Japan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 248.17 Td (17,602 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 248.17 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 248.17 Td (Leased through April 2015*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 223.17 Td (Glasgow, Scotland \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 223.17 Td (2 acres of land, 31,600 square) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 213.17 Td (foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 223.17 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 223.17 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 198.17 Td (YongIn-Si, South Korea) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 188.17 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 198.17 Td (33,074 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 198.17 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 198.17 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 188.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 173.17 Td (Kallang Sector,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 163.17 Td (Singapore) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 173.17 Td (31,894 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 173.17 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 173.17 Td (Leased through March 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 148.17 Td (Penang, Malaysia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 148.17 Td (12,519 square foot building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 148.17 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 148.17 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 86.00 121.10 Td (_________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 100.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 100.10 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 79.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 79.10 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 72.50 59.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 59.10 Td (e maintain other sales and service of) Tj ET Q q 0 0 0 rg BT 226.46 59.10 Td (fices under varying leases expiring from 2015 through 2020 in Japan, China, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 47.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 47.10 Td (aiwan, France, Italy) Tj ET Q q 0 0 0 rg BT 134.17 47.10 Td (, the United Kingdom and the Netherlands.) 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 50 771.2669921875 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 endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream 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 72.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 742.10 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 50.00 730.10 Td (productive capacity in our facilities is substantially being utilized or we have plans to utilize it.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 710.10 Td (* ) Tj ET Q q 0 0 0 rg BT 79.82 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 88.46 710.10 Td (e plan to renew leases on buildings as they expire. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (ITEM 3.LEGAL) Tj ET Q q 0 0 0 rg BT 131.13 686.10 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 666.10 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 514.55 666.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 455.92 654.10 Td (. On May 14, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (IMRA) Tj ET Q q 0 0 0 rg BT 75.56 642.10 Td ( ) Tj ET Q q 0 0 0 rg BT 77.51 642.10 Td (America \(Imra\) filed a complaint for patent infringement against two of the Company) Tj ET Q q 0 0 0 rg BT 432.38 642.10 Td (s subsidiaries in the Regional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (Court of Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 171.55 630.10 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 264.58 630.10 Td ( ) Tj ET Q q 0 0 0 rg BT 266.53 630.10 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (The complaint alleges that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 296.59 618.10 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 400.09 618.10 Td ( Patent No. 754,103, entitled Method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (For Controlling Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 308.84 606.10 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 460.30 606.10 Td (The patent is owned by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (the University of Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 247.27 594.10 Td (The complaint seeks unspecified compensatory damages, the cost of court ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (proceedings and seeks to permanently enjoin the Company from infringing the patent in the future. Management has made an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (accrual with respect to this matter and has determined, based on its current knowledge, that the amount or range of reasonably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (possible losses in excess of the amounts already accrued, is not reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 393.52 558.10 Td (Although we do not expect that such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (legal claims and litigation will ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 321.39 546.10 Td (fect on our consolidated financial position, results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (operations or cash flows, an adverse result in one or more matters could negatively af) Tj ET Q q 0 0 0 rg BT 391.65 534.10 Td (fect our results in the period in which they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (occur) Tj ET Q q 0 0 0 rg BT 71.66 522.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 505.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.98 505.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.73 505.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 101.68 505.10 Td (Audits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 488.10 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 50.00 476.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 341.51 476.10 Td (1 are closed. In our major foreign jurisdictions and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 464.10 Td (major state jurisdictions, the years prior to 2006 and 2010, respectively) Tj ET Q q 0 0 0 rg BT 333.73 464.10 Td (, are closed to examination. Earlier years in our various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 452.10 Td (jurisdictions may remain open for adjustment to the extent that we have tax attribute carryforwards from those years. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 440.10 Td (December 201) Tj ET Q q 0 0 0 rg BT 108.21 440.10 Td (1 and January 2012, three of our German subsidiaries received notices of tax audits for the fiscal years 2006 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 428.10 Td (through 2010. In fiscal year 2013, we received a preliminary assessment for two of the German subsidiaries and the amount is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 416.10 Td (immaterial; the audit for the other German subsidiary is currently in process. In addition, we received in July 2014 a final tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 404.10 Td (assessment for our German subsidiary of Coherent Kaiserslautern GmbH \(formerly Lumera Laser GmbH\) that was acquired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 392.10 Td (December 2012 and was under audit for the fiscal years 2007 through 2009. ) Tj ET Q q 0 0 0 rg BT 356.40 392.10 Td (The tax assessment is immaterial and it was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 380.10 Td (recovered from the escrow account for the acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 363.10 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 525.30 363.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.94 363.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.10 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 50.00 339.10 Td (reasonably possible that certain federal, foreign and state tax matters may be concluded in the next 12 months. ) Tj ET Q q 0 0 0 rg BT 493.19 339.10 Td (Although the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 327.10 Td (timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 315.10 Td (unrecognized tax benefits including interest and penalties could be reduced by up to approximately $2.5 million in the next 12 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 303.10 Td (months.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 269.10 Td (ITEM 4.MINE SAFETY) Tj ET Q q 0 0 0 rg BT 165.47 269.10 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 249.10 Td (Not applicable.) 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 50 771.2669921875 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 endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) 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 (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.00 602.83 Td (2013) 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 (74.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 577.32 Td (61.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 577.32 Td (49.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 577.32 Td (42.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 563.32 Td (Second quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 563.32 Td (75.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 563.32 Td (63.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 563.32 Td (59.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 563.32 Td (50.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 549.32 Td (Third quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 549.32 Td (68.77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 549.32 Td (56.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 549.32 Td (58.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 549.32 Td (50.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 535.32 Td (Fourth quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 535.32 Td (67.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 535.32 Td (58.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 535.32 Td (62.68) 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 (55.19) 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 9.00 Tf ET q 0 0 0 rg BT 249.50 511.25 Td (November24, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.23 511.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.79 511.25 Td (823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.79 511.25 Td (. On December10, 2012, we announced that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.25 Td (Board of Directors approved a $1.00 per share special cash dividend on our outstanding common stock payable on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.25 Td (December27, 2012 to stockholders of record on December19, 2012, resulting in a payment of $24.0 million in the first quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.25 Td (of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 112.30 475.25 Td (While we paid a cash dividend in fiscal 2013 and may elect to pay dividends in the future, we have no present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.25 Td (intention to declare cash dividends. Our line of credit agreement requires bank pre-approval for the payment of cash dividends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.50 443.25 Td (There were no sales of unregistered securities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.98 443.25 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.13 443.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.25 Td ( ) Tj ET Q q 0 0 0 rg BT 72.50 419.25 Td (There were no stock repurchases during the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.19 419.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.45 419.25 Td (. Refer to Note 1) Tj ET Q q 0 0 0 rg BT 477.00 419.25 Td (1 "Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.25 Td (Repurchases and Dividends" of our Notes to Consolidated Financial Statements under Item15 of this annual report.) 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 50 771.2669921875 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 endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (35) 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 (October3, 2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.32 690.25 Td ( through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.43 690.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.70 690.25 Td ( comparing the return on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (our common stock with the Russell 2000 Index, the Standard and Poors ) Tj ET Q q 0 0 0 rg BT 338.95 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 344.36 678.25 Td (echnology Index and the Nasdaq Composite Index. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (The 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 0 231.65 50.00 361.61 cm /I19 Do Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 330.1 m 349.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 330.1 m 353.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 330.1 m 402.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 330.1 m 406.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 330.1 m 455.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 330.1 m 459.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 330.1 m 508.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 330.1 m 512.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 330.1 m 561.5 330.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 310.1 m 296.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 310.1 m 349.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 310.1 m 353.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 310.1 m 402.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 310.1 m 406.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 310.1 m 455.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 310.1 m 459.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 310.1 m 508.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 310.1 m 512.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 310.1 m 561.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 310.1 m 296.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 298.1 m 296.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 310.1 m 349.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 298.1 m 349.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 310.1 m 402.5 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 298.1 m 402.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 298.1 m 455.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 298.1 m 508.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 298.1 m 561.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 298.1 m 296.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 298.1 m 349.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 298.1 m 402.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 298.1 m 455.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 298.1 m 508.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 298.1 m 561.5 298.1 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 333.83 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.00 333.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.90 334.33 Td (INDEXED RETURNS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 314.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.50 322.18 Td (Base) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.15 314.18 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.45 314.33 Td (Years Ending) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 302.18 Td (Company Name / Index) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.25 302.18 Td (10/3/2009) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.25 302.18 Td (10/2/2010) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.45 302.18 Td (10/1/2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.25 302.18 Td (9/29/2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.25 302.18 Td (9/28/2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.25 302.18 Td (9/27/2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 288.67 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 288.67 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 288.67 Td (175.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 288.67 Td (187.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 288.67 Td (199.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 288.67 Td (272.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 288.67 Td (279.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 274.67 Td (Russell 2000 Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 274.67 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 274.67 Td (118.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 274.67 Td (113.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 274.67 Td (150.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 274.67 Td (195.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 274.67 Td (206.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 260.67 Td (S&P Technology Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 260.67 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 260.67 Td (114.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 260.67 Td (118.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 260.67 Td (157.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 260.67 Td (168.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 260.67 Td (216.82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 246.67 Td (NASDAQ Composite Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 246.67 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 246.67 Td (116.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 246.67 Td (120.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 246.67 Td (156.82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 246.67 Td (193.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 246.67 Td (233.13) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 222.60 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 50.00 210.60 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 50.00 198.60 Td (filing except to the extent that we specifically incorporate it by reference into such filing.) 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 50 771.2669921875 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 endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (36) 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 (2014) 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 (2013) 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 (2012) 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 (2014) 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 (2013) 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 201) Tj ET Q q 0 0 0 rg BT 419.34 654.25 Td (1 and 2010 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 2012, 201) Tj ET Q q 0 0 0 rg BT 210.68 642.25 Td (1 and 2010year) Tj ET Q q 0 0 0 rg BT 274.62 642.25 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 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 252.50 595.83 Td (2014) 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 312.80 595.83 Td (2013\(1\)) 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 377.80 595.83 Td (2012\(2\)) 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 443.05 595.83 Td (201) Tj ET Q q 0 0 0 rg BT 454.61 595.83 Td (1\(3\)) 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 512.80 595.83 Td (2010\(4\)) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 570.32 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 570.32 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 570.32 Td (769,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 570.32 Td (802,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 570.32 Td (605,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 556.32 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 556.32 Td (313,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 556.32 Td (322,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 556.32 Td (315,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 556.32 Td (350,822) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 556.32 Td (260,811) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 542.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 542.32 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 542.32 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 542.32 Td (62,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 542.32 Td (93,238) 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 (36,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 528.32 Td (Net income \(loss\) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.15 514.32 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 514.32 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 514.32 Td (2.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 514.32 Td (3.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 514.32 Td (1.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 500.32 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.15 500.32 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 500.32 Td (2.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 500.32 Td (2.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 500.32 Td (3.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 500.32 Td (1.47) 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 (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 472.32 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 472.32 Td (23,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 472.32 Td (24,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 472.32 Td (24,718) 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 (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 458.32 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 458.32 Td (24,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 458.32 Td (25,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 458.32 Td (25,091) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 444.32 Td (999,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 444.32 Td (966,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 444.32 Td (880,772) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 444.32 Td (843,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 444.32 Td (803,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 430.32 Td (Other long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 430.32 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 430.32 Td (62,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 430.32 Td (55,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 430.32 Td (62,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 430.32 Td (79,721) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 416.32 Td (819,649) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 416.32 Td (758,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 416.32 Td (671,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 416.32 Td (618,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 416.32 Td (591,463) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 402.32 Td (Other data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 388.32 Td (Cash dividends declared per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 388.32 Td ($) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 388.32 Td (1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 388.32 Td ($) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 388.32 Td ($) 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 50.00 374.65 Td (_______________________________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 353.65 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 353.65 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 50.00 332.65 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 332.65 Td (Includes a char) Tj ET Q q 0 0 0 rg BT 137.34 332.65 Td (ge of $4.3 million after tax related to the write-of) Tj ET Q q 0 0 0 rg BT 333.76 332.65 Td (f of previously acquired intangible assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 320.65 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 77.00 308.65 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 50.00 287.65 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 287.65 Td (Includes a gain of $6.1 million after tax related to the dissolution of our Finland operations, a $9.7 million tax benefit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 275.65 Td (from the release of tax reserves and related interest as a result of an IRS settlement and the closure of open tax years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 263.65 Td (a $1.5 million tax char) Tj ET Q q 0 0 0 rg BT 167.07 263.65 Td (ge due to an increase in valuation allowances against deferred tax assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.65 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 242.65 Td (Includes restructuring expenses of $5.8million after tax primarily related to the closure of our Finland site and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 230.65 Td (consolidation of our Montreal, Canada site under the management of our ) Tj ET Q q 0 0 0 rg BT 370.62 230.65 Td (W) Tj ET Q q 0 0 0 rg BT 379.66 230.65 Td (ilsonville, Oregon site and a net benefit after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 218.65 Td (tax of $1.4million related to a receipt from the settlement of litigation resulting from our internal stock option ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 206.65 Td (investigation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.65 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 185.65 Td (See Note2, "Significant ) Tj ET Q q 0 0 0 rg BT 175.79 185.65 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 77.00 173.65 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 77.00 161.65 Td (share.) 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 50 771.2669921875 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 endstream endobj 79 0 obj <>] /Rotate 0 /Contents 80 0 R>> endobj 80 0 obj <> stream 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 50.00 742.25 Td (ITEM 7.MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 246.14 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 269.76 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 297.17 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 335.42 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 394.04 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 457.39 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 513.98 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 542.23 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 730.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.25 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 50.00 698.25 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 50.00 686.25 Td (Data" in this annual report. ) Tj ET Q q 0 0 0 rg BT 160.54 686.25 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 50.00 674.25 Td (actual results could dif) Tj ET Q q 0 0 0 rg BT 140.63 674.25 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 50.00 662.25 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 50.00 650.25 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 50.00 638.25 Td (Looking Statements.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (KEY) Tj ET Q q 0 0 0 rg BT 71.30 618.25 Td ( PERFORMANCE INDICA) Tj ET Q q 0 0 0 rg BT 191.11 618.25 Td (T) Tj ET Q q 0 0 0 rg BT 197.60 618.25 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 598.25 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 50.00 586.25 Td (management to assess our financial performance. Some of the indicators are non-GAAP) Tj ET Q q 0 0 0 rg BT 402.29 586.25 Td ( measures and should not be considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 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 50.00 562.25 Td (accepted accounting principles.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 511.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 511.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 511.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 481.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 481.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 481.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 451.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 451.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 451.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 414.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 414.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 414.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 414.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 414.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 414.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 384.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 384.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 384.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 384.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 384.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 384.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 354.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 354.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 354.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 354.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 354.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 354.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 324.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.50 324.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.50 324.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.50 324.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 324.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 324.75 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 362.5 537.75 m 422.5 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422.5 537.75 m 426.5 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 537.75 m 486.5 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 537.75 m 490.5 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 537.75 m 550.5 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 537.75 m 422.5 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362.5 524.75 m 422.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 524.75 m 486.5 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 524.75 m 550.5 524.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 206.00 542.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.00 541.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 528.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 528.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.00 528.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 528.98 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 515.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.20 515.98 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 501.42 Td (Bookings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 501.42 Td (890,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.00 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 501.42 Td (767,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 501.42 Td (773,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 486.42 Td (Book-to-bill ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 486.42 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 486.42 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 486.42 Td (1.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 471.42 Td (Net SalesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 471.42 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.00 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 471.42 Td (571,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 471.42 Td (548,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 456.42 Td (Net SalesCommercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 456.42 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.00 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 456.42 Td (238,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 456.42 Td (220,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 441.42 Td (Gross Profit as a Percentage of Net SalesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 441.42 Td (42.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 441.42 Td (41.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 441.42 Td (43.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 427.32 Td (Gross Profit as a Percentage of Net SalesCommercial Lasers and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 417.37 Td (Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 419.42 Td (33.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 419.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 419.42 Td (36.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 419.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 419.42 Td (36.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 419.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 404.42 Td (Research and Development Expenses as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 404.42 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 404.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 404.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 404.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 404.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 404.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 389.42 Td (Income Before Income Taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 389.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 389.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.00 389.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 389.42 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 389.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 389.42 Td (90,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 374.42 Td (Net Cash Provided by Operating Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 374.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 374.42 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.00 374.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 374.42 Td (115,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 374.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 374.42 Td (64,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 359.42 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 359.42 Td (62.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 359.42 Td (60.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 359.42 Td (67.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 344.42 Td (Annualized Fourth Quarter Inventory Turns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 344.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 344.42 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 344.42 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 329.42 Td (Capital Spending as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 329.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 329.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 329.42 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 329.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 329.42 Td (4.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 329.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 314.42 Td (Net Income as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 314.42 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 314.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 314.42 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 314.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 314.42 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 314.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 299.42 Td (Adjusted EBITDA as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 299.42 Td (17.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 299.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 299.42 Td (17.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 299.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 299.42 Td (18.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 299.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 275.25 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 50.00 255.25 Td (Bookings and Book-to-Bill Ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 235.25 Td (Bookings represent orders received during the current period for products and services to be provided pursuant to service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.25 Td (contracts. ) Tj ET Q q 0 0 0 rg BT 90.91 223.25 Td (While we generally have not experienced a significant rate of cancellation, bookings are generally cancelable by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.25 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 74.00 191.25 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 407.62 191.25 Td (This is an indication of the strength of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 179.25 Td (our business but can sometimes be impacted by a single lar) Tj ET Q q 0 0 0 rg BT 286.43 179.25 Td (ge order) Tj ET Q q 0 0 0 rg BT 318.92 179.25 Td (. ) Tj ET Q q 0 0 0 rg BT 323.36 179.25 Td (A) Tj ET Q q 0 0 0 rg BT 330.03 179.25 Td ( ratio greater than 1.0 indicates that demand for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 167.25 Td (products is greater than what we supply in the year whereas a ratio of less than 1.0 indicates that demand for our products is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 155.25 Td (less than what we supply in the year) Tj ET Q q 0 0 0 rg BT 194.14 155.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 135.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 135.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 135.25 Td ( bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.31 135.25 Td (16.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.14 135.25 Td ( from bookings in fiscal 2013 and our book-to-bill ratio increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.74 135.25 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.24 135.25 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.25 Td (fiscal 2013 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.93 123.25 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.43 123.25 Td ( in fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 186.19 123.25 Td (The bookings increase included increases in the microelectronics \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.20 123.25 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.53 123.25 Td (\) and OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.25 Td (components and instrumentation \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.36 111.25 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.69 111.25 Td (\) markets partially of) Tj ET Q q 0 0 0 rg BT 288.65 111.25 Td (fset by decreases in the materials processing \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.64 111.25 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.97 111.25 Td (\) and scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 99.25 Td (\() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.33 99.25 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.66 99.25 Td (\) markets. ) Tj ET Q q 0 0 0 rg BT 108.59 99.25 Td (Although fiscal 2014 bookings increased, bookings in the fourth quarter of fiscal 2014 decreased from the third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.25 Td (quarter of fiscal 2014, with decreases in the 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 75.25 Td (markets partially of) Tj ET Q q 0 0 0 rg BT 128.13 75.25 Td (fset by increases in the scientific market. ) 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 50 771.2669921875 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 endstream endobj 81 0 obj <>] /Rotate 0 /Contents 82 0 R>> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (Fiscal 2013 bookings decreased slightly from bookings in fiscal 2012 and our book-to-bill ratio decreased from 1.01 in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (fiscal 2012 to 0.95 in fiscal 2013. Bookings decreased 0.8% from fiscal 2012, with decreases in the microelectronics \(10%\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (scientific \(4%\) markets partially of) Tj ET Q q 0 0 0 rg BT 189.77 718.10 Td (fset by increases in the materials processing \(18%\) and OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (instrumentation \(13%\) markets. Compared to the third quarter of fiscal 2013, decreases in bookings in the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (fiscal 2013 in the materials processing market were partially of) Tj ET Q q 0 0 0 rg BT 302.23 694.10 Td (fset by increases in the OEM components and instrumentation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (microelectronics and scientific markets. ) 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 50 660.7669921875 m 117.7490234375 660.7669921875 l s q 0 0 0 rg BT 50.00 662.10 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.43 642.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.43 642.10 Td ( bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.36 642.10 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.69 642.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.73 642.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.73 642.10 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 50.00 630.10 Td (1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 630.10 Td (, bookings in the fourth quarter of fiscal 2014 decreased 37% from the third quarter of fiscal 2014 primarily due to timing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (of lar) Tj ET Q q 0 0 0 rg BT 71.20 618.10 Td (ge excimer laser annealing orders for the flat panel display market and lower orders in the semiconductor capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (equipment market due to timing of lar) Tj ET Q q 0 0 0 rg BT 202.00 606.10 Td (ge service orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 586.10 Td (Flat panel display orders for fiscal 2014 increased 78% from orders in fiscal 2013, but fourth quarter fiscal 2014 orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (were lower primarily due to timing of lar) Tj ET Q q 0 0 0 rg BT 213.94 574.10 Td (ge excimer laser annealing orders. In the second quarter of fiscal 2014, we received a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (lar) Tj ET Q q 0 0 0 rg BT 60.37 562.10 Td (ge order from one customer for excimer laser annealing systems for low-temperature polycrystalline silicon \(L) Tj ET Q q 0 0 0 rg BT 502.07 562.10 Td (TPS\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (processing, some of which shipped during the fourth quarter of fiscal 2014 with the majority scheduled for shipment during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (fiscal 2015. Our development ef) Tj ET Q q 0 0 0 rg BT 178.95 538.10 Td (forts on the Linebeam 1500 are progressing as planned and we expect to make our first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (shipment towards the end of calendar 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 506.10 Td (The flat panel display market has been buoyed by successful product launches and share gains for Chinese smartphone ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (manufacturers, which have led to increased demand for L) Tj ET Q q 0 0 0 rg BT 279.26 494.10 Td (TPS LCD displays. Both OLED and high definition LCD displays are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (manufactured with the use of our excimer laser annealing \(ELA\) tools. Price competition at the panel manufacturer level is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (fierce. Given these dynamics, customers are inquiring more about Linebeam systems lar) Tj ET Q q 0 0 0 rg BT 402.76 470.10 Td (ger than 750 millimeter to reduce the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (cost of the panel. ) Tj ET Q q 0 0 0 rg BT 120.63 458.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.27 458.10 Td (e have also worked with our vendors to extend the lifetime of certain high cost components in the laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (dischar) Tj ET Q q 0 0 0 rg BT 78.70 446.10 Td (ge units \(LDU\) used in our ELA) Tj ET Q q 0 0 0 rg BT 208.12 446.10 Td ( tools.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 426.10 Td (During the fourth quarter of fiscal 2014, we completed delivery of approximately $10 million of lasers used for sapphire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (processing and we do not know when, or whether) Tj ET Q q 0 0 0 rg BT 248.16 414.10 Td (, we will receive any follow-on orders. ) Tj ET Q q 0 0 0 rg BT 405.43 414.10 Td (W) Tj ET Q q 0 0 0 rg BT 414.07 414.10 Td (e expect continued fluctuations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (order volumes on a quarterly basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.10 Td (Advanced packaging \("API"\) orders decreased for the full fiscal year) Tj ET Q q 0 0 0 rg BT 347.70 382.10 Td (, but increased from orders in the third quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (fiscal 2014 as the advanced packaging market is following trends in consumer electronics. PCB vendors in the supply chains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (for ) Tj ET Q q 0 0 0 rg BT 63.61 358.10 Td (Apple and Chinese handset manufacturers have reported high utilization rates, which has led to modest order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (improvement for packaging lasers in the fourth quarter) Tj ET Q q 0 0 0 rg BT 268.54 346.10 Td (. Decreased inventory levels at key OEMs should stimulate orders in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (second or third quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 203.11 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 211.74 334.10 Td (e have also introduced two new platforms at the recent ) Tj ET Q q 0 0 0 rg BT 432.59 334.10 Td (T) Tj ET Q q 0 0 0 rg BT 438.00 334.10 Td (aiwan Printed Circuit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Association printed circuit board show) Tj ET Q q 0 0 0 rg BT 204.32 322.10 Td (. ) Tj ET Q q 0 0 0 rg BT 209.14 322.10 Td (The ) Tj ET Q q 0 0 0 rg BT 226.63 322.10 Td (A) Tj ET Q q 0 0 0 rg BT 233.11 322.10 Td (via-NX represents a price-performance breakthrough and should enable market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (share gains in via drilling in silicon, flex circuit packaging and other emer) Tj ET Q q 0 0 0 rg BT 345.56 310.10 Td (ging applications. In addition, we launched a new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 63.89 296.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.14 298.10 Td ( laser platform called the Hornet, which has specific performance and design attributes for the via drilling market, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (allowing integrators to eliminate acousto-optic modulators \(AOM\) from their designs saving significant cost and increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (available laser power and tool throughput. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.10 Td (Orders from semiconductor capital equipment OEMs increased 13% for fiscal 2014, but were lower in the fourth quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (of fiscal 2014 compared to the prior quarter due to high service bookings consistent with high fab utilization rates reported by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (industry experts in the third quarter of fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 253.66 230.10 Td (While demand from the semiconductor capital expenditure market remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (strong, we have seen some significant swings over the last few quarters due to the timing of lar) Tj ET Q q 0 0 0 rg BT 429.72 218.10 Td (ge service bookings. ) Tj ET Q q 0 0 0 rg BT 513.59 218.10 Td (According ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (to SEMI) Tj ET Q q 0 0 0 rg BT 86.95 206.10 Td (s worldwide forecast in ) Tj ET Q q 0 0 0 rg BT 182.48 206.10 Td (August 2014, the near) Tj ET Q q 0 0 0 rg BT 270.60 206.10 Td (-term outlook through 2015 is robust with projected capital investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (reaching record levels. ) Tj ET Q q 0 0 0 rg BT 143.11 194.10 Td (While some industry experts have suggested a cyclical slowdown, we believe capital investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (announcements for leading node from Intel and Samsung coupled with the march towards 3D memory indicates increasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (demand. ) Tj ET Q q 0 0 0 rg BT 88.97 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.61 170.10 Td (e are very well positioned at the leading edge of this market and should benefit from any investments in 3D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (memory) Tj ET Q q 0 0 0 rg BT 82.68 158.10 Td (. ) Tj ET Q q 0 0 0 rg BT 89.62 158.10 Td (As always, utilization rates for legacy nodes will be a factor as they drive service demand and capacity expansion. ) 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 50 136.76699218750002 m 208.037109375 136.76699218750002 l s q 0 0 0 rg BT 50.00 138.10 Td (OEM Components and Instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 118.10 Td (Bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.27 118.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.27 118.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.03 118.10 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.36 118.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.95 118.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.95 118.10 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 470.84 118.10 Td (1.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.34 118.10 Td (. However) Tj ET Q q 0 0 0 rg BT 529.59 118.10 Td (, orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (in the fourth quarter of fiscal 2014 decreased from record-setting orders in the third quarter of fiscal 2014 due to the timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (volume orders from medical OEM accounts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 74.10 Td (Medical OEM orders increased significantly in fiscal 2014, but decreased sequentially from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (2014. In the third quarter of fiscal 2014, one of our major LASIK customers placed a lar) Tj ET Q q 0 0 0 rg BT 403.05 62.10 Td (ge multi-year order) Tj ET Q q 0 0 0 rg BT 479.83 62.10 Td (, which explains the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (sequential decline, and the cataract market demand was high. In addition, dental bookings and demand for ophthalmic lasers ) 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 50 771.2669921875 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 endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (were strong. ) Tj ET Q q 0 0 0 rg BT 101.75 742.10 Td (These orders signal confidence in both patient-pay and insurance-covered procedures. ) Tj ET Q q 0 0 0 rg BT 447.82 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 456.46 742.10 Td (e expect continued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (growth for cataract and dental applications over the next few years and are developing new products in support of this. Medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (OEM accounts are seeing steady to improving demand, especially in the ophthalmic space for vision correction and disease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (management. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 686.10 Td (Bioinstrumentation orders were up modestly on a sequential basis with customers in flow cytometry and DNA) Tj ET Q q 0 0 0 rg BT 515.31 686.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (sequencing managing their inventory positions. Flow cytometry and microscopy applications drove most of the OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (instrumentation bookings, which is consistent with trends over the past few years. ) Tj ET Q q 0 0 0 rg BT 379.76 662.10 Td (The cytometry market is seeing an influx of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (products from Chinese manufacturers, whose market share is small today) Tj ET Q q 0 0 0 rg BT 342.60 650.10 Td (, but could grow substantially in the next 3-5 years as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (they broaden their reagent of) Tj ET Q q 0 0 0 rg BT 165.32 638.10 Td (ferings, advance their cytometers and address both the high-end and budget markets. ) Tj ET Q q 0 0 0 rg BT 506.14 638.10 Td (This is one of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (the reasons we developed the BioRay product, which of) Tj ET Q q 0 0 0 rg BT 283.17 626.10 Td (fers performance advantages and a competitive cost of ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (compared to light-emitting diodes \(LEDs\). ) Tj ET Q q 0 0 0 rg BT 223.12 614.10 Td (W) Tj ET Q q 0 0 0 rg BT 231.75 614.10 Td (e are also pursuing business in rapid DNA) Tj ET Q q 0 0 0 rg BT 400.34 614.10 Td ( sequencing with our high-performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (HOPS platform for use in a diverse range of applications from agriculture to cancer gene analysis.) 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 50 580.7669921875 m 133.59375 580.7669921875 l s q 0 0 0 rg BT 50.00 582.10 Td (Materials Processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 562.10 Td (Annual bookings decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.02 562.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.35 562.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.95 562.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.95 562.10 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.54 562.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.54 562.10 Td ('s book-to-bill ratio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.88 562.10 Td (1.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.38 562.10 Td (. Bookings in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.80 550.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.80 550.10 Td ( were strong although they decreased from the prior quarter due to the receipt of a number of annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (orders in the third quarter of fiscal 2014 across the materials processing market. ) Tj ET Q q 0 0 0 rg BT 371.38 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 380.02 538.10 Td (e received volume orders in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (quarter of fiscal 2014 from a variety of applications including: \(1\) short-pulse lasers for non-thermal processing, \(2\) CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 529.86 524.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.11 526.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (pulsed UV) Tj ET Q q 0 0 0 rg BT 92.87 514.10 Td ( lasers for non-metal additive manufacturing, and \(3\) semiconductor lasers for Chinese laser manufacturers. ) Tj ET Q q 0 0 0 rg BT 525.87 514.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (growth of semiconductor laser sales in China is consistent with vertical integration at the low-end of the marking and engraving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (market. ) Tj ET Q q 0 0 0 rg BT 85.08 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 93.72 490.10 Td (e have seen a similar trend in low-power CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 272.55 488.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.80 490.10 Td ( marking for several years. Incidentally) Tj ET Q q 0 0 0 rg BT 432.31 490.10 Td (, this trend is not limited to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (China as U.S. and European manufacturers have taken similar steps to maintain financial competitiveness.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 458.10 Td (Our ef) Tj ET Q q 0 0 0 rg BT 97.64 458.10 Td (forts in the kilowatt space have had mixed results. Our multi-kilowatt direct diode portfolio has had very high year) Tj ET Q q 0 0 0 rg BT 555.93 458.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (over) Tj ET Q q 0 0 0 rg BT 67.57 446.10 Td (-year growth due to partnerships with welding and cladding companies. Since the release of an updated product line, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (laser manufacturing tool business has also had very high growth and we expect this growth to continue with the release of new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (products tar) Tj ET Q q 0 0 0 rg BT 97.30 422.10 Td (geting the thin metal cutting market. ) Tj ET Q q 0 0 0 rg BT 245.14 422.10 Td (These positive results are of) Tj ET Q q 0 0 0 rg BT 357.15 422.10 Td (fset by disappointing ones in the fiber laser space ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (where we failed to reach our $10 million sales objective for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 339.72 410.10 Td (The time from design win to volume has been slower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (than expected and it has taken longer than planned to launch the new multi-kilowatt platform, which addresses the highest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (demand point of the market. ) Tj ET Q q 0 0 0 rg BT 165.34 386.10 Td (W) Tj ET Q q 0 0 0 rg BT 173.98 386.10 Td (e are on track to release the higher power products in fiscal 2015.) 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 50 364.7669921875 m 198.57421875 364.7669921875 l s q 0 0 0 rg BT 50.00 366.10 Td (Scientific and Government Programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 346.10 Td (Although fiscal 2014 orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.34 346.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.67 346.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.71 346.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.71 346.10 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 519.16 346.10 Td (1.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.66 346.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (Orders in the fourth quarter of fiscal 2014 increased significantly from the third quarter of fiscal 2014) 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 456.53 334.10 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 459.03 334.10 Td (as the U.S. market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (delivered a typically strong performance in the fourth quarter of fiscal 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 302.10 Td (The overall scientific market is stable, although there are several underlying trends. ) Tj ET Q q 0 0 0 rg BT 407.81 302.10 Td (The U.S. market delivered a typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (strong performance in the fourth quarter and anchored worldwide bookings. China and Korea maintained their high investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (rate across multiple applications as opposed to Europe and Japan, which both lagged either due to timing issues or funding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (initiatives. In Japan, life sciences funding is outpacing physical sciences consistent with policy statements, but spending in life ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (sciences has been essentially flat for most of fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 279.47 254.10 Td (The EU and the U.S. both launched major programs to study the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (human brain. ) Tj ET Q q 0 0 0 rg BT 105.08 242.10 Td (The U.S. BRAIN project is trying to develop a deeper understanding of how the brain works through the study of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (clusters of hundreds or thousands of neurons, involving many experimental techniques including laser imaging. ) Tj ET Q q 0 0 0 rg BT 498.61 230.10 Td (The project is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (gaining momentum and there is hope for a two or three-fold expansion of the current annual $100 million budget, enabling the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (development of novel techniques to advance the studies. Europe) Tj ET Q q 0 0 0 rg BT 309.64 206.10 Td (s Human Brain Project \(HBP\) is attempting to create a lar) Tj ET Q q 0 0 0 rg BT 540.51 206.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (scale map of the neural network through computational analysis, which has disenfranchised many experimental neuroscientists. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 182.10 Td (e do not anticipate any significant funding changes for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 327.82 182.10 Td (W) Tj ET Q q 0 0 0 rg BT 336.46 182.10 Td (e will be focusing on market share gains through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (industrialized scientific product strategy as well as the introduction of several new of) Tj ET Q q 0 0 0 rg BT 389.71 170.10 Td (ferings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 130.10 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 455.80 130.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 130.10 Td ( decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.21 130.10 Td (1.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.04 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.09 118.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.09 118.10 Td (. Net sales for fiscal 2013 increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.04 118.10 Td (5.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.87 118.10 Td ( from fiscal 2012. For a description of the reasons for changes in net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (sales refer to the "Results of Operations" section below) Tj ET Q q 0 0 0 rg BT 270.23 106.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 62.04 86.10 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.69 86.10 Td (ofit as a Per) Tj ET Q q 0 0 0 rg BT 138.32 86.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 66.10 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 50.00 54.10 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 326.86 54.10 Td (42.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.69 54.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.62 54.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.62 54.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.06 54.10 Td (41.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.89 54.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.82 54.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.82 54.10 Td ( and ) 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 50 771.2669921875 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 endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.85 742.10 Td (43.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.68 742.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.62 742.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.62 742.10 Td (. Gross profit percentage for CLC decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.27 742.10 Td (33.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.10 742.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.03 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.03 742.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.47 742.10 Td (36.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.30 742.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 730.10 Td ( and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.38 730.10 Td (36.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.21 730.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.14 730.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.14 730.10 Td (. For a description of the reasons for changes in gross profit refer to the "Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Operations" section below) Tj ET Q q 0 0 0 rg BT 155.07 718.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 698.10 Td (ch and Development as a Per) Tj ET Q q 0 0 0 rg BT 202.67 698.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 678.10 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 50.00 666.10 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 50.00 654.10 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 512.10 654.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.93 654.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 642.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.76 642.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.76 642.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.20 642.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.03 642.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.97 642.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.97 642.10 Td (. For a description of the reasons for changes in R&D spending refer to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td ("Results of Operations" section below) Tj ET Q q 0 0 0 rg BT 201.93 630.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Net Cash Pr) Tj ET Q q 0 0 0 rg BT 102.03 610.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 191.77 610.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.10 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 50.00 578.10 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 50.00 566.10 Td (inventory purchases to run our business. ) Tj ET Q q 0 0 0 rg BT 213.40 566.10 Td (W) Tj ET Q q 0 0 0 rg BT 222.04 566.10 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 50.00 554.10 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 50.00 542.10 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 403.26 542.10 Td (Activities refer to the "Liquidity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (Capital Resources" section below) Tj ET Q q 0 0 0 rg BT 183.68 530.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 490.10 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 50.00 478.10 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 50.00 466.10 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 50.00 454.10 Td (capital availability) Tj ET Q q 0 0 0 rg BT 123.49 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 128.31 454.10 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 50.00 442.10 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 50.00 430.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 430.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.75 430.10 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.25 430.10 Td (days from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.68 430.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.68 430.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.46 430.10 Td (62.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.96 430.10 Td (days. ) Tj ET Q q 0 0 0 rg BT 270.61 430.10 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 50.00 418.10 Td (concentration of sales with longer payment terms particularly in ) Tj ET Q q 0 0 0 rg BT 307.98 418.10 Td (Asia and a higher concentration of sales in the last month of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (the fiscal year) Tj ET Q q 0 0 0 rg BT 105.53 406.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (Annualized Fourth Quarter) Tj ET Q q 0 0 0 rg BT 168.71 386.10 Td ( Inventory ) Tj ET Q q 0 0 0 rg BT 215.75 386.10 Td (T) Tj ET Q q 0 0 0 rg BT 221.50 386.10 Td (urns) 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 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 50.00 354.10 Td (by net inventories at the end of the fourth quarter) Tj ET Q q 0 0 0 rg BT 245.77 354.10 Td (. ) Tj ET Q q 0 0 0 rg BT 250.59 354.10 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 50.00 342.10 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 501.47 342.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.29 342.10 Td (The more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (money we have tied up in inventory) Tj ET Q q 0 0 0 rg BT 193.20 330.10 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 50.00 318.10 Td (marketing and other activities to grow our business. Our annualized inventory turns for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.18 318.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.18 318.10 Td ( decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.87 318.10 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.37 318.10 Td (turns from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 306.10 Td ( turns in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.93 306.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.93 306.10 Td ( primarily due to timing of inventory levels to support the lar) Tj ET Q q 0 0 0 rg BT 385.32 306.10 Td (ge annealing laser systems partially of) Tj ET Q q 0 0 0 rg BT 538.14 306.10 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (by lower service inventory levels and the impact of foreign exchange rates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (Capital Spending as a Per) Tj ET Q q 0 0 0 rg BT 160.39 274.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.10 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 50.00 242.10 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 50.00 230.10 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 50.00 218.10 Td (as this assists management in measuring our cash flows, net of capital expenditures. Our capital spending percentage increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.28 206.10 Td (2.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.11 206.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.04 206.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.04 206.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.48 206.10 Td (2.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.31 206.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.24 206.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.24 206.10 Td ( and decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.54 206.10 Td (4.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.37 206.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 206.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.30 206.10 Td (. ) Tj ET Q q 0 0 0 rg BT 406.12 206.10 Td (The fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.32 206.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.32 206.10 Td ( increase was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (due to higher purchases of production-related assets to support new product introductions and growth in ) Tj ET Q q 0 0 0 rg BT 467.96 194.10 Td (Asia, particularly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (support service and refurbishment capacity in Korea and China. ) Tj ET Q q 0 0 0 rg BT 307.51 182.10 Td (The fiscal 2013 decrease was primarily due to investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (made in fiscal 2012 for manufacturing and refurbishment capacity in Germany and Korea. ) Tj ET Q q 0 0 0 rg BT 413.57 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 422.21 170.10 Td (e expect capital spending for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (2015 to increase to approximately 4.0% of net sales due to rollover of forecasted spending that did not occur in fiscal 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (investments in new capacity) Tj ET Q q 0 0 0 rg BT 162.37 146.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 129.19 126.10 Td ( as a Per) Tj ET Q q 0 0 0 rg BT 165.39 126.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 106.10 Td (e define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 187.50 106.10 Td ( as operating income adjusted for depreciation, amortization, stock compensation expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (major restructuring costs and certain other non-operating income and expense items. Key initiatives to reach our goals for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 86.11 82.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 249.41 82.10 Td (Asian manufacturing locations, rationalizing our supply chain and continued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (leveraging of our infrastructure.) 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 50 771.2669921875 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 endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream 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 72.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 742.10 Td (e utilize a number of dif) Tj ET Q q 0 0 0 rg BT 177.31 742.10 Td (ferent financial measures, both GAAP) Tj ET Q q 0 0 0 rg BT 329.95 742.10 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 393.83 742.10 Td (, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 502.43 742.10 Td ( as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 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 50.00 718.10 Td (forecasting and planning future periods. ) Tj ET Q q 0 0 0 rg BT 211.99 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 220.63 718.10 Td (e consider the use of non-GAAP) Tj ET Q q 0 0 0 rg BT 350.51 718.10 Td ( financial measures helpful in assessing our current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (financial performance and ongoing operations. ) Tj ET Q q 0 0 0 rg BT 239.19 706.10 Td (While we use non-GAAP) Tj ET Q q 0 0 0 rg BT 341.30 706.10 Td ( financial measures as a tool to enhance our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 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 523.05 694.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (superior to, the information provided by GAAP) Tj ET Q q 0 0 0 rg BT 239.88 682.10 Td ( financial measures. ) Tj ET Q q 0 0 0 rg BT 321.88 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 330.52 682.10 Td (e provide adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 442.44 682.10 Td ( in order to enhance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (investors' understanding of our ongoing operations. ) Tj ET Q q 0 0 0 rg BT 257.98 670.10 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 72.50 648.10 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 464.88 648.10 Td ( as a percentage of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 636.10 Td (sales:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 72.25 589.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.25 589.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.25 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.25 589.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.25 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.25 589.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.25 559.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.25 559.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.25 559.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.25 559.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.25 559.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.25 559.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.25 529.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.25 529.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.25 529.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.25 529.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.25 529.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.25 529.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.25 499.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.25 499.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.25 499.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.25 499.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.25 499.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.25 499.60 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 381.25 602.6 m 438.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.25 602.6 m 442.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.25 602.6 m 500.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.25 602.6 m 504.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.25 602.6 m 561.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.25 602.6 m 438.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.25 589.6 m 438.25 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.25 602.6 m 500.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.25 589.6 m 500.25 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.25 602.6 m 561.25 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.25 589.6 m 561.25 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.25 484.6 m 438.25 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.25 470.6 m 438.25 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.25 468.6 m 438.25 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.25 484.6 m 500.25 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.25 470.6 m 500.25 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.25 468.6 m 500.25 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.25 484.6 m 561.25 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.25 470.6 m 561.25 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.25 468.6 m 561.25 468.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.25 607.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.75 606.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 74.75 593.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.25 593.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.75 593.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.25 593.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 579.27 Td (Net income as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.90 579.27 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 579.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.90 579.27 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 579.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 579.27 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 579.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 564.27 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.90 564.27 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 564.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.90 564.27 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 564.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 564.27 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 564.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 549.27 Td (Interest and other income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.90 549.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 549.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.90 549.27 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 549.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 549.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 549.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 534.27 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.90 534.27 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 534.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.90 534.27 Td (4.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 534.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 534.27 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 534.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 519.27 Td (Purchase accounting step up) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.40 519.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 519.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.90 519.27 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 519.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.40 519.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 519.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 504.27 Td (Restructuring and other one-time charges) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.40 504.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 504.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.40 504.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 504.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 504.27 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 504.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 489.27 Td (Stock based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.90 489.27 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 489.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.90 489.27 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 489.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 489.27 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 489.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.75 474.27 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.90 474.27 Td (17.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 474.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.90 474.27 Td (17.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.40 474.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.90 474.27 Td (18.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.40 474.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 116.50 450.10 Td ( EVENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 410.10 Td (On December 20, 2012, we acquired all of the outstanding shares of Lumera for approximately $51.5 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (transaction costs. Lumera manufactures ultrafast solid state lasers for microelectronics, OEM medical and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (applications. ) Tj ET Q q 0 0 0 rg BT 103.14 386.10 Td (These assets and liabilities have been included in our Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 362.10 Td (On October 30, 2012, we acquired all of the outstanding shares of Innolight for approximately $18.3 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (transaction costs. Innolight provides a core technology building block for an emer) Tj ET Q q 0 0 0 rg BT 377.51 350.10 Td (ging class of commercial, sub-nanosecond ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (lasers for microelectronics manufacturing and its semiconductor) Tj ET Q q 0 0 0 rg BT 306.93 338.10 Td (-based architecture delivers pulsed output that can be amplified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (by conventional or fiber amplifiers to ultimately deliver infrared, green or ultraviolet light capable of processing a range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (materials. ) Tj ET Q q 0 0 0 rg BT 91.47 314.10 Td (These assets and liabilities have been included in our Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 290.10 Td (On July 23, 2012, we acquired all of the outstanding shares of MiDAZ Lasers Limited "Midaz" for $3.8 million in cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (excluding transaction fees. Midaz was a technology based-acquisition and we intend to utilize the acquired technology in low ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (cost, compact pulsed solid state lasers. ) Tj ET Q q 0 0 0 rg BT 206.45 266.10 Td (These assets and liabilities have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (Stock Repur) Tj ET Q q 0 0 0 rg BT 103.43 230.10 Td (chases and Stock Dividend) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 210.10 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 210.10 Td (August25,201) Tj ET Q q 0 0 0 rg BT 147.69 210.10 Td (1, we announced that the Board of Directors had authorized the repurchase of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.13 210.10 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.02 210.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (our common stock. During fiscal 201) Tj ET Q q 0 0 0 rg BT 199.05 198.10 Td (1, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.55 198.10 Td (586,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.05 198.10 Td ( shares of outstanding common stock at an average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.32 186.10 Td ($42.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.82 186.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.38 186.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.28 186.10 Td ( excluding expenses. During fiscal 2012, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (543,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 174.10 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 322.14 174.10 Td ($45.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.64 174.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.21 174.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.10 174.10 Td (, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 142.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 142.10 Td (October4, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.93 142.10 Td (, the Board of Directors authorized a buyback program to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.38 142.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.27 142.10 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (common stock. ) Tj ET Q q 0 0 0 rg BT 113.42 130.10 Td (The program was authorized for 12 months from the date of authorization. No shares were purchased under this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 98.10 Td (On July 25, 2014, the Board of Directors authorized a buyback program whereby we are authorized to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 86.10 Td ( of our common stock from time to time through July 31, 2015. No shares were purchased under this program in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (fiscal 2014.) 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 50 771.2669921875 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 endstream endobj 89 0 obj <>] /Rotate 0 /Contents 90 0 R>> endobj 90 0 obj <> stream 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 72.50 742.10 Td (On December 10, 2012, we announced that the Board of Directors approved a $1.00 per share special cash dividend on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (our outstanding common stock payable on December 27, 2012 to stockholders of record on December 19, 2012, resulting in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (payment of $24.0 million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (RESUL) Tj ET Q q 0 0 0 rg BT 82.43 694.10 Td (TS OF) Tj ET Q q 0 0 0 rg BT 110.67 694.10 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 147.43 694.10 Td (TIONSFISCAL) Tj ET Q q 0 0 0 rg BT 224.68 694.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.18 694.10 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.18 694.10 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.18 694.10 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.18 694.10 Td ( ) Tj ET Q q 0 0 0 rg BT 274.13 694.10 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.29 694.10 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.29 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (Fiscal 2014, 2013 and 2012 consist of 52weeks. Note that fiscal 2015 will consist of 53 weeks.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (Consolidated Summary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 634.10 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 50.00 622.10 Td (reflected in our consolidated statement of operations:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 574.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 574.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 574.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 574.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 574.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 574.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 546.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 546.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 546.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 546.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 518.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 518.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 518.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 518.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 490.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 490.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 490.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 490.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 462.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 462.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 462.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 462.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 462.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 434.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 434.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 434.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 434.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 434.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 434.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 406.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 406.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 406.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 406.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 406.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 406.60 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 312.5 598.6 m 382.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 598.6 m 386.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 598.6 m 456.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 598.6 m 460.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 598.6 m 530.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 586.6 m 382.5 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 586.6 m 456.5 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 586.6 m 530.5 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 546.6 m 382.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 546.6 m 456.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 546.6 m 530.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 546.6 m 382.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 546.6 m 456.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 546.6 m 530.5 546.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 532.6 m 382.5 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 532.6 m 456.5 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 532.6 m 530.5 532.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 476.6 m 382.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 476.6 m 456.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 476.6 m 530.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 476.6 m 382.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 476.6 m 456.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 476.6 m 530.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 462.6 m 382.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 462.6 m 456.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 462.6 m 530.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 434.6 m 382.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 434.6 m 456.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 434.6 m 530.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 434.6 m 382.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 434.6 m 456.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 434.6 m 530.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 406.6 m 382.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 406.6 m 456.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 406.6 m 530.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 406.6 m 382.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 393.6 m 382.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 391.6 m 382.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 406.6 m 456.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 393.6 m 456.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 391.6 m 456.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 406.6 m 530.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 393.6 m 530.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 391.6 m 530.5 391.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 602.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.00 602.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 181.00 590.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.00 590.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.00 590.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 590.68 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 578.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.60 578.68 Td (\(As a percentage of net sales\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 565.28 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 565.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 565.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.80 565.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 565.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.15 565.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 565.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 551.28 Td (Cost of sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 551.17 Td (60.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 551.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 551.17 Td (60.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 551.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 551.17 Td (58.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 551.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 537.28 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 537.17 Td (39.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 537.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 537.17 Td (39.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 537.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 537.17 Td (41.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 537.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 523.28 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 509.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 509.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 509.17 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 509.17 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 495.17 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 495.17 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 495.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 495.17 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 495.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 495.17 Td (18.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 495.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 481.17 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 481.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 481.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 481.17 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 481.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 481.17 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 481.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 467.17 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 467.17 Td (29.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 467.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 467.17 Td (29.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 467.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 467.17 Td (29.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 467.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 453.28 Td (Income from operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 453.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 453.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 453.17 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 453.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 453.17 Td (11.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 453.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 439.28 Td (Other income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 439.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 439.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.45 439.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.30 439.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 439.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 439.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 425.28 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 425.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 425.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 425.17 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 425.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.15 425.17 Td (11.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 425.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 411.17 Td (Provision for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 411.17 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 411.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 411.17 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 411.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 411.17 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 411.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 397.28 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 397.17 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 397.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 397.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 373.10 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 50.00 361.10 Td (fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.75 361.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 361.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.75 361.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.75 361.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.19 361.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.19 361.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (Net Sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 321.10 Td (Market ) Tj ET Q q 0 0 0 rg BT 84.16 321.10 Td (Application) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 301.10 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 50.00 289.10 Td (sales by market application \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 237.60 121.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 237.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 237.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 237.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 237.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 237.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 237.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 237.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 207.60 121.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 207.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 207.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 207.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 207.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 207.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 207.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 207.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 207.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 207.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 207.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 207.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 157.60 121.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 171.50 157.60 57.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.50 157.60 4.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.50 157.60 57.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.50 157.60 4.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.50 157.60 57.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 350.50 157.60 4.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 354.50 157.60 57.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 157.60 4.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 157.60 57.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 157.60 4.00 -27.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 157.60 57.00 -27.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171.5 265.6 m 228.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228.5 265.6 m 232.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 265.6 m 289.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 265.6 m 350.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350.5 265.6 m 354.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 265.6 m 411.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 265.6 m 472.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 265.6 m 476.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 265.6 m 533.5 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171.5 237.60000000000002 m 228.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 237.60000000000002 m 289.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 237.60000000000002 m 350.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 237.60000000000002 m 411.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 237.60000000000002 m 472.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 237.60000000000002 m 533.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171.5 130.60000000000002 m 228.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 130.60000000000002 m 289.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 130.60000000000002 m 350.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 130.60000000000002 m 411.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 130.60000000000002 m 472.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 130.60000000000002 m 533.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171.5 130.60000000000002 m 228.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171.5 116.60000000000002 m 228.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 171.5 114.60000000000002 m 228.5 114.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 130.60000000000002 m 289.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 116.60000000000002 m 289.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232.5 114.60000000000002 m 289.5 114.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 130.60000000000002 m 350.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 116.60000000000002 m 350.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293.5 114.60000000000002 m 350.5 114.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 130.60000000000002 m 411.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 116.60000000000002 m 411.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354.5 114.60000000000002 m 411.5 114.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 130.60000000000002 m 472.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 116.60000000000002 m 472.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 114.60000000000002 m 472.5 114.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 130.60000000000002 m 533.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 116.60000000000002 m 533.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 114.60000000000002 m 533.5 114.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 269.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 211.00 269.83 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.00 269.83 Td (Fiscal 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.00 269.83 Td (Fiscal 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 241.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.45 241.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 241.65 257.68 Td (Per) Tj ET Q q 0 0 0 rg BT 253.49 257.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 248.35 249.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.15 241.68 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.45 241.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.65 257.68 Td (Per) Tj ET Q q 0 0 0 rg BT 375.49 257.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.35 249.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.15 241.68 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.45 241.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.65 257.68 Td (Per) Tj ET Q q 0 0 0 rg BT 497.49 257.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.35 249.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 490.15 241.68 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 227.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.00 227.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 227.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 227.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 227.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 227.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.00 227.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 212.27 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.00 212.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.15 212.27 Td (384,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 212.27 Td (48.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.65 212.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 212.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 212.27 Td (416,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 212.27 Td (51.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 212.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 212.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 212.27 Td (373,696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 212.27 Td (48.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 212.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 197.27 Td (OEM components and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 187.27 Td (instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.15 187.27 Td (169,978) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 187.27 Td (21.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.65 187.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 187.27 Td (149,974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 187.27 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 187.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 187.27 Td (143,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 187.27 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 187.27 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 192.15 162.27 Td (118,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 162.27 Td (14.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.65 162.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 162.27 Td (121,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 162.27 Td (15.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 162.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 162.27 Td (108,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 162.27 Td (14.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 162.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 145.27 Td (Scientific and government) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 135.27 Td (programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.15 135.27 Td (121,472) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 135.27 Td (15.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.65 135.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 135.27 Td (121,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 135.27 Td (15.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 135.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 135.27 Td (142,997) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 135.27 Td (18.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 135.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.00 120.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.00 120.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.15 120.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 120.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.65 120.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 120.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 120.27 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 120.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 120.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 120.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 120.27 Td (769,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 120.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 120.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 96.10 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.99 96.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.99 96.10 Td (, net sales decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.05 96.10 Td ($15.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.95 96.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.78 96.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.11 96.10 Td (, compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.46 96.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.46 96.10 Td (, with sales decreases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 84.10 Td (microelectronics, materials processing and scientific and government programs markets partially of) Tj ET Q q 0 0 0 rg BT 447.74 84.10 Td (fset by increases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.10 Td (OEM components and instrumentation market.) 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 238.02 72.10 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 240.52 72.10 Td (Microelectronics sales decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.62 72.10 Td ($31.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.51 72.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.34 72.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.67 72.10 Td (, primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.10 Td (sales in flat panel display and advanced packaging applications partially of) Tj ET Q q 0 0 0 rg BT 349.16 60.10 Td (fset by higher sales in semiconductor applications.) 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 551.05 60.10 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 50.00 48.10 Td (Materials processing sales decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.38 48.10 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.28 48.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.11 48.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.44 48.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.20 48.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.20 48.10 Td ( primarily due to lower shipments for marking and ) 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 50 771.2669921875 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 endstream endobj 91 0 obj <>] /Rotate 0 /Contents 92 0 R>> endobj 92 0 obj <> stream 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 50.00 742.10 Td (non-metal drilling applications. ) Tj ET Q q 0 0 0 rg BT 178.13 742.10 Td (The decrease in scientific and government programs market sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.02 742.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.91 742.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.74 742.10 Td (0.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.57 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.76 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.76 730.10 Td ( was primarily due to lower demand for advanced research applications used by university and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (research groups. ) Tj ET Q q 0 0 0 rg BT 117.85 718.10 Td (The increase in the OEM components and instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.99 718.10 Td ($20.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.88 718.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.71 718.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.04 718.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.81 718.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.81 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (was primarily due to higher shipments for medical and bio-instrumentation \(including the acquisition of Lumera at the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the first quarter of fiscal 2013\) applications partially of) Tj ET Q q 0 0 0 rg BT 269.75 694.10 Td (fset by lower shipments for military applications due to timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (military project spending. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 662.10 Td (During fiscal 2013, net sales increased by $41.0 million, or 5%, compared to fiscal 2012, with sales increases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (microelectronics, materials processing and OEM components and instrumentation markets partially of) Tj ET Q q 0 0 0 rg BT 458.87 650.10 Td (fset by decreases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (scientific and government programs market.) 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 226.88 638.10 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 229.38 638.10 Td (Microelectronics sales increased $42.9 million, or 1) Tj ET Q q 0 0 0 rg BT 436.18 638.10 Td (1%, primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (sales in flat panel display applications.) 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 204.40 626.10 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 206.90 626.10 Td (Materials processing sales increased $13.0 million, or 12%, during fiscal 2013 primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (due to higher shipments for marking, heat treating and cutting applications and the acquisition of Lumera at the end of the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (quarter of fiscal 2013.) 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 138.30 602.10 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 140.62 602.10 Td (The increase in the OEM components and instrumentation market of $6.2 million, or 4%, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (2013 was primarily due to higher shipments for bio-instrumentation and medical \(including the acquisition of Lumera at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (end of the first quarter of fiscal 2013\) applications partially of) Tj ET Q q 0 0 0 rg BT 297.51 578.10 Td (fset by lower shipments for military and graphic arts and display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (applications. Military shipments were lower due to timing of military project spending and the impact from sequestration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (budget cuts and graphic arts and display shipments decreased due primarily to lower demand for light show lasers from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (entertainment customers. ) Tj ET Q q 0 0 0 rg BT 152.84 542.10 Td (The decrease in scientific and government programs market sales of $21.1 million, or 15%, during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (fiscal 2013 was primarily due to lower demand for advanced research applications used by university and government research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (groups partly due to lower U.S. and global stimulus funding and from budget cuts from government agencies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 498.10 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 50.00 486.10 Td (Orders used to compute backlog are generally cancelable and subject to rescheduling by our customers without substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (penalties. Historically) Tj ET Q q 0 0 0 rg BT 137.10 474.10 Td (, we have not experienced a significant rate of cancellation or rescheduling outside the 12 month period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (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 466.88 462.10 Td (W) Tj ET Q q 0 0 0 rg BT 475.52 462.10 Td (e continue to have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (sizable backlog of orders shippable within 12 months of $328.3 million at September 27, 2014, including a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (concentration in the flat panel display market \(41%\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 414.10 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 50.00 402.10 Td (historically fluctuated and are in the future expected to fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 361.33 402.10 Td (-to-quarter due to customer scheduling, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (ability to manufacture these products and/or availability of supplies. ) Tj ET Q q 0 0 0 rg BT 326.88 390.10 Td (As a result, the timing to convert orders for these products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (to net sales will likely fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 227.80 378.10 Td (-to-quarter) Tj ET Q q 0 0 0 rg BT 270.00 378.10 Td (. Looking at our prior ten years of actual results, excluding a couple of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (recovery years, our first quarter revenues generally ranged 2% to 12% below the fourth quarter of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 520.92 366.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 346.10 Td (In fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.99 346.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.99 346.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.99 346.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.99 346.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.42 346.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.42 346.10 Td (, one customer accounted for 13%, 14% and 1) Tj ET Q q 0 0 0 rg BT 377.44 346.10 Td (1% of net sales, respectively) Tj ET Q q 0 0 0 rg BT 490.91 346.10 Td (. In fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.90 346.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.90 346.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (another customer accounted for 1) Tj ET Q q 0 0 0 rg BT 183.46 334.10 Td (1% of net sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 294.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 294.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 294.10 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 50.00 282.10 Td (and Components \("CLC"\). SLS develops and manufactures configurable, advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 487.29 282.10 Td (gely serving the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 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 50.00 258.10 Td (focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 232.82 258.10 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 50.00 246.10 Td (OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 226.10 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 50.00 214.10 Td (sales by segment \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 152.60 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 152.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 152.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.50 152.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 152.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 152.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 152.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 152.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 152.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 152.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 152.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 152.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 112.60 132.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 112.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 112.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.50 112.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 112.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 112.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 112.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 112.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 112.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 112.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 112.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 112.60 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 190.5 181.60000000000002 m 247.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 181.60000000000002 m 251.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 181.60000000000002 m 308.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 181.60000000000002 m 369.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 181.60000000000002 m 373.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 181.60000000000002 m 430.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 181.60000000000002 m 491.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 181.60000000000002 m 495.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 181.60000000000002 m 552.5 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 152.60000000000002 m 247.5 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 152.60000000000002 m 308.5 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 152.60000000000002 m 369.5 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 152.60000000000002 m 430.5 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 152.60000000000002 m 491.5 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 152.60000000000002 m 552.5 152.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 87.60000000000002 m 247.5 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 73.60000000000002 m 247.5 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 71.60000000000002 m 247.5 71.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 87.60000000000002 m 308.5 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 73.60000000000002 m 308.5 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 71.60000000000002 m 308.5 71.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 87.60000000000002 m 369.5 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 73.60000000000002 m 369.5 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 71.60000000000002 m 369.5 71.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 87.60000000000002 m 430.5 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 73.60000000000002 m 430.5 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 71.60000000000002 m 430.5 71.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 87.60000000000002 m 491.5 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 73.60000000000002 m 491.5 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 71.60000000000002 m 491.5 71.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 87.60000000000002 m 552.5 87.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 73.60000000000002 m 552.5 73.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 71.60000000000002 m 552.5 71.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 61.00 186.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.00 185.83 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.00 185.83 Td (Fiscal 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.00 185.83 Td (Fiscal 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 124.00 156.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 204.45 156.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.65 172.83 Td (Per) Tj ET Q q 0 0 0 rg BT 272.49 172.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.35 164.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.15 156.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.45 156.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.65 172.83 Td (Per) Tj ET Q q 0 0 0 rg BT 394.49 172.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.35 164.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.15 156.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.45 156.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.65 172.83 Td (Per) Tj ET Q q 0 0 0 rg BT 516.49 172.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.35 164.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.15 156.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 61.00 142.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 142.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.00 142.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 142.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 142.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 142.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.00 142.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 127.27 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 117.27 Td (\(SLS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 117.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 117.27 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.15 117.27 Td (71.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 117.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 117.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 117.27 Td (571,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 117.27 Td (70.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 117.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 117.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 117.27 Td (548,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 117.27 Td (71.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 117.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 102.27 Td (Commercial Lasers and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 92.27 Td (Components \(CLC\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 92.27 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.15 92.27 Td (28.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 92.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 92.27 Td (238,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 92.27 Td (29.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 92.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 92.27 Td (220,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 92.27 Td (28.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 92.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 77.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 77.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 77.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 77.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 77.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 77.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 77.27 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 77.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 77.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 77.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 77.27 Td (769,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 77.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 77.27 Td (%) 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 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 endstream endobj 93 0 obj <>] /Rotate 0 /Contents 94 0 R>> endobj 94 0 obj <> stream 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 74.00 742.10 Td (Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.19 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.19 742.10 Td ( decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.61 742.10 Td ($15.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.50 742.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.33 742.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.66 742.10 Td (, compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.02 742.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.02 742.10 Td (, with decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.93 742.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.82 742.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 742.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.98 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (in our SLS segment and decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.24 730.10 Td ($9.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.13 730.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.96 730.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.29 730.10 Td (, in our CLC segment. Net sales for fiscal 2013 increased $41.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (million, or 5%, compared to fiscal 2012, with increases of $22.8 million, or 4%, in our SLS segment and increases of $18.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (million, or 8%, in our CLC segment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 686.10 Td (The decrease in our SLS segment sales in fiscal 2014 was primarily due to lower revenue for flat panel display annealing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (applications due to timing for shipment of lar) Tj ET Q q 0 0 0 rg BT 231.17 674.10 Td (ge systems, lower shipments for ink jet nozzle drilling applications and lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (materials processing applications sales partially of) Tj ET Q q 0 0 0 rg BT 251.15 662.10 Td (fset by higher shipments for semiconductor and medical applications. ) Tj ET Q q 0 0 0 rg BT 531.45 662.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (increase in our SLS segment sales in fiscal 2013 was primarily due to a $23.3 million increase from the sale of products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (acquired through our acquisitions of Lumera and Innolight at the end of the first quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 463.31 638.10 Td (The increase was of) Tj ET Q q 0 0 0 rg BT 542.81 638.10 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (by a $0.5 million decrease in sales of our other SLS products primarily due to lower shipments for scientific and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (programs, solar) Tj ET Q q 0 0 0 rg BT 111.81 614.10 Td (, advanced packaging, medical and semiconductor applications partially of) Tj ET Q q 0 0 0 rg BT 410.41 614.10 Td (fset by higher revenue for flat panel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (display annealing applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 582.10 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 280.88 582.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.88 582.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.81 582.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.81 582.10 Td ( was primarily due to lower advanced packaging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (sales due to market softness and lower military application sales partially of) Tj ET Q q 0 0 0 rg BT 353.34 570.10 Td (fset by higher sales for medical and instrumentation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (applications. ) Tj ET Q q 0 0 0 rg BT 103.14 558.10 Td (The increase in our CLC segment sales from fiscal 2012 to fiscal 2013 was primarily due to higher advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (packaging, instrumentation and materials processing application sales partially of) Tj ET Q q 0 0 0 rg BT 375.56 546.10 Td (fset by lower sales for scientific and military ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (Gross Profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (Consolidated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 474.10 Td (Our gross profit rate decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.28 474.10 Td (0.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.11 474.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.89 474.10 Td (39.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.72 474.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 474.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 474.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.09 474.10 Td (39.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.92 474.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.86 474.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.86 474.10 Td ( primarily due to unfavorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 462.10 Td (gins \(0.4%\) resulting from unfavorable mix in the OEM and instrumentation and material processing markets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (CLC segment and unfavorable impact of foreign exchange rates in the SLS segment as well as higher intangibles amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (\(0.2%\) due to the acquisitions of Lumera at the end of the first quarter of fiscal 2013 and Innolight in the first quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (2013 partially of) Tj ET Q q 0 0 0 rg BT 116.47 426.10 Td (fset by lower warranty costs as a percentage of sales \(0.2%\) due to fewer warranty events in the SLS segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 406.10 Td (Our gross profit rate decreased by 1.3% to 39.8% in fiscal 2013 from 41.1% in fiscal 2012 primarily due to unfavorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 394.10 Td (gins \(0.8%\) resulting from the unfavorable impact of foreign exchange rates, the impact of lower volumes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (several business units in the first two quarters of fiscal 2013 and higher than expected manufacturing costs due to longer cycle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (times related to the production of our complex flat panel annealing systems, partially of) Tj ET Q q 0 0 0 rg BT 400.27 370.10 Td (fset by favorable product mix in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (microelectronics market due to a higher concentration of service business; higher intangibles amortization \(0.6%\) due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (acquisitions of Lumera at the end of the first quarter of fiscal 2013 and Innolight in the first quarter of fiscal 2013; and higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (other costs \(0.3%\) primarily due to inventory step up amortization from the acquisition of Lumera and slightly higher inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (provisions. ) Tj ET Q q 0 0 0 rg BT 96.49 322.10 Td (These decreases were net of lower warranty costs \(0.4%\) due to lower warranty expenses as a percentage of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (sales in the microelectronics market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 290.10 Td (Our gross profit rate has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 296.81 290.10 Td (fected by a variety of factors including market mix, pricing on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (volume orders, our ability to manufacture advanced and more complex products, manufacturing ef) Tj ET Q q 0 0 0 rg BT 444.13 278.10 Td (ficiencies, excess and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (obsolete inventory write-downs, warranty costs, pricing by competitors or suppliers, new product introductions, production ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (volume, customization and reconfiguration of systems, commodity prices and foreign currency fluctuations, particularly the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (recent weakening of the Japanese ) Tj ET Q q 0 0 0 rg BT 185.95 242.10 Td (Y) Tj ET Q q 0 0 0 rg BT 192.17 242.10 Td (en and Euro.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 202.10 Td (Our SLS gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.35 202.10 Td (0.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.18 202.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.96 202.10 Td (42.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.79 202.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.72 202.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.72 202.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.16 202.10 Td (41.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.99 202.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.93 202.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.93 202.10 Td ( 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 520.86 202.10 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 523.36 202.10 Td (lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (warranty costs \(0.8%\) due to fewer warranty events and lower other costs \(0.1%\) due to inventory step up amortization from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (the acquisition of Lumera recorded in fiscal 2013 net of higher fiscal 2014 inventory provisions as a percentage of sales. ) Tj ET Q q 0 0 0 rg BT 533.83 178.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (decreases were partially of) Tj ET Q q 0 0 0 rg BT 156.70 166.10 Td (fset by higher intangibles amortization \(0.3%\) due to the acquisitions of Lumera at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (first quarter of fiscal 2013 and Innolight in the first quarter of fiscal 2013 and the beginning of amortization of in-process ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (research and development \(IPR&D\) for Lumera in the third quarter of fiscal 2014 as well as unfavorable product cost \(0.2%\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (due to higher scrap, rework and engineering change order variances, unfavorable mix in the microelectronics and medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (markets and the unfavorable impact of foreign exchange rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 98.10 Td (Our SLS gross profit rate decreased by 1.5% to 41.7% in fiscal 2013 from 43.2% in fiscal 2012 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 522.52 98.10 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 50.00 86.10 Td (unfavorable product costs \(0.9%\) due to the unfavorable impact of foreign exchange rates, lower volumes in several business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (units and higher than expected manufacturing costs due to longer cycle times related to the production of our complex flat ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (panel annealing systems net of favorable mix in the microelectronics market; higher intangibles amortization \(0.8%\) due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (acquisitions of Lumera at the end of the first quarter of fiscal 2013 and Innolight in the first quarter of fiscal 2013; and higher ) 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 50 771.2669921875 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 endstream endobj 95 0 obj <>] /Rotate 0 /Contents 96 0 R>> endobj 96 0 obj <> stream 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 50.00 742.10 Td (other costs \(0.1%\) primarily due to inventory step up amortization from the acquisition of Lumera. ) Tj ET Q q 0 0 0 rg BT 447.22 742.10 Td (These decreases were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 730.10 Td (fset by lower warranty costs \(0.3%\) due to fewer warranty events and higher sales volumes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (Commer) Tj ET Q q 0 0 0 rg BT 87.58 710.10 Td (cial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (Our CLC gross profit rate decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.23 690.10 Td (2.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.06 690.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.84 690.10 Td (33.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.67 690.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.60 690.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.60 690.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.04 690.10 Td (36.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.87 690.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.80 690.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 690.10 Td ( primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 Td (warranty costs \(1.2%\) due to the impact of a higher installed base on lower revenues in the advanced packaging market as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (as new product introductions in the materials processing and OEM components and instrumentation markets, unfavorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (product costs \(1.0%\) resulting from unfavorable mix in the OEM components and instrumentation and material processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (markets and higher other costs \(0.1%\) due to slightly higher inventory provisions as a percentage of sales net of lower freight ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (and duty) Tj ET Q q 0 0 0 rg BT 84.07 630.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 Td (Our CLC gross profit rate decreased by 0.5% to 36.2% in fiscal 2013 from 36.7% in fiscal 2012 primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (unfavorable product costs \(0.6%\) resulting from unfavorable mix in the OEM components and instrumentation market net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (the impact of higher volumes, higher other costs \(0.5%\) due to higher inventory provisions as a percentage of revenue and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (higher intangibles amortization \(0.1%\) partially of) Tj ET Q q 0 0 0 rg BT 251.43 574.10 Td (fset by lower warranty and installation costs \(0.7%\) due to fewer warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (events.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 522.10 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 50.00 510.10 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 50.50 422.60 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 422.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 422.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 422.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 422.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 422.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 422.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 422.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 422.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 422.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 422.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 422.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 392.60 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 392.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 392.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 392.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 392.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 392.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 392.60 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 207.5 477.6 m 261.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 477.6 m 265.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 477.6 m 319.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 477.6 m 323.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 477.6 m 377.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 477.6 m 381.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 477.6 m 435.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 477.6 m 439.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 477.6 m 493.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 477.6 m 497.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 477.6 m 551.5 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 464.6 m 261.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 464.6 m 265.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 464.6 m 319.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 464.6 m 377.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 464.6 m 381.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 464.6 m 435.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 464.6 m 493.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 464.6 m 497.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 464.6 m 551.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 435.6 m 261.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 435.6 m 319.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 435.6 m 377.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 435.6 m 435.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 435.6 m 493.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 435.6 m 551.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 377.6 m 261.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 377.6 m 319.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 377.6 m 377.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 377.6 m 435.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 377.6 m 493.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 377.6 m 551.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 377.6 m 261.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 363.6 m 261.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 361.6 m 261.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 377.6 m 319.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 363.6 m 319.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 361.6 m 319.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 377.6 m 377.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 363.6 m 377.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 361.6 m 377.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 377.6 m 435.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 363.6 m 435.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 361.6 m 435.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 377.6 m 493.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 363.6 m 493.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 361.6 m 493.5 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 377.6 m 551.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 363.6 m 551.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 361.6 m 551.5 361.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 482.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.00 481.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 468.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.00 468.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 468.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 468.83 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 128.50 439.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 219.95 439.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.15 455.83 Td (Per) Tj ET Q q 0 0 0 rg BT 284.99 455.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.85 447.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.65 439.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.95 439.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.15 455.83 Td (Per) Tj ET Q q 0 0 0 rg BT 400.99 455.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.85 447.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.65 439.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.95 439.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.15 455.83 Td (Per) Tj ET Q q 0 0 0 rg BT 516.99 455.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 447.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.65 439.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 426.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.20 426.83 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 412.27 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 412.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 412.27 Td (79,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 412.27 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 412.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 412.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 412.27 Td (82,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 412.27 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 412.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 412.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 412.27 Td (78,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 412.27 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 412.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 397.27 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.15 397.27 Td (154,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 397.27 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 397.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 397.27 Td (149,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 397.27 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 397.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 397.27 Td (138,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 397.27 Td (18.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 397.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 382.27 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 382.27 Td (3,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.15 382.27 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 382.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 382.27 Td (5,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 382.27 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 382.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 382.27 Td (10,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 382.27 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 382.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 367.27 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 367.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.15 367.27 Td (236,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.15 367.27 Td (29.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 367.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 367.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 367.27 Td (237,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 367.27 Td (29.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 367.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 367.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 367.27 Td (227,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 367.27 Td (29.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 367.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 343.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 343.10 Td (ch and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 323.10 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 323.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 323.10 Td ( research and development \("R&D"\) expenses decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.29 323.10 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.18 323.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.01 323.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.34 323.10 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.43 323.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.43 323.10 Td (, and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 311.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.28 311.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.11 311.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.55 311.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.38 311.10 Td ( of sales. ) Tj ET Q q 0 0 0 rg BT 173.96 311.10 Td (The $3.7 million decrease was primarily due to $5.3 million lower project spending as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (higher customer reimbursements for development projects net of higher spending on various projects and increased headcount. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td (The decreases were partially of) Tj ET Q q 0 0 0 rg BT 174.75 287.10 Td (fset by the unfavorable impact of foreign exchange rates \($1.2 million\) and $0.4 million higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td (other spending including higher char) Tj ET Q q 0 0 0 rg BT 197.00 275.10 Td (ges for increases in deferred compensation plan liabilities with the related expenses for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 263.10 Td (decreases in deferred compensation assets recorded in other income \(expense\) and higher stock-based compensation expense. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (On a segment basis, SLS spending decreased $2.9 million primarily due to lower net spending on projects due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (customer reimbursements net of higher other spending on projects partially of) Tj ET Q q 0 0 0 rg BT 361.40 239.10 Td (fset by the impact of foreign exchange rates. CLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (spending decreased $1.2 million primarily due lower spending on projects. Corporate and other spending increased $0.4 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td (due to higher char) Tj ET Q q 0 0 0 rg BT 122.29 215.10 Td (ges for increases in deferred compensation plan liabilities and higher stock-based compensation expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 195.10 Td (Fiscal 2013 research and development \("R&D"\) expenses increased $4.5 million, or 6%, from fiscal 2012, but remained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 183.10 Td (flat as a percentage of sales. ) Tj ET Q q 0 0 0 rg BT 164.48 183.10 Td (The increase was primarily due to the acquisitions of Lumera and Innolight in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (fiscal 2013 \($3.9 million\), higher payroll and other spending on projects \($0.5 million\) and higher stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td (expense \($0.3 million\) partially of) Tj ET Q q 0 0 0 rg BT 186.73 159.10 Td (fset by the favorable impact of foreign exchange rates \($0.2 million\). On a segment basis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (SLS spending increased $2.7 million primarily due to the acquisitions of Lumera and Innolight partially of) Tj ET Q q 0 0 0 rg BT 476.40 147.10 Td (fset by lower project ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.10 Td (spending and the impact of foreign exchange rates. CLC spending increased $1.5 million primarily due to higher payroll and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.10 Td (other spending on projects. Corporate and other spending increased $0.3 million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 103.10 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 83.10 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 83.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 83.10 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 83.10 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.97 83.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.80 83.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.13 83.10 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.23 83.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.23 83.10 Td (. ) Tj ET Q q 0 0 0 rg BT 541.05 83.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 71.10 Td (increase was primarily due to $2.9 million higher payroll spending due to higher headcount and increased salaries and benefits, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 59.10 Td (higher sales commissions due to changes in regional mix and higher variable compensation spending; $1.2 million higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 47.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 47.10 Td (ges for increases in deferred compensation plan liabilities with the related expenses for decreases in deferred compensation ) 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 50 771.2669921875 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 endstream endobj 97 0 obj <>] /Rotate 0 /Contents 98 0 R>> endobj 98 0 obj <> stream 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 (assets recorded in other income \(expense\); and $0.5 million related to the acquisitions of Lumera and Innolight in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 140.62 730.10 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 263.71 730.10 Td (fset by $0.1 million lower other variable spending on consulting and legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (costs for acquisitions and lower external sales representative commissions net of the unfavorable impact of foreign exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (rates. On a segment basis, SLS segment expenses increased $2.0million primarily due to higher payroll spending, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (unfavorable impact of foreign exchange rates and the acquisitions of Lumera and Innolight partially of) Tj ET Q q 0 0 0 rg BT 460.23 694.10 Td (fset by lower external ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (sales representative commissions. CLC spending increased $2.6million primarily due to higher payroll spending and higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (other variable spending partially of) Tj ET Q q 0 0 0 rg BT 190.33 670.10 Td (fset by lower external sales representative commissions. Spending for Corporate and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (decreased $0.1 million primarily due to lower legal and consulting related to acquisitions and lower other variable spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 646.10 Td (fset by higher char) Tj ET Q q 0 0 0 rg BT 168.48 646.10 Td (ges for increases in deferred compensation plan liabilities and higher payroll spending.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 626.10 Td (Fiscal 2013 selling, general and administrative \("SG&A"\) expenses increased $1) Tj ET Q q 0 0 0 rg BT 396.71 626.10 Td (1.0 million, or 8%, from fiscal 2012. ) Tj ET Q q 0 0 0 rg BT 545.67 626.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 Td (increase was primarily due to the acquisitions of Lumera and Innolight in the first quarter of fiscal 2013 \($4.0 million\), $3.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (million higher payroll spending due to higher headcount and increased salaries, higher performance-related compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (spending and higher sales commissions, $2.7 million higher other variable spending on consulting and legal costs, external ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (sales representative commissions, tradeshows and other as well as $1.9 million higher stock-based compensation expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 566.10 Td (fset by the favorable impact of foreign exchange rates \($0.9 million\). On a segment basis, SLS segment expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (increased $5.6million primarily due to the acquisitions of Lumera and Innolight, higher payroll spending and higher other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (variable spending partially of) Tj ET Q q 0 0 0 rg BT 167.28 542.10 Td (fset by the favorable impact of foreign exchange rates. CLC spending increased $2.0million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (primarily due to higher other variable spending and higher payroll spending. Spending for Corporate and other increased $3.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (million primarily due to higher stock-based compensation expense, higher other variable spending and higher payroll spending.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 478.10 Td (Amortization of intangible assets decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.88 478.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.78 478.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.61 478.10 Td (33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.94 478.10 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.03 478.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.03 478.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.96 478.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.96 478.10 Td ( primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (completion of amortization of certain intangibles from the acquisition of Lumera and other prior acquisitions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.10 Td (Amortization of intangible assets decreased $5.3 million, or 51%, from fiscal 2012 to fiscal 2013 primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (fourth quarter fiscal 2012 impairment of $4.0 million of Hypertronics intangibles and the completion of amortization of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (intangibles \(including Hypertronics\) related to prior acquisitions partially of) Tj ET Q q 0 0 0 rg BT 354.18 422.10 Td (fset by amortization from the acquisitions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (Lumera and Innolight in the first quarter of fiscal 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (Other) Tj ET Q q 0 0 0 rg BT 75.37 390.10 Td ( income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 370.10 Td (Other income \(expense\), net, increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.54 370.10 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.43 370.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.03 370.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.03 370.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.96 370.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.96 370.10 Td (. ) Tj ET Q q 0 0 0 rg BT 411.78 370.10 Td (The increase was primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td ($2.1 million higher gains, net of expenses, on our deferred compensation plan assets and higher net foreign currency exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (gains \($1.5 million\) primarily due to more favorable movement in the Japanese ) Tj ET Q q 0 0 0 rg BT 369.26 346.10 Td (Y) Tj ET Q q 0 0 0 rg BT 375.48 346.10 Td (en-Euro cross rate during fiscal 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 326.10 Td (Other income \(expense\), net, decreased $3.2 million from fiscal 2012 to fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 413.44 326.10 Td (The decrease was primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (higher net foreign currency exchange losses \($3.3 million\) primarily due to the significant movement in the Japanese ) Tj ET Q q 0 0 0 rg BT 520.04 314.10 Td (Y) Tj ET Q q 0 0 0 rg BT 526.26 314.10 Td (en ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (against the Euro certain times in the first and third quarters of fiscal 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (Income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 262.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 262.10 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 50.00 250.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 250.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (statutory tax rates including Korea and Singapore tax exemptions and the benefit of foreign tax credits. ) Tj ET Q q 0 0 0 rg BT 464.41 238.10 Td (These amounts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 226.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock compensation not deductible for tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (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 72.50 194.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 98.13 194.10 Td (fective tax rate on income before income taxes for fiscal 2013 of 20.5% was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 182.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (statutory tax rates including Korea and Singapore tax exemptions, the benefit of foreign tax credits, the benefit of the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (research and development tax credits including renewal of the federal research and development tax credits for fiscal 2012 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (the benefit of releasing foreign tax reserves accrued under ) Tj ET Q q 0 0 0 rg BT 284.06 146.10 Td (ASC 740-10 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 336.84 146.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 373.41 146.10 Td (axes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.68 146.10 Td (and related interest. ) Tj ET Q q 0 0 0 rg BT 474.58 146.10 Td (These amounts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 134.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock compensation not deductible for tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (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 74.00 102.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 102.10 Td (fective tax rate on income before income taxes for fiscal 2012 of 30.5% 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 90.10 Td (This was primarily due to the benefit of income subject to foreign tax rates that are lower than U.S. tax rates and the benefit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (releasing state tax reserves accrued under ) Tj ET Q q 0 0 0 rg BT 217.70 78.10 Td (ASC 740-10 and related interest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 58.10 Td (During fiscal 2014, we increased our valuation allowance on deferred tax assets by $1.0 million to $14.4million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (primarily due to the reduced ability to utilize California and other states research and development tax credits. During fiscal ) 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 50 771.2669921875 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 endstream endobj 99 0 obj <>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream 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 (2013, we increased our valuation allowance on deferred tax assets by $4.3 million to $13.4million primarily due to the reduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (ability to utilize California and other states research and development tax credits. During fiscal 2012, we increased our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (valuation allowance on deferred tax assets by $0.3 million to $9.1million primarily due to the reduced ability to utilize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (California research and development tax credits and of) Tj ET Q q 0 0 0 rg BT 268.90 706.10 Td (fset by the net increased ability to utilize foreign tax attributes and net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (operating losses of our subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (In making the determination to record the valuation allowance, management considered the likelihood of future taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (income and feasible and prudent tax planning strategies to realize deferred tax assets. In the future, if we determine that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (expect to realize deferred tax assets, an adjustment to the valuation allowance will af) Tj ET Q q 0 0 0 rg BT 388.57 650.10 Td (fect income in the period such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (determination is made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 618.10 Td (Coherent Korea received the final approval for a High-T) Tj ET Q q 0 0 0 rg BT 297.81 618.10 Td (ech tax exemption in 2013 from the Korean authorities and it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (subject to capital contribution limitations. ) Tj ET Q q 0 0 0 rg BT 219.23 606.10 Td (The impact of this tax exemption decreased Korean income taxes by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td ($2.4 million in fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 160.64 594.10 Td (The benefit of the tax holiday on fiscal 2014 net income per share \(diluted\) was $0.10.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 574.10 Td (Coherent Singapore had previously received a Pioneer Status tax exemption from the Singapore authorities ef) Tj ET Q q 0 0 0 rg BT 512.58 574.10 Td (fective from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (fiscal 2012 through fiscal 2017, and it may be extended if certain additional requirements are satisfied. ) Tj ET Q q 0 0 0 rg BT 463.02 562.10 Td (The tax holiday is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (conditional upon our meeting certain revenue, business spending and employment thresholds. ) Tj ET Q q 0 0 0 rg BT 426.87 550.10 Td (Although Coherent Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (had income in fiscal 2014, this amount was lar) Tj ET Q q 0 0 0 rg BT 236.17 538.10 Td (gely of) Tj ET Q q 0 0 0 rg BT 264.03 538.10 Td (fset by a loss carryforward from fiscal 2012. ) Tj ET Q q 0 0 0 rg BT 444.07 538.10 Td (The benefit of the Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (tax holiday in fiscal 2014 net of the loss carryforward is therefore not significant. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 106.12 502.10 Td ( CONDITION) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (Liquidity and capital resources) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 462.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 462.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.26 462.10 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 50.00 450.10 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.33 450.10 Td ($318.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.22 450.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.42 450.10 Td ($250.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.31 450.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.53 450.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.79 450.10 Td (. ) Tj ET Q q 0 0 0 rg BT 365.24 450.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 450.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.00 450.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.26 450.10 Td ($201.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 438.10 Td ( of 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 374.64 438.10 Td ($67.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.54 438.10 Td ( of which was denominated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 194.12 426.10 Td (. ) Tj ET Q q 0 0 0 rg BT 198.94 426.10 Td (W) Tj ET Q q 0 0 0 rg BT 207.58 426.10 Td (e currently have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.75 426.10 Td ($197.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.64 426.10 Td ( of cash held by foreign subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (where we intend to permanently reinvest our accumulated earnings in these entities and our current plans do not demonstrate a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 Td (need for these funds to support our domestic operations. If, however) Tj ET Q q 0 0 0 rg BT 322.86 402.10 Td (, a portion of these funds were needed for and distributed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (our operations in the United States,we would be subject to additional U.S.income taxes and foreign withholding taxes. ) Tj ET Q q 0 0 0 rg BT 530.56 390.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.10 Td (amount of the taxes due would depend on the amount and manner of repatriation, as well as the location from where the funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (are repatriated. ) Tj ET Q q 0 0 0 rg BT 112.28 366.10 Td (W) Tj ET Q q 0 0 0 rg BT 120.91 366.10 Td (e actively monitor the third-party depository institutions that hold these assets, primarily focusing on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (safety of principal and secondarily maximizing yield on these assets. ) Tj ET Q q 0 0 0 rg BT 327.24 354.10 Td (W) Tj ET Q q 0 0 0 rg BT 335.88 354.10 Td (e diversify our cash and cash equivalents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (investments among various financial institutions, money market funds and sovereign debt in order to reduce our exposure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (should any one of these financial institutions or financial instruments fail or encounter dif) Tj ET Q q 0 0 0 rg BT 408.34 330.10 Td (ficulties. ) Tj ET Q q 0 0 0 rg BT 445.37 330.10 Td (T) Tj ET Q q 0 0 0 rg BT 450.78 330.10 Td (o date, we have not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (experienced any material loss or lack of access to our invested cash, cash equivalents or short-term investments. However) Tj ET Q q 0 0 0 rg BT 536.93 318.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (can provide no assurances that access to our invested cash, cash equivalents or short-term investments will not be impacted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (adverse conditions in the financial markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 277.10 Td (In the fourth quarter of fiscal 2014, we converted $62.7 million of cash and securities heldin certain of our foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.10 Td (subsidiaries to U.S. dollars and invested those funds within a European subsidiary whose functional currency is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 556.02 265.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 253.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.76 253.10 Td (, this subsidiary has $127.6 million of U.S. dollar denominated investments primarily in U.S. ) Tj ET Q q 0 0 0 rg BT 517.00 253.10 Td (T) Tj ET Q q 0 0 0 rg BT 522.75 253.10 Td (reasury ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.10 Td (Securities, Corporate Notes and Commercial Paper) Tj ET Q q 0 0 0 rg BT 253.83 241.10 Td (. ) Tj ET Q q 0 0 0 rg BT 258.28 241.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 307.62 241.10 Td (, there is no translation expense arising from this entity holding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.10 Td (U.S. dollar denominated investments. ) Tj ET Q q 0 0 0 rg BT 202.85 229.10 Td (The converted funds are not intended to be repatriated to the U.S. and no U.S. tax was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.10 Td (triggered on the transfer of these funds to the European subsidiary) Tj ET Q q 0 0 0 rg BT 313.72 217.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 197.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.38 197.10 Td (ces and Uses of Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 177.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 120.56 177.10 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 50.00 165.10 Td (years include proceeds received from the sale of our stock through our employee stock option and purchase plans. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 153.10 Td (historical uses of cash have primarily been for the repurchase of our common stock, capital expenditures, acquisitions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 141.10 Td (businesses and technologies and the payment of a one-time cash dividend in the first quarter of fiscal 2013. Supplemental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (information pertaining to our historical sources and uses of cash is presented as follows and should be read in conjunction with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (our Consolidated Statements of Cash Flows and notes thereto \(in thousands\):) 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 50 771.2669921875 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 endstream endobj 101 0 obj <>] /Rotate 0 /Contents 102 0 R>> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (48) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 721.50 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 721.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 721.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 721.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 721.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 721.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 691.50 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 691.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 691.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 691.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 691.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 691.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 661.50 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 661.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 661.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 661.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 661.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 661.50 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 367.5 734.5 m 427.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 734.5 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 431.5 734.5 m 491.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 734.5 m 495.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 734.5 m 561.5 734.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 721.5 m 427.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 721.5 m 491.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 721.5 m 561.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 721.5 m 427.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 721.5 m 491.5 721.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 721.5 m 561.5 721.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 208.00 739.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.00 738.73 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 725.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.00 725.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 725.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 725.73 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 711.17 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 711.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 711.17 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.00 711.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 711.17 Td (115,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.00 711.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 711.17 Td (64,771) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 696.17 Td (Sales of shares under employee stock plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 696.17 Td (10,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 696.17 Td (16,541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 696.17 Td (13,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 681.17 Td (Repurchase of common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 681.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 681.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 681.22 Td (\(24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 681.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 666.17 Td (Cash dividend paid on common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 666.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 666.22 Td (\(24,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 666.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 666.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 651.17 Td (Capital expenditures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.80 651.22 Td (\(23,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 651.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 651.22 Td (\(21,988) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 651.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 651.22 Td (\(36,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 651.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 636.17 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 636.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 636.22 Td (\(67,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 636.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 636.22 Td (\(3,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 636.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 612.00 Td (Net cash provided by operating activities decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.03 612.00 Td ($24.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.92 612.00 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.86 612.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.86 612.00 Td ( compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.71 612.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.71 612.00 Td ( and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 600.00 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 600.00 Td ($50.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.39 600.00 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.33 600.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.33 600.00 Td ( compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.18 600.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.18 600.00 Td (. ) Tj ET Q q 0 0 0 rg BT 277.00 600.00 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 526.35 600.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.35 600.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 588.00 Td (was primarily due to lower cash flows from the timing of inventory purchases to support new products and accounts payable, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (lower net income, lower cash flows from the timing of accounts receivable due to higher days sales outstanding and lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td (income from operations partially of) Tj ET Q q 0 0 0 rg BT 192.00 564.00 Td (fset by higher cash flows from the timing of other current liabilities. ) Tj ET Q q 0 0 0 rg BT 466.47 564.00 Td (The increase in cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (provided by operating activities in fiscal 2013 was primarily due to higher cash flows from timing of accounts payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (payments, improved inventory turns, timing of other current assets and liabilities as well as improved accounts receivable days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (sales outstanding partially of) Tj ET Q q 0 0 0 rg BT 165.07 528.00 Td (fset by timing of tax payments. ) Tj ET Q q 0 0 0 rg BT 291.82 528.00 Td (W) Tj ET Q q 0 0 0 rg BT 300.45 528.00 Td (e believe that our existing cash, cash equivalents and short term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 516.00 Td (investments combined with cash to be provided by operating activities will be adequate to cover our working capital needs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 504.00 Td (planned capital expenditures for at least the next 12months to the extent such items are known or are reasonably determinable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 492.00 Td (based on current business and market conditions. However) Tj ET Q q 0 0 0 rg BT 285.09 492.00 Td (, we may elect to finance certain of our capital expenditure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 480.00 Td (requirements through borrowings under our bank credit facilities or other sources of capital. ) Tj ET Q q 0 0 0 rg BT 420.26 480.00 Td (W) Tj ET Q q 0 0 0 rg BT 428.90 480.00 Td (e continue to follow our strategy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 468.00 Td (to further strengthen our 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 74.00 448.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 448.00 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 50.00 436.00 Td (conditions. However) Tj ET Q q 0 0 0 rg BT 132.92 436.00 Td (, we cannot accurately predict the timing, size and success of our acquisition ef) Tj ET Q q 0 0 0 rg BT 449.01 436.00 Td (forts or our associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.00 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 50.00 412.00 Td (acceptable to us. ) Tj ET Q q 0 0 0 rg BT 118.68 412.00 Td (W) Tj ET Q q 0 0 0 rg BT 127.31 412.00 Td (e expect to fund future acquisitions primarily through existing cash balances and cash flows from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.00 Td (operations. If required, we will look for additional borrowings or consider the issuance of securities. ) Tj ET Q q 0 0 0 rg BT 453.04 400.00 Td (The extent to which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.00 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 50.00 376.00 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 74.00 356.00 Td (On December 10, 2012, we announced that the Board of Directors approved a $1.00 per share special cash dividend on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 344.00 Td (our outstanding common stock payable on December 27, 2012 to stockholders of record on December 19, 2012, resulting in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 332.00 Td (payment of $24.0 million in the first quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 288.38 332.00 Td (W) Tj ET Q q 0 0 0 rg BT 297.02 332.00 Td (e do not expect to pay any additional dividends in the foreseeable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 320.00 Td (future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 300.00 Td (On ) Tj ET Q q 0 0 0 rg BT 86.67 300.00 Td (August25,201) Tj ET Q q 0 0 0 rg BT 147.69 300.00 Td (1, we announced that the Board of Directors had authorized the repurchase of up to $50.0 million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.00 Td (our common stock. ) Tj ET Q q 0 0 0 rg BT 129.25 288.00 Td (The program was authorized for 12 months from the date of authorization. During fiscal 201) Tj ET Q q 0 0 0 rg BT 499.05 288.00 Td (1, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.00 Td (repurchased and retired 586,200 shares of outstanding common stock at an average price of $42.67 per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.00 Td ($25.0 million, excluding expenses. Under this program, during fiscal 2012, we repurchased and retired 543,200 shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.00 Td (outstanding common stock at an average price of $45.99 per share for a total of $25.0 million, excluding expenses, completing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (the repurchase. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 216.00 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.22 216.00 Td (October4, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.93 216.00 Td (, the Board of Directors authorized the repurchase of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.95 216.00 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.85 216.00 Td ( of our common stock. ) Tj ET Q q 0 0 0 rg BT 534.43 216.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.00 Td (program was authorized for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.29 204.00 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.29 204.00 Td ( months from the date of authorization. No shares were purchased under this program. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 184.00 Td (On July 25, 2014, the Board of Directors authorized a buyback program whereby we are authorized to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.00 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 172.00 Td ( of our common stock from time to time through July 31, 2015. No shares were purchased under this program in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.00 Td (fiscal 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 140.00 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 50.00 128.00 Td (facilities totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.98 128.00 Td ($64.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.87 128.00 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.03 128.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.30 128.00 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.06 128.00 Td ($61.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.96 128.00 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 484.18 128.00 Td (These unsecured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 116.00 Td (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 291.58 116.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.58 116.00 Td (. Our domestic line of credit consists of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.76 116.00 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 116.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 104.00 Td (unsecured revolving credit account with Union Bank of California, which expires on May31, 2017 and is subject to covenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 92.00 Td (related to financial ratios and tangible net worth and we are in compliance with these covenants at September 27, 2014. No ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 80.00 Td (amounts have been drawn upon our domestic line of credit and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.09 80.00 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.98 80.00 Td ( of the international currency lines has been used as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 68.00 Td (guarantees as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.91 68.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.18 68.00 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 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 endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream 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 74.00 742.10 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 279.21 742.10 Td (5.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.71 742.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.71 742.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.97 742.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.18 742.10 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.68 742.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.67 742.10 Td (September28, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 74.82 730.10 Td (The increase in our ratio is primarily due increases in cash and short-term investments as well as decreases in income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (taxes payable. Our cash and cash equivalents, short-term investments, working capital and debt obligations are as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 660.60 365.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 660.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 660.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 660.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 630.60 365.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 630.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 630.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 630.60 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 425 673.6 m 486 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 673.6 m 490 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 673.6 m 551 673.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 660.6 m 486 660.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 660.6 m 551 660.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 660.6 m 486 660.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 660.6 m 551 660.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 678.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.50 677.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 62.50 664.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 664.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 664.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 650.27 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.50 650.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 650.27 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 650.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 650.27 Td (110,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 635.27 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 635.27 Td (227,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 635.27 Td (139,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 620.27 Td (Working capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 620.27 Td (563,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 620.27 Td (483,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 605.27 Td (Total debt obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 605.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 605.27 Td (2) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 581.10 Td (Contractual Obligations and Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 254.17 581.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 561.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 561.10 Td (e have no of) Tj ET Q q 0 0 0 rg BT 131.60 561.10 Td (f-balance sheet arrangements as defined by RegulationS-K of the Securities ) Tj ET Q q 0 0 0 rg BT 438.44 561.10 Td (Act of 1933. ) Tj ET Q q 0 0 0 rg BT 491.03 561.10 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 549.10 Td (summarizes our contractual obligations at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.67 549.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.94 549.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 341.68 549.10 Td (fect such obligations are expected to have on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 537.10 Td (liquidity and cash flow in future periods \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 498.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 498.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 498.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 498.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 498.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 498.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 498.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 498.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 498.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 498.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 470.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 470.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 470.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 470.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 470.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 470.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 470.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 470.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 470.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 470.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 442.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 442.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 442.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 442.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 442.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 442.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 442.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 442.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 442.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 442.60 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 227 498.6 m 282 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 498.6 m 343 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 498.6 m 413 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 498.6 m 483 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 498.6 m 548 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 442.6 m 282 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 429.6 m 282 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 427.6 m 282 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 442.6 m 343 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 429.6 m 343 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 427.6 m 343 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 442.6 m 413 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 429.6 m 413 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 427.6 m 413 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 442.6 m 483 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 429.6 m 483 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 427.6 m 483 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 442.6 m 548 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 429.6 m 548 429.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 427.6 m 548 427.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.25 502.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.65 510.68 Td (Less than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.50 502.68 Td (1year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.05 502.83 Td (1 to 3years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.05 502.83 Td (3 to 5years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.95 510.68 Td (Mor) Tj ET Q q 0 0 0 rg BT 513.91 510.68 Td (e than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.85 502.68 Td (5years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 489.17 Td (Operating lease payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.50 489.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 489.17 Td (36,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.50 489.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 489.17 Td (9,453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 489.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 489.17 Td (13,535) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 489.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 489.17 Td (8,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 489.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 489.17 Td (4,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 475.17 Td (Asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.65 475.17 Td (2,395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 475.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 475.17 Td (1,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 475.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 475.17 Td (1,177) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 461.17 Td (Purchase commitments for inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 461.17 Td (23,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 461.17 Td (23,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 461.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 461.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 461.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 447.17 Td (Purchase obligations-other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.65 447.17 Td (6,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 447.17 Td (6,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 447.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 447.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 447.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 433.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.50 433.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 433.17 Td (68,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.50 433.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 433.17 Td (39,143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 433.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 433.17 Td (14,753) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 433.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 433.17 Td (8,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 433.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 433.17 Td (5,939) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 409.10 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 50.00 397.10 Td (obligations for our deferred compensation plans aggregating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.09 397.10 Td ($29.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.98 397.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.20 397.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.46 397.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 377.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.44 377.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.71 377.10 Td (, we recorded gross unrecognized tax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.02 377.10 Td ($23.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.91 377.10 Td ( including gross interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.10 Td (penalties of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.87 365.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.76 365.10 Td (. ) Tj ET Q q 0 0 0 rg BT 152.21 365.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.66 365.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.92 365.10 Td (, we recorded gross unrecognized tax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.23 365.10 Td ($23.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.12 365.10 Td ( including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 353.10 Td (gross interest and penalties of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.36 353.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.25 353.10 Td (. Both gross unrecognized tax benefits and gross interest and penalties are classified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (as non-current liabilities in the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 285.76 341.10 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 50.00 329.10 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 447.14 329.10 Td (As a result, these amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 317.10 Td (are not included in the table above.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 297.10 Td (Changes in financial condition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 277.10 Td (Cash provided by operating activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.34 277.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.34 277.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.89 277.10 Td ($91.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.79 277.10 Td (, which included net income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.14 277.10 Td ($59.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.03 277.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.10 Td (depreciation and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.72 265.10 Td ($36.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.62 265.10 Td ( and stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.34 265.10 Td ($18.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.23 265.10 Td ( partially of) Tj ET Q q 0 0 0 rg BT 509.70 265.10 Td (fset by cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.10 Td (used by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.91 253.10 Td ($13.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.80 253.10 Td (, increases in net deferred tax assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.12 253.10 Td ($8.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.02 253.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.45 253.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.35 253.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.10 Td (other) Tj ET Q q 0 0 0 rg BT 70.00 241.10 Td (. Cash provided by operating activities in fiscal 2013 was $1) Tj ET Q q 0 0 0 rg BT 311.52 241.10 Td (15.5 million, which included net income of $66.4 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.10 Td (depreciation and amortization of $36.1 million, stock-based compensation expense of $18.9 million and $0.3 million other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 217.10 Td (fset by cash used by operating assets and liabilities of $5.1 million and increases in net deferred tax assets of $1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 205.10 Td (million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 185.10 Td (Cash used in investing activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.81 185.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.81 185.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.14 185.10 Td ($109.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.03 185.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.46 185.10 Td ($22.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.35 185.10 Td (, net, used to acquire property and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 173.10 Td (equipment and improve buildings net of proceeds from dispositions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.95 173.10 Td ($87.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.84 173.10 Td ( net purchases of available-for) Tj ET Q q 0 0 0 rg BT 514.70 173.10 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.10 Td (securities. Cash used in investing activities in fiscal 2013 of $70.7 million included $20.5 million, net, used to acquire property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.10 Td (and equipment and improve buildings and $67.3 million used to acquire Lumera and Innolight partially of) Tj ET Q q 0 0 0 rg BT 474.17 149.10 Td (fset by $17.1 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (net sales of available-for) Tj ET Q q 0 0 0 rg BT 148.36 137.10 Td (-sale securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 117.10 Td (Cash provided by financing activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.34 117.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.34 117.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.89 117.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.79 117.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.16 117.10 Td ($10.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.05 117.10 Td ( generated from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (employee stock option and purchase plans partially of) Tj ET Q q 0 0 0 rg BT 265.59 105.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.03 105.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.92 105.10 Td ( outflows due to net settlement of restricted stock. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (Cash used in financing activities in fiscal 2013 was $1) Tj ET Q q 0 0 0 rg BT 267.08 93.10 Td (1.7 million, including $24.0 million cash dividend on our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 81.10 Td (and $4.2 million due to net settlement of restricted stock partially of) Tj ET Q q 0 0 0 rg BT 321.97 81.10 Td (fset by $16.5 million generated from our employee stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (purchase plans. ) 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 50 771.2669921875 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 endstream endobj 105 0 obj <>] /Rotate 0 /Contents 106 0 R>> endobj 106 0 obj <> stream 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 (Changes in exchange rates in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.28 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.28 742.10 Td ( resulted in a decrease in cash balances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.37 742.10 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.26 742.10 Td (. Changes in exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (rates in fiscal 2013 resulted in a decrease in cash balances of $9.5 million.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 710.10 Td ( ) Tj ET Q q 0 0 0 rg BT 93.44 710.10 Td (ACCOUNTING PRONOUNCEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (See Note2. "Significant ) Tj ET Q q 0 0 0 rg BT 172.79 690.10 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 50.00 678.10 Td (recent accounting pronouncements, including the respective dates of adoption or expected adoption and ef) Tj ET Q q 0 0 0 rg BT 474.67 678.10 Td (fects on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 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 50.00 642.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 642.10 Td (TION OF) Tj ET Q q 0 0 0 rg BT 135.28 642.10 Td ( CRITICAL) Tj ET Q q 0 0 0 rg BT 187.24 642.10 Td ( ) Tj ET Q q 0 0 0 rg BT 189.18 642.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 622.10 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 50.00 610.10 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 50.00 598.10 Td (America and pursuant to the rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 300.31 598.10 Td (The preparation of these financial statements requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 271.70 586.10 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 50.00 574.10 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 50.00 562.10 Td (during the reporting period. ) Tj ET Q q 0 0 0 rg BT 162.85 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 171.48 562.10 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 50.00 550.10 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 50.00 538.10 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 50.00 518.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 498.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 498.10 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 50.00 486.10 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 50.00 474.10 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 50.00 462.10 Td (to the customer) Tj ET Q q 0 0 0 rg BT 111.10 462.10 Td (. Our products typically include a warranty and the estimated cost of product warranty claims \(based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (historical experience\) 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 50.00 438.10 Td (protection or return rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 418.10 Td (The majority of our sales are made to original equipment manufacturers \("OEMs"\), distributors, resellers and end-users ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (in the non-scientific market. Sales made to these customers do not require installation of the products by us and are not subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (to other post-delivery obligations, except in occasional instances where we have agreed to perform installation or provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (training. In those instances, we defer revenue related to installation services or training until these services have been rendered. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 370.10 Td (e allocate revenue from multiple element arrangements to the various elements based upon fair values or a selling price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (hierarchy) Tj ET Q q 0 0 0 rg BT 87.10 358.10 Td (, as more fully described in Note 2, "Significant ) Tj ET Q q 0 0 0 rg BT 280.31 358.10 Td (Accounting Policies - Revenue Recognition," in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 326.10 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 50.00 314.10 Td (revenue recognized for any reporting period could be adversely af) Tj ET Q q 0 0 0 rg BT 313.87 314.10 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 50.00 302.10 Td (cancellations of orders could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 271.93 302.10 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 50.00 290.10 Td (prices or to modify our existing sales terms may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 349.44 290.10 Td (fect on our revenue in future periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 270.10 Td (Our sales to distributors, resellers and end-user customers typically do not have customer acceptance provisions and only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (certain of our sales to OEM customers and integrators have customer acceptance provisions. Customer acceptance is generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (limited to performance under our published product specifications. For the few product sales that have customer acceptance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (provisions because of higher than published specifications, \(1\)the products are tested and accepted by the customer at our site ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (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 414.79 222.10 Td (, or \(2\)the revenue is deferred until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (customer acceptance occurs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 190.10 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 50.00 178.10 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 463.33 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 471.97 178.10 Td (e defer revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 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 74.00 146.10 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 500.19 146.10 Td (, when training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 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 74.00 114.10 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 50.00 102.10 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 82.10 Td (Long-Lived ) Tj ET Q q 0 0 0 rg BT 99.89 82.10 Td (Assets and Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 62.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 62.10 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 50.10 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 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 endstream endobj 107 0 obj <>] /Rotate 0 /Contents 108 0 R>> endobj 108 0 obj <> stream 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 (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 50.00 730.10 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 50.00 718.10 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 74.00 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 698.10 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 50.00 686.10 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 50.00 674.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 674.10 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 50.00 662.10 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 74.00 642.10 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 50.00 630.10 Td (when impaired \(see Note7 "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 264.03 630.10 Td (Assets" in the Notes to Consolidated Financial Statements\). ) Tj ET Q q 0 0 0 rg BT 504.84 630.10 Td (W) Tj ET Q q 0 0 0 rg BT 513.48 630.10 Td (e generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 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 50.00 606.10 Td (day of the fourth fiscal quarter) Tj ET Q q 0 0 0 rg BT 171.49 606.10 Td (, with any resulting impairment recorded in the fourth quarter of the fiscal year) Tj ET Q q 0 0 0 rg BT 486.39 606.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 586.10 Td (In our fiscal 2012 annual testing, we performed a qualitative assessment of the goodwill by reporting unit during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (fourth quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.25 574.10 Td ( of fiscal 2012 using the opening balance sheet as of the first day of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.39 574.10 Td (fourth quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 574.10 Td ( and concluded that it was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (more likely than not that the fair value of each of the reporting units exceeded its carrying amount. Based on our assessment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (goodwill in the reporting units was not impaired as of the first day of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.00 550.10 Td (fourth quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.25 550.10 Td ( of fiscal 2012. ) Tj ET Q q 0 0 0 rg BT 460.19 550.10 Td (As such, it was not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (necessary to perform the two-step goodwill impairment test at that time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 514.10 Td (In fiscal 2013, we elected to bypass the qualitative assessment and proceed directly to performing the first step of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 155.36 502.10 Td (This election was made because we had last performed this detailed impairment test in fiscal 2010 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (and we had subsequently added a substantial amount of goodwill balances as a result of our acquisitions of Midaz in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (quarter of fiscal 2012 and the acquisitions of Innolight and Lumera in the first quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 454.98 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.62 478.10 Td (e performed our Step 1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (test during the fourth quarter of fiscal 2013 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 50.00 454.10 Td (impairment. Management completed and reviewed the results of the Step 1 analysis and concluded that a Step 2 analysis was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (not required as the estimated fair values of both of our reporting units were substantially in excess of their carrying values. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Between the completion of that testing and the end of the fourth quarter of fiscal 2013, we noted no indications of impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (or triggering events to cause us to review goodwill for potential impairment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 394.10 Td (In fiscal 2014, we conducted a qualitative assessment of the goodwill in the SLS reporting unit during the fourth quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (of fiscal 2014 using the opening balance sheet as of the first day of the fourth quarter and concluded that it was more likely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (than not that the fair value of the reporting unit exceeded its carrying amount. In assessing the qualitative factors, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (considered the impact of these key factors: macroeconomic conditions, fluctuations in foreign currency) Tj ET Q q 0 0 0 rg BT 462.26 358.10 Td (, market and industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (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 50.00 334.10 Td (performance of our reporting units including cost factors and budgeted-to-actual revenue results. ) Tj ET Q q 0 0 0 rg BT 438.85 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 447.49 334.10 Td (e also considered our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 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 50.00 310.10 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 50.00 298.10 Td (first day of the fourth quarter of fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 228.28 298.10 Td (As such, it was not necessary to perform the two-step goodwill impairment test at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (that time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.10 Td (For our CLC reporting unit we elected to bypass the qualitative assessment in fiscal 2014 and proceeded directly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (performing the first step of goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 249.22 250.10 Td (The election was made in consideration of the lower financial performance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (the reporting unit when compared to fiscal 2013, mostly due to softness in market conditions, predominantly in the advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (packaging market. ) Tj ET Q q 0 0 0 rg BT 126.18 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 134.81 226.10 Td (e performed the Step 1 test during the fourth quarter of fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 405.66 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 414.30 226.10 Td (e determined the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (reporting unit for the Step 1 test using a 50-50% weighting of the Income \(discounted cash flow\) approach and Market \(market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (comparable\) approach. ) Tj ET Q q 0 0 0 rg BT 143.94 202.10 Td (The Income approach utilizes the discounted cash flow model to provide an estimation of fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (based on the cash flows that a business expects to generate. ) Tj ET Q q 0 0 0 rg BT 289.75 190.10 Td (These cash flows are based on forecasts developed internally by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (management which are then discounted at an after tax rate of return required by equity and debt market participants of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (business enterprise. ) Tj ET Q q 0 0 0 rg BT 130.63 166.10 Td (This rate of return or cost of capital is weighted based on the capitalization of comparable companies. ) Tj ET Q q 0 0 0 rg BT 539.75 166.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Market approach determines fair value by comparing the reporting units to comparable companies in similar lines of business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (that are publicly traded. ) Tj ET Q q 0 0 0 rg BT 147.28 142.10 Td (T) Tj ET Q q 0 0 0 rg BT 152.69 142.10 Td (otal Enterprise ) Tj ET Q q 0 0 0 rg BT 213.60 142.10 Td (V) Tj ET Q q 0 0 0 rg BT 219.71 142.10 Td (alue \(TEV\) multiples such as ) Tj ET Q q 0 0 0 rg BT 338.67 142.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 357.92 142.10 Td ( to revenues and ) Tj ET Q q 0 0 0 rg BT 425.50 142.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 444.76 142.10 Td ( to earnings \(if applicable\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (before interest and taxes of the publicly traded companies are calculated. ) Tj ET Q q 0 0 0 rg BT 343.58 130.10 Td (These multiples are then applied to the reporting unit's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (operating results to obtain an estimate of fair value. Each of these two approaches captures aspects of value in each reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (unit. ) Tj ET Q q 0 0 0 rg BT 70.38 106.10 Td (The Income approach captures our expected future performance, and the Market approach captures how investors view ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (the reporting units through other competitors. ) Tj ET Q q 0 0 0 rg BT 234.51 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.14 94.10 Td (e believe these valuation approaches are proven valuation techniques and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (methodologies for our industry and are widely accepted by investors. ) Tj ET Q q 0 0 0 rg BT 328.54 82.10 Td (As neither was perceived by us to deliver any greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (indication of value than the other) Tj ET Q q 0 0 0 rg BT 182.06 70.10 Td (, and neither approach individually computed a fair value less than the carrying value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (segment, we weighted each of the approaches equally) Tj ET Q q 0 0 0 rg BT 264.26 58.10 Td (. Management completed and reviewed the results of the Step 1 analysis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (and concluded that a Step 2 analysis was not required as the estimated fair value of the CLC reporting unit was in excess of its ) 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 50 771.2669921875 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 endstream endobj 109 0 obj <>] /Rotate 0 /Contents 110 0 R>> endobj 110 0 obj <> stream 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 (carrying value. Between the completion of that testing and the end of the fourth quarter of fiscal 2014, we noted no indications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (of impairment 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 72.50 706.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 706.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.26 706.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.36 706.10 Td ($109.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.25 706.10 Td ( of goodwill \($103.1 million in SLS and $6.4 million in CLC\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.76 706.10 Td ($31.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 694.10 Td ( of purchased intangible assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.52 694.10 Td ($107.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.41 694.10 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 50.00 674.10 Td (Inventory V) Tj ET Q q 0 0 0 rg BT 98.06 674.10 Td (aluation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 654.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 654.10 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 454.29 654.10 Td (W) Tj ET Q q 0 0 0 rg BT 462.93 654.10 Td (e write-down our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 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 50.00 630.10 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 50.00 618.10 Td (demand and when individual parts have been in inventory for greater than 12months. If actual market conditions are less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (favorable than those projected by management, additional inventory write-downs may be required which could materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.59 594.10 Td (fect our future results of operations. Due to rapidly changing forecasts and orders, additional write-downs for excess or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (obsolete inventory) Tj ET Q q 0 0 0 rg BT 123.50 582.10 Td (, while not currently expected, could be required in the future. In the event that alternative future uses of fully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (written down inventories are identified, we may experience better than normal profit mar) Tj ET Q q 0 0 0 rg BT 406.07 570.10 Td (gins when such inventory is sold. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 63.15 558.10 Td (ferences between actual results and previous estimates of excess and obsolete inventory could materially af) Tj ET Q q 0 0 0 rg BT 491.70 558.10 Td (fect our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (results of operations. ) Tj ET Q q 0 0 0 rg BT 135.91 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 144.55 546.10 Td (e write-down our demo inventory by amortizing the cost of demo inventory over a twenty month period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (starting 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 50.00 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 514.10 Td (arranty Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 494.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 494.10 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 50.00 482.10 Td (during the period of sale. ) Tj ET Q q 0 0 0 rg BT 152.57 482.10 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 50.00 470.10 Td (expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 300.63 470.10 Td (. ) Tj ET Q q 0 0 0 rg BT 305.45 470.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.09 470.10 Td (e currently establish warranty reserves based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (warranty costs for each product line. ) Tj ET Q q 0 0 0 rg BT 198.37 458.10 Td (The weighted average warranty period covered is approximately 15months. If actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 253.34 446.10 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 50.00 434.10 Td (required in future periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 414.10 Td (Stock-Based Compensation) 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 account for stock-based compensation using fair value. ) Tj ET Q q 0 0 0 rg BT 312.10 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.74 394.10 Td (e estimate the fair value of stock options granted using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (Black-Scholes Merton model and estimate the fair value of market-based performance restricted stock units granted using a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (Monte Carlo simulation model. ) Tj ET Q q 0 0 0 rg BT 177.86 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 186.50 370.10 Td (e use historical data to estimate pre-vesting option forfeitures and record stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (compensation expense only for those awards that are expected to vest. ) Tj ET Q q 0 0 0 rg BT 333.06 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 341.69 358.10 Td (e amortize the fair value of stock options on a straight-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (line basis over the requisite service periods of the awards, which are generally the vesting periods. ) Tj ET Q q 0 0 0 rg BT 445.24 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 453.88 346.10 Td (e value service-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (restricted stock units using the intrinsic value method and amortize the value on a straight-line basis over the restriction period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 322.10 Td (e value market-based performance restricted stock units using a Monte Carlo simulation model and amortize the value over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (the performance period, with no adjustment in future periods, based upon the actual shareholder return over the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 278.10 Td (U.S.Generally ) Tj ET Q q 0 0 0 rg BT 135.66 278.10 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 175.36 278.10 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 50.00 266.10 Td (developed for use in valuing employee stock options. ) Tj ET Q q 0 0 0 rg BT 265.61 266.10 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 50.00 254.10 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 50.00 242.10 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 50.00 230.10 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 50.00 218.10 Td (considers historical volatility and market-based implied volatility) Tj ET Q q 0 0 0 rg BT 310.40 218.10 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 50.00 206.10 Td (employee data and could dif) Tj ET Q q 0 0 0 rg BT 163.11 206.10 Td (fer from actual forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 186.10 Td (See Note12 "Employee Stock ) Tj ET Q q 0 0 0 rg BT 197.23 186.10 Td (A) Tj ET Q q 0 0 0 rg BT 203.53 186.10 Td (ward, Option and Benefit Plans" in the notes to the Consolidated Financial Statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (for a description of our stock-based employee compensation plans and the assumptions we use to calculate the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (stock-based employee compensation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 142.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 122.10 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 50.00 110.10 Td (provision \(benefit\) in each of the jurisdictions in which we operate. ) Tj ET Q q 0 0 0 rg BT 321.41 110.10 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 98.10 Td (provision \(benefit\) together with assessing temporary dif) Tj ET Q q 0 0 0 rg BT 276.99 98.10 Td (ferences resulting from dif) Tj ET Q q 0 0 0 rg BT 383.15 98.10 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 86.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 136.74 86.10 Td (These dif) Tj ET Q q 0 0 0 rg BT 174.05 86.10 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 74.10 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 54.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 54.10 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 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 endstream endobj 111 0 obj <>] /Rotate 0 /Contents 112 0 R>> endobj 112 0 obj <> stream 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 50.00 742.10 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 50.00 730.10 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 50.00 718.10 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 50.00 706.10 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 50.00 694.10 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 514.91 694.10 Td (ged to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (income in the period such determination was made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 662.10 Td (Federal and state income taxes have not been provided for 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 50.00 650.10 Td (because such earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 313.60 650.10 Td (The total amount of unremitted earnings \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (accumulated translation adjustments\) 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 50.00 626.10 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.31 626.10 Td ($429.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.20 626.10 Td ( at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.57 626.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.57 626.10 Td (year) Tj ET Q q 0 0 0 rg BT 263.08 626.10 Td (-end. ) Tj ET Q q 0 0 0 rg BT 285.67 626.10 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 50.00 614.10 Td (upon repatriation of such earnings is not practicably determinable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (ITEM 7A.QUANTIT) Tj ET Q q 0 0 0 rg BT 149.82 594.10 Td (A) Tj ET Q q 0 0 0 rg BT 156.30 594.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 182.71 594.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 245.58 594.10 Td (A) Tj ET Q q 0 0 0 rg BT 252.06 594.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 351.54 594.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 386.92 594.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 434.24 594.10 Td ( RISK) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (Market risk disclosur) Tj ET Q q 0 0 0 rg BT 142.04 574.10 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 554.10 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 485.61 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.25 554.10 Td (e do not use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (derivative financial instruments for speculative or trading purposes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 71.48 522.10 Td (est rate sensitivity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 502.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 502.10 Td ( portion of our investment portfolio is composed of fixed income securities. ) Tj ET Q q 0 0 0 rg BT 385.70 502.10 Td (These securities are subject to interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (risk and will fall in value if market interest rates increase. If interest rates were to increase immediately \(whether due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (changes in overall market rates or credit worthiness of the issuers of our individual securities\) and uniformly by 10% from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (levels at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.70 466.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.70 466.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.20 466.10 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 50.00 454.10 Td (assets, would decline by an immaterial amount due to their short-term maturities. ) Tj ET Q q 0 0 0 rg BT 376.96 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 385.60 454.10 Td (e have the ability to generally hold our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 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 523.85 442.10 Td (fected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (any significant degree by the ef) Tj ET Q q 0 0 0 rg BT 175.60 430.10 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 522.32 430.10 Td (, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 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 74.00 398.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.66 398.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.66 398.10 Td (year) Tj ET Q q 0 0 0 rg BT 150.16 398.10 Td (-end, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 305.72 398.10 Td (-sale debt securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.13 398.10 Td ($227.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.02 398.10 Td (, all of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (classified as short-term investments. Gross unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 398.32 386.10 Td (-sale debt securities were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.60 386.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.49 386.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 374.10 Td ($\(45,000\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.10 374.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 158.76 374.10 Td (, at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.63 374.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.63 374.10 Td (year) Tj ET Q q 0 0 0 rg BT 237.14 374.10 Td (-end. ) Tj ET Q q 0 0 0 rg BT 259.36 374.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.01 374.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.01 374.10 Td (year) Tj ET Q q 0 0 0 rg BT 335.52 374.10 Td (-end, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 491.07 374.10 Td (-sale debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (securities was $139.7million, all of which was classified as short-term investments. Gross unrealized gains and losses on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (available-for) Tj ET Q q 0 0 0 rg BT 100.88 350.10 Td (-sale debt securities were $0.6 million and \($16,000\), respectively) Tj ET Q q 0 0 0 rg BT 364.32 350.10 Td (, at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.19 350.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.19 350.10 Td (year) Tj ET Q q 0 0 0 rg BT 442.70 350.10 Td (-end.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 330.10 Td (eign curr) Tj ET Q q 0 0 0 rg BT 104.34 330.10 Td (ency exchange risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 310.10 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 50.00 298.10 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 242.28 298.10 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 502.08 298.10 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 320.34 286.10 Td (Y) Tj ET Q q 0 0 0 rg BT 326.56 286.10 Td (en, the Korean ) Tj ET Q q 0 0 0 rg BT 387.47 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 396.10 286.10 Td (on and the Chinese Renminbi. ) Tj ET Q q 0 0 0 rg BT 518.87 286.10 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (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 504.09 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 512.73 274.10 Td (e attempt to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 289.77 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 298.40 262.10 Td (e utilize derivative instruments, primarily forward contracts with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (maturities of three months or less, to manage our exposure associated with anticipated cash flows and net asset and liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (positions denominated in foreign currencies. Gains and losses on the forward contracts are mitigated by gains and losses on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (underlying instruments. ) Tj ET Q q 0 0 0 rg BT 147.31 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 155.95 226.10 Td (e do not use derivative financial instruments for trading purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 206.10 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 50.00 194.10 Td (denominated transactions generally expected to occur within the next 12months. ) Tj ET Q q 0 0 0 rg BT 376.39 194.10 Td (These cash flow hedges are designated for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 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 50.00 170.10 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 50.00 158.10 Td (earnings. See Note 6 "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 287.08 158.10 Td (Activities".) 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 do not anticipate any material adverse ef) Tj ET Q q 0 0 0 rg BT 251.54 138.10 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 50.00 126.10 Td (flows resulting from the use of these instruments. ) Tj ET Q q 0 0 0 rg BT 250.06 126.10 Td (There can be no assurance that these strategies will be ef) Tj ET Q q 0 0 0 rg BT 476.45 126.10 Td (fective or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (transaction losses can be minimized or forecasted accurately) Tj ET Q q 0 0 0 rg BT 291.19 114.10 Td (. For example, the Japanese ) Tj ET Q q 0 0 0 rg BT 403.84 114.10 Td (Y) Tj ET Q q 0 0 0 rg BT 410.06 114.10 Td (en, the Euro and the Korean ) Tj ET Q q 0 0 0 rg BT 524.56 114.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.19 114.10 Td (on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (have recently decreased in value. ) Tj ET Q q 0 0 0 rg BT 184.75 102.10 Td (While we model currency valuations and fluctuations, these may not ultimately be accurate. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (a financial counterparty to any of our hedging arrangements experiences financial dif) Tj ET Q q 0 0 0 rg BT 390.51 90.10 Td (ficulties or is otherwise unable to honor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.10 Td (the terms of the foreign currency hedge, we may experience material financial losses. In the current economic environment, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (risk of failure of a financial party remains high.) 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 50 771.2669921875 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 endstream endobj 113 0 obj <>] /Rotate 0 /Contents 114 0 R>> endobj 114 0 obj <> stream 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 74.00 742.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.50 742.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.76 742.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.02 742.10 Td ($201.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.91 742.10 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 50.00 730.10 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 261.06 730.10 Td ($67.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 317.45 737.03 241.60 -9.09 re f /GS0 gs q 0 0 0 rg BT 317.45 730.10 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 50.00 725.03 30.27 -9.09 re f /GS0 gs q 0 0 0 rg BT 50.00 718.10 Td (dollar) Tj ET Q q 0 0 0 rg BT 72.77 718.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 698.10 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 50.00 686.10 Td (results of operations, cash flows or financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 666.10 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 436.66 666.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.92 666.10 Td (. ) Tj ET Q q 0 0 0 rg BT 521.74 666.10 Td (The table ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 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 50.00 642.10 Td (contract exchange rate as of the contract maturity date and fair value. ) Tj ET Q q 0 0 0 rg BT 328.85 642.10 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 50.00 630.10 Td (contracts valued at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.47 630.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.73 630.10 Td ( rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 Td (Forward contracts to sell \(buy\) foreign currencies \(in thousands, except contract rates\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 571.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 571.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 571.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 571.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 571.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 571.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 543.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 543.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 543.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 543.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 543.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 543.60 60.00 -14.00 re f /GS0 gs 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 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 403.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 403.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 403.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 403.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 403.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 403.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 375.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 375.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 375.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 375.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 375.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 375.60 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 373.5 571.6 m 433.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 571.6 m 497.5 571.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 571.6 m 561.5 571.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.05 583.68 Td (A) Tj ET Q q 0 0 0 rg BT 394.23 583.68 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.65 575.68 Td (Contract Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.20 583.68 Td (U.S. Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.10 575.68 Td (Contract ) Tj ET Q q 0 0 0 rg BT 473.61 575.68 Td (V) Tj ET Q q 0 0 0 rg BT 478.65 575.68 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.05 575.83 Td (U.S. Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 562.17 Td (Non-Designated - For US Dollars:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 548.17 Td (Euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 548.17 Td (1.3197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 548.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 548.22 Td (\(31,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 548.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 548.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 548.17 Td (1,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 534.17 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 534.17 Td (103.861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 534.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 534.17 Td (609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 534.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 534.22 Td (\(29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 534.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 520.17 Td (British Pound) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 520.17 Td (1.6574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 520.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 520.17 Td (3,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 520.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 520.22 Td (\(63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 520.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 506.17 Td (Korean Won) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 506.17 Td (1,019.730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 506.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 506.17 Td (2,991) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 506.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 506.22 Td (\(72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 506.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 492.17 Td (Chinese Renminbi) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 492.17 Td (6.1730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 492.17 Td (15,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 492.17 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 478.17 Td (Singapore Dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 478.17 Td (1.2485) 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 467.80 478.22 Td (\(1,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 478.17 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 450.17 Td (Non-Designated - For Euros:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.17 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 436.17 Td (103.5502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 436.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 436.17 Td (14,004) 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 539.30 436.22 Td (\(137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 436.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 408.17 Td (Designated - For US Dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 394.17 Td (Euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 394.17 Td (1.3936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 394.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 394.22 Td (\(11,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 394.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 394.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 394.17 Td (950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 366.17 Td (Designated - for Euros:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 352.17 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 352.17 Td (103.9544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 352.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 352.17 Td (12,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 352.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 352.22 Td (\(63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 352.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 324.10 Td (ITEM 8.FINANCIAL) Tj ET Q q 0 0 0 rg BT 152.79 324.10 Td ( ST) Tj ET Q q 0 0 0 rg BT 166.78 324.10 Td (A) Tj ET Q q 0 0 0 rg BT 173.26 324.10 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 224.11 324.10 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 315.87 324.10 Td (AR) Tj ET Q q 0 0 0 rg BT 329.96 324.10 Td (Y) Tj ET Q q 0 0 0 rg BT 336.81 324.10 Td ( DA) Tj ET Q q 0 0 0 rg BT 353.01 324.10 Td (T) Tj ET Q q 0 0 0 rg BT 358.94 324.10 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 304.10 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 50.00 292.10 Td (are attached hereto and incorporated by reference herein. ) Tj ET Q q 0 0 0 rg BT 279.96 292.10 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 50.00 280.10 Td (page67 of this annual report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 256.10 Td (ITEM 9.CHANGES IN ) Tj ET Q q 0 0 0 rg BT 161.68 256.10 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 275.97 256.10 Td (WITH ) Tj ET Q q 0 0 0 rg BT 306.25 256.10 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 356.07 256.10 Td (ANTS ON ) Tj ET Q q 0 0 0 rg BT 402.19 256.10 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 473.59 256.10 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 553.87 256.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.00 244.10 Td (DISCLOSURE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 224.10 Td (Not applicable.) 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 50 771.2669921875 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 endstream endobj 115 0 obj <>] /Rotate 0 /Contents 116 0 R>> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (55) 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 done 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 (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.67 510.25 Td (, utilizing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (the criteria set forth by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 274.49 498.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 347.90 498.25 Td (T) Tj ET Q q 0 0 0 rg BT 353.66 498.25 Td (readway Commission \("COSO"\) in Internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (Control-Integrated Framework \(1992\). Based on the assessment by management, we determined that our internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (financial reporting was ef) Tj ET Q q 0 0 0 rg BT 152.28 474.25 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.64 474.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.90 474.25 Td (. ) Tj ET Q q 0 0 0 rg BT 288.72 474.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 314.36 474.25 Td (fectiveness of our internal control over financial reporting as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 462.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.09 462.25 Td ( has been audited by Deloitte& ) Tj ET Q q 0 0 0 rg BT 270.04 462.25 Td (T) Tj ET Q q 0 0 0 rg BT 275.45 462.25 Td (oucheLLP) Tj ET Q q 0 0 0 rg BT 318.50 462.25 Td (, our independent registered public accounting firm, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (stated in their report which appears below) Tj ET Q q 0 0 0 rg BT 217.07 450.25 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 50.00 72.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 72.25 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 222.26 72.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 409.21 72.25 Td (fect, our internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 60.25 Td (financial reporting.) 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 50 771.2669921875 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 endstream endobj 117 0 obj <>] /Rotate 0 /Contents 118 0 R>> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (56) 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 Coherent,Inc.:) 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 audited the internal control over financial reporting of Coherent,Inc. and its subsidiaries \(collectively) Tj ET Q q 0 0 0 rg BT 516.56 702.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td ("Company"\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.54 690.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.80 690.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 350.31 690.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 408.00 690.25 Td (olIntegrated Framework \(1992\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 220.92 678.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 294.33 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 300.08 678.25 Td (readway Commission. ) Tj ET Q q 0 0 0 rg BT 391.84 678.25 Td (The Company's management is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (responsible for maintaining ef) Tj ET Q q 0 0 0 rg BT 170.06 666.25 Td (fective internal control over financial reporting and for its assessment of the ef) Tj ET Q q 0 0 0 rg BT 483.66 666.25 Td (fectiveness of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (internal control over financial reporting included in the accompanying Management's Report on Internal Control Over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (Financial Reporting. Our responsibility is to express an opinion on the Company's internal control over financial reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (based on our audit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 610.25 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 398.94 610.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (States\). ) Tj ET Q q 0 0 0 rg BT 82.04 598.25 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 511.69 598.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 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 50.00 574.25 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 50.00 562.25 Td (and operating ef) Tj ET Q q 0 0 0 rg BT 114.79 562.25 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 50.00 550.25 Td (considered necessary in the circumstances. ) Tj ET Q q 0 0 0 rg BT 223.64 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 232.28 550.25 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 74.00 530.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 530.25 Td ( company's internal control over financial reporting is a process designed by) Tj ET Q q 0 0 0 rg BT 384.79 530.25 Td (, or under the supervision of, the company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 Td (principal executive and principal financial of) Tj ET Q q 0 0 0 rg BT 229.46 518.25 Td (ficers, or persons performing similar functions, and ef) Tj ET Q q 0 0 0 rg BT 445.05 518.25 Td (fected by the company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 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 50.00 494.25 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 50.00 482.25 Td (principles. ) Tj ET Q q 0 0 0 rg BT 93.88 482.25 Td (A) Tj ET Q q 0 0 0 rg BT 100.55 482.25 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 50.00 470.25 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 50.00 458.25 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 50.00 446.25 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 50.00 434.25 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 50.00 422.25 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 50.00 410.25 Td (could have a material ef) Tj ET Q q 0 0 0 rg BT 145.88 410.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 390.25 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 50.00 378.25 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 50.00 366.25 Td (timely basis. ) Tj ET Q q 0 0 0 rg BT 102.50 366.25 Td (Also, projections of any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 278.38 366.25 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 50.00 354.25 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 50.00 342.25 Td (compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 322.25 Td (In our opinion, the Company maintained, in all material respects, ef) Tj ET Q q 0 0 0 rg BT 344.58 322.25 Td (fective internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.26 310.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 275.77 310.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 333.46 310.25 Td (olIntegrated Framework \(1992\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.10 310.25 Td ( issued by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 166.20 298.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 239.61 298.25 Td (T) Tj ET Q q 0 0 0 rg BT 245.37 298.25 Td (readway Commission.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 278.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 278.25 Td (e have also audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 391.44 278.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (States\), 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 345.73 266.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.99 266.25 Td (, of the Company and our report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (dated November 25, 2014, expressed an unqualified opinion on those consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (/s/ DELOITTE& ) Tj ET Q q 0 0 0 rg BT 122.86 214.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.79 214.25 Td (OUCHELLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.25 Td (San Jose, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 179.25 Td (November 25, 2014) 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 50 771.2669921875 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 endstream endobj 119 0 obj <>] /Rotate 0 /Contents 120 0 R>> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (57) 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 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 endstream endobj 121 0 obj <>] /Rotate 0 /Contents 122 0 R>> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (58) 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 2015 \(the "2015 Proxy Statement"\) 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 2015 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 November24, 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (are 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 (53) 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 (Helene Simonet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.60 284.32 Td (62) 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 (54) 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 (55) 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 (66) 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 (46) 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 (Helene Simonet.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.53 88.25 Td (Ms.Simonet has served as our Executive ) Tj ET Q q 0 0 0 rg BT 316.54 88.25 Td (V) Tj ET Q q 0 0 0 rg BT 323.16 88.25 Td (ice President and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 468.77 88.25 Td (ficer since ) Tj ET Q q 0 0 0 rg BT 512.08 88.25 Td (April 2002. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.25 Td (Ms.Simonet served as ) Tj ET Q q 0 0 0 rg BT 142.87 76.25 Td (V) Tj ET Q q 0 0 0 rg BT 149.49 76.25 Td (ice President of Finance of our former Medical Group and ) Tj ET Q q 0 0 0 rg BT 384.79 76.25 Td (V) Tj ET Q q 0 0 0 rg BT 391.41 76.25 Td (ice President of Finance, Photonics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.25 Td (Division from December 1999 to ) Tj ET Q q 0 0 0 rg BT 184.70 64.25 Td (April 2002. Prior to joining Coherent, she spent over twenty years in senior finance positions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.25 Td (at Raychem Corporation's Division and Corporate or) Tj ET Q q 0 0 0 rg BT 261.02 52.25 Td (ganizations, including ) Tj ET Q q 0 0 0 rg BT 351.66 52.25 Td (V) Tj ET Q q 0 0 0 rg BT 358.28 52.25 Td (ice President of Finance of Raynet Corporation. ) 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 50 771.2669921875 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 endstream endobj 123 0 obj <>] /Rotate 0 /Contents 124 0 R>> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Since October 2014, Ms. Simonet has served as a member of the Board of Directors of Rogers Corporation, a NYSE-listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (provider of engineered materials. Ms.Simonet has both Master's and Bachelor degrees from the University of Leuven, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Belgium.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 Td (Mark Sobey) Tj ET Q q 0 0 0 rg BT 121.49 698.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.99 698.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 145.66 698.10 Td (.Sobey was appointed Executive ) Tj ET Q q 0 0 0 rg BT 280.44 698.10 Td (V) Tj ET Q q 0 0 0 rg BT 287.06 698.10 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 50.00 686.10 Td (Systems \(SLS\) in ) Tj ET Q q 0 0 0 rg BT 121.96 686.10 Td (April 2010. He has served as Senior ) Tj ET Q q 0 0 0 rg BT 268.41 686.10 Td (V) Tj ET Q q 0 0 0 rg BT 275.03 686.10 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 50.00 674.10 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 528.50 674.10 Td (.Sobey ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (has spent over 20years in the Laser and Fiber Optics ) Tj ET Q q 0 0 0 rg BT 264.48 662.10 Td (T) Tj ET Q q 0 0 0 rg BT 269.89 662.10 Td (elecommunications industries, including roles as Senior ) Tj ET Q q 0 0 0 rg BT 495.50 662.10 Td (V) Tj ET Q q 0 0 0 rg BT 502.12 662.10 Td (ice President ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (Product Management at Cymer from January 2006 through June 2007 and previously as Senior ) Tj ET Q q 0 0 0 rg BT 433.63 650.10 Td (V) Tj ET Q q 0 0 0 rg BT 440.25 650.10 Td (ice President Global Sales at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 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 50.00 626.10 Td (Strathclyde in Scotland.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 606.10 Td (Paul Sechrist. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.60 606.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 144.27 606.10 Td (. Paul Sechrist was appointed Executive ) Tj ET Q q 0 0 0 rg BT 306.55 606.10 Td (V) Tj ET Q q 0 0 0 rg BT 313.17 606.10 Td (ice President, ) Tj ET Q q 0 0 0 rg BT 369.37 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 378.00 606.10 Td (orldwide Sales and Service in March 201) Tj ET Q q 0 0 0 rg BT 542.59 606.10 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (He has over 30 years of experience with Coherent, including roles as Senior ) Tj ET Q q 0 0 0 rg BT 356.39 594.10 Td (V) Tj ET Q q 0 0 0 rg BT 363.01 594.10 Td (ice President and General Manager of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (Commercial Lasers and Components from October 2008 to March 201) Tj ET Q q 0 0 0 rg BT 333.17 582.10 Td (1, ) Tj ET Q q 0 0 0 rg BT 342.99 582.10 Td (V) Tj ET Q q 0 0 0 rg BT 349.61 582.10 Td (ice President and General Manager of Specialty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (Laser Systems, Santa Clara from March 2008 to October 2008 and ) Tj ET Q q 0 0 0 rg BT 319.20 570.10 Td (V) Tj ET Q q 0 0 0 rg BT 325.82 570.10 Td (ice President for Components from ) Tj ET Q q 0 0 0 rg BT 468.30 570.10 Td (April 2005 to October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (2008. Mr) Tj ET Q q 0 0 0 rg BT 89.17 558.10 Td (. Sechrist received an ) Tj ET Q q 0 0 0 rg BT 176.64 558.10 Td (AA) Tj ET Q q 0 0 0 rg BT 190.53 558.10 Td ( degree from San Jose City College, with Physics studies at California State University) Tj ET Q q 0 0 0 rg BT 537.60 558.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (Hayward.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 526.10 Td (Luis Spinelli.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.78 526.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 148.45 526.10 Td (.Spinelli has served as our Executive ) Tj ET Q q 0 0 0 rg BT 300.46 526.10 Td (V) Tj ET Q q 0 0 0 rg BT 307.08 526.10 Td (ice President and Chief ) Tj ET Q q 0 0 0 rg BT 402.42 526.10 Td (T) Tj ET Q q 0 0 0 rg BT 407.83 526.10 Td (echnology Of) Tj ET Q q 0 0 0 rg BT 462.36 526.10 Td (ficer since February ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (2004. Mr) Tj ET Q q 0 0 0 rg BT 86.67 514.10 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 50.00 502.10 Td (including ) Tj ET Q q 0 0 0 rg BT 90.09 502.10 Td (V) Tj ET Q q 0 0 0 rg BT 96.71 502.10 Td (ice President, ) Tj ET Q q 0 0 0 rg BT 152.53 502.10 Td (Advanced Research from ) Tj ET Q q 0 0 0 rg BT 256.10 502.10 Td (April 2000 to September 2002 and ) Tj ET Q q 0 0 0 rg BT 397.01 502.10 Td (V) Tj ET Q q 0 0 0 rg BT 403.63 502.10 Td (ice President, Corporate Research from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (September 2002 to February 2004. Mr) Tj ET Q q 0 0 0 rg BT 203.31 490.10 Td (.Spinelli has led the ) Tj ET Q q 0 0 0 rg BT 286.64 490.10 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 50.00 478.10 Td (is to identify and evaluate new and emer) Tj ET Q q 0 0 0 rg BT 211.70 478.10 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 50.00 466.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 61.67 466.10 Td (.Spinelli holds a degree in Electrical Engineering from the University of Buenos ) Tj ET Q q 0 0 0 rg BT 387.14 466.10 Td (Aires, ) Tj ET Q q 0 0 0 rg BT 413.25 466.10 Td (Ar) Tj ET Q q 0 0 0 rg BT 423.62 466.10 Td (gentina with post-graduate work ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (at the Massachusetts Institute of ) Tj ET Q q 0 0 0 rg BT 180.63 454.10 Td (T) Tj ET Q q 0 0 0 rg BT 186.04 454.10 Td (echnology) Tj ET Q q 0 0 0 rg BT 227.04 454.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 74.00 434.10 Td (Br) Tj ET Q q 0 0 0 rg BT 83.63 434.10 Td (et M. DiMar) Tj ET Q q 0 0 0 rg BT 133.53 434.10 Td (co.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.46 434.10 Td (Mr) Tj ET Q q 0 0 0 rg BT 167.13 434.10 Td (.DiMarco has served as our Executive ) Tj ET Q q 0 0 0 rg BT 324.12 434.10 Td (V) Tj ET Q q 0 0 0 rg BT 330.74 434.10 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 50.00 422.10 Td (our Corporate Secretary since February 2007. From February 2003 until May 2006, Mr) Tj ET Q q 0 0 0 rg BT 398.82 422.10 Td (.DiMarco was a member and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (October 1995 until January 2003 was an associate at ) Tj ET Q q 0 0 0 rg BT 262.26 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 271.30 410.10 Td (ilson Sonsini Goodrich& Rosati, P) Tj ET Q q 0 0 0 rg BT 411.31 410.10 Td (.C., a law firm. Mr) Tj ET Q q 0 0 0 rg BT 485.75 410.10 Td (.DiMarco ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 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 50.00 386.10 Td (the University of Southern California. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (ITEM 1) Tj ET Q q 0 0 0 rg BT 83.62 362.10 Td (1.EXECUTIVE COMPENSA) Tj ET Q q 0 0 0 rg BT 219.56 362.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 342.10 Td (Information regarding: \(i\)executive of) Tj ET Q q 0 0 0 rg BT 228.76 342.10 Td (ficer and director compensation will be set forth under the captions "Election of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (DirectorsDirector Compensation" and "Executive Of) Tj ET Q q 0 0 0 rg BT 271.25 330.10 Td (ficers and Executive Compensation" and \(ii\)compensation committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (interlocks will be set forth under the caption "Executive Of) Tj ET Q q 0 0 0 rg BT 286.33 318.10 Td (ficers and Executive CompensationCompensation Committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (Interlocks and Insider Participation and Committee Independence" in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.27 306.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.27 306.10 Td ( Proxy Statement or included in a Form10-K/A) Tj ET Q q 0 0 0 rg BT 554.80 306.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (as an amendment to our Form10-K for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.37 294.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.63 294.10 Td (. ) Tj ET Q q 0 0 0 rg BT 379.45 294.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.50 294.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 294.10 Td ( Proxy Statement or Form10-K/A) Tj ET Q q 0 0 0 rg BT 553.88 294.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 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 342.98 282.10 Td (.) 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/F1 10.00 Tf ET q 0 0 0 rg BT 483.65 676.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 676.17 Td (79,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 662.17 Td (Tax fees\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 662.17 Td (166,382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 662.17 Td (135,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 648.17 Td (All other fees\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 648.17 Td (2,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 648.17 Td (2,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 634.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 634.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.60 634.17 Td (2,087,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 634.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 634.17 Td (2,034,663) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (_____________________________________________) Tj ET Q BT 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 614.32 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 79.00 599.32 Td (3.3*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 599.32 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 69.00 574.32 Td (10.1*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 574.32 Td (Amended and Restated Employee Stock Purchase Plan. \(Previously filed as Exhibit10.1 to FormS-8 filed on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 564.32 Td (June 12, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 547.93 Td (10.2*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 547.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 549.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 549.32 Td (Coherent Employee Retirement and Investment Plan. \(Previously filed as Exhibit10.23 to Form8,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 539.32 Td (Amendment No.1 to Annual Report on Form10-K for the fiscal year ended September25, 1982\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 524.32 Td (10.3*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 524.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 524.32 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 68.00 507.93 Td (10.4*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 507.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 509.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 509.32 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 68.00 492.93 Td (10.5*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 492.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 494.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 494.32 Td (Change of Control Severance Plan, as amended and restated effective December7, 2012. \(Previously filed as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 484.32 Td (Exhibit10.1 to Form8-K, filed on December 12, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 467.93 Td (10.6*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 467.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 469.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 468.42 Td (Variable Compensation Plan, as amended. \(Previously filed as Exhibit 10.7 to Form 10-K for the fiscal year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 458.42 Td (ended October 1, 2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.93 Td (10.7*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 442.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 444.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 443.42 Td (Fiscal 2012 Variable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.2 to Form 10-Q for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 433.42 Td (fiscal quarter ended December 29, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 417.93 Td (10.8*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 417.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 419.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 418.42 Td (Fiscal 2013 Variable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.1 to Form 10-Q for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 408.42 Td (fiscal quarter ended December 28, 2013\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 54.75 383.88 Td (10.9***) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 383.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 393.42 Td (Fiscal 2014 Variable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.2 to Form 10-Q for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 383.42 Td (fiscal quarter ended December 28, 2013\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.25 358.88 Td (10.10*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 358.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 358.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 368.42 Td (Supplementary Retirement Plan. \(Previously filed as Exhibit10.5 to Form10-Q for the quarter ended April1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 358.42 Td (2006\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.65 333.88 Td (10.1) Tj ET Q q 0 0 0 rg BT 79.49 333.88 Td (1*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.49 333.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 333.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 343.42 Td (2005 Deferred Compensation Plan. \(Previously filed as Exhibit10.1 to Form10-Q for the fiscal quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 333.42 Td (ended December 31, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.25 308.88 Td (10.12*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 308.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 308.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 318.42 Td (Form of 2001 Stock Plan Terms and Conditions of Restricted Stock Units. \(Previously filed as Exhibit10.1 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 308.42 Td (Form8-K filed on November27, 2009\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.25 283.88 Td (10.13*) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 283.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 283.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 293.42 Td (Form of 2001 Stock Plan Amended Global Stock Option Agreement. \(Previously filed as Exhibit10.2 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 283.42 Td (Form8-K filed on November27, 2009\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 258.67 Td (10.14*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 258.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 268.42 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 116.50 258.42 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 66.25 233.67 Td (10.15*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 233.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 243.42 Td (Amended and Restated Promissory Note \(Base Rate\) \(Previously filed as Exhibit 10.2 to Form 8-K filed on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 233.42 Td (June 5, 2012\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 208.67 Td (10.16*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 208.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 218.42 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 116.50 208.42 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 66.25 183.67 Td (10.17*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 183.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 193.42 Td (Form of Indemnification Agreement \(Previously filed as Exhibit10.18 to Form10-K for the year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 183.42 Td (October 2, 2010\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 158.67 Td (10.18*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 168.42 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 116.50 158.42 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 60.75 133.67 Td (10.19*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 143.42 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 116.50 133.42 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 60.75 108.67 Td (10.20*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 118.42 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 116.50 108.42 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 83.67 Td (10.21*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 94.32 Td (Form of Performance RSU Agreement under the 2011 Equity Incentive Plan. \(Previously filed as Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 84.32 Td (10.22 to Form 10-K for the fiscal year ended October 1, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 58.67 Td (10.22*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 69.32 Td (Form of Time-Based RSU Agreement under the 2011 Equity Incentive Plan. \(Previously filed as Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 59.32 Td (10.23 to Form 10-K for the fiscal year ended October 1, 2011\)) Tj ET Q BT /F1 10.00 Tf ET 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 endstream endobj 131 0 obj <>] /Rotate 0 /Contents 132 0 R>> endobj 132 0 obj <> stream 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 64.00 738.07 Td (10.23* ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 738.07 Td (Form of Performance RSU Agreement under the 2011 Equity Incentive Plan \(Amended\) \(Previously filed as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 728.07 Td (Exhibit 10.23 to Form 10-K for the fiscal year ended September 29, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 713.07 Td (10.24*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 713.07 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 116.50 703.07 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed November 14, 2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 688.07 Td (10.25*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 688.07 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 116.50 678.07 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 78.65 663.07 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 663.07 Td (Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 648.07 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 648.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 648.07 Td (Consent of Independent Registered Public Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 633.07 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 633.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 633.07 Td (Power of Attorney \(see signature page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 618.07 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 607.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 617.17 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 116.50 607.17 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 78.65 593.07 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 581.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 591.17 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 116.50 581.17 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 78.65 567.07 Td (32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 556.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 566.17 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 116.50 556.17 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 542.07 Td (32.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 541.17 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 116.50 531.17 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 50.00 515.00 Td (__________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 494.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 494.17 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 52.00 478.68 Td (**) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 480.07 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 52.00 463.68 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 464.17 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 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 endstream endobj 133 0 obj <>] /Rotate 0 /Contents 134 0 R>> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (64) 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 25, 2014) 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 Helene Simonet, and each of them individually) Tj ET Q q 0 0 0 rg BT 384.84 562.65 Td (, as his attorney-in-fact, each with full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.65 Td (power of substitution, for him in any and all capacities to sign any and all amendments to this Report on Form10-K, and to file ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.65 Td (the same with, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.65 Td (Commission, hereby ratifying and confirming all that said attorney-in-fact, or his or her substitute, may do or cause to be done ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.65 Td (by virtue 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 25, 2014) 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 122.70 413.82 Td (/s/HELENE SIMONET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.40 399.72 Td (Helene Simonet) 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 25, 2014) 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 25, 2014) 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 25, 2014) 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 25, 2014) 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 25, 2014) 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 25, 2014) 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 25, 2014) 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 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 endstream endobj 135 0 obj <>] /Rotate 0 /Contents 136 0 R>> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (65) 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 (2014) 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 (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.24 562.25 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.) Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 49.5 372.75 m 294.5 372.75 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 372.75 m 561.5 372.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 377.42 Td (/s/JOHN R. AMBROSEO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 377.42 Td (/s/HELENE SIMONET) 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 (Helene Simonet) 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 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 endstream endobj 137 0 obj <>] /Rotate 0 /Contents 138 0 R>> endobj 138 0 obj <> stream 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 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 Coherent,Inc.:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 682.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 682.25 Td (e have audited the accompanying consolidated balance sheets of Coherent,Inc. and its subsidiaries \(collectively) Tj ET Q q 0 0 0 rg BT 529.61 682.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td ("Company"\) as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.54 670.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.80 670.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.24 670.25 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.51 670.25 Td (, and the related consolidated statements of operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (comprehensive income, stockholders' equity) Tj ET Q q 0 0 0 rg BT 226.66 658.25 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 479.61 658.25 Td (September27, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 646.25 Td (. ) Tj ET Q q 0 0 0 rg BT 74.82 646.25 Td (These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (express an opinion on these consolidated financial statements based on our audits.) 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 conducted our audits in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 402.83 614.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (States\). ) Tj ET Q q 0 0 0 rg BT 82.04 602.25 Td (Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (statements are free of material misstatement. ) Tj ET Q q 0 0 0 rg BT 230.76 590.25 Td (An audit includes examining, on a test basis, evidence supporting the amounts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (disclosures in the financial statements. ) Tj ET Q q 0 0 0 rg BT 206.07 578.25 Td (An audit also includes assessing the accounting principles used and significant estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (made by management, as well as evaluating the overall financial statement presentation. ) Tj ET Q q 0 0 0 rg BT 405.24 566.25 Td (W) Tj ET Q q 0 0 0 rg BT 413.88 566.25 Td (e believe that our audits provide a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (reasonable basis for our opinion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 534.25 Td (In our opinion, such consolidated financial statements present fairly) Tj ET Q q 0 0 0 rg BT 344.66 534.25 Td (, in all material respects, the financial position of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.25 Td (Company as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 522.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.31 522.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.75 522.25 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.01 522.25 Td (, and the results of its operations and its cash flows for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (three years in the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 510.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.77 510.25 Td (, in conformity with accounting principles generally accepted in the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (States of ) Tj ET Q q 0 0 0 rg BT 86.67 498.25 Td (America.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 478.25 Td (e have also audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 391.44 478.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (States\), the Company's internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.45 466.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.71 466.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 107.69 454.25 Td (ol-Integrated Framework \(1992\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.77 454.25 Td ( issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 412.19 454.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 485.60 454.25 Td (T) Tj ET Q q 0 0 0 rg BT 491.35 454.25 Td (readway ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (Commission and our report dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.37 442.25 Td (November25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.07 442.25 Td ( expressed an unqualified opinion on the Company's internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (financial reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (/s/DELOITTE & ) Tj ET Q q 0 0 0 rg BT 122.86 410.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.79 410.25 Td (OUCHE LLP) Tj ET Q q 0 0 0 rg BT 183.14 410.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (San Jose, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (November25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.71 366.25 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 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 endstream endobj 139 0 obj <>] /Rotate 0 /Contents 140 0 R>> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (67) 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 219.40 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 730.25 Td (TED BALANCE SHEETS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 237.60 710.25 Td (\(In thousands, except par) Tj ET Q q 0 0 0 rg BT 345.77 710.25 Td ( value\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 671.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 671.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 671.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 671.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 641.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 641.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 641.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 641.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 611.75 425.00 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Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 541.50 675.83 Td (2013) Tj ET Q BT /F2 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 631.43 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 631.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 631.42 Td (110,444) 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 479.65 616.43 Td (227,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 616.42 Td (139,666) 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 $1,155 in 2014 and $1,386 in 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 601.43 Td (137,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 601.42 Td (136,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 586.42 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 586.43 Td (170,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 586.42 Td (168,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 571.42 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 571.43 Td (27,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 571.42 Td (52,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 556.42 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 556.43 Td (27,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 556.42 Td (21,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 541.42 Td (Total current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 541.43 Td (681,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 541.42 Td (629,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 526.42 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 526.43 Td (107,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 526.42 Td (114,333) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 511.42 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 511.43 Td (109,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 511.42 Td (113,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 496.42 Td (Intangible assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 496.43 Td (31,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 496.42 Td (42,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 481.42 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 481.43 Td (69,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 481.42 Td (66,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 466.42 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 466.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 466.43 Td (999,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 466.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 466.42 Td (966,478) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.00 451.43 Td (LIABILITIES AND STOCKHOLDERS' EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 436.42 Td (Current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 421.42 Td (Short term borrowings and current portion of long-term obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 421.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.15 421.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 421.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 571.15 421.42 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 406.42 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 406.43 Td (32,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 406.42 Td (36,565) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 391.42 Td (Income taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 391.43 Td (2,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 391.42 Td (24,695) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 376.42 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 376.43 Td (82,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 376.42 Td (84,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 361.42 Td (Total current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 361.43 Td (117,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 361.42 Td (145,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 346.42 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 346.43 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 346.42 Td (62,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 331.42 Td (Commitments and contingencies \(Note10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 316.42 Td (Stockholders' equity:) 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 45.50 301.42 Td (Common stock, par value $.01:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 301.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 301.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 286.42 Td (Authorized500,000 shares;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 286.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 286.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 271.42 Td (Outstanding24,950 shares in 2014 and 24,464 shares in 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.15 271.43 Td (248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.15 271.42 Td (244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 256.42 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 256.43 Td (184,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 256.42 Td (162,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 241.42 Td (Accumulated other comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 241.43 Td (34,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 241.42 Td (54,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 226.42 Td (Retained earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 226.43 Td (600,677) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 226.42 Td (541,571) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 211.42 Td (Total stockholders' equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 211.43 Td (819,649) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 211.42 Td (758,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 196.42 Td (Total liabilities and stockholders' equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 196.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 196.43 Td (999,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 196.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 196.42 Td (966,478) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.35 172.25 Td (See accompanying Notes to Consolidated Financial Statements.) 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 50 771.2669921875 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 endstream endobj 141 0 obj <>] /Rotate 0 /Contents 142 0 R>> endobj 142 0 obj <> stream 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 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 189.15 722.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.97 722.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.52 722.25 Td (A) Tj ET Q q 0 0 0 rg BT 290.00 722.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.92 722.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 391.68 722.25 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.00 702.25 Td (\(In thousands, except per) Tj ET Q q 0 0 0 rg BT 334.61 702.25 Td ( shar) Tj ET Q q 0 0 0 rg BT 355.82 702.25 Td (e data\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 648.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 648.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 648.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 648.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 648.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 648.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 618.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 618.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 618.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 618.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 618.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 618.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 588.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 588.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 588.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 588.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 588.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 588.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 558.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 558.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 558.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 558.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 558.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 558.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 528.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 528.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 528.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 528.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 528.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 528.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 498.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 498.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 498.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 498.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 498.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 468.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 468.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 468.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 468.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 438.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 438.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 438.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 438.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 438.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 438.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 408.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 378.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 348.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 36.50 318.75 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 318.75 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 386.5 669.75 m 446.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 669.75 m 450.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 669.75 m 510.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510.5 669.75 m 514.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 669.75 m 574.5 669.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 648.75 m 446.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 648.75 m 510.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 648.75 m 574.5 648.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 618.75 m 446.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 618.75 m 510.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 618.75 m 574.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 603.75 m 446.5 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 603.75 m 510.5 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 603.75 m 574.5 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 543.75 m 446.5 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 543.75 m 510.5 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 543.75 m 574.5 543.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 528.75 m 446.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 528.75 m 510.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 528.75 m 574.5 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 453.75 m 446.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 453.75 m 510.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 453.75 m 574.5 453.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 438.75 m 446.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 438.75 m 510.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 438.75 m 574.5 438.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 408.75 m 446.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 408.75 m 510.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 408.75 m 574.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 392.75 m 446.5 392.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 394.75 m 446.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 392.75 m 510.5 392.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 394.75 m 510.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 392.75 m 574.5 392.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 394.75 m 574.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 362.75 m 446.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 364.75 m 446.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 362.75 m 510.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 364.75 m 510.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 362.75 m 574.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 364.75 m 574.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 347.75 m 446.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 349.75 m 446.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 347.75 m 510.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 349.75 m 510.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 347.75 m 574.5 347.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 349.75 m 574.5 349.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 317.75 m 446.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 319.75 m 446.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 304.75 m 446.5 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 302.75 m 446.5 302.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 317.75 m 510.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 319.75 m 510.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 304.75 m 510.5 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 302.75 m 510.5 302.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 317.75 m 574.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 319.75 m 574.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 304.75 m 574.5 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 302.75 m 574.5 302.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 674.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.95 673.98 Td (Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 653.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.60 660.98 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.00 652.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.60 660.98 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.00 652.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.60 660.98 Td (September 29,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 536.00 652.98 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 638.43 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 638.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 638.43 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 638.42 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 638.42 Td (769,088) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 623.43 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 623.43 Td (481,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 623.42 Td (487,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 623.42 Td (453,103) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 608.43 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 608.43 Td (313,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 608.42 Td (322,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 608.42 Td (315,985) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 593.43 Td (Operating expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 593.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 593.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 593.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 578.42 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 578.43 Td (79,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 578.42 Td (82,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 578.42 Td (78,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 563.42 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 563.43 Td (154,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 563.42 Td (149,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 563.42 Td (138,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 548.42 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 548.43 Td (3,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 548.42 Td (5,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 548.42 Td (10,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.00 533.42 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 533.43 Td (236,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 533.42 Td (237,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.15 533.42 Td (227,155) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 518.43 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 518.43 Td (76,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 518.42 Td (84,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 518.42 Td (88,830) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 503.43 Td (Other income \(expense\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 503.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 503.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 503.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 488.42 Td (Interest and dividend income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.65 488.43 Td (397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 488.42 Td (230) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.65 488.42 Td (311) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 473.42 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.30 473.48 Td (\(72) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 473.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.30 473.47 Td (\(164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 473.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.30 473.42 Td (\(86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 570.65 473.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 458.42 Td (Othernet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 458.43 Td (2,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.80 458.47 Td (\(1,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 458.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 458.42 Td (1,567) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.00 443.42 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 443.43 Td (2,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.80 443.47 Td (\(1,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 443.42 Td (1,792) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 428.43 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 428.43 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 428.42 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 428.42 Td (90,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 39.00 413.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 413.43 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 413.42 Td (17,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 413.42 Td (27,660) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 398.43 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 398.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 398.43 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 398.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 398.42 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 398.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 398.42 Td (62,962) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 383.43 Td (Net income per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 383.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 383.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 383.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 368.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 368.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 368.43 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 368.42 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 368.42 Td (2.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 353.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 353.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 353.43 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 353.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 353.42 Td (2.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 353.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 353.42 Td (2.62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 39.00 338.43 Td (Shares used in computation:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.00 338.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 338.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.00 338.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 323.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 323.43 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 323.42 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 323.42 Td (23,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 308.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 308.43 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 308.42 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 308.42 Td (24,026) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.35 284.25 Td (See accompanying Notes to Consolidated Financial Statements.) 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 50 771.2669921875 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 endstream endobj 143 0 obj <>] /Rotate 0 /Contents 144 0 R>> endobj 144 0 obj <> stream 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 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 339.60 669.98 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.00 661.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.60 669.98 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 661.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.60 669.98 Td (September 29,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.00 661.98 Td (2012) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 635.43 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 635.42 Td (66,355) 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 (62,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 620.42 Td (Other comprehensive income \(loss\) \(1\):) 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 (Translation adjustments \(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.80 605.48 Td (\(19,185) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 605.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 605.42 Td (13,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.80 605.47 Td (\(10,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 605.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 590.42 Td (Net loss on derivative instruments, net of taxes \(3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 372.30 590.48 Td (\(573) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 590.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 590.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 590.42 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-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 \(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.30 565.48 Td (\(10) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 565.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.30 565.47 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 565.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 565.42 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 550.42 Td (Other comprehensive income \(loss\), net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.80 550.48 Td (\(19,768) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 550.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 550.42 Td (13,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.80 550.47 Td (\(10,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 550.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 535.42 Td (Total comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 535.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 535.43 Td (39,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 535.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 535.42 Td (80,350) 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 (52,196) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 507.25 Td ( ) Tj ET Q q 0 0 0 rg BT 81.50 507.25 Td (\(1\) Reclassification adjustments were not significant during fiscal years 2014, 2013 and 2012.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 483.25 Td ( ) Tj ET Q q 0 0 0 rg BT 81.50 483.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 95.48 483.25 Td (T) Tj ET Q q 0 0 0 rg BT 100.89 483.25 Td (ax expense \(benefit\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.29 483.25 Td ($250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.29 483.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.29 483.25 Td ($\(746\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.95 483.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.39 483.25 Td ($\(166\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.05 483.25 Td ( was provided on translation adjustments during fiscal 2014, 2013 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 471.25 Td (and 2012, respectively) Tj ET Q q 0 0 0 rg BT 171.10 471.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 459.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 447.25 Td ( ) Tj ET Q q 0 0 0 rg BT 81.50 447.25 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 95.48 447.25 Td (T) Tj ET Q q 0 0 0 rg BT 100.89 447.25 Td (ax benefit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.92 447.25 Td ($\(332\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.58 447.25 Td ( was provided on net loss on derivative instruments during fiscal 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 423.25 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 95.48 423.25 Td (T) Tj ET Q q 0 0 0 rg BT 100.89 423.25 Td (ax expense \(benefit\) on changes in unrealized gains \(losses\) on available-for) Tj ET Q q 0 0 0 rg BT 406.12 423.25 Td (-sale securities was insignificant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 399.25 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 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 endstream endobj 145 0 obj <>] /Rotate 0 /Contents 146 0 R>> endobj 146 0 obj <> stream 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 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 157.80 722.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 217.62 722.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 252.18 722.25 Td (A) Tj ET Q q 0 0 0 rg BT 258.65 722.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 323.57 722.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 338.12 722.25 Td (OCKHOLDERS' EQUITY) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 193.45 702.25 Td (Thr) Tj ET Q q 0 0 0 rg BT 209.94 702.25 Td (ee ) Tj ET Q q 0 0 0 rg BT 220.95 702.25 Td (Y) Tj ET Q q 0 0 0 rg BT 227.06 702.25 Td (ears in the Period Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.12 702.25 Td (September) Tj ET Q q 0 0 0 rg BT 381.03 702.25 Td (27, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.53 702.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 682.25 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 663.75 221.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 663.75 45.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 663.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 663.75 45.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 663.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 663.75 45.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 663.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 663.75 44.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 663.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 663.75 45.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 663.75 4.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 663.75 47.00 -37.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 613.75 221.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 613.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 613.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 613.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 613.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 613.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 613.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 613.75 44.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 613.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 613.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 613.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 613.75 47.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 579.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 579.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 579.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 579.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 579.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 579.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 579.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 579.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 579.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 579.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 579.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 579.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 553.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 553.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 553.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 553.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 553.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 553.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 553.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 553.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 553.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 553.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 553.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 553.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 527.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 527.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 527.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 527.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 527.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 527.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 527.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 527.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 527.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 527.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 527.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 527.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 493.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 493.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 493.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 493.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 493.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 493.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 493.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 493.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 493.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 493.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 493.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 493.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 467.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 467.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 467.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 467.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 467.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 467.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 467.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 467.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 467.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 467.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 467.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 467.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 441.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 441.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 441.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 441.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 441.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 441.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 441.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 441.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 441.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 441.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 441.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 441.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 415.75 221.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 415.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 415.75 4.00 -21.00 re f 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1 rg /GS0 gs 368.50 355.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 355.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 355.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 355.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 355.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 355.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 355.75 47.00 -13.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 626.75 m 315.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 626.75 m 364.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 626.75 m 413.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 626.75 m 461.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 626.75 m 510.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 626.75 m 561.5 626.75 l s 0 0 0 RG /GS0 gs 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561.5 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 330.75 m 561.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 328.75 m 561.5 328.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.70 646.98 Td (Common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.90 638.98 Td (Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.00 630.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 297.30 630.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.70 654.98 Td (Common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.90 646.98 Td (Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.35 638.98 Td (Par) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.85 630.98 Td (V) Tj ET Q q 0 0 0 rg BT 336.89 630.98 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.15 646.98 Td (Add.) 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0 rg BT 496.65 583.32 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.25 584.00 Td (1,264) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 571.00 Td (Repurchases of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.95 571.00 Td (\(543) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.65 571.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.95 571.00 Td (\(5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.65 571.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.95 571.00 Td (\(24,994) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.65 571.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 571.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 571.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 571.00 Td (\(24,999) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 571.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 558.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 558.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 558.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.65 558.00 Td (16,443) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 558.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 558.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 558.00 Td (16,443) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 545.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 545.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 545.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.65 545.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 545.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.65 545.00 Td (62,962) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 545.00 Td (62,962) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 532.00 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 532.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 532.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.65 532.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.95 532.00 Td (\(10,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.65 532.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 532.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 532.00 Td (\(10,766) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 532.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 518.98 Td (Balances, September 29, 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 518.98 Td (23,746) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 518.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 518.98 Td (237) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 518.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.60 518.98 Td (131,708) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 518.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 518.98 Td (40,455) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 518.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 518.98 Td (499,256) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 518.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 518.98 Td (671,656) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 506.00 Td (Common stock issued under stock plans, net of shares withheld for) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 498.00 Td (employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.65 498.00 Td (718) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.65 498.00 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.65 498.00 Td (12,364) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 498.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 498.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 498.00 Td (12,371) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 485.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 485.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 485.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 394.95 485.00 Td (\(836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.65 485.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 485.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 485.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 485.00 Td (\(836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 485.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 472.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 472.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 472.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.65 472.00 Td (19,017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 472.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 472.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 472.00 Td (19,017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 459.70 Td (Cash dividends paid \($1.00 per common share\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 458.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 458.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 458.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 458.32 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.95 459.00 Td (\(24,040) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.65 459.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 459.00 Td (\(24,040) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 459.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 446.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 446.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 446.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.65 446.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 446.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.65 446.00 Td (66,355) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 446.00 Td (66,355) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 433.00 Td (Other comprehensive income, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 433.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 433.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.65 433.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.65 433.00 Td (13,995) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 433.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 433.00 Td (13,995) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 419.98 Td (Balances, September 28, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 419.98 Td (24,464) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 419.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 419.98 Td (244) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 419.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.60 419.98 Td (162,253) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 419.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 419.98 Td (54,450) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 419.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 419.98 Td (541,571) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 419.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 419.98 Td (758,518) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 407.00 Td (Common stock issued under stock plans, net of shares withheld for) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 399.00 Td (employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.65 399.00 Td (486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.65 399.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.65 399.00 Td (2,870) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 399.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 399.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.25 399.00 Td (2,874) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 386.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 398.95 386.00 Td (\(52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 409.65 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 386.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 386.00 Td (\(52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 386.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 373.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 373.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 373.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.65 373.00 Td (18,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 373.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 373.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 373.00 Td (18,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 360.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 360.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 360.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.65 360.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 360.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.65 360.00 Td (59,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 360.00 Td (59,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 347.00 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 347.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 347.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 401.65 347.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.95 347.00 Td (\(19,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.65 347.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 347.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 347.00 Td (\(19,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 347.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 333.98 Td (Balances, September 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 333.98 Td (24,950) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 333.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 333.98 Td (248) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 333.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.60 333.98 Td (184,042) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 333.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 333.98 Td (34,682) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 333.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 333.98 Td (600,677) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 333.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 333.98 Td (819,649) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 310.25 Td (See accompanying Notes to Consolidated Financial Statements) 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 50 771.2669921875 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 endstream endobj 147 0 obj <>] /Rotate 0 /Contents 148 0 R>> endobj 148 0 obj <> stream 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 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 187.65 721.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 247.47 721.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 282.02 721.25 Td (A) Tj ET Q q 0 0 0 rg BT 288.50 721.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 353.42 721.25 Td ( CASH FLOWS ) 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 49.00 663.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 663.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 663.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 663.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 663.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 663.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 633.50 325.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 633.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 633.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 633.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 633.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 633.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 593.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 593.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 593.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 593.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 593.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 593.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 563.50 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0.9333333333333333 1 rg /GS0 gs 498.00 383.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 383.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 353.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 353.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 353.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 353.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 353.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 353.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 323.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.00 323.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 323.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 323.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.00 323.50 4.00 -15.00 re f /GS0 gs 0.8 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1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 684.5 m 434 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 684.5 m 438 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 684.5 m 498 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 684.5 m 502 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 684.5 m 562 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 663.5 m 434 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 663.5 m 498 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 663.5 m 562 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 368.5 m 434 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 368.5 m 498 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 353.5 m 498 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 368.5 m 562 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 353.5 m 434 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 353.5 m 498 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 353.5 m 562 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 263.5 m 434 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 248.5 m 434 248.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 263.5 m 498 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 248.5 m 498 248.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 263.5 m 562 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 248.5 m 562 248.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 688.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.45 688.73 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 667.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.10 675.73 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.50 667.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.10 675.73 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.50 667.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.10 675.73 Td (September 29,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.50 667.73 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 653.18 Td (Cash flows from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.50 653.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 653.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 653.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 638.17 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.50 638.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 638.18 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 638.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 638.17 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 638.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 638.17 Td (62,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 623.17 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 51.50 613.17 Td (activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.50 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 598.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 598.18 Td (26,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 598.17 Td (26,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 598.17 Td (23,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 583.17 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.65 583.18 Td (9,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 583.17 Td (9,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 583.17 Td (6,406) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 568.17 Td (Write-off of Hypertronics intangibles) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 568.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 568.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 568.17 Td (4,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 553.17 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 553.18 Td (18,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 553.17 Td (18,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 553.17 Td (16,315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 538.17 Td (Excess tax benefit from stock-based compensation arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 538.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 538.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 538.22 Td (\(1,264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 538.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 523.17 Td (Deferred income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 523.23 Td (\(8,185) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 523.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.30 523.22 Td (\(1,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 523.22 Td (\(4,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 508.17 Td (Other non-cash \(income\) expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 508.23 Td (\(1,364) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 508.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 508.17 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 508.22 Td (\(192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 508.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 493.17 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 376.50 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 478.17 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 478.23 Td (\(5,191) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 478.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 478.17 Td (4,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 478.22 Td (\(5,146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 463.17 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 463.23 Td (\(6,890) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 463.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 463.17 Td (4,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 463.22 Td (\(9,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 463.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 448.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 448.18 Td (11,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 448.17 Td (10,128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 448.22 Td (\(5,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 448.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 433.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 433.23 Td (\(3,489) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 433.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 433.17 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 433.17 Td (147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 418.17 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 418.23 Td (\(2,295) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 418.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 418.17 Td (6,116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 418.22 Td (\(10,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 418.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 403.17 Td (Income taxes payable/receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.30 403.23 Td (\(11,373) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 403.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 403.22 Td (\(20,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 403.22 Td (\(6,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 388.17 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.80 388.23 Td (\(580) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 388.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 388.22 Td (\(11,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 388.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 388.22 Td (\(5,360) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 388.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.50 373.17 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.65 373.18 Td (4,907) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 373.17 Td (1,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 373.17 Td (707) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 358.18 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 358.18 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 358.17 Td (115,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 358.17 Td (64,771) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 343.18 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.50 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 328.17 Td (Purchases of property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.30 328.23 Td (\(23,390) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 328.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 328.22 Td (\(21,988) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 328.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 328.22 Td (\(36,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 328.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 313.17 Td (Proceeds from dispositions of property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 313.18 Td (585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 313.17 Td (1,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 313.17 Td (280) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 298.17 Td (Purchases of available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 298.23 Td (\(280,408) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 298.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.30 298.22 Td (\(228,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 298.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 298.22 Td (\(244,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 298.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 283.17 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 397.65 283.18 Td (193,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 283.17 Td (245,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 283.17 Td (140,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 268.17 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 268.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 268.22 Td (\(67,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 268.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 268.22 Td (\(3,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 268.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 253.18 Td (Net cash used in investing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 253.23 Td (\(109,783) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 253.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 253.22 Td (\(70,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 253.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.30 253.22 Td (\(142,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 253.17 Td (\)) 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 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 endstream endobj 149 0 obj <>] /Rotate 0 /Contents 150 0 R>> endobj 150 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (72) 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 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 631.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 631.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 631.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 631.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 631.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 601.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 601.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 601.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 601.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 601.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 563.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 563.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 563.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 563.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 563.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 563.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 533.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 533.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 533.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 533.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 533.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 533.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 503.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 503.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 503.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 503.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 503.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 503.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 473.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 473.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 473.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 473.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 473.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 473.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 443.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 443.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 443.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 443.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 443.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 443.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 413.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 413.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 413.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 413.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 413.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 413.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 383.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 383.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 383.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 383.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 383.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 383.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 353.50 325.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 353.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 353.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 353.50 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 353.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 353.50 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 378 518.5 m 435 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 518.5 m 496 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 518.5 m 558 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 503.5 m 435 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 503.5 m 496 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 503.5 m 558 503.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 488.5 m 435 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 488.5 m 496 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 488.5 m 558 488.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 458.5 m 435 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 458.5 m 435 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 444.5 m 435 444.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 442.5 m 435 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 458.5 m 496 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 458.5 m 558 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 442.5 m 435 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 444.5 m 435 444.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 442.5 m 496 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 444.5 m 496 444.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 442.5 m 558 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 444.5 m 558 444.5 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 381.60 673.73 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 665.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.60 673.73 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 665.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.10 673.73 Td (September 29,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 665.73 Td (2012) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 636.18 Td (61,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 636.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 636.17 Td (20,717) 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 531.65 636.17 Td (9,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 621.17 Td (Repayments of short-term borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.30 621.23 Td (\(61,499) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 621.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 621.22 Td (\(20,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 621.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 621.22 Td (\(9,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 621.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 606.17 Td (Repayments of capital lease obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.80 606.23 Td (\(2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 606.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.80 606.22 Td (\(17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 606.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 606.22 Td (\(15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 606.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 591.17 Td (Repurchase of common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 591.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 591.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 591.22 Td (\(24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 591.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 577.07 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 79.50 567.07 Td (plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 568.18 Td (10,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 568.17 Td (16,541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 568.17 Td (13,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 553.17 Td (Cash dividend paid) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 553.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 553.22 Td (\(24,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 553.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 553.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 538.17 Td (Excess tax benefits from stock-based compensation arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 538.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 538.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 538.17 Td (1,264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 523.17 Td (Net settlement of restricted common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.30 523.23 Td (\(7,811) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 523.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 523.22 Td (\(4,170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 523.22 Td (\(4,537) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 523.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 508.18 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 508.18 Td (2,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 508.22 Td (\(11,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 508.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 508.22 Td (\(14,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 508.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 493.17 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 405.30 493.23 Td (\(3,719) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 493.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 493.17 Td (9,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 493.22 Td (\(6,128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 493.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 478.18 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.30 478.23 Td (\(19,227) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 478.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 478.17 Td (42,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 478.22 Td (\(99,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 463.17 Td (Cash and cash equivalents, beginning of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.65 463.18 Td (110,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 463.17 Td (67,761) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 463.17 Td (167,061) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 448.18 Td (Cash and cash equivalents, end of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 448.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 448.18 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 448.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 448.17 Td (110,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 448.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 448.17 Td (67,761) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 433.18 Td (Supplemental disclosure of cash flow information:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 433.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 433.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 433.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 418.17 Td (Cash paid during the year for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 403.17 Td (Interest) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 403.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 403.18 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 403.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 403.17 Td (164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 403.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 403.17 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 388.17 Td (Income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 388.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 388.18 Td (44,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 388.17 Td (54,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 388.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 388.17 Td (49,755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 373.17 Td (Cash received during the year for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 373.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 373.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 373.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 358.17 Td (Income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 358.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 358.18 Td (7,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 358.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 358.17 Td (13,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 358.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 358.17 Td (11,855) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 343.18 Td (Noncash investing and financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 328.17 Td (Unpaid property and equipment purchases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 328.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.15 328.18 Td (721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 328.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 328.17 Td (1,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 328.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 328.17 Td (1,031) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.10 284.00 Td (\(concluded\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 264.00 Td (See accompanying Notes to Consolidated Financial Statements) 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 50 771.2669921875 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 endstream endobj 151 0 obj <>] /Rotate 0 /Contents 152 0 R>> endobj 152 0 obj <> stream 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 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 photonics-based solutions 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, laser tools and related accessories for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (diverse group of customers. Headquartered in Santa Clara, California, the Company has worldwide operations including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (research and 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 (2014) 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 (2013) 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 (2012) 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 (September27, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (2014) 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 (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.76 566.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.20 566.25 Td (September29, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.47 566.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 307.13 566.25 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 538.69 566.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.69 566.25 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 (2013) 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 (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.75 554.25 Td ( for convenience. ) Tj ET Q q 0 0 0 rg BT 230.83 554.25 Td (All fiscal years include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.79 554.25 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.79 554.25 Td ( weeks. ) Tj ET Q q 0 0 0 rg BT 368.10 554.25 Td (The fiscal years of the majority of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (international subsidiaries end on September 30. ) Tj ET Q q 0 0 0 rg BT 241.40 542.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 290.74 542.25 Td (, the financial statements of these subsidiaries as of that date and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (for the years then ended have been used for our consolidated financial statements. Management believes that the impact of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (use of dif) Tj ET Q q 0 0 0 rg BT 87.09 518.25 Td (ferent year) Tj ET Q q 0 0 0 rg BT 129.91 518.25 Td (-ends is immaterial to our consolidated financial statements taken as a whole.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 498.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 478.25 Td (The preparation of consolidated financial statements in conformity with Generally ) Tj ET Q q 0 0 0 rg BT 404.51 478.25 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 444.21 478.25 Td (Accounting Principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (\("GAAP"\) requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 350.46 466.25 Td (fect the reported amounts of assets and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 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 49.50 442.25 Td (of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 266.38 442.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 359.79 442.25 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (Basis of Pr) Tj ET Q q 0 0 0 rg BT 95.43 422.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 402.25 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 49.50 390.25 Td (\(collectively) Tj ET Q q 0 0 0 rg BT 98.83 390.25 Td (, the "Company", "we", "our", or "Coherent"\). Intercompany balances and transactions have been eliminated. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Fair) Tj ET Q q 0 0 0 rg BT 67.64 370.25 Td ( ) Tj ET Q q 0 0 0 rg BT 69.96 370.25 Td (V) Tj ET Q q 0 0 0 rg BT 76.27 370.25 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.25 Td (The carrying amounts of certain of our financial instruments including cash and cash equivalents, accounts receivable, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.25 Td (accounts payable and accrued liabilities approximate fair value due to their short maturities. Short-term investments are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (comprised of available-for) Tj ET Q q 0 0 0 rg BT 155.36 326.25 Td (-sale securities, which are carried at fair value. Other non-current assets include trading securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (life insurance contracts related to our deferred compensation plans; trading securities are carried at fair value and life insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (contracts are carried at cash surrender values, which due to their ability to be converted to cash at that amount, approximate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (their fair values. Foreign 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 49.50 270.25 Td (Cash Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.25 Td (All highly liquid investments with maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.54 250.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.53 250.25 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 49.50 238.25 Td (equivalents.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (Concentration of Cr) Tj ET Q q 0 0 0 rg BT 135.97 218.25 Td (edit Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 198.25 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 49.50 186.25 Td (equivalents, short-term investments and accounts receivable. ) Tj ET Q q 0 0 0 rg BT 294.42 186.25 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.08 186.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.08 186.25 Td (year) Tj ET Q q 0 0 0 rg BT 370.58 186.25 Td (-end, the majority of our short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.25 Td (investments are in US ) Tj ET Q q 0 0 0 rg BT 139.86 174.25 Td (T) Tj ET Q q 0 0 0 rg BT 145.62 174.25 Td (reasury and federal agency obligations and corporate notes and obligations. Cash equivalents and short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (term investments are maintained with several financial institutions and may exceed the amount of insurance provided on such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (balances. ) Tj ET Q q 0 0 0 rg BT 88.37 150.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.87 150.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.14 150.25 Td (, we held cash and cash equivalents and short-term investments outside the U.S.in certain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (our foreign operations totaling approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.17 138.25 Td ($201.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.06 138.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.06 138.25 Td ($67.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.96 138.25 Td ( of which was denominated in currencies other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (the U.S. dollar) Tj ET Q q 0 0 0 rg BT 107.27 126.25 Td (. ) Tj ET Q q 0 0 0 rg BT 112.09 126.25 Td (The majority of our accounts receivable are derived from sales to customers for commercial applications. ) Tj ET Q q 0 0 0 rg BT 535.64 126.25 Td (W) Tj ET Q q 0 0 0 rg BT 544.28 126.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (perform ongoing credit evaluations of our customers' financial condition and limit the amount of credit extended when deemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (necessary but generally require no collateral. ) Tj ET Q q 0 0 0 rg BT 231.18 102.25 Td (W) Tj ET Q q 0 0 0 rg BT 239.82 102.25 Td (e maintain reserves for potential credit losses. Our products are broadly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (distributed and there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.13 90.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.13 90.25 Td ( customers who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.59 90.25 Td (15.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.42 90.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.86 90.25 Td (1) Tj ET Q q 0 0 0 rg BT 343.48 90.25 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.31 90.25 Td ( of accounts receivable at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.58 90.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.58 90.25 Td (year) Tj ET Q q 0 0 0 rg BT 532.09 90.25 Td (-end. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.24 78.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.24 78.25 Td ( customers who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.71 78.25 Td (15.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.54 78.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.97 78.25 Td (1) Tj ET Q q 0 0 0 rg BT 284.60 78.25 Td (1.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.43 78.25 Td ( of accounts receivable at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.70 78.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.70 78.25 Td ( year) Tj ET Q q 0 0 0 rg BT 473.21 78.25 Td (-end.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (Derivative Financial Instruments) 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 50 771.2669921875 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 endstream endobj 153 0 obj <>] /Rotate 0 /Contents 154 0 R>> endobj 154 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 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 49.50 683.10 Td (currencies hedged include the Euro, Korean ) Tj ET Q q 0 0 0 rg BT 227.30 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 235.94 683.10 Td (on, Japanese ) Tj ET Q q 0 0 0 rg BT 288.60 683.10 Td (Y) Tj ET Q q 0 0 0 rg BT 294.82 683.10 Td (en, British Pound, Chinese Renminbi and Singapore dollar) Tj ET Q q 0 0 0 rg BT 528.97 683.10 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (derivative financial instruments are recorded at fair value and are included in other current assets and other accrued liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 651.10 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 49.50 639.10 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 401.97 639.10 Td (fective are recorded in accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 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 49.50 615.10 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 405.87 615.10 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 465.94 615.10 Td (The changes in fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.10 Td (value of derivative instruments that are not designated as hedges and the inef) Tj ET Q q 0 0 0 rg BT 357.00 603.10 Td (fective portion of cash flow hedges are recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (immediately in earnings in the line item on the consolidated statements of operations most closely associated with the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (exposures, primarily in other income and expenses. Derivatives that we designate as cash flow hedges are classified in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (consolidated statements of cash flows in the same section as the underlying item, primarily within cash flows from operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (activities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 535.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 535.10 Td (e formally document all relationships between hedging instruments and hedged items, as well as its risk management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (objective and strategy for undertaking various hedge transactions. ) Tj ET Q q 0 0 0 rg BT 315.07 523.10 Td (This process includes linking all derivatives that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.10 Td (designated as cash-flow hedges to specific forecasted transactions. ) Tj ET Q q 0 0 0 rg BT 317.83 511.10 Td (W) Tj ET Q q 0 0 0 rg BT 326.47 511.10 Td (e also assess, both at the hedge) Tj ET Q q 0 0 0 rg BT 452.83 511.10 Td (s inception and on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.10 Td (ongoing basis, whether the derivatives that are used in hedging transactions are highly ef) Tj ET Q q 0 0 0 rg BT 404.22 499.10 Td (fective in of) Tj ET Q q 0 0 0 rg BT 452.35 499.10 Td (fsetting changes in cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (flows of the hedged items. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (Accounts Receivable ) Tj ET Q q 0 0 0 rg BT 139.49 467.10 Td (Allowances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 447.10 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 49.50 435.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 435.10 Td (e regularly review allowances by considering factors such as historical experience, credit quality) Tj ET Q q 0 0 0 rg BT 443.72 435.10 Td (, the age of the accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (receivable balances and current economic conditions that may af) Tj ET Q q 0 0 0 rg BT 308.09 423.10 Td (fect a customer's ability to pay) Tj ET Q q 0 0 0 rg BT 429.49 423.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 403.10 Td (Activity in accounts receivable allowance is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 356.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 356.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 356.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 356.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 356.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 356.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 326.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 326.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 326.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 326.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 326.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 326.60 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 358.5 370.6 m 423.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 370.6 m 427.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 370.6 m 492.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 370.6 m 496.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 370.6 m 561.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 356.6 m 423.5 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 356.6 m 492.5 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 370.6 m 561.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 356.6 m 561.5 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 356.6 m 423.5 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 356.6 m 492.5 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 356.6 m 561.5 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 311.6 m 423.5 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 297.6 m 423.5 297.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 295.6 m 423.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 311.6 m 492.5 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 297.6 m 492.5 297.6 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 496.5 311.6 m 561.5 311.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 297.6 m 561.5 297.6 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 BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 375.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.50 374.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 361.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 360.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 360.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 360.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 346.27 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 346.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 346.28 Td (1,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 346.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 346.27 Td (1,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 346.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 346.27 Td (1,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 331.27 Td (Additions charged to expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 331.28 Td (1,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 331.27 Td (1,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 331.27 Td (1,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 316.27 Td (Deductions from reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.80 316.33 Td (\(1,425) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 316.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 316.32 Td (\(1,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 316.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 316.32 Td (\(1,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 316.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 301.27 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 301.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 301.28 Td (1,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 301.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 301.27 Td (1,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 301.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 301.27 Td (1,443) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 257.10 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 49.50 210.60 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 210.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 210.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 210.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 180.60 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 180.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 180.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 180.60 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 437.5 224.60000000000002 m 497.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 224.60000000000002 m 501.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 224.60000000000002 m 561.5 224.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 210.60000000000002 m 497.5 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 210.60000000000002 m 561.5 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 210.60000000000002 m 497.5 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 210.60000000000002 m 561.5 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 165.60000000000002 m 497.5 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 151.60000000000002 m 497.5 151.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 149.60000000000002 m 497.5 149.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 165.60000000000002 m 561.5 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 151.60000000000002 m 561.5 151.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 149.60000000000002 m 561.5 149.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 229.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.00 228.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 215.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 214.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 214.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 200.27 Td (Purchased parts and assemblies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 200.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 200.28 Td (51,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 200.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 200.27 Td (50,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 185.27 Td (Work-in-process) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 185.28 Td (70,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 185.27 Td (60,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 170.27 Td (Finished goods) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 170.28 Td (48,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 170.27 Td (57,703) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 155.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 155.28 Td (170,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 155.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 155.27 Td (168,067) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.87 131.10 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 111.10 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 99.10 Td (accumulated depreciation and amortization, and estimated useful lives are as follows \(dollars in thousands\):) 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 50 771.2669921875 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 endstream endobj 155 0 obj <>] /Rotate 0 /Contents 156 0 R>> endobj 156 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (75) 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 (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.50 678.73 Td (2013) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 664.18 Td (6,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 664.17 Td (6,295) 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 (73,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 649.17 Td (73,139) 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 (224,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 634.17 Td (220,133) 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 (30,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 619.17 Td (29,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.55 619.17 Td (Lesser of useful life or terms of leases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 604.18 Td (334,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 604.17 Td (329,330) 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 (\(226,730) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 589.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.80 589.22 Td (\(214,997) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 589.17 Td (\)) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 574.18 Td (107,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 574.17 Td (114,333) 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 of a liability for an asset retirement obligation is recognized in the period in which it is incurred if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.00 Td (reasonable estimate of fair value can be made. ) Tj ET Q q 0 0 0 rg BT 236.73 518.00 Td (The fair value of the liability is added to the carrying amount of the associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.00 Td (asset and this additional carrying amount is depreciated over the life of the asset. ) Tj ET Q q 0 0 0 rg BT 374.12 506.00 Td (All of our existing asset retirement obligations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.00 Td (are associated with commitments to return the property to its original condition upon lease termination at various sites and costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.00 Td (to clean up and dispose of certain fixed assets at our Sunnyvale, California site. ) Tj ET Q q 0 0 0 rg BT 369.23 482.00 Td (W) Tj ET Q q 0 0 0 rg BT 377.87 482.00 Td (e estimated that as of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.94 482.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.94 482.00 Td (year) Tj ET Q q 0 0 0 rg BT 528.45 482.00 Td (-end, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.00 Td (gross expected future cash flows of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.34 470.00 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.23 470.00 Td ( would be required to fulfill these obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 450.00 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 396.17 450.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.17 450.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.60 450.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 450.00 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 431.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 431.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 401.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 401.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 371.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 371.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 341.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 341.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 311.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 311.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 281.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 281.50 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 511.5 356.5 m 561.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 281.5 m 561.5 281.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 267.5 m 561.5 267.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 265.5 m 561.5 265.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 421.17 Td (Asset retirement liability as of September 29, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 421.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 421.17 Td (2,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 406.17 Td ( Payment of asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 406.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 391.17 Td (Adjustment to asset retirement obligations recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 391.17 Td (253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 376.17 Td (Accretion recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 376.17 Td (70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 361.17 Td (Changes due to foreign currency exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 361.22 Td (\(105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 361.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 346.17 Td (Asset retirement liability as of September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 346.17 Td (2,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 331.17 Td (Payment of asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 331.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 316.17 Td (Adjustment to asset retirement obligations recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 316.17 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 301.17 Td (Accretion recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 301.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 286.17 Td (Changes due to foreign currency exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 286.22 Td (\(117) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 286.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 271.17 Td (Asset retirement liability as of September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 271.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 271.17 Td (2,222) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 247.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 247.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.26 247.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.70 247.00 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.97 247.00 Td (, the asset retirement liability is included in Other Long-term Liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.00 Td (on our consolidated balance sheets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 215.00 Td (Long-lived ) Tj ET Q q 0 0 0 rg BT 97.57 215.00 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 195.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 195.00 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 49.50 183.00 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 49.50 171.00 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 49.50 159.00 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 49.50 147.00 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 527.22 147.00 Td (When ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.00 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 49.50 123.00 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 49.50 111.00 Td (undiscounted cash flows. For fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.96 111.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.96 111.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 111.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 111.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.40 111.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 111.00 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.81 111.00 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 111.00 Td ( significant asset impairments recorded.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 91.00 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 71.00 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 59.00 Td (when impaired \(see Note7. "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 266.03 59.00 Td (Assets"\). 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 47.00 Td (qualitative factors to determine whether it is more likely than not \(that is, a likelihood of more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.00 47.00 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.33 47.00 Td (\) that the fair value of a ) 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 50 771.2669921875 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 endstream endobj 157 0 obj <>] /Rotate 0 /Contents 158 0 R>> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (76) 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 fiscal 2012, we performed a qualitative assessment. In fiscal 2013, we elected to bypass the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (qualitative assessment and proceed directly to performing the first step of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 465.88 659.10 Td (This election was made ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (because we had last performed this impairment test in fiscal 2010 and we have subsequently added a substantial amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (goodwill balances as a result of our acquisitions of Midaz in the fourth quarter of fiscal 2012 and the acquisitions of Innolight ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (and Lumera in the first quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 234.26 623.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.89 623.10 Td (e performed our Step 1 test during the fourth quarter of fiscal 2013 using the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (opening balance sheet as of the first day of the fourth quarter and noted no impairment. Between the completion of that testing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (and the end of the fourth quarter of fiscal 2013, we noted no indications of impairment or triggering events to cause us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (review goodwill for potential impairment. In our fiscal 2014 annual testing, we performed a qualitative assessment of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (goodwill for our SLS reporting unit \(operating segment\) 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 49.50 563.10 Td (and noted no impairment. For the CLC reporting unit \(operating segment\), we elected to bypass the qualitative assessment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (proceed directly to performing the first step of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 357.29 551.10 Td (This election was made because of the decline in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (fiscal 2014 reporting unit performance over fiscal 2013, mostly due to market softness predominantly in the advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (packaging market. ) Tj ET Q q 0 0 0 rg BT 125.68 527.10 Td (W) Tj ET Q q 0 0 0 rg BT 134.31 527.10 Td (e performed our Step 1 test using the opening balance sheet as of the first day of the fourth quarter and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (noted no impairment. \(See Note 7 for additional discussion of the fiscal 2014 analysis.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 95.35 495.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 475.10 Td (Intangible assets, including acquired existing technology) Tj ET Q q 0 0 0 rg BT 300.02 475.10 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 49.50 463.10 Td (basis over estimated useful lives of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.24 463.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.24 463.10 Td ( year to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.73 463.10 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.73 463.10 Td ( years.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 443.10 Td (arranty Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 423.10 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 49.50 411.10 Td (the period of sale. ) Tj ET Q q 0 0 0 rg BT 123.46 411.10 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 49.50 399.10 Td (to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 239.60 399.10 Td (. ) Tj ET Q q 0 0 0 rg BT 244.42 399.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.05 399.10 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 49.50 387.10 Td (each product line. ) Tj ET Q q 0 0 0 rg BT 123.18 387.10 Td (The weighted average warranty period covered is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.62 387.10 Td (15 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.57 387.10 Td (. If actual return rates and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 177.04 375.10 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 49.50 363.10 Td (periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 343.10 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 310.93 343.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.93 343.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.93 343.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.93 343.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.37 343.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.37 343.10 Td ( were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 296.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 296.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 296.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 296.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 296.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 296.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 266.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 266.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 266.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 266.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 266.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 266.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 236.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 236.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 236.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 236.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 236.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 236.60 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 358.5 310.6 m 423.5 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 310.6 m 427.5 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 310.6 m 492.5 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 310.6 m 496.5 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 310.6 m 561.5 310.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 296.6 m 423.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 296.6 m 492.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 296.6 m 561.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 296.6 m 423.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 296.6 m 492.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 296.6 m 561.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 221.60000000000002 m 423.5 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 207.60000000000002 m 423.5 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 205.60000000000002 m 423.5 205.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 221.60000000000002 m 492.5 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 207.60000000000002 m 492.5 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 205.60000000000002 m 492.5 205.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 221.60000000000002 m 561.5 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 207.60000000000002 m 561.5 207.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 205.60000000000002 m 561.5 205.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 315.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.50 314.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 301.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 300.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 300.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 300.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 286.27 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 286.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 286.28 Td (18,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 286.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 286.27 Td (17,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 286.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 286.27 Td (16,704) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 271.27 Td (Additions related to current period sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 271.28 Td (24,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 271.27 Td (26,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 271.27 Td (29,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 256.27 Td (Warranty costs incurred in the current period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.80 256.33 Td (\(25,144) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 256.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 256.32 Td (\(27,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 256.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 256.32 Td (\(28,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 256.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 241.27 Td (Accruals resulting from acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.65 241.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 241.27 Td (1,735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 241.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 226.27 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 401.30 226.33 Td (\(552) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 226.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 226.27 Td (585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 226.32 Td (\(424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 226.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 211.27 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 211.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 211.28 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 211.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 211.27 Td (18,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 211.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 211.27 Td (17,442) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (Loss contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 159.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 159.10 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 489.82 159.10 Td (W) Tj ET Q q 0 0 0 rg BT 498.46 159.10 Td (e consider the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (likelihood of loss or impairment of an asset, or the incurrence of a liability) Tj ET Q q 0 0 0 rg BT 346.55 147.10 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 49.50 135.10 Td (amount of loss, in determining loss contingencies. ) Tj ET Q q 0 0 0 rg BT 251.98 135.10 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 49.50 123.10 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 49.50 111.10 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 525.32 111.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.95 111.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 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 87.10 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 67.10 Td (Revenue Recognition) 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 50 771.2669921875 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 endstream endobj 159 0 obj <>] /Rotate 0 /Contents 160 0 R>> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 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 49.50 683.10 Td (element based on a selling price hierarchy) Tj ET Q q 0 0 0 rg BT 217.11 683.10 Td (. Using the selling price hierarchy) Tj ET Q q 0 0 0 rg BT 351.98 683.10 Td (, we determine the selling price of each deliverable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 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 524.98 671.10 Td (VSOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (nor ) Tj ET Q q 0 0 0 rg BT 65.15 659.10 Td (TPE of selling price exists, we use estimated selling price \(ESP\). ) Tj ET Q q 0 0 0 rg BT 335.74 659.10 Td (W) Tj ET Q q 0 0 0 rg BT 344.37 659.10 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 49.50 647.10 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 530.57 647.10 Td (VSOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (or if not available, ESP) Tj ET Q q 0 0 0 rg BT 141.43 635.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 615.10 Td (Our basis for establishing ) Tj ET Q q 0 0 0 rg BT 176.80 615.10 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 49.50 603.10 Td (similar product or service is sold separately) Tj ET Q q 0 0 0 rg BT 222.69 603.10 Td (. However) Tj ET Q q 0 0 0 rg BT 263.94 603.10 Td (, when services are never sold separately) Tj ET Q q 0 0 0 rg BT 426.27 603.10 Td (, such as product installation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (services, ) Tj ET Q q 0 0 0 rg BT 86.53 591.10 Td (VSOE is based on the product's estimated installation hours based on historical experience multiplied by the standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (service billing rate. In determining ) Tj ET Q q 0 0 0 rg BT 190.38 579.10 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 49.50 567.10 Td (within a reasonably narrow price range, as defined by us. ) Tj ET Q q 0 0 0 rg BT 280.35 567.10 Td (W) Tj ET Q q 0 0 0 rg BT 288.99 567.10 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 49.50 555.10 Td (are sold, major product and service groups, and other environmental variables in determining ) Tj ET Q q 0 0 0 rg BT 424.48 555.10 Td (VSOE. ) Tj ET Q q 0 0 0 rg BT 455.04 555.10 Td (Absent the existence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (VSOE and ) Tj ET Q q 0 0 0 rg BT 94.87 543.10 Td (TPE, our determination of a deliverable's ESP) Tj ET Q q 0 0 0 rg BT 278.76 543.10 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 49.50 531.10 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 49.50 519.10 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 49.50 507.10 Td (relevant authority) Tj ET Q q 0 0 0 rg BT 119.66 507.10 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 72.00 487.10 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 49.50 475.10 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 73.50 455.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 455.10 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 49.50 443.10 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 49.50 431.10 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 49.50 419.10 Td (title passes to the customer) Tj ET Q q 0 0 0 rg BT 156.70 419.10 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 73.50 399.10 Td (The majority of our sales are made to original equipment manufacturers \("OEMs"\), distributors, resellers and end-users in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (the non-scientific market. Sales made to these customers do not require installation of the products by us and are not subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (other post-delivery obligations, except in occasional instances where we have agreed to perform installation or provide training. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (In those instances, we defer revenue related to installation services or training until these services have been rendered. ) Tj ET Q q 0 0 0 rg BT 524.13 363.10 Td (W) Tj ET Q q 0 0 0 rg BT 532.77 363.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (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 73.50 331.10 Td (Our sales to distributors, resellers and end-user customers typically do not have customer acceptance provisions and only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (certain of our sales to OEM customers and integrators have customer acceptance provisions. Customer acceptance is generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (limited to performance under our published product specifications. For the few product sales that have customer acceptance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (provisions because of higher than published specifications, \(1\)the products are tested and accepted by the customer at our site ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (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 414.29 283.10 Td (, or \(2\)the revenue is deferred until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (customer acceptance occurs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 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 49.50 239.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 239.10 Td (, our post-delivery installation obligations are not essential to the functionality of our products. ) Tj ET Q q 0 0 0 rg BT 464.93 239.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.57 239.10 Td (e defer revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 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 73.50 207.10 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 499.69 207.10 Td (, when training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 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 73.50 175.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 175.10 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 49.50 155.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 78.75 155.10 Td (ch and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 135.10 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 49.50 123.10 Td (costs related to other overhead such as depreciation, facilities, utilities and other departmental expenses. ) Tj ET Q q 0 0 0 rg BT 467.78 123.10 Td (The costs we incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 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 99.10 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 79.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 79.10 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 79.10 Td (, where we are the primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.10 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 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 endstream endobj 161 0 obj <>] /Rotate 0 /Contents 162 0 R>> endobj 162 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (reimbursements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.70 695.10 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.59 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.59 695.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.49 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.92 695.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.82 695.10 Td ( were of) Tj ET Q q 0 0 0 rg BT 330.39 695.10 Td (fset against research and development costs in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 683.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 683.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 683.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 683.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 186.60 683.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 663.10 Td (For) Tj ET Q q 0 0 0 rg BT 64.87 663.10 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 106.62 663.10 Td (ency ) Tj ET Q q 0 0 0 rg BT 128.38 663.10 Td (T) Tj ET Q q 0 0 0 rg BT 134.31 663.10 Td (ranslation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 643.10 Td (The functional currencies of our foreign subsidiaries are generally their respective local currencies. ) Tj ET Q q 0 0 0 rg BT 471.66 643.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 521.00 643.10 Td (, gains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.10 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 49.50 619.10 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 49.50 599.10 Td (Compr) Tj ET Q q 0 0 0 rg BT 79.87 599.10 Td (ehensive Income \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 579.10 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 49.50 567.10 Td (and other events and circumstances from non-owner sources. ) Tj ET Q q 0 0 0 rg BT 295.81 567.10 Td (Accumulated other comprehensive income \(net of tax\) at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (2014and fiscal 2013 year) Tj ET Q q 0 0 0 rg BT 152.60 555.10 Td (-ends are substantially comprised of accumulated translation adjustments of $35.3 million and $54.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (million, respectively) Tj ET Q q 0 0 0 rg BT 131.05 543.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (Earnings Per) Tj ET Q q 0 0 0 rg BT 105.71 523.10 Td ( Shar) Tj ET Q q 0 0 0 rg BT 128.59 523.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.10 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 49.50 491.10 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 49.50 479.10 Td (outstanding during the period increased by the ef) Tj ET Q q 0 0 0 rg BT 245.10 479.10 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 49.50 467.10 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 73.50 447.10 Td (The following table presents information necessary to calculate basic and diluted earnings \(loss\) per share \(in thousands, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (except per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 396.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 396.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 396.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 396.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 396.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 396.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 366.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 366.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 366.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 366.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 366.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 366.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 336.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 336.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 336.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 336.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 336.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 336.60 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 359 410.6 m 424 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 410.6 m 428 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 410.6 m 493 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 410.6 m 497 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 410.6 m 561 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 396.6 m 424 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 396.6 m 493 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 396.6 m 561 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 396.6 m 424 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 396.6 m 493 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 396.6 m 561 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 366.6 m 424 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 352.6 m 424 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 350.6 m 424 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 366.6 m 493 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 366.6 m 561 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 337.6 m 424 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 335.6 m 424 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 350.6 m 493 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 352.6 m 493 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 350.6 m 561 350.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 352.6 m 561 352.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 335.6 m 493 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 337.6 m 493 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 335.6 m 561 335.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 337.6 m 561 337.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 415.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 414.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 401.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 400.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 400.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 400.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 386.27 Td (Weighted average shares outstandingbasic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 386.28 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 386.27 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 386.27 Td (23,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 371.27 Td (Dilutive effect of employee awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 371.28 Td (316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 371.27 Td (417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 371.27 Td (465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 356.27 Td (Weighted average shares outstandingdiluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 356.28 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 356.27 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 356.27 Td (24,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 341.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 341.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 341.28 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 341.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 341.27 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 341.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 341.27 Td (62,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 326.27 Td (Net incomebasic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 326.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 326.28 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 326.27 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 326.27 Td (2.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 311.27 Td (Net incomediluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 311.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 311.28 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 311.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 311.27 Td (2.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 311.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 311.27 Td (2.62) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 287.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 287.10 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.27 287.10 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.77 287.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.05 287.10 Td (883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.05 287.10 Td (; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.27 287.10 Td (99,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.77 287.10 Td ( potentially dilutive securities have been excluded from the dilutive share calculation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.82 275.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.82 275.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.82 275.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.82 275.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.25 275.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.25 275.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 224.92 275.10 Td (, as their ef) Tj ET Q q 0 0 0 rg BT 269.16 275.10 Td (fect was anti-dilutive.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 235.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 235.10 Td (e account for stock-based compensation using the fair value of the awards granted. ) Tj ET Q q 0 0 0 rg BT 415.17 235.10 Td (W) Tj ET Q q 0 0 0 rg BT 423.81 235.10 Td (e estimate the fair value of stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (options granted using the Black-Scholes Merton model. ) Tj ET Q q 0 0 0 rg BT 274.84 223.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.47 223.10 Td (e value restricted stock units using the intrinsic value method. ) Tj ET Q q 0 0 0 rg BT 532.96 223.10 Td (W) Tj ET Q q 0 0 0 rg BT 541.59 223.10 Td (e use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (a Monte Carlo simulation model to estimate the fair value of market-based performance restricted stock units. ) Tj ET Q q 0 0 0 rg BT 491.12 211.10 Td (W) Tj ET Q q 0 0 0 rg BT 499.76 211.10 Td (e use historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (data to estimate pre-vesting option and restricted stock unit forfeitures and record stock-based compensation expense only for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (those options and awards that are expected to vest. ) Tj ET Q q 0 0 0 rg BT 254.26 187.10 Td (W) Tj ET Q q 0 0 0 rg BT 262.89 187.10 Td (e amortize the fair value of stock options and awards on a straight-line ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (basis over the requisite service periods of the awards, which are generally the vesting periods. See Note12 "Employee Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.80 163.10 Td (ward, Option and Benefit Plans" for a description of our stock-based employee compensation plans and the assumptions we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (use to calculate the fair value of stock-based employee compensation.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (Shipping and Handling Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 111.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 111.10 Td (e record costs related to shipping and handling of revenue 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 99.10 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 79.10 Td (Advertising Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 59.10 Td (Advertising costs are expensed as incurred and were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.64 59.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.54 59.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.54 59.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.43 59.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.87 59.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.76 59.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.69 59.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.69 59.10 Td (, fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 47.10 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.09 47.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.09 47.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 185.75 47.10 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 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 endstream endobj 163 0 obj <>] /Rotate 0 /Contents 164 0 R>> endobj 164 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (79) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.48 695.25 Td (T) Tj ET Q q 0 0 0 rg BT 89.23 695.25 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 675.25 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 49.50 663.25 Td (provision \(benefit\) in each of the jurisdictions in which we operate. ) Tj ET Q q 0 0 0 rg BT 320.91 663.25 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 49.50 651.25 Td (provision \(benefit\) together with assessing temporary dif) Tj ET Q q 0 0 0 rg BT 276.49 651.25 Td (ferences resulting from dif) Tj ET Q q 0 0 0 rg BT 382.65 651.25 Td (fering treatment of items for tax and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 136.24 639.25 Td (These dif) Tj ET Q q 0 0 0 rg BT 173.55 639.25 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 49.50 627.25 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 607.25 Td (e account for uncertain tax issues pursuant to ) Tj ET Q q 0 0 0 rg BT 264.31 607.25 Td (ASC 740-10 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 317.09 607.25 Td (Income T) Tj ET Q q 0 0 0 rg BT 353.66 607.25 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.43 607.25 Td (, which creates a single model to address ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 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 49.50 583.25 Td (meet before being recognized in the financial statements. ) Tj ET Q q 0 0 0 rg BT 280.06 583.25 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 49.50 571.25 Td (positions. ) Tj ET Q q 0 0 0 rg BT 90.44 571.25 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 49.50 559.25 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 434.61 559.25 Td (. ) Tj ET Q q 0 0 0 rg BT 439.43 559.25 Td (The second step, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 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 465.83 547.25 Td (gest amount that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (deemed more likely than not to be realized upon ultimate settlement of the uncertainty) Tj ET Q q 0 0 0 rg BT 394.01 535.25 Td (. ) Tj ET Q q 0 0 0 rg BT 398.83 535.25 Td (These determinations involve significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (judgment by management. ) Tj ET Q q 0 0 0 rg BT 158.18 523.25 Td (T) Tj ET Q q 0 0 0 rg BT 163.59 523.25 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 49.50 511.25 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 49.50 499.25 Td (interpretation, judgment and certainty) Tj ET Q q 0 0 0 rg BT 199.91 499.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.73 499.25 Td (T) Tj ET Q q 0 0 0 rg BT 210.14 499.25 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 49.50 487.25 Td (changes in fiscal policy) Tj ET Q q 0 0 0 rg BT 142.99 487.25 Td (, changes in legislation, evolution of regulations and court filings. ) Tj ET Q q 0 0 0 rg BT 408.03 487.25 Td (Therefore, the actual liability for U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.25 Td (or foreign taxes may be materially dif) Tj ET Q q 0 0 0 rg BT 200.37 475.25 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 49.50 463.25 Td (or potentially to reverse previously recorded tax liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 443.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 443.25 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 49.50 431.25 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 49.50 419.25 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 49.50 407.25 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 49.50 395.25 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 49.50 383.25 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 474.70 383.25 Td (ged to income in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.25 Td (period such determination was made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 351.25 Td (Federal and state income taxes have not been provided for 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 49.50 339.25 Td (because such earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 313.10 339.25 Td (The total amount of unremitted earnings \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (accumulated translation adjustments\) 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 49.50 315.25 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.81 315.25 Td ($429.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.70 315.25 Td ( at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.07 315.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.07 315.25 Td (year) Tj ET Q q 0 0 0 rg BT 262.58 315.25 Td (-end. ) Tj ET Q q 0 0 0 rg BT 285.17 315.25 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 49.50 303.25 Td (upon repatriation of such earnings is not practicably determinable. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 279.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 180.15 279.25 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 259.25 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 148.20 259.25 Td (ASB amended the ) Tj ET Q q 0 0 0 rg BT 222.91 259.25 Td (Accounting Standards Codification and created a new ) Tj ET Q q 0 0 0 rg BT 440.71 259.25 Td (T) Tj ET Q q 0 0 0 rg BT 446.12 259.25 Td (opic 606, Revenue from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.25 Td (Contracts with Customers. ) Tj ET Q q 0 0 0 rg BT 158.20 247.25 Td (The new guidance establishes a single comprehensive contract-based model for entities to use in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.25 Td (accounting for revenue arising from contracts with customers. ) Tj ET Q q 0 0 0 rg BT 300.07 235.25 Td (The new model significantly changes existing GAAP) Tj ET Q q 0 0 0 rg BT 512.25 235.25 Td (, requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (substantial judgment in its application, and will generally require companies to make more disclosures about revenue. ) Tj ET Q q 0 0 0 rg BT 523.08 223.25 Td (The core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.25 Td (principle of the amendment is that an entity recognizes revenue to depict the transfer of promised goods or services to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.25 Td (customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.25 Td (services. In applying the new guidance, an entity will \(1\) identify the contract\(s\) with a customer; \(2\) identify the performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.25 Td (obligations in the contract; \(3\) determine the transaction price; \(4\) allocate the transaction price to the contract) Tj ET Q q 0 0 0 rg BT 493.21 175.25 Td (s performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.25 Td (obligations; and \(5\) recognize revenue when \(or as\) the entity satisfies a performance obligation. ) Tj ET Q q 0 0 0 rg BT 438.35 163.25 Td (The new standard provides for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.25 Td (two alternative implementation methods. ) Tj ET Q q 0 0 0 rg BT 215.67 151.25 Td (The first is to apply the new standard retrospectively to each prior reporting period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.25 Td (presented. ) Tj ET Q q 0 0 0 rg BT 92.63 139.25 Td (This method does allow the use of certain practical expedients. ) Tj ET Q q 0 0 0 rg BT 346.54 139.25 Td (The second method is to apply the new standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.25 Td (retrospectively in the year of initial adoption and record a cumulative ef) Tj ET Q q 0 0 0 rg BT 336.71 127.25 Td (fect adjustment for the impact of adjusting contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.25 Td (open at the date of adoption. Under this transition method, we would apply this guidance retrospectively only to contracts that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.25 Td (are not completed contracts at the date of initial application. ) Tj ET Q q 0 0 0 rg BT 291.73 103.25 Td (W) Tj ET Q q 0 0 0 rg BT 300.36 103.25 Td (e would then recognize the cumulative ef) Tj ET Q q 0 0 0 rg BT 465.12 103.25 Td (fect of initially applying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.25 Td (the standard as an adjustment to the opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 346.72 91.25 Td (This method also requires us to disclose comparative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.25 Td (information for the year of adoption. ) Tj ET Q q 0 0 0 rg BT 198.44 79.25 Td (W) Tj ET Q q 0 0 0 rg BT 207.08 79.25 Td (e will adopt the F) Tj ET Q q 0 0 0 rg BT 276.33 79.25 Td (ASB) Tj ET Q q 0 0 0 rg BT 298.56 79.25 Td (s amended guidance for our fiscal year beginning October 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.25 Td (2017; early adoption is not permitted. ) Tj ET Q q 0 0 0 rg BT 202.35 67.25 Td (W) Tj ET Q q 0 0 0 rg BT 210.98 67.25 Td (e are currently evaluating the new guidance and have not determined the impact this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 55.25 Td (standard may have on our financial statements nor have we decided upon the method of adoption. ) 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 50 771.2669921875 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 endstream endobj 165 0 obj <>] /Rotate 0 /Contents 166 0 R>> endobj 166 0 obj <> stream 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 72.00 683.10 Td (In July 2013, the F) Tj ET Q q 0 0 0 rg BT 146.54 683.10 Td (ASB issued amended guidance that resolves the diversity in practice for the presentation of an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. ) Tj ET Q q 0 0 0 rg BT 524.70 671.10 Td (This new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (accounting guidance requires the netting of unrecognized tax benefits \("UTBs"\) against a deferred tax asset for a loss or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (carryforward that would apply in settlement of the uncertain tax positions. Under the new standard, UTBs will be netted against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (all available same-jurisdiction losses or other tax carryforwards that would be utilized, rather than only against carryforwards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (that are created by the UTBs. ) Tj ET Q q 0 0 0 rg BT 168.99 623.10 Td (The new standard requires prospective adoption but allows retrospective adoption for all periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (presented. ) Tj ET Q q 0 0 0 rg BT 92.63 611.10 Td (W) Tj ET Q q 0 0 0 rg BT 101.27 611.10 Td (e will adopt the F) Tj ET Q q 0 0 0 rg BT 170.52 611.10 Td (ASB) Tj ET Q q 0 0 0 rg BT 192.75 611.10 Td (s amended guidance for our fiscal year beginning September 28, 2014. ) Tj ET Q q 0 0 0 rg BT 477.76 611.10 Td (W) Tj ET Q q 0 0 0 rg BT 486.40 611.10 Td (e are currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (evaluating the impact of this accounting standard update on our Consolidated Financial Statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.06 565.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 545.10 Td (Fiscal 2013 ) Tj ET Q q 0 0 0 rg BT 98.94 545.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 521.10 Td (Lumera Laser) Tj ET Q q 0 0 0 rg BT 110.70 521.10 Td ( GmbH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 497.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 497.10 Td (December20, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.31 497.10 Td (, we acquired privately held Lumera Laser GmbH \(Kaiserslautern, Germany\) \("Lumera"\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 485.10 Td ($51.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.65 485.10 Td (, excluding transaction costs. Lumera manufactures ultrafast solid state lasers for microelectronics, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (OEM medical and materials processing applications. Lumera has been included in our Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 449.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 426.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 426.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 396.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 396.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 366.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 366.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 336.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 336.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 306.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 306.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 276.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 276.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 246.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 246.60 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 436 231.60000000000002 m 506 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 217.60000000000002 m 506 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 215.60000000000002 m 506 215.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 416.27 Td (Tangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 401.27 Td ( Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 401.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 401.27 Td (7,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 386.27 Td ( Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 386.27 Td (2,770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 371.27 Td ( Other tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 371.27 Td (4,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 356.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 356.27 Td (24,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 341.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 326.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 326.27 Td (21,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 311.27 Td ( In-process R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.00 311.27 Td (1,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 296.27 Td ( Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 296.27 Td (200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 281.27 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.00 281.27 Td (6,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 266.27 Td ( Backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 266.27 Td (900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 251.27 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 251.27 Td (\(9,300\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 236.27 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 236.27 Td (\(8,793\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 221.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 221.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 221.27 Td (51,461) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 193.10 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 49.50 181.10 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 49.50 169.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 169.10 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 72.00 145.10 Td (None of the goodwill from this purchase is deductible for tax purposes.) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 72.00 128.03 353.76 -9.09 re f /GS0 gs q 0 0 0 rg BT 72.00 121.10 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 425.76 121.10 Td (f less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.81 121.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.25 121.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.02 121.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.69 121.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 116.03 20.00 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 109.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 97.10 Td (Acquired IPR&D assets are initially recognized at fair value and are classified as indefinite-lived assets until the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.10 Td (successful completion or abandonment of the associated research and development ef) Tj ET Q q 0 0 0 rg BT 391.41 85.10 Td (forts. ) Tj ET Q q 0 0 0 rg BT 414.56 85.10 Td (The value assigned to IPR&D was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (determined by considering the value of the products under development to the overall development plan, estimating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (resulting net cash flows from the projects when completed and discounting the net cash flows to their present value. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (development period, these assets will not be amortized as char) Tj ET Q q 0 0 0 rg BT 298.68 49.10 Td (ges to earnings; instead these assets will be subject to periodic ) 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 50 771.2669921875 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 endstream endobj 167 0 obj <>] /Rotate 0 /Contents 168 0 R>> endobj 168 0 obj <> stream 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 49.50 686.10 Td (impairment testing. ) Tj ET Q q 0 0 0 rg BT 129.58 686.10 Td (The development process for the acquired IPR&D projects was completed and amortization of the assets, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (existing technologies, began in the third quarter of fiscal 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 650.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 650.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 650.10 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 49.50 638.10 Td (statements of operations for our fiscal year 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (Innolight Innovative Laser) Tj ET Q q 0 0 0 rg BT 163.78 614.10 Td ( and Systemtechnik GmbH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 590.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 590.10 Td (October30, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.43 590.10 Td (, we acquired all of the outstanding shares of Innolight Innovative Laser and Systemtechnik GmbH ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (\("Innolight"\) for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.91 578.10 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.80 578.10 Td (, excluding transaction costs. Innolight provides a core technology building block ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (for an emer) Tj ET Q q 0 0 0 rg BT 95.40 566.10 Td (ging class of commercial, sub-nanosecond lasers for microelectronics manufacturing. Its semiconductor) Tj ET Q q 0 0 0 rg BT 510.62 566.10 Td (-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (architecture delivers pulsed output that can be amplified by conventional or fiber amplifiers to ultimately deliver infrared, green ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (or ultraviolet light capable of processing a range of materials. Innolight has been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 506.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 483.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 483.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 453.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 453.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 423.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 423.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 393.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 393.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 363.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 363.60 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 436 348.6 m 506 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 348.6 m 506 348.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 334.6 m 506 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 332.6 m 506 332.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 473.27 Td (Tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 473.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 473.27 Td (2,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 458.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 458.27 Td (8,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 443.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 428.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 428.27 Td (8,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 413.27 Td ( In-process R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 413.27 Td (430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 398.27 Td ( Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 398.27 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 383.27 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 383.27 Td (2,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 368.27 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 368.32 Td (\(3,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 368.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 353.27 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 353.32 Td (\(480) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 353.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 338.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 338.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 338.27 Td (18,336) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 310.10 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 49.50 298.10 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 49.50 286.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 286.10 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 72.00 262.10 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 72.00 238.10 Td (The identifiable intangible assets are being amortized over their respective useful lives of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.59 238.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.26 238.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.04 238.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.81 238.10 Td ( years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 214.10 Td (IPR&D consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.06 214.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.06 214.10 Td ( projects that have not yet reached technological feasibility) Tj ET Q q 0 0 0 rg BT 399.88 214.10 Td (. ) Tj ET Q q 0 0 0 rg BT 404.70 214.10 Td (The projects have not been completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.16 202.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.42 202.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 178.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 178.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 178.10 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 49.50 166.10 Td (statements of operations for our fiscal year 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (4. F) Tj ET Q q 0 0 0 rg BT 64.87 142.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 85.52 142.10 Td (V) Tj ET Q q 0 0 0 rg BT 91.45 142.10 Td (ALUE OF) Tj ET Q q 0 0 0 rg BT 135.25 142.10 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 193.87 142.10 Td ( ) Tj ET Q q 0 0 0 rg BT 195.82 142.10 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 235.01 142.10 Td (AND LIABILITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 122.10 Td (e measure our cash equivalents and marketable securities at fair value. ) Tj ET Q q 0 0 0 rg BT 365.72 122.10 Td (The fair values of our financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 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 98.10 Td (markets. Level1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (assets. Level2 valuations are obtained from quoted market prices in active markets involving similar assets; these instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (which mature within one year and are issued by counterparties with high credit ratings, include U.S. ) Tj ET Q q 0 0 0 rg BT 452.26 74.10 Td (T) Tj ET Q q 0 0 0 rg BT 458.02 74.10 Td (reasury and international ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (government obligations, investment-grade corporate bonds, certificates of deposit and commercial paper) Tj ET Q q 0 0 0 rg BT 467.14 62.10 Td (. Level3 valuations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (would be based on unobservable inputs to a valuation model and include our own data about assumptions market participants ) 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 50 771.2669921875 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 (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.56 712.60 Td (TIONS \(Continued\)) 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 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 49.50 695.10 Td (would use in pricing the asset or liability based on the best information available under the circumstances; as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.99 695.10 Td (September27, ) 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 ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 683.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.20 683.10 Td (, we did not have any assets or liabilities valued based on Level3 valuations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 663.10 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 308.42 663.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.69 663.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.12 663.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.39 663.10 Td ( are summarized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (below \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 536.60 228.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 536.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 536.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 536.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 536.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 506.60 228.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 506.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 506.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 506.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 506.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 476.60 228.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 476.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 357.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 476.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.50 476.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 476.60 56.00 -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 302.5 579.6 m 357.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 579.6 m 416.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 579.6 m 476.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 579.6 m 480.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 579.6 m 536.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 564.6 m 357.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357.5 564.6 m 361.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.5 564.6 m 416.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 579.6 m 476.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 564.6 m 476.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 564.6 m 480.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 579.6 m 536.5 579.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 564.6 m 536.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.5 564.6 m 476.5 564.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 564.6 m 536.5 564.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.35 623.83 Td (Quoted Prices ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.15 615.83 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.60 607.83 Td (Active ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.05 599.83 Td (Markets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.35 591.83 Td (for) Tj ET Q q 0 0 0 rg BT 318.42 591.83 Td ( Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.80 583.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.05 607.83 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.35 599.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.90 591.83 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.35 583.83 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.85 623.83 Td (Quoted Prices ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.65 615.83 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.10 607.83 Td (Active ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.55 599.83 Td (Markets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.85 591.83 Td (for) Tj ET Q q 0 0 0 rg BT 436.92 591.83 Td ( Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.30 583.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.55 607.83 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.85 599.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.40 591.83 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.85 583.83 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.60 568.83 Td (September 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.60 568.83 Td (September 28, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 77.00 555.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.00 555.83 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 555.83 Td (\(Level2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.00 555.83 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.00 555.83 Td (\(Level2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 541.27 Td (Money market fund deposits\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 541.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.15 541.27 Td (5,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.00 541.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 541.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.00 541.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 541.27 Td (12,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 541.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.65 541.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 526.27 Td (Certificates of deposit\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.65 526.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 526.27 Td (12,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 526.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 526.27 Td (28,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 511.27 Td (U.S. and international government obligations\(2\)\(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.65 511.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 511.27 Td (150,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 511.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 511.27 Td (109,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 496.27 Td (Corporate notes and obligations\(2\)\(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.65 496.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 496.27 Td (52,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 496.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 496.27 Td (20,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 481.27 Td (Commercial paper\(3\)\(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.65 481.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 481.27 Td (25,383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 481.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 481.27 Td (9,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 466.27 Td (Foreign currency contracts\(4\)\(7\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.65 466.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.80 466.32 Td (\(1,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 466.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 466.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 466.27 Td (746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 452.17 Td (Mutual fundsDeferred comp and supplemental plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 442.17 Td (\(5\)\(8\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 443.27 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.65 443.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 443.27 Td (13,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.65 443.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.10 Td (Included in cash and cash equivalents on the Consolidated Balance Sheet. ) Tj ET Q q 0 0 0 rg BT 383.01 418.10 Td (The carrying amounts approximate fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 406.10 Td (value due to the short-term maturities of the cash equivalents.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 385.10 Td (Included in short-term investments on the Consolidated Balance Sheet.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 364.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 364.10 Td (: Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.42 364.10 Td ($1,400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.92 364.10 Td ( recorded in cash and cash equivalents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.63 364.10 Td ($23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.13 364.10 Td ( recorded in short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 352.10 Td (investments on the Consolidated Balance Sheet.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 331.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 331.10 Td (: Included in short-term investments on the Consolidated Balance Sheet.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 310.10 Td (: Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.42 310.10 Td ($303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.42 310.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.86 310.10 Td ($63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.86 310.10 Td ( recorded in prepaid expenses and other assets on the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 298.10 Td (Balance Sheet for non-designated forward contracts and cash flow contracts, respectively) Tj ET Q q 0 0 0 rg BT 442.21 298.10 Td (. Includes $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.59 298.10 Td (1,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.09 298.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.52 298.10 Td ($950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.52 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td (both recorded in other current liabilities on the Consolidated Balance Sheet for non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.10 Td (cash flow contracts, respectively) Tj ET Q q 0 0 0 rg BT 215.35 274.10 Td (. \(See Note 6\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 253.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 253.10 Td (: Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.42 253.10 Td ($1,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.92 253.10 Td ( recorded in prepaid expenses and other assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.01 253.10 Td ($524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.01 253.10 Td ( recorded in other current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 241.10 Td (liabilities on the Consolidated Balance Sheet \(see Note 6\), all of which were non-designated forward contracts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.10 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 220.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 220.10 Td (: Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.42 220.10 Td ($1,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.92 220.10 Td ( recorded in prepaid expenses and other assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.01 220.10 Td ($13,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.51 220.10 Td ( recorded in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 208.10 Td (assets on the Consolidated Balance Sheet.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 187.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.76 187.10 Td (: Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.42 187.10 Td ($1,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.92 187.10 Td ( recorded in prepaid expenses and other assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.01 187.10 Td ($12,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.51 187.10 Td ( recorded in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 175.10 Td (assets on the Consolidated Balance Sheet.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (\(6\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.10 Td (V) Tj ET Q q 0 0 0 rg BT 91.61 154.10 Td (aluations are based upon quoted market prices in active markets involving similar assets. ) Tj ET Q q 0 0 0 rg BT 449.11 154.10 Td (The market inputs used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 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 85.50 130.10 Td (sources with reasonable levels of price transparency) Tj ET Q q 0 0 0 rg BT 293.10 130.10 Td (. Pricing sources include industry standard data providers, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 118.10 Td (master files from lar) Tj ET Q q 0 0 0 rg BT 166.68 118.10 Td (ge financial institutions, and other third party sources which are input into a distribution-curve-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 Td (based algorithm to determine a daily market value. ) Tj ET Q q 0 0 0 rg BT 291.08 106.10 Td (This creates a consensus price or a weighted average price for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 94.10 Td (each security) Tj ET Q q 0 0 0 rg BT 137.32 94.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (\(7\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 73.10 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 523.75 73.10 Td (-the-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 61.10 Td (counter environment with a relatively high level of price transparency) Tj ET Q q 0 0 0 rg BT 364.46 61.10 Td (. ) Tj ET Q q 0 0 0 rg BT 369.28 61.10 Td (The market participants usually are lar) Tj ET Q q 0 0 0 rg BT 523.21 61.10 Td (ge ) 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 50 771.2669921875 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 (ALUE OF) Tj ET Q q 0 0 0 rg BT 135.75 712.60 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 194.37 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 196.32 712.60 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 235.51 712.60 Td (AND LIABILITIES \(Continued\)) 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 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 85.50 695.10 Td (commercial banks. Our foreign currency contracts) Tj ET Q q 0 0 0 rg BT 289.11 695.10 Td ( valuation inputs are based on quoted prices and quoted pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 683.10 Td (intervals from public data sources and do not involve management judgment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (\(8\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 662.10 Td (The fair value of mutual funds is determined based on quoted market prices. Securities traded on a national exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 650.10 Td (are 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 463.21 650.10 Td (-the-counter market and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 638.10 Td (listed 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 49.50 605.10 Td (5. SHOR) Tj ET Q q 0 0 0 rg BT 87.49 605.10 Td (T) Tj ET Q q 0 0 0 rg BT 93.24 605.10 Td (-TERM INVESTMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 585.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 585.10 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 49.50 573.10 Td (equivalents. Investments classified as available-for) Tj ET Q q 0 0 0 rg BT 252.84 573.10 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 49.50 561.10 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 49.50 549.10 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 49.50 537.10 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 73.50 517.10 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 48.00 473.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 473.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 473.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 473.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 473.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 473.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 473.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 473.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 445.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 445.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 445.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 445.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 445.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 445.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 445.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 445.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 417.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 417.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 417.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 417.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 417.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 417.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 417.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 417.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 389.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 389.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 389.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 389.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 389.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 389.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 389.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 389.60 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 268 485.6 m 338 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 485.6 m 343 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 485.6 m 413 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 485.6 m 418 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 485.6 m 488 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 485.6 m 493 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 485.6 m 563 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 473.6 m 338 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 473.6 m 413 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 473.6 m 488 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 473.6 m 563 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 460.6 m 338 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 458.6 m 338 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 460.6 m 413 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 458.6 m 413 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 460.6 m 488 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 458.6 m 488 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 460.6 m 563 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 458.6 m 563 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 458.6 m 338 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 460.6 m 338 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 458.6 m 563 458.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 460.6 m 563 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 389.6 m 338 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 389.6 m 413 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 389.6 m 488 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 389.6 m 338 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 376.6 m 338 376.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 374.6 m 338 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 389.6 m 413 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 376.6 m 413 376.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 374.6 m 413 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 389.6 m 488 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 376.6 m 488 376.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 374.6 m 488 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 389.6 m 563 389.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 376.6 m 563 376.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 374.6 m 563 374.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.50 489.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.35 489.83 Td (Fiscal Year-end September 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.50 477.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.80 477.68 Td (Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.90 477.68 Td (Unrealized Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.75 477.68 Td (Unrealized Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.65 477.68 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 464.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 464.17 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 464.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 464.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 464.17 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 450.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 450.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 450.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 450.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 450.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.50 436.17 Td (Available-for-sale securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 436.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 436.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 436.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 436.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 422.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 422.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 422.17 Td (23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 422.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 422.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 422.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 422.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 422.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 422.17 Td (23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 408.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 408.17 Td (149,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 408.17 Td (831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 408.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 408.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 408.17 Td (150,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 394.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 394.17 Td (52,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 394.17 Td (195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 394.22 Td (\(42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 394.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 394.17 Td (52,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 380.17 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 380.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 380.17 Td (226,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 380.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 380.17 Td (1,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 380.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 380.22 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 380.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 380.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 380.17 Td (227,058) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 328.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 328.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 328.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 328.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 328.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 328.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 328.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 328.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 300.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 300.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 300.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 300.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 300.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 300.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 300.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 300.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 272.60 220.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 272.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 272.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 272.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 272.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 272.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 272.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 272.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 48.00 246.60 220.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 246.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 246.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 246.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 246.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.00 246.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.00 246.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 246.60 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 268 340.6 m 338 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 340.6 m 343 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 340.6 m 413 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 340.6 m 418 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 340.6 m 488 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488 340.6 m 493 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 340.6 m 563 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 328.6 m 338 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 328.6 m 413 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 328.6 m 488 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 328.6 m 563 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 315.6 m 413 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 313.6 m 413 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 315.6 m 488 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 313.6 m 488 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 313.6 m 338 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 315.6 m 338 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 313.6 m 563 313.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 315.6 m 563 315.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 232.60000000000002 m 338 232.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 219.60000000000002 m 338 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 217.60000000000002 m 338 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 232.60000000000002 m 413 232.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 219.60000000000002 m 413 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 217.60000000000002 m 413 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 232.60000000000002 m 488 232.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 219.60000000000002 m 488 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 217.60000000000002 m 488 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 232.60000000000002 m 563 232.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 219.60000000000002 m 563 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 217.60000000000002 m 563 217.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.50 344.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.35 344.83 Td (Fiscal Year-end September 28, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 50.50 332.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.80 332.68 Td (Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.90 332.68 Td (Unrealized Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.75 332.68 Td (Unrealized Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.65 332.68 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 319.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 319.17 Td (110,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 319.17 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 319.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 319.17 Td (110,453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.50 305.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 305.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 305.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 305.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 305.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.50 291.17 Td (Available-for-sale securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 291.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 291.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 291.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 291.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 277.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 277.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 277.17 Td (9,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 277.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 277.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 277.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 277.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 277.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 277.17 Td (9,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 263.17 Td (International government obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 263.17 Td (5,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 263.17 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 263.22 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 263.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 263.17 Td (5,063) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 250.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 250.17 Td (103,694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 250.17 Td (507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 250.22 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 250.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 250.17 Td (104,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 237.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 237.17 Td (20,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 237.17 Td (66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 237.22 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 237.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 237.17 Td (20,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 223.17 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 223.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 223.17 Td (139,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 223.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 223.17 Td (601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 223.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 223.22 Td (\(16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 223.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.50 223.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 223.17 Td (139,666) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 195.10 Td (None of the unrealized losses as of the end of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.04 195.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.04 195.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.37 195.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.37 195.10 Td ( were considered to be other) Tj ET Q q 0 0 0 rg BT 448.18 195.10 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (impairments. ) Tj ET Q q 0 0 0 rg BT 104.31 183.10 Td (The amortized cost and estimated fair value of available-for) Tj ET Q q 0 0 0 rg BT 343.45 183.10 Td (-sale investments in debt securities at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.23 183.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.23 183.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 171.10 Td (year) Tj ET Q q 0 0 0 rg BT 89.01 171.10 Td (-ends, classified as short-term investments on our consolidated balance sheets, were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 105.60 219.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 105.60 69.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 105.60 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 105.60 70.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 105.60 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 105.60 70.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 105.60 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 105.60 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 268 138.60000000000002 m 337 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 138.60000000000002 m 342 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 138.60000000000002 m 412 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 138.60000000000002 m 417 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 138.60000000000002 m 487 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 138.60000000000002 m 492 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 138.60000000000002 m 562 138.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 125.60000000000002 m 337 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 125.60000000000002 m 342 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 125.60000000000002 m 412 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 125.60000000000002 m 487 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 125.60000000000002 m 492 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 125.60000000000002 m 562 125.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 105.60000000000002 m 337 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 105.60000000000002 m 412 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 105.60000000000002 m 487 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 105.60000000000002 m 562 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 80.60000000000002 m 337 80.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 78.60000000000002 m 337 78.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 80.60000000000002 m 412 80.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 78.60000000000002 m 412 78.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 105.60000000000002 m 487 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 80.60000000000002 m 487 80.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 78.60000000000002 m 487 78.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 80.60000000000002 m 562 80.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 78.60000000000002 m 562 78.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 54.60000000000002 m 337 54.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 52.60000000000002 m 337 52.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 54.60000000000002 m 412 54.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 52.60000000000002 m 412 52.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 54.60000000000002 m 487 54.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 52.60000000000002 m 487 52.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 54.60000000000002 m 562 54.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 52.60000000000002 m 562 52.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 143.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.20 142.83 Td (Fiscal Year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 129.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.50 129.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.00 129.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 109.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.00 109.83 Td (Amortized Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.90 117.68 Td (Estimated Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 109.68 Td (Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.50 109.83 Td (Amortized Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.90 117.68 Td (Estimated Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.85 109.68 Td (Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 94.27 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 84.27 Td (in less than 1 year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 84.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 84.27 Td (178,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 84.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 84.27 Td (179,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 84.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 84.27 Td (139,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 84.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 84.27 Td (139,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 70.17 Td (Investments in available-for) Tj ET Q q 0 0 0 rg BT 163.48 70.17 Td (-sale debt securities due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 60.17 Td (in one to five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 58.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 58.27 Td (47,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 58.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 58.27 Td (47,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 58.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 58.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 58.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 58.27 Td () 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 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 (ALUE OF) Tj ET Q q 0 0 0 rg BT 135.75 712.60 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 194.37 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 196.32 712.60 Td (ASSETS ) Tj ET Q q 0 0 0 rg BT 235.51 712.60 Td (AND LIABILITIES \(Continued\)) 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 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 73.50 695.10 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.49 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.49 695.10 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.10 695.10 Td ($37.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.99 695.10 Td ( from the sale of available-for) Tj ET Q q 0 0 0 rg BT 447.90 695.10 Td (-sale securities and realized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.77 683.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.66 683.10 Td (. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.65 683.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 683.10 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.26 683.10 Td ($78.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 683.10 Td ( from the sale of available-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (for) Tj ET Q q 0 0 0 rg BT 60.96 671.10 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 268.95 671.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.84 671.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.44 651.10 Td (A) Tj ET Q q 0 0 0 rg BT 96.92 651.10 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.17 651.10 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 273.62 651.10 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 631.10 Td (All derivatives, whether designated in hedging relationships or not, are recorded on the balance sheet at fair value. ) Tj ET Q q 0 0 0 rg BT 532.88 631.10 Td (W) Tj ET Q q 0 0 0 rg BT 541.51 631.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (enter into foreign exchange forwards to minimize the risks of foreign currency fluctuation of specific assets and liabilities on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.10 Td (the balance sheet; these are not designated as hedging instruments. Our derivative contracts do not contain any credit risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (related contingent features and do not require collateral or other security to be furnished by us or the counterparties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 575.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 575.10 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 49.50 563.10 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 241.78 563.10 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 501.58 563.10 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 319.84 551.10 Td (Y) Tj ET Q q 0 0 0 rg BT 326.06 551.10 Td (en \(JPY\), Korean ) Tj ET Q q 0 0 0 rg BT 398.08 551.10 Td (W) Tj ET Q q 0 0 0 rg BT 406.72 551.10 Td (on and Chinese Renminbi \(RMB\). ) Tj ET Q q 0 0 0 rg BT 546.16 551.10 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 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 510.53 539.10 Td (W) Tj ET Q q 0 0 0 rg BT 519.17 539.10 Td (e attempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (to limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 299.54 527.10 Td (W) Tj ET Q q 0 0 0 rg BT 308.18 527.10 Td (e utilize derivative instruments, primarily forward contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (with maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.10 515.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.08 515.10 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 49.50 503.10 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 49.50 491.10 Td (losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 200.42 491.10 Td (W) Tj ET Q q 0 0 0 rg BT 209.06 491.10 Td (e do not use derivative financial instruments for speculative or trading purposes. If a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (financial counterparty to any of our hedging arrangements experiences financial dif) Tj ET Q q 0 0 0 rg BT 383.07 479.10 Td (ficulties or is otherwise unable to honor the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (terms of the foreign currency hedge, we may experience material financial losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 447.10 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 49.50 435.10 Td (\(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 415.10 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 49.50 403.10 Td (enter into contracts for specific future transactions. Cash flow hedges are evaluated for ef) Tj ET Q q 0 0 0 rg BT 406.39 403.10 Td (fectiveness quarterly) Tj ET Q q 0 0 0 rg BT 488.76 403.10 Td (. ) Tj ET Q q 0 0 0 rg BT 493.58 403.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 519.22 403.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 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 49.50 379.10 Td (earnings when the underlying transaction af) Tj ET Q q 0 0 0 rg BT 224.54 379.10 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 284.61 379.10 Td (The majority of the after) Tj ET Q q 0 0 0 rg BT 382.70 379.10 Td (-tax net income or loss related to derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (instruments included in OCI at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 367.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.58 367.10 Td ( is expected to be reclassified into earnings within 12 months. Changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (the fair value of currency forward contracts due to changes in time value are excluded from the assessment of ef) Tj ET Q q 0 0 0 rg BT 497.74 355.10 Td (fectiveness and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (recognized in other income \(expense\) as incurred. ) Tj ET Q q 0 0 0 rg BT 251.45 343.10 Td (W) Tj ET Q q 0 0 0 rg BT 260.09 343.10 Td (e classify the cash flows from the foreign exchange forward contracts that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.10 Td (are accounted for as cash flow hedges in the same section as the underlying item, primarily within cash flows from operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (activities.) 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 50 771.2669921875 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 endstream endobj 175 0 obj <>] /Rotate 0 /Contents 176 0 R>> endobj 176 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (The outstanding notional contract and fair value amounts of non-designated hedge contracts, with maximum maturity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (threemonths, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 640.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 640.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 640.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 640.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 640.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 640.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 640.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 640.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 612.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 612.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 612.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 612.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 612.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 612.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 584.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 584.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 584.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 584.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 584.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 584.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 556.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 556.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 556.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 556.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 556.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 556.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 528.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 528.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 528.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 528.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 528.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 528.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 500.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 500.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 500.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 500.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 500.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 500.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 500.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 500.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 472.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 472.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 472.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 472.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 472.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 472.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 472.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 472.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 444.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 444.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 444.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 444.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 444.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 444.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 444.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 444.60 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 297 659.6 m 355 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 659.6 m 359 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 659.6 m 416 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 659.6 m 477 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 659.6 m 481 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 659.6 m 539 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 659.6 m 355 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 640.6 m 355 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 659.6 m 416 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 640.6 m 416 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 659.6 m 477 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 640.6 m 477 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 659.6 m 539 659.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 640.6 m 539 640.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 173.00 663.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.30 663.83 Td (U.S. Notional Contract Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.05 663.83 Td (U.S. Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 645.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.10 651.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.50 643.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.60 651.68 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 643.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.60 651.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.00 643.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.10 651.68 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.50 643.68 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 631.17 Td (Euro currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.50 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 617.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 617.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.65 617.28 Td (31,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 617.17 Td (46,248) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 617.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 447.30 617.33 Td (\(1,153) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 617.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 617.17 Td (1,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 589.17 Td (Korean WON currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 575.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 575.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.30 575.33 Td (\(2,991) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 575.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 575.22 Td (\(17,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 575.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 575.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 575.28 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 575.22 Td (\(200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 575.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 547.17 Td (Chinese RMB currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 533.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 533.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 533.33 Td (\(15,678) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 533.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 533.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 533.22 Td (\(11,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 533.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 533.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 533.33 Td (\(56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 533.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 533.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 533.22 Td (\(268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 533.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 505.17 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 491.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 491.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.15 491.28 Td (471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 491.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 491.17 Td (5,212) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 491.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.80 491.33 Td (\(3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 491.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 491.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 491.17 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 477.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 477.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 477.33 Td (\(15,084) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 477.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 477.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 477.22 Td (\(11,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 477.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 477.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 477.28 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 477.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 477.17 Td (108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 449.17 Td (Other foreign currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.50 449.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 449.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 449.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 449.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 435.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 435.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.65 435.28 Td (1,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 435.17 Td (1,465) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 435.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 435.33 Td (\(35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 435.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 435.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 435.17 Td (123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 421.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 421.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.30 421.33 Td (\(3,515) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 421.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 421.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 421.22 Td (\(2,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 421.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 421.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 421.28 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 421.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 421.22 Td (\(164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 421.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 397.10 Td (The outstanding notional contract and fair value amounts of designated cash flow hedge contracts, with maximum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (maturity of twelve months, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 334.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 334.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 334.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 334.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 334.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 334.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 334.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 334.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 306.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 306.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 306.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 306.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 306.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 306.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 306.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 306.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 278.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 278.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 278.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 278.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 278.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 278.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 278.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 278.60 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 321 353.6 m 379 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 353.6 m 383 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 353.6 m 440 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 353.6 m 501 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 353.6 m 505 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 353.6 m 563 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 353.6 m 379 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 334.6 m 379 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 353.6 m 440 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 334.6 m 440 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 353.6 m 501 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 334.6 m 501 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 353.6 m 563 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 334.6 m 563 334.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.00 357.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.30 357.83 Td (U.S. Notional Contract Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.05 357.83 Td (U.S. Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 339.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.10 345.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 337.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.60 345.68 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.00 337.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.60 345.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 337.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.10 345.68 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 337.68 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 325.17 Td (Euro currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 325.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 325.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.50 325.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 325.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 311.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.50 311.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.65 311.28 Td (11,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 311.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 311.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.50 311.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.80 311.33 Td (\(950) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.15 311.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 311.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 311.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 283.17 Td (JPY currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 269.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.50 269.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.30 269.33 Td (\(12,091) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.15 269.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 269.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.50 269.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.15 269.28 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 269.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 269.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 245.10 Td (e enter into certain derivative forward contracts to sell Japanese ) Tj ET Q q 0 0 0 rg BT 338.88 245.10 Td (Y) Tj ET Q q 0 0 0 rg BT 345.10 245.10 Td (en and buy Euro to hedge exposures related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (photonics-based solutions in ) Tj ET Q q 0 0 0 rg BT 165.33 233.10 Td (Asia. In order to facilitate the hedge, we transact with counterparties in the US directly and then ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.10 Td (allocate the hedge contracts to our af) Tj ET Q q 0 0 0 rg BT 196.47 221.10 Td (filiates through a back-to-back relationship with our German subsidiary) Tj ET Q q 0 0 0 rg BT 482.41 221.10 Td (. ) Tj ET Q q 0 0 0 rg BT 487.23 221.10 Td (The German ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.10 Td (subsidiary designates these hedge contracts as cash flow hedges under ) Tj ET Q q 0 0 0 rg BT 332.20 209.10 Td (ASC 815.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 189.10 Td (The fair values of our derivative instruments are included in prepaid expenses and other assets and in other current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (liabilities 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 439.40 177.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.66 177.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 165.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 145.10 Td (The locations and amounts of designated and non-designated derivative instruments) Tj ET Q q 0 0 0 rg BT 411.83 145.10 Td ( gains and losses in the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (financial statements for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.81 133.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.07 133.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.51 133.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.77 133.10 Td ( were as follows \(in thousands\):) 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 50 771.2669921875 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 endstream endobj 177 0 obj <>] /Rotate 0 /Contents 178 0 R>> endobj 178 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (86) 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 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 647.50 63.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 647.50 6.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 647.50 75.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 647.50 6.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 647.50 76.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 647.50 9.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 647.50 76.00 -34.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 581.50 146.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 581.50 63.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 581.50 6.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 581.50 75.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 581.50 6.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 581.50 76.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 581.50 9.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 581.50 76.00 -41.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 515.50 146.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 515.50 63.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 515.50 6.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 515.50 75.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 515.50 6.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 515.50 76.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 515.50 9.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 515.50 76.00 -33.00 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 298.10 684.73 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 319.80 684.73 Td (Y) Tj ET Q q 0 0 0 rg BT 324.69 684.73 Td (ear) Tj ET Q q 0 0 0 rg BT 335.65 684.73 Td ( Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.60 676.73 Td (September) Tj ET Q q 0 0 0 rg BT 332.33 676.73 Td (27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 684.73 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 401.30 684.73 Td (Y) Tj ET Q q 0 0 0 rg BT 406.19 684.73 Td (ear) Tj ET Q q 0 0 0 rg BT 417.15 684.73 Td ( Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.10 676.73 Td (September) Tj ET Q q 0 0 0 rg BT 413.83 676.73 Td ( 28, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.60 684.73 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 486.30 684.73 Td (Y) Tj ET Q q 0 0 0 rg BT 491.19 684.73 Td (ear) Tj ET Q q 0 0 0 rg BT 502.15 684.73 Td ( Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.10 676.73 Td (September) Tj ET Q q 0 0 0 rg BT 498.83 676.73 Td ( 29, 2012) 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 85.50 635.96 Td (Gains\(losses\) recognized in AOCI) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 626.96 Td (on derivatives \(effective portion\),) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 617.96 Td (after tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 617.96 Td (AOCI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 618.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.80 618.23 Td (\(573) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 618.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 618.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 618.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 618.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 618.17 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 603.96 Td (Gains\(losses\) reclassified from) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 594.96 Td (AOCI into income \(effective) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 585.96 Td (portion\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 585.96 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 586.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.80 586.23 Td (\(13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 586.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 586.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 586.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 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BT 79.50 530.18 Td (Derivatives not designated as) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 520.18 Td (hedging instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 486.96 Td (Gains\(losses\) recognized in income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 495.96 Td (Other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 486.96 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 487.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.30 487.23 Td (\(3,105) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 487.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 487.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 487.17 Td (2,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 487.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.30 487.22 Td (\(2,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 487.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 451.00 Td (The amounts that will be reclassified 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conditions. ) Tj ET Q q 0 0 0 rg BT 508.89 383.00 Td (W) Tj ET Q q 0 0 0 rg BT 517.53 383.00 Td (e present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.00 Td (the fair value of derivative assets and liabilities within the Company's consolidated balance sheet on a gross basis even when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.00 Td (derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.00 Td (derivative contracts do not contain any credit risk related contingent features and do not require collateral or other security to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.00 Td (furnished by us or the counterparties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 315.00 Td (Of) Tj ET Q q 0 0 0 rg BT 83.87 315.00 Td (fsetting of Financial ) Tj ET Q q 0 0 0 rg BT 166.36 315.00 Td (Assets/Liabilities under Master Netting ) Tj ET Q q 0 0 0 rg BT 325.78 315.00 Td (Agreements with Derivative Counterparties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 303.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 303.00 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.47 303.00 Td ( \(in thousands\): ) 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 50 771.2669921875 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 endstream endobj 179 0 obj <>] /Rotate 0 /Contents 180 0 R>> endobj 180 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (87) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 574.50 110.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.50 574.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 574.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 574.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 574.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 574.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 574.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 574.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 574.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 574.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 574.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 574.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 574.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 523.50 110.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.50 523.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 523.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 523.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 523.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 523.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 523.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 523.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 523.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 523.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 523.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 523.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 523.50 50.00 -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 384.5 658.5 m 439.5 658.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 658.5 m 444.5 658.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 658.5 m 494.5 658.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 189.5 574.5 m 249.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 574.5 m 314.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 574.5 m 379.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 574.5 m 439.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 574.5 m 494.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i 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BT 271.75 578.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.85 641.95 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 324.10 632.95 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 337.00 623.95 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.20 614.95 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 343.00 605.95 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.70 596.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 333.75 587.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 336.75 578.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.45 596.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 387.95 587.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 406.25 578.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.20 596.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 449.75 587.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.75 578.95 Td (Received) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 517.25 587.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 506.45 578.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 564.18 Td (As of September 27,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 554.18 Td (2014:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 538.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 528.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.00 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.65 528.17 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 528.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 528.17 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.30 528.22 Td (\(367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 528.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.00 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 528.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 528.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 513.18 Td (As of September 28,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 503.18 Td (2013:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 488.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 478.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.15 478.17 Td (1,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 478.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 478.17 Td (1,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.30 478.22 Td (\(524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 478.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 478.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 478.17 Td (746) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 462.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 462.00 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.17 462.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.43 462.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 462.00 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.13 462.00 Td ( were related to derivative liabilities which are allowed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 450.00 Td (be net settled against derivative assets in accordance with the master netting agreements.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 311.50 113.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.00 311.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 311.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 311.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 311.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 311.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 311.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 311.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 311.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 311.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 311.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 311.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 311.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 259.50 113.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.00 259.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 259.50 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 259.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 259.50 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 259.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 259.50 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 259.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 259.50 55.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 259.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 259.50 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 259.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 259.50 50.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 396.5 m 441 396.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 396.5 m 446 396.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 396.5 m 496 396.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 311.5 m 251 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 311.5 m 316 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 311.5 m 381 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 311.5 m 441 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 311.5 m 496 311.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 311.5 m 551 311.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 389.95 418.95 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 403.20 409.95 Td (in the Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.85 400.95 Td (Balance Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 209.30 351.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 198.10 342.95 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 198.50 333.95 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 200.50 324.95 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.20 315.95 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.30 360.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 267.95 351.95 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 261.75 342.95 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 260.20 333.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 270.25 324.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.25 315.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.35 378.95 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.60 369.95 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 331.20 360.95 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 326.70 351.95 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 344.50 342.95 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.20 333.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 335.25 324.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.25 315.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 394.95 333.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 389.45 324.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.75 315.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 460.70 333.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.25 324.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 461.70 315.95 Td (Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 518.75 324.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 507.95 315.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 301.18 Td (As of September 27,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 291.18 Td (2014:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 274.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 264.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.50 264.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.30 264.17 Td (\(2,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.15 264.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 264.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 264.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 264.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 264.22 Td (\(2,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 264.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 264.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 264.17 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 264.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 264.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.50 264.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.30 264.22 Td (\(1,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 264.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 250.23 Td (As of September 28,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 240.23 Td (2013:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 225.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 215.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.80 215.17 Td (\(524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.15 215.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 215.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.80 215.22 Td (\(524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 215.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 215.17 Td (524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 215.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.50 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 215.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 199.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 199.00 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.17 199.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.43 199.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.87 199.00 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.13 199.00 Td ( were related to derivative assets which are allowed to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 187.00 Td (net 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 49.50 163.00 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 116.74 163.00 Td ( ) Tj ET Q q 0 0 0 rg BT 118.68 163.00 Td (AND INT) Tj ET Q q 0 0 0 rg BT 159.89 163.00 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 207.96 163.00 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 143.00 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 49.50 131.00 Td (impairment loss may have occurred, and we write down these assets when impaired. ) Tj ET Q q 0 0 0 rg BT 389.50 131.00 Td (W) Tj ET Q q 0 0 0 rg BT 398.13 131.00 Td (e perform our annual impairment tests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.00 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 508.09 119.00 Td (, with any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.00 Td (resulting impairment recorded in the fourth quarter of the fiscal year) Tj ET Q q 0 0 0 rg BT 322.18 107.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 83.00 Td (Coherent has two reporting units: Specialty Laser Systems and Commercial Lasers and Components. In our fiscal 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.00 Td (annual testing, we performed a qualitative assessment of the goodwill for our SLS reporting unit \(operating segment\) during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.00 Td (fourth quarter of fiscal 2014 using the opening balance sheet as of the first day of the fourth quarter and concluded that it was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.00 Td (more likely than not that the fair value of the reporting unit exceeded its carrying amount. In assessing the qualitative factors, ) 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 50 771.2669921875 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 endstream endobj 181 0 obj <>] /Rotate 0 /Contents 182 0 R>> endobj 182 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (we considered the impact of these key factors: macroeconomic conditions, fluctuations in foreign currency) Tj ET Q q 0 0 0 rg BT 475.92 695.10 Td (, market and industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (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 49.50 671.10 Td (performance of the reporting unit including cost factors and budgeted-to-actual revenue results. ) Tj ET Q q 0 0 0 rg BT 433.35 671.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.99 671.10 Td (e also considered our market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (capitalization, stock price performance and the significant excess between the estimated fair value and carrying value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (SLS segment. Based on our assessment, goodwill in the SLS reporting unit was not impaired as of the first day of the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (quarter of fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 139.75 635.10 Td (As such, it was not necessary to perform the two-step goodwill impairment test at that time. For the CLC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (reporting unit \(operating segment\), we elected to bypass the qualitative assessment and proceed directly to performing the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (step of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 199.02 611.10 Td (This election was made because of the decline in fiscal 2014 reporting unit performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (over fiscal 2013, mostly due to market softness predominantly in the advanced packaging market. ) Tj ET Q q 0 0 0 rg BT 443.10 599.10 Td (W) Tj ET Q q 0 0 0 rg BT 451.74 599.10 Td (e performed our Step 1 test ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (using the opening balance sheet as of the first day of the fourth quarter and noted no impairment. ) Tj ET Q q 0 0 0 rg BT 439.48 587.10 Td (W) Tj ET Q q 0 0 0 rg BT 448.12 587.10 Td (e determined the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (of the CLC reporting unit for the Step 1 test using a 50-50% weighting of the Income \(discounted cash flow\) approach and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (Market \(market comparable\) approach. Management completed and reviewed the results of the Step 1 analysis and concluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (that a Step 2 analysis was not required as the estimated fair value of the CLC reporting unit was in excess of its carrying value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (Between the completion of that testing and the end of the fourth quarter of fiscal 2014, we noted no indications of impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (or triggering events with 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 73.50 503.10 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 355.09 503.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.09 503.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.53 503.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.53 503.10 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 463.60 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 463.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 463.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 463.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 463.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 463.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 433.60 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 433.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 433.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 433.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 403.60 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 403.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 403.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 403.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 403.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 403.60 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 366.5 463.6 m 432.5 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 463.6 m 496.5 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 463.6 m 560.5 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 463.6 m 432.5 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 463.6 m 496.5 463.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 418.6 m 432.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 418.6 m 496.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 418.6 m 432.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 418.6 m 496.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 418.6 m 560.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 388.6 m 432.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 388.6 m 496.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 388.6 m 560.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 388.6 m 432.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 374.6 m 432.5 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 372.6 m 432.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 374.6 m 496.5 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 372.6 m 496.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 374.6 m 560.5 374.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 372.6 m 560.5 372.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.95 483.83 Td (Commer) Tj ET Q q 0 0 0 rg BT 408.01 483.83 Td (cial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.20 475.83 Td (Lasers and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.75 467.83 Td (Components \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.40 483.83 Td (Specialty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.25 475.83 Td (Laser) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.55 467.83 Td (Systems \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.25 467.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 453.27 Td (Balance as of September 29, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 453.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 453.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 453.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 453.27 Td (71,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 453.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 453.27 Td (77,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 438.27 Td (Additions \(see Note3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 438.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 438.27 Td (32,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 438.27 Td (32,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 423.27 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 423.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 423.27 Td (2,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 423.27 Td (2,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 408.27 Td (Balance as of September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 408.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 408.27 Td (107,045) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 408.27 Td (113,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 393.27 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 393.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 393.32 Td (\(3,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 393.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 393.32 Td (\(3,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.65 393.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 378.27 Td (Balance as of September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 378.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 378.27 Td (103,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 378.27 Td (109,513) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 356.50 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 255.25 356.50 Td ($25.7 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.37 356.50 Td ( at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 308.14 356.50 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 372.35 356.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.90 356.50 Td (September28, 2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.11 356.50 Td (. ) Tj ET Q q 0 0 0 rg BT 457.67 356.50 Td (At both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 483.89 356.50 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 548.11 356.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 346.90 Td (September28, 2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.71 346.90 Td (, the accumulated impairment loss for the CLC segment was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 309.00 346.90 Td ($19.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.11 346.90 Td ( reflecting an impairment char) Tj ET Q q 0 0 0 rg BT 448.81 346.90 Td (ge in fiscal 2009.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 329.30 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 86.68 329.30 Td (The gross amount of goodwill for our SLS segment was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 268.00 329.30 Td ($105.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.11 329.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 330.66 329.30 Td ($109.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 377.77 329.30 Td ( at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 387.55 329.30 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 451.76 329.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 467.31 329.30 Td (September28, 2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.52 329.30 Td (. ) Tj ET Q q 0 0 0 rg BT 537.08 329.30 Td (At both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 319.70 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.71 319.70 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 129.26 319.70 Td (September28, 2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 193.47 319.70 Td (, the accumulated impairment loss for the SLS segment was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 386.98 319.70 Td ($2.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 426.10 319.70 Td ( reflecting an impairment char) Tj ET Q q 0 0 0 rg BT 522.80 319.70 Td (ge in fiscal ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (2003.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 290.10 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 49.50 278.10 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 49.50 266.10 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 49.50 254.10 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 49.50 242.10 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 72.00 218.10 Td (During the year ended fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.79 218.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.79 218.10 Td (, 2013 and 2012, we did not have any impairment of intangible assets as a result of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (impairment analysis.) 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 50 771.2669921875 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 endstream endobj 183 0 obj <>] /Rotate 0 /Contents 184 0 R>> endobj 184 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (The components of our amortizable intangible assets are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 633.60 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 633.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 633.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 633.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 633.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 633.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 633.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 633.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 603.60 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 603.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 603.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 603.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 603.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 603.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 603.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 603.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 573.60 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 573.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 573.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 573.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 573.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 573.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 573.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 573.60 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 211.5 662.6 m 266.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 662.6 m 270.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 662.6 m 325.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 662.6 m 329.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 662.6 m 384.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 662.6 m 443.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 662.6 m 447.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 662.6 m 502.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 662.6 m 506.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 662.6 m 561.5 662.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 633.6 m 266.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 633.6 m 325.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 633.6 m 384.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 633.6 m 443.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 633.6 m 502.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 633.6 m 561.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 633.6 m 266.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 633.6 m 325.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 633.6 m 443.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 633.6 m 502.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 558.6 m 266.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 558.6 m 325.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 558.6 m 443.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 558.6 m 502.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 558.6 m 266.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 544.6 m 266.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 542.6 m 266.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 558.6 m 325.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 544.6 m 325.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 542.6 m 325.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 558.6 m 384.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 544.6 m 384.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 542.6 m 384.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 558.6 m 443.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 544.6 m 443.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 542.6 m 443.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 558.6 m 502.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 544.6 m 502.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 542.6 m 502.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 558.6 m 561.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 544.6 m 561.5 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 542.6 m 561.5 542.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 667.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.20 666.83 Td (Fiscal 2014 Year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.20 666.83 Td (Fiscal 2013 Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 638.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.55 653.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 238.18 653.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 222.70 645.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 224.45 637.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.80 645.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.60 637.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.50 637.83 Td (Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.55 653.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 415.18 653.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.70 645.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.45 637.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.80 645.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.60 637.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.50 637.83 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 623.27 Td (Existing technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.00 623.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 623.28 Td (81,551) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 623.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 623.33 Td (\(57,827) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 623.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.00 623.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.15 623.28 Td (23,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 623.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 623.27 Td (82,220) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 623.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 623.32 Td (\(51,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 623.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 623.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 623.27 Td (30,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 608.27 Td (Customer lists) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 608.28 Td (16,632) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.80 608.33 Td (\(9,199) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 608.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.15 608.28 Td (7,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 608.27 Td (17,341) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 608.32 Td (\(7,465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 608.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 608.27 Td (9,876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 593.27 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.65 593.28 Td (431) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.30 593.33 Td (\(346) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 593.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.65 593.28 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 593.27 Td (710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 593.32 Td (\(576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 593.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 593.27 Td (134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 578.27 Td (Non-compete agreement) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.65 578.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.65 578.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.65 578.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 578.27 Td (570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 578.32 Td (\(558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 578.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 578.27 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 563.27 Td (In-process research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.65 563.28 Td (424) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.65 563.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.65 563.28 Td (424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.15 563.27 Td (2,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 563.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 563.27 Td (2,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 548.27 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.00 548.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 548.28 Td (99,038) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 548.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 548.33 Td (\(67,372) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 548.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.00 548.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.15 548.28 Td (31,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 548.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 548.27 Td (103,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 548.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 548.32 Td (\(60,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 548.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 548.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 548.27 Td (42,971) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 522.20 Td (\(1\) 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 76.50 500.30 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 49.50 488.30 Td (purchases or licenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 468.30 Td (The weighted average remaining amortization period for existing technology and trade name are approximately 4years, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.30 Td (and the weighted average remaining amortization period for customer lists is less than 1 year) Tj ET Q q 0 0 0 rg BT 420.50 456.30 Td (. Patents, order backlog, non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.30 Td (compete agreements and production know-how are fully amortized. ) Tj ET Q q 0 0 0 rg BT 322.46 444.30 Td (Amortization expense for intangible assets during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.30 Td (years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.10 432.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.10 432.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.10 432.30 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.10 432.30 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.04 432.30 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.04 432.30 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.59 432.30 Td ($9.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.48 432.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.48 432.30 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.37 432.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.81 432.30 Td ($10.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.70 432.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 409.36 432.30 Td (, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.13 432.30 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.02 432.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.02 432.30 Td ($6.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.30 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 420.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 420.30 Td ($6.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 420.30 Td (, respectively) Tj ET Q q 0 0 0 rg BT 199.38 420.30 Td (, for amortization of existing technology and production know-how) Tj ET Q q 0 0 0 rg BT 468.40 420.30 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 400.30 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 49.50 353.80 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 353.80 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 325.80 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 325.80 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 297.80 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 297.80 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 269.80 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 269.80 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 491.5 353.79999999999995 m 561.5 353.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 353.79999999999995 m 561.5 353.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 269.79999999999995 m 561.5 269.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 269.79999999999995 m 561.5 269.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 256.79999999999995 m 561.5 256.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 254.79999999999995 m 561.5 254.79999999999995 l s 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 508.65 373.88 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.10 365.88 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.75 357.88 Td (Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 344.37 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 344.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 344.37 Td (8,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 330.37 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 330.37 Td (8,472) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 316.37 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 316.37 Td (7,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 302.37 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 302.37 Td (4,338) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 288.37 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 288.37 Td (2,315) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 274.37 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 274.37 Td (297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 260.37 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 260.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 260.37 Td (31,666) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 232.30 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 144.07 232.30 Td ( DET) Tj ET Q q 0 0 0 rg BT 166.38 232.30 Td (AILS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.30 Td (Prepaid expenses and other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 167.80 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 167.80 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 167.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 167.80 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 139.80 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 139.80 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 139.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 139.80 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 427.5 180.79999999999995 m 492.5 180.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 180.79999999999995 m 496.5 180.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 180.79999999999995 m 561.5 180.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 180.79999999999995 m 492.5 180.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 167.79999999999995 m 492.5 167.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 180.79999999999995 m 561.5 180.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 167.79999999999995 m 561.5 167.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 167.79999999999995 m 492.5 167.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 167.79999999999995 m 561.5 167.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 139.79999999999995 m 492.5 139.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 139.79999999999995 m 561.5 139.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 139.79999999999995 m 492.5 139.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 126.79999999999995 m 492.5 126.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 124.79999999999995 m 492.5 124.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 139.79999999999995 m 561.5 139.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 126.79999999999995 m 561.5 126.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 124.79999999999995 m 561.5 124.79999999999995 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 184.53 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 185.03 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 171.53 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 172.03 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 172.03 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 158.37 Td (Prepaid and refundable income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 158.48 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 158.48 Td (11,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 158.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 158.37 Td (23,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 144.37 Td (Prepaid expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 144.48 Td (16,838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 144.37 Td (28,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 130.37 Td (Total prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 130.48 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 130.48 Td (27,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 130.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 130.37 Td (52,577) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 106.30 Td (Other assets consist of the following \(in thousands\):) 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 50 771.2669921875 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 endstream endobj 185 0 obj <>] /Rotate 0 /Contents 186 0 R>> endobj 186 0 obj <> stream 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 49.50 673.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 673.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 643.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 643.50 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 427.5 687.5 m 492.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 687.5 m 496.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 687.5 m 561.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 687.5 m 492.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 673.5 m 492.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 687.5 m 561.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 673.5 m 561.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 673.5 m 492.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 673.5 m 561.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 628.5 m 492.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 628.5 m 561.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 628.5 m 492.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 614.5 m 492.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 612.5 m 492.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 628.5 m 561.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 614.5 m 561.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 612.5 m 561.5 612.5 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 467.70 691.73 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 678.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 677.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 677.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 663.17 Td (Assets related to deferred compensation arrangements \(see Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 663.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 663.18 Td (26,484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 663.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 663.17 Td (23,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 648.17 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 648.18 Td (37,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 648.17 Td (37,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 633.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 633.18 Td (5,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 633.17 Td (5,457) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 618.17 Td (Total other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 618.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 618.18 Td (69,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 618.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 618.17 Td (66,540) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 594.00 Td (On June8, 2010, we invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.04 594.00 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.93 594.00 Td ( in SiOnyx,Inc., a privately-held company focused on shallow junction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.00 Td (photonics, used to enhance the performance of light sensing devices used in consumer) Tj ET Q q 0 0 0 rg BT 393.72 582.00 Td (, industrial, medical and defense related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.00 Td (applications using black silicon processing. ) Tj ET Q q 0 0 0 rg BT 225.40 570.00 Td (The investment is included in other assets and is being carried on a cost basis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 550.00 Td (Other current liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 505.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 505.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 505.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 505.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 477.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 477.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 477.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 477.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 449.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 449.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 449.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 449.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 421.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 421.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 421.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 421.50 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 427.5 518.5 m 492.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 518.5 m 496.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 518.5 m 561.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 518.5 m 492.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 505.5 m 492.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 518.5 m 561.5 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 505.5 m 561.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 505.5 m 492.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 505.5 m 561.5 505.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 421.5 m 492.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 421.5 m 561.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 421.5 m 492.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 408.5 m 492.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 406.5 m 492.5 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 421.5 m 561.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 408.5 m 561.5 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 406.5 m 561.5 406.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 522.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 522.73 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 509.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 509.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 509.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 496.07 Td (Accrued payroll and benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 496.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 496.18 Td (29,228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 496.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 496.07 Td (29,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 482.07 Td (Accrued expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 482.18 Td (13,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 482.07 Td (11,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 468.07 Td (Warranty Reserve \(see Note 2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 468.18 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 468.07 Td (18,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 454.07 Td (Other taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 454.18 Td (5,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 454.07 Td (6,147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 440.07 Td (Customer deposits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 440.18 Td (2,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 440.07 Td (1,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 426.07 Td (Deferred income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 426.18 Td (15,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 426.07 Td (16,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 412.07 Td (Total other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 412.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 412.18 Td (82,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 412.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 412.07 Td (84,566) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 388.00 Td (Other long-term liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 343.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 343.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 343.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 343.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 315.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 315.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 315.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 315.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 287.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 287.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 287.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 287.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 259.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 259.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 259.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 259.50 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 427.5 356.5 m 492.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 356.5 m 496.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 356.5 m 561.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 356.5 m 492.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 343.5 m 492.5 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 356.5 m 561.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 343.5 m 561.5 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 343.5 m 492.5 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 343.5 m 561.5 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 259.5 m 492.5 259.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 259.5 m 561.5 259.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 259.5 m 492.5 259.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 246.5 m 492.5 246.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 244.5 m 492.5 244.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 259.5 m 561.5 259.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 246.5 m 561.5 246.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 244.5 m 561.5 244.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 360.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 360.73 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 347.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 347.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 347.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 334.07 Td (Long-term taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 334.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 334.18 Td (15,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 334.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 334.07 Td (15,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 320.07 Td (Deferred compensation \(see Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 320.18 Td (27,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 320.07 Td (24,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 306.07 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 306.18 Td (6,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 306.07 Td (10,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 292.07 Td (Deferred income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 292.18 Td (3,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 292.07 Td (2,734) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 278.07 Td (Asset retirement obligations liability \(see Note2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 278.18 Td (2,222) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 278.07 Td (2,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 264.07 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 264.18 Td (6,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 264.07 Td (6,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 250.07 Td (Total other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 250.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 250.18 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 250.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 250.07 Td (62,132) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 222.00 Td ( 9. SHOR) Tj ET Q q 0 0 0 rg BT 89.99 222.00 Td (T) Tj ET Q q 0 0 0 rg BT 95.74 222.00 Td (-TERM BORROWINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 202.00 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 428.30 202.00 Td (. ) Tj ET Q q 0 0 0 rg BT 433.12 202.00 Td (W) Tj ET Q q 0 0 0 rg BT 441.76 202.00 Td (e have a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.11 202.00 Td ($14.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.01 202.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.00 Td (of unsecured foreign lines of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.88 190.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 190.00 Td (. ) Tj ET Q q 0 0 0 rg BT 298.60 190.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.10 190.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.36 190.00 Td (, we had used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.29 190.00 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.18 190.00 Td ( of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.00 Td (available foreign lines of credit as guarantees. ) Tj ET Q q 0 0 0 rg BT 235.35 178.00 Td (These credit facilities were used in Europe and Japan during fiscal 2014. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.00 Td (addition, our domestic line of credit consists of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.23 166.00 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.13 166.00 Td ( unsecured revolving credit account with Union Bank of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.00 Td (California. ) Tj ET Q q 0 0 0 rg BT 94.86 154.00 Td (The agreement will expire on May31, 2017. ) Tj ET Q q 0 0 0 rg BT 275.74 154.00 Td (The line of credit is subject to covenants related to financial ratios and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.00 Td (tangible net worth with which we are currently in compliance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.80 142.00 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.03 142.00 Td ( amounts have been drawn upon our domestic line of credit as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.00 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 130.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.59 130.00 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 106.00 Td (10. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 146.45 106.00 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 86.00 Td (Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 66.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 66.00 Td (e lease several of our facilities under operating leases.) 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 50 771.2669921875 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 endstream endobj 187 0 obj <>] /Rotate 0 /Contents 188 0 R>> endobj 188 0 obj <> stream 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 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 (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.06 695.10 Td ( are as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 658.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 658.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 630.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 630.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 602.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 602.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 574.60 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 574.60 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 502 574.6 m 562 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 574.6 m 562 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 561.6 m 562 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 559.6 m 562 559.6 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 52.5 661.580078125 m 72.49609375 661.580078125 l s q 0 0 0 rg BT 52.50 662.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.50 662.83 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 649.17 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 649.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 649.17 Td (9,453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 635.17 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 635.17 Td (7,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 621.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 621.17 Td (6,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 607.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 607.17 Td (4,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 593.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 593.17 Td (3,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 579.17 Td (Thereafter through 2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 579.17 Td (4,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 565.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 565.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 565.17 Td (36,242) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 541.10 Td (Rent expense, exclusive of sublease income, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.05 541.10 Td ($1) Tj ET Q q 0 0 0 rg BT 281.68 541.10 Td (1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.57 541.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.57 541.10 Td ($10.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.46 541.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.90 541.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.79 541.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.73 541.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.73 541.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.73 541.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.73 541.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 529.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 529.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 509.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 509.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.21 509.10 Td (, we had total purchase commitments for inventory over the next year of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.04 509.10 Td ($23.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 497.10 Td ( and purchase obligations for fixed assets and services of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.32 497.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.21 497.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.92 497.10 Td ($40.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.81 497.10 Td ( of purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (commitments for inventory and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.36 485.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.25 485.10 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 449.96 485.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.23 485.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 465.10 Td (Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 445.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 445.10 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 518.55 445.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 455.42 433.10 Td (. On May 14, 2013, IMRA) Tj ET Q q 0 0 0 rg BT 561.53 433.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 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 49.50 409.10 Td (Germany) Tj ET Q q 0 0 0 rg BT 86.06 409.10 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 179.09 409.10 Td ( ) Tj ET Q q 0 0 0 rg BT 181.04 409.10 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 467.17 409.10 Td (The complaint alleges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 205.29 397.10 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 308.79 397.10 Td ( Patent No. 754,103, entitled Method For Controlling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 243.33 385.10 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 394.79 385.10 Td (The patent is owned by the University of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.10 Td (Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 176.50 373.10 Td (The complaint seeks unspecified compensatory damages, the cost of court proceedings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (seeks to permanently enjoin the Company from infringing the patent in the future. Management has made an accrual, of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (amount which is reasonably estimable and probable, with respect to this matter and has determined, based on its current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (knowledge, that the amount or range of reasonably possible losses in excess of the amounts already accrued, is not reasonably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (estimable. ) Tj ET Q q 0 0 0 rg BT 92.27 325.10 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 512.79 325.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 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 49.50 301.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 301.10 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 250.64 301.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 277.10 Td (1. ST) Tj ET Q q 0 0 0 rg BT 76.00 277.10 Td (OCK REPURCHASES ) Tj ET Q q 0 0 0 rg BT 177.68 277.10 Td (AND DIVIDENDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 257.10 Td (During fiscal 2012, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.48 257.10 Td (543,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.98 257.10 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 534.63 257.10 Td ($45.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.13 257.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.57 245.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.46 245.10 Td (, excluding expenses. ) Tj ET Q q 0 0 0 rg BT 282.31 245.10 Td (There are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.83 245.10 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.83 245.10 Td ( funds remaining authorized for repurchase at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 233.10 Td ( under this repurchase program. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 213.10 Td (On October4, 2012, the Board of Directors authorized a buyback program to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.88 213.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.77 213.10 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (common stock. ) Tj ET Q q 0 0 0 rg BT 112.92 201.10 Td (The program was authorized for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.26 201.10 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.26 201.10 Td ( months from the date of authorization. No shares were purchased under this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (program. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 165.10 Td (On December10, 2012, we announced that the Board of Directors approved a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.61 165.10 Td ($1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.11 165.10 Td ( per share special cash dividend on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.10 Td (our outstanding common stock payable on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.69 153.10 Td (December 27, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.28 153.10 Td ( to stockholders of record on December19, 2012, resulting in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.26 141.10 Td ($24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.16 141.10 Td ( in the first quarter of fiscal 2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 117.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 117.10 Td (July25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 117.10 Td (, our Board of Directors authorized a buyback program authorizing the Company to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 105.10 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 300.03 105.10 Td (July31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.20 105.10 Td (. No shares were purchased under this program ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (during fiscal 2014.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 69.10 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.28 69.10 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.00 69.10 Td (A) Tj ET Q q 0 0 0 rg BT 167.12 69.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.01 69.10 Td (ARD, OPTION ) Tj ET Q q 0 0 0 rg BT 244.07 69.10 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 311.96 69.10 Td ( PLANS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 77.63 49.10 Td (ed Compensation Plans) 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 50 771.2669921875 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 endstream endobj 189 0 obj <>] /Rotate 0 /Contents 190 0 R>> endobj 190 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 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 49.50 683.10 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 49.50 671.10 Td (investment options. ) Tj ET Q q 0 0 0 rg BT 130.15 671.10 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 49.50 659.10 Td (order to approximate the changes in the liability to the employees. ) Tj ET Q q 0 0 0 rg BT 316.46 659.10 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 49.50 647.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 615.60 388.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 615.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 615.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 615.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 588.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 588.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 588.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 588.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 560.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 560.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 560.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 560.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 532.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 532.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 532.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 532.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 504.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 504.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 504.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 504.60 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 437.5 615.6 m 497.5 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 615.6 m 501.5 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 615.6 m 561.5 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 615.6 m 497.5 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 602.6 m 497.5 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 615.6 m 561.5 615.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 602.6 m 561.5 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 602.6 m 497.5 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 602.6 m 561.5 602.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 574.6 m 497.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 574.6 m 561.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 574.6 m 497.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 561.6 m 497.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 559.6 m 497.5 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 574.6 m 561.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 561.6 m 561.5 561.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 559.6 m 561.5 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 504.6 m 497.5 504.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 491.6 m 497.5 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 489.6 m 497.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 504.6 m 561.5 504.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 491.6 m 561.5 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 489.6 m 561.5 489.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 619.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.70 619.83 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 606.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 606.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 606.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 593.17 Td (Cash surrender value of life insurance contracts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 593.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 593.28 Td (12,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 593.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 593.17 Td (11,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 579.17 Td (Fair value of mutual funds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 579.28 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 579.17 Td (13,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 565.17 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 565.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 565.28 Td (27,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 565.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 565.17 Td (24,807) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 537.17 Td (Total assets, included in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 537.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 537.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 523.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 523.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 523.28 Td (1,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 523.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 523.17 Td (1,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 509.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 509.28 Td (26,484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 509.17 Td (23,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 495.17 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 495.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 495.28 Td (27,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 495.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 495.17 Td (24,807) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 454.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 454.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 454.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 454.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 425.60 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 425.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 425.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 425.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 395.60 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 395.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 395.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 395.60 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 437.5 454.6 m 497.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 454.6 m 501.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 454.6 m 561.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 454.6 m 497.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 440.6 m 497.5 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 454.6 m 561.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 440.6 m 561.5 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 395.6 m 497.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 395.6 m 561.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 395.6 m 497.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 381.6 m 497.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 379.6 m 497.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 395.6 m 561.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 381.6 m 561.5 381.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 379.6 m 561.5 379.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 459.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.70 458.83 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 445.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 444.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 444.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 430.27 Td (Total deferred compensation liability, included in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 430.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 430.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 415.27 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 415.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 415.28 Td (1,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 415.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 415.27 Td (1,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 400.27 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 400.28 Td (27,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 400.27 Td (24,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 385.27 Td (Total deferred compensation liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 385.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 385.28 Td (29,373) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 385.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 385.27 Td (26,084) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 361.10 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 49.50 349.10 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 49.50 337.10 Td (net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.76 337.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.66 337.10 Td ( \(including a $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.70 337.10 Td (0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.59 337.10 Td ( death benefit\) in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.98 337.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.98 337.10 Td (, a net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.18 337.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.07 337.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 325.10 Td ( and a net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.14 325.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.03 325.10 Td ( \(including a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.07 325.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.97 325.10 Td ( death benefit\) in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.36 325.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.36 325.10 Td (. Changes in the obligation to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (plan participants are recorded as a component of operating expenses and cost of sales; such amounts were an expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.66 313.10 Td ($4.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 301.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.03 301.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.03 301.10 Td (, an expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.51 301.10 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.40 301.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.04 301.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.04 301.10 Td ( and an expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.95 301.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.85 301.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.49 301.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.49 301.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (Liabilities associated with participant balances under our deferred compensation plans are af) Tj ET Q q 0 0 0 rg BT 419.45 289.10 Td (fected by individual contributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (and distributions made, as well as gains and losses on the participant's investment allocation election.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (Coher) Tj ET Q q 0 0 0 rg BT 75.98 257.10 Td (ent Employee Retir) Tj ET Q q 0 0 0 rg BT 158.55 257.10 Td (ement and Investment Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 237.10 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 49.50 225.10 Td (maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.38 225.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.71 225.10 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 49.50 213.10 Td (on their first day of employment and for Company matching contributions after completing one year of service. ) Tj ET Q q 0 0 0 rg BT 498.08 213.10 Td (The Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (contributions \(net of forfeitures\) during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.89 201.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.89 201.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.89 201.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.89 201.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.83 201.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.83 201.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.26 201.10 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 201.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 201.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.04 201.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.48 201.10 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.37 201.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 189.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (Employee Stock Pur) Tj ET Q q 0 0 0 rg BT 136.54 169.10 Td (chase Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 149.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 149.10 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 49.50 137.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 137.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 137.10 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 326.06 137.10 Td (85%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.39 137.10 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 49.50 125.10 Td (date of commencement of the of) Tj ET Q q 0 0 0 rg BT 178.99 125.10 Td (fering or on the last day of the six-month of) Tj ET Q q 0 0 0 rg BT 353.49 125.10 Td (fering period. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.40 125.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.40 125.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.40 125.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.40 125.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.84 125.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.84 125.10 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.60 113.10 Td (134,321) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 113.10 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.59 113.10 Td (159,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.09 113.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.02 113.10 Td (139,012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.52 113.10 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 337.67 113.10 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 49.50 101.10 Td (average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.40 101.10 Td ($48.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.90 101.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.90 101.10 Td ($37.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.40 101.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.84 101.10 Td ($42.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 101.10 Td ( per share, respectively) Tj ET Q q 0 0 0 rg BT 314.87 101.10 Td (. ) Tj ET Q q 0 0 0 rg BT 319.31 101.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.97 101.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.97 101.10 Td (year) Tj ET Q q 0 0 0 rg BT 395.48 101.10 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 101.10 Td (793,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.84 101.10 Td ( shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 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 69.10 Td (Stock ) Tj ET Q q 0 0 0 rg BT 75.34 69.10 Td (A) Tj ET Q q 0 0 0 rg BT 81.82 69.10 Td (ward and Option Plans) 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 50 771.2669921875 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, OPTION ) Tj ET Q q 0 0 0 rg BT 244.57 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 312.46 712.60 Td ( PLANS \(continued\)) 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 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 (W) Tj ET Q q 0 0 0 rg BT 82.14 695.10 Td (e have a stock plan for which employees and non-employee directors are eligible participants. ) Tj ET Q q 0 0 0 rg BT 459.87 695.10 Td (This plan is the 201) Tj ET Q q 0 0 0 rg BT 538.38 695.10 Td (1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (Equity Incentive Plan \(the "201) Tj ET Q q 0 0 0 rg BT 175.40 683.10 Td (1 Plan"\) which includes our options, time-based restricted stock units and market-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (performance restricted stock units. In prior years, we have had a stock plan for which employees and service providers were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (eligible participants and a non-employee Directors' Stock Option Plan for which only non-employee directors were eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (participants. ) Tj ET Q q 0 0 0 rg BT 100.97 647.10 Td (Those prior plans have expired. Under the 201) Tj ET Q q 0 0 0 rg BT 286.65 647.10 Td (1 Plan, Coherent may grant options and awards \(time-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (restricted stock units and market-based performance restricted stock units\) to purchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.76 635.10 Td (6,747,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.76 635.10 Td ( shares of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (stock, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.38 623.10 Td (5,746,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.38 623.10 Td ( shares remain available for grant at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.14 623.10 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.30 623.10 Td ( year end. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 603.10 Td (Employee options are generally exercisable between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.19 603.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.19 603.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.62 603.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.28 603.10 Td ( years from the grant date at a price equal to the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (market value of the common stock on the date of the grant and generally vest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.78 591.10 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.11 591.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.89 591.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.22 591.10 Td ( annually) Tj ET Q q 0 0 0 rg BT 446.51 591.10 Td (. ) Tj ET Q q 0 0 0 rg BT 451.33 591.10 Td (The Company settles stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 579.10 Td (option exercises with newly issued shares of common stock. Grants to employees generally expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.23 579.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.89 579.10 Td ( years from the original ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (grant date. Since adoption of the 201) Tj ET Q q 0 0 0 rg BT 196.59 567.10 Td (1 Plan, no options have been granted to employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 547.10 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 49.50 535.10 Td (receive an award of restricted stock units of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.65 535.10 Td (3,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.15 535.10 Td ( shares which vest over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.89 535.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.89 535.10 Td ( year period. Beginning with the annual meeting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (of stockholders in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.66 523.10 Td (201) Tj ET Q q 0 0 0 rg BT 138.28 523.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.28 523.10 Td (, the annual grant for non-employee directors became ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.58 523.10 Td (3,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.08 523.10 Td ( shares of restricted stock units that vest on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.10 Td (February 15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.10 511.10 Td ( of the calendar year following the grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 491.10 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 49.50 479.10 Td (performance-based conditions for vesting. Until restricted stock vests, shares \(including those issuable upon vesting of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (applicable restricted stock unit\) are subject to forfeiture if employment terminates prior to the release of restrictions and cannot ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (be transferred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 434.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 434.10 Td (The service based restricted stock awards generally vest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.07 434.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.06 434.10 Td ( years from the date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 413.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 413.10 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 466.14 413.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.13 413.10 Td ( years from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 401.10 Td (date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 380.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 380.10 Td (The market-based performance restricted stock unit award grants are generally either subject to annual vesting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 368.10 Td (over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.77 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.75 368.10 Td ( years 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 419.22 368.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.20 368.10 Td ( years from the date of grant, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 356.10 Td (depending upon achievement of performance measurements based on the performance of the Company's total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 344.10 Td (shareholder returns \(as defined in the plan\) compared with the performance of the Russell 2000 Index.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 324.10 Td (Fair) Tj ET Q q 0 0 0 rg BT 67.64 324.10 Td ( ) Tj ET Q q 0 0 0 rg BT 69.96 324.10 Td (V) Tj ET Q q 0 0 0 rg BT 76.27 324.10 Td (alue of Stock Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 304.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 304.10 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 525.11 304.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 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 49.50 272.10 Td (Determining Fair) Tj ET Q q 0 0 0 rg BT 124.02 272.10 Td ( ) Tj ET Q q 0 0 0 rg BT 126.34 272.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.64 272.10 Td (alue) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 253.30 Td (Stock Options) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 233.30 Td (V) Tj ET Q q 0 0 0 rg BT 78.50 233.30 Td (aluation and amortization method) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.89 233.30 Td (W) Tj ET Q q 0 0 0 rg BT 233.53 233.30 Td (e estimate the fair value of stock options granted using the Black-Scholes-Merton ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.30 Td (option-pricing formula and a single option award approach. ) Tj ET Q q 0 0 0 rg BT 290.08 221.30 Td (This fair value is then amortized on a straight-line basis over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.30 Td (requisite service periods of the awards, which is generally the vesting period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 189.30 Td (Expected T) Tj ET Q q 0 0 0 rg BT 117.28 189.30 Td (erm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.84 189.30 Td (The expected term represents the period that our stock-based awards are expected to be outstanding and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.30 Td (was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.30 Td (based awards, vesting schedules and expectations of future employee behavior as influenced by changes to the terms of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.30 Td (stock-based awards.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 133.30 Td (Expected V) Tj ET Q q 0 0 0 rg BT 117.64 133.30 Td (olatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.75 133.30 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 49.50 121.30 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 505.29 121.30 Td (fer from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.30 Td (actual forfeitures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 89.30 Td (Risk-Fr) Tj ET Q q 0 0 0 rg BT 103.68 89.30 Td (ee Inter) Tj ET Q q 0 0 0 rg BT 134.12 89.30 Td (est Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.05 89.30 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 77.30 Td (implied yield currently available on U.S. ) Tj ET Q q 0 0 0 rg BT 214.83 77.30 Td (T) Tj ET Q q 0 0 0 rg BT 220.59 77.30 Td (reasury zero-coupon issues with an equivalent remaining term.) 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 50 771.2669921875 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, OPTION ) Tj ET Q q 0 0 0 rg BT 244.57 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 312.46 712.60 Td ( PLANS \(continued\)) 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 q 0 0 0 rg BT 301.00 33.60 Td (94) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (Expected Dividend) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.30 695.10 Td (The expected dividend assumption is based on our current expectations about our anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (dividend policy) Tj ET Q q 0 0 0 rg BT 111.34 683.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 663.10 Td (The Company did not grant any stock options in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.31 663.10 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.47 663.10 Td ( or fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.95 663.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.95 663.10 Td (. ) Tj ET Q q 0 0 0 rg BT 375.77 663.10 Td (The fair values of shares purchased under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (employee stock purchase plan for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.39 651.10 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.55 651.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.55 651.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.55 651.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.99 651.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.99 651.10 Td ( were estimated using the following weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 574.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 574.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 574.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 574.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 574.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 574.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 574.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 546.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 546.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 546.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 546.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 546.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 518.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 518.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 518.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 518.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 518.60 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 293 600.6 m 380 600.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 600.6 m 384 600.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 600.6 m 471 600.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 600.6 m 475 600.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 600.6 m 562 600.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 587.6 m 380 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 587.6 m 384 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 587.6 m 471 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 587.6 m 475 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 587.6 m 562 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 587.6 m 380 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 574.6 m 380 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 587.6 m 471 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 574.6 m 471 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 587.6 m 562 587.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 574.6 m 562 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 574.6 m 380 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 574.6 m 471 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 574.6 m 562 574.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 605.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.55 612.68 Td (Employee Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.95 604.68 Td (Pur) Tj ET Q q 0 0 0 rg BT 413.69 604.68 Td (chase Plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 591.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.00 591.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 578.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.00 578.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 578.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.00 578.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 565.17 Td (Expected life in years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.00 565.28 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.00 565.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 565.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 551.17 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.00 551.28 Td (24.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 551.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 551.17 Td (32.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 551.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 551.17 Td (47.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 551.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 537.17 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.00 537.28 Td (0.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 537.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 537.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 537.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 537.17 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 537.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 523.17 Td (Expected dividends) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.50 523.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 523.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 509.17 Td (Weighted average fair value per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 509.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.00 509.28 Td (13.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 509.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 509.17 Td (10.56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 509.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 509.17 Td (13.62) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 486.30 Td (T) Tj ET Q q 0 0 0 rg BT 55.34 486.30 Td (ime-Based Restricted Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 466.30 Td (T) Tj ET Q q 0 0 0 rg BT 82.26 466.30 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 49.50 447.50 Td (Market-Based Performance Restricted Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 427.50 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 427.50 Td (e grant market-based performance restricted stock units to of) Tj ET Q q 0 0 0 rg BT 328.19 427.50 Td (ficers and certain employees. ) Tj ET Q q 0 0 0 rg BT 449.63 427.50 Td (The performance stock unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.50 Td (agreements provide for the award of performance stock units with each unit representing the right to receive one share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.50 Td (Coherent,Inc. common stock to be issued after the applicable award period. ) Tj ET Q q 0 0 0 rg BT 356.16 403.50 Td (The final number of units awarded for this grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.50 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 49.50 379.50 Td (Russell 2000 Index and could range from a minimum of no units to a maximum of twice the initial award. ) Tj ET Q q 0 0 0 rg BT 476.17 379.50 Td (The weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.50 Td (average fair value for these performance units was determined using a Monte Carlo simulation model incorporating the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.50 Td (following weighted average assumptions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 343.50 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 77.50 333.00 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 333.00 106.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.50 304.00 350.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 304.00 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 304.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 304.00 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.50 276.00 350.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 276.00 51.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 276.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 276.00 51.00 -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 427.5 318 m 478.5 318 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 318 m 482.5 318 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 318 m 533.5 318 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 304 m 478.5 304 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 304 m 533.5 304 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 304 m 478.5 304 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 304 m 533.5 304 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.00 322.23 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.50 308.23 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.50 308.23 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 294.57 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.50 294.68 Td (0.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.00 294.68 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 294.57 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 294.57 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 280.57 Td (Volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.50 280.68 Td (36.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.00 280.68 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 280.57 Td (37.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 280.57 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 266.57 Td (Weighted average fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 266.68 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.50 266.68 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.00 266.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 266.57 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.50 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 238.50 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 238.50 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 49.50 226.50 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 49.50 206.50 Td (Stock Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 186.50 Td (The following table shows total stock-based compensation expense included in the Consolidated Statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.50 Td (Operations for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.19 174.50 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.19 174.50 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 174.50 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.19 174.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.63 174.50 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.63 174.50 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 144.00 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 144.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 144.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 144.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 144.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 144.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 116.00 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 116.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 116.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 116.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 116.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 116.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 88.00 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 88.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 88.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 88.00 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 88.00 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 88.00 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 373.5 144 m 433.5 144 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 144 m 497.5 144 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 144 m 561.5 144 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 144 m 433.5 144 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 144 m 497.5 144 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 144 m 561.5 144 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 88 m 433.5 88 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 88 m 497.5 88 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 88 m 561.5 88 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 88 m 433.5 88 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 75 m 433.5 75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 73 m 433.5 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 88 m 497.5 88 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 75 m 497.5 75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 73 m 497.5 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 88 m 561.5 88 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 75 m 561.5 75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 73 m 561.5 73 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 148.08 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.00 148.08 Td (Fiscal 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 148.08 Td (Fiscal 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 134.57 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 134.68 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 134.68 Td (2,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 134.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 134.57 Td (2,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 134.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 134.57 Td (1,670) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 120.57 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 120.68 Td (2,033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 120.57 Td (1,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 120.57 Td (1,628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 106.57 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 106.68 Td (14,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 106.57 Td (14,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 106.57 Td (13,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 92.57 Td (Income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 92.73 Td (\(5,243) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 92.68 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 92.62 Td (\(5,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 92.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 92.62 Td (\(4,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 92.57 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 78.68 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 78.68 Td (13,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 78.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 78.57 Td (13,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 78.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 78.57 Td (11,517) 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 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, OPTION ) Tj ET Q q 0 0 0 rg BT 244.57 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 312.46 712.60 Td ( PLANS \(continued\)) 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 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 (T) Tj ET Q q 0 0 0 rg BT 78.91 695.10 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 401.86 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.86 695.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.42 695.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.31 695.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.59 695.10 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.48 695.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (was amortized into income during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.79 683.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 683.10 Td (, which includes amounts capitalized in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.18 683.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.18 683.10 Td ( and amounts carried over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.59 671.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.59 671.10 Td (. ) Tj ET Q q 0 0 0 rg BT 120.41 671.10 Td (T) Tj ET Q q 0 0 0 rg BT 125.82 671.10 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 448.78 671.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.78 671.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.33 671.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.22 671.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.50 671.10 Td ($2.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 659.10 Td ( was amortized into income during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.18 659.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.18 659.10 Td (, which includes amounts capitalized in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.57 659.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.57 659.10 Td ( and amounts carried ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (over from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.86 647.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.86 647.10 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 49.50 635.10 Td (for those equity awards expected to vest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 615.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 615.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 615.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 615.10 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 49.50 603.10 Td (the Company's stock option and award plans but not yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.38 603.10 Td ($16.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.28 603.10 Td (, net of estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (forfeitures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.48 591.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.37 591.10 Td (. ) Tj ET Q q 0 0 0 rg BT 158.19 591.10 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 49.50 579.10 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 579.10 Td (years and will be adjusted for subsequent changes in estimated forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 559.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 559.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 559.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 559.10 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 531.71 559.10 Td ( but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.89 547.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.78 547.10 Td (. ) Tj ET Q q 0 0 0 rg BT 242.60 547.10 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 49.50 535.10 Td (period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 535.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.07 535.10 Td ( month.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 515.10 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 49.50 503.10 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 49.50 491.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 491.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 491.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.09 491.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.09 491.10 Td (, we have not generated any excess tax benefits as cash flows from financing activities. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.79 491.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.79 491.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (we recorded approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.39 479.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.29 479.10 Td ( of excess tax benefits as cash flows from financing activities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (Stock Options& ) Tj ET Q q 0 0 0 rg BT 122.57 459.10 Td (A) Tj ET Q q 0 0 0 rg BT 129.05 459.10 Td (wards ) Tj ET Q q 0 0 0 rg BT 157.11 459.10 Td (Activity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.10 Td (The following is a summary of option activity for our Stock Option Plans for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.17 439.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.17 439.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.17 439.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.17 439.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.61 439.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.61 439.10 Td ( \(in thousands, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (except per share amounts and remaining contractual term in years\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 363.60 260.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 363.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 363.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 363.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 363.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 363.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 363.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 363.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 333.60 260.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 333.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 333.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 333.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 333.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 333.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 333.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 333.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 303.60 260.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 303.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 303.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 303.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 303.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 303.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 303.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 303.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 273.60 260.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 273.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 273.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 273.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 273.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 273.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 273.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 273.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 243.60 260.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 243.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 243.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 243.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 243.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 243.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 243.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 243.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 213.60 260.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 213.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 213.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 213.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 213.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 213.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 213.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 213.60 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 309.5 363.6 m 369.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 363.6 m 433.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 363.6 m 497.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 363.6 m 561.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 363.6 m 369.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 363.6 m 433.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 303.6 m 433.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 303.6 m 497.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 303.6 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 309.5 303.6 m 369.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 273.6 m 369.5 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 243.60000000000002 m 369.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 229.60000000000002 m 369.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 227.60000000000002 m 369.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 243.60000000000002 m 433.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 229.60000000000002 m 433.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 227.60000000000002 m 433.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 243.60000000000002 m 497.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 229.60000000000002 m 497.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 227.60000000000002 m 497.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 243.60000000000002 m 561.5 243.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 229.60000000000002 m 561.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 227.60000000000002 m 561.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 214.60000000000002 m 369.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 212.60000000000002 m 369.5 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 214.60000000000002 m 433.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 212.60000000000002 m 433.5 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 214.60000000000002 m 497.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 212.60000000000002 m 497.5 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 214.60000000000002 m 561.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 212.60000000000002 m 561.5 212.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 199.60000000000002 m 369.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 197.60000000000002 m 369.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 199.60000000000002 m 433.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 197.60000000000002 m 433.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 199.60000000000002 m 497.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 197.60000000000002 m 497.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 199.60000000000002 m 561.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 197.60000000000002 m 561.5 197.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.50 375.83 Td (Number) Tj ET Q q 0 0 0 rg BT 348.80 375.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.50 367.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 343.80 367.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.75 391.83 Td (W) Tj ET Q q 0 0 0 rg BT 394.31 391.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.05 383.83 Td (A) Tj ET Q q 0 0 0 rg BT 394.23 383.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.75 375.83 Td (Exer) Tj ET Q q 0 0 0 rg BT 395.04 375.83 Td (cise Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.15 367.83 Td (Per) Tj ET Q q 0 0 0 rg BT 397.99 367.83 Td ( Shar) Tj ET Q q 0 0 0 rg BT 416.30 367.83 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.75 399.83 Td (W) Tj ET Q q 0 0 0 rg BT 458.31 399.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.05 391.83 Td (A) Tj ET Q q 0 0 0 rg BT 458.23 391.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.30 383.83 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.30 375.83 Td (Contractual) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.05 367.83 Td (T) Tj ET Q q 0 0 0 rg BT 447.65 367.83 Td (erm in ) Tj ET Q q 0 0 0 rg BT 471.79 367.83 Td (Y) Tj ET Q q 0 0 0 rg BT 476.68 367.83 Td (ears) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.50 383.83 Td (Aggr) Tj ET Q q 0 0 0 rg BT 530.68 383.83 Td (egate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.30 375.83 Td (Intrinsic) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.35 367.83 Td (V) Tj ET Q q 0 0 0 rg BT 526.39 367.83 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 353.27 Td (Outstanding at October1, 2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 353.27 Td (917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 353.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 353.27 Td (27.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 353.27 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 353.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 353.27 Td (13,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 338.27 Td (Exercised) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.30 338.32 Td (\(269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 338.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 338.27 Td (27.56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 338.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 338.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 323.27 Td (Forfeitures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.30 323.32 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 323.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 323.27 Td (26.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 323.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 323.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 308.27 Td (Expirations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.30 308.32 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 308.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 308.27 Td (32.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 308.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 308.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 293.27 Td (Outstanding at September 29, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 293.27 Td (641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 293.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 293.27 Td (27.86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 293.27 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 293.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 293.27 Td (9,823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 278.27 Td (Exercised) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.30 278.32 Td (\(371) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 278.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 278.27 Td (28.56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 278.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 278.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 263.27 Td (Outstanding at September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 263.27 Td (270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 263.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 263.27 Td (26.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 263.27 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 263.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 263.27 Td (9,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 248.27 Td (Exercised) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.30 248.32 Td (\(163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 248.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 248.27 Td (25.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 248.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 248.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 233.27 Td (Outstanding at September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 233.27 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 233.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 233.27 Td (29.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 233.27 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 233.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 233.27 Td (3,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 218.27 Td (Vested and expected to vest at September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 218.27 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 218.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 218.27 Td (29.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 218.27 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 218.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 218.27 Td (3,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 203.27 Td (Exercisable at September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 203.27 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 203.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 203.27 Td (29.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 203.27 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 203.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 203.27 Td (3,859) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 179.10 Td (The aggregate intrinsic value is calculated as the dif) Tj ET Q q 0 0 0 rg BT 281.01 179.10 Td (ference between the exercise price of the underlying options and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (quoted price of our common stock for in-the-money options. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.43 167.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.43 167.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.43 167.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.43 167.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.87 167.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.87 167.10 Td (, the aggregate intrinsic value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (of options exercised under the Company's stock option plans were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.80 155.10 Td ($6.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.69 155.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.69 155.10 Td ($9.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.58 155.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.02 155.10 Td ($6.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.91 155.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 540.57 155.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (determined as of the date of option exercise.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 123.10 Td (The following table summarizes information about stock options outstanding at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 123.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 123.10 Td (year) Tj ET Q q 0 0 0 rg BT 457.66 123.10 Td (-end:) 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 50 771.2669921875 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, OPTION ) Tj ET Q q 0 0 0 rg BT 244.57 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 312.46 712.60 Td ( PLANS \(continued\)) 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 q 0 0 0 rg BT 301.00 33.60 Td (96) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 701.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 701.50 165.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 701.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 701.50 110.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 642.50 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 642.50 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 642.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 642.50 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.00 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 642.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 642.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 612.50 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 612.50 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 612.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 612.50 53.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 612.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 612.50 52.00 -15.00 re f /GS0 gs 0.8 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678.73 Td (W) Tj ET Q q 0 0 0 rg BT 356.31 678.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.05 670.73 Td (A) Tj ET Q q 0 0 0 rg BT 356.23 670.73 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.60 662.73 Td (Exer) Tj ET Q q 0 0 0 rg BT 366.89 662.73 Td (cise) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.40 654.73 Td (Price per) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.05 646.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 371.35 646.73 Td (e) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.25 678.73 Td (W) Tj ET Q q 0 0 0 rg BT 412.81 678.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.55 670.73 Td (A) Tj ET Q q 0 0 0 rg BT 412.73 670.73 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.80 662.73 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.80 654.73 Td (Contractual) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.35 646.73 Td (Life \(Y) Tj ET Q q 0 0 0 rg BT 424.68 646.73 Td (ears\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.50 654.73 Td (Number) Tj ET Q q 0 0 0 rg BT 487.80 654.73 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.50 646.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 482.80 646.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.75 678.73 Td (W) Tj ET Q q 0 0 0 rg BT 526.31 678.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.05 670.73 Td (A) Tj ET Q q 0 0 0 rg BT 526.23 670.73 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.60 662.73 Td (Exer) Tj ET Q q 0 0 0 rg BT 536.89 662.73 Td (cise) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.40 654.73 Td (Price per) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.05 646.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 541.35 646.73 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 632.17 Td ($20.20 - $20.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 632.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.50 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 632.17 Td (20.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.00 632.17 Td (4.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 632.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.50 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 632.17 Td (20.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 617.17 Td ($23.16 - $23.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 617.17 Td (4,400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 617.17 Td (23.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.00 617.17 Td (0.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 617.17 Td (4,400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 617.17 Td (23.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 602.17 Td ($26.16 - $26.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 602.17 Td (48,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 602.17 Td (26.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.00 602.17 Td (2.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 602.17 Td (48,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 602.17 Td (26.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 587.17 Td ($32.00 - $32.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 587.17 Td (6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 587.17 Td (32.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.00 587.17 Td (5.51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 587.17 Td (6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 587.17 Td (32.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 572.17 Td ($44.74 - $44.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 572.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 572.17 Td (44.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.00 572.17 Td (6.98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 572.17 Td (24,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 572.17 Td (44.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 557.17 Td ($20.20 - $44.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 557.17 Td (106,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 557.17 Td (29.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.00 557.17 Td (3.91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.60 557.17 Td (106,819) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 557.17 Td (29.20) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 533.00 Td (The following table summarizes our restricted stock award and restricted stock unit activity for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.81 533.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.81 533.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.81 533.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.81 533.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 521.00 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 502.50 245.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 502.50 91.00 -28.00 re f /GS0 gs 0.8 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1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 227.5 m 377 227.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 243.5 m 473 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 229.5 m 473 229.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 227.5 m 473 227.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.40 486.73 Td (Time Based Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.30 478.73 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.55 494.58 Td (Market-Based) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.20 486.58 Td (Performance Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.30 478.58 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.50 435.73 Td (Number) Tj ET Q q 0 0 0 rg BT 364.80 435.73 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.85 427.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 355.15 427.73 Td (es\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.25 459.73 Td (W) Tj ET Q q 0 0 0 rg BT 393.81 459.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf 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2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 413.17 Td (404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 413.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 413.17 Td (34.71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 413.17 Td (101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 413.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 413.17 Td (49.77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 398.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 398.17 Td (250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 398.17 Td (53.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 398.17 Td (95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 398.17 Td (63.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 383.17 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 383.22 Td (\(206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 383.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 383.17 Td (32.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 383.22 Td (\(44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 383.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 383.17 Td (53.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 368.17 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 368.22 Td (\(8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 368.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 368.17 Td (49.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 368.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 368.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 353.17 Td (Nonvested stock at September 29, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 353.17 Td (440) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 353.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 353.17 Td (47.81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 353.17 Td (152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 353.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 353.17 Td (57.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 338.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 338.17 Td (273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 338.17 Td (44.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 338.17 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 338.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 338.17 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 323.17 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 323.22 Td (\(254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 323.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 323.17 Td (43.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 323.22 Td (\(28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 323.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 323.17 Td (49.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 308.17 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 308.22 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 308.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 308.17 Td (45.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 308.22 Td (\(8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 308.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 308.17 Td (53.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 293.17 Td (Nonvested stock at September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 293.17 Td (453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 293.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 293.17 Td (48.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 293.17 Td (213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 293.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 293.17 Td (54.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 278.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 278.17 Td (226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 278.17 Td (65.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 278.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 278.17 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 263.17 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 263.22 Td (\(275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 263.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 263.17 Td (47.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 263.22 Td (\(33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 263.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 263.17 Td (43.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 248.17 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 248.22 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 248.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 248.17 Td (56.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 248.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 248.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 248.17 Td (46.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 233.17 Td (Nonvested stock at September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 233.17 Td (390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 233.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 233.17 Td (58.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 233.17 Td (229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 233.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 233.17 Td (61.46) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.00 Td (__________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.00 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 196.00 Td (Service-based restricted stock vested during each fiscal year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.00 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 175.00 Td (Performance-based awards and units included at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.54 175.00 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.87 175.00 Td ( of tar) Tj ET Q q 0 0 0 rg BT 328.57 175.00 Td (get goal; under the terms of the awards, the recipient may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 163.00 Td (earn between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.02 163.00 Td (0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.35 163.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.79 163.00 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.12 163.00 Td ( of the award.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 143.00 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 49.50 131.00 Td (permits the holders to satisfy their tax withholding requirements by net settlement, whereby the Company withholds a portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.00 Td (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 q 0 0 0 rg BT 518.19 119.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.00 Td (number of shares withheld to cover tax payments was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.94 107.00 Td (1) Tj ET Q q 0 0 0 rg BT 271.57 107.00 Td (18,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.07 107.00 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.85 107.00 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 107.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.00 107.00 Td (95,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 107.00 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.28 107.00 Td (fiscal 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.44 107.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.88 107.00 Td (90,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.38 107.00 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 107.00 Td (fiscal 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.31 107.00 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.00 Td (tax payments made were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.13 95.00 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.02 95.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.02 95.00 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.91 95.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.35 95.00 Td ($4.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.24 95.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 374.90 95.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 75.00 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 75.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 75.00 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 75.00 Td (-end, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.43 75.00 Td (5,746,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.43 75.00 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 75.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.00 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 63.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 63.00 Td (year) Tj ET Q q 0 0 0 rg BT 113.16 63.00 Td (-end, all outstanding stock options have been issued under plans approved by our shareholders.) 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 50 771.2669921875 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, OPTION ) Tj ET Q q 0 0 0 rg BT 244.57 712.60 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 312.46 712.60 Td ( PLANS \(continued\)) Tj ET Q endstream endobj 199 0 obj <> endobj 200 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (97) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (13. OTHER INCOME \(EXPENSE\), NET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 675.25 Td (Other income \(expense\) includes other) Tj ET Q q 0 0 0 rg BT 228.24 675.25 Td (-net which is comprised of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 628.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 628.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 628.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 628.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 628.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 628.75 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 598.75 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 598.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 598.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 598.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 598.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 598.75 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 372.5 642.75 m 432.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 642.75 m 436.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 642.75 m 496.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 642.75 m 500.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 642.75 m 561.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 642.75 m 432.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 628.75 m 432.5 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 642.75 m 496.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 628.75 m 496.5 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 642.75 m 561.5 642.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 628.75 m 561.5 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 628.75 m 432.5 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 628.75 m 496.5 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 628.75 m 561.5 628.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 583.75 m 432.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 583.75 m 496.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 583.75 m 561.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 583.75 m 432.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 569.75 m 432.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 567.75 m 432.5 567.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 583.75 m 496.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 569.75 m 496.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 567.75 m 496.5 567.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 583.75 m 561.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 569.75 m 561.5 569.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 567.75 m 561.5 567.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 647.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.50 646.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 633.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.00 632.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 632.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 632.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 618.42 Td (Foreign exchange loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.00 618.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.80 618.48 Td (\(2,246) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 618.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 618.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 618.47 Td (\(3,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 618.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 618.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 618.47 Td (\(451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 618.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 603.42 Td (Gain on deferred compensation investments, net \(Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.15 603.43 Td (4,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 603.42 Td (2,123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 603.42 Td (1,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 588.42 Td (Othernet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.65 588.43 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 588.42 Td (170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 588.42 Td (374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 573.42 Td (Other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.00 573.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.15 573.43 Td (2,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 573.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 573.47 Td (\(1,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 573.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 573.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 573.42 Td (1,567) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.04 545.25 Td (T) Tj ET Q q 0 0 0 rg BT 114.97 545.25 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 525.25 Td (The provision for \(benefit from\) income taxes on income \(loss\) before income taxes consists of the following \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.25 Td (thousands\):) Tj ET Q 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 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 444.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 444.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 444.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 444.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 444.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 444.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 414.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 414.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 414.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 414.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 414.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 414.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 384.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 384.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 384.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 384.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 384.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 384.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 354.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 354.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 354.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 354.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 354.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 354.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 324.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 324.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 324.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 324.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 324.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 324.75 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 359 488.75 m 424 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 488.75 m 428 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 488.75 m 493 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 488.75 m 497 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 488.75 m 562 488.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 488.75 m 424 488.75 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 428 488.75 m 493 488.75 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 497 488.75 m 562 488.75 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 359 414.75 m 424 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 414.75 m 493 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 414.75 m 562 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 414.75 m 424 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 414.75 m 493 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 414.75 m 562 414.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 339.75 m 424 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 324.75 m 424 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 339.75 m 493 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 324.75 m 493 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 339.75 m 562 339.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 324.75 m 562 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 310.75 m 424 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 308.75 m 424 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 310.75 m 493 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 308.75 m 493 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 310.75 m 562 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 308.75 m 562 308.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.00 493.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 492.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 479.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 478.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 478.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 478.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 464.42 Td (Currently payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 464.42 Td () 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 499.50 464.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 449.42 Td (Federal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 449.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 449.43 Td (2,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 449.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 449.47 Td (\(1,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 449.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 449.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 449.47 Td (\(7,856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 449.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 434.42 Td (State) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 434.43 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 434.47 Td (\(141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 434.47 Td (\(103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 434.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 419.42 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 419.43 Td (26,885) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 419.42 Td (27,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 419.42 Td (38,259) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 404.43 Td (29,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 404.42 Td (25,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 404.42 Td (30,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 389.42 Td (Deferred:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 389.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 389.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 389.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 374.42 Td (Federal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 374.48 Td (\(2,815) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 374.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 374.47 Td (\(4,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 374.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 374.42 Td (3,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 359.42 Td (State) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 359.48 Td (\(111) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 359.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 359.47 Td (\(16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 359.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 359.42 Td (289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 344.42 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 344.48 Td (\(6,430) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 344.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 344.47 Td (\(4,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 344.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 344.47 Td (\(6,692) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 344.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 329.48 Td (\(9,356) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 329.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 329.47 Td (\(8,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 329.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 329.47 Td (\(2,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 329.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 314.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 314.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 314.43 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 314.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 314.42 Td (17,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 314.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 314.42 Td (27,660) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 290.25 Td (The components of income \(loss\) before income taxes consist of \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 243.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 243.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 243.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 243.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 243.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 243.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 213.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 213.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 213.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 213.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 213.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 213.75 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 358.5 257.75 m 423.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 257.75 m 427.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 257.75 m 492.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 257.75 m 496.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 257.75 m 561.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 257.75 m 423.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 243.75 m 423.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 257.75 m 492.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 243.75 m 492.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 257.75 m 561.5 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 243.75 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 358.5 243.75 m 423.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 243.75 m 492.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 243.75 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 358.5 213.75 m 423.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 199.75 m 423.5 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 197.75 m 423.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 213.75 m 492.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 199.75 m 492.5 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 197.75 m 492.5 197.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 213.75 m 561.5 213.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 199.75 m 561.5 199.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 197.75 m 561.5 197.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 262.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 261.98 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 248.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 247.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 247.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 247.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 233.42 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 233.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 233.43 Td (821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 233.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 233.47 Td (\(7,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 233.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 233.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 233.47 Td (\(9,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 233.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 218.42 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 218.43 Td (78,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 218.42 Td (90,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 218.42 Td (99,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 203.42 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 203.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 203.43 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 203.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 203.42 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 203.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 203.42 Td (90,622) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 179.25 Td (The reconciliation of the income tax expense at the U.S. Federal statutory rate \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.44 179.25 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.77 179.25 Td (\) to actual income tax expense is as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.25 Td (follows \(in thousands\):) 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 q 0 0 0 rg BT 301.00 33.60 Td (98) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 673.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 673.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 673.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 643.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 613.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 613.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 613.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 613.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 613.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 613.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 583.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 583.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 583.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 583.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 583.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 583.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 553.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 553.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 553.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 553.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 553.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 553.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 523.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 523.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 523.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 523.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 523.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 523.50 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 358.5 687.5 m 423.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 687.5 m 427.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 687.5 m 492.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 687.5 m 496.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 687.5 m 561.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 687.5 m 423.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 673.5 m 423.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 687.5 m 492.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 673.5 m 492.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 687.5 m 561.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 673.5 m 561.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 673.5 m 423.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 673.5 m 492.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 673.5 m 561.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 523.5 m 423.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 523.5 m 492.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 523.5 m 561.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 523.5 m 423.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 523.5 m 492.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 523.5 m 561.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 507.5 m 423.5 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 509.5 m 423.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 494.5 m 423.5 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 492.5 m 423.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 507.5 m 492.5 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 509.5 m 492.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 494.5 m 492.5 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 492.5 m 492.5 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 507.5 m 561.5 507.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 509.5 m 561.5 509.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 494.5 m 561.5 494.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 492.5 m 561.5 492.5 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 449.50 691.73 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 678.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 677.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 677.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 677.73 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 663.17 Td (Federal statutory tax expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 663.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 663.18 Td (27,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 663.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 663.17 Td (29,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 663.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 663.17 Td (31,718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 648.17 Td (Valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.00 648.18 Td (841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 648.17 Td (534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 648.22 Td (\(141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 648.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 633.17 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 387.15 633.18 Td (\(6,974) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 633.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 633.22 Td (\(8,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 633.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 633.22 Td (\(1,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 633.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 618.17 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.50 618.18 Td (1,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 618.17 Td (1,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 618.17 Td (1,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 603.17 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 403.00 603.18 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 603.22 Td (\(143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 603.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 603.17 Td (204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 588.17 Td (Research and development credit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 588.18 Td (\(1,797) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 588.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 588.22 Td (\(4,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 588.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 588.22 Td (\(532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 588.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 573.17 Td (Deferred compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.65 573.18 Td (\(778) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 573.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 573.22 Td (\(257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 573.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 573.22 Td (\(325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 573.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 558.17 Td (Release of unrecognized tax benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.65 558.18 Td (\(51) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 558.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 558.22 Td (\(407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 558.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 558.22 Td (\(12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 558.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 543.17 Td (Release of interest accrued for unrecognized tax benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.65 543.18 Td (\(289) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 543.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 543.22 Td (\(160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 543.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 543.22 Td (\(1,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 543.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 528.17 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 528.18 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 528.22 Td (\(591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 528.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 528.22 Td (\(1,118) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 528.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 513.17 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 513.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 513.18 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 513.17 Td (17,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 513.17 Td (27,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 498.17 Td (Effective tax rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.50 498.18 Td (25.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 498.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 498.17 Td (20.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 498.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 498.17 Td (30.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 498.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 474.00 Td (Coherent Korea received the final approval for a High-T) Tj ET Q q 0 0 0 rg BT 298.81 474.00 Td (ech tax exemption in 2013 from the Korean authorities and it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.00 Td (subject to capital contribution limitations. ) Tj ET Q q 0 0 0 rg BT 218.73 462.00 Td (The impact of this tax exemption decreased Korean income taxes by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.00 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 450.00 Td ( in fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 160.14 450.00 Td (The benefit of the tax holiday on fiscal 2014 net income per share \(diluted\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.87 450.00 Td ($0.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.37 450.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 426.00 Td (Coherent Singapore had previously received a Pioneer Status tax exemption from the Singapore authorities ef) Tj ET Q q 0 0 0 rg BT 510.58 426.00 Td (fective from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.00 Td (fiscal 2012 through fiscal 2017, and it may be extended if certain additional requirements are satisfied. ) Tj ET Q q 0 0 0 rg BT 462.52 414.00 Td (The tax holiday is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.00 Td (conditional upon our meeting certain revenue, business spending and employment thresholds. ) Tj ET Q q 0 0 0 rg BT 426.37 402.00 Td (Although Coherent Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.00 Td (had income in fiscal 2014, this amount was lar) Tj ET Q q 0 0 0 rg BT 235.67 390.00 Td (gely of) Tj ET Q q 0 0 0 rg BT 263.53 390.00 Td (fset by a loss carryforward from fiscal 2012. ) Tj ET Q q 0 0 0 rg BT 443.57 390.00 Td (The benefit of the Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.00 Td (tax holiday in fiscal 2014 net of the loss carryforward is therefore not significant. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.00 Td (The significant components of deferred tax assets and liabilities were \(in thousands\):) 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 50 771.2669921875 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 endstream endobj 203 0 obj <>] /Rotate 0 /Contents 204 0 R>> endobj 204 0 obj <> stream 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 49.50 673.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 673.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 673.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 643.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 613.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 613.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 613.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 613.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 583.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 583.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 583.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 583.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 553.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 553.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 553.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 553.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 523.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 523.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 523.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 523.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 493.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 493.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 493.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 493.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 463.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 463.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 463.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 463.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 433.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 433.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 433.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 433.50 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 427.5 687.5 m 492.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 687.5 m 496.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 687.5 m 561.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 687.5 m 492.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 673.5 m 492.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 687.5 m 561.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 673.5 m 561.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 553.5 m 492.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 553.5 m 561.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 523.5 m 492.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 523.5 m 561.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 523.5 m 492.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 523.5 m 561.5 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 433.5 m 492.5 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 433.5 m 561.5 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 433.5 m 492.5 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 433.5 m 561.5 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 418.5 m 492.5 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 404.5 m 492.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 402.5 m 492.5 402.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 418.5 m 561.5 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 404.5 m 561.5 404.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 402.5 m 561.5 402.5 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 468.00 691.73 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 678.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 677.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 677.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 663.17 Td (Deferred tax assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 663.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 663.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 648.17 Td (Reserves and accruals not currently deductible) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 648.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 648.18 Td (29,060) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 648.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 648.17 Td (25,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 633.17 Td (Operating loss carryforwards and tax credits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 633.18 Td (65,643) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 633.17 Td (65,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 618.17 Td (Capital loss carryforwards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 478.65 618.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 618.17 Td (309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 603.17 Td (Deferred service revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 603.18 Td (2,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 603.17 Td (2,221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 588.17 Td (Inventory capitalization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 588.18 Td (1,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 588.17 Td (1,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 573.17 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 573.18 Td (6,573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 573.17 Td (6,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 558.17 Td (Competent authority offset to transfer pricing tax reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 558.18 Td (4,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 558.17 Td (4,328) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 543.18 Td (109,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 543.17 Td (106,565) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 528.17 Td (Valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.80 528.23 Td (\(14,403) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.65 528.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 528.22 Td (\(13,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 528.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 513.18 Td (94,914) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 513.17 Td (93,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 498.17 Td (Deferred tax liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 498.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 498.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 483.17 Td (Gain on issuance of stock by subsidiary) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 483.18 Td (20,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 483.17 Td (21,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 468.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 468.18 Td (9,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 468.17 Td (16,342) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 453.17 Td (Accumulated translation adjustment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 453.18 Td (1,357) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 453.17 Td (1,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 438.17 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 438.18 Td (5,012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 438.17 Td (5,758) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 423.18 Td (36,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 423.17 Td (44,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 408.17 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 408.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 408.18 Td (58,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 408.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 408.17 Td (48,599) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 384.00 Td (In determining our fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.14 384.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.14 384.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.14 384.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.14 384.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.57 384.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.57 384.00 Td ( tax provisions under ) Tj ET Q q 0 0 0 rg BT 345.68 384.00 Td (ASC Subtopic740, we calculated the deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.00 Td (assets and liabilities for each separate tax entity) Tj ET Q q 0 0 0 rg BT 239.06 372.00 Td (. ) Tj ET Q q 0 0 0 rg BT 243.88 372.00 Td (W) Tj ET Q q 0 0 0 rg BT 252.51 372.00 Td (e then considered a number of factors including the positive and negative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.00 Td (evidence regarding the realization of our deferred tax assets to determine whether a valuation allowance should be recognized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.00 Td (with respect to our deferred tax assets. ) Tj ET Q q 0 0 0 rg BT 205.37 348.00 Td (W) Tj ET Q q 0 0 0 rg BT 214.01 348.00 Td (e determined that a valuation allowance was appropriate for a portion of the deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.00 Td (tax assets of our California research and development tax credits, foreign tax attributes, and net operating losses at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.50 336.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.50 336.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 324.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 324.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 324.00 Td (year) Tj ET Q q 0 0 0 rg BT 128.45 324.00 Td (-ends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 304.00 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.49 304.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.49 304.00 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 392.83 304.00 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 395.33 304.00 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.83 304.00 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.72 304.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 304.00 Td ($14.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.39 304.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.00 Td (primarily due to the reduced ability to utilize California and other states research and development tax credits. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 272.00 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 61.50 225.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 225.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 225.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 225.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.50 195.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 195.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 195.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 195.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.50 165.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 165.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 165.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 165.50 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 439.5 239.5 m 504.5 239.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 239.5 m 508.5 239.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 239.5 m 573.5 239.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 239.5 m 504.5 239.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 225.5 m 504.5 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 239.5 m 573.5 239.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 225.5 m 573.5 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 225.5 m 504.5 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 225.5 m 573.5 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 165.5 m 504.5 165.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 165.5 m 573.5 165.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 165.5 m 504.5 165.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 151.5 m 504.5 151.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 149.5 m 504.5 149.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 165.5 m 573.5 165.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 151.5 m 573.5 151.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 149.5 m 573.5 149.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 244.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.00 243.73 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 230.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.50 229.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.50 229.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 215.17 Td (Current deferred income tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.00 215.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 215.18 Td (27,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.00 215.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 215.17 Td (21,713) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 200.17 Td (Current deferred income tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.30 200.23 Td (\(32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 200.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.30 200.22 Td (\(264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 569.65 200.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 185.17 Td (Non-current deferred income tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 185.18 Td (37,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 185.17 Td (37,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 170.17 Td (Non-current deferred income tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.80 170.23 Td (\(6,511) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 170.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.80 170.22 Td (\(10,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 569.65 170.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 155.17 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.00 155.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 155.18 Td (58,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.00 155.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 155.17 Td (48,599) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 131.00 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 131.00 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 76.50 111.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 111.00 Td (Foreign net operating loss carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.44 111.00 Td ($25.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.33 111.00 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.10 111.00 Td ($23.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.99 111.00 Td ( have no expiration date and of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 99.00 Td (which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.44 99.00 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.33 99.00 Td ( are scheduled to expire beginning in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.42 99.00 Td (2030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.42 99.00 Td (. ) Tj ET Q q 0 0 0 rg BT 397.87 99.00 Td (A) Tj ET Q q 0 0 0 rg BT 404.54 99.00 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.84 99.00 Td ($9.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 87.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.39 87.00 Td ( has been provided against the foreign net operating loss carryforwards in certain jurisdictions since the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 75.00 Td (recovery of the carryforwards are uncertain. California net operating loss carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.38 75.00 Td ($15.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.27 75.00 Td ( and are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 63.00 Td (scheduled to expire in fiscal years 2022 to 2032. ) Tj ET Q q 0 0 0 rg BT 299.38 63.00 Td (The tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.99 63.00 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.88 63.00 Td ( of the state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 51.00 Td (net operating loss carryforwards will be credited to additional paid-in-capital when recognized. ) 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 50 771.2669921875 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 endstream endobj 205 0 obj <>] /Rotate 0 /Contents 206 0 R>> endobj 206 0 obj <> stream 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 76.50 695.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 695.10 Td (Federal R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.83 695.10 Td ($21.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.72 695.10 Td ( are scheduled to expire in fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.21 695.10 Td (2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.21 695.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.99 695.10 Td (2034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.99 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 521.81 695.10 Td (The tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 683.10 Td (benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.34 683.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.23 683.10 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 103.50 671.10 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 399.21 671.10 Td ($19.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.10 671.10 Td ( have no expiration date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 659.10 Td (The tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.11 659.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 659.10 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 103.50 647.10 Td (additional paid-in-capital when recognized. ) Tj ET Q q 0 0 0 rg BT 279.27 647.10 Td (A) Tj ET Q q 0 0 0 rg BT 285.94 647.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.23 647.10 Td ($12.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.12 647.10 Td (, before federal benefit, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 635.10 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 103.50 623.10 Td (uncertain. Other states R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.53 623.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.42 623.10 Td ( are scheduled to expire in fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.91 623.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.91 623.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 611.10 Td (2029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.50 611.10 Td (. ) Tj ET Q q 0 0 0 rg BT 127.95 611.10 Td (A) Tj ET Q q 0 0 0 rg BT 134.62 611.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.91 611.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.81 611.10 Td (, before federal benefit, has been recorded against certain R&D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 599.10 Td (credit carryforwards since the recovery of the carryforwards are uncertain.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 581.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 581.10 Td (Federal foreign tax credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.75 581.10 Td ($20.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.64 581.10 Td ( are scheduled to expire in fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.13 581.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.13 581.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.91 581.10 Td (2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.91 581.10 Td (. ) Tj ET Q q 0 0 0 rg BT 543.73 581.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 569.10 Td (tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.06 569.10 Td ($10.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.95 569.10 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 103.50 557.10 Td (to additional paid-in-capital when recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 537.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 537.10 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 49.50 525.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 341.01 525.10 Td (1 are closed. In our major foreign jurisdictions and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.10 Td (major state jurisdictions, the years prior to 2006 and 2010, respectively) Tj ET Q q 0 0 0 rg BT 333.23 513.10 Td (, are closed to examination. Earlier years in our various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.10 Td (jurisdictions may remain open for adjustment to the extent that we have tax attribute carryforwards from those years. ) Tj ET Q q 0 0 0 rg BT 519.45 501.10 Td (W) Tj ET Q q 0 0 0 rg BT 528.08 501.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.10 Td (believe that we have provided adequate reserves for any adjustments that may be determined by the tax authorities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 469.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 469.10 Td ( reconciliation of the change in gross unrecognized tax benefits, excluding interest and penalties, is as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 421.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 421.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 421.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 421.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 421.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 421.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 393.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 393.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 393.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 393.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 393.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 393.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 365.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 365.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 365.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 365.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 365.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 365.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 337.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 337.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 337.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 337.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 337.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 337.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 309.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 309.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 309.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 309.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 309.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 309.60 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 359 433.6 m 424 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 433.6 m 428 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 433.6 m 493 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 433.6 m 497 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 433.6 m 562 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 433.6 m 424 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 421.6 m 424 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 433.6 m 493 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 421.6 m 493 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 433.6 m 562 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 421.6 m 562 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 421.6 m 424 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 421.6 m 493 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 421.6 m 562 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 295.6 m 424 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 295.6 m 493 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 295.6 m 562 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 295.6 m 424 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 282.6 m 424 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 280.6 m 424 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 295.6 m 493 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 282.6 m 493 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 280.6 m 493 280.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 295.6 m 562 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 282.6 m 562 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 280.6 m 562 280.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.00 437.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 437.83 Td (Fiscal year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 425.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 425.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 425.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 425.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 412.17 Td (Balance as of the beginning of the year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 412.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 412.28 Td (21,378) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 412.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 412.17 Td (25,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 412.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 412.17 Td (30,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.17 Td (Tax positions related to current year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 384.17 Td (Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 384.28 Td (346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 384.17 Td (1,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 384.17 Td (615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 370.17 Td (Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 370.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 370.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 370.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 356.17 Td (Tax positions related to prior year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 342.17 Td (Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 342.28 Td (235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 342.17 Td (1,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 342.17 Td (99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 328.17 Td (Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 328.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 328.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 328.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 314.17 Td (Settlements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 314.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 314.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 314.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 300.17 Td (Lapses in statutes of limitations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.80 300.33 Td (\(66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 300.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 300.22 Td (\(6,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 300.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 300.22 Td (\(5,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 300.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 286.17 Td (Balance as of end of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 286.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 286.28 Td (21,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 286.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 286.17 Td (21,378) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 286.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 286.17 Td (25,967) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 262.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 262.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.21 262.10 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 49.50 250.10 Td ($23.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 250.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.16 250.10 Td ($15.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.05 250.10 Td (, if recognized, would af) Tj ET Q q 0 0 0 rg BT 297.61 250.10 Td (fect our ef) Tj ET Q q 0 0 0 rg BT 338.51 250.10 Td (fective tax rate. Our total gross unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (benefit was classified as long-term taxes payable in the consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 387.81 238.10 Td (W) Tj ET Q q 0 0 0 rg BT 396.45 238.10 Td (e include interest and penalties related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (unrecognized tax benefits within the provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 308.88 226.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.32 226.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.58 226.10 Td (, the total amount of gross interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (and penalties accrued was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.12 214.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.01 214.10 Td ( and it is classified as long-term taxes payable in the consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 531.30 214.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 202.10 Td (, we had accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.45 202.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.34 202.10 Td ( for the gross interest and penalties related to the gross unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (benefits.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 170.10 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 527.80 170.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (It is reasonably possible that certain federal, foreign and state tax matters may be concluded in the next 12 months. ) Tj ET Q q 0 0 0 rg BT 510.47 146.10 Td (Although ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (unrecognized tax benefits including interest and penalties could be reduced by up to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.26 122.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 122.10 Td ( in the next 12 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 90.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 90.10 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 90.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.62 90.10 Td (, for our major tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (jurisdictions is:) 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 50 771.2669921875 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 endstream endobj 207 0 obj <>] /Rotate 0 /Contents 208 0 R>> endobj 208 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (101) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 687.50 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 687.50 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 659.50 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 659.50 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 631.50 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 631.50 104.00 -14.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 692.07 Td (United StatesFederal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.70 692.07 Td (2011forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 678.07 Td (United StatesVarious States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 678.07 Td (2010forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 664.07 Td (Netherlands) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 664.07 Td (2009forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 650.07 Td (Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 650.07 Td (2006forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 636.07 Td (Japan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 636.07 Td (2008forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 622.07 Td (United Kingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 622.07 Td (2013forward) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 594.00 Td (15. SEGMENT) Tj ET Q q 0 0 0 rg BT 114.33 594.00 Td ( ) Tj ET Q q 0 0 0 rg BT 116.28 594.00 Td (AND GEOGRAPHIC INFORMA) Tj ET Q q 0 0 0 rg BT 260.53 594.00 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 574.00 Td (e are or) Tj ET Q q 0 0 0 rg BT 111.93 574.00 Td (ganized into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.58 574.00 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.58 574.00 Td ( 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 49.50 562.00 Td (and Components \("CLC"\). ) Tj ET Q q 0 0 0 rg BT 158.59 562.00 Td (This segmentation reflects the go-to-market strategies for various products and markets. ) Tj ET Q q 0 0 0 rg BT 512.74 562.00 Td (While both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.00 Td (segments work to deliver cost-ef) Tj ET Q q 0 0 0 rg BT 179.84 550.00 Td (fective solutions, SLS develops and manufacturers configurable, advanced-performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.00 Td (products lar) Tj ET Q q 0 0 0 rg BT 96.80 538.00 Td (gely serving the microelectronics, scientific research and government programs and OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.00 Td (instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 151.24 526.00 Td (The size and complexity of many of our SLS products require service to be performed at the customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.00 Td (site by factory-trained field service engineers. CLC focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 440.02 514.00 Td (fered in set configurations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.00 Td (The product architectures are designed for easy exchange at the point of use such that product service and repairs are based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.00 Td (upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 282.72 490.00 Td (. CLC's primary markets include materials processing, OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.00 Td (components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 458.00 Td ( ) Tj ET Q q 0 0 0 rg BT 75.82 458.00 Td (W) Tj ET Q q 0 0 0 rg BT 84.46 458.00 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 49.50 446.00 Td (have dedicated engineering, manufacturing, product business management and product line management functions. ) Tj ET Q q 0 0 0 rg BT 512.96 446.00 Td (A) Tj ET Q q 0 0 0 rg BT 519.63 446.00 Td ( small ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.00 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 49.50 422.00 Td (determined. ) Tj ET Q q 0 0 0 rg BT 99.30 422.00 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 466.53 422.00 Td (, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.00 Td (corporate costs as described below) Tj ET Q q 0 0 0 rg BT 187.69 410.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.00 Td (Our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 169.12 390.00 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 49.50 378.00 Td (performance of the segments and decides how to allocate resources to the segments. Income \(loss\) from operations is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.00 Td (measure of profit and loss that our CODM uses to assess performance and make decisions. ) Tj ET Q q 0 0 0 rg BT 414.42 366.00 Td (As assets are not a measure used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.00 Td (assess the performance of the company by the CODM, asset information is not tracked or compiled by segment and is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.00 Td (available to be reported in our disclosures. Income \(loss\) from operations represents the net sales less the cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.00 Td (direct operating expenses incurred within the operating segments as well as allocated expenses such as shared sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.00 Td (manufacturing costs. ) Tj ET Q q 0 0 0 rg BT 135.13 318.00 Td (W) Tj ET Q q 0 0 0 rg BT 143.77 318.00 Td (e do not allocate to our operating segments certain operating expenses which we manage separately at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.00 Td (the corporate level. ) Tj ET Q q 0 0 0 rg BT 128.72 306.00 Td (These unallocated costs include stock-based compensation and corporate functions \(certain research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.00 Td (development, management, finance, legal and human resources\) and are included in the results below under Corporate and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.00 Td (other in the reconciliation of operating results. Management does not consider unallocated Corporate and other costs in its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.00 Td (measurement of segment performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.00 Td (The following table provides net sales and income \(loss\) from operations for our operating segments \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 211.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 211.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 211.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 211.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 211.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 211.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 181.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 181.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 181.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 181.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 181.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 181.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 151.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 151.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 151.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 151.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 151.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 151.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 121.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 121.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 121.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 121.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 121.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 121.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 91.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 91.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 91.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 91.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 91.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 91.50 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 359 225.5 m 424 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 225.5 m 428 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 225.5 m 493 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 225.5 m 497 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 225.5 m 562 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 225.5 m 424 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 211.5 m 424 211.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 225.5 m 493 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 211.5 m 493 211.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 225.5 m 562 225.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 211.5 m 562 211.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 166.5 m 424 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 152.5 m 424 152.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 150.5 m 424 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 166.5 m 493 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 152.5 m 493 152.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 150.5 m 493 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 166.5 m 562 166.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 152.5 m 562 152.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 150.5 m 562 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 150.5 m 424 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 152.5 m 424 152.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 150.5 m 493 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 152.5 m 493 152.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 150.5 m 562 150.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 152.5 m 562 152.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 91.5 m 424 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 91.5 m 493 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 91.5 m 562 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 91.5 m 424 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 77.5 m 424 77.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 75.5 m 424 75.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 91.5 m 493 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 77.5 m 493 77.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 75.5 m 493 75.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 91.5 m 562 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 77.5 m 562 77.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 75.5 m 562 75.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 230.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 229.73 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 216.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 215.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 215.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 215.73 Td (2012) 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 52.5 199.83339843750002 m 91.6552734375 199.83339843750002 l s q 0 0 0 rg BT 52.50 201.17 Td (Net sales:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 201.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 201.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 201.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 186.17 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 186.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.65 186.18 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 186.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 186.17 Td (571,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 186.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 186.17 Td (548,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 171.17 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.65 171.18 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 171.17 Td (238,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 171.17 Td (220,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 156.17 Td (Total net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 156.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.65 156.18 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 156.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 156.17 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 156.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 156.17 Td (769,088) 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 52.5 139.83339843750002 m 151.357421875 139.83339843750002 l s q 0 0 0 rg BT 52.50 141.17 Td (Income from operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 141.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 141.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 141.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 126.17 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 126.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.65 126.18 Td (117,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 126.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 126.17 Td (115,931) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 126.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 126.17 Td (118,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 111.17 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 111.18 Td (2,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 111.17 Td (12,411) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 111.17 Td (9,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 96.17 Td (Corporate and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.30 96.23 Td (\(43,769) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 96.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.30 96.22 Td (\(43,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 96.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.30 96.22 Td (\(39,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 96.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 81.17 Td (Total income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 81.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 81.18 Td (76,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 81.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 81.17 Td (84,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 81.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 81.17 Td (88,830) 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 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 endstream endobj 209 0 obj <>] /Rotate 0 /Contents 210 0 R>> endobj 210 0 obj <> stream 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 72.00 695.10 Td (The following table provides a reconciliation of our total income \(loss\) from operations to net income \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 657.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 657.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 657.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 657.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 657.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 657.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 627.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 627.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 627.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 627.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 627.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 627.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 597.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 597.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 597.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 597.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 597.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 597.60 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 359 670.6 m 424 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 670.6 m 428 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 670.6 m 493 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 670.6 m 497 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 670.6 m 562 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 670.6 m 424 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 657.6 m 424 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 670.6 m 493 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 657.6 m 493 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 670.6 m 562 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 657.6 m 562 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 657.6 m 424 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 657.6 m 493 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 657.6 m 562 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 627.6 m 424 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 627.6 m 493 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 627.6 m 562 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 627.6 m 424 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 627.6 m 493 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 627.6 m 562 627.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 597.6 m 424 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 597.6 m 493 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 597.6 m 562 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 597.6 m 424 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 583.6 m 424 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 581.6 m 424 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 597.6 m 493 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 583.6 m 493 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 581.6 m 493 581.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 597.6 m 562 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 583.6 m 562 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 581.6 m 562 581.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 675.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 674.83 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 52.5 660.580078125 m 248.5390625 660.580078125 l s q 0 0 0 rg BT 52.50 661.83 Td (Reconciliation of Income From Operations to Net Income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 661.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 661.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 661.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 647.27 Td (Total income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 647.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 647.28 Td (76,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 647.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 647.27 Td (84,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 647.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 647.27 Td (88,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 632.27 Td (Total other income, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 632.28 Td (2,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 632.32 Td (\(1,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 632.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 632.27 Td (1,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 617.27 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 617.28 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 617.27 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 617.27 Td (90,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 602.27 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 602.28 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 602.27 Td (17,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 602.27 Td (27,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 587.27 Td (Net Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 587.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 587.28 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 587.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 587.27 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 587.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 587.27 Td (62,962) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (Geographic Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 543.10 Td (Our foreign operations consist primarily of manufacturing facilities in Europe and ) Tj ET Q q 0 0 0 rg BT 403.69 543.10 Td (Asia-Pacific and sales of) Tj ET Q q 0 0 0 rg BT 502.64 543.10 Td (fices in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (Europe and ) Tj ET Q q 0 0 0 rg BT 97.26 531.10 Td (Asia-Pacific. Sales, marketing and customer service activities are conducted through sales subsidiaries throughout ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 Td (the world. Geographic sales information for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.66 519.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.66 519.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.66 519.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.66 519.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.10 519.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.10 519.10 Td ( is based on the location of the end customer) Tj ET Q q 0 0 0 rg BT 513.55 519.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (Geographic long-lived asset 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 554.90 507.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 487.10 Td (Sales to unaf) Tj ET Q q 0 0 0 rg BT 124.97 487.10 Td (filiated customers are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 441.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 441.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 441.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 441.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 441.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 441.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 411.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 411.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 411.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 411.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 411.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 411.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 381.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 381.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 381.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 381.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 381.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 381.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 351.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 351.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 351.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 351.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 351.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 351.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 321.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 321.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 321.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 321.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 321.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 321.60 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 358.5 454.6 m 423.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 454.6 m 427.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 454.6 m 492.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 454.6 m 496.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 454.6 m 561.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 454.6 m 423.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 441.6 m 423.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 454.6 m 492.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 441.6 m 492.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 454.6 m 561.5 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 441.6 m 561.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 441.6 m 423.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 426.6 m 423.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 441.6 m 492.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 426.6 m 492.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 441.6 m 561.5 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 426.6 m 561.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 321.6 m 423.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 321.6 m 492.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 321.6 m 561.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 321.6 m 423.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 321.6 m 492.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 321.6 m 561.5 321.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 306.6 m 423.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 292.6 m 423.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 290.6 m 423.5 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 306.6 m 492.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 292.6 m 492.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 290.6 m 492.5 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 306.6 m 561.5 306.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 292.6 m 561.5 292.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 290.6 m 561.5 290.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 459.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 458.83 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 52 444.580078125 m 77.34765625 444.580078125 l s q 0 0 0 rg BT 52.00 445.83 Td (SALES) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 445.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 445.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 445.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 431.27 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 431.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 431.28 Td (202,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 431.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 431.27 Td (188,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 431.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 431.27 Td (184,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 416.27 Td (Foreign countries:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 401.27 Td (Japan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 401.28 Td (124,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 401.27 Td (156,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 401.27 Td (168,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 386.27 Td (South Korea) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 386.28 Td (167,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 386.27 Td (185,737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 386.27 Td (130,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 371.27 Td (Germany) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 371.28 Td (86,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 371.27 Td (93,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 371.27 Td (92,162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 356.27 Td (Europe, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 356.28 Td (64,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 356.27 Td (58,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 356.27 Td (62,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 341.27 Td (Asia-Pacific, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 341.28 Td (98,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 341.27 Td (73,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 341.27 Td (80,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 326.27 Td (Rest of World) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 326.28 Td (50,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 326.27 Td (53,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 326.27 Td (49,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 311.27 Td (Total foreign countries sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 311.28 Td (592,434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 311.27 Td (621,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 311.27 Td (584,130) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 296.27 Td (Total sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 296.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 296.28 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 296.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 296.27 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 296.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 296.27 Td (769,088) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 272.10 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 49.50 260.10 Td (region, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 214.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 214.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 214.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 214.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 184.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 184.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 184.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 184.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 154.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 154.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 154.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 154.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 124.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 124.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 124.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 124.60 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 427.5 227.60000000000002 m 492.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 227.60000000000002 m 496.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 227.60000000000002 m 561.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 227.60000000000002 m 492.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 214.60000000000002 m 492.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 227.60000000000002 m 561.5 227.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 214.60000000000002 m 561.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 214.60000000000002 m 492.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 199.60000000000002 m 492.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 214.60000000000002 m 561.5 214.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 199.60000000000002 m 561.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 139.60000000000002 m 492.5 139.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 139.60000000000002 m 561.5 139.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 139.60000000000002 m 492.5 139.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 139.60000000000002 m 561.5 139.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 124.60000000000002 m 492.5 124.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 110.60000000000002 m 492.5 110.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 108.60000000000002 m 492.5 108.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 124.60000000000002 m 561.5 124.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 110.60000000000002 m 561.5 110.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 108.60000000000002 m 561.5 108.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 232.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 231.83 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 52 217.580078125 m 134.91796875 217.580078125 l s q 0 0 0 rg BT 52.00 218.83 Td (LONG-LIVED ASSETS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 218.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 218.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 204.27 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 204.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 204.28 Td (82,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 204.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 204.27 Td (79,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 189.27 Td (Foreign countries:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 174.27 Td (Germany) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 174.28 Td (38,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 174.27 Td (43,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 159.27 Td (Europe, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 159.28 Td (2,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 159.27 Td (3,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 144.27 Td (Asia-Pacific) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 144.28 Td (13,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 144.27 Td (14,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 129.27 Td (Total foreign countries long-lived assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 129.28 Td (55,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 129.27 Td (61,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 114.27 Td (Total long-lived assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 114.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 114.28 Td (137,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 114.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 114.27 Td (141,234) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (Major) Tj ET Q q 0 0 0 rg BT 76.53 90.10 Td ( Customers) 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 50 771.2669921875 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 (15. SEGMENT) Tj ET Q q 0 0 0 rg BT 114.83 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 116.78 712.60 Td (AND GEOGRAPHIC INFORMA) Tj ET Q q 0 0 0 rg BT 261.03 712.60 Td (TION \(continued\)) 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 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 73.50 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 695.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.01 695.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.45 695.10 Td ( customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.02 695.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.35 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.35 695.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.68 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.12 695.10 Td (1) Tj ET Q q 0 0 0 rg BT 304.75 695.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.08 695.10 Td ( of consolidated revenue during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.36 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.36 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.36 695.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.36 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.80 695.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.80 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 683.10 Td (. ) Tj ET Q q 0 0 0 rg BT 101.98 683.10 Td (There was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.85 683.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.29 683.10 Td ( other customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 683.10 Td (1) Tj ET Q q 0 0 0 rg BT 306.53 683.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.86 683.10 Td ( of consolidated revenues for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.59 683.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.59 683.10 Td (. ) Tj ET Q q 0 0 0 rg BT 487.41 683.10 Td (These customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (purchased primarily from our SLS segment.) 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 50 771.2669921875 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 (15. SEGMENT) Tj ET Q q 0 0 0 rg BT 114.83 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 116.78 712.60 Td (AND GEOGRAPHIC INFORMA) Tj ET Q q 0 0 0 rg BT 261.03 712.60 Td (TION \(continued\)) 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 q 0 0 0 rg BT 298.50 33.60 Td (104) 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 (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.39 675.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.83 675.25 Td (September28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.09 675.25 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 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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 2014:) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 598.42 Td (193,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 598.42 Td (199,222) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 598.42 Td (196,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 598.42 Td (205,344) 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 (77,546) 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 (80,665) 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 (74,261) 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 512.15 583.42 Td (80,918) 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 (11,703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 568.42 Td (15,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 568.42 Td (12,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 568.42 Td (19,097) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 553.42 Td (0.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 553.42 Td (0.62) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 553.42 Td (0.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 553.42 Td (0.77) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 538.42 Td (0.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 538.42 Td (0.61) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 538.42 Td (0.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 538.42 Td (0.76) 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 2013:) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 508.42 Td (183,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 508.42 Td (200,058) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 508.42 Td (213,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 508.42 Td (213,141) 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 (77,635) 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 (76,331) 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 (83,264) 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 (85,041) 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 (14,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 478.42 Td (15,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 478.42 Td (16,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 478.42 Td (20,515) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 463.42 Td (0.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 463.42 Td (0.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 463.42 Td (0.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 463.42 Td (0.84) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 448.42 Td (0.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 448.42 Td (0.61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 448.42 Td (0.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 448.42 Td (0.83) 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 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 endstream endobj 215 0 obj <>] /Rotate 0 /Contents 216 0 R>> endobj 216 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (105) 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 44.50 723.75 52.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 723.75 14.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 110.50 723.75 456.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 679.75 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 679.75 14.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 110.50 679.75 456.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 649.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 649.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 110.50 649.75 456.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 599.75 52.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 599.75 14.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 110.50 599.75 456.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 44.50 549.75 522.00 -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 44.5 694.75 m 96.5 694.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 110.5 694.75 m 566.5 694.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 47.00 714.98 Td (Sequentially) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 47.00 706.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 47.00 698.98 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.30 698.98 Td (Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 685.32 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 685.32 Td (Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 670.32 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 670.32 Td (Consent of Independent Registered Public Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 655.32 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 655.32 Td (Power of Attorney \(see signature page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 640.32 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 640.32 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 113.00 630.32 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 75.50 615.32 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 615.32 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 113.00 605.32 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 75.50 590.32 Td (32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 590.32 Td (Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 580.32 Td (of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 565.32 Td (32.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 565.32 Td (Certification of Chief Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to Section906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 555.32 Td (of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 47.00 539.42 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 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 endstream endobj 217 0 obj <> /View <>>>>> endobj 218 0 obj <> /View <>>>>> endobj 219 0 obj <> endobj 220 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>|;