%PDF-1.5 1 0 obj <> endobj 3 0 obj <>] /Rotate 0 /Contents 4 0 R>> endobj 4 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 772.60 Td (Use these links to rapidly review the document) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 759.2669921875 m 151.4208984375 759.2669921875 l s q 0 0 1 rg BT 50.00 760.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.31 760.60 Td (ABLE OF CONTENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 747.2669921875 m 86.82373046875 747.2669921875 l s q 0 0 1 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 1 rg BT 54.64 748.60 Td (AR) Tj ET Q q 0 0 1 rg BT 67.93 748.60 Td (T) Tj ET Q q 0 0 1 rg BT 73.86 748.60 Td ( IV) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.6 m 644 698.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 694.6 m 644 694.6 l s BT /F1 10.00 Tf ET BT /F2 16.00 Tf ET q 0 0 0 rg BT 243.35 669.90 Td (UNITED ST) Tj ET Q q 0 0 0 rg BT 327.97 669.90 Td (A) Tj ET Q q 0 0 0 rg BT 338.33 669.90 Td (TES) Tj ET Q BT /F2 16.00 Tf ET q 0 0 0 rg BT 134.15 647.70 Td (SECURITIES ) Tj ET Q q 0 0 0 rg BT 234.20 647.70 Td (AND EXCHANGE COMMISSION) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 251.20 633.90 Td (W) Tj ET Q q 0 0 0 rg BT 259.20 633.90 Td (ASHINGT) Tj ET Q q 0 0 0 rg BT 300.55 633.90 Td (ON, D.C. 20549) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.00 624.30 Td (__________________________________________________) Tj ET Q BT /F2 16.00 Tf ET q 0 0 0 rg BT 262.65 602.10 Td (FORM 10-K) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 580.05 Td (\(Mark One\)) Tj ET Q /GS0 gs q 9.54 0 0 8.78 64.70 566.37 cm /I1 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 92.50 569.05 Td (ANNUAL REPORT PURSUANT TO SECTION13 OR 15\(d\)OFTHE SECURITIESEXCHANGE ACT OF1934) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 265.15 554.05 Td (For the Fiscal Year Ended October 3, 2015) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 342.30 539.05 Td (or) Tj ET Q /GS0 gs q 8.02 0 0 8.78 65.45 521.37 cm /I2 Do Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 92.50 524.05 Td (TRANSITION REPORT PURSUANT TO SECTION13 OR 15\(d\)OFTHE SECURITIESEXCHANGE ACT OF1934) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 234.60 503.30 Td (Commission File Number: 001-33962) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 204.00 490.70 Td (___________________________________________________) Tj ET Q BT /F2 16.00 Tf ET q 0 0 0 rg BT 240.10 468.50 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 330.48 468.50 Td (,INC. ) Tj ET Q BT /F2 16.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 375.82 468.50 Td ( ) Tj ET Q BT /F2 9.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 158.30 446.45 Td (Delaware) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.75 446.45 Td (94-1622541) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 124.25 435.26 Td (\(State or other jurisdiction of) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 122.35 426.31 Td (incorporation or or) Tj ET Q q 0 0 0 rg BT 190.17 426.31 Td (ganization\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 401.75 435.26 Td (\(I.R.S. Employer) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 399.00 426.31 Td (Identification No.\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 79.50 411.45 Td (5100 Patrick Henry Drive, Santa Clara, California) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 421.25 411.45 Td (95054) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 105.10 400.31 Td (\(Address of principal executive offices\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 412.60 400.31 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 183.65 384.70 Td (Registrant's telephone number) Tj ET Q q 0 0 0 rg BT 292.38 384.70 Td (, including area code: ) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 372.10 384.70 Td (\(408\)764-4000) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 202.50 370.90 Td (Securities registered pursuant to Section12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 393.95 370.90 Td (Act:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 66 341.4 m 257 341.4 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 341.4 m 527 341.4 l s BT /F2 7.00 Tf ET q 0 0 0 rg BT 134.70 345.46 Td (Title of each class) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 379.20 350.16 Td (Name of each exchange on which) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.65 343.21 Td (r) Tj ET Q q 0 0 0 rg BT 416.63 343.21 Td (egister) Tj ET Q q 0 0 0 rg BT 436.32 343.21 Td (ed) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 102.75 332.71 Td (Common Stock, $0.01 par value) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 366.50 332.71 Td (The NASDAQ Stock MarketLLC) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 375.35 321.71 Td (Nasdaq Global Select Market) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 191.65 306.10 Td (Securities registered pursuant to Section12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 383.10 306.10 Td (Act: None) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 289.30 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 335.30 289.30 Td (, as defined in Rule405 of the Securities ) Tj ET Q q 0 0 0 rg BT 483.27 289.30 Td (Act.) Tj ET Q q 0 0 0 rg BT 500.43 289.30 Td (Y) Tj ET Q q 0 0 0 rg BT 506.03 289.30 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 515.78 287.36 cm /I3 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 525.32 289.30 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 547.57 287.36 cm /I4 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 272.50 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15\(d\) of the Securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 261.70 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 86.73 261.70 Td (Act of 1934 \(the "Exchange ) Tj ET Q q 0 0 0 rg BT 189.13 261.70 Td (Act"\).) Tj ET Q q 0 0 0 rg BT 212.96 261.70 Td (Y) Tj ET Q q 0 0 0 rg BT 218.56 261.70 Td (es) Tj ET Q /GS0 gs q 8.02 0 0 9.18 228.30 259.76 cm /I5 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.32 261.70 Td (No) Tj ET Q /GS0 gs q 9.54 0 0 9.18 258.57 259.76 cm /I6 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 244.90 Td (Indicate by check mark whether the registrant \(1\)has filed all reports required to be filed by Section13 or 15\(d\) of the Securities ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 86.73 234.10 Td (Act of 1934 during the preceding 12months \(or for such shorter period that the registrant was required to file such reports\) and ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 223.30 Td (\(2\)has been subject to such filing requirements for the past 90days.) Tj ET Q q 0 0 0 rg BT 297.10 223.30 Td (Y) Tj ET Q q 0 0 0 rg BT 302.70 223.30 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 312.45 221.36 cm /I7 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 321.99 223.30 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 344.24 221.36 cm /I8 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 206.50 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ) Tj ET Q q 0 0 0 rg BT 445.96 206.50 Td (W) Tj ET Q q 0 0 0 rg BT 453.73 206.50 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 501.63 206.50 Td (, every ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 195.70 Td (Interactive Data File required to be submitted and posted pursuant to Rule405 of RegulationS-T) Tj ET Q q 0 0 0 rg BT 399.01 195.70 Td ( \(229.405 of this chapter\) during the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 184.90 Td (preceding 12months \(or for such shorter period that the registrant was required to submit and post such files.) Tj ET Q q 0 0 0 rg BT 444.57 184.90 Td (Y) Tj ET Q q 0 0 0 rg BT 450.17 184.90 Td (es) Tj ET Q /GS0 gs q 9.54 0 0 9.18 459.92 182.96 cm /I9 Do Q /GS0 gs q 9.00 0 0 9.18 469.46 182.96 cm /I10 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 478.46 184.90 Td (No) Tj ET Q /GS0 gs q 8.02 0 0 9.18 491.71 182.96 cm /I11 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 168.10 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of RegulationS-K is not contained herein, and will not ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 157.30 Td (be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in PartIII of this ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 146.50 Td (Form10-K or any amendment to this Form10-K.) Tj ET Q /GS0 gs q 8.02 0 0 9.18 230.48 144.56 cm /I12 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 129.70 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 267.50 129.70 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 335.59 129.70 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 408.17 129.70 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 492.75 129.70 Td (, or a smaller ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 118.90 Td (reporting company) Tj ET Q q 0 0 0 rg BT 117.15 118.90 Td (. See definitions of "lar) Tj ET Q q 0 0 0 rg BT 200.39 118.90 Td (ge accelerated filer", "accelerated filer" and "smaller reporting company" in Rule12b-2 of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 86.73 108.10 Td (Act.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 48.70 85.86 Td (Lar) Tj ET Q q 0 0 0 rg BT 61.03 85.86 Td (ge accelerated filer) Tj ET Q /GS0 gs q 9.54 0 0 9.18 131.72 83.92 cm /I13 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 199.75 85.86 Td (Accelerated filer) Tj ET Q /GS0 gs q 8.02 0 0 9.18 262.21 83.92 cm /I14 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 331.75 85.86 Td (Non-accelerated filer) Tj ET Q /GS0 gs q 8.02 0 0 9.18 410.20 83.92 cm /I15 Do Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 309.95 78.25 Td (\(Do not check if a smaller reporting company\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 460.60 85.86 Td (Smaller reporting company) Tj ET Q /GS0 gs q 8.02 0 0 9.18 561.32 83.92 cm /I16 Do Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 59.30 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 466.62 59.30 Td (Act\).) Tj ET Q q 0 0 0 rg BT 486.77 59.30 Td (Y) Tj ET Q q 0 0 0 rg BT 492.37 59.30 Td (es) Tj ET Q /GS0 gs q 8.02 0 0 9.18 502.12 57.36 cm /I17 Do Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 510.14 59.30 Td (No) Tj ET Q /GS0 gs q 9.54 0 0 9.18 532.39 57.36 cm /I18 Do Q endstream endobj 5 0 obj <>] /Rotate 0 /Contents 6 0 R>> endobj 6 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 772.60 Td (Use these links to rapidly review the document) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 759.2669921875 m 151.4208984375 759.2669921875 l s q 0 0 1 rg BT 50.00 760.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.31 760.60 Td (ABLE OF CONTENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 747.2669921875 m 86.82373046875 747.2669921875 l s q 0 0 1 rg BT 50.00 748.60 Td (P) Tj ET Q q 0 0 1 rg BT 54.64 748.60 Td (AR) Tj ET Q q 0 0 1 rg BT 67.93 748.60 Td (T) Tj ET Q q 0 0 1 rg BT 73.86 748.60 Td ( IV) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 695.80 Td (As of ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 98.50 695.80 Td (November30, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 170.24 695.80 Td (, ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 174.74 695.80 Td (24,187,438) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 215.24 695.80 Td ( shares of common stock were outstanding. ) Tj ET Q q 0 0 0 rg BT 373.04 695.80 Td (The aggregate market value of the voting shares ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 685.00 Td (\(based on the closing price reported on the NASDAQ Global Select Market on ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 334.68 685.00 Td (April4, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 382.93 685.00 Td (, of Coherent,Inc., held by nonaf) Tj ET Q q 0 0 0 rg BT 502.23 685.00 Td (filiates was ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 674.20 Td (approximately ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 103.73 674.20 Td ($1,384,567,684) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 159.98 674.20 Td (. For purposes of this disclosure, shares of common stock held by persons who own 5% or more of the ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 663.40 Td (outstanding common stock and shares of common stock held by each of) Tj ET Q q 0 0 0 rg BT 308.53 663.40 Td (ficer and director have been excluded in that such persons may be ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 652.60 Td (deemed to be "af) Tj ET Q q 0 0 0 rg BT 110.23 652.60 Td (filiates" as that term is defined under the Rules and Regulations of the Exchange ) Tj ET Q q 0 0 0 rg BT 401.83 652.60 Td (Act. ) Tj ET Q q 0 0 0 rg BT 419.16 652.60 Td (This determination of af) Tj ET Q q 0 0 0 rg BT 506.22 652.60 Td (filiate status is ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 641.80 Td (not necessarily conclusive.) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 205.45 628.00 Td (DOCUMENT) Tj ET Q q 0 0 0 rg BT 258.79 628.00 Td ( INCORPORA) Tj ET Q q 0 0 0 rg BT 315.87 628.00 Td (TED BY) Tj ET Q q 0 0 0 rg BT 348.79 628.00 Td ( REFERENCE) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 76.50 614.20 Td (Portions of the registrant's Proxy Statement for the registrant's fiscal 2016 ) Tj ET Q q 0 0 0 rg BT 343.95 614.20 Td (Annual Meeting of Stockholders are incorporated by ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 603.40 Td (reference into PartIII of the Form10-K to the extent stated herein. ) Tj ET Q q 0 0 0 rg BT 291.75 603.40 Td (The Proxy Statement or an amended report on Form10-K will be filed ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 592.60 Td (within 120days of the registrant's fiscal year ended ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 236.82 592.60 Td (October3, 2015) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 295.05 592.60 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 8.5 582.1 m 602.5 582.1 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 8.5 578.1 m 602.5 578.1 l s BT /F1 10.00 Tf ET endstream endobj 7 0 obj <><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><><>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.65 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 258.58 742.25 Td (ABLE OF) Tj ET Q q 0 0 0 rg BT 301.82 742.25 Td ( CONTENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 708.9833984375 m 81.6923828125 708.9833984375 l s q 0 0 1 rg BT 52.00 710.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 710.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 710.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 710.32 Td ( I) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 710.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 709.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 693.9833984375 m 113.4384765625 693.9833984375 l s q 0 0 1 rg BT 79.00 695.32 Td (ITEM 1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 693.9833984375 m 188.236328125 693.9833984375 l s q 0 0 1 rg BT 141.00 695.32 Td (BUSINESS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 678.9833984375 m 120.66015625 678.9833984375 l s q 0 0 1 rg BT 79.00 680.32 Td (ITEM 1A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 678.9833984375 m 210.375 678.9833984375 l s q 0 0 1 rg BT 141.00 680.32 Td (RISK F) Tj ET Q q 0 0 1 rg BT 171.10 680.32 Td (ACT) Tj ET Q q 0 0 1 rg BT 190.92 680.32 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 663.9833984375 m 120.1083984375 663.9833984375 l s q 0 0 1 rg BT 79.00 665.32 Td (ITEM 1B.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 663.9833984375 m 297.6357421875 663.9833984375 l s q 0 0 1 rg BT 141.00 665.32 Td (UNRESOL) Tj ET Q q 0 0 1 rg BT 186.20 665.32 Td (VED ST) Tj ET Q q 0 0 1 rg BT 220.12 665.32 Td (AFF COMMENTS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 648.9833984375 m 113.4384765625 648.9833984375 l s q 0 0 1 rg BT 79.00 650.32 Td (ITEM 2.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 648.9833984375 m 199.30078125 648.9833984375 l s q 0 0 1 rg BT 141.00 650.32 Td (PROPER) Tj ET Q q 0 0 1 rg BT 178.19 650.32 Td (TIES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 633.9833984375 m 113.4384765625 633.9833984375 l s q 0 0 1 rg BT 79.00 635.32 Td (ITEM 3.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 633.9833984375 m 244.7939453125 633.9833984375 l s q 0 0 1 rg BT 141.00 635.32 Td (LEGAL) Tj ET Q q 0 0 1 rg BT 173.40 635.32 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 618.9833984375 m 113.4384765625 618.9833984375 l s q 0 0 1 rg BT 79.00 620.32 Td (ITEM 4.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 618.9833984375 m 276.2001953125 618.9833984375 l s q 0 0 1 rg BT 141.00 620.32 Td (MINE SAFETY) Tj ET Q q 0 0 1 rg BT 206.46 620.32 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 603.9833984375 m 85.0224609375 603.9833984375 l s q 0 0 1 rg BT 52.00 605.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 605.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 605.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 605.32 Td ( II) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 605.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 604.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 588.9833984375 m 113.4384765625 588.9833984375 l s q 0 0 1 rg BT 79.00 590.32 Td (ITEM 5.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 588.9833984375 m 491.712890625 588.9833984375 l s q 0 0 1 rg BT 141.00 590.32 Td (MARKET) Tj ET Q q 0 0 1 rg BT 183.04 590.32 Td ( FOR REGISTRANT'S COMMON EQUITY) Tj ET Q q 0 0 1 rg BT 364.12 590.32 Td (, RELA) Tj ET Q q 0 0 1 rg BT 394.12 590.32 Td (TED ST) Tj ET Q q 0 0 1 rg BT 427.55 590.32 Td (OCKHOLDER ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 578.9833984375 m 421.2197265625 578.9833984375 l s q 0 0 1 rg BT 141.00 580.32 Td (MA) Tj ET Q q 0 0 1 rg BT 156.00 580.32 Td (TTERS ) Tj ET Q q 0 0 1 rg BT 188.51 580.32 Td (AND ISSUER PURCHASES OF EQUITY) Tj ET Q q 0 0 1 rg BT 362.05 580.32 Td ( SECURITIES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 563.9833984375 m 113.4384765625 563.9833984375 l s q 0 0 1 rg BT 79.00 565.32 Td (ITEM 6.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 563.9833984375 m 275.09912109375 563.9833984375 l s q 0 0 1 rg BT 141.00 565.32 Td (SELECTED FINANCIAL) Tj ET Q q 0 0 1 rg BT 247.01 565.32 Td ( DA) Tj ET Q q 0 0 1 rg BT 262.85 565.32 Td (T) Tj ET Q q 0 0 1 rg BT 268.15 565.32 Td (A) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 548.9833984375 m 113.4384765625 548.9833984375 l s q 0 0 1 rg BT 79.00 550.32 Td (ITEM 7.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 548.9833984375 m 511.44921875 548.9833984375 l s q 0 0 1 rg BT 141.00 550.32 Td (MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 1 rg BT 283.93 550.32 Td (AND ) Tj ET Q q 0 0 1 rg BT 307.54 550.32 Td (ANAL) Tj ET Q q 0 0 1 rg BT 334.32 550.32 Td (YSIS OF FINANCIAL) Tj ET Q q 0 0 1 rg BT 427.29 550.32 Td ( CONDITION ) Tj ET Q q 0 0 1 rg BT 487.28 550.32 Td (AND ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 538.9833984375 m 262.3232421875 538.9833984375 l s q 0 0 1 rg BT 141.00 540.32 Td (RESUL) Tj ET Q q 0 0 1 rg BT 171.75 540.32 Td (TS OF OPERA) Tj ET Q q 0 0 1 rg BT 232.88 540.32 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 523.9833984375 m 120.66015625 523.9833984375 l s q 0 0 1 rg BT 79.00 525.32 Td (ITEM 7A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 523.9833984375 m 480.6923828125 523.9833984375 l s q 0 0 1 rg BT 141.00 525.32 Td (QUANTIT) Tj ET Q q 0 0 1 rg BT 184.63 525.32 Td (A) Tj ET Q q 0 0 1 rg BT 190.75 525.32 Td (TIVE ) Tj ET Q q 0 0 1 rg BT 215.46 525.32 Td (AND QUALIT) Tj ET Q q 0 0 1 rg BT 276.04 525.32 Td (A) Tj ET Q q 0 0 1 rg BT 282.15 525.32 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 1 rg BT 376.61 525.32 Td (ABOUT) Tj ET Q q 0 0 1 rg BT 410.87 525.32 Td ( MARKET) Tj ET Q q 0 0 1 rg BT 455.41 525.32 Td ( RISK) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 508.9833984375 m 113.4384765625 508.9833984375 l s q 0 0 1 rg BT 79.00 510.32 Td (ITEM 8.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 508.9833984375 m 398.15087890625 508.9833984375 l s q 0 0 1 rg BT 141.00 510.32 Td (FINANCIAL) Tj ET Q q 0 0 1 rg BT 194.52 510.32 Td ( ST) Tj ET Q q 0 0 1 rg BT 207.88 510.32 Td (A) Tj ET Q q 0 0 1 rg BT 214.00 510.32 Td (TEMENTS ) Tj ET Q q 0 0 1 rg BT 262.05 510.32 Td (AND SUPPLEMENT) Tj ET Q q 0 0 1 rg BT 349.87 510.32 Td (AR) Tj ET Q q 0 0 1 rg BT 363.21 510.32 Td (Y) Tj ET Q q 0 0 1 rg BT 370.06 510.32 Td ( DA) Tj ET Q q 0 0 1 rg BT 385.90 510.32 Td (T) Tj ET Q q 0 0 1 rg BT 391.21 510.32 Td (A) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 493.9833984375 m 113.4384765625 493.9833984375 l s q 0 0 1 rg BT 79.00 495.32 Td (ITEM 9.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 493.9833984375 m 502.240234375 493.9833984375 l s q 0 0 1 rg BT 141.00 495.32 Td (CHANGES IN ) Tj ET Q q 0 0 1 rg BT 203.23 495.32 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 1 rg BT 313.05 495.32 Td (WITH ) Tj ET Q q 0 0 1 rg BT 341.09 495.32 Td (ACCOUNT) Tj ET Q q 0 0 1 rg BT 388.63 495.32 Td (ANTS ON ) Tj ET Q q 0 0 1 rg BT 433.63 495.32 Td (ACCOUNTING ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 483.9833984375 m 282.85546875 483.9833984375 l s q 0 0 1 rg BT 141.00 485.32 Td (AND FINANCIAL) Tj ET Q q 0 0 1 rg BT 218.68 485.32 Td ( DISCLOSURE) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 468.9833984375 m 120.66015625 468.9833984375 l s q 0 0 1 rg BT 79.00 470.32 Td (ITEM 9A.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 468.9833984375 m 284.9111328125 468.9833984375 l s q 0 0 1 rg BT 141.00 470.32 Td (CONTROLS ) Tj ET Q q 0 0 1 rg BT 195.73 470.32 Td (AND PROCEDURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 453.9833984375 m 120.1083984375 453.9833984375 l s q 0 0 1 rg BT 79.00 455.32 Td (ITEM 9B.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 453.9833984375 m 245.7216796875 453.9833984375 l s q 0 0 1 rg BT 141.00 455.32 Td (OTHER INFORMA) Tj ET Q q 0 0 1 rg BT 221.84 455.32 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 438.9833984375 m 88.3525390625 438.9833984375 l s q 0 0 1 rg BT 52.00 440.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 440.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 440.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 440.32 Td ( III) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 440.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 439.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 423.9833984375 m 118.4384765625 423.9833984375 l s q 0 0 1 rg BT 79.00 425.32 Td (ITEM 10.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 423.9833984375 m 462.5087890625 423.9833984375 l s q 0 0 1 rg BT 141.00 425.32 Td (DIRECT) Tj ET Q q 0 0 1 rg BT 176.93 425.32 Td (ORS, EXECUTIVE OFFICERS ) Tj ET Q q 0 0 1 rg BT 308.61 425.32 Td (AND CORPORA) Tj ET Q q 0 0 1 rg BT 378.91 425.32 Td (TE GOVERNANCE) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 408.9833984375 m 118.0673828125 408.9833984375 l s q 0 0 1 rg BT 79.00 410.32 Td (ITEM 1) Tj ET Q q 0 0 1 rg BT 110.57 410.32 Td (1.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 408.9833984375 m 276.830078125 408.9833984375 l s q 0 0 1 rg BT 141.00 410.32 Td (EXECUTIVE COMPENSA) Tj ET Q q 0 0 1 rg BT 252.95 410.32 Td (TION) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 393.9833984375 m 118.4384765625 393.9833984375 l s q 0 0 1 rg BT 79.00 395.32 Td (ITEM 12.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 393.9833984375 m 515.5263671875 393.9833984375 l s q 0 0 1 rg BT 141.00 395.32 Td (SECURITY) Tj ET Q q 0 0 1 rg BT 189.52 395.32 Td ( OWNERSHIP) Tj ET Q q 0 0 1 rg BT 249.98 395.32 Td ( OF CER) Tj ET Q q 0 0 1 rg BT 286.62 395.32 Td (T) Tj ET Q q 0 0 1 rg BT 291.92 395.32 Td (AIN BENEFICIAL) Tj ET Q q 0 0 1 rg BT 370.16 395.32 Td ( OWNERS ) Tj ET Q q 0 0 1 rg BT 416.83 395.32 Td (AND MANAGEMENT) Tj ET Q q 0 0 1 rg BT 513.03 395.32 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 383.9833984375 m 333.3193359375 383.9833984375 l s q 0 0 1 rg BT 141.00 385.32 Td (AND RELA) Tj ET Q q 0 0 1 rg BT 190.17 385.32 Td (TED ST) Tj ET Q q 0 0 1 rg BT 223.59 385.32 Td (OCKHOLDER MA) Tj ET Q q 0 0 1 rg BT 302.76 385.32 Td (TTERS) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 368.9833984375 m 118.4384765625 368.9833984375 l s q 0 0 1 rg BT 79.00 370.32 Td (ITEM 13.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 368.9833984375 m 488.96875 368.9833984375 l s q 0 0 1 rg BT 141.00 370.32 Td (CER) Tj ET Q q 0 0 1 rg BT 159.85 370.32 Td (T) Tj ET Q q 0 0 1 rg BT 165.16 370.32 Td (AIN RELA) Tj ET Q q 0 0 1 rg BT 210.43 370.32 Td (TIONSHIPS ) Tj ET Q q 0 0 1 rg BT 263.50 370.32 Td (AND RELA) Tj ET Q q 0 0 1 rg BT 312.66 370.32 Td (TED ) Tj ET Q q 0 0 1 rg BT 334.42 370.32 Td (TRANSACTIONS ) Tj ET Q q 0 0 1 rg BT 412.48 370.32 Td (AND DIRECT) Tj ET Q q 0 0 1 rg BT 472.58 370.32 Td (OR ) Tj ET Q BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 358.9833984375 m 217.103515625 358.9833984375 l s q 0 0 1 rg BT 141.00 360.32 Td (INDEPENDENCE) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 343.9833984375 m 118.4384765625 343.9833984375 l s q 0 0 1 rg BT 79.00 345.32 Td (ITEM 14.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 343.9833984375 m 357.826171875 343.9833984375 l s q 0 0 1 rg BT 141.00 345.32 Td (PRINCIP) Tj ET Q q 0 0 1 rg BT 178.43 345.32 Td (AL) Tj ET Q q 0 0 1 rg BT 191.39 345.32 Td ( ) Tj ET Q q 0 0 1 rg BT 193.33 345.32 Td (ACCOUNTING FEES ) Tj ET Q q 0 0 1 rg BT 287.23 345.32 Td (AND SER) Tj ET Q q 0 0 1 rg BT 328.93 345.32 Td (VICES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 328.9833984375 m 88.82373046875 328.9833984375 l s q 0 0 1 rg BT 52.00 330.32 Td (P) Tj ET Q q 0 0 1 rg BT 56.64 330.32 Td (AR) Tj ET Q q 0 0 1 rg BT 69.93 330.32 Td (T) Tj ET Q q 0 0 1 rg BT 75.86 330.32 Td ( IV) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 330.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.00 329.42 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 79 313.9833984375 m 118.4384765625 313.9833984375 l s q 0 0 1 rg BT 79.00 315.32 Td (ITEM 15.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 141 313.9833984375 m 365.19921875 313.9833984375 l s q 0 0 1 rg BT 141.00 315.32 Td (EXHIBITS, FINANCIAL) Tj ET Q q 0 0 1 rg BT 245.07 315.32 Td ( ST) Tj ET Q q 0 0 1 rg BT 258.44 315.32 Td (A) Tj ET Q q 0 0 1 rg BT 264.55 315.32 Td (TEMENT) Tj ET Q q 0 0 1 rg BT 304.92 315.32 Td ( SCHEDULES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 298.9833984375 m 113.1181640625 298.9833984375 l s q 0 0 1 rg BT 52.00 300.32 Td (SIGNA) Tj ET Q q 0 0 1 rg BT 81.45 300.32 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 553 693.0833984375 m 558 693.0833984375 l s q 0 0 1 rg BT 553.00 694.42 Td (4) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 548 678.0833984375 m 558 678.0833984375 l s q 0 0 1 rg BT 548.00 679.42 Td (18) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 548 663.0833984375 m 558 663.0833984375 l s q 0 0 1 rg BT 548.00 664.42 Td (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 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 548 633.0833984375 m 558 633.0833984375 l s q 0 0 1 rg BT 548.00 634.42 Td (33) Tj ET Q 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.10 Td (In addition, we include forward-looking statements under the "Our Strategy" and "Future ) Tj ET Q q 0 0 0 rg BT 432.92 642.10 Td (T) Tj ET Q q 0 0 0 rg BT 438.68 642.10 Td (rends" headings set forth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (below in "Business" and under the "Bookings and Book-to-Bill Ratio" heading set forth below in "Management's Discussion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.39 618.10 Td (Analysis of Financial Condition and Results of Operations.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 598.10 Td (Y) Tj ET Q q 0 0 0 rg BT 80.22 598.10 Td (ou can identify these and other forward-looking statements by the use of the words such as "may) Tj ET Q q 0 0 0 rg BT 466.33 598.10 Td (," "will," "could," ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td ("would," "should," "expects," "plans," "anticipates," "estimates," "intends," "potential," "projected," "continue," "our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (observation," or the negative of such terms, or other comparable terminology) Tj ET Q q 0 0 0 rg BT 357.78 574.10 Td (. Forward-looking statements also include the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (assumptions underlying or relating to any of the foregoing statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 542.10 Td (Our actual results could dif) Tj ET Q q 0 0 0 rg BT 182.68 542.10 Td (fer materially from those anticipated in these forward-looking statements as a result of various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (factors, including those set forth below in "Business," "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 394.83 530.10 Td (Analysis of Financial Condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (Results of Operations" and under the heading "Risk Factors." ) Tj ET Q q 0 0 0 rg BT 297.21 518.10 Td (All forward-looking statements included in this document are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (based on information available to us on the date hereof. ) Tj ET Q q 0 0 0 rg BT 274.47 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.11 506.10 Td (e undertake no obligation to update these forward-looking statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.10 Td (as a result of events or circumstances or to reflect the occurrence of unanticipated events or non-occurrence of anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 482.10 Td (events, except to the extent required by law) Tj ET Q q 0 0 0 rg BT 223.17 482.10 Td (.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 742.25 Td ( I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 1.BUSINESS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (GENERAL) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (Business Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 658.25 Td (Our fiscal year ends on the Saturday closest to September30. Fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.25 658.25 Td (2015) 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 (2014) 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 (2013) 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 (October3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.77 658.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (September27) 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 (September28) 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 (2015) 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 (2014) 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 (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 634.25 Td ( for convenience. Fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.72 634.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.72 634.25 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.16 634.25 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.16 634.25 Td ( weeks and fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.84 634.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.84 634.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.28 634.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.28 634.25 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.71 634.25 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.71 634.25 Td (weeks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 614.25 Td (e are one of the world's leading 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 original equipment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 Td (manufacturer \("OEM"\) components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 314.85 510.25 Td (The size and complexity of many of the SLS products require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (service to be performed at the customer site by factory-trained field service engineers. CLC focuses on higher volume products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (that are of) Tj ET Q q 0 0 0 rg BT 90.35 486.25 Td (fered in set configurations. ) Tj ET Q q 0 0 0 rg BT 199.86 486.25 Td (The product architectures are designed for easy exchange at the point of use such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (substantially all product service and repairs are based upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 499.25 474.25 Td (. CLC's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (primary markets include materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 442.25 Td (Income from operations is the measure of profit and loss that our chief operating decision maker \("CODM"\) uses to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (assess performance and make decisions. Income from operations represents the sales less the cost of sales and direct operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (expenses incurred within the operating segments as well as allocated expenses such as shared sales and manufacturing costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 406.25 Td (e do not allocate to our operating segments certain operating expenses, which we manage separately at the corporate level. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (These unallocated costs include stock-based compensation and corporate functions \(certain advanced research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (development, management, finance, legal and human resources\) and are included in Corporate and other) Tj ET Q q 0 0 0 rg BT 467.62 382.25 Td (. Management does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (consider unallocated Corporate and other costs in its measurement of segment performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 350.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 350.25 Td (e were originally incorporated in California on May26, 1966 and reincorporated in Delaware on October1, 1990. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (common stock is listed on the NASDAQ Global Select Market and we are a member of the Standard & Poor's SmallCap 600 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (Index and the Russell 2000 Index.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 306.25 Td (Additional information about Coherent,Inc. \(referred to herein as the Company) Tj ET Q q 0 0 0 rg BT 392.14 306.25 Td (, we, our) Tj ET Q q 0 0 0 rg BT 426.73 306.25 Td (, or Coherent\) is available on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 Td (web site at www) Tj ET Q q 0 0 0 rg BT 116.28 294.25 Td (.coherent.com. ) Tj ET Q q 0 0 0 rg BT 177.74 294.25 Td (W) Tj ET Q q 0 0 0 rg BT 186.38 294.25 Td (e make available, free of char) Tj ET Q q 0 0 0 rg BT 304.45 294.25 Td (ge on our web site, access to our annual report on Form10-K, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (our quarterly reports on Form10-Q, our current reports on Form8-K and amendments to those reports filed or furnished ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.25 Td (pursuant to Section13\(a\) or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 297.15 270.25 Td (Act of 1934, as amended \(the "Exchange ) Tj ET Q q 0 0 0 rg BT 462.85 270.25 Td (Act"\), as soon as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.25 Td (reasonably practicable after we file or furnish them electronically with the Securities and Exchange Commission \("SEC"\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.25 Td (Information contained on our web site is not part of this annual report or our other filings with the SEC. ) Tj ET Q q 0 0 0 rg BT 466.87 246.25 Td (Any product, product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (name, process, or technology described in these materials is the property of Coherent.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 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 endstream endobj 15 0 obj <>] /Rotate 0 /Contents 16 0 R>> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (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; metals cutting and welding; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (industrial process and quality control; marking; imaging and printing; graphic arts and display; and, research and development. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (For example, ultraviolet \(UV\) lasers are enabling the move towards miniaturization, which drives innovation and growth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (many markets. In addition, the advent of industrial grade ultrafast lasers continues to open up new applications for laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (processing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (OUR STRA) Tj ET Q q 0 0 0 rg BT 100.65 526.10 Td (TEGY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 506.10 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 50.00 494.10 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 398.41 494.10 Td (, we intend to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 473.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 473.10 Td (Leverage our) Tj ET Q q 0 0 0 rg BT 160.74 473.10 Td ( technology portfolio and application engineering to lead the pr) Tj ET Q q 0 0 0 rg BT 429.73 473.10 Td (oliferation of photonics into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 461.10 Td (br) Tj ET Q q 0 0 0 rg BT 113.82 461.10 Td (oader) Tj ET Q q 0 0 0 rg BT 138.08 461.10 Td ( markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.57 461.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.21 461.10 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 104.00 449.10 Td (engineering can be used to of) Tj ET Q q 0 0 0 rg BT 221.28 449.10 Td (fer innovative solutions and gain access to new markets. ) Tj ET Q q 0 0 0 rg BT 448.81 449.10 Td (W) Tj ET Q q 0 0 0 rg BT 457.45 449.10 Td (e plan to utilize our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 437.10 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 77.00 416.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 416.10 Td (Optimize our) Tj ET Q q 0 0 0 rg BT 160.75 416.10 Td ( leadership position in existing markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.71 416.10 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 104.00 404.10 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 104.00 392.10 Td (derived a substantial portion of our revenues. ) Tj ET Q q 0 0 0 rg BT 287.10 392.10 Td (W) Tj ET Q q 0 0 0 rg BT 295.74 392.10 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 77.00 371.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 371.10 Td (Maintain and develop additional str) Tj ET Q q 0 0 0 rg BT 257.18 371.10 Td (ong collaborative customer) Tj ET Q q 0 0 0 rg BT 372.53 371.10 Td ( and industry r) Tj ET Q q 0 0 0 rg BT 436.53 371.10 Td (elationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.11 371.10 Td (W) Tj ET Q q 0 0 0 rg BT 505.74 371.10 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 359.10 Td (the Coherent brand name and reputation for product quality) Tj ET Q q 0 0 0 rg BT 341.61 359.10 Td (, technical performance and customer satisfaction will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 347.10 Td (help us to further develop our loyal customer base. ) Tj ET Q q 0 0 0 rg BT 309.32 347.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.96 347.10 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 104.00 335.10 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 104.00 323.10 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 77.00 302.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 302.10 Td (Develop and acquir) Tj ET Q q 0 0 0 rg BT 187.16 302.10 Td (e new technologies and market shar) Tj ET Q q 0 0 0 rg BT 339.47 302.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.91 302.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.54 302.10 Td (e will continue to enhance our market position ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 290.10 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 104.00 278.10 Td (ef) Tj ET Q q 0 0 0 rg BT 111.59 278.10 Td (forts, as well as through the acquisition of additional complementary technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 524.71 278.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 266.10 Td (manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 263.77 266.10 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 245.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 245.10 Td (Str) Tj ET Q q 0 0 0 rg BT 117.15 245.10 Td (eamline our) Tj ET Q q 0 0 0 rg BT 167.79 245.10 Td ( manufacturing structur) Tj ET Q q 0 0 0 rg BT 271.50 245.10 Td (e and impr) Tj ET Q q 0 0 0 rg BT 317.98 245.10 Td (ove our) Tj ET Q q 0 0 0 rg BT 349.74 245.10 Td ( cost structur) Tj ET Q q 0 0 0 rg BT 406.21 245.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 245.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.29 245.10 Td (e will focus on optimizing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 233.10 Td (mix of products that we manufacture internally and externally) Tj ET Q q 0 0 0 rg BT 351.04 233.10 Td (. ) Tj ET Q q 0 0 0 rg BT 355.86 233.10 Td (W) Tj ET Q q 0 0 0 rg BT 364.50 233.10 Td (e will utilize vertical integration where our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 221.10 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 104.00 209.10 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 77.00 188.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.00 188.10 Td (Focus on long-term impr) Tj ET Q q 0 0 0 rg BT 210.20 188.10 Td (ovement of adjusted EBITDA, in dollars and as a per) Tj ET Q q 0 0 0 rg BT 436.71 188.10 Td (centage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.07 188.10 Td (W) Tj ET Q q 0 0 0 rg BT 536.71 188.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 176.10 Td (define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 203.42 176.10 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 104.00 164.10 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 104.00 152.10 Td (reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 217.85 152.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 381.15 152.10 Td (Asian manufacturing locations, rationalizing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 140.10 Td (our supply chain and continued leveraging of our infrastructure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 120.10 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 100.10 Td (Our products address a broad range of applications that we group into the following markets: Microelectronics, Materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (Processing, OEM Components and Instrumentation and Scientific Research and Government Programs.) Tj ET Q endstream endobj 17 0 obj <>] /Rotate 0 /Contents 18 0 R>> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (6) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 740.68505859375 m 121.2646484375 740.68505859375 l s 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 (onics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 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 50.00 710.25 Td (tablets, personal computers \("PC's"\), televisions \("TV's"\) and now "wearables" are driving advances in displays, integrated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (circuits and PCBs. In response to market demands and expectations, semiconductor and device manufacturers are continually ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (seeking to improve their process and design technologies in order to manufacture smaller) Tj ET Q q 0 0 0 rg BT 406.71 686.25 Td (, more powerful and more reliable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (devices at lower cost. New laser applications and new laser technologies are a key element in delivering higher resolution and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (higher precision at lower manufacturing cost.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 642.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 642.25 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 50.00 630.25 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 50.00 610.25 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 610.25 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 610.25 Td (onicsflat panel display manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.25 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 50.00 578.25 Td (laptop computers, ) Tj ET Q q 0 0 0 rg BT 123.97 578.25 Td (TVs and wearables. ) Tj ET Q q 0 0 0 rg BT 205.42 578.25 Td (There are several types of established and emer) Tj ET Q q 0 0 0 rg BT 394.88 578.25 Td (ging displays based on quite dif) Tj ET Q q 0 0 0 rg BT 521.63 578.25 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (technologies, including liquid crystal \("LCD"\) and or) Tj ET Q q 0 0 0 rg BT 263.22 566.25 Td (ganic light emitting diodes \("OLED"\). Each of these technologies utilize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 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 50.00 542.25 Td (superior display brightness and resolution.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 522.25 Td (Several display types require a high-density pattern of silicon thin film transistors \("TFT) Tj ET Q q 0 0 0 rg BT 427.31 522.25 Td (s"\). If this silicon is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.25 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 50.00 498.25 Td (expensive special glass at high temperatures. However) Tj ET Q q 0 0 0 rg BT 268.13 498.25 Td (, excimer) Tj ET Q q 0 0 0 rg BT 305.14 498.25 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 50.00 486.25 Td (allowed high-volume production of low-temperature polysilicon \("L) Tj ET Q q 0 0 0 rg BT 322.54 486.25 Td (TPS"\) on conventional glass substrates. Our excimer lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (provide a unique solution for L) Tj ET Q q 0 0 0 rg BT 173.78 474.25 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 518.76 474.25 Td (gy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (optimized for this application. ) Tj ET Q q 0 0 0 rg BT 172.85 462.25 Td (The current state-of-the-art product for this application is our excimer ) Tj ET Q q 0 0 0 rg BT 454.22 462.25 Td (VYPER laser) Tj ET Q q 0 0 0 rg BT 507.98 462.25 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (delivers over 1000W) Tj ET Q q 0 0 0 rg BT 133.68 450.25 Td ( of power) Tj ET Q q 0 0 0 rg BT 171.60 450.25 Td (, enabling customers to scale to current Generation 5.5 & 6 substrates all the way up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 438.25 Td (Generation 8 sizes. ) Tj ET Q q 0 0 0 rg BT 128.68 438.25 Td (These systems are integral to the manufacturing process on all leading L) Tj ET Q q 0 0 0 rg BT 417.39 438.25 Td (TPS-based smart phone displays, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.25 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 50.00 414.25 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 500.00 414.25 Td (TV) Tj ET Q q 0 0 0 rg BT 513.14 414.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.25 Td (manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 382.25 Td (Our ) Tj ET Q q 0 0 0 rg BT 91.50 382.25 Td (A) Tj ET Q q 0 0 0 rg BT 97.43 382.25 Td (VIA, Rapid, ) Tj ET Q q 0 0 0 rg BT 148.91 382.25 Td (T) Tj ET Q q 0 0 0 rg BT 154.32 382.25 Td (alisker and DIAMOND lasers are also used in other production processes for FPDs. ) Tj ET Q q 0 0 0 rg BT 491.85 382.25 Td (These processes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (include drilling, cutting, patterning, marking and yield improvement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 350.25 Td (During fiscal 2015 we introduced a range of new industry leading products and product platforms, including ultrafast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (lasers with pulse durations below 1 pico second \(ps\), or femto second \(fs\) lasers. Ps and fs lasers are commonly referred to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (collectively as ultrafast lasers. Our new fs lasers, Monaco and Rapid FX, of) Tj ET Q q 0 0 0 rg BT 361.11 326.25 Td (fer performances ideal for industrial applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.25 Td (in microelectronics, materials processing and medical applications coupled with superior reliability and cost of ownership. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 294.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 294.25 Td (e also introduced a new laser based on our DIAMOND J-series using carbon-monoxide \("CO"\) as the lasing medium. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.25 Td (CO lasers produce laser radiation in a wavelength region where there are few commercially available laser sources and none at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.25 Td (powers suitable for materials processing. ) Tj ET Q q 0 0 0 rg BT 215.88 270.25 Td (The unique wavelength range of this laser opens up laser processing to additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.25 Td (materials and can improve the precision and throughput with which we process some traditional carbon dioxide \("CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 520.07 256.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.32 258.25 Td ("\) laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.25 Td (applications, including in the areas of materials processing, medical therapy and microelectronics. ) Tj ET Q q 0 0 0 rg BT 444.40 246.25 Td (W) Tj ET Q q 0 0 0 rg BT 453.04 246.25 Td (e are the only supplier of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.25 Td (commercial, high power CO lasers. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 214.25 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 214.25 Td (onicsadvanced packaging and inter) Tj ET Q q 0 0 0 rg BT 259.72 214.25 Td (connects) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 194.25 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 50.00 182.25 Td (in a packaged encapsulated silicon chip. Ultimately) Tj ET Q q 0 0 0 rg BT 255.11 182.25 Td (, these chips are then assembled into finished products. ) Tj ET Q q 0 0 0 rg BT 477.38 182.25 Td (The advent of high-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.25 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 50.00 158.25 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 50.00 146.25 Td (thinner silicon. Our ) Tj ET Q q 0 0 0 rg BT 129.99 146.25 Td (A) Tj ET Q q 0 0 0 rg BT 135.92 146.25 Td (VIA, Rapid, ) Tj ET Q q 0 0 0 rg BT 187.40 146.25 Td (T) Tj ET Q q 0 0 0 rg BT 192.81 146.25 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 50.00 134.25 Td (while delivering higher yields than traditional mechanical methods. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 114.25 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 50.00 102.25 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 90.25 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 90.25 Td (These microvias are tiny interconnects that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 78.25 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 66.25 Td (DIAMOND CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 114.72 64.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.97 66.25 Td ( and ) Tj ET Q q 0 0 0 rg BT 136.86 66.25 Td (A) Tj ET Q q 0 0 0 rg BT 142.79 66.25 Td (VIA) Tj ET Q q 0 0 0 rg BT 160.01 66.25 Td ( diode pumped solid state \("DPSS"\) lasers are the lasers of choice in this application. ) Tj ET Q q 0 0 0 rg BT 501.81 66.25 Td (The ability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.25 Td (these lasers to operate at very high repetition rates translates into faster drilling speeds and increased throughput in microvia ) Tj ET Q endstream endobj 19 0 obj <>] /Rotate 0 /Contents 20 0 R>> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (processing applications. In addition, multi-layer circuit boards require more flexible production methods than conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (printing technologies can of) Tj ET Q q 0 0 0 rg BT 161.73 730.10 Td (fer) Tj ET Q q 0 0 0 rg BT 172.43 730.10 Td (, which has led to widespread adoption of laser direct imaging \("LDI"\). Our Paladin laser is used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (for this application.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 Td (Lasers have also become a valuable tool in high-brightness \("HB"\) light-emitting diode \("LED"\) manufacturing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (improving LED performance and yield. LEDs have widespread adoption as the light source in all categories of LCD displays, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (from phones all the way to full size ) Tj ET Q q 0 0 0 rg BT 193.67 674.10 Td (TVs and moving into general lighting. Our lasers are used in back-end processing of HB-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (LEDs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 642.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 642.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 642.10 Td (onicssemiconductor) Tj ET Q q 0 0 0 rg BT 193.85 642.10 Td ( fr) Tj ET Q q 0 0 0 rg BT 203.94 642.10 Td (ont-end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 622.10 Td (The term "front-end" refers to the production of semiconductor devices which occurs prior to packaging.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 602.10 Td (As semiconductor device geometries decrease in size, devices become increasingly susceptible to smaller defects during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (each phase of the manufacturing process and these defects can negatively impact yield. One of the semiconductor industry's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (responses to the increasing vulnerability of semiconductor devices to smaller defects has been to use defect detection and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (inspection techniques that are closely linked to the manufacturing process. For example, automated laser) Tj ET Q q 0 0 0 rg BT 468.28 566.10 Td (-based inspection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (systems are now used to detect and locate defects as small as 0.01 micron, which may not be observable by conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (optical microscopes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 522.10 Td (Detecting the presence of defects is only the first step in preventing their recurrence. ) Tj ET Q q 0 0 0 rg BT 413.59 522.10 Td (After detection, defects must be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (examined in order to identify their size, shape and the process step in which the defect occurred. ) Tj ET Q q 0 0 0 rg BT 437.18 510.10 Td (This examination is called ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.10 Td (defect classification. Identification of the sources of defects in the lengthy and complex semiconductor manufacturing process ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (has become essential for maintaining high yield production. Semiconductor manufacturing has become an around-the-clock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (operation and it is important for products used for inspection, measurement and testing to be reliable and to have long lifetimes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.10 Td (Our ) Tj ET Q q 0 0 0 rg BT 67.50 462.10 Td (Azure, Paladin and Excimer lasers are used to detect and characterize defects in semiconductor chips.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 440.53505859375 m 138.4130859375 440.53505859375 l s q 0 0 0 rg BT 50.00 442.10 Td (Materials pr) Tj ET Q q 0 0 0 rg BT 103.41 442.10 Td (ocessing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 422.10 Td (Lasers are widely accepted today in many important industrial manufacturing applications including cutting, welding, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (joining, drilling, perforating, and marking of metals and nonmetals. ) Tj ET Q q 0 0 0 rg BT 322.26 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 330.90 410.10 Td (e supply high-power lasers for metal processing and low-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (to-medium power lasers for laser marking, nonmetals processing and precision micromachining.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 378.10 Td (Our high power industrial laser systems are used for cutting, welding, cladding and hardening of metals, as well as other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (materials processing applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 346.10 Td (Our Semiconductor business provides higher power arrays with powers in excess of 50 kilowatts through proprietary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (cooling and stacking technology) Tj ET Q q 0 0 0 rg BT 179.04 334.10 Td (. ) Tj ET Q q 0 0 0 rg BT 183.86 334.10 Td (This unique technology provides the engine for both our Highlight direct diode systems as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (well as our Highlight multi-kilowatt class fiber lasers. Our dif) Tj ET Q q 0 0 0 rg BT 296.99 322.10 Td (ferentiated fiber laser design of) Tj ET Q q 0 0 0 rg BT 421.75 322.10 Td (fers our customers a higher level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (of integration and additional options for product serviceability) Tj ET Q q 0 0 0 rg BT 298.45 310.10 Td (. Our fiber lasers are used for metal cutting, cladding, welding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (and additive manufacturing applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 278.10 Td (Complementing our high power solid state lasers is our industry leading DIAMOND E1000 CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 456.62 276.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.87 278.10 Td ( laser) Tj ET Q q 0 0 0 rg BT 480.70 278.10 Td (. ) Tj ET Q q 0 0 0 rg BT 485.52 278.10 Td (This laser remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (in high demand due to its high power) Tj ET Q q 0 0 0 rg BT 198.75 266.10 Td (, small size and completely sealed designall ideal for materials processing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 246.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.54 246.10 Td (ith the broadest product portfolio in the laser industry) Tj ET Q q 0 0 0 rg BT 294.73 246.10 Td (, we of) Tj ET Q q 0 0 0 rg BT 322.04 246.10 Td (fer solutions for almost any application on any material to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (our customers. Combining the high power Direct Diode, Fiber and CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 332.73 232.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.98 234.10 Td ( products with our MET) Tj ET Q q 0 0 0 rg BT 431.83 234.10 Td (A) Tj ET Q q 0 0 0 rg BT 438.50 234.10 Td ( flatbed cutting tool provides a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 222.10 Td (strong, compelling four) Tj ET Q q 0 0 0 rg BT 143.95 222.10 Td (-pronged approach to meeting the needs of our diverse high power materials processing customers. ) Tj ET Q q 0 0 0 rg BT 542.26 222.10 Td (W) Tj ET Q q 0 0 0 rg BT 550.90 222.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (are vertically integrated with world class diode and active fiber manufacturing, which makes us very well positioned to succeed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (in both the near and long term in the high power fiber laser market. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 178.10 Td (e also participate in the low to medium power area, including such applications as the cutting, drilling and joining of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (host of materials using our DIAMOND CO and CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 257.20 164.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.45 166.10 Td ( lasers; Highlight fiber array product \("F) Tj ET Q q 0 0 0 rg BT 421.53 166.10 Td (AP"\) semiconductor lasers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (OEM opportunities and direct end user applications with MET) Tj ET Q q 0 0 0 rg BT 299.70 154.10 Td (A) Tj ET Q q 0 0 0 rg BT 306.37 154.10 Td ( cutting tools; applications including cutting, perforating and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (scoring of paper) Tj ET Q q 0 0 0 rg BT 114.58 142.10 Td (, thin metals and packaging materials; and various cutting and patterning applications in the textile, wood and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (sign industries. In the specific area of textiles and clothing, our DIAMOND lasers service older applications, such as cutting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (complex shapes in leather for footwear) Tj ET Q q 0 0 0 rg BT 205.37 118.10 Td (, as well as newer applications such as creating detailed fade patterns on designer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (denims.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 86.10 Td (Laser marking and coding are generally considered part of the precision materials processing applications market for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (which we remain a leading supplier) Tj ET Q q 0 0 0 rg BT 191.90 74.10 Td (. ) Tj ET Q q 0 0 0 rg BT 196.72 74.10 Td (The optimum choice of laser depends on the material being marked, whether it is a surface ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (mark \(engraved\) or a sub-surface mark, and the specific economics of the application. Our DIAMOND J, C and GEM Series of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 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 48.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.14 50.10 Td ( lasers provide many systems manufacturers with a reliable cost ef) Tj ET Q q 0 0 0 rg BT 332.43 50.10 Td (fective source for marking and engraving on non-metals. ) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (In addition, our Matrix and Helios product lines of reliable, compact and low-cost DPSS lasers provide an ideal solution for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (marking of other materials in high volume manufacturing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 83.04 710.10 Td (ith our lar) Tj ET Q q 0 0 0 rg BT 122.29 710.10 Td (ge portfolio of Ultrafast laser technology) Tj ET Q q 0 0 0 rg BT 285.20 710.10 Td (, we serve customers with a variety of laser micromachining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (solutions, including our Integrated Optics Systems group which will develop sub systems and new applications in the fast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (growing micro materials processing market.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 664.53505859375 m 217.5146484375 664.53505859375 l s q 0 0 0 rg BT 50.00 666.10 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 646.10 Td (Instrumentation is one of our more mature commercial applications. Representative applications within this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (include bio-instrumentation, medical OEMs, graphic arts and display and machine vision.) Tj ET Q q 0 0 0 rg BT 411.40 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 420.04 634.10 Td (e also support the laser) Tj ET Q q 0 0 0 rg BT 511.48 634.10 Td (-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (instrumentation market with a range of laser) Tj ET Q q 0 0 0 rg BT 226.96 622.10 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 50.00 610.10 Td (component business includes sales to other) Tj ET Q q 0 0 0 rg BT 221.51 610.10 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 50.00 598.10 Td (processing, scientific, and medical.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (Bio-instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 558.10 Td (Bio-instrumentation applications for lasers include bio-agent detection for point source and standof) Tj ET Q q 0 0 0 rg BT 470.66 558.10 Td (f detection of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 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 50.00 534.10 Td (cellular and subcellular structures and processes with an incredible amount of detail; DNA) Tj ET Q q 0 0 0 rg BT 411.55 534.10 Td ( sequencing that provides automation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 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 50.00 510.10 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 50.00 498.10 Td (populations of cells in a heterogeneous mixture, including blood samples. Our OBIS, Flare, Galaxy) Tj ET Q q 0 0 0 rg BT 446.77 498.10 Td (, Sapphire, BioRay and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (Genesis lasers are used in several bio-instrumentation applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Medical Therapy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 446.10 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 547.69 446.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (aesthetic, sur) Tj ET Q q 0 0 0 rg BT 102.02 434.10 Td (gical, therapeutic and dentistry) Tj ET Q q 0 0 0 rg BT 224.66 434.10 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 337.70 432.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.95 434.10 Td ( lasers are widely used in ophthalmic, aesthetic and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (sur) Tj ET Q q 0 0 0 rg BT 62.04 422.10 Td (gical markets. ) Tj ET Q q 0 0 0 rg BT 120.45 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 129.09 422.10 Td (e have a leading position in Lasik and photorefractive keratectomy sur) Tj ET Q q 0 0 0 rg BT 410.47 422.10 Td (gery methods with our ExciStar XS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (excimer laser platform. ) Tj ET Q q 0 0 0 rg BT 145.33 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 153.97 410.10 Td (e also provide ultrafast lasers for use in cataract sur) Tj ET Q q 0 0 0 rg BT 358.98 410.10 Td (gery) Tj ET Q q 0 0 0 rg BT 376.10 410.10 Td (, a growing applications space.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 390.10 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 50.00 378.10 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 50.00 366.10 Td (Age Related Macular Degeneration and retinal diseases associated with diabetes. ) Tj ET Q q 0 0 0 rg BT 376.08 366.10 Td (The 577nm wavelength was designed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 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 50.00 342.10 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 50.00 330.10 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 50.00 318.10 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 50 296.53505859375 m 244.4189453125 296.53505859375 l s q 0 0 0 rg BT 50.00 298.10 Td (Scientific r) Tj ET Q q 0 0 0 rg BT 96.19 298.10 Td (esear) Tj ET Q q 0 0 0 rg BT 118.22 298.10 Td (ch and government pr) Tj ET Q q 0 0 0 rg BT 212.76 298.10 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 278.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 278.10 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 50.00 266.10 Td (market" for our leading-edge innovations. ) Tj ET Q q 0 0 0 rg BT 219.96 266.10 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 50.00 254.10 Td (excimer gas lasers and water) Tj ET Q q 0 0 0 rg BT 164.75 254.10 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 50.00 242.10 Td (and includes our Chameleon, COMPexPro, Evolution, Fidelity) Tj ET Q q 0 0 0 rg BT 300.72 242.10 Td (, Legend, Libra, MBD, MBR, Monaco, ) Tj ET Q q 0 0 0 rg BT 459.96 242.10 Td (V) Tj ET Q q 0 0 0 rg BT 466.58 242.10 Td (itara, Mephisto, Mira ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.76 230.10 Td (V) Tj ET Q q 0 0 0 rg BT 72.87 230.10 Td (erdi lasers. Many of the innovations and products pioneered in the scientific marketplace have become commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (successes for both our OEM customers and us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 198.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 198.10 Td (e have a lar) Tj ET Q q 0 0 0 rg BT 128.26 198.10 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 50.00 186.10 Td (branch of science and engineering. ) Tj ET Q q 0 0 0 rg BT 191.42 186.10 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 50.00 174.10 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 50.00 162.10 Td (measured in femto- or attoseconds \(10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 203.56 166.63 Td (-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.23 162.10 Td ( to 10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 235.01 166.63 Td (-18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.67 162.10 Td ( seconds\). 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 50.00 150.10 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 521.07 150.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (lasers also deliver very high peak power and lar) Tj ET Q q 0 0 0 rg BT 240.86 138.10 Td (ge bandwidths, which can be used to generate many exotic ef) Tj ET Q q 0 0 0 rg BT 485.87 138.10 Td (fects. Some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 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 477.76 126.10 Td (The use of ultrafast ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 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 50.00 102.10 Td (tool in modern brain research. ) Tj ET Q q 0 0 0 rg BT 172.55 102.10 Td (W) Tj ET Q q 0 0 0 rg BT 181.19 102.10 Td (e recently released a new product called the Chameleon Discovery tar) Tj ET Q q 0 0 0 rg BT 460.33 102.10 Td (geted to this market.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (FUTURE ) Tj ET Q q 0 0 0 rg BT 93.43 82.10 Td (TRENDS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (Micr) Tj ET Q q 0 0 0 rg BT 70.91 62.10 Td (oelectr) Tj ET Q q 0 0 0 rg BT 99.59 62.10 Td (onics) Tj ET Q endstream endobj 23 0 obj <>] /Rotate 0 /Contents 24 0 R>> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (Lasers are widely used in mass production microelectronics applications lar) Tj ET Q q 0 0 0 rg BT 376.78 742.10 Td (gely because they enable entirely new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (application capabilities that cannot be realized by any other known means. ) Tj ET Q q 0 0 0 rg BT 350.27 730.10 Td (These laser) Tj ET Q q 0 0 0 rg BT 395.32 730.10 Td (-based fabrication and testing methods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 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 442.22 718.10 Td (, are touch free, deliver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (superior end products, increase yields, and/or cut production costs. ) Tj ET Q q 0 0 0 rg BT 319.19 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 327.83 706.10 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 50.00 694.10 Td (increasing sophistication and miniaturization of consumer electronic goods and their conver) Tj ET Q q 0 0 0 rg BT 417.49 694.10 Td (gence via the internet, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (increasing demand for better displays, more bandwidth and memory) Tj ET Q q 0 0 0 rg BT 322.33 682.10 Td (, and all packaged into devices which are lighter) Tj ET Q q 0 0 0 rg BT 514.91 682.10 Td (, thinner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (and consume less power) Tj ET Q q 0 0 0 rg BT 146.92 670.10 Td (. ) Tj ET Q q 0 0 0 rg BT 151.37 670.10 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 50.00 658.10 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 50.00 646.10 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 136.66 644.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.90 646.10 Td (, fiber) Tj ET Q q 0 0 0 rg BT 163.38 646.10 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 50.00 634.10 Td (improvements and reduced process costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 614.10 Td (L) Tj ET Q q 0 0 0 rg BT 79.19 614.10 Td (TPS-based high resolution mobile displays \(greater than 300ppi\), and especially the emer) Tj ET Q q 0 0 0 rg BT 436.70 614.10 Td (gence of OLED technology) Tj ET Q q 0 0 0 rg BT 546.29 614.10 Td (, is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (evolving as the prevalent FPD technology) Tj ET Q q 0 0 0 rg BT 217.37 602.10 Td (. ) Tj ET Q q 0 0 0 rg BT 222.19 602.10 Td (W) Tj ET Q q 0 0 0 rg BT 230.83 602.10 Td (e believe we are well positioned, especially with our ) Tj ET Q q 0 0 0 rg BT 442.80 602.10 Td (V) Tj ET Q q 0 0 0 rg BT 448.91 602.10 Td (yper Excimer lasers and LB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 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 74.00 570.10 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 87.89 568.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.14 570.10 Td (, ) Tj ET Q q 0 0 0 rg BT 95.59 570.10 Td (A) Tj ET Q q 0 0 0 rg BT 102.07 570.10 Td (via, Matrix, Rapid, ) Tj ET Q q 0 0 0 rg BT 180.21 570.10 Td (T) Tj ET Q q 0 0 0 rg BT 185.62 570.10 Td (alisker) Tj ET Q q 0 0 0 rg BT 211.87 570.10 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 50.00 558.10 Td (panel, film cutting, light guide technology) Tj ET Q q 0 0 0 rg BT 217.93 558.10 Td (, repair) Tj ET Q q 0 0 0 rg BT 245.84 558.10 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 72.50 534.10 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 423.53 534.10 Td (s mobile devices requiring thinner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (glass with higher degrees of mechanical strength and scratch resistance. ) Tj ET Q q 0 0 0 rg BT 339.43 522.10 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 50.00 510.10 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 50.00 498.10 Td (expect lasers to play an increased role. Our CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 257.43 496.67 Td (2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.93 498.10 Td (Monaco and Rapid lasers are well positioned to take advantage of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (trend.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 466.10 Td (Semiconductor devices look set to continue Moore's Law) Tj ET Q q 0 0 0 rg BT 302.60 466.10 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 50.00 454.10 Td (as expanding vertically into new 3D structures. ) Tj ET Q q 0 0 0 rg BT 240.51 454.10 Td (As a result we believe our many UV) Tj ET Q q 0 0 0 rg BT 386.12 454.10 Td ( laser sources \(such as ) Tj ET Q q 0 0 0 rg BT 476.92 454.10 Td (Azure, Paladin, ) Tj ET Q q 0 0 0 rg BT 540.80 454.10 Td (A) Tj ET Q q 0 0 0 rg BT 547.28 454.10 Td (via, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (Rapid, ExiStar and Matrix\) 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 50.00 430.10 Td (process demands of a nanometer scale world. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 410.10 Td (The same lasers plus Monaco, Rapid FX, CO and CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 288.69 408.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.94 410.10 Td ( are also widely adopted for back end ) Tj ET Q q 0 0 0 rg BT 443.55 410.10 Td (Advanced Packaging and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (Interconnect \(API\) applications. ) Tj ET Q q 0 0 0 rg BT 180.88 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 189.92 398.10 Td (ith dimension roadmaps showing a decade of dimension shrink on PCBs, interconnects, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (Silicon & LED scribe widths and wafer thickness, we believe that our portfolio of lasers aligns well with these demands as well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (as new processes that seem likely to be enabled by our lasers, to meet the increasing demands and decreasing tolerances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (these markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (Materials pr) Tj ET Q q 0 0 0 rg BT 103.41 342.10 Td (ocessing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 322.10 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 240.90 320.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 322.10 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 50.00 310.10 Td (very diverse. New product introductions such as our Diamond J-series CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 347.44 308.67 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.31 310.10 Td (and CO lasers continue to support our growth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (this area. ) Tj ET Q q 0 0 0 rg BT 88.41 298.10 Td (These lasers represent a cost-ef) Tj ET Q q 0 0 0 rg BT 213.17 298.10 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 50.00 286.10 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 50.00 274.10 Td (apparel and leather goods manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.10 Td (The market for kW) Tj ET Q q 0 0 0 rg BT 150.73 254.10 Td ( class fiber lasers has seen strong growth in recent years, replacing legacy multi-kW) Tj ET Q q 0 0 0 rg BT 486.54 254.10 Td ( CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 502.93 252.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.18 254.10 Td ( lasers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (metal cutting and other applications. ) Tj ET Q q 0 0 0 rg BT 198.11 242.10 Td (This trend will likely continue into the future. ) Tj ET Q q 0 0 0 rg BT 383.17 242.10 Td (The favorable cost of ownership of high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 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 529.41 230.10 Td (They ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 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 50.00 206.10 Td (and 3D printing. ) Tj ET Q q 0 0 0 rg BT 118.14 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 126.78 206.10 Td (e believe we are well positioned to benefit from these lar) Tj ET Q q 0 0 0 rg BT 353.74 206.10 Td (ge and growing markets with our line of kW) Tj ET Q q 0 0 0 rg BT 531.29 206.10 Td ( fiber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (and diode lasers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 174.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 174.10 Td (e have developed an expanded portfolio of lasers with a broad spectrum of wavelengths and power levels, enabling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (optimum solutions for virtually every metal and non-metal material type. ) Tj ET Q q 0 0 0 rg BT 344.10 162.10 Td (At the same time, the higher reliability of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (products has lowered the cost of ownership.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 110.10 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 439.38 110.10 Td (, flow cytometry and DNA) Tj ET Q q 0 0 0 rg BT 546.30 110.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 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 86.10 Td (OPSL) Tj ET Q q 0 0 0 rg BT 74.08 86.10 Td ( technology gives us dif) Tj ET Q q 0 0 0 rg BT 169.44 86.10 Td (ferentiated products at a number of important wavelengths. ) Tj ET Q q 0 0 0 rg BT 408.35 86.10 Td (This advantage coupled with strong ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (focus on meeting our customers) Tj ET Q q 0 0 0 rg BT 180.34 74.10 Td ( demands for more compact and cost ef) Tj ET Q q 0 0 0 rg BT 337.60 74.10 Td (fective sources has made us very successful and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (expect that to continue. Our OPSL) Tj ET Q q 0 0 0 rg BT 187.93 62.10 Td ( technology resulted in the first truly continuous wave solid-state UV) Tj ET Q q 0 0 0 rg BT 464.37 62.10 Td ( laser which enables the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (use of UV) Tj ET Q q 0 0 0 rg BT 90.92 50.10 Td ( in a clinical as well as a research environment. ) Tj ET Q endstream endobj 25 0 obj <>] /Rotate 0 /Contents 26 0 R>> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (In the medical therapeutic area, we see solid business with several opportunities for growth. ) Tj ET Q q 0 0 0 rg BT 443.71 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.34 742.10 Td (e supply excimer lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (used in refractive eye sur) Tj ET Q q 0 0 0 rg BT 150.33 730.10 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 50.00 718.10 Td (ultrafast lasers in applications such as laser cataract sur) Tj ET Q q 0 0 0 rg BT 270.29 718.10 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 50.00 706.10 Td (and more reliable patient outcomes. Laser cataract sur) Tj ET Q q 0 0 0 rg BT 265.83 706.10 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 50.00 694.10 Td (growth over the next several years. ) Tj ET Q q 0 0 0 rg BT 192.27 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 200.90 694.10 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 50.00 682.10 Td (greatly improved patient comfort and outcome. In the area of photocoagulation, our Genesis OPSL) Tj ET Q q 0 0 0 rg BT 445.35 682.10 Td ( yellow lasers are being used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 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 q 0 0 0 rg BT 50.00 658.10 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 109.44 656.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.69 658.10 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 50.00 646.10 Td (and hair removal. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 Td (Scientific r) Tj ET Q q 0 0 0 rg BT 96.19 626.10 Td (esear) Tj ET Q q 0 0 0 rg BT 118.22 626.10 Td (ch and government pr) Tj ET Q q 0 0 0 rg BT 212.76 626.10 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 606.10 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 50.00 594.10 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 50.00 582.10 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 548.03 582.10 Td (W) Tj ET Q q 0 0 0 rg BT 556.67 582.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 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 501.45 570.10 Td (. In physics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 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 50.00 546.10 Td (have been very well received. ) Tj ET Q q 0 0 0 rg BT 171.42 546.10 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 50.00 534.10 Td (growth.) Tj ET Q endstream endobj 27 0 obj <>] /Rotate 0 /Contents 28 0 R>> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 94.82 742.25 Td ( ) Tj ET Q q 0 0 0 rg BT 96.77 742.25 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 140.47 742.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 722.25 Td (e design, manufacture and market lasers, laser tools, precision optics and related accessories for a diverse group of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (customers. ) Tj ET Q q 0 0 0 rg BT 95.37 710.25 Td (The following table lists our major markets and the Coherent technologies serving these markets.*) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 678.75 m 405 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 678.75 m 512 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 678.75 m 249 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 618.75 m 405 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 618.75 m 512 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 570.75 m 405 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 570.75 m 512 570.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 513.75 m 249 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 513.75 m 405 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 513.75 m 512 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 456.75 m 405 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 456.75 m 512 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 423.75 m 405 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 423.75 m 512 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 352.75 m 249 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 352.75 m 405 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 352.75 m 512 352.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 313.75 m 405 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 313.75 m 512 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 289.75 m 405 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 289.75 m 512 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 225.75 m 249 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 225.75 m 405 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 225.75 m 512 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 99 177.75 m 249 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 177.75 m 405 177.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 177.75 m 512 177.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 101.50 682.98 Td (Market) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.45 682.98 Td (Application) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.55 682.98 Td (Technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 669.32 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 669.32 Td (Flat panel display) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 663.42 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 661.99 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 653.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 643.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 633.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 623.42 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 609.32 Td (Advanced packaging and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 599.32 Td (interconnects) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 605.42 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 603.99 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 595.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 585.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 575.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 561.32 Td (Semiconductor front-end) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 558.42 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 556.99 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 548.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 538.42 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 528.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 518.42 Td (Ion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 504.32 Td (Materials processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 504.32 Td (Metal cutting, drilling, joining, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 494.32 Td (cladding, surface treatment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 484.32 Td (additive manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 504.32 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 502.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 494.32 Td (Fiber) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 484.32 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 474.32 Td (Laser Machine ) Tj ET Q q 0 0 0 rg BT 479.51 474.32 Td (T) Tj ET Q q 0 0 0 rg BT 484.92 474.32 Td (ools ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 464.32 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 447.32 Td (Laser marking and coding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 447.32 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 445.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 437.32 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 427.32 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 414.32 Td (Non-metal cutting, drilling) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 407.42 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 405.99 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 397.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 387.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 377.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 367.42 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 357.42 Td (Laser Machine ) Tj ET Q q 0 0 0 rg BT 479.51 357.42 Td (T) Tj ET Q q 0 0 0 rg BT 484.92 357.42 Td (ools) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 343.32 Td (OEM components and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 333.32 Td (instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 343.32 Td (Bio-Instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 343.32 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 333.32 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 323.32 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 304.32 Td (Graphic arts and display) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 304.32 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 294.32 Td (CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 431.39 292.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 280.32 Td (Medical therapy \(OEM\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 280.32 Td (CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 450.28 278.89 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 270.32 Td (DPSS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 260.32 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 250.32 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 240.32 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 230.32 Td (Semiconductor) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 216.32 Td (Scientific research and government) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 206.32 Td (programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 216.32 Td (All scientific applications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 212.42 Td (DPSS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 202.42 Td (Excimer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 192.42 Td (OPSL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 182.42 Td (Ultrafast) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 168.32 Td (*Coherent sells its laser measurement and control products into a number of these applications.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 143.25 Td (In addition to products we provide, we invest routinely in the core technologies needed to create substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 131.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.93 131.25 Td (ferentiation for our products in the marketplace. Our semiconductor) Tj ET Q q 0 0 0 rg BT 331.82 131.25 Td (, crystal, fiber and lar) Tj ET Q q 0 0 0 rg BT 417.16 131.25 Td (ge form factor optics facilities all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 119.25 Td (maintain an external customer base providing value-added solutions. ) Tj ET Q q 0 0 0 rg BT 327.24 119.25 Td (W) Tj ET Q q 0 0 0 rg BT 335.88 119.25 Td (e direct significant engineering ef) Tj ET Q q 0 0 0 rg BT 470.08 119.25 Td (forts to produce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 107.25 Td (unique solutions tar) Tj ET Q q 0 0 0 rg BT 128.70 107.25 Td (geted for internal consumption. ) Tj ET Q q 0 0 0 rg BT 256.54 107.25 Td (These investments, once integrated into our broader product portfolio, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 95.25 Td (provide our customers with uniquely dif) Tj ET Q q 0 0 0 rg BT 210.63 95.25 Td (ferentiated solutions and the opportunity to substantially enhance the performance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 83.25 Td (reliability and capability of the products we of) Tj ET Q q 0 0 0 rg BT 235.04 83.25 Td (fer) Tj ET Q q 0 0 0 rg BT 245.59 83.25 Td (.) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (TECHNOLOGIES) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Diode-pumped solid-state lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (DPSS lasers use semiconductor lasers to pump a crystal to produce a laser beam. By changing the ener) Tj ET Q q 0 0 0 rg BT 484.82 702.25 Td (gy) Tj ET Q q 0 0 0 rg BT 494.17 702.25 Td (, optical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (components and the types of crystals used in the laser) Tj ET Q q 0 0 0 rg BT 264.27 690.25 Td (, dif) Tj ET Q q 0 0 0 rg BT 280.20 690.25 Td (ferent wavelengths and types of laser light can be produced.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 670.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 670.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 131.19 670.25 Td (, reliability) Tj ET Q q 0 0 0 rg BT 174.42 670.25 Td (, longevity and relatively low cost of DPSS lasers make them ideally suited for a wide range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (OEM and end-user applications, particularly those requiring 24-hour operations. Our DPSS systems are compact and self-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (contained sealed units. Unlike conventional tools and other lasers, our DPSS lasers require minimal maintenance since they do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (not have internal controls or components that require adjusting and cleaning to maintain consistency) Tj ET Q q 0 0 0 rg BT 450.63 634.25 Td (. ) Tj ET Q q 0 0 0 rg BT 455.45 634.25 Td (They are also less af) Tj ET Q q 0 0 0 rg BT 536.90 634.25 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (by environmental changes in temperature and humidity) Tj ET Q q 0 0 0 rg BT 270.40 622.25 Td (, which can alter alignment and inhibit performance in many systems.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 602.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 602.25 Td (e manufacture a variety of types of DPSS lasers for dif) Tj ET Q q 0 0 0 rg BT 301.28 602.25 Td (ferent applications including semiconductor inspection; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.25 Td (advanced packaging and interconnects; laser pumping; spectroscopy; bio-agent detection; DNA) Tj ET Q q 0 0 0 rg BT 432.38 590.25 Td ( sequencing; drug discovery; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (flow cytometry; forensics; computer) Tj ET Q q 0 0 0 rg BT 195.59 578.25 Td (-to-plate printing; entertainment lighting \(display\); medical; rapid prototyping and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (marking, welding, engraving, cutting and drilling.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 546.25 Td (Fiber lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 526.25 Td (Fiber lasers use semiconductor lasers to pump a doped optical fiber to produce a laser beam. ) Tj ET Q q 0 0 0 rg BT 445.65 526.25 Td (The unique features of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (fiber laser make them suitable for producing high power) Tj ET Q q 0 0 0 rg BT 275.08 514.25 Td (, continuous wave laser beams. ) Tj ET Q q 0 0 0 rg BT 401.81 514.25 Td (W) Tj ET Q q 0 0 0 rg BT 410.45 514.25 Td (e introduced a multi kilowatt fiber ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (laser platform in fiscal 2015. Our fiber laser design has several unique features including a modular design for improved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (serviceability and diode bar based pumping. Due to packaging ef) Tj ET Q q 0 0 0 rg BT 309.74 490.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 341.29 490.25 Td (, diode bars reduce the overall cost of a fiber laser) Tj ET Q q 0 0 0 rg BT 540.37 490.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (Some of the most critical components inside a fiber laser include the gain fiber itself and the diodes providing the pump power) Tj ET Q q 0 0 0 rg BT 556.26 478.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 466.25 Td (e are well positioned as a fiber laser supplier since we are vertically integrated with respect to these key technologies; we use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (diode bars and fiber manufactured in-house. ) Tj ET Q q 0 0 0 rg BT 228.92 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 237.56 454.25 Td (e plan to continue to drive cost reduction in our diode laser pumps and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (demonstrate the scalability of the platform by moving up the power scale into the multi kilowatt regime. ) Tj ET Q q 0 0 0 rg BT 469.16 442.25 Td (This platform will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (address the lar) Tj ET Q q 0 0 0 rg BT 107.57 430.25 Td (ge growing high power metal cutting and joining market.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 410.25 Td (Gas lasers \(CO, CO) Tj ET Q BT /F3 10.00 Tf ET BT /F3 6.50 Tf ET q 0 0 0 rg BT 131.12 408.82 Td (2) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 134.37 410.25 Td (, Excimer) Tj ET Q q 0 0 0 rg BT 173.81 410.25 Td (, Ion\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 390.25 Td (The breadth of our gas laser portfolio is industry leading, encompassing CO, CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 396.71 388.82 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.96 390.25 Td (, excimer and ion laser technologies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 378.25 Td (Gas lasers derive their name from the use of one or more gases as a lasing medium. ) Tj ET Q q 0 0 0 rg BT 385.83 378.25 Td (They collectively span an extremely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.25 Td (diverse and useful emission range, from the very deep ultraviolet to the far infrared. ) Tj ET Q q 0 0 0 rg BT 387.48 366.25 Td (This diverse range of available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.25 Td (wavelengths, coupled with high optical output power) Tj ET Q q 0 0 0 rg BT 262.06 354.25 Td (, and an abundance of other attractive characteristics, makes gas lasers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.25 Td (extremely useful and popular for a variety of microelectronics, scientific, medical therapeutic and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.25 Td (applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (Optically Pumped Semiconductor Lasers \("OPSL"\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 290.25 Td (Our OPSL) Tj ET Q q 0 0 0 rg BT 116.13 290.25 Td ( platform is a surface emitting semiconductor laser that is ener) Tj ET Q q 0 0 0 rg BT 365.31 290.25 Td (gized or pumped by a semiconductor laser) Tj ET Q q 0 0 0 rg BT 534.15 290.25 Td (. ) Tj ET Q q 0 0 0 rg BT 538.97 290.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (use of optical pumping circumvents inherent power scaling limitations of electrically pumped lasers, enabling very high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (powered devices. ) Tj ET Q q 0 0 0 rg BT 121.36 266.25 Td (A) Tj ET Q q 0 0 0 rg BT 128.03 266.25 Td ( wide range of wavelengths can be achieved by varying the semiconductor materials used in the device and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.25 Td (changing the frequency of the laser beam using techniques common in solid state lasers. ) Tj ET Q q 0 0 0 rg BT 405.00 254.25 Td (The platform leverages high reliability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (technologies developed for telecommunications and produces a compact, rugged, high power) Tj ET Q q 0 0 0 rg BT 422.81 242.25 Td (, single-mode laser) Tj ET Q q 0 0 0 rg BT 498.07 242.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 222.25 Td (Our OPSL) Tj ET Q q 0 0 0 rg BT 116.13 222.25 Td ( products are well suited to a wide range of applications, including the bio-instrumentation, medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.25 Td (therapeutics and graphic arts and display markets. ) Tj ET Q q 0 0 0 rg BT 251.97 210.25 Td (W) Tj ET Q q 0 0 0 rg BT 260.61 210.25 Td (e continue to expand our ultraviolet version of the OPSL) Tj ET Q q 0 0 0 rg BT 487.13 210.25 Td ( platform called ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.25 Td (the Genesis, which was developed for the bio-instrumentation market.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (Semiconductor lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 158.25 Td (High power edge emitting semiconductor diode lasers use the same principles as widely-used CD and DVD lasers, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.25 Td (produce significantly higher power levels. ) Tj ET Q q 0 0 0 rg BT 220.88 146.25 Td (The advantages of this type of laser include smaller size, longer life, enhanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.25 Td (reliability and greater ef) Tj ET Q q 0 0 0 rg BT 146.16 134.25 Td (ficiency) Tj ET Q q 0 0 0 rg BT 177.71 134.25 Td (. ) Tj ET Q q 0 0 0 rg BT 182.53 134.25 Td (W) Tj ET Q q 0 0 0 rg BT 191.17 134.25 Td (e manufacture a wide range of discrete semiconductor laser products with wavelengths ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.25 Td (ranging from 650nm to over 1000nm and output powers ranging from 1W) Tj ET Q q 0 0 0 rg BT 346.71 122.25 Td ( to over 100W) Tj ET Q q 0 0 0 rg BT 403.28 122.25 Td (, with highly integrated products in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.25 Td (kW) Tj ET Q q 0 0 0 rg BT 64.26 110.25 Td ( range. ) Tj ET Q q 0 0 0 rg BT 93.78 110.25 Td (These products are available in a variety of industry standard form factors including the following: bare die, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.25 Td (packaged and fiber coupled single emitters and bars, monolithic stacks and fully integrated modules with microprocessor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.25 Td (controlled units that contain power supplies and active coolers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 66.25 Td (Our semiconductor lasers are used internally as the pump lasers in DPSS, fiber and OPSL) Tj ET Q q 0 0 0 rg BT 432.73 66.25 Td ( products that are manufactured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.25 Td (by us, as well as a wide variety of external medical, OEM, military and industrial applications, including aesthetic \(hair ) Tj ET Q endstream endobj 31 0 obj <>] /Rotate 0 /Contents 32 0 R>> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (removal, cosmetic dentistry\), graphic arts, counter measures, rangefinders, tar) Tj ET Q q 0 0 0 rg BT 361.09 742.10 Td (get designators, cladding, hardening and plastic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (welding.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (Ultrafast \("UF"\) Lasers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (Ultrafast lasers are lasers generating light pulses with durations of a few femtoseconds \(10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 435.84 693.73 Td (-15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.77 690.10 Td ( seconds\) to a few tens of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 Td (picoseconds \(10) Tj ET Q BT /F1 8.00 Tf ET BT /F1 5.20 Tf ET q 0 0 0 rg BT 114.71 681.73 Td (-1) Tj ET Q BT /F1 5.20 Tf ET q 0 0 0 rg BT 118.85 681.73 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 678.10 Td ( seconds\). ) Tj ET Q q 0 0 0 rg BT 163.75 678.10 Td (These types of lasers are used for medical, advanced microelectronics and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (applications as well as scientific research. UF laser oscillators generate a train of pulses at 50-100 MHz, with peak powers of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (tens of kilowatts, and UF laser amplifiers generate pulses at 1-2000 kHz, with peak powers up to several ) Tj ET Q q 0 0 0 rg BT 470.26 654.10 Td (T) Tj ET Q q 0 0 0 rg BT 475.67 654.10 Td (erawatts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 634.10 Td (The extremely short duration of UF laser pulses enables temporally resolving fast events like the dynamics of atoms or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (electrons. In addition, the high peak power enables so-called non-linear ef) Tj ET Q q 0 0 0 rg BT 345.82 622.10 Td (fects where several photons can be absorbed by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (molecule at the same time. ) Tj ET Q q 0 0 0 rg BT 159.22 610.10 Td (This type of process enables applications like multi-photon excitation microscopy or UF ablation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (materials with high precision and minimal thermal damage. ) Tj ET Q q 0 0 0 rg BT 290.59 598.10 Td (The use of our ultrafast lasers in applications outside science has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (been growing rapidly over the last several years, particularly in microelectronics and materials processing applications. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (SALES ) Tj ET Q q 0 0 0 rg BT 83.63 566.10 Td (AND MARKETING) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 546.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 546.10 Td (e primarily market our products in the United States through a direct sales force. Our foreign sales are made principally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (to customers in South Korea, Japan, Germany) Tj ET Q q 0 0 0 rg BT 233.20 534.10 Td (, China and other European and ) Tj ET Q q 0 0 0 rg BT 361.77 534.10 Td (Asia-Pacific countries. ) Tj ET Q q 0 0 0 rg BT 455.17 534.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.81 534.10 Td (e sell internationally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (through direct sales personnel located in Canada, France, Germany) Tj ET Q q 0 0 0 rg BT 317.59 522.10 Td (, Italy) Tj ET Q q 0 0 0 rg BT 340.26 522.10 Td (, Japan, the Netherlands, China, South Korea, ) Tj ET Q q 0 0 0 rg BT 525.04 522.10 Td (T) Tj ET Q q 0 0 0 rg BT 530.45 522.10 Td (aiwan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 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 50.00 498.10 Td (accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.19 498.10 Td (73%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.52 498.10 Td ( of our total net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.04 498.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.04 498.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.04 498.10 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.38 498.10 Td ( of our total net sales in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.90 498.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.90 498.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 498.10 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.67 498.10 Td ( of our total net sales in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 486.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 486.10 Td (. Sales made to independent representatives and distributors are generally priced in U.S. dollars. ) Tj ET Q q 0 0 0 rg BT 480.16 486.10 Td (A) Tj ET Q q 0 0 0 rg BT 486.83 486.10 Td ( lar) Tj ET Q q 0 0 0 rg BT 499.69 486.10 Td (ge portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 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 50.00 462.10 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 484.42 462.10 Td (fs, export and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.10 Td (import controls and political instability) Tj ET Q q 0 0 0 rg BT 205.44 450.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 430.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.51 430.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.95 430.10 Td ( customer) Tj ET Q q 0 0 0 rg BT 159.71 430.10 Td (, ) Tj ET Q q 0 0 0 rg BT 164.16 430.10 Td (Advanced Process Systems Corporation, who contributed more than 10% of revenue during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 418.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 418.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 418.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.44 418.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.44 418.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 398.10 Td (T) Tj ET Q q 0 0 0 rg BT 79.41 398.10 Td (o support our sales ef) Tj ET Q q 0 0 0 rg BT 164.77 398.10 Td (forts we maintain and continue to invest in a number of applications centers around the world, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (where our applications experts work closely with customers on developing laser processes to meet their manufacturing needs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (The applications span a wide range, but are mostly centered around the materials processing and microelectronics markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (Locations include several facilities in the US, Europe and ) Tj ET Q q 0 0 0 rg BT 282.15 362.10 Td (Asia.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 342.10 Td (e maintain customer support and field service staf) Tj ET Q q 0 0 0 rg BT 281.56 342.10 Td (f in major markets within the United States, Europe, Japan, China, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (South Korea, ) Tj ET Q q 0 0 0 rg BT 105.09 330.10 Td (T) Tj ET Q q 0 0 0 rg BT 110.50 330.10 Td (aiwan and other ) Tj ET Q q 0 0 0 rg BT 176.31 330.10 Td (Asia-Pacific countries. ) Tj ET Q q 0 0 0 rg BT 269.71 330.10 Td (This or) Tj ET Q q 0 0 0 rg BT 298.13 330.10 Td (ganization works closely with customers, customer groups and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (independent representatives in servicing equipment, training customers to use our products and exploring additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (applications of our technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 286.10 Td (e typically provide parts and service warranties on our lasers, laser) Tj ET Q q 0 0 0 rg BT 348.73 286.10 Td (-based systems, optical and laser components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (related accessories and services. ) Tj ET Q q 0 0 0 rg BT 181.14 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 189.78 274.10 Td (arranties on some of our products and services may be shorter or longer than one year) Tj ET Q q 0 0 0 rg BT 532.17 274.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 262.10 Td (arranty reserves, as reflected on our consolidated balance sheets, have generally been suf) Tj ET Q q 0 0 0 rg BT 413.85 262.10 Td (ficient to cover product warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (repair and replacement costs. ) Tj ET Q q 0 0 0 rg BT 168.93 250.10 Td (The weighted average warranty period covered is approximately 15months.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (RESEARCH ) Tj ET Q q 0 0 0 rg BT 107.51 230.10 Td (AND DEVELOPMENT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 210.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 210.10 Td (e are constantly developing and introducing new products as well as improving and refining existing products to better ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (serve the markets we participate in. Our development ef) Tj ET Q q 0 0 0 rg BT 273.90 198.10 Td (forts are focused on designing and developing products, services and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (solutions that anticipate customers' changing needs and emer) Tj ET Q q 0 0 0 rg BT 293.50 186.10 Td (ging technological trends. Our ef) Tj ET Q q 0 0 0 rg BT 425.22 186.10 Td (forts are also focused on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (identifying the areas where we believe we can make valuable contributions. Research and development expenditures for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 162.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.43 162.10 Td ($81.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.32 162.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 162.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.98 162.10 Td ( of net sales compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.17 162.10 Td ($79.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.06 162.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.89 162.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.72 162.10 Td ( of net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.02 162.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.02 162.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.46 162.10 Td ($82.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 150.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.72 150.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.55 150.10 Td ( of net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.85 150.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.85 150.10 Td (. ) Tj ET Q q 0 0 0 rg BT 233.67 150.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.31 150.10 Td (e work closely with customers, both individually and through our sponsored ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (seminars, to develop products to meet customer application and performance needs. In addition, we are working with leading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (research and educational institutions to develop new photonics based solutions.) Tj ET Q endstream endobj 33 0 obj <>] /Rotate 0 /Contents 34 0 R>> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (14) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (MANUF) Tj ET Q q 0 0 0 rg BT 86.47 742.25 Td (ACTURING) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Strategies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (One of our core manufacturing strategies is to tightly control our supply of key parts, components, sub-assemblies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (outsourcing partners. ) Tj ET Q q 0 0 0 rg BT 136.74 690.25 Td (W) Tj ET Q q 0 0 0 rg BT 145.38 690.25 Td (e primarily utilize vertical integration when we have proprietary internal capabilities that are not cost-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 678.25 Td (fectively available from external sources. ) Tj ET Q q 0 0 0 rg BT 225.11 678.25 Td (W) Tj ET Q q 0 0 0 rg BT 233.75 678.25 Td (e believe this is essential to maintain high quality products and enable rapid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (development and deployment of new products and technologies. ) Tj ET Q q 0 0 0 rg BT 310.03 666.25 Td (W) Tj ET Q q 0 0 0 rg BT 318.67 666.25 Td (e provide customers with 24-hour technical expertise and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (quality that is International Or) Tj ET Q q 0 0 0 rg BT 170.90 654.25 Td (ganization for Standardization \("ISO"\) certified at our principal manufacturing sites.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 634.25 Td (Committed to quality and customer satisfaction, we design and produce many of our own components and sub-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (assemblies in order to retain quality and performance control. ) Tj ET Q q 0 0 0 rg BT 298.62 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 307.26 622.25 Td (e have also outsourced certain components, sub-assemblies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (finished goods where we can maintain our high quality standards while improving our cost structure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.25 Td (As part of our strategy to increase our market share and customer support in ) Tj ET Q q 0 0 0 rg BT 380.02 590.25 Td (Asia as well as our continuing ef) Tj ET Q q 0 0 0 rg BT 510.92 590.25 Td (forts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.25 Td (manage costs, we have transferred the production of additional products into both of our Singapore and Malaysia factories. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.25 Td (addition, we expanded our repair activities in our China 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 been increasing our sourcing of materials from ) Tj ET Q q 0 0 0 rg BT 320.47 542.25 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 acquisition of Lumera. In fiscal 2015, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (increased our vertical integration capabilities with the asset acquisition of the ) Tj ET Q q 0 0 0 rg BT 361.10 506.25 Td (T) Tj ET Q q 0 0 0 rg BT 366.86 506.25 Td (insley Optics business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (Communications Corporation.) 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 have designed and implemented proprietary manufacturing tools, equipment and techniques in an ef) Tj ET Q q 0 0 0 rg BT 489.55 474.25 Td (fort to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (products that dif) Tj ET Q q 0 0 0 rg BT 115.36 462.25 Td (ferentiate us from our competitors. ) Tj ET Q q 0 0 0 rg BT 256.80 462.25 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 50.00 450.25 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 50.00 438.25 Td (semiconductor and optically pumped semiconductor laser product family) Tj ET Q q 0 0 0 rg BT 341.77 438.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 418.25 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 50.00 406.25 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 406.25 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 50.00 394.25 Td (the manufacture of our products from sole source or limited source suppliers. ) Tj ET Q q 0 0 0 rg BT 361.12 394.25 Td (W) Tj ET Q q 0 0 0 rg BT 369.76 394.25 Td (e also purchase assemblies and turnkey ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (solutions from contract manufacturers based on our proprietary designs. ) Tj ET Q q 0 0 0 rg BT 340.29 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 348.93 382.25 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 50.00 370.25 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 74.00 350.25 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 550.70 350.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td ( "W) Tj ET Q q 0 0 0 rg BT 75.22 338.25 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 50.00 326.25 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 50.00 314.25 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 293.08 314.25 Td (fect our business.") Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 Td (Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 274.25 Td (Our products are manufactured at our sites in Santa Clara, Sunnyvale and Richmond, California; ) Tj ET Q q 0 0 0 rg BT 462.60 274.25 Td (W) Tj ET Q q 0 0 0 rg BT 471.64 274.25 Td (ilsonville, Oregon; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (East Hanover) Tj ET Q q 0 0 0 rg BT 103.75 262.25 Td (, New Jersey; Bloomfield, Connecticut; Salem, New Hampshire; Lbeck, Germany; Gttingen, Germany; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (Kaiserslautern, Germany; Glasgow) Tj ET Q q 0 0 0 rg BT 190.14 250.25 Td (, Scotland; ) Tj ET Q q 0 0 0 rg BT 235.04 250.25 Td (Y) Tj ET Q q 0 0 0 rg BT 241.26 250.25 Td (ongIn-Si, South Korea; Kallang Sector) Tj ET Q q 0 0 0 rg BT 396.11 250.25 Td (, Singapore; and Penang, Malaysia. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (addition, we also use contract manufacturers for the production of certain assemblies and turnkey solutions. Our ion gas lasers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (a portion of our DPSS lasers that are used in microelectronics, scientific research and materials processing applications, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (semiconductor lasers, OPS lasers, fiber lasers and ultrafast scientific lasers are manufactured at our Santa Clara, California site. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (Our laser diode module products, laser instrumentation products, test and measurement equipment products are manufactured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (in ) Tj ET Q q 0 0 0 rg BT 60.10 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 69.14 190.25 Td (ilsonville, Oregon. ) Tj ET Q q 0 0 0 rg BT 146.17 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 154.80 190.25 Td (e manufacture exotic crystals in East Hanover) Tj ET Q q 0 0 0 rg BT 338.22 190.25 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 50.00 178.25 Td (manufactured in our Salem, New Hampshire facility) Tj ET Q q 0 0 0 rg BT 259.00 178.25 Td (. Our CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 295.95 176.82 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.82 178.25 Td (and CO gas lasers are manufactured in Bloomfield, Connecticut. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 166.25 Td (e manufacture a portion of our DPSS lasers used in microelectronics and OEM components and instrumentation applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (in Lbeck, Germany) Tj ET Q q 0 0 0 rg BT 131.82 154.25 Td (. ) Tj ET Q q 0 0 0 rg BT 136.64 154.25 Td (W) Tj ET Q q 0 0 0 rg BT 145.28 154.25 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 50.00 142.25 Td (instrumentation and materials processing applications in Kaiserslautern, Germany) Tj ET Q q 0 0 0 rg BT 377.04 142.25 Td (. Our excimer gas laser products are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (manufactured in Gttingen, Germany) Tj ET Q q 0 0 0 rg BT 199.30 130.25 Td (. ) Tj ET Q q 0 0 0 rg BT 204.12 130.25 Td (W) Tj ET Q q 0 0 0 rg BT 212.76 130.25 Td (e refurbish excimer tubes at our manufacturing site in South Korea. ) Tj ET Q q 0 0 0 rg BT 484.72 130.25 Td (W) Tj ET Q q 0 0 0 rg BT 493.35 130.25 Td (e manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (the fiber) Tj ET Q q 0 0 0 rg BT 83.39 118.25 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 559.00 118.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 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 94.25 Td (lasers. Our facility in Richmond, California manufactures lar) Tj ET Q q 0 0 0 rg BT 293.35 94.25 Td (ge form factor optics for our Linebeam excimer laser annealing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (systems. ) Tj ET Q q 0 0 0 rg BT 86.49 82.25 Td (W) Tj ET Q q 0 0 0 rg BT 95.13 82.25 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 70.25 Td (are continuing to transfer additional product manufacturing to Singapore and Malaysia as part of our worldwide manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (cost reduction strategy) Tj ET Q q 0 0 0 rg BT 139.88 58.25 Td (. ) Tj ET Q endstream endobj 35 0 obj <>] /Rotate 0 /Contents 36 0 R>> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (INTELLECTUAL) Tj ET Q q 0 0 0 rg BT 128.92 742.25 Td ( PROPER) Tj ET Q q 0 0 0 rg BT 172.17 742.25 Td (TY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 722.25 Td (e rely on a combination of patent, copyright, trademark and trade secret laws and restrictions on disclosure to protect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (our intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 176.36 710.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.80 710.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.51 710.25 Td (, we held approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.64 710.25 Td (484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.64 710.25 Td ( U.S. and foreign patents, which expire from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.25 Td (2015 through 2032 \(depending on the payment of maintenance fees\) and we have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.76 698.25 Td (139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.76 698.25 Td ( additional pending patent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (applications that have been filed. ) Tj ET Q q 0 0 0 rg BT 184.21 686.25 Td (The issued patents cover various products in all of the major markets that we serve.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 666.25 Td (For a discussion of the importance to our business of, and the risks attendant to intellectual property rights, see "Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (Factors" in Item 1A) Tj ET Q q 0 0 0 rg BT 128.79 654.25 Td ( "W) Tj ET Q q 0 0 0 rg BT 156.51 654.25 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 479.83 654.25 Td (fect our competitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (advantage" and "W) Tj ET Q q 0 0 0 rg BT 126.77 642.25 Td (e may) Tj ET Q q 0 0 0 rg BT 150.28 642.25 Td (, in the future, be subject to claims or litigation from third parties, for claims of infringement of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (proprietary rights or to determine the scope and validity of our proprietary rights or the proprietary rights of competitors or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (other rights holders. ) Tj ET Q q 0 0 0 rg BT 132.58 618.25 Td (These claims could result in costly litigation and the diversion of our technical and management personnel. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.25 Td (Adverse resolution of litigation may harm our operating results or financial condition.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (COMPETITION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 566.25 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 442.92 566.25 Td (W) Tj ET Q q 0 0 0 rg BT 451.56 566.25 Td (e compete against a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.25 Td (number of companies including CVI Melles Griot, GSI Group,Inc., IPG Photonics Corporation, Lumentum Holdings Inc., ) 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 (2015) 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 ($309.5 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 ($328.3 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 (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.26 454.25 Td (year) Tj ET Q q 0 0 0 rg BT 184.77 454.25 Td (-end. By segment, backlog for SLS was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.13 454.25 Td ($219.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.02 454.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.46 454.25 Td ($253.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.35 454.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 536.02 454.25 Td (, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 442.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 442.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.59 442.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.59 442.25 Td ( year) Tj ET Q q 0 0 0 rg BT 153.10 442.25 Td (-ends. Backlog for CLC was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.75 442.25 Td ($90.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.64 442.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.08 442.25 Td ($75.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.97 442.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 449.63 442.25 Td (, at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.50 442.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.50 442.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.94 442.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.94 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (year) Tj ET Q q 0 0 0 rg BT 67.01 430.25 Td (-ends. ) Tj ET Q q 0 0 0 rg BT 93.49 430.25 Td (The decrease in SLS backlog from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.71 430.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.71 430.25 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.64 430.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.64 430.25 Td ( year) Tj ET Q q 0 0 0 rg BT 355.15 430.25 Td (-end is primarily due to timing of lar) Tj ET Q q 0 0 0 rg BT 501.32 430.25 Td (ge excimer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (laser annealing system shipments net of new orders for the flat panel display market, which explains the decrease in overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (company backlog as well. Orders used to compute backlog are generally cancelable without substantial penalties. Historically) Tj ET Q q 0 0 0 rg BT 552.80 406.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (the rate of cancellation experienced by us has not been significant though we cannot guarantee that cancellations will not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (increase in the future.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (SEASONALITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 342.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 342.25 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 50.00 330.25 Td (our fiscal year due to the impact of time of) Tj ET Q q 0 0 0 rg BT 220.59 330.25 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 50.00 318.25 Td (year) Tj ET Q q 0 0 0 rg BT 67.01 318.25 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 50.00 306.25 Td (revenues have ranged 2%-12% below the fourth quarter of the prior fiscal years. ) Tj ET Q q 0 0 0 rg BT 373.58 306.25 Td (This historical pattern should not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.25 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 50.00 274.25 Td (EMPLOYEES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 254.25 Td (As of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.60 254.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.60 254.25 Td (year) Tj ET Q q 0 0 0 rg BT 162.11 254.25 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.97 254.25 Td (2,586) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.47 254.25 Td ( employees. ) Tj ET Q q 0 0 0 rg BT 288.18 254.25 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.23 254.25 Td (407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.23 254.25 Td ( of our employees are involved in research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.25 Td (development; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.93 242.25 Td (1,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.43 242.25 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 515.41 242.25 Td (607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.41 242.25 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.25 Td (employees are involved in sales, order administration, marketing, finance, information technology) Tj ET Q q 0 0 0 rg BT 442.01 230.25 Td (, general management and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.25 Td (other administrative functions. Our success will depend in lar) Tj ET Q q 0 0 0 rg BT 295.59 218.25 Td (ge part upon our ability to attract and retain employees. ) Tj ET Q q 0 0 0 rg BT 519.50 218.25 Td (W) Tj ET Q q 0 0 0 rg BT 528.14 218.25 Td (e face ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 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 50.00 194.25 Td (or) Tj ET Q q 0 0 0 rg BT 58.15 194.25 Td (ganizations. ) Tj ET Q q 0 0 0 rg BT 108.51 194.25 Td (W) Tj ET Q q 0 0 0 rg BT 117.15 194.25 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 50.00 174.25 Td (ACQUISITIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 154.25 Td (In July 2015, we acquired certain assets of Raydiance, Inc. \("Raydiance"\) for approximately $5.0 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (transaction costs. Raydiance had manufactured complete tools and lasers for ultrafast processing systems and subsystems in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 235.04 130.25 Td (The Raydiance assets have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 98.25 Td (In July 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 330.85 98.25 Td (T) Tj ET Q q 0 0 0 rg BT 336.61 98.25 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 404.78 98.25 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.25 Td (Communications Corporation for approximately $4.3 million, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 413.09 86.25 Td (T) Tj ET Q q 0 0 0 rg BT 418.85 86.25 Td (insley is a specialized manufacturer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.25 Td (of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 473.70 74.25 Td (. ) Tj ET Q q 0 0 0 rg BT 478.52 74.25 Td (T) Tj ET Q q 0 0 0 rg BT 484.27 74.25 Td (insley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.25 Td (manufactures the lar) Tj ET Q q 0 0 0 rg BT 131.45 62.25 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 381.46 62.25 Td (T) Tj ET Q q 0 0 0 rg BT 387.21 62.25 Td (insley has been included in our Specialty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.25 Td (Lasers and Systems segment.) Tj ET Q endstream endobj 37 0 obj <>] /Rotate 0 /Contents 38 0 R>> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 742.10 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 50.00 730.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.26 730.10 Td ($51.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 730.10 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 50.00 718.10 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 77.00 698.10 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 50.00 686.10 Td (\("Innolight"\) for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.41 686.10 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.30 686.10 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 50.00 674.10 Td (for an emer) Tj ET Q q 0 0 0 rg BT 95.90 674.10 Td (ging class of commercial, sub-nanosecond lasers for microelectronics manufacturing. Its semiconductor) Tj ET Q q 0 0 0 rg BT 511.12 674.10 Td (-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 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 50.00 650.10 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 50.00 638.10 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 618.10 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 50.00 606.10 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 50.00 586.10 Td (GOVERNMENT) Tj ET Q q 0 0 0 rg BT 123.71 586.10 Td ( REGULA) Tj ET Q q 0 0 0 rg BT 168.25 586.10 Td (TION) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (Environmental regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 546.10 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 50.00 534.10 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 50.00 522.10 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 459.59 522.10 Td (Agency) Tj ET Q q 0 0 0 rg BT 490.04 522.10 Td (. Comparable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 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 50.00 498.10 Td (changes closely) Tj ET Q q 0 0 0 rg BT 112.38 498.10 Td (. ) Tj ET Q q 0 0 0 rg BT 117.20 498.10 Td (W) Tj ET Q q 0 0 0 rg BT 125.84 498.10 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 50.00 486.10 Td (compliance with those regulations will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 326.94 486.10 Td (fect on our capital expenditures, earnings and competitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.10 Td (and financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 454.10 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 50.00 442.10 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 50.00 430.10 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 50.00 418.10 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 72.50 398.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 398.10 Td (e may face the potential of increasing complexity in our product designs and procurement operations due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (evolving nature of product compliance standards. ) Tj ET Q q 0 0 0 rg BT 250.03 386.10 Td (Those standards may impact the material composition of our products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (entering specific markets. Such regulations went into ef) Tj ET Q q 0 0 0 rg BT 272.53 374.10 Td (fect in the European Union \("EU"\) in 2006, \(The Restriction of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (Hazardous Substances Directive \(RoHS\)\) and 2007 \(Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 363.26 362.10 Td (Authorisation and Restriction of Chemicals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (\(REACH\)\), and China in 2007 \(Management Methods for Controlling Pollution Caused by Electronic Information Products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (Regulation \(China-RoHS\)\), and the US Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 261.18 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 269.82 338.10 Td (all Street Reform and Consumer Protection ) Tj ET Q q 0 0 0 rg BT 444.79 338.10 Td (Act of 2010. Furthermore, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (we could face costs and liabilities in connection with product take-back legislation. Beginning in 2006, the EU ) Tj ET Q q 0 0 0 rg BT 494.99 326.10 Td (W) Tj ET Q q 0 0 0 rg BT 503.62 326.10 Td (aste Electrical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (and Electronic Equipment Directive made producers of electrical goods financially responsible for specified collection, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (recycling, treatment and disposal of past and future covered products. Similar laws are now pending in various jurisdictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (around the world, including the United States.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (Environmental liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 250.10 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 504.15 250.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (pollutants and the management and disposal of hazardous substances. ) Tj ET Q q 0 0 0 rg BT 330.49 238.10 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 50.00 226.10 Td (we could incur substantial costs, including remediation costs. ) Tj ET Q q 0 0 0 rg BT 297.55 226.10 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 50.00 214.10 Td (are dif) Tj ET Q q 0 0 0 rg BT 75.63 214.10 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 50.00 202.10 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 382.79 202.10 Td (, the complexity of the site, site geology) Tj ET Q q 0 0 0 rg BT 542.39 202.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (nature and extent of contamination, the type of remedy) Tj ET Q q 0 0 0 rg BT 268.99 190.10 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 50.00 178.10 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 74.00 158.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 158.10 Td (e further discuss the impact of environmental regulation under "Risk Factors" in Item 1A) Tj ET Q q 0 0 0 rg BT 438.22 158.10 Td ( "Compliance or the failure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 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 50.00 126.10 Td (SEGMENT) Tj ET Q q 0 0 0 rg BT 99.83 126.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 150.47 126.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 106.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 106.10 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 94.10 Td (Components \("CLC"\). ) Tj ET Q q 0 0 0 rg BT 142.15 94.10 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 82.10 Td (and manufactures configurable, advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 320.24 82.10 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 70.10 Td (government programs and OEM components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 351.70 70.10 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 58.10 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 58.10 Td (While both segments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (work to deliver cost-ef) Tj ET Q q 0 0 0 rg BT 140.62 46.10 Td (fective photonics solutions, CLC focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 457.60 46.10 Td (fered in set ) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (configurations. ) Tj ET Q q 0 0 0 rg BT 112.58 742.10 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 50.00 730.10 Td (repairs are based upon advanced replacement and depot \(i.e.,factory\) repair) Tj ET Q q 0 0 0 rg BT 352.91 730.10 Td (. CLC's primary markets include materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 698.10 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 50.00 686.10 Td (units have dedicated engineering, manufacturing, product business management and product line management functions. ) Tj ET Q q 0 0 0 rg BT 535.41 686.10 Td (A) Tj ET Q q 0 0 0 rg BT 542.08 686.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (small portion of our outside revenue is attributable to projects and recently developed products for which a segment has not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (been determined. ) Tj ET Q q 0 0 0 rg BT 121.18 662.10 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 488.40 662.10 Td (, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (corporate costs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 106.12 630.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 156.76 630.10 Td (TION ) Tj ET Q q 0 0 0 rg BT 184.27 630.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 219.65 630.10 Td ( FOREIGN ) Tj ET Q q 0 0 0 rg BT 270.77 630.10 Td (AND DOMESTIC OPERA) Tj ET Q q 0 0 0 rg BT 386.14 630.10 Td (TIONS ) Tj ET Q q 0 0 0 rg BT 419.21 630.10 Td (AND EXPOR) Tj ET Q q 0 0 0 rg BT 478.03 630.10 Td (T) Tj ET Q q 0 0 0 rg BT 484.52 630.10 Td ( SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 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 399.73 610.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.73 610.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.73 610.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.73 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.17 610.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.17 610.10 Td (, is set forth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 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 50.00 586.10 Td (annual report.) Tj ET Q endstream endobj 41 0 obj <>] /Rotate 0 /Contents 42 0 R>> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (ITEM 1A. RISK F) Tj ET Q q 0 0 0 rg BT 128.21 742.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 149.14 742.25 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 52.00 722.25 Td (Y) Tj ET Q q 0 0 0 rg BT 56.64 722.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 111.27 722.25 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 49.50 710.25 Td (materially affect our business, r) Tj ET Q q 0 0 0 rg BT 176.62 710.25 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 49.50 698.25 Td (decline materially or cause our actual r) Tj ET Q q 0 0 0 rg BT 208.54 698.25 Td (esults to differ materially fr) Tj ET Q q 0 0 0 rg BT 318.17 698.25 Td (om those expected or those expr) Tj ET Q q 0 0 0 rg BT 446.37 698.25 Td (essed in any forwar) Tj ET Q q 0 0 0 rg BT 524.60 698.25 Td (d-) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (looking statements made by us. These risks ar) Tj ET Q q 0 0 0 rg BT 234.94 686.25 Td (e not exclusive, and additional risks to which we ar) Tj ET Q q 0 0 0 rg BT 440.10 686.25 Td (e subject include, but ar) Tj ET Q q 0 0 0 rg BT 536.10 686.25 Td (e not ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (limited to, the factors mentioned under Forwar) Tj ET Q q 0 0 0 rg BT 243.28 674.25 Td (d-Looking Statements and the risk of our businesses described elsewher) Tj ET Q q 0 0 0 rg BT 535.94 674.25 Td (e in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (this annual r) Tj ET Q q 0 0 0 rg BT 100.25 662.25 Td (eport. ) Tj ET Q q 0 0 0 rg BT 126.17 662.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 175.06 662.25 Td (, these risks and uncertainties described her) Tj ET Q q 0 0 0 rg BT 351.05 662.25 Td (ein ar) Tj ET Q q 0 0 0 rg BT 374.29 662.25 Td (e not the only ones facing us. Other events ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (that we do not curr) Tj ET Q q 0 0 0 rg BT 125.79 650.25 Td (ently anticipate or that we curr) Tj ET Q q 0 0 0 rg BT 250.13 650.25 Td (ently deem immaterial also may affect our business, r) Tj ET Q q 0 0 0 rg BT 463.89 650.25 Td (esults of operations or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (financial condition.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 49.5 616.68505859375 m 297.9130859375 616.68505859375 l s q 0 0 0 rg BT 49.50 618.25 Td (BUSINESS ENVIRONMENT) Tj ET Q q 0 0 0 rg BT 177.41 618.25 Td ( ) Tj ET Q q 0 0 0 rg BT 179.35 618.25 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 248.18 618.25 Td (Y) Tj ET Q q 0 0 0 rg BT 255.03 618.25 Td ( ) Tj ET Q q 0 0 0 rg BT 257.35 618.25 Td (TRENDS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 598.25 Td ( operating r) Tj ET Q q 0 0 0 rg BT 117.46 598.25 Td (esults, including net sales, net income \(loss\) and adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 398.89 598.25 Td ( in dollars and as a per) Tj ET Q q 0 0 0 rg BT 495.96 598.25 Td (centage of net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (sales, as well as our) Tj ET Q q 0 0 0 rg BT 131.82 586.25 Td ( stock price have varied in the past, and our) Tj ET Q q 0 0 0 rg BT 318.31 586.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 342.85 586.25 Td (e operating r) Tj ET Q q 0 0 0 rg BT 397.65 586.25 Td (esults will continue to be subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (quarterly and annual fluctuations based upon numer) Tj ET Q q 0 0 0 rg BT 275.48 574.25 Td (ous factors, including those discussed in this Item 1A) Tj ET Q q 0 0 0 rg BT 499.68 574.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (thr) Tj ET Q q 0 0 0 rg BT 62.65 562.25 Td (oughout this r) Tj ET Q q 0 0 0 rg BT 122.48 562.25 Td (eport. Our) Tj ET Q q 0 0 0 rg BT 167.85 562.25 Td ( stock price will continue to be subject to daily variations as well. Our) Tj ET Q q 0 0 0 rg BT 463.77 562.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 488.31 562.25 Td (e operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.76 550.25 Td (esults and stock price may not follow any past tr) Tj ET Q q 0 0 0 rg BT 259.41 550.25 Td (ends or) Tj ET Q q 0 0 0 rg BT 290.62 550.25 Td ( meet our) Tj ET Q q 0 0 0 rg BT 330.98 550.25 Td ( guidance and expectations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.25 Td (Our net sales and operating results, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 321.11 530.25 Td ( percentage, net income \(loss\) and operating expenses, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 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 49.50 506.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 506.25 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 536.96 506.25 Td (ficult ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (to predict, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 474.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 474.25 Td (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 85.50 462.25 Td (we serve;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 442.25 Td (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 67.50 422.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.25 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 85.50 410.25 Td (limited source components, in a timely manner) Tj ET Q q 0 0 0 rg BT 273.11 410.25 Td (, in the quantity) Tj ET Q q 0 0 0 rg BT 335.23 410.25 Td (, quality and prices desired;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 390.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.25 Td (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 67.50 370.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 370.25 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 67.50 350.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 350.25 Td (rescheduling of shipments or cancellation of orders by our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 330.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 330.25 Td (fluctuations in our product mix;) 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 (the ability of our customers' other suppliers to provide suf) Tj ET Q q 0 0 0 rg BT 316.80 310.25 Td (ficient material to support our customers' products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 290.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.25 Td (currency fluctuations and stability) Tj ET Q q 0 0 0 rg BT 221.20 290.25 Td (, in particular the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 368.83 290.25 Td (Y) Tj ET Q q 0 0 0 rg BT 375.05 290.25 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 461.79 290.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.43 290.25 Td (on, the Chinese ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 278.25 Td (Renminbi and the US dollar as compared to other currencies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 258.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 258.25 Td (commodity pricing;) 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 (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 85.50 226.25 Td (markets, pricing pressures and other competitive factors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 206.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 206.25 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 85.50 194.25 Td (defects;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 174.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 174.25 Td (our ability to manage our manufacturing capacity and that of our suppliers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.25 Td (our reliance on contract manufacturing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 134.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 134.25 Td (the rate of market acceptance of our new products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 114.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 114.25 Td (the ability of our customers to pay for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 94.25 Td (expenses associated with acquisition-related activities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 74.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 74.25 Td (seasonal sales trends;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 54.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 54.25 Td (access to applicable credit markets by us, our customers and their end customers;) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) Tj ET Q BT /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 (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 85.50 730.10 Td (products by us or our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 710.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 710.10 Td (our ability to control expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 690.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 690.10 Td (the level of capital spending of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 Td (potential excess and/or obsolescence of our inventory;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 650.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 650.10 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 85.50 638.10 Td (and business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 618.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 618.10 Td (costs related to acquisitions of technology or businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 598.10 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 67.50 578.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 578.10 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 67.50 558.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 558.10 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 85.50 546.10 Td (universities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 526.10 Td (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 67.50 506.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 506.10 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 67.50 486.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 486.10 Td (changes in policy) Tj ET Q q 0 0 0 rg BT 154.83 486.10 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 85.50 474.10 Td (standards;) 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 (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 67.50 434.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 434.10 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 67.50 414.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 414.10 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 85.50 402.10 Td (laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 382.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 382.10 Td (impact of government economic policies on macroeconomic conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 362.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 362.10 Td (costs and expenses from litigation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 342.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 342.10 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 85.50 330.10 Td (business;) 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 (government support of alternative ener) Tj ET Q q 0 0 0 rg BT 240.82 310.10 Td (gy industries, such as solar;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 290.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.10 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 85.50 278.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 258.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 258.10 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 72.00 238.10 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 49.50 226.10 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 493.37 226.10 Td (, the adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 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 49.50 202.10 Td (compensate for the shortfall. ) Tj ET Q q 0 0 0 rg BT 166.22 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 174.86 202.10 Td (e also base our manufacturing on our forecasted product mix for the quarter) Tj ET Q q 0 0 0 rg BT 476.98 202.10 Td (. If the actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 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 483.69 190.10 Td (, which would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (result in delays in the shipment of our products. ) Tj ET Q q 0 0 0 rg BT 242.25 178.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 291.58 178.10 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 49.50 166.10 Td (higher mar) Tj ET Q q 0 0 0 rg BT 92.91 166.10 Td (gin products, can cause significant fluctuations in quarterly operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 146.10 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 406.13 146.10 Td (-to-quarter and year) Tj ET Q q 0 0 0 rg BT 485.33 146.10 Td (-to-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (comparisons of our historical operating results may not be meaningful. ) Tj ET Q q 0 0 0 rg BT 334.90 134.10 Td (Y) Tj ET Q q 0 0 0 rg BT 341.12 134.10 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 49.50 122.10 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 49.50 110.10 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 98.10 Td (years, U.S. and global equity markets have experienced significant price and volume fluctuations that have af) Tj ET Q q 0 0 0 rg BT 486.95 98.10 Td (fected the stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (prices of many technology companies both in and outside our industry) Tj ET Q q 0 0 0 rg BT 330.46 86.10 Td (. ) Tj ET Q q 0 0 0 rg BT 335.28 86.10 Td (There has not always been a direct correlation between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (this volatility and the performance of particular companies subject to these stock price fluctuations. ) Tj ET Q q 0 0 0 rg BT 448.91 74.10 Td (These factors, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (general economic and political conditions or investors' concerns regarding the credibility of corporate financial statements, may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.10 Td (have a material adverse ef) Tj ET Q q 0 0 0 rg BT 153.70 50.10 Td (fect on the market price of our stock in the future.) Tj ET Q endstream endobj 45 0 obj <>] /Rotate 0 /Contents 46 0 R>> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (20) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 742.25 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 /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 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 49.50 718.25 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 299.88 718.25 Td (fect our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 698.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 698.25 Td (e currently purchase several key components and materials used in the manufacture of our products from sole source or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (limited source suppliers, both internal and external. Our failure to timely receive these key components and materials could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (cause delays in the shipment of our products. Some of these suppliers are relatively small private companies that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (discontinue their operations at any time and which may be particularly susceptible to prevailing economic conditions. Some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (our suppliers are located in regions which may be susceptible to natural disasters, such as the flooding in ) Tj ET Q q 0 0 0 rg BT 470.60 650.25 Td (Thailand and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (earthquake, tsunami and resulting nuclear disaster in Japan and severe flooding and power loss in the Eastern part of the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (States in recent years. Some may be vulnerable to man-made disasters, such as the recent worldwide shortage of neon gas as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (result of the conflict in Ukraine. ) Tj ET Q q 0 0 0 rg BT 180.11 614.25 Td (W) Tj ET Q q 0 0 0 rg BT 188.75 614.25 Td (e typically purchase our components and materials through purchase orders or agreed upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (terms and conditions and we do not have guaranteed supply arrangements with many of these suppliers. Some of our products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (particularly in the flat panel display industry) Tj ET Q q 0 0 0 rg BT 226.58 590.25 Td (, require designs and specifications which are at the cutting-edge of available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (technologies. Our and our customers' designs and specifications frequently change to meet rapidly evolving market demands. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (Accordingly certain of our products require components and supplies which may be technologically dif) Tj ET Q q 0 0 0 rg BT 462.81 566.25 Td (ficult and unpredictable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (to manufacture. By their very nature, these types of components may only be available by a single supplier) Tj ET Q q 0 0 0 rg BT 476.32 554.25 Td (. ) Tj ET Q q 0 0 0 rg BT 481.14 554.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (characteristics further pressure the timely delivery of such components. ) Tj ET Q q 0 0 0 rg BT 337.55 542.25 Td (W) Tj ET Q q 0 0 0 rg BT 346.19 542.25 Td (e may fail to obtain these supplies in a timely manner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (in the future. ) Tj ET Q q 0 0 0 rg BT 103.19 530.25 Td (W) Tj ET Q q 0 0 0 rg BT 111.83 530.25 Td (e may experience dif) Tj ET Q q 0 0 0 rg BT 195.21 530.25 Td (ficulty identifying alternative sources of supply for certain components used in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (products and may have to incur expenses and management distraction in assisting our current and future suppliers to meet our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (and our customers' technical requirements. ) Tj ET Q q 0 0 0 rg BT 222.73 506.25 Td (W) Tj ET Q q 0 0 0 rg BT 231.37 506.25 Td (e would experience further delays while identifying, evaluating and testing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.25 Td (products of these potential alternative suppliers. Furthermore, financial or other dif) Tj ET Q q 0 0 0 rg BT 380.88 494.25 Td (ficulties faced by these suppliers or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (significant changes in demand for these components or materials could limit their availability) Tj ET Q q 0 0 0 rg BT 422.63 482.25 Td (. ) Tj ET Q q 0 0 0 rg BT 427.45 482.25 Td (W) Tj ET Q q 0 0 0 rg BT 436.09 482.25 Td (e continue to consolidate our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (supply base and move supplier locations. ) Tj ET Q q 0 0 0 rg BT 216.23 470.25 Td (When we transition locations we may increase our inventory of such products as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (safety stock during the transition, which may cause the amount of inventory reflected on our balance sheet to increase. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 446.25 Td (, many of our customers rely on sole source suppliers. In the event of a disruption of our customers' supply chain, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (orders from our customers could decrease or be delayed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 414.25 Td (Any interruption or delay in the supply of any of these components or materials, or the inability to obtain these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (components and materials from alternate sources at acceptable prices and within a reasonable amount of time, or our failure to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (properly manage these moves, would impair our ability to meet scheduled product deliveries to our customers and could cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (customers to cancel orders. ) Tj ET Q q 0 0 0 rg BT 160.67 378.25 Td (W) Tj ET Q q 0 0 0 rg BT 169.30 378.25 Td (e have historically relied exclusively on our own production capability to manufacture certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (strategic components, crystals, semiconductor lasers, lasers and laser) Tj ET Q q 0 0 0 rg BT 324.77 366.25 Td (-based systems. Because we manufacture, package and test ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 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 49.50 342.25 Td (available from other sources, any interruption in manufacturing would adversely af) Tj ET Q q 0 0 0 rg BT 381.71 342.25 Td (fect our business. Since many of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (products have lengthy qualification periods, our ability to introduce multiple suppliers for parts may be limited. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (failure to achieve adequate manufacturing yields of these items at our manufacturing facilities may materially and adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 306.25 Td (fect our operating results and financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 286.25 Td (e participate in the microelectronics market, which requires significant research and development expenses to develop and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (maintain products and a failure to achieve market acceptance for our products could have a significant negative impact on ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (our business and results of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 242.25 Td (The microelectronics market is characterized by rapid technological change, frequent product introductions, the volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (of product supply and demand, changing customer requirements and evolving industry standards. ) Tj ET Q q 0 0 0 rg BT 441.45 230.25 Td (The nature of this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (requires significant research and development expenses to participate, with substantial resources invested in advance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (material sales of our products to our customers in this market. ) Tj ET Q q 0 0 0 rg BT 298.89 206.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 348.79 206.25 Td (, our product of) Tj ET Q q 0 0 0 rg BT 410.82 206.25 Td (ferings may become obsolete given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (the frequent introduction of alternative technologies. In the event either our customers' or our products fail to gain market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (acceptance, or the microelectronics market fails to grow) Tj ET Q q 0 0 0 rg BT 273.19 182.25 Td (, it would likely have a significant negative ef) Tj ET Q q 0 0 0 rg BT 456.01 182.25 Td (fect on our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.25 Td (results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 150.25 Td (e participate in the flat panel display market, which has a relatively limited number of end customer manufacturers. Our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 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 49.50 126.25 Td (orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 106.25 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 94.25 Td (annealing products.In each of our last three fiscal years, ) Tj ET Q q 0 0 0 rg BT 277.19 94.25 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 82.25 Td (display market based in South Korea, has contributed more than 10% of our revenue. Given macroeconomic conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (varying consumer demand and technical process limitations at manufacturers, our customers may seek to reschedule or cancel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (orders. ) Tj ET Q q 0 0 0 rg BT 79.31 58.25 Td (This was recently seen with a requested expedited shipment of a Linebeam 1500 product for our third fiscal quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (2015, which delivery date was then changed at the customer) Tj ET Q q 0 0 0 rg BT 290.90 46.25 Td () Tj ET Q q 0 0 0 rg BT 293.68 46.25 Td (s request back to its originally scheduled date in the fourth fiscal ) Tj ET Q endstream endobj 47 0 obj <>] /Rotate 0 /Contents 48 0 R>> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (quarter of 2015. Since these lar) Tj ET Q q 0 0 0 rg BT 174.28 742.10 Td (ger flat panel-related systems represent a lar) Tj ET Q q 0 0 0 rg BT 350.68 742.10 Td (ge average selling price, rescheduling or canceling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (an order will likely have a significant impact on either our quarterly or annual net sales and results of operations. ) Tj ET Q q 0 0 0 rg BT 502.42 730.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 552.32 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (challenges in meeting evolving technological requirements for these complex products by us and our suppliers could also result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (in delays in shipments, rescheduled or canceled orders by our customers. ) Tj ET Q q 0 0 0 rg BT 343.40 706.10 Td (This could negatively impact our backlog, timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (net sales and results of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 674.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.44 674.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.15 674.10 Td (, flat panel display systems represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.27 674.10 Td (32%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.60 674.10 Td ( of our backlog. Since our backlog includes higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (average selling price flat panel display systems, any delays or cancellation of shipments could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 532.20 662.10 Td (fect on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (our financial results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 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 49.50 618.10 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 72.00 598.10 Td (Lasers and laser systems are inherently complex in design and require ongoing regular maintenance. ) Tj ET Q q 0 0 0 rg BT 475.85 598.10 Td (The manufacture of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (our lasers, laser products and systems involves a highly complex and precise process. ) Tj ET Q q 0 0 0 rg BT 393.03 586.10 Td (As a result of the technological ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 49.50 562.10 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 499.99 562.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (ability to achieve acceptable manufacturing yields and product reliability) Tj ET Q q 0 0 0 rg BT 340.96 550.10 Td (. ) Tj ET Q q 0 0 0 rg BT 345.78 550.10 Td (T) Tj ET Q q 0 0 0 rg BT 351.19 550.10 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 49.50 538.10 Td (projected yields or product reliability) Tj ET Q q 0 0 0 rg BT 197.69 538.10 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 49.50 526.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 526.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 127.15 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 135.78 526.10 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 49.50 514.10 Td (recorded during the period of sale. ) Tj ET Q q 0 0 0 rg BT 189.54 514.10 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 49.50 502.10 Td (expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 300.13 502.10 Td (. ) Tj ET Q q 0 0 0 rg BT 304.95 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 313.59 502.10 Td (e typically establish warranty reserves based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 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 436.93 490.10 Td (fer significantly from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 465.30 478.10 Td (fect on our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.10 Td (Our customers may discover defects in our products after the products have been fully deployed and operated, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (under the end user's peak stress conditions. In addition, some of our products are combined with products from other vendors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (which may contain defects. ) Tj ET Q q 0 0 0 rg BT 160.85 422.10 Td (As a result, should problems occur) Tj ET Q q 0 0 0 rg BT 299.31 422.10 Td (, it may be dif) Tj ET Q q 0 0 0 rg BT 354.95 422.10 Td (ficult to identify the source of the problem. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (are unable to identify and fix defects or other problems, we could experience, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 390.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.10 Td (loss of customers or orders;) 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 (increased costs of product returns and warranty expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 350.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 350.10 Td (damage to our brand reputation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 330.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 330.10 Td (failure to attract new customers or achieve market acceptance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.10 Td (diversion of development, engineering and manufacturing resources; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 290.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.10 Td (legal actions by our customers and/or their end users.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 270.10 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 49.50 258.10 Td (results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (Continued volatility in the advanced packaging and semiconductor manufacturing markets could adversely af) Tj ET Q q 0 0 0 rg BT 501.55 238.10 Td (fect our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 206.10 Td ( portion of our net sales in the microelectronics market depends on the demand for our products by advanced packaging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (applications and semiconductor equipment companies. ) Tj ET Q q 0 0 0 rg BT 270.93 194.10 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 49.50 182.10 Td (severe cyclical variations in product supply and demand, which have often severely af) Tj ET Q q 0 0 0 rg BT 393.91 182.10 Td (fected the demand for semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (manufacturing equipment, including laser) Tj ET Q q 0 0 0 rg BT 216.47 170.10 Td (-based tools and systems. ) Tj ET Q q 0 0 0 rg BT 320.45 170.10 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 49.50 158.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 158.10 Td (ficult to predict, and we may not be able to respond ef) Tj ET Q q 0 0 0 rg BT 276.29 158.10 Td (fectively to these cycles. ) Tj ET Q q 0 0 0 rg BT 376.90 158.10 Td (The continuing uncertainty in these markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 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 72.00 126.10 Td (During industry downturns, our net sales from these markets may decline suddenly and significantly) Tj ET Q q 0 0 0 rg BT 472.93 126.10 Td (. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.10 Td (rapidly and ef) Tj ET Q q 0 0 0 rg BT 104.85 114.10 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 49.50 102.10 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 90.10 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 78.10 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 66.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 98.84 66.10 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 66.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (when upturns in these markets occur) Tj ET Q q 0 0 0 rg BT 195.45 54.10 Td (, we must be able to rapidly and ef) Tj ET Q q 0 0 0 rg BT 333.28 54.10 Td (fectively increase our manufacturing capacity to meet ) Tj ET Q endstream endobj 49 0 obj <>] /Rotate 0 /Contents 50 0 R>> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (our relationships with our customers may be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 710.10 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 49.50 698.10 Td (impact demand for our products and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 678.10 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 678.10 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 49.50 666.10 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 49.50 654.10 Td (products. In particular) Tj ET Q q 0 0 0 rg BT 137.68 654.10 Td (, it is dif) Tj ET Q q 0 0 0 rg BT 170.83 654.10 Td (ficult to develop and implement strategy) Tj ET Q q 0 0 0 rg BT 332.08 654.10 Td (, sustainable business models and ef) Tj ET Q q 0 0 0 rg BT 476.32 654.10 Td (ficient operations, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (well as ef) Tj ET Q q 0 0 0 rg BT 87.63 642.10 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 49.50 630.10 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 425.45 630.10 Td (. Our ability to maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (research and development investments in our broad product of) Tj ET Q q 0 0 0 rg BT 299.24 618.10 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 49.50 606.10 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 49.50 594.10 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 49.50 582.10 Td (operating results. Current global economic conditions remain uncertain and challenging. ) Tj ET Q q 0 0 0 rg BT 405.33 582.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.96 582.10 Td (eakness in our end markets could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (negatively impact our net sales, gross mar) Tj ET Q q 0 0 0 rg BT 217.33 570.10 Td (gin and operating expenses, and consequently have a material adverse ef) Tj ET Q q 0 0 0 rg BT 507.31 570.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 538.10 Td (Uncertainty in global fiscal policy has likely had an adverse impact on global financial markets and overall economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (activity) Tj ET Q q 0 0 0 rg BT 78.84 526.10 Td (.Should this uncertain financial policy recur) Tj ET Q q 0 0 0 rg BT 256.44 526.10 Td (, it would likely negatively impact global economic activity) Tj ET Q q 0 0 0 rg BT 494.34 526.10 Td (. ) Tj ET Q q 0 0 0 rg BT 498.79 526.10 Td (Any weakness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (in global economies would also likely have negative repercussions on U.S. and global credit and financial markets, and further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (exacerbate sovereign debt concerns in the European Union.) Tj ET Q q 0 0 0 rg BT 289.13 502.10 Td (All of these factors would likely adversely impact the global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (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 488.61 490.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 458.10 Td (The financial turmoil af) Tj ET Q q 0 0 0 rg BT 167.56 458.10 Td (fecting the banking system and financial markets continues to negatively impact financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (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 487.27 446.10 Td (There could be a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (number of follow-on ef) Tj ET Q q 0 0 0 rg BT 142.90 434.10 Td (fects from the tightened credit environment on our business, including the insolvency of key suppliers or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (their inability to obtain credit to finance development and/or manufacture products resulting in product delays; inability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (customers to obtain credit to finance purchases of our products and/or customer insolvencies; and failure of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (institutions negatively impacting our treasury functions. In the event our customers are unable to obtain credit or otherwise pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (for our shipped products it could significantly impact our ability to collect on our outstanding accounts receivable. Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (income and expense also could vary materially from expectations depending on gains or losses realized on the sale or exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (of financial instruments; impairment char) Tj ET Q q 0 0 0 rg BT 215.38 362.10 Td (ges resulting from revaluations of debt and equity securities and other investments; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (interest rates; cash balances; and changes in fair value of derivative instruments. ) Tj ET Q q 0 0 0 rg BT 372.81 350.10 Td (V) Tj ET Q q 0 0 0 rg BT 378.74 350.10 Td (olatility in the financial markets and any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (overall economic uncertainty increase the risk that the actual amounts realized in the future on our financial instruments could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 326.10 Td (fer significantly from the fair values currently assigned to them. Uncertainty about current global economic conditions could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (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 72.00 294.10 Td (In addition, political and social turmoil related to international conflicts, terrorist acts, civil unrest and mass migration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (may put further pressure on economic conditions in the United States and the rest of the world. Unstable economic, political ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (and social conditions make it dif) Tj ET Q q 0 0 0 rg BT 179.57 270.10 Td (ficult for our customers, our suppliers and us to accurately forecast and plan future business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (activities. If such conditions persist, our business, financial condition and results of operations could suf) Tj ET Q q 0 0 0 rg BT 465.63 258.10 Td (fer) Tj ET Q q 0 0 0 rg BT 476.17 258.10 Td (. ) Tj ET Q q 0 0 0 rg BT 480.62 258.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 530.53 258.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (unstable economic conditions can provide significant pressures and burdens on individuals, which could cause them to engage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (in inappropriate business conduct. See PartII,Item9A. CONTROLS ) Tj ET Q q 0 0 0 rg BT 333.06 234.10 Td (AND PROCEDURES.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 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 49.50 202.10 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 49.50 190.10 Td (levels provided by such banks, both of which could have an adverse impact on our ability to timely access funds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 170.10 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 49.50 158.10 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 49.50 146.10 Td (solvency of some financial institutions. ) Tj ET Q q 0 0 0 rg BT 208.74 146.10 Td (These financial institutions, including banks, have had dif) Tj ET Q q 0 0 0 rg BT 439.90 146.10 Td (ficulty timely performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (regular services and in some cases have failed or otherwise been lar) Tj ET Q q 0 0 0 rg BT 320.04 134.10 Td (gely taken over by governments. ) Tj ET Q q 0 0 0 rg BT 453.15 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.79 134.10 Td (e maintain our cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 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 49.50 110.10 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 98.10 Td (ability to timely access our cash deposited with such institutions, or) Tj ET Q q 0 0 0 rg BT 319.33 98.10 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 86.10 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 74.10 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 62.10 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 endstream endobj 51 0 obj <>] /Rotate 0 /Contents 52 0 R>> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (impact on our operations, including our reported net income. In addition, the willingness of financial institutions to continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (accept our cash deposits will impact our ability to diversify our investment risk among institutions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 710.10 Td (e are exposed to credit risk and fluctuations in the market values of our investment portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 690.10 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 49.50 678.10 Td (declines in their market values could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 303.09 678.10 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 49.50 666.10 Td (global nature of our business, we have investments both domestically and internationally) Tj ET Q q 0 0 0 rg BT 404.32 666.10 Td (. ) Tj ET Q q 0 0 0 rg BT 409.14 666.10 Td (There has recently been growing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 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 49.50 642.10 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 49.50 630.10 Td (issued by such nations. ) Tj ET Q q 0 0 0 rg BT 143.67 630.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 193.57 630.10 Td (, our overall investment portfolio is often concentrated in government-issued securities such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (as U.S. ) Tj ET Q q 0 0 0 rg BT 80.43 618.10 Td (T) Tj ET Q q 0 0 0 rg BT 86.19 618.10 Td (reasury securities and government agencies, corporate notes, commercial paper and money market funds. Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (ratings and pricing of these investments can be negatively impacted by liquidity) Tj ET Q q 0 0 0 rg BT 368.49 606.10 Td (, credit deterioration or losses, financial results, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (or other factors. ) Tj ET Q q 0 0 0 rg BT 115.03 594.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 164.93 594.10 Td (, liquidity issues or political actions by sovereign nations could result in decreased values for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (investments in certain government securities. ) Tj ET Q q 0 0 0 rg BT 232.23 582.10 Td (As a result, the value or liquidity of our cash, cash equivalents and short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (investments could decline or become materially impaired, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 439.72 570.10 Td (fect on our financial condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (and operating results. See Item7A. Quantitative and Qualitative Disclosures about Market Risk.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 460.72 538.10 Td (fset potential declines in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 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 49.50 514.10 Td (our operating results may suf) Tj ET Q q 0 0 0 rg BT 170.45 514.10 Td (fer) Tj ET Q q 0 0 0 rg BT 181.56 514.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.10 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 49.50 482.10 Td (laser systems and related accessories, as well as our ability to identify) Tj ET Q q 0 0 0 rg BT 327.65 482.10 Td (, in advance, emer) Tj ET Q q 0 0 0 rg BT 400.49 482.10 Td (ging markets for laser) Tj ET Q q 0 0 0 rg BT 487.76 482.10 Td (-based systems. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 470.10 Td (e cannot assure you that we will be able to successfully identify) Tj ET Q q 0 0 0 rg BT 312.14 470.10 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 49.50 458.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 458.10 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 49.50 446.10 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 49.50 434.10 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 49.50 422.10 Td (continue, sales of our products may decline and our business will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 402.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 402.10 Td (e have in the past experienced decreases in the ) Tj ET Q q 0 0 0 rg BT 268.61 402.10 Td (ASPs of some of our products. ) Tj ET Q q 0 0 0 rg BT 393.33 402.10 Td (As competing products become more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (widely available, the ) Tj ET Q q 0 0 0 rg BT 134.47 390.10 Td (ASPs of our products may decrease. If we are unable to of) Tj ET Q q 0 0 0 rg BT 367.55 390.10 Td (fset any decrease in our ) Tj ET Q q 0 0 0 rg BT 463.89 390.10 Td (ASPs by increasing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (sales volumes, our net sales will decline. In addition, to maintain our gross mar) Tj ET Q q 0 0 0 rg BT 365.92 378.10 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 49.50 366.10 Td (manufacturing our products while maintaining their high quality) Tj ET Q q 0 0 0 rg BT 306.29 366.10 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 49.50 354.10 Td (technological products, may fail in greater frequency than anticipated. ) Tj ET Q q 0 0 0 rg BT 332.26 354.10 Td (This can lead to further char) Tj ET Q q 0 0 0 rg BT 445.08 354.10 Td (ges, which can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (higher costs, lower gross mar) Tj ET Q q 0 0 0 rg BT 166.79 342.10 Td (gins and lower operating results. Furthermore, as ) Tj ET Q q 0 0 0 rg BT 364.81 342.10 Td (ASPs of our current products decline, we must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (develop and introduce new products and product enhancements with higher mar) Tj ET Q q 0 0 0 rg BT 369.77 330.10 Td (gins. If we cannot maintain our gross mar) Tj ET Q q 0 0 0 rg BT 536.22 330.10 Td (gins, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (our operating results could be seriously harmed, particularly if the ) Tj ET Q q 0 0 0 rg BT 315.81 318.10 Td (ASPs of our products decrease significantly) Tj ET Q q 0 0 0 rg BT 490.40 318.10 Td (.) 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 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 49.50 286.10 Td (needs of our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 266.10 Td (Our current products address a broad range of commercial and scientific research applications in the photonics markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 254.10 Td (e cannot assure you that the market for these applications will continue to generate significant or consistent demand for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (products. Demand for our products could be significantly diminished by disrupting technologies or products that replace them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (or render them obsolete. Furthermore, the new and enhanced products in certain markets generally continue to be smaller in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (size and have lower ) Tj ET Q q 0 0 0 rg BT 130.58 218.10 Td (ASPs, and therefore, we have to sell more units to maintain revenue levels. ) Tj ET Q q 0 0 0 rg BT 432.72 218.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.06 218.10 Td (, we must continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (to invest in research and development in order to develop competitive products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 186.10 Td (Our future success depends on our ability to anticipate our customers' needs and develop products that address those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (needs. Introduction of new products and product enhancements will require that we ef) Tj ET Q q 0 0 0 rg BT 393.37 174.10 Td (fectively transfer production processes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (from research and development to manufacturing and coordinate our ef) Tj ET Q q 0 0 0 rg BT 334.48 162.10 Td (forts with those of our suppliers to achieve volume ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (production rapidly) Tj ET Q q 0 0 0 rg BT 123.00 150.10 Td (. If we fail to transfer production processes ef) Tj ET Q q 0 0 0 rg BT 304.70 150.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 339.03 150.10 Td (, develop product enhancements or introduce new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (products in suf) Tj ET Q q 0 0 0 rg BT 108.76 138.10 Td (ficient quantities to meet the needs of our customers as scheduled, our net sales may be reduced and our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (may be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 106.10 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 94.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 74.10 Td (For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.39 74.10 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.55 74.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.55 74.10 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.70 74.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.14 74.10 Td (fiscal 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.30 74.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.30 74.10 Td (73%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.63 74.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.63 74.10 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.96 74.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.39 74.10 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.72 74.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 382.39 74.10 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 62.10 Td (customers outside of the United States. ) Tj ET Q q 0 0 0 rg BT 207.90 62.10 Td (W) Tj ET Q q 0 0 0 rg BT 216.54 62.10 Td (e anticipate that foreign sales, particularly in ) Tj ET Q q 0 0 0 rg BT 396.47 62.10 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 50.10 Td (significant portion of our net sales in the foreseeable future. ) Tj ET Q endstream endobj 53 0 obj <>] /Rotate 0 /Contents 54 0 R>> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 742.10 Td ( global economic slowdown or a natural disaster could have a negative ef) Tj ET Q q 0 0 0 rg BT 371.72 742.10 Td (fect on various foreign markets in which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 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 446.42 730.10 Td (Thailand in recent years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 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 451.13 718.10 Td (fect the overall level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (business in such countries. Our foreign sales are primarily through our direct sales force. ) Tj ET Q q 0 0 0 rg BT 406.07 706.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 455.97 706.10 Td (, some foreign sales are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (made through foreign distributors and representatives. Our foreign operations and sales are subject to a number of risks, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 662.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 662.10 Td (longer accounts receivable collection periods;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 642.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 642.10 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 67.50 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.10 Td (unexpected changes in regulatory requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 602.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 602.10 Td (certification requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 582.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 582.10 Td (environmental regulations;) 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 (reduced protection for intellectual property rights in some countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 542.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 542.10 Td (potentially adverse tax consequences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 522.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 522.10 Td (political and economic instability;) 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 (import/export regulations, tarif) Tj ET Q q 0 0 0 rg BT 208.90 502.10 Td (fs and trade barriers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 482.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 482.10 Td (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 67.50 462.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 462.10 Td (cultural and management dif) Tj ET Q q 0 0 0 rg BT 200.00 462.10 Td (ferences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 442.10 Td (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 67.50 422.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.10 Td (preference for locally produced products; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 402.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 402.10 Td (shipping and other logistics complications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.10 Td (Our business could also be impacted by international conflicts, terrorist and military activity) Tj ET Q q 0 0 0 rg BT 440.42 382.10 Td (, civil unrest and pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (illness which could cause a slowdown in customer orders, cause customer order cancellations or negatively impact availability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (of supplies or limit our ability to timely service our installed base of products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 338.10 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 530.83 338.10 Td (fect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 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 480.04 326.10 Td (While we use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 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 49.50 302.10 Td (to the economic risks of foreign currency fluctuations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 282.10 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 387.71 282.10 Td (fect our competitive advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.10 Td (Maintenance of intellectual property rights and the protection thereof is important to our business. ) Tj ET Q q 0 0 0 rg BT 466.43 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 475.07 262.10 Td (e rely on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 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 49.50 238.10 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 470.05 238.10 Td (ficiently protect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 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 49.50 214.10 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 400.36 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 409.00 214.10 Td (e cannot be certain that the steps we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (have taken will prevent the misappropriation of our intellectual property) Tj ET Q q 0 0 0 rg BT 337.92 202.10 Td (, particularly in foreign countries where the laws may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (not protect our proprietary rights as fully as in the United States. Further) Tj ET Q q 0 0 0 rg BT 338.76 190.10 Td (, we may be required to enforce our intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 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 49.50 166.10 Td (diversion of management's attention. ) Tj ET Q q 0 0 0 rg BT 198.77 166.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 248.67 166.10 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 49.50 154.10 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 49.50 142.10 Td (might infringe upon since these applications are often not publicly available until a patent is issued or published.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 122.10 Td (e may) Tj ET Q q 0 0 0 rg BT 81.43 122.10 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 49.50 110.10 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 98.10 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 86.10 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 405.11 86.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 66.10 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 54.10 Td (intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 160.40 54.10 Td (This has been seen in our industry) Tj ET Q q 0 0 0 rg BT 296.39 54.10 Td (, for example in the recently concluded patent-related litigation ) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (between IMRA) Tj ET Q q 0 0 0 rg BT 110.88 742.10 Td ( ) Tj ET Q q 0 0 0 rg BT 112.83 742.10 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 49.50 730.10 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 49.50 718.10 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 49.50 706.10 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 49.50 694.10 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 49.50 682.10 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 49.50 670.10 Td (to indemnify our customers against third-party infringement claims relating to our products. ) Tj ET Q q 0 0 0 rg BT 419.51 670.10 Td (These claims and any resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 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 507.55 658.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 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 49.50 634.10 Td (time and attention. ) Tj ET Q q 0 0 0 rg BT 126.15 634.10 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 67.50 614.10 Td ( ) Tj ET Q BT /F1 3.00 Tf ET q 0 0 0 rg BT 85.50 614.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.25 614.10 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 67.50 594.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 594.10 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 530.26 594.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 582.10 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 67.50 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (redesign the products that use the technology) Tj ET Q q 0 0 0 rg BT 265.36 562.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 542.10 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 49.50 530.10 Td (losses and our business may be seriously harmed. ) Tj ET Q q 0 0 0 rg BT 250.12 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 258.76 530.10 Td (e do not have insurance to cover potential claims of this type.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 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 72.00 490.10 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 49.50 478.10 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 49.50 466.10 Td (impairment at least annually) Tj ET Q q 0 0 0 rg BT 162.42 466.10 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 49.50 454.10 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 49.50 442.10 Td (market capitalization or future cash flows projections. ) Tj ET Q q 0 0 0 rg BT 267.21 442.10 Td (A) Tj ET Q q 0 0 0 rg BT 273.88 442.10 Td ( decline in our stock price, or any other adverse change in market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (conditions, particularly if such change has the ef) Tj ET Q q 0 0 0 rg BT 243.14 430.10 Td (fect of changing one of the critical assumptions or estimates we used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (calculate the estimated fair value of our reporting units, could result in a change to the estimation of fair value that could result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (in an impairment char) Tj ET Q q 0 0 0 rg BT 137.34 406.10 Td (ge. ) Tj ET Q q 0 0 0 rg BT 151.23 406.10 Td (Any such material char) Tj ET Q q 0 0 0 rg BT 244.07 406.10 Td (ges, whether related to goodwill or purchased intangible assets, may have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (material negative impact on our financial and operating results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 374.10 Td (e depend on skilled personnel to operate our business ef) Tj ET Q q 0 0 0 rg BT 287.20 374.10 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 49.50 362.10 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 72.00 342.10 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 49.50 330.10 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 528.92 330.10 Td (ficult. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 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 415.32 318.10 Td (ficult to retain key employees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (management at a reasonable cost. ) Tj ET Q q 0 0 0 rg BT 185.93 306.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.56 306.10 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 49.50 294.10 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 543.86 294.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (our growth and our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 262.10 Td (Our future success depends upon the continued services of our executive of) Tj ET Q q 0 0 0 rg BT 373.67 262.10 Td (ficers and other key engineering, sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (marketing, manufacturing and support personnel, any of whom may leave and our ability to ef) Tj ET Q q 0 0 0 rg BT 426.43 250.10 Td (fectively transition to their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (successors. Our inability to retain or to ef) Tj ET Q q 0 0 0 rg BT 214.83 238.10 Td (fectively transition to their successors could harm our business and our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 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 427.95 206.10 Td (fsetting net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 186.10 Td (Customers often view the purchase of our products as a significant and strategic decision. ) Tj ET Q q 0 0 0 rg BT 432.18 186.10 Td (As a result, customers typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (expend significant ef) Tj ET Q q 0 0 0 rg BT 133.18 174.10 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 49.50 162.10 Td (in a lengthy initial sales cycle. ) Tj ET Q q 0 0 0 rg BT 172.89 162.10 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 49.50 150.10 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 49.50 138.10 Td (needs. ) Tj ET Q q 0 0 0 rg BT 77.09 138.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.73 138.10 Td (e may also expend significant management ef) Tj ET Q q 0 0 0 rg BT 268.25 138.10 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 49.50 126.10 Td (components or materials prior to receiving an order) Tj ET Q q 0 0 0 rg BT 254.71 126.10 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 49.50 114.10 Td (our products. ) Tj ET Q q 0 0 0 rg BT 104.22 114.10 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 49.50 102.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 102.10 Td (fset such expenses.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 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 70.10 Td (levels, reduced gross margins or the loss of market share.) Tj ET Q endstream endobj 57 0 obj <>] /Rotate 0 /Contents 58 0 R>> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 440.92 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 449.56 742.10 Td (e compete against a number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (of lar) Tj ET Q q 0 0 0 rg BT 70.70 730.10 Td (ge public and private companies, including CVI Melles Griot, GSI Group,Inc.,IPG Photonics Corporation, Lumentum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (Holdings Inc., Newport Corporation, Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 249.29 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 254.70 718.10 Td (echnologies,Inc., and ) Tj ET Q q 0 0 0 rg BT 344.49 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.25 718.10 Td (rumpfGmbH, as well as other smaller companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (Some of our competitors are lar) Tj ET Q q 0 0 0 rg BT 176.22 706.10 Td (ge companies that have significant financial, technical, marketing and other resources. ) Tj ET Q q 0 0 0 rg BT 523.68 706.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 49.50 682.10 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 49.50 670.10 Td (technologies or products that may displace our product lines. ) Tj ET Q q 0 0 0 rg BT 295.00 670.10 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 49.50 658.10 Td (advantage. ) Tj ET Q q 0 0 0 rg BT 94.48 658.10 Td (Any business combinations or mer) Tj ET Q q 0 0 0 rg BT 233.17 658.10 Td (gers among our competitors, forming lar) Tj ET Q q 0 0 0 rg BT 395.17 658.10 Td (ger companies with greater resources, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (could result in increased competition, price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 320.89 646.10 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 49.50 634.10 Td (and adversely af) Tj ET Q q 0 0 0 rg BT 114.84 634.10 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 72.00 614.10 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 49.50 602.10 Td (with new companies in the future. ) Tj ET Q q 0 0 0 rg BT 187.89 602.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.53 602.10 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 49.50 590.10 Td (competitors, are committed to the products of) Tj ET Q q 0 0 0 rg BT 231.77 590.10 Td (fered by these competitors. Further) Tj ET Q q 0 0 0 rg BT 371.60 590.10 Td (, our current or potential customers may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 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 451.88 578.10 Td (As a result of the foregoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (factors, we expect that competitive pressures may result in price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 404.74 566.10 Td (gins, loss of sales and loss of market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 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 49.50 534.10 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 49.50 522.10 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 72.00 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 502.10 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 49.50 490.10 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 49.50 478.10 Td (required to obtain the necessary components and materials. ) Tj ET Q q 0 0 0 rg BT 288.41 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.04 478.10 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 49.50 466.10 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 49.50 454.10 Td (specific supplier requirements, the size of the order) Tj ET Q q 0 0 0 rg BT 254.02 454.10 Td (, contract terms and current market demand for components. For substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 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 49.50 430.10 Td (overestimate our component and material requirements, we may have excess inventory) Tj ET Q q 0 0 0 rg BT 396.78 430.10 Td (, which would increase our costs. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (underestimate our component and material requirements, we may have inadequate inventory) Tj ET Q q 0 0 0 rg BT 418.99 418.10 Td (, which could interrupt and delay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (delivery of our products to our customers. ) Tj ET Q q 0 0 0 rg BT 219.47 406.10 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 49.50 394.10 Td (operating results.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (Our reliance on contract manufacturing and outsourcing may adversely impact our financial results and operations due to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (our decreased control over the performance and timing of certain aspects of our manufacturing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.17 362.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 342.10 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 49.50 330.10 Td (complex turnkey products, including some performed at international sites located in ) Tj ET Q q 0 0 0 rg BT 391.08 330.10 Td (Asia and Eastern Europe. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (resume internal manufacturing operations for certain products and components in a timely manner may be eliminated. ) Tj ET Q q 0 0 0 rg BT 523.88 318.10 Td (The cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 306.10 Td (, performance and availability of contract manufacturing operations are and will be essential to the successful production ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (and sale of many of our products. Our financial condition or results of operation could be adversely impacted if any contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 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 49.50 270.10 Td (to meet our cost, quality) Tj ET Q q 0 0 0 rg BT 145.77 270.10 Td (, performance, and availability standards. ) Tj ET Q q 0 0 0 rg BT 313.31 270.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.95 270.10 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 49.50 258.10 Td (product volumes that are high enough to achieve suf) Tj ET Q q 0 0 0 rg BT 258.70 258.10 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 49.50 246.10 Td (increased costs or be required to take ownership of the inventory) Tj ET Q q 0 0 0 rg BT 307.65 246.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.10 246.10 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 49.50 234.10 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 450.65 234.10 Td (, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (impact our financial condition or results of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (If we fail to ef) Tj ET Q q 0 0 0 rg BT 107.08 202.10 Td (fectively manage our growth or) Tj ET Q q 0 0 0 rg BT 235.41 202.10 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 291.14 202.10 Td (, our spending during downturns, our business could be ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (disrupted, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 170.10 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 49.50 158.10 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 49.50 146.10 Td (strain. ) Tj ET Q q 0 0 0 rg BT 76.54 146.10 Td (The failure to ef) Tj ET Q q 0 0 0 rg BT 141.04 146.10 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 49.50 134.10 Td (successfully of) Tj ET Q q 0 0 0 rg BT 109.03 134.10 Td (fer our products and implement our business plan in evolving markets requires an ef) Tj ET Q q 0 0 0 rg BT 445.70 134.10 Td (fective planning and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (management process. In economic downturns, we must ef) Tj ET Q q 0 0 0 rg BT 281.20 122.10 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 49.50 110.10 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 536.99 110.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (failure to ef) Tj ET Q q 0 0 0 rg BT 95.96 98.10 Td (fectively manage our spending and operations could disrupt our business and harm our operating results. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.46 78.10 Td (, acquisitions have been an important element of our strategy) Tj ET Q q 0 0 0 rg BT 348.76 78.10 Td (. However) Tj ET Q q 0 0 0 rg BT 389.87 78.10 Td (, we may not find suitable acquisition ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 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 66.10 Td (Any acquisitions ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (we make could disrupt our business and harm our financial condition.) Tj ET Q endstream endobj 59 0 obj <>] /Rotate 0 /Contents 60 0 R>> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td () Tj ET Q q 0 0 0 rg BT 74.32 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.96 742.10 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 49.50 730.10 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 49.50 718.10 Td (any future acquisitions, we could:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 698.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 698.10 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 67.50 678.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 678.10 Td (pay cash that would decrease our working capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td (incur debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 638.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 638.10 Td (assume liabilities; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 618.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 618.10 Td (incur expenses related to impairment of goodwill and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 598.10 Td (Acquisitions also involve numerous risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 578.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 578.10 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 67.50 558.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 558.10 Td (an inability to realize expected operating ef) Tj ET Q q 0 0 0 rg BT 258.57 558.10 Td (ficiencies or product integration benefits;) 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 (dif) Tj ET Q q 0 0 0 rg BT 96.43 538.10 Td (ficulties in coordinating and integrating geographically separated personnel, or) Tj ET Q q 0 0 0 rg BT 411.42 538.10 Td (ganizations, systems and facilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 518.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 518.10 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 518.10 Td (ficulties integrating business cultures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 498.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 498.10 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 85.50 486.10 Td (company;) 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 85.50 466.10 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 67.50 446.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 446.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 126.13 446.10 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 67.50 426.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 426.10 Td (potential loss of key employees, particularly those of the purchased or) Tj ET Q q 0 0 0 rg BT 365.51 426.10 Td (ganizations;) 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 85.50 406.10 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 67.50 386.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 386.10 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 85.50 374.10 Td (in the expensing of potentially significant professional fees and other char) Tj ET Q q 0 0 0 rg BT 381.34 374.10 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 85.50 362.10 Td (negotiations are terminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 342.10 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 49.50 330.10 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 49.50 318.10 Td (transactions, which may harm our business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 49.50 286.10 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 49.50 274.10 Td (operating results will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 254.10 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 49.50 242.10 Td (product introductions, changes in customer requirements and evolving industry standards. Because this industry is subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (rapid change, it is dif) Tj ET Q q 0 0 0 rg BT 134.02 230.10 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 49.50 218.10 Td (will depend on, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 198.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 198.10 Td (maintaining and enhancing our relationships with our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 178.10 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 67.50 158.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 158.10 Td (our ability to accurately predict and develop our products to meet industry standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 138.10 Td (For our fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.98 138.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.98 138.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.98 138.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.98 138.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.41 138.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.41 138.10 Td (, our research and development costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.57 138.10 Td ($81.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.46 138.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.29 138.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.12 138.10 Td ( of net sales\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td ($79.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 126.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 126.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.05 126.10 Td ( of net sales\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.31 126.10 Td ($82.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.20 126.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.03 126.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.86 126.10 Td ( of net sales\), respectively) Tj ET Q q 0 0 0 rg BT 394.33 126.10 Td (. ) Tj ET Q q 0 0 0 rg BT 399.15 126.10 Td (W) Tj ET Q q 0 0 0 rg BT 407.79 126.10 Td (e cannot assure you that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.10 Td (expenditures for research and development will result in the introduction of new products or) Tj ET Q q 0 0 0 rg BT 418.16 114.10 Td (, if such products are introduced, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (that those products will achieve suf) Tj ET Q q 0 0 0 rg BT 190.67 102.10 Td (ficient market acceptance or to generate sales to of) Tj ET Q q 0 0 0 rg BT 393.16 102.10 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 90.10 Td (to address rapid technological changes in our markets could adversely af) Tj ET Q q 0 0 0 rg BT 339.77 90.10 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 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 70.10 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 70.10 Td (fect on our business, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (operating results, or financial condition.) Tj ET Q endstream endobj 61 0 obj <>] /Rotate 0 /Contents 62 0 R>> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 742.10 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 539.33 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (death or commercial losses occur from the use of our products. ) Tj ET Q q 0 0 0 rg BT 303.68 730.10 Td (While we typically maintain business insurance, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (directors' and of) Tj ET Q q 0 0 0 rg BT 113.88 718.10 Td (ficers' policies, litigation can be expensive, lengthy) Tj ET Q q 0 0 0 rg BT 317.74 718.10 Td (, and disruptive to normal business operations, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (potential impact of indemnification obligations for individuals named in any such lawsuits. ) Tj ET Q q 0 0 0 rg BT 416.19 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.83 706.10 Td (e may not, however) Tj ET Q q 0 0 0 rg BT 503.29 706.10 Td (, be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (secure insurance coverage on terms acceptable to us in the future. Moreover) Tj ET Q q 0 0 0 rg BT 353.41 694.10 Td (, the results of complex legal proceedings are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 682.10 Td (ficult to predict. ) Tj ET Q q 0 0 0 rg BT 126.52 682.10 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 49.50 670.10 Td (determined to be defective, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 289.75 670.10 Td (fect on our business, operating results, or financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 650.10 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 49.50 638.10 Td (damage or liability resulting from accidental environmental contamination or injury) Tj ET Q q 0 0 0 rg BT 396.66 638.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 618.10 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 49.50 606.10 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 49.50 594.10 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 509.35 594.10 Td (Also, if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 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 49.50 570.10 Td (it could release highly toxic emissions. ) Tj ET Q q 0 0 0 rg BT 207.35 570.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.98 570.10 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 49.50 558.10 Td (comply with all federal, state and of) Tj ET Q q 0 0 0 rg BT 193.44 558.10 Td (fshore regulations and standards. However) Tj ET Q q 0 0 0 rg BT 363.82 558.10 Td (, the risk of accidental environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 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 49.50 534.10 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 49.50 522.10 Td (resources of our business which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 278.41 522.10 Td (fect on our financial results or our business as a whole.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 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 72.00 482.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 482.10 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 49.50 470.10 Td (dischar) Tj ET Q q 0 0 0 rg BT 78.20 470.10 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 49.50 458.10 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 49.50 446.10 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 49.50 434.10 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 49.50 422.10 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 49.50 410.10 Td (product and the management of historical waste.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 390.10 Td (From time to time new regulations are enacted, and it is dif) Tj ET Q q 0 0 0 rg BT 308.42 390.10 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 49.50 378.10 Td (and enforced. ) Tj ET Q q 0 0 0 rg BT 106.23 378.10 Td (W) Tj ET Q q 0 0 0 rg BT 114.87 378.10 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 493.98 378.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (regulations include, for example, the Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 300.27 366.10 Td (Authorization and Restriction of Chemical substances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (\(REACH\), the Restriction on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Directive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (\(RoHS\) and the ) Tj ET Q q 0 0 0 rg BT 123.46 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 132.10 342.10 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 49.50 330.10 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 49.50 318.10 Td (products we manufacture. ) Tj ET Q q 0 0 0 rg BT 155.39 318.10 Td (This and similar legislation that has been or is in the process of being enacted in Japan, China, South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (Korea and various states of the United States may require us to re-design our products to ensure compliance with the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (standards, for example by requiring the use of dif) Tj ET Q q 0 0 0 rg BT 246.76 294.10 Td (ferent types of materials. ) Tj ET Q q 0 0 0 rg BT 348.48 294.10 Td (These redesigns or alternative materials may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 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 49.50 270.10 Td (similar ef) Tj ET Q q 0 0 0 rg BT 87.36 270.10 Td (fects. ) Tj ET Q q 0 0 0 rg BT 111.06 270.10 Td (W) Tj ET Q q 0 0 0 rg BT 119.70 270.10 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 49.50 258.10 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 49.50 246.10 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 49.50 234.10 Td (incur any additional material costs or expenses associated with our operations. ) Tj ET Q q 0 0 0 rg BT 365.34 234.10 Td (W) Tj ET Q q 0 0 0 rg BT 373.98 234.10 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 49.50 222.10 Td (costs or expenses. ) Tj ET Q q 0 0 0 rg BT 123.75 222.10 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 49.50 210.10 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 490.41 210.10 Td (forts to prevent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (the sourcing of such minerals. ) Tj ET Q q 0 0 0 rg BT 174.57 198.10 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 49.50 186.10 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 49.50 174.10 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 49.50 162.10 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 49.50 150.10 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 49.50 130.10 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 49.50 118.10 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 98.10 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 86.10 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 86.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (pandemic illnesses, ener) Tj ET Q q 0 0 0 rg BT 146.79 74.10 Td (gy shortages, theft of assets, other natural disasters or terrorist activity) Tj ET Q q 0 0 0 rg BT 426.61 74.10 Td (. ) Tj ET Q q 0 0 0 rg BT 431.06 74.10 Td (A) Tj ET Q q 0 0 0 rg BT 437.73 74.10 Td ( substantial portion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 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 50.10 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 50.10 Td (Any such loss or ) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (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 49.50 730.10 Td (net sales and result in lar) Tj ET Q q 0 0 0 rg BT 148.46 730.10 Td (ge expenses to repair or replace the facility) Tj ET Q q 0 0 0 rg BT 319.67 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 324.49 730.10 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 49.50 718.10 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 49.50 706.10 Td (insurance. ) Tj ET Q q 0 0 0 rg BT 92.63 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 101.27 706.10 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 535.77 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 540.59 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 549.23 706.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 49.50 674.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 62.65 674.10 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 49.50 662.10 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 49.50 650.10 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 49.50 638.10 Td (and financial exposure and liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 618.10 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 49.50 606.10 Td (products licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 198.63 606.10 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 49.50 594.10 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 49.50 582.10 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 49.50 570.10 Td (the SEC. ) Tj ET Q q 0 0 0 rg BT 89.50 570.10 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 49.50 558.10 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 49.50 546.10 Td (system could adversely af) Tj ET Q q 0 0 0 rg BT 152.90 546.10 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 49.50 534.10 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 534.10 Td (Act of 2002. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (Our information systems are subject to attacks, interruptions and failures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.10 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 49.50 482.10 Td (technology system. ) Tj ET Q q 0 0 0 rg BT 129.03 482.10 Td (While our system is designed with access security) Tj ET Q q 0 0 0 rg BT 328.61 482.10 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 49.50 470.10 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 49.50 458.10 Td (business, litigation and possible liability) Tj ET Q q 0 0 0 rg BT 209.68 458.10 Td (. Our security measures may be breached as a result of third-party action, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (intentional misconduct by computer hackers, employee error) Tj ET Q q 0 0 0 rg BT 292.07 446.10 Td (, malfeasance or otherwise. ) Tj ET Q q 0 0 0 rg BT 403.14 446.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 453.04 446.10 Td (, third parties may attempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 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 49.50 422.10 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 49.50 410.10 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 49.50 398.10 Td (sabotage systems, change frequently and generally are not recognized until launched against a tar) Tj ET Q q 0 0 0 rg BT 438.61 398.10 Td (get, we may be unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (anticipate these techniques or to implement adequate preventative measures. ) Tj ET Q q 0 0 0 rg BT 357.16 386.10 Td (Any unauthorized access could result in a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 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 49.50 362.10 Td (future sales. ) Tj ET Q q 0 0 0 rg BT 99.76 362.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 149.67 362.10 Td (, such actions could result in significant costs associated with loss of our intellectual property) Tj ET Q q 0 0 0 rg BT 521.99 362.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (impairment of our ability to conduct our operations, rebuilding our network and systems, prosecuting and defending litigation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (responding to regulatory inquiries or actions, paying damages or taking other remedial steps.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (Changes in tax rates, tax liabilities or tax accounting rulescould af) Tj ET Q q 0 0 0 rg BT 326.58 318.10 Td (fect future results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 298.10 Td (As a global company) Tj ET Q q 0 0 0 rg BT 156.05 298.10 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 49.50 286.10 Td (Significant judgment is required to determine our worldwide tax liabilities. ) Tj ET Q q 0 0 0 rg BT 351.38 286.10 Td (A) Tj ET Q q 0 0 0 rg BT 358.05 286.10 Td ( number of factors may af) Tj ET Q q 0 0 0 rg BT 461.44 286.10 Td (fect our future ef) Tj ET Q q 0 0 0 rg BT 528.72 286.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (tax rates including, but not limited to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 254.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 254.10 Td (changes in the composition of earnings in countries or states with dif) Tj ET Q q 0 0 0 rg BT 382.54 254.10 Td (fering tax rates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 234.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 234.10 Td (changes in the valuation of our deferred tax assets and liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 214.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 214.10 Td (the resolution of issues arising from tax audits with various tax authorities, and in particular) Tj ET Q q 0 0 0 rg BT 473.96 214.10 Td (, the outcome of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 202.10 Td (pending German tax audits of our tax returns for fiscal years 2006 - 2013;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 182.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 182.10 Td (changes in our global structure that involve an increased investment in technology outside of the United States to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 170.10 Td (better align asset ownership and business functions with revenues and profits; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 150.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 150.10 Td (adjustments to estimated taxes upon finalization of various tax returns;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 130.10 Td (increases in expense not deductible for tax purposes, including impairments of goodwill in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 118.10 Td (acquisitions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 98.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 98.10 Td (our ability to meet the eligibility requirements for tax holidays of limited time tax-advantage status in various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 86.10 Td (jurisdictions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 66.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 66.10 Td (changes in available tax credits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 46.10 Td (changes in share-based compensation;) Tj ET Q endstream endobj 65 0 obj <>] /Rotate 0 /Contents 66 0 R>> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 742.10 Td (changes in the tax laws or the interpretation of such tax laws, including the Base Erosion Profit Shifting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 730.10 Td (\(BEPS\) project being conducted by the Or) Tj ET Q q 0 0 0 rg BT 285.60 730.10 Td (ganization for Economic Co-operation and Development \(OECD\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 710.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 710.10 Td (changes in generally accepted accounting principles; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 690.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 690.10 Td (the repatriation of non-U.S. earnings for which we have not previously provided for U.S. taxes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 670.10 Td (e are also engaged in discussions with various tax authorities regarding the appropriate level of profitability for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (Coherent entities and this may result in changes to our worldwide tax liabilities. In addition, we are subject to regular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (examination of our income tax returns by the Internal Revenue Service \(IRS\) and other tax authorities. From time to time the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (United States, foreign and state governments make substantive changes to tax rulesand the application of rulesto companies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (including various announcements from the United States government potentially impacting our ability to defer taxes on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (international earnings. ) Tj ET Q q 0 0 0 rg BT 141.23 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 149.87 610.10 Td (e regularly assess the likelihood of favorable or unfavorable outcomes resulting from these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (examinations to determine the adequacy of our provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 351.08 598.10 Td (Although we believe our tax estimates are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 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 414.46 586.10 Td (ferent than the treatment reflected in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (our historical income tax provisions and accruals, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 410.59 574.10 Td (fect our operating results and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (financial condition.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 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 49.50 530.10 Td (regarding compliance matters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 510.10 Td (Federal securities laws, rulesand regulations, as well as the rulesand regulations of self-regulatory or) Tj ET Q q 0 0 0 rg BT 481.14 510.10 Td (ganizations such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 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 49.50 486.10 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 49.50 474.10 Td (members and impose civil and criminal penalties for companies and their chief executive of) Tj ET Q q 0 0 0 rg BT 416.69 474.10 Td (ficers, chief financial of) Tj ET Q q 0 0 0 rg BT 512.01 474.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (directors for securities law violations. ) Tj ET Q q 0 0 0 rg BT 202.61 462.10 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 49.50 450.10 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 49.50 438.10 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 49.50 426.10 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 49.50 414.10 Td (standards are subject to varying interpretations in many cases. ) Tj ET Q q 0 0 0 rg BT 299.43 414.10 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 49.50 402.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 402.10 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 49.50 390.10 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 49.50 378.10 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 49.50 366.10 Td (our ef) Tj ET Q q 0 0 0 rg BT 72.92 366.10 Td (forts to comply with new or changed laws, regulations and standards dif) Tj ET Q q 0 0 0 rg BT 361.00 366.10 Td (fer from the activities intended by regulatory or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (governing bodies due to ambiguities related to practice, our reputation may also be harmed.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Governmental regulations, including duties, af) Tj ET Q q 0 0 0 rg BT 242.12 334.10 Td (fecting the import or export of products could negatively af) Tj ET Q q 0 0 0 rg BT 484.42 334.10 Td (fect our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 314.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.20 314.10 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 49.50 302.10 Td (including some of those which we sell. In particular) Tj ET Q q 0 0 0 rg BT 256.55 302.10 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 49.50 290.10 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 49.50 278.10 Td (foreign subsidiaries. ) Tj ET Q q 0 0 0 rg BT 132.91 278.10 Td (These products can be subject to a duty on the product value. ) Tj ET Q q 0 0 0 rg BT 379.23 278.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 429.13 278.10 Td (, the United States and various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (foreign governments have imposed tarif) Tj ET Q q 0 0 0 rg BT 209.27 266.10 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 49.50 254.10 Td (some technologies, especially encryption technology) Tj ET Q q 0 0 0 rg BT 260.18 254.10 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 49.50 242.10 Td (regulation of encryption technology) Tj ET Q q 0 0 0 rg BT 192.42 242.10 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 49.50 230.10 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 49.50 218.10 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 454.74 218.10 Td (fect our net sales. From ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (time to time our duty calculations and payments are audited by government agencies. For example, we are currently under audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (in South Korea for customs duties and value-added-tax for the period March 2009 to March 2014. In the event of an adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (audit result, we could be liable for additional payments, duties, taxes and penalties, any of which could have a material adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 170.10 Td (fect on our business or financial position, results of operations, or cash flows. ) Tj ET Q q 0 0 0 rg BT 368.69 170.10 Td (As of October 3, 2015, we have accrued an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (estimated liability of $1.3 million related to this matter) Tj ET Q q 0 0 0 rg BT 268.07 158.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 138.10 Td (In addition, compliance with the directives of the Directorate of Defense ) Tj ET Q q 0 0 0 rg BT 364.49 138.10 Td (T) Tj ET Q q 0 0 0 rg BT 370.24 138.10 Td (rade Controls \(DDTC\) may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (substantial expenses and diversion of management. ) Tj ET Q q 0 0 0 rg BT 256.39 126.10 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 49.50 114.10 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 460.59 114.10 Td (fect on our business or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 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 82.10 Td (Failure to maintain ef) Tj ET Q q 0 0 0 rg BT 140.72 82.10 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 70.10 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 70.10 Td (fect our stock price.) 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In addition, our independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (registered public accounting firm must attest to and report on the ef) Tj ET Q q 0 0 0 rg BT 318.96 706.10 Td (fectiveness of our internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 49.50 682.10 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 49.50 670.10 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 49.50 658.10 Td (file our periodic reports with the SEC, which ultimately could negatively impact our stock price.) 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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 are subject to Section203 of the Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 361.82 490.10 Td (, which prohibits a publicly-held Delaware ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (corporation from engaging in a mer) Tj ET Q q 0 0 0 rg BT 191.77 478.10 Td (ger) Tj ET Q q 0 0 0 rg BT 204.14 478.10 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 49.50 466.10 Td (three years following the date such person became an interested stockholder) Tj ET Q q 0 0 0 rg BT 353.43 466.10 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 49.50 454.10 Td (obtained or as otherwise provided. ) Tj ET Q q 0 0 0 rg BT 189.84 454.10 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 49.50 442.10 Td (acquiring or mer) Tj ET Q q 0 0 0 rg BT 115.96 442.10 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 49.50 430.10 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 49.50 418.10 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 49.50 406.10 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 49.50 394.10 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 50.00 362.10 Td (ITEM 1B.UNRESOL) Tj ET Q q 0 0 0 rg BT 150.77 362.10 Td (VED ST) Tj ET Q q 0 0 0 rg BT 185.87 362.10 Td (AFF) Tj ET Q q 0 0 0 rg BT 204.94 362.10 Td ( COMMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 342.10 Td (Not ) Tj ET Q q 0 0 0 rg BT 90.95 342.10 Td (Applicable.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (ITEM 2.PROPER) Tj ET Q q 0 0 0 rg BT 137.43 310.10 Td (TIES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 290.10 Td (Our corporate headquarters is located in Santa Clara, California. ) Tj ET Q q 0 0 0 rg BT 333.07 290.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.73 290.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.73 290.10 Td (year) Tj ET Q q 0 0 0 rg BT 409.23 290.10 Td (-end, our locations with lar) Tj ET Q q 0 0 0 rg BT 517.08 290.10 Td (ger than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (10,000 square feet were as follows \(all square footage is approximate\) \(unless otherwise indicated, each property is utilized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (jointly by our two segments\):) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 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0 0 0 rg BT 163.00 715.07 Td (square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 725.07 Td (Corporate headquarters,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 715.07 Td (manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 725.07 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 700.07 Td (Santa Clara, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 700.07 Td (90,120 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 700.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 700.07 Td (Leased through July 2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 685.07 Td (Sunnyvale, CA \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 685.07 Td (24,159 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 685.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 685.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 675.07 Td (2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 660.07 Td (Richmond, CA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 660.07 Td (37,952 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 660.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 660.07 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 650.07 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 635.07 Td (Richmond, CA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 635.07 Td (30,683 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 635.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 635.07 Td (Leased through February) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 625.07 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 610.07 Td (Richmond, CA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 610.07 Td (11,500 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 610.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 610.07 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 600.07 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 585.07 Td (Bloomfield, CT \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 585.07 Td (72,996 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 585.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 585.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 575.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 560.07 Td (East Hanover, NJ \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 560.07 Td (29,932 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 560.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 560.07 Td (Leased through January 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 537.07 Td (Wilsonville, OR \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 537.07 Td (41,250 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 537.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 537.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 527.07 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 512.07 Td (Salem, NH\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 512.07 Td (44,153 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 512.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 512.07 Td (Leased through October 2024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 497.07 Td (Dieburg, Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 497.07 Td (32,123 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 497.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 497.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 487.07 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 472.07 Td (Gttingen, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 472.07 Td (7.6 acres of land, several) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 462.07 Td (buildings totaling 136,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 452.07 Td (square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 472.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 472.07 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 436.07 Td (41,328 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 436.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 436.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 426.07 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 411.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 411.07 Td (22,583 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 411.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 411.07 Td (Leased through December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 401.07 Td (2016 with option to purchase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 391.07 Td (building) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 372.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 372.07 Td (8,159 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 372.07 Td (Office, Manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 371.17 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 361.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 347.07 Td (Lbeck, Germany \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 347.07 Td (7,578 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 347.07 Td (Office, Manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 347.07 Td (Leased through December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 337.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 322.07 Td (Kaiserslautern, Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 312.07 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 322.07 Td (33,740 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 322.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 322.07 Td (Leased through September) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 312.07 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 297.07 Td (Glasgow, Scotland \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 297.07 Td (2 acres of land, 31,600 square) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 287.07 Td (feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 297.07 Td (Office, manufacturing, R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 297.07 Td (Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 272.07 Td (Tokyo, Japan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 272.07 Td (17,602 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 272.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 272.07 Td (Leased through April 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 247.07 Td (Shanghai, China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 247.07 Td (11,127 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 247.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 247.07 Td (Leased through May 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 222.07 Td (Beijing, China) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 222.07 Td (10,739 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 222.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 222.07 Td (Leased through July 2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 197.07 Td (Seoul, South Korea) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 197.07 Td (16,474 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 197.07 Td (Office) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 197.07 Td (Leased through June 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 172.07 Td (YongIn-Si, South Korea) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 162.07 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 172.07 Td (33,074 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 172.07 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 172.07 Td (Leased through November) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 162.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 147.07 Td (Kallang Sector,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 137.07 Td (Singapore) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 147.07 Td (31,894 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 147.07 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 147.07 Td (Leased through January 2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 122.07 Td (Penang, Malaysia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 122.07 Td (12,519 square feet) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 122.07 Td (Office, manufacturing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.00 122.07 Td (Leased through August 2017) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 95.00 Td (_________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 83.00 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 83.00 Td (This facility is utilized primarily by our CLC operating segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 71.00 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 71.00 Td (This facility is utilized primarily by our SLS operating segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 59.00 Td (* ) Tj ET Q q 0 0 0 rg BT 113.00 59.00 Td (W) Tj ET Q q 0 0 0 rg BT 121.64 59.00 Td (e currently plan to renew leases on buildings as they expire. ) Tj ET Q endstream endobj 71 0 obj <>] /Rotate 0 /Contents 72 0 R>> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 742.10 Td (e maintain other sales and service of) Tj ET Q q 0 0 0 rg BT 226.46 742.10 Td (fices under varying leases expiring from 2016 through 2020 in Japan, China, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 730.10 Td (aiwan, France, Italy) Tj ET Q q 0 0 0 rg BT 134.17 730.10 Td (, the United Kingdom and the Netherlands.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 710.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 710.10 Td (e consider our facilities to be both suitable and adequate to provide for current and near term requirements and that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (productive capacity in our facilities is substantially being utilized or we have plans to utilize it.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 666.10 Td (ITEM 3.LEGAL) Tj ET Q q 0 0 0 rg BT 131.13 666.10 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 646.10 Td (e are subject to legal claims and litigation arising in the ordinary course of business, such as product liability) Tj ET Q q 0 0 0 rg BT 514.55 646.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 455.92 634.10 Td (. On May 14, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (IMRA) Tj ET Q q 0 0 0 rg BT 75.56 622.10 Td ( ) Tj ET Q q 0 0 0 rg BT 77.51 622.10 Td (America \(Imra\) filed a complaint for patent infringement against two of the Company) Tj ET Q q 0 0 0 rg BT 432.38 622.10 Td (s subsidiaries in the Regional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Court of Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 171.55 610.10 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 264.58 610.10 Td ( ) Tj ET Q q 0 0 0 rg BT 266.53 610.10 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 50.00 598.10 Td (The complaint alleges that the use of certain of our lasers infringe upon EP) Tj ET Q q 0 0 0 rg BT 349.26 598.10 Td ( Patent No. 754,103, entitled Method For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Controlling Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 292.45 586.10 Td (Ablation, issued November 5, 1997 \(the "Patent"\). ) Tj ET Q q 0 0 0 rg BT 500.94 586.10 Td (The Patent, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (now expired in all jurisdictions, is owned by the University of Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 427.52 574.10 Td (The complaint seeks unspecified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (compensatory damages, the cost of court proceedings and seeks to permanently enjoin the Company from infringing the Patent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (in the future. Following the filing of the infringement suit, our subsidiaries filed a separate nullity action with the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (Patent Court in Munich, Germany requesting that the court hold that the Patent was invalid based on prior art. On October 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (2015, the Federal Patent Court ruled that the German portion of the Patent was invalid. Imra has the right to appeal this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (decision to the German Supreme Court. Management has made an accrual with respect to this matter and has determined, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (on its current knowledge, that the amount or range of reasonably possible losses in excess of the amounts already accrued, is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (not reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 153.86 490.10 Td (Although we do not expect that such legal claims and litigation will ultimately have a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.63 478.10 Td (fect on our consolidated financial position, results of operations or cash flows, an adverse result in one or more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (matters could negatively af) Tj ET Q q 0 0 0 rg BT 158.39 466.10 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 351.94 466.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 446.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.70 446.10 Td (fs and duties on the import and export of certain products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (we sell. From time to time our duty calculations and payments are audited by government agencies. ) Tj ET Q q 0 0 0 rg BT 455.82 434.10 Td (W) Tj ET Q q 0 0 0 rg BT 464.46 434.10 Td (e are currently under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (audit in South Korea for customs duties and value added tax for the period March 2009 to March 2014.) Tj ET Q q 0 0 0 rg BT 464.90 422.10 Td (Although we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (expect that the audit will ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 298.60 410.10 Td (fect on our consolidated financial position, results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (or cash flows, an adverse result in this matter could negatively af) Tj ET Q q 0 0 0 rg BT 309.74 398.10 Td (fect our results in the period in which it occurs. ) Tj ET Q q 0 0 0 rg BT 500.52 398.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.71 386.10 Td (, management has accrued an estimated liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.91 386.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.80 386.10 Td ( related to this matter) Tj ET Q q 0 0 0 rg BT 453.22 386.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.98 366.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.73 366.10 Td (ax ) Tj ET Q q 0 0 0 rg BT 101.68 366.10 Td (Audits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 346.10 Td (e are subject to taxation and file income tax returns in the U.S. federal jurisdiction and in many state and foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 341.51 334.10 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 50.00 322.10 Td (major state jurisdictions, the years prior to 2006 and 201) Tj ET Q q 0 0 0 rg BT 275.69 322.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 333.35 322.10 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 50.00 310.10 Td (jurisdictions may remain open for adjustment to the extent that we have tax attribute carryforwards from those years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.10 Td (In December 201) Tj ET Q q 0 0 0 rg BT 141.04 290.10 Td (1 and January 2012, three of our German subsidiaries received notices of tax audits for the fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (2006 through 2010. In fiscal 2013, we received a preliminary assessment for two of the German subsidiaries and the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (was immaterial. In September 2015, the German tax authorities issued preliminary tax findings for the other subsidiary for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (years 2006 to 2010. ) Tj ET Q q 0 0 0 rg BT 131.20 254.10 Td (W) Tj ET Q q 0 0 0 rg BT 139.83 254.10 Td (e believe that we have adequately provided reserves for any adjustments that may result from tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (examinations. ) Tj ET Q q 0 0 0 rg BT 107.77 242.10 Td (A) Tj ET Q q 0 0 0 rg BT 114.44 242.10 Td ( meeting to discuss the findings with the German tax authorities is scheduled in December 2015. In July 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (Coherent Kaiserslautern GmbH \(formerly Lumera Laser GmbH\) received a tax audit notice for the years 2010 to 2013. ) Tj ET Q q 0 0 0 rg BT 528.82 230.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (audit began in ) Tj ET Q q 0 0 0 rg BT 108.60 218.10 Td (August 2015. ) Tj ET Q q 0 0 0 rg BT 164.81 218.10 Td (W) Tj ET Q q 0 0 0 rg BT 173.45 218.10 Td (e acquired the shares of Lumera Laser GmbH in December 2012 and we should not have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (responsibility for any assessments related to the pre-acquisition period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 186.10 Td (Management believes that it has adequately provided reserves for any adjustments that may result from tax examinations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 174.10 Td (e 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 50.00 162.10 Td (reasonably possible that certain federal, foreign and state tax matters may be concluded in the next 12 months. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 125.10 Td (ITEM 4.MINE SAFETY) Tj ET Q q 0 0 0 rg BT 165.47 125.10 Td ( DISCLOSURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 105.10 Td (Not applicable.) Tj ET Q endstream endobj 73 0 obj <>] /Rotate 0 /Contents 74 0 R>> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q 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 (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.00 602.83 Td (2014) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 577.32 Td (65.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 577.32 Td (54.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 577.32 Td (74.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 577.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 577.32 Td (61.00) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 563.32 Td (67.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 563.32 Td (54.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 563.32 Td (75.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 563.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 563.32 Td (63.90) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 549.32 Td (68.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 549.32 Td (60.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 549.32 Td (68.77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 549.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 549.32 Td (56.68) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 535.32 Td (63.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 535.32 Td (53.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 535.32 Td (67.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 535.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 535.32 Td (58.46) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 511.25 Td (The number of stockholders of record as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.50 511.25 Td (November30, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.21 511.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.76 511.25 Td (780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.76 511.25 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 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.84 487.25 Td ($24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.73 487.25 Td ( 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 2015) 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 72.50 423.25 Td (Stock repurchases during the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.38 423.25 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.54 423.25 Td ( were as follows:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 344.75 177.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.50 344.75 76.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 344.75 9.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 344.75 77.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 344.75 9.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 344.75 77.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 344.75 8.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 344.75 77.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 310.75 177.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.50 310.75 76.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 303.50 310.75 9.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 310.75 77.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 310.75 9.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 310.75 77.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 310.75 8.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 310.75 77.00 -17.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50.5 344.75 m 227.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 344.75 m 303.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 344.75 m 389.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 344.75 m 475.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 344.75 m 560.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 344.75 m 560.5 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 293.75 m 303.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 277.75 m 303.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227.5 275.75 m 303.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 293.75 m 389.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 277.75 m 389.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 275.75 m 389.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 293.75 m 475.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 277.75 m 475.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 275.75 m 475.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 293.75 m 560.5 293.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 277.75 m 560.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 275.75 m 560.5 275.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 348.98 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.25 372.98 Td (T) Tj ET Q q 0 0 0 rg BT 260.85 372.98 Td (otal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.50 364.98 Td (Number) Tj ET Q q 0 0 0 rg BT 274.80 364.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.50 356.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 269.80 356.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 247.05 348.98 Td (Pur) Tj ET Q q 0 0 0 rg BT 259.79 348.98 Td (chased) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 307.50 347.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.90 356.98 Td (Average Price Paid) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.85 348.98 Td (per Share) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 393.50 347.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.25 380.98 Td (T) Tj ET Q q 0 0 0 rg BT 412.85 380.98 Td (otal Number) Tj ET Q q 0 0 0 rg BT 456.04 380.98 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.50 372.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 417.80 372.98 Td (es Pur) Tj ET Q q 0 0 0 rg BT 439.21 372.98 Td (chased as) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.60 364.98 Td (Partof Publicly) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.85 356.98 Td (Announced Plans or) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.65 348.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 427.94 348.98 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.00 349.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.90 380.98 Td (Maximum Dollar) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.20 372.98 Td (V) Tj ET Q q 0 0 0 rg BT 500.24 372.98 Td (alue that May) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.55 364.98 Td (Y) Tj ET Q q 0 0 0 rg BT 496.44 364.98 Td (et Be Pur) Tj ET Q q 0 0 0 rg BT 528.28 364.98 Td (chased) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.30 356.98 Td (Under) Tj ET Q q 0 0 0 rg BT 510.93 356.98 Td ( the Plans or) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.00 348.98 Td (Pr) Tj ET Q q 0 0 0 rg BT 507.29 348.98 Td (ograms \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 332.42 Td (July 5, 2015 - August 1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 332.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 332.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 332.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 332.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 332.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 332.42 Td (25,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 315.42 Td (August 2, 2015 - August 29, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 315.42 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 315.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 315.42 Td (58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 315.42 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 315.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 315.42 Td (25,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 298.42 Td (August 30, 2015 - October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 298.42 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 298.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 298.42 Td (57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 298.42 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 298.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 298.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 281.42 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 281.42 Td (868,209) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 306.00 279.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 281.42 Td (57.59) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 392.00 279.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 281.42 Td (868,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 281.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 281.42 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 255.25 Td (\(1\) On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.88 255.25 Td (January21, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.48 255.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.37 255.25 Td (August25, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.76 255.25 Td (, the Board of Directors authorized buyback programs whereby the Company was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 243.25 Td (authorized to repurchase up to $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.56 243.25 Td (25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.06 243.25 Td ( million of its common stock in each program from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.68 243.25 Td (January31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.28 243.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 231.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.39 231.25 Td (August31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.78 231.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 185.44 231.25 Td (. During the fourth quarter of fiscal 2015, the Company repurchased and retired outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 219.25 Td (common stock for a total of $50.0 million, completing both programs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 199.25 Td (Refer to Note 1) Tj ET Q q 0 0 0 rg BT 134.05 199.25 Td (1 "Stock Repurchases and Dividends" of our Notes to Consolidated Financial Statements under Item15 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.25 Td (this annual report for discussion on additional repurchases during fiscal 2015.) Tj ET Q endstream endobj 75 0 obj <>] /Rotate 0 /Contents 76 0 R>> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (35) Tj ET Q BT /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 (October2, 2010) 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.14 690.25 Td ( comparing the return on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (common stock with the Russell 2000 Index, the Standard and Poors ) Tj ET Q q 0 0 0 rg BT 323.12 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 328.53 678.25 Td (echnology Index and the Nasdaq Composite Index. ) Tj ET Q q 0 0 0 rg BT 535.52 678.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (stock price performance shown on the following graph is not necessarily indicative of future price performance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 94.35 646.25 Td (COMP) Tj ET Q q 0 0 0 rg BT 124.15 646.25 Td (ARISON OF) Tj ET Q q 0 0 0 rg BT 179.07 646.25 Td ( FIVE-YEAR CUMULA) Tj ET Q q 0 0 0 rg BT 283.88 646.25 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 310.65 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 317.14 646.25 Td (OT) Tj ET Q q 0 0 0 rg BT 330.84 646.25 Td (AL) Tj ET Q q 0 0 0 rg BT 344.18 646.25 Td ( RETURN ) Tj ET Q q 0 0 0 rg BT 390.86 646.25 Td (AMONG COHERENT) Tj ET Q q 0 0 0 rg BT 489.29 646.25 Td (,INC.,) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.55 626.25 Td (THE RUSSELL) Tj ET Q q 0 0 0 rg BT 221.19 626.25 Td ( 2000 INDEX, ) Tj ET Q q 0 0 0 rg BT 283.24 626.25 Td (THE S&P) Tj ET Q q 0 0 0 rg BT 326.30 626.25 Td ( ) Tj ET Q q 0 0 0 rg BT 328.62 626.25 Td (TECHNOLOGY) Tj ET Q q 0 0 0 rg BT 401.04 626.25 Td ( INDEX ) Tj ET Q q 0 0 0 rg BT 437.72 626.25 Td (AND) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 222.65 606.25 Td (THE NASDAQ COMPOSITE INDEX.) Tj ET Q /GS0 gs q 512.00 0 0 237.95 50.00 355.31 cm /I19 Do Q 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 300.5 323.79999999999995 m 349.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 323.79999999999995 m 353.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 323.79999999999995 m 402.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 323.79999999999995 m 406.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 323.79999999999995 m 455.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 323.79999999999995 m 459.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 323.79999999999995 m 508.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 323.79999999999995 m 512.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 323.79999999999995 m 561.5 323.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 303.79999999999995 m 296.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 303.79999999999995 m 349.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 303.79999999999995 m 353.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 303.79999999999995 m 402.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 303.79999999999995 m 406.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 303.79999999999995 m 455.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.5 303.79999999999995 m 459.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 303.79999999999995 m 508.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 303.79999999999995 m 512.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 303.79999999999995 m 561.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 303.79999999999995 m 296.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 291.79999999999995 m 296.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 303.79999999999995 m 349.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 291.79999999999995 m 349.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 303.79999999999995 m 402.5 303.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 291.79999999999995 m 402.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 291.79999999999995 m 455.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 291.79999999999995 m 508.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 291.79999999999995 m 561.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 291.79999999999995 m 296.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 291.79999999999995 m 349.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 291.79999999999995 m 402.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 291.79999999999995 m 455.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.5 291.79999999999995 m 508.5 291.79999999999995 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 291.79999999999995 m 561.5 291.79999999999995 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 327.53 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 254.00 327.53 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.90 328.03 Td (INDEXED RETURNS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 308.03 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.50 315.88 Td (Base) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.15 307.88 Td (Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.45 308.03 Td (Years Ending) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 295.88 Td (Company Name / Index) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.25 295.88 Td (10/2/2010) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.45 295.88 Td (10/1/2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.25 295.88 Td (9/29/2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.25 295.88 Td (9/28/2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.25 295.88 Td (9/27/2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.25 295.88 Td (10/3/2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 282.37 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 282.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 282.37 Td (106.87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 282.37 Td (114.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 282.37 Td (155.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 282.37 Td (159.81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 282.37 Td (138.83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 268.37 Td (Russell 2000 Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 268.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 268.37 Td (96.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 268.37 Td (126.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 268.37 Td (164.79) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 268.37 Td (173.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 268.37 Td (175.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 254.37 Td (S&P Technology Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 254.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 254.37 Td (103.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 254.37 Td (137.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 254.37 Td (147.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 254.37 Td (189.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 254.37 Td (197.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 240.37 Td (NASDAQ Composite Index) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.00 240.37 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 240.37 Td (102.87) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 240.37 Td (134.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.50 240.37 Td (165.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 240.37 Td (199.61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 240.37 Td (210.72) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 216.30 Td (The information contained above under the caption "Company Stock Price Performance" shall not be deemed to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.30 Td ("soliciting material" or to be "filed" with the SEC, nor will such information be incorporated by reference into any future SEC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 192.30 Td (filing except to the extent that we specifically incorporate it by reference into such filing.) Tj ET Q endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (36) Tj ET Q BT /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 (2015) 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 (2014) 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 (2013) 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 (2015) 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 (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.46 666.25 Td (year) Tj ET Q q 0 0 0 rg BT 216.96 666.25 Td (-end from our audited consolidated financial statements, and accompanying notes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (contained in this annual report. ) Tj ET Q q 0 0 0 rg BT 176.45 654.25 Td (The consolidated statements of operations data for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.71 654.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.71 654.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 654.25 Td (201) Tj ET Q q 0 0 0 rg BT 458.77 654.25 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.77 654.25 Td ( and the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (balance sheet data as of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.05 642.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.05 642.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.05 642.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.05 642.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.49 642.25 Td (201) Tj ET Q q 0 0 0 rg BT 250.12 642.25 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.12 642.25 Td (year) 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 246.80 595.83 Td (2015 \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.50 603.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.50 595.83 Td (2014) 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 376.80 595.83 Td (2013 \(2\)) 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 441.80 595.83 Td (2012 \(3\)) 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 512.05 595.83 Td (2011 \(4\)) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 570.32 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 570.32 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 570.32 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 570.32 Td (769,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 570.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 570.32 Td (802,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 556.32 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 556.32 Td (335,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 556.32 Td (313,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 556.32 Td (322,271) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 556.32 Td (315,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 556.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 556.32 Td (350,822) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 542.32 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 542.32 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 542.32 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 542.32 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 542.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 542.32 Td (62,962) 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 (93,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 528.32 Td (Net income per share\(5\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 528.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 528.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 528.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 514.32 Td (Basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.15 514.32 Td (3.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 514.32 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 514.32 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 514.32 Td (2.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 514.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 514.32 Td (3.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 500.32 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.15 500.32 Td (3.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 500.32 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 500.32 Td (2.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 500.32 Td (2.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 500.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 500.32 Td (3.66) 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 (24,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 472.32 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 472.32 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 472.32 Td (23,561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 472.32 Td (24,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 458.32 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 458.32 Td (24,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 458.32 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 458.32 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 458.32 Td (24,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 458.32 Td (25,464) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 444.32 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 444.32 Td (999,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 444.32 Td (966,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 444.32 Td (880,772) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 444.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 444.32 Td (843,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 430.32 Td (Other long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 430.32 Td (49,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 430.32 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 430.32 Td (62,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 430.32 Td (55,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 430.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 430.32 Td (62,860) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.15 416.32 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.15 416.32 Td (819,649) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 416.32 Td (758,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 416.32 Td (671,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.00 416.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 416.32 Td (618,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 402.32 Td (Other data:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 388.32 Td (Cash dividends declared per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.65 388.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 388.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 388.32 Td (1.00) 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 8.00 Tf ET q 0 0 0 rg BT 148.00 374.65 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 char) Tj ET Q q 0 0 0 rg BT 137.34 353.65 Td (ge of $1.3 million after tax for the impairment of our investment in SiOnyx, a $1.3 million after) Tj ET Q q 0 0 0 rg BT 519.84 353.65 Td (-tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 341.65 Td (char) Tj ET Q q 0 0 0 rg BT 94.03 341.65 Td (ge for an accrual related to an ongoing customs audit, a benefit of $1.1 million from the renewal of the R&D tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 329.65 Td (credit for fiscal 2014 and $1.3 million gain on our purchase of ) Tj ET Q q 0 0 0 rg BT 328.14 329.65 Td (T) Tj ET Q q 0 0 0 rg BT 333.90 329.65 Td (insley in the fourth quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 308.65 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 308.65 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 50.00 287.65 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 287.65 Td (Includes a char) Tj ET Q q 0 0 0 rg BT 137.34 287.65 Td (ge of $4.3 million after tax related to the write-of) Tj ET Q q 0 0 0 rg BT 333.76 287.65 Td (f of previously acquired intangible assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 275.65 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 77.00 263.65 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 50.00 242.65 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 242.65 Td (Includes 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 77.00 230.65 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 77.00 218.65 Td (a $1.5 million tax char) Tj ET Q q 0 0 0 rg BT 167.07 218.65 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 50.00 197.65 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 197.65 Td (See Note2, "Significant ) Tj ET Q q 0 0 0 rg BT 175.79 197.65 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 77.00 185.65 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 77.00 173.65 Td (share.) Tj ET Q endstream endobj 79 0 obj <>] /Rotate 0 /Contents 80 0 R>> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (37) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (ITEM 7.MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 245.64 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 269.26 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 296.67 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 334.92 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 393.54 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 456.89 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 513.48 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 541.73 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (OPERA) Tj ET Q q 0 0 0 rg BT 83.76 730.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (The following discussion and analysis of our financial condition and results of operations should be read in conjunction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (with our Consolidated Financial Statements and related notes included in Item8, "Financial Statements and Supplementary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Data" in this annual report. ) Tj ET Q q 0 0 0 rg BT 160.04 686.25 Td (This discussion contains forward-looking statements, which involve risks and uncertainties. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (actual results could dif) Tj ET Q q 0 0 0 rg BT 140.13 674.25 Td (fer materially from those anticipated in the forward-looking statements as a result of certain factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (including but not limited to those discussed in Item 1A,"Risk Factors" and elsewhere in this annual report. Please see the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (discussion of forward-looking statements at the beginning of this annual report under "Special Note Regarding Forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (Looking Statements.") Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (KEY) Tj ET Q q 0 0 0 rg BT 70.80 618.25 Td ( PERFORMANCE INDICA) Tj ET Q q 0 0 0 rg BT 190.61 618.25 Td (T) Tj ET Q q 0 0 0 rg BT 197.10 618.25 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 598.25 Td (Below is a summary of some of the quantitative performance indicators \(as defined below\) that are evaluated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (management to assess our financial performance. Some of the indicators are non-GAAP) Tj ET Q q 0 0 0 rg BT 401.79 586.25 Td ( measures and should not be considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (as an alternative to any other measure for determining operating performance that is calculated in accordance with generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (accepted accounting principles.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 511.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 511.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 511.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 511.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 481.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 481.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 481.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 481.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 451.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 451.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 451.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 451.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 408.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 408.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 408.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 378.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 378.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 378.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 348.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 348.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 348.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 318.75 312.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 362.00 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 422.00 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 426.00 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 318.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 537.75 m 422 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 422 537.75 m 426 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 537.75 m 486 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 537.75 m 490 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 537.75 m 550 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 537.75 m 422 537.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 524.75 m 422 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426 524.75 m 486 524.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 524.75 m 550 524.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 205.50 542.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.50 541.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 528.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.50 528.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.50 528.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.50 528.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 515.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.70 515.98 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 501.42 Td (Bookings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 501.42 Td (765,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 501.42 Td (890,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 501.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 501.42 Td (767,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 486.42 Td (Book-to-bill ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 486.42 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 486.42 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 486.42 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 471.42 Td (Net SalesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 471.42 Td (559,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 471.42 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 471.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 471.42 Td (571,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 456.42 Td (Net SalesCommercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 456.42 Td (242,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 456.42 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 456.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 456.42 Td (238,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 441.42 Td (Gross Profit as a Percentage of Net SalesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 441.42 Td (45.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 441.42 Td (42.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 441.42 Td (41.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 441.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 423.42 Td (Gross Profit as a Percentage of Net SalesCommercial Lasers and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.42 Td (Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 413.42 Td (34.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 413.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 413.42 Td (33.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 413.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 413.42 Td (36.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 413.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.42 Td (Research and Development Expenses as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 398.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 398.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 398.42 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 398.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 398.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 398.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 383.42 Td (Income Before Income Taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 383.42 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 383.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 383.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 383.42 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 368.42 Td (Net Cash Provided by Operating Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 368.42 Td (124,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.50 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 368.42 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 368.42 Td (115,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 353.42 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 353.42 Td (63.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 353.42 Td (62.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 353.42 Td (60.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 338.42 Td (Annualized Fourth Quarter Inventory Turns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 338.42 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 338.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 338.42 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 323.42 Td (Capital Spending as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 323.42 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 323.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 323.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 323.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 323.42 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 323.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 308.42 Td (Net Income as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 308.42 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 308.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 308.42 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 308.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 308.42 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 308.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 293.42 Td (Adjusted EBITDA as a Percentage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 293.42 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.15 293.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 293.42 Td (17.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 293.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 293.42 Td (17.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 293.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 269.25 Td (Definitions and analysis of these performance indicators are as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (Bookings and Book-to-Bill Ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 229.25 Td (Bookings represent orders received during the current period for products and services to be provided pursuant to service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (contracts. ) Tj ET Q q 0 0 0 rg BT 90.41 217.25 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 49.50 205.25 Td (customers without substantial penalty and, therefore, we cannot assure all bookings will be converted to net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 185.25 Td (The book-to-bill ratio is calculated as annual bookings divided by annual net sales. ) Tj ET Q q 0 0 0 rg BT 407.12 185.25 Td (This is an indication of the strength of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (our business but can sometimes be impacted by a single lar) Tj ET Q q 0 0 0 rg BT 285.93 173.25 Td (ge order or a single lar) Tj ET Q q 0 0 0 rg BT 375.99 173.25 Td (ge shipment. ) Tj ET Q q 0 0 0 rg BT 429.04 173.25 Td (A) Tj ET Q q 0 0 0 rg BT 435.71 173.25 Td ( ratio greater than 1.0 indicates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (that demand for our products is greater than what we supply in the year whereas a ratio of less than 1.0 indicates that demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (for our products is less than what we supply in the year) Tj ET Q q 0 0 0 rg BT 269.73 149.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 129.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.89 129.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.89 129.25 Td ( bookings decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.47 129.25 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.80 129.25 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.84 129.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.84 129.25 Td ( and our book-to-bill ratio decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.06 129.25 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.56 129.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 117.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 117.25 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.78 117.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 117.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 117.25 Td (. ) Tj ET Q q 0 0 0 rg BT 161.53 117.25 Td (The bookings decrease included decreases in the microelectronics \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.86 117.25 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.19 117.25 Td (\), OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.25 Td (instrumentation \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.10 105.25 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.43 105.25 Td (\), materials processing \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.51 105.25 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.84 105.25 Td (\) and scientific \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.09 105.25 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.42 105.25 Td (\) markets. ) Tj ET Q q 0 0 0 rg BT 366.35 105.25 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.78 105.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.78 105.25 Td ( bookings decreased, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.25 Td (bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.40 93.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.40 93.25 Td ( increased 16% from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.83 93.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.83 93.25 Td (, with increases in all four ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.25 Td (markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 61.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.89 61.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.89 61.25 Td ( bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.81 61.25 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.14 61.25 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.18 61.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.18 61.25 Td ( and our book-to-bill ratio increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.74 61.25 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.24 61.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 49.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 49.25 Td (1.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.78 49.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 49.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 49.25 Td (. ) Tj ET Q q 0 0 0 rg BT 161.53 49.25 Td (The bookings increase included increases in the microelectronics \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.54 49.25 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.87 49.25 Td (\) and OEM components and ) Tj ET Q endstream endobj 81 0 obj <>] /Rotate 0 /Contents 82 0 R>> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (instrumentation \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.10 742.10 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.43 742.10 Td (\) markets partially of) Tj ET Q q 0 0 0 rg BT 220.38 742.10 Td (fset by decreases in the materials processing \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.37 742.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.70 742.10 Td (\) and scientific \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.95 742.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.28 742.10 Td (\) markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.93 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.93 730.10 Td ( bookings increased, bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.26 730.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.26 730.10 Td ( decreased 25% from the third quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 718.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 718.10 Td ( , with decreases in the microelectronics, OEM components and instrumentation and materials processing markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.47 706.10 Td (fset by increases in the scientific market. ) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 684.7669921875 m 117.2490234375 684.7669921875 l s q 0 0 0 rg BT 49.50 686.10 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 666.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.93 666.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.93 666.10 Td ( bookings decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.52 666.10 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.85 666.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.89 666.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.89 666.10 Td ( and the book-to-bill ratio for the year was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (0.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 654.10 Td (, bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.90 654.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.90 654.10 Td ( increased 7% from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.33 654.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.33 654.10 Td ( primarily due to increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (systems orders net of lower service orders for the flat panel display market and higher semiconductor applications orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.10 Td (Flat panel display orders for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.90 622.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.90 622.10 Td ( decreased 30% from orders in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.01 622.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.01 622.10 Td ( primarily due to the timing and mix of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (order placement by customers. Fourth quarter fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.88 610.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.88 610.10 Td ( orders were higher than those in the third quarter of fiscal 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (primarily due to higher systems orders from liquid crystal display \("LCD"\) fabs for Linebeam 750s net of lower service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (bookings.) 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 88.67 586.10 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 90.99 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 99.63 586.10 Td (e expect continued fluctuations in order volumes on a quarterly basis.) 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 377.60 586.10 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 379.92 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 388.56 586.10 Td (e shipped the first, second and third ) Tj ET Q q 0 0 0 rg BT 533.34 586.10 Td (T) Tj ET Q q 0 0 0 rg BT 539.10 586.10 Td (riple ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.61 574.10 Td (yper) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 73.38 578.63 Td (TM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.13 574.10 Td ( Linebeam 1500 systems in the first, second and fourth quarters of fiscal 2015, respectively) Tj ET Q q 0 0 0 rg BT 447.38 574.10 Td (. Subsequent to year) Tj ET Q q 0 0 0 rg BT 528.28 574.10 Td (-end, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (we received additional orders totaling approximately $45 million for a combination of single and twin ) Tj ET Q q 0 0 0 rg BT 460.05 562.10 Td (V) Tj ET Q q 0 0 0 rg BT 466.16 562.10 Td (yper systems. ) Tj ET Q q 0 0 0 rg BT 522.92 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 531.56 562.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (expect significant opportunities to develop for or) Tj ET Q q 0 0 0 rg BT 244.82 550.10 Td (ganic light-emitting diode \("OLED"\) production as several smartphone ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (manufacturers have either decided to or are evaluating a shift to OLED displays in their devices. Because of nuances in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (manufacturing process, production of the highest resolution OLEDs has only been achieved with ) Tj ET Q q 0 0 0 rg BT 439.22 526.10 Td (T) Tj ET Q q 0 0 0 rg BT 444.63 526.10 Td (win ) Tj ET Q q 0 0 0 rg BT 461.95 526.10 Td (V) Tj ET Q q 0 0 0 rg BT 468.06 526.10 Td (yper/Linebeam 1300 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (or ) Tj ET Q q 0 0 0 rg BT 60.15 514.10 Td (T) Tj ET Q q 0 0 0 rg BT 65.91 514.10 Td (riple ) Tj ET Q q 0 0 0 rg BT 86.55 514.10 Td (V) Tj ET Q q 0 0 0 rg BT 92.66 514.10 Td (yper/Linebeam 1500 systems. ) Tj ET Q q 0 0 0 rg BT 214.68 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 223.32 514.10 Td (e expect any new OLED capacity would adhere to these standards. Our recent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (acquisition of ) Tj ET Q q 0 0 0 rg BT 106.53 502.10 Td (T) Tj ET Q q 0 0 0 rg BT 112.29 502.10 Td (insley Optics provides a dedicated, cost-ef) Tj ET Q q 0 0 0 rg BT 281.50 502.10 Td (fective solution for lar) Tj ET Q q 0 0 0 rg BT 370.45 502.10 Td (ge form optics to help facilitate deliveries. ) Tj ET Q q 0 0 0 rg BT 541.88 502.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (combination of order volume and the customers) Tj ET Q q 0 0 0 rg BT 243.70 490.10 Td ( ability to qualify and ramp production lines will extend into fiscal 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 470.10 Td (Advanced packaging \("API"\) orders increased 9% for the full fiscal year) Tj ET Q q 0 0 0 rg BT 363.37 470.10 Td (, but fourth quarter fiscal 2015 orders were flat ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (from orders in the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.11 458.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.11 458.10 Td (.) 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 233.61 458.10 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 235.56 458.10 Td (API equipment manufacturers have adopted a more cautionary posture for legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (products based on recent trends in the semiconductor market. ) Tj ET Q q 0 0 0 rg BT 297.02 446.10 Td (W) Tj ET Q q 0 0 0 rg BT 305.66 446.10 Td (e believe that flex packaging and system in package \("SiP"\) are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (two applications that are promising. Flex packaging, which relies upon UV) Tj ET Q q 0 0 0 rg BT 349.81 434.10 Td ( lasers, is used in mobile and wearable devices and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (several systems manufacturers have seen strength in this area. SiP) Tj ET Q q 0 0 0 rg BT 312.94 422.10 Td ( has been building momentum in mobile devices and future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (smartphones are likely to incorporate more SiP) Tj ET Q q 0 0 0 rg BT 237.42 410.10 Td ( design elements, which will lead to an increase in ultrafast lasers for packaging.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.10 Td (Orders from semiconductor capital equipment OEMs decreased 9% for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.06 390.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.06 390.10 Td (, but were higher in the fourth quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.49 378.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.49 378.10 Td ( compared to the prior quarter due to increases in wafer inspection 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 422.98 378.10 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 425.48 378.10 Td (Service orders remain strong due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (to high utilization rates in most fabs and orders for new equipment are tied to specific end user investments. ) Tj ET Q q 0 0 0 rg BT 483.09 366.10 Td (These positives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (have been mostly of) Tj ET Q q 0 0 0 rg BT 130.13 354.10 Td (fset by falling chip prices that curb investment as well as another round of consolidation of OEMs and chip ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (makers leading to the inevitable spending cost reductions. ) Tj ET Q q 0 0 0 rg BT 283.43 342.10 Td (These factors are already included in our current run rate so we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (believe further downside risk is minimal.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 308.7669921875 m 207.537109375 308.7669921875 l s q 0 0 0 rg BT 49.50 310.10 Td (OEM Components and Instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 290.10 Td (Bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.77 290.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.77 290.10 Td ( decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.19 290.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.52 290.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.11 290.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.11 290.10 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 472.00 290.10 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 290.10 Td (. However) Tj ET Q q 0 0 0 rg BT 530.75 290.10 Td (, orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (in the fourth quarter of fiscal 2015 increased 34% from orders in the third quarter of fiscal 2015 due to strength in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (instrumentation applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 246.10 Td (Instrumentation orders increased 17% for the full fiscal year and fourth quarter fiscal 2015 orders increased 90% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (compared to the third quarter of fiscal 2015 due to timing of orders. Our bioinstrumentation business has benefitted from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (growth in personalized medicine, which has driven sales in clinical flow cytometry for our OBIS and HOPS products. ) Tj ET Q q 0 0 0 rg BT 543.26 222.10 Td (W) Tj ET Q q 0 0 0 rg BT 551.90 222.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (are making further strides in the high-speed gene sequencing market where the throughput requirements are out-of-reach for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (visible diodes or LEDs. Our outlook for bioinstrumentation is positive and there is a modest resur) Tj ET Q q 0 0 0 rg BT 439.81 198.10 Td (gence in worldwide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (biopharmaceutical R&D.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 166.10 Td (Orders for medical OEM products decreased 41% for the full fiscal 2015 and fourth quarter fiscal 2015 orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (30% compared to the third quarter of fiscal 2015. In spite of the decrease in orders, the medical OEM market remains strong. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (There are long-term opportunities on the therapeutic side of the instrumentation business, although there have been some short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (term inventory corrections amid consumer confidence and China growth concerns, which we believe is a short-term ef) Tj ET Q q 0 0 0 rg BT 523.32 130.10 Td (fect. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (terms of new opportunities, we are making steady progress in qualifying our Monaco product in various cataract platforms. ) Tj ET Q q 0 0 0 rg BT 554.17 118.10 Td (A) Tj ET Q q 0 0 0 rg BT 560.84 118.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (major research institution has achieved very encouraging initial results using our new CO laser for sur) Tj ET Q q 0 0 0 rg BT 457.82 106.10 Td (gical procedures, citing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (the absorption characteristics of CO versus CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 237.79 92.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.04 94.10 Td ( as the key dif) Tj ET Q q 0 0 0 rg BT 296.95 94.10 Td (ferentiator) Tj ET Q q 0 0 0 rg BT 338.04 94.10 Td (. In addition, our major dental customer has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (experienced positive customer reaction to its new product which contains our CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 375.24 80.67 Td (2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.12 82.10 Td (laser) Tj ET Q q 0 0 0 rg BT 398.44 82.10 Td (.) 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 49.50 62.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52 60.76699218750002 m 135.59375 60.76699218750002 l s q 0 0 0 rg BT 52.00 62.10 Td (Materials Processing) Tj ET Q endstream endobj 83 0 obj <>] /Rotate 0 /Contents 84 0 R>> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 742.10 Td (Annual bookings decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.52 742.10 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.85 742.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.45 742.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.45 742.10 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.04 742.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.04 742.10 Td ('s book-to-bill ratio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.38 742.10 Td (1.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.88 742.10 Td (. However) Tj ET Q q 0 0 0 rg BT 488.13 742.10 Td (, bookings in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.24 730.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.24 730.10 Td ( were strong and increased 28% from the prior quarter due to strength in non-metal cutting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (marking applications. Bookings volumes in our materials processing business can vary significantly from quarter to quarter) Tj ET Q q 0 0 0 rg BT 542.72 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 547.54 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 556.18 718.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (have been working to broaden our participation in the textile business, specifically for denim processing where lasers are used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (to create design elements including patterning, texture and color) Tj ET Q q 0 0 0 rg BT 305.80 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 310.62 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 319.26 694.10 Td (e secured two volume orders for CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 464.77 692.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.02 694.10 Td ( lasers in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (quarter of fiscal 2015 that resulted in record orders for marking. Orders for cutting and converting were also strong, including a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (number of projects related to consumer packaging. ) Tj ET Q q 0 0 0 rg BT 254.80 670.10 Td (The level of engagement with potential customers on our second generation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (fiber laser is encouraging and customer testing has gone well. ) Tj ET Q q 0 0 0 rg BT 298.41 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 307.05 658.10 Td (e are still in the process of becoming qualified for deployment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (with various OEMs. ) Tj ET Q q 0 0 0 rg BT 132.65 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 141.29 646.10 Td (e continue to view fiscal 2016 as a year for initial orders with a volume ramp occurring in fiscal 2017.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 49.5 624.7669921875 m 198.07421875 624.7669921875 l s q 0 0 0 rg BT 49.50 626.10 Td (Scientific and Government Programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 606.10 Td (Although fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.93 606.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.93 606.10 Td ( orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.84 606.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.17 606.10 Td ( from bookings in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.21 606.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.21 606.10 Td (, the book-to-bill ratio for the year was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.66 606.10 Td (1.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.16 606.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (Orders in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.95 594.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.95 594.10 Td ( increased 15% from the third quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.37 594.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.37 594.10 Td ( as the European and U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (markets delivered a typically strong performance in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.04 582.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.04 582.10 Td (. ) Tj ET Q q 0 0 0 rg BT 390.86 582.10 Td (The sequential order growth was led by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (our Chameleon product family for multi-photon imaging, especially in neuroscience, where the U.S. BRAIN initiative is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (driving investment. By contrast, we have seen limited benefit from Europe) Tj ET Q q 0 0 0 rg BT 351.09 558.10 Td (s Human Brain Project which emphasizes computer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (modeling over imaging. ) Tj ET Q q 0 0 0 rg BT 147.26 546.10 Td (Amplifier orders for time-resolved studies came in strong across the three major geographies and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (continued a near) Tj ET Q q 0 0 0 rg BT 115.38 534.10 Td (-term trend of securing orders for high-performance amplifiers from multi-user free electron and accelerator ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (facilities with the recent orders coming from European labs. In addition, our core ) Tj ET Q q 0 0 0 rg BT 375.78 522.10 Td (Astrella and Libra amplifier products did ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (well particularly in the U.S. during the fourth quarter of fiscal 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 470.10 Td (Net sales include sales of lasers, laser tools, related accessories and service. Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.30 470.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 470.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.05 470.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.88 470.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 458.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 458.10 Td (. Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.85 458.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.85 458.10 Td ( decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.26 458.10 Td (1.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.09 458.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.69 458.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.69 458.10 Td (. For a description of the reasons for changes in net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (refer to the "Results of Operations" section below) Tj ET Q q 0 0 0 rg BT 247.80 446.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 61.54 426.10 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.19 426.10 Td (ofit as a Per) Tj ET Q q 0 0 0 rg BT 137.82 426.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 406.10 Td (Gross profit as a percentage of net sales \("gross profit percentage"\) is calculated as gross profit for the period divided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (net sales for the period. Gross profit percentage for SLS increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.36 394.10 Td (45.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.19 394.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.12 394.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.12 394.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.56 394.10 Td (42.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.39 394.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.32 394.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.32 394.10 Td ( and from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (41.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 382.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.26 382.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.26 382.10 Td (. Gross profit percentage for CLC increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.26 382.10 Td (34.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.09 382.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.02 382.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.02 382.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.46 382.10 Td (33.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.29 382.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.22 382.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.22 382.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.35 370.10 Td (36.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.18 370.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.12 370.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.12 370.10 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 49.50 358.10 Td (Operations" section below) Tj ET Q q 0 0 0 rg BT 154.57 358.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 78.75 338.10 Td (ch and Development as a Per) Tj ET Q q 0 0 0 rg BT 202.17 338.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 318.10 Td (Research and development as a percentage of net sales \("R&D percentage"\) is calculated as research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (expense for the period divided by net sales for the period. Management considers R&D percentage to be an important indicator ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (in managing our business as investing in new technologies is a key to future growth. R&D percentage increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.94 294.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.77 294.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 282.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.26 282.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.26 282.10 Td ( and remained flat from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.17 282.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.00 282.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.93 282.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.93 282.10 Td (. For a description of the reasons for changes in R&D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (spending refer to the "Results of Operations" section below) Tj ET Q q 0 0 0 rg BT 286.40 270.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (Net Cash Pr) Tj ET Q q 0 0 0 rg BT 101.53 250.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 191.27 250.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 230.10 Td (Net cash provided by operating activities shown on our Consolidated Statements of Cash Flows primarily represents the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (excess of cash collected from billings to our customers and other receipts over cash paid to our vendors for expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (inventory purchases to run our business. ) Tj ET Q q 0 0 0 rg BT 212.90 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 221.54 206.10 Td (e believe that cash flows from operations are an important performance indicator ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (because cash generation over the long term is essential to maintaining a healthy business and providing funds to help fuel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (growth. For a description of the reasons for changes in Net Cash Provided by Operating ) Tj ET Q q 0 0 0 rg BT 402.76 182.10 Td (Activities refer to the "Liquidity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (Capital Resources" section below) Tj ET Q q 0 0 0 rg BT 183.18 170.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 130.10 Td (e calculate days sales outstanding \("DSO"\) in receivables as net receivables at the end of the period divided by net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (during the period and then multiplied by the number of days in the period, using 360days for years. DSO in receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (indicates how well we are managing our collection of receivables, with lower DSO in receivables resulting in higher working ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (capital availability) Tj ET Q q 0 0 0 rg BT 122.99 94.10 Td (. ) Tj ET Q q 0 0 0 rg BT 127.81 94.10 Td (The more money we have tied up in receivables, the less money we have available for research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (development, acquisitions, expansion, marketing and other activities to grow our business. Our DSO in receivables for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 70.10 Td ( increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.53 70.10 Td (63.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.03 70.10 Td (days from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.30 70.10 Td (62.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.80 70.10 Td ( days in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.56 70.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.56 70.10 Td (. ) Tj ET Q q 0 0 0 rg BT 285.38 70.10 Td (The increase in DSO in receivables is primarily due to a higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (concentration of sales in the last month of the fiscal year in ) Tj ET Q q 0 0 0 rg BT 287.76 58.10 Td (Asia and the U.S. and slower collections in ) Tj ET Q q 0 0 0 rg BT 462.18 58.10 Td (Asia partially of) Tj ET Q q 0 0 0 rg BT 526.98 58.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (higher bad debt reserves in fiscal 2015.) Tj ET Q endstream endobj 85 0 obj <>] /Rotate 0 /Contents 86 0 R>> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (40) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Annualized Fourth Quarter) Tj ET Q q 0 0 0 rg BT 168.21 742.25 Td ( Inventory ) Tj ET Q q 0 0 0 rg BT 215.25 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 221.00 742.25 Td (urns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 722.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 722.25 Td (e calculate annualized fourth quarter inventory turns as cost of sales during the fourth quarter annualized and divided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (by net inventories at the end of the fourth quarter) Tj ET Q q 0 0 0 rg BT 245.27 710.25 Td (. ) Tj ET Q q 0 0 0 rg BT 250.09 710.25 Td (This indicates how well we are managing our inventory levels, with higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (inventory turns resulting in more working capital availability and a higher return on our investments in inventory) Tj ET Q q 0 0 0 rg BT 500.97 698.25 Td (. ) Tj ET Q q 0 0 0 rg BT 505.79 698.25 Td (The more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (money we have tied up in inventory) Tj ET Q q 0 0 0 rg BT 192.70 686.25 Td (, the less money we have available for research and development, acquisitions, expansion, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (marketing and other activities to grow our business. Our annualized fourth quarter inventory turns for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.43 674.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.43 674.25 Td ( increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.00 662.25 Td (turns from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 662.25 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 662.25 Td ( turns in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.87 662.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.87 662.25 Td ( primarily due to timing of inventory shipments of lar) Tj ET Q q 0 0 0 rg BT 414.82 662.25 Td (ge annealing laser systems partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 650.25 Td (fset by the impact of foreign exchange rates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (Capital Spending as a Per) Tj ET Q q 0 0 0 rg BT 159.89 630.25 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 610.25 Td (Capital spending as a percentage of net sales \("capital spending percentage"\) is calculated as capital expenditures for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (period divided by net sales for the period. Capital spending percentage indicates the extent to which we are expanding or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (improving our operations, including investments in technology and equipment. Management monitors capital spending levels ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (as this assists management in measuring our cash flows, net of capital expenditures. Our capital spending percentage decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 562.25 Td (2.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.61 562.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.54 562.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.54 562.25 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.98 562.25 Td (2.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.81 562.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.74 562.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.74 562.25 Td ( and increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.38 562.25 Td (2.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.21 562.25 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.14 562.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.14 562.25 Td (. ) Tj ET Q q 0 0 0 rg BT 403.96 562.25 Td (The fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.16 562.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.16 562.25 Td ( decrease was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (due to lower purchases of production-related assets. ) Tj ET Q q 0 0 0 rg BT 259.25 550.25 Td (The fiscal 2014 increase was primarily due to higher purchases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (production-related assets to support new product introductions and growth in ) Tj ET Q q 0 0 0 rg BT 359.44 538.25 Td (Asia, particularly to support service and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (refurbishment capacity in South Korea and China. ) Tj ET Q q 0 0 0 rg BT 252.60 526.25 Td (W) Tj ET Q q 0 0 0 rg BT 261.23 526.25 Td (e expect capital spending for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.84 526.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.84 526.25 Td ( to increase to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (4.0% to 5.0% of net sales due to rollover of forecasted spending that did not occur in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.51 514.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.51 514.25 Td ( and additional building ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (expansion and improvement projects, primarily in the U.S.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 128.69 482.25 Td ( as a Per) Tj ET Q q 0 0 0 rg BT 164.89 482.25 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 462.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 462.25 Td (e define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 187.00 462.25 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 49.50 450.25 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 49.50 438.25 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 85.61 438.25 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 248.91 438.25 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 49.50 426.25 Td (leveraging of our infrastructure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 404.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 404.25 Td (e utilize a number of dif) Tj ET Q q 0 0 0 rg BT 176.81 404.25 Td (ferent financial measures, both GAAP) Tj ET Q q 0 0 0 rg BT 329.45 404.25 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 393.33 404.25 Td (, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 501.93 404.25 Td ( as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.25 Td (percentage of net sales, in analyzing and assessing our overall business performance, for making operating decisions and for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (forecasting and planning future periods. ) Tj ET Q q 0 0 0 rg BT 211.49 380.25 Td (W) Tj ET Q q 0 0 0 rg BT 220.13 380.25 Td (e consider the use of non-GAAP) Tj ET Q q 0 0 0 rg BT 350.01 380.25 Td ( financial measures helpful in assessing our current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (financial performance and ongoing operations. ) Tj ET Q q 0 0 0 rg BT 238.69 368.25 Td (While we use non-GAAP) Tj ET Q q 0 0 0 rg BT 340.80 368.25 Td ( financial measures as a tool to enhance our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (understanding of certain aspects of our financial performance, we do not consider these measures to be a substitute for) Tj ET Q q 0 0 0 rg BT 522.55 356.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (superior to, the information provided by GAAP) Tj ET Q q 0 0 0 rg BT 239.38 344.25 Td ( financial measures. ) Tj ET Q q 0 0 0 rg BT 321.38 344.25 Td (W) Tj ET Q q 0 0 0 rg BT 330.02 344.25 Td (e provide adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 441.94 344.25 Td ( in order to enhance investors' ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (understanding of our ongoing operations. ) Tj ET Q q 0 0 0 rg BT 217.07 332.25 Td (This measure is used by some investors when assessing our performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 310.25 Td (Below is the reconciliation of our net income as a percentage of net sales to our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 464.38 310.25 Td ( as a percentage of net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (sales:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 252.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 252.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 252.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 252.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 252.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 252.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 222.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 222.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 222.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 222.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 222.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 222.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 192.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 192.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 192.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 192.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 192.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 192.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 162.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 162.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 162.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 162.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 162.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 162.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 132.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 132.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 132.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.00 132.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 132.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 132.75 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 381 265.75 m 438 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 265.75 m 442 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 265.75 m 500 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 265.75 m 504 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 265.75 m 561 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 265.75 m 438 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 252.75 m 438 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 265.75 m 500 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 252.75 m 500 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 265.75 m 561 265.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 252.75 m 561 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 117.75 m 438 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 103.75 m 438 103.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 101.75 m 438 101.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 117.75 m 500 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 103.75 m 500 103.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 101.75 m 500 101.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 117.75 m 561 117.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 103.75 m 561 103.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 101.75 m 561 101.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 226.00 270.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.50 269.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 74.50 256.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.00 256.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 256.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 256.98 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 242.42 Td (Net income as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 242.42 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 242.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 242.42 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 242.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 242.42 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 242.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 227.42 Td (Income tax expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 227.42 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 227.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 227.42 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 227.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 227.42 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 227.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 212.42 Td (Interest and other income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 212.42 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 212.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 212.42 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 212.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 212.42 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 212.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 197.42 Td (Depreciation and amortization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 197.42 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 197.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 197.42 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 197.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 197.42 Td (4.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 197.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 182.42 Td (Purchase accounting step up) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 182.42 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 182.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 182.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 182.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 182.42 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 182.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 167.42 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.95 167.42 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.80 167.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 167.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 167.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 167.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 167.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 152.42 Td (Customs audit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 152.42 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 152.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 152.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 152.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 152.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 152.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 137.42 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 137.42 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 137.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 137.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 137.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 137.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 137.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 122.42 Td (Stock based compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 122.42 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 122.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 122.42 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 122.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 122.42 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 122.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 107.42 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.25 107.42 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 107.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 107.42 Td (17.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 107.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 107.42 Td (17.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 107.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (41) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 116.00 742.25 Td ( EVENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 722.25 Td (Acquisitions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 702.25 Td (On July 24, 2015, we acquired certain assets of Raydiance, Inc. \("Raydiance"\) for approximately $5.0 million, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (transaction costs. Raydiance manufactured complete tools and lasers for ultrafast processing systems and subsystems in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 234.54 678.25 Td (The Raydiance assets have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 646.25 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 349.25 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 355.00 646.25 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 423.17 646.25 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (Communications Corporation for approximately $4.3 million, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 412.59 634.25 Td (T) Tj ET Q q 0 0 0 rg BT 418.35 634.25 Td (insley is a specialized manufacturer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 473.20 622.25 Td (. ) Tj ET Q q 0 0 0 rg BT 478.02 622.25 Td (T) Tj ET Q q 0 0 0 rg BT 483.77 622.25 Td (insley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (manufactures the lar) Tj ET Q q 0 0 0 rg BT 130.95 610.25 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 380.96 610.25 Td (T) Tj ET Q q 0 0 0 rg BT 386.71 610.25 Td (insley has been included in our Specialty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 578.25 Td (On June 8, 2010, we invested $2.0 million in SiOnyx, Inc., a privately-held company) Tj ET Q q 0 0 0 rg BT 411.57 578.25 Td (. ) Tj ET Q q 0 0 0 rg BT 418.89 578.25 Td (The investment was included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (other assets and was being carried on a cost basis. During the third quarter of fiscal 2015 we determined that our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (became other) Tj ET Q q 0 0 0 rg BT 102.88 554.25 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 215.07 554.25 Td (As a result, we recorded a non-cash char) Tj ET Q q 0 0 0 rg BT 377.03 554.25 Td (ge of $2.0 million to operating expense in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (results of operations in the third quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 522.25 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 49.50 510.25 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 49.50 498.25 Td (applications. ) Tj ET Q q 0 0 0 rg BT 102.64 498.25 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 72.00 478.25 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 49.50 466.25 Td (transaction costs. Innolight provides a core technology building block for an emer) Tj ET Q q 0 0 0 rg BT 377.01 466.25 Td (ging class of commercial, sub-nanosecond ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (lasers for microelectronics manufacturing and its semiconductor) Tj ET Q q 0 0 0 rg BT 306.43 454.25 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 49.50 442.25 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 49.50 430.25 Td (materials. ) Tj ET Q q 0 0 0 rg BT 90.97 430.25 Td (These assets and liabilities have been included in our Specialty Lasers and Systems segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (Stock Repur) Tj ET Q q 0 0 0 rg BT 102.93 410.25 Td (chases and Stock Dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 390.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 390.25 Td (August25, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.56 390.25 Td (, our Board of Directors authorized a stock repurchase program to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.16 390.25 Td ($25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.66 390.25 Td ( million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.42 378.25 Td (August31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.81 378.25 Td (. During the fourth quarter of fiscal 2015, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.84 366.25 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.34 366.25 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.92 366.25 Td ($57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 366.25 Td ( per share for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.54 354.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.43 354.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 334.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 334.25 Td (January21, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 334.25 Td (, our Board of Directors authorized a stock repurchase program to repurchase up to $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.92 334.25 Td (25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.42 334.25 Td ( million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.97 322.25 Td (January31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.57 322.25 Td (. During the fourth quarter of fiscal 2015, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.84 310.25 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.34 310.25 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.92 310.25 Td ($58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 310.25 Td ( per share for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.54 298.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.43 298.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 278.25 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 278.25 Td (July25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 278.25 Td (, the Board of Directors authorized a buyback program whereby we were authorized to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td ($25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 266.25 Td ( million of our common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.03 266.25 Td (July31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.20 266.25 Td (. During the first and second quarters of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.00 254.25 Td (434,1) Tj ET Q q 0 0 0 rg BT 207.13 254.25 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.13 254.25 Td ( shares of outstanding common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.77 254.25 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.27 254.25 Td ( per share for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.60 242.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.50 242.25 Td (, excluding expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 222.25 Td (On December10, 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 49.50 210.25 Td (our outstanding common stock payable on December27, 2012 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 49.50 198.25 Td (payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.26 198.25 Td ($24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.16 198.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (RESUL) Tj ET Q q 0 0 0 rg BT 82.43 178.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 110.67 178.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 147.43 178.25 Td (TIONSFISCAL) Tj ET Q q 0 0 0 rg BT 224.68 178.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 227.18 178.25 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.18 178.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 252.18 178.25 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.18 178.25 Td ( ) Tj ET Q q 0 0 0 rg BT 274.13 178.25 Td (AND ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.29 178.25 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.29 178.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 158.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 158.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 158.25 Td ( consists of 53 weeks. Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.76 158.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.76 158.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.20 158.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.20 158.25 Td ( consist of 52weeks. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 138.25 Td (Consolidated Summary) Tj ET Q endstream endobj 89 0 obj <>] /Rotate 0 /Contents 90 0 R>> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (The following table sets forth, for the years indicated, the percentage of total net sales represented by the line items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (reflected in our consolidated statement of operations:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 682.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 682.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 682.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 682.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 682.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 682.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 654.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 654.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 654.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 654.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 654.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 626.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 626.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 626.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 626.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 626.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 598.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 598.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 598.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 598.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 598.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 570.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 570.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 570.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 570.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 570.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 542.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 542.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 542.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 542.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 542.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 514.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 514.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 514.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 514.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 514.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 486.60 262.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 486.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 486.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 486.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 486.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 486.60 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 706.6 m 382.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 706.6 m 386.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 706.6 m 456.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 706.6 m 460.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 706.6 m 530.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 694.6 m 382.5 694.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 694.6 m 456.5 694.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 694.6 m 530.5 694.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 654.6 m 382.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 654.6 m 456.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 654.6 m 530.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 654.6 m 382.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 654.6 m 456.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 654.6 m 530.5 654.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 640.6 m 382.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 640.6 m 456.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 640.6 m 530.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 556.6 m 382.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 556.6 m 456.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 556.6 m 530.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 556.6 m 382.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 556.6 m 456.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 556.6 m 530.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 542.6 m 382.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 542.6 m 456.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 542.6 m 530.5 542.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 514.6 m 382.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 514.6 m 456.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 514.6 m 530.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 514.6 m 382.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 514.6 m 456.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 514.6 m 530.5 514.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 486.6 m 382.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 486.6 m 456.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 486.6 m 530.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 486.6 m 382.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 473.6 m 382.5 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 471.6 m 382.5 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 486.6 m 456.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 473.6 m 456.5 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 471.6 m 456.5 471.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 486.6 m 530.5 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 473.6 m 530.5 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 471.6 m 530.5 471.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 710.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.00 710.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 181.00 698.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.00 698.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.00 698.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 698.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 686.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.60 686.68 Td (\(As a percentage of net sales\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 673.28 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.80 673.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 673.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.15 673.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 673.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.80 673.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 673.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 659.28 Td (Cost of sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 659.17 Td (58.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 659.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 659.17 Td (60.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 659.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 659.17 Td (60.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 659.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 645.28 Td (Gross profit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 645.17 Td (41.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 645.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 645.17 Td (39.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 645.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 645.17 Td (39.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 645.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 631.28 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 617.17 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 617.17 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 617.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 617.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 617.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 617.17 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 617.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 603.17 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 603.17 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 603.17 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 603.17 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 589.17 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.45 589.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 589.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 589.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 589.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.30 589.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 589.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 575.17 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 575.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 575.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 575.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 575.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.30 575.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 575.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 561.17 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 561.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 561.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 561.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 561.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.80 561.17 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 561.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 547.17 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 547.17 Td (29.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 547.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 547.17 Td (29.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 547.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 547.17 Td (29.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 547.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 533.28 Td (Income from operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 533.17 Td (12.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 533.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 533.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 533.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 533.17 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 533.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 519.28 Td (Other income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.45 519.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 519.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 519.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 519.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.45 519.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.30 519.17 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 505.28 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.80 505.17 Td (12.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 505.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 505.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 505.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 505.17 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 505.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 491.17 Td (Provision for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 491.17 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 491.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 491.17 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 491.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.80 491.17 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 491.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 477.28 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 477.17 Td (9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 477.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 477.17 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 477.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.80 477.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 477.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 453.10 Td (Refer to Item6 "Selected Financial Data" for a description of significant events that impacted the results of operations for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 441.10 Td (fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.75 441.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 441.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.75 441.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.75 441.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.19 441.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.19 441.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (Net Sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 401.10 Td (Market ) Tj ET Q q 0 0 0 rg BT 84.16 401.10 Td (Application) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 381.10 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 50.00 369.10 Td (sales by market application \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 317.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 317.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.50 317.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 317.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 317.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 317.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 317.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 287.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 287.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.50 287.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 287.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 287.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 287.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 287.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 257.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 220.50 257.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 275.50 257.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.50 257.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 257.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 257.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 257.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 257.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 257.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 257.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 257.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 515.50 257.60 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 345.6 m 275.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.5 345.6 m 279.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 345.6 m 334.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 345.6 m 393.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393.5 345.6 m 397.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 345.6 m 452.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 345.6 m 511.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 345.6 m 515.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 345.6 m 570.5 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 317.6 m 275.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 317.6 m 334.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 317.6 m 393.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 317.6 m 452.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 317.6 m 511.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 317.6 m 570.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 242.60000000000002 m 275.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 242.60000000000002 m 334.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 242.60000000000002 m 393.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 242.60000000000002 m 452.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 242.60000000000002 m 511.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 242.60000000000002 m 570.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 242.60000000000002 m 275.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 228.60000000000002 m 275.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 220.5 226.60000000000002 m 275.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 242.60000000000002 m 334.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 228.60000000000002 m 334.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.5 226.60000000000002 m 334.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 242.60000000000002 m 393.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 228.60000000000002 m 393.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 226.60000000000002 m 393.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 242.60000000000002 m 452.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 228.60000000000002 m 452.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 226.60000000000002 m 452.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 242.60000000000002 m 511.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 228.60000000000002 m 511.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 226.60000000000002 m 511.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 242.60000000000002 m 570.5 242.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 228.60000000000002 m 570.5 228.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515.5 226.60000000000002 m 570.5 226.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 349.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 258.00 349.83 Td (Fiscal 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.00 349.83 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.00 349.83 Td (Fiscal 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 321.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 233.45 321.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.65 337.68 Td (Per) Tj ET Q q 0 0 0 rg BT 299.49 337.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 294.35 329.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.15 321.68 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.45 321.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.65 337.68 Td (Per) Tj ET Q q 0 0 0 rg BT 417.49 337.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.35 329.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.15 321.68 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.45 321.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.65 337.68 Td (Per) Tj ET Q q 0 0 0 rg BT 535.49 337.68 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 530.35 329.68 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.15 321.68 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 307.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 307.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.00 307.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 307.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 307.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 307.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.00 307.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 292.27 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 292.27 Td (406,187) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 292.27 Td (50.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 292.27 Td (384,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 292.27 Td (48.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 292.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 292.27 Td (416,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 292.27 Td (51.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 277.27 Td (OEM components and instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 277.27 Td (168,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 277.27 Td (21.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 277.27 Td (169,978) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 277.27 Td (21.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 277.27 Td (149,974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 277.27 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 262.27 Td (Materials processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 262.27 Td (110,986) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 262.27 Td (13.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 262.27 Td (118,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 262.27 Td (14.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 262.27 Td (121,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 262.27 Td (15.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 247.27 Td (Scientific and government programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 247.27 Td (116,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 247.27 Td (14.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 247.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 247.27 Td (121,472) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 247.27 Td (15.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 247.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 247.27 Td (121,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 247.27 Td (15.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 247.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.00 232.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 232.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 232.27 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 232.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.65 232.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 232.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 232.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 232.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 232.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 232.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.15 232.27 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.15 232.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.65 232.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 208.10 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.99 208.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.99 208.10 Td (, net sales increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.39 208.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.29 208.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.12 208.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.45 208.10 Td (, compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.80 208.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.80 208.10 Td (, with sales increases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td (microelectronics market partially of) Tj ET Q q 0 0 0 rg BT 193.37 196.10 Td (fset by decreases in the materials processing, scientific and government programs and OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (components and instrumentation markets. Microelectronics sales increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.13 184.10 Td ($21.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.02 184.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.85 184.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.18 184.10 Td (, primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (shipments for flat panel display annealing systems partially of) Tj ET Q q 0 0 0 rg BT 298.10 172.10 Td (fset by lower shipments for semiconductor and advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.10 Td (packaging applications. Materials processing sales decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.30 160.10 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.19 160.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.02 160.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.35 160.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.11 160.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.11 160.10 Td ( primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.10 Td (shipments for marking, non-metal drilling and non-metal cutting applications. ) Tj ET Q q 0 0 0 rg BT 363.92 148.10 Td (The decrease in scientific and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.10 Td (programs market sales of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.30 136.10 Td ($4.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.19 136.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.02 136.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 136.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.12 136.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.12 136.10 Td ( was primarily due to lower demand for advanced research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (applications used by university and government research groups in Europe. ) Tj ET Q q 0 0 0 rg BT 353.35 124.10 Td (The decrease in the OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td (instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.36 112.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.25 112.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.08 112.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.41 112.10 Td (, during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.18 112.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.18 112.10 Td ( was primarily due to lower shipments for medical and) 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 530.73 112.10 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 50.00 100.10 Td (machine vision applications partially of) Tj ET Q q 0 0 0 rg BT 208.11 100.10 Td (fset by higher shipments for bio-instrumentation and forensic applications, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.10 Td (impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 166.18 88.10 Td (T) Tj ET Q q 0 0 0 rg BT 171.94 88.10 Td (insley and Raydiance \($2.0 million\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 68.10 Td (During fiscal 2014, net sales decreased by $15.5 million, or 2%, compared to fiscal 2013, with sales decreases in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 56.10 Td (microelectronics, materials processing and scientific and government programs markets partially of) Tj ET Q q 0 0 0 rg BT 447.74 56.10 Td (fset by increases in the ) Tj ET Q endstream endobj 91 0 obj <>] /Rotate 0 /Contents 92 0 R>> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 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 238.02 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 240.52 742.10 Td (Microelectronics sales decreased $31.9 million, or 8%, primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (sales in flat panel display and advanced packaging applications partially of) Tj ET Q q 0 0 0 rg BT 349.16 730.10 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 551.05 730.10 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 50.00 718.10 Td (Materials processing sales decreased $3.1 million, or 3%, during fiscal 2014 primarily due to lower shipments for marking and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (non-metal drilling applications. ) Tj ET Q q 0 0 0 rg BT 178.13 706.10 Td (The decrease in scientific and government programs market sales of $0.5 million, or 0.4%, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (during fiscal 2014 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 50.00 682.10 Td (research groups. ) Tj ET Q q 0 0 0 rg BT 117.85 682.10 Td (The increase in the OEM components and instrumentation market of $20.0 million or 13%, during fiscal 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (was primarily due to higher shipments for medical and bio-instrumentation \(including the acquisition of Lumera at the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (the first quarter of fiscal 2013\) applications partially of) Tj ET Q q 0 0 0 rg BT 269.75 658.10 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 50.00 646.10 Td (military project spending. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 626.10 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 50.00 614.10 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 50.00 602.10 Td (penalties. Historically) Tj ET Q q 0 0 0 rg BT 137.10 602.10 Td (, we have not experienced a significant rate of cancellation or rescheduling, though we cannot guarantee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (that the rate of cancellations or rescheduling will not increase in the future. ) Tj ET Q q 0 0 0 rg BT 351.93 590.10 Td (W) Tj ET Q q 0 0 0 rg BT 360.57 590.10 Td (e have a backlog of orders shippable within 12 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.78 578.10 Td ($309.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.67 578.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.89 578.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.59 578.10 Td (, including a significant concentration in the flat panel display market \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.39 578.10 Td (32%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.72 578.10 Td (\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (customers which are primarily in ) Tj ET Q q 0 0 0 rg BT 184.13 566.10 Td (Asia. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 546.10 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 50.00 534.10 Td (historically fluctuated and are in the future expected to fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 358.83 534.10 Td (-to-quarter due to customer scheduling, our ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (to manufacture these products and/or availability of supplies.) Tj ET Q q 0 0 0 rg BT 296.32 522.10 Td (As a result, the timing to convert orders for these products to net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (sales will likely fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 202.80 510.10 Td (-to-quarter) Tj ET Q q 0 0 0 rg BT 245.00 510.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 490.10 Td (Looking at our prior ten years of actual results, excluding a couple of recovery years, our first quarter revenues generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (ranged 2% to 12% below the fourth quarter of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 314.35 478.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 458.10 Td (In fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.99 458.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.99 458.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.99 458.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.99 458.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.42 458.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.42 458.10 Td (, one customer accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.71 458.10 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.04 458.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.04 458.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.37 458.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.81 458.10 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.14 458.10 Td ( of net sales, respectively) Tj ET Q q 0 0 0 rg BT 491.29 458.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 438.10 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 418.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 112.43 418.10 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 50.00 406.10 Td (and Components \("CLC"\). SLS develops and manufactures configurable, advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 487.29 406.10 Td (gely serving the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 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 50.00 382.10 Td (focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 232.82 382.10 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 50.00 370.10 Td (OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 350.10 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 50.00 338.10 Td (sales by segment \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 276.60 132.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 276.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 276.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.50 276.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 276.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 276.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 276.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 276.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 276.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 276.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 276.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 276.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 58.50 236.60 132.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 236.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 247.50 236.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.50 236.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 308.50 236.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 312.50 236.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 236.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 236.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 430.50 236.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 236.60 57.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 236.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 236.60 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 190.5 305.6 m 247.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247.5 305.6 m 251.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 305.6 m 308.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 305.6 m 369.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 305.6 m 373.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 305.6 m 430.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 305.6 m 491.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 305.6 m 495.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 305.6 m 552.5 305.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 276.6 m 247.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 276.6 m 308.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 276.6 m 369.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 276.6 m 430.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 276.6 m 491.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 276.6 m 552.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 211.60000000000002 m 247.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 197.60000000000002 m 247.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 190.5 195.60000000000002 m 247.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 211.60000000000002 m 308.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 197.60000000000002 m 308.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 195.60000000000002 m 308.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 211.60000000000002 m 369.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312.5 197.60000000000002 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 312.5 195.60000000000002 m 369.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 211.60000000000002 m 430.5 211.60000000000002 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 430.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 195.60000000000002 m 430.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 211.60000000000002 m 491.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 197.60000000000002 m 491.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 195.60000000000002 m 491.5 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 211.60000000000002 m 552.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 197.60000000000002 m 552.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 195.60000000000002 m 552.5 195.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 61.00 310.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.00 309.83 Td (Fiscal 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.00 309.83 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.00 309.83 Td (Fiscal 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 124.00 280.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 204.45 280.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.65 296.83 Td (Per) Tj ET Q q 0 0 0 rg BT 272.49 296.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.35 288.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.15 280.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.45 280.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.65 296.83 Td (Per) Tj ET Q q 0 0 0 rg BT 394.49 296.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.35 288.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.15 280.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.45 280.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.65 296.83 Td (Per) Tj ET Q q 0 0 0 rg BT 516.49 296.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.35 288.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.15 280.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 61.00 266.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.00 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.00 266.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 251.27 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 241.27 Td (\(SLS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 241.27 Td (559,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.15 241.27 Td (69.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 241.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 241.27 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 241.27 Td (71.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 241.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 241.27 Td (571,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 241.27 Td (70.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 241.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 226.27 Td (Commercial Lasers and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.00 216.27 Td (Components \(CLC\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 216.27 Td (242,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.15 216.27 Td (30.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 216.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 216.27 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 216.27 Td (28.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 216.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 216.27 Td (238,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 216.27 Td (29.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 216.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 201.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 201.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.15 201.27 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 201.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 201.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 201.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 201.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 201.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 201.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 201.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 201.27 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 201.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 201.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 177.10 Td (Net sales for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.19 177.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.19 177.10 Td ( increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.95 177.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.84 177.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.67 177.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 177.10 Td (, compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.36 177.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.36 177.10 Td (, with increases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.61 177.10 Td ($13.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 177.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.33 177.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.66 177.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 165.10 Td (in our CLC segment and decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.46 165.10 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.35 165.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.18 165.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.51 165.10 Td (, in our SLS segment. Net sales for fiscal 2014 decreased $15.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 153.10 Td (million, or 2%, compared to fiscal 2013, with decreases of $6.1 million, or 1%, in our SLS segment and decreases of $9.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 141.10 Td (million, or 4%, in our CLC segment. Both the increase and decrease in CLC and SLS segment sales, respectively) Tj ET Q q 0 0 0 rg BT 502.03 141.10 Td (, included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (decreases due to the unfavorable impact of foreign exchange rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 109.10 Td (The decrease in our SLS segment sales in fiscal 2015 was primarily due to lower shipments for medical, semiconductor) Tj ET Q q 0 0 0 rg BT 552.09 109.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.10 Td (bioinstrumentation and advanced packaging applications partially of) Tj ET Q q 0 0 0 rg BT 323.62 97.10 Td (fset by higher shipments of flat panel display annealing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.10 Td (systems. ) Tj ET Q q 0 0 0 rg BT 86.49 85.10 Td (The fiscal 2015 decrease includes an increase of $2.0 million, primarily in military applications, resulting from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.10 Td (acquisitions of ) Tj ET Q q 0 0 0 rg BT 110.92 73.10 Td (T) Tj ET Q q 0 0 0 rg BT 116.68 73.10 Td (insley and Raydiance. ) Tj ET Q q 0 0 0 rg BT 207.03 73.10 Td (The decrease in our SLS segment sales in fiscal 2014 was primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.10 Td (revenue for flat panel display annealing applications due to timing for shipment of lar) Tj ET Q q 0 0 0 rg BT 392.22 61.10 Td (ge systems, lower shipments for ink jet ) Tj ET Q endstream endobj 93 0 obj <>] /Rotate 0 /Contents 94 0 R>> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (nozzle drilling applications and lower materials processing applications sales partially of) Tj ET Q q 0 0 0 rg BT 404.71 742.10 Td (fset by higher shipments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (semiconductor and medical applications. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 Td (The increase in our CLC segment sales from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.21 710.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.21 710.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.15 710.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 710.10 Td ( was primarily due to higher medical, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (bioinstrumentation and flat panel display application sales. ) Tj ET Q q 0 0 0 rg BT 287.54 698.10 Td (The decrease in our CLC segment sales from fiscal 2013 to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (2014 was primarily due to lower advanced packaging sales due to market softness and lower military application sales partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 674.10 Td (fset by higher sales for medical and instrumentation applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 654.10 Td (Gross Profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (Consolidated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 614.10 Td (Our gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.62 614.10 Td (2.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.45 614.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.23 614.10 Td (41.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.06 614.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.99 614.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.99 614.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.43 614.10 Td (39.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.26 614.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.20 614.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.20 614.10 Td ( primarily due to favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 602.10 Td (gins \(1.2%\) resulting from favorable mix in the microelectronics market and the favorable impact from foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 590.10 Td (currency fluctuations net of the impact of lower volumes in certain business units. In addition, the mar) Tj ET Q q 0 0 0 rg BT 459.16 590.10 Td (gin also benefited from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (lower warranty costs \(0.6%\) due to fewer warranty events in both segments, lower other costs \(0.5%\) due primarily to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (inventory char) Tj ET Q q 0 0 0 rg BT 107.85 566.10 Td (ges as well as lower intangibles amortization \(0.1%\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 546.10 Td (Our gross profit rate decreased by 0.4% to 39.4% in fiscal 2014 from 39.8% in fiscal 2013 primarily due to unfavorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 534.10 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 50.00 522.10 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 50.00 510.10 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 50.00 498.10 Td (2013 partially of) Tj ET Q q 0 0 0 rg BT 116.47 498.10 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 74.00 478.10 Td (Our gross profit rate has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 296.81 478.10 Td (fected by a variety of factors including market and product mix, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (pricing on volume orders, shipment volumes, our ability to manufacture advanced and more complex products, manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 454.10 Td (ficiencies, excess and obsolete inventory write-downs, warranty costs, amortization of intangibles, pricing by competitors or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (suppliers, new product introductions, production volume, customization and reconfiguration of systems, commodity prices and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (foreign currency fluctuations, particularly the recent weakening of the Euro and a lesser extent, the Japanese ) Tj ET Q q 0 0 0 rg BT 485.56 430.10 Td (Y) Tj ET Q q 0 0 0 rg BT 491.78 430.10 Td (en and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (Korean ) Tj ET Q q 0 0 0 rg BT 81.75 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 90.39 418.10 Td (on.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 378.10 Td (Our SLS gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.35 378.10 Td (3.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.18 378.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.96 378.10 Td (45.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.79 378.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.72 378.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.72 378.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.16 378.10 Td (42.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.99 378.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.93 378.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.93 378.10 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 520.86 378.10 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 523.36 378.10 Td (favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (product mar) Tj ET Q q 0 0 0 rg BT 98.41 366.10 Td (gins \(1.7%\), lower other costs \(0.8%\) primarily due to lower inventory char) Tj ET Q q 0 0 0 rg BT 400.93 366.10 Td (ges net of the amortization of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 354.10 Td (inventory step up from the ) Tj ET Q q 0 0 0 rg BT 158.41 354.10 Td (T) Tj ET Q q 0 0 0 rg BT 164.17 354.10 Td (insley and Raydiance acquisitions, lower warranty costs \(0.6%\) due to fewer warranty events and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.10 Td (lower intangibles amortization expense \(0.1%\). ) Tj ET Q q 0 0 0 rg BT 241.70 342.10 Td (The 1.7% product mar) Tj ET Q q 0 0 0 rg BT 331.49 342.10 Td (gin improvement resulted from favorable product mix in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (the microelectronics and OEM components and instrumentation markets as well as favorable service mix and the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (impact from foreign currency fluctuations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 298.10 Td (Our SLS gross profit rate increased by 0.4% to 42.1% in fiscal 2014 from 41.7% in fiscal 2013 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 520.86 298.10 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 523.36 298.10 Td (lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 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 50.00 274.10 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 533.83 274.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (decreases were partially of) Tj ET Q q 0 0 0 rg BT 156.70 262.10 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 50.00 250.10 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 50.00 238.10 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 50.00 226.10 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 50.00 214.10 Td (markets and the unfavorable impact of foreign exchange rates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (Commer) Tj ET Q q 0 0 0 rg BT 87.58 194.10 Td (cial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 174.10 Td (Our CLC gross profit rate increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.57 174.10 Td (1.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.40 174.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.18 174.10 Td (34.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.01 174.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.94 174.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.94 174.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.38 174.10 Td (33.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.21 174.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.14 174.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.14 174.10 Td ( primarily due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (favorable product mar) Tj ET Q q 0 0 0 rg BT 138.67 162.10 Td (gin \(0.5%\) and lower warranty costs \(0.5%\) due to fewer warranty events. ) Tj ET Q q 0 0 0 rg BT 437.55 162.10 Td (The 0.5% product mar) Tj ET Q q 0 0 0 rg BT 527.34 162.10 Td (gin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (improvement resulted from favorable mix in the OEM components and instrumentation and materials processing markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 138.10 Td (fset by unfavorable yields in certain business units.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 118.10 Td (Our CLC gross profit rate decreased by 2.3% to 33.9% in fiscal 2014 from 36.2% in fiscal 2013 primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 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 94.10 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 82.10 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 70.10 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 58.10 Td (and duty) Tj ET Q q 0 0 0 rg BT 84.07 58.10 Td (.) Tj ET Q endstream endobj 95 0 obj <>] /Rotate 0 /Contents 96 0 R>> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (45) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 722.25 Td (The following table sets forth, for the periods indicated, the amount of operating expenses and their relative percentages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (of total net sales by the line items reflected in our consolidated statement of operations \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 622.75 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 622.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 622.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 592.75 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 592.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 592.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 562.75 157.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 207.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 261.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 562.75 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 562.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 562.75 54.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 677.75 m 261.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 677.75 m 265.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 677.75 m 319.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 677.75 m 323.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 677.75 m 377.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 677.75 m 381.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 677.75 m 435.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.5 677.75 m 439.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 677.75 m 493.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 677.75 m 497.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 677.75 m 551.5 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 664.75 m 261.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 261.5 664.75 m 265.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 664.75 m 319.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 664.75 m 377.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377.5 664.75 m 381.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 664.75 m 435.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 664.75 m 493.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 664.75 m 497.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 664.75 m 551.5 664.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 635.75 m 261.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 635.75 m 319.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 635.75 m 377.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 635.75 m 435.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 635.75 m 493.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 635.75 m 551.5 635.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 547.75 m 261.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 547.75 m 319.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 547.75 m 377.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 547.75 m 435.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 547.75 m 493.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 547.75 m 551.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 547.75 m 261.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 533.75 m 261.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 207.5 531.75 m 261.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 547.75 m 319.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 533.75 m 319.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 531.75 m 319.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 547.75 m 377.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 533.75 m 377.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 531.75 m 377.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 547.75 m 435.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 533.75 m 435.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 531.75 m 435.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 547.75 m 493.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 533.75 m 493.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 531.75 m 493.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 547.75 m 551.5 547.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 533.75 m 551.5 533.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 531.75 m 551.5 531.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 682.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.00 681.98 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 668.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.00 668.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 668.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 668.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 128.50 639.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 219.95 639.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.15 655.98 Td (Per) Tj ET Q q 0 0 0 rg BT 284.99 655.98 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.85 647.98 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.65 639.98 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.95 639.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.15 655.98 Td (Per) Tj ET Q q 0 0 0 rg BT 400.99 655.98 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.85 647.98 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.65 639.98 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.95 639.98 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.15 655.98 Td (Per) Tj ET Q q 0 0 0 rg BT 516.99 655.98 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 647.98 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.65 639.98 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 626.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.20 626.98 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 612.42 Td (Research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 612.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 612.42 Td (81,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.75 612.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 612.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 612.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 612.42 Td (79,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 612.42 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 612.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 612.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 612.42 Td (82,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 612.42 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 612.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 597.42 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.15 597.42 Td (149,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.75 597.42 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 597.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 597.42 Td (154,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 597.42 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 597.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 597.42 Td (149,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 597.42 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 597.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 582.42 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.80 582.42 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.65 582.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.45 582.42 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.30 582.42 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 582.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 582.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 582.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 567.42 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 567.42 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.75 567.42 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 567.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 567.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 567.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 552.42 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 552.42 Td (2,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.75 552.42 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 552.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 552.42 Td (3,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 552.42 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 552.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.15 552.42 Td (5,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 552.42 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 552.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 537.42 Td (Total operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 537.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.15 537.42 Td (234,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.75 537.42 Td (29.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 537.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 537.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 537.42 Td (236,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 537.42 Td (29.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 537.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.00 537.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 537.42 Td (237,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 537.42 Td (29.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 537.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 513.25 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 513.25 Td (ch and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 493.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 493.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 493.25 Td ( research and development \("R&D"\) expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.63 493.25 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.52 493.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.35 493.25 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.68 493.25 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.77 493.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.77 493.25 Td (, and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.25 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.28 481.25 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.11 481.25 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.55 481.25 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.38 481.25 Td ( of sales. ) Tj ET Q q 0 0 0 rg BT 173.96 481.25 Td (The $2.4 million increase was primarily due to $2.5 million higher project spending as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.25 Td (of lower customer reimbursements for development projects and higher spending on various projects net of the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.25 Td (impact of foreign exchange rates as well as an increase of $0.6 million from the impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 487.18 457.25 Td (T) Tj ET Q q 0 0 0 rg BT 492.93 457.25 Td (insley and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.25 Td (Raydiance in the fourth quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 237.26 445.25 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 360.35 445.25 Td (fset by $0.7 million lower other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.25 Td (including lower char) Tj ET Q q 0 0 0 rg BT 132.57 433.25 Td (ges for increases in deferred compensation plan liabilities with the related income for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.25 Td (compensation assets recorded in other income \(expense\) and lower stock-based compensation expense. On a segment basis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.25 Td (SLS spending increased $0.8 million primarily due to higher net spending on projects due to lower customer reimbursements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.25 Td (and the impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 197.84 397.25 Td (T) Tj ET Q q 0 0 0 rg BT 203.59 397.25 Td (insley and Raydiance partially of) Tj ET Q q 0 0 0 rg BT 335.59 397.25 Td (fset by the favorable impact of foreign exchange rates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.25 Td (CLC spending increased $2.1 million primarily due to higher spending on projects and lower customer reimbursements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.25 Td (Corporate and other spending decreased $0.5 million due to lower char) Tj ET Q q 0 0 0 rg BT 333.90 373.25 Td (ges for increases in deferred compensation plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 361.25 Td (liabilities and lower stock-based compensation expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 341.25 Td (Fiscal 2014 research and development \("R&D"\) expenses decreased $3.7 million, or 4%, from fiscal 2013, and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 329.25 Td (to 10.0% from 10.2% of sales. ) Tj ET Q q 0 0 0 rg BT 173.96 329.25 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 50.00 317.25 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 50.00 305.25 Td (The decreases were partially of) Tj ET Q q 0 0 0 rg BT 174.75 305.25 Td (fset by the unfavorable impact of foreign exchange rates and $0.4 million higher other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.25 Td (including higher char) Tj ET Q q 0 0 0 rg BT 135.35 293.25 Td (ges for increases in deferred compensation plan liabilities with the related expenses for decreases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 281.25 Td (deferred compensation assets recorded in other income \(expense\) and higher stock-based compensation expense. On a segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.25 Td (basis, SLS spending decreased $2.9 million primarily due to lower net spending on projects due to higher customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.25 Td (reimbursements net of higher other spending on projects partially of) Tj ET Q q 0 0 0 rg BT 322.25 257.25 Td (fset by the impact of foreign exchange rates. CLC spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 245.25 Td (decreased $1.2 million primarily due lower spending on projects. Corporate and other spending increased $0.4 million due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 233.25 Td (higher char) Tj ET Q q 0 0 0 rg BT 95.07 233.25 Td (ges for increases in deferred compensation plan liabilities and higher stock-based compensation expense.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 213.25 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 193.25 Td (Fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.39 193.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.39 193.25 Td ( selling, general and administrative \("SG&A"\) expenses decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.74 193.25 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.63 193.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.46 193.25 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.79 193.25 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.89 193.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.89 193.25 Td (. ) Tj ET Q q 0 0 0 rg BT 542.71 193.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 181.25 Td (decrease was primarily due to $3.7 million lower char) Tj ET Q q 0 0 0 rg BT 265.58 181.25 Td (ges for increases in deferred compensation plan liabilities with the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 169.25 Td (income for increases in deferred compensation assets recorded in other income \(expense\) and $0.7 million lower stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 157.25 Td (compensation expense. ) Tj ET Q q 0 0 0 rg BT 145.07 157.25 Td (The decreases were partially of) Tj ET Q q 0 0 0 rg BT 269.82 157.25 Td (fset by $0.2 million higher other net variable spending due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 145.25 Td (payroll related spending from higher variable compensation, salaries and benefits, higher legal and consulting costs including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.25 Td (costs related to acquisitions and higher bad debt expenses partially of) Tj ET Q q 0 0 0 rg BT 326.96 133.25 Td (fset by the favorable impact of foreign exchange rates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.25 Td (lower demo amortization. On a segment basis, SLS segment expenses decreased $1.7million primarily due to lower variable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 109.25 Td (spending. CLC spending decreased $1.2million primarily due to lower variable spending. Spending for Corporate and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.25 Td (decreased $1.3 million primarily due to lower char) Tj ET Q q 0 0 0 rg BT 252.53 97.25 Td (ges for increases in deferred compensation plan liabilities and lower stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.25 Td (based compensation expense partially of) Tj ET Q q 0 0 0 rg BT 211.99 85.25 Td (fset by higher variable spending including legal and consulting costs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.25 Td (acquisitions and higher payroll spending.) Tj ET Q endstream endobj 97 0 obj <>] /Rotate 0 /Contents 98 0 R>> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (Fiscal 2014 selling, general and administrative \("SG&A"\) expenses increased $4.5 million, or 3%, from fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 541.05 742.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 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 50.00 718.10 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 50.00 706.10 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 706.10 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 q 0 0 0 rg BT 50.00 694.10 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 50.00 682.10 Td (quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 140.62 682.10 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 263.71 682.10 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 50.00 670.10 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 50.00 658.10 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 50.00 646.10 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 460.23 646.10 Td (fset by lower external ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 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 50.00 622.10 Td (other variable spending partially of) Tj ET Q q 0 0 0 rg BT 190.33 622.10 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 50.00 610.10 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 50.00 598.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 598.10 Td (fset by higher char) Tj ET Q q 0 0 0 rg BT 168.48 598.10 Td (ges for increases in deferred compensation plan liabilities and higher payroll spending.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 558.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 349.75 558.10 Td (T) Tj ET Q q 0 0 0 rg BT 355.50 558.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 423.67 558.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (Communications Corporation for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.07 546.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.97 546.10 Td (, excluding transaction costs \(See Note 3\). ) Tj ET Q q 0 0 0 rg BT 466.13 546.10 Td (The purchase price was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (lower than the fair value of net assets purchased, resulting in a gain of $1.3 million recorded in our consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (Impairment of investment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 482.10 Td (On June 8, 2010, we invested $2.0 million in SiOnyx, Inc., a privately-held company) Tj ET Q q 0 0 0 rg BT 412.07 482.10 Td (.) Tj ET Q q 0 0 0 rg BT 416.89 482.10 Td (The investment was included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (other assets and was being carried on a cost basis. During the third quarter of fiscal 2015 we determined that our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 458.10 Td (became other) Tj ET Q q 0 0 0 rg BT 103.38 458.10 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 215.57 458.10 Td (As a result, we recorded a non-cash impairment char) Tj ET Q q 0 0 0 rg BT 426.13 458.10 Td (ge of $2.0 million to operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 446.10 Td (expense in our results of operations in the third quarter of fiscal 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 406.10 Td (Amortization of intangible assets decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.88 406.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.78 406.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.61 406.10 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.94 406.10 Td (, from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.03 406.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.03 406.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.96 406.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.96 406.10 Td ( primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (completion of amortization of certain intangibles from prior acquisitions partially of) Tj ET Q q 0 0 0 rg BT 386.39 394.10 Td (fset by amortization from the Raydiance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (acquisition in the fourth quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 362.10 Td (Amortization of intangible assets decreased $1.7 million, or 33%, from fiscal 2013 to fiscal 2014 primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (completion of amortization of certain intangibles from the acquisition of Lumera and other prior acquisitions.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 330.10 Td (Other) Tj ET Q q 0 0 0 rg BT 75.37 330.10 Td ( income \(expense\), net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 310.10 Td (Other income \(expense\), net, decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.20 310.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.09 310.10 Td ( from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.69 310.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.69 310.10 Td ( to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.62 310.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.62 310.10 Td (. ) Tj ET Q q 0 0 0 rg BT 413.44 310.10 Td (The decrease was primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td ($4.6 million lower gains, net of expenses, on our deferred compensation plan assets partially of) Tj ET Q q 0 0 0 rg BT 431.11 298.10 Td (fset by lower net foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (currency exchange losses \($0.9 million\) and $0.2 million higher interest income due to higher balances of cash and short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (investments. Net foreign currency exchange losses decreased due to higher unhedged exposure in fiscal 2014 and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (significant movement of the Japanese ) Tj ET Q q 0 0 0 rg BT 202.64 262.10 Td (Y) Tj ET Q q 0 0 0 rg BT 208.86 262.10 Td (en versus the Euro in the last month of the first quarter of fiscal 2014. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (favorable changes in foreign exchange rates in the second quarter of fiscal 2015 compared to the timing of hedge contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (were partially of) Tj ET Q q 0 0 0 rg BT 115.90 238.10 Td (fset by an unfavorable impact in fiscal 2015 due to the weakening of certain ) Tj ET Q q 0 0 0 rg BT 421.90 238.10 Td (Asian currencies against the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (Dollar) Tj ET Q q 0 0 0 rg BT 75.00 226.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 206.10 Td (Other income \(expense\), net, increased $3.8 million from fiscal 2013 to fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 411.78 206.10 Td (The increase was primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 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 50.00 182.10 Td (gains \($1.5 million\) primarily due to more favorable movement in the Japanese ) Tj ET Q q 0 0 0 rg BT 369.26 182.10 Td (Y) Tj ET Q q 0 0 0 rg BT 375.48 182.10 Td (en-Euro cross rate during fiscal 2014. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (Income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 142.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 142.10 Td (fective tax rate on income before income taxes for fiscal 2015 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.64 142.10 Td (23.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.47 142.10 Td ( was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 130.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (rates including South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the benefit of federal research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (and development tax credits including renewal of the federal research and development tax credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 509.08 106.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 145.06 94.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (deductible for tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 62.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.63 62.10 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 50.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 50.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q endstream endobj 99 0 obj <>] /Rotate 0 /Contents 100 0 R>> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (rates including South Korea and Singapore tax exemptions and the benefit of foreign tax credits. ) Tj ET Q q 0 0 0 rg BT 438.04 742.10 Td (These amounts are partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 730.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not deductible for tax purposes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 698.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 98.13 698.10 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 50.00 686.10 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 166.19 686.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (rates including South Korea and Singapore tax exemptions, the benefit of foreign tax credits, the benefit of the federal research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (and development tax credits including renewal of the federal research and development tax credits for fiscal 2012 and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (benefit of releasing foreign tax reserves accrued under ) Tj ET Q q 0 0 0 rg BT 269.34 650.10 Td (ASC 740-10 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 322.12 650.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 358.70 650.10 Td (axes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.96 650.10 Td (and related interest. ) Tj ET Q q 0 0 0 rg BT 459.86 650.10 Td (These amounts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 638.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not deductible for tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.10 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 72.00 606.10 Td (During fiscal 2015, we increased our valuation allowance on deferred tax assets by $1.2 million to $15.6million primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (due to the reduced ability to utilize California and other states research and development tax credits. During fiscal 2014, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (increased our valuation allowance on deferred tax assets by $1.0 million to $14.4million primarily due to the reduced ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 570.10 Td (utilize California and other states research and development tax credits. In making the determination to record the valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td (allowance, management considered the likelihood of future taxable income and feasible and prudent tax planning strategies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (realize deferred tax assets. In the future, if we determine that we expect to realize deferred tax assets, an adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (valuation allowance will af) Tj ET Q q 0 0 0 rg BT 158.39 534.10 Td (fect income in the period such determination is made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.10 Td (Coherent Korea received the final approval for a High-T) Tj ET Q q 0 0 0 rg BT 297.31 514.10 Td (ech tax exemption in 2013 from the South Korean authorities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (it is subject to capital contribution limitations. ) Tj ET Q q 0 0 0 rg BT 236.46 502.10 Td (The impact of this tax exemption decreased South Korean income taxes by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (approximately $2.8 million \(or $0.1) Tj ET Q q 0 0 0 rg BT 192.94 490.10 Td (1 per diluted share\) in fiscal 2015, $2.4 million \(or $0.10 per diluted share\) in fiscal 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (and $2.1 million \(or $0.09 per diluted share\) in fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 289.21 478.10 Td (The remaining High-T) Tj ET Q q 0 0 0 rg BT 379.04 478.10 Td (ech tax exemption benefit is minimal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (should be fully utilized in fiscal 2016 and Coherent Korea should be subject to South Korea income tax at that time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.10 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 510.58 446.10 Td (fective from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 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 463.02 434.10 Td (The tax holiday is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 422.10 Td (conditional upon our meeting certain revenue, business spending and employment thresholds. ) Tj ET Q q 0 0 0 rg BT 426.87 422.10 Td (Although Coherent Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 410.10 Td (had income in fiscal 2015, 2014 and 2013, these amounts were of) Tj ET Q q 0 0 0 rg BT 312.26 410.10 Td (fset by a loss carryforward from fiscal 2012 and therefore we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 Td (did not realize a cumulative benefit for the Singapore tax holiday) Tj ET Q q 0 0 0 rg BT 309.81 398.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 366.10 Td (FINANCIAL) Tj ET Q q 0 0 0 rg BT 106.12 366.10 Td ( CONDITION) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Liquidity and capital resources) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 326.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 326.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.71 326.10 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 50.00 314.10 Td (amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.33 314.10 Td ($325.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.22 314.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.42 314.10 Td ($318.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.31 314.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.53 314.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.79 314.10 Td (. ) Tj ET Q q 0 0 0 rg BT 365.24 314.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 314.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.45 314.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.71 314.10 Td ($271.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 302.10 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 374.64 302.10 Td ($90.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.54 302.10 Td ( of which was denominated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 194.12 290.10 Td (. ) Tj ET Q q 0 0 0 rg BT 198.94 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 207.58 290.10 Td (e currently have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.75 290.10 Td ($263.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.64 290.10 Td ( of cash held by foreign subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 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 50.00 266.10 Td (need for these funds to support our domestic operations. If, however) Tj ET Q q 0 0 0 rg BT 322.86 266.10 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 50.00 254.10 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 530.56 254.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 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 50.00 230.10 Td (are repatriated. ) Tj ET Q q 0 0 0 rg BT 112.28 230.10 Td (W) Tj ET Q q 0 0 0 rg BT 120.91 230.10 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 50.00 218.10 Td (safety of principal and secondarily maximizing yield on these assets. ) Tj ET Q q 0 0 0 rg BT 327.24 218.10 Td (W) Tj ET Q q 0 0 0 rg BT 335.88 218.10 Td (e diversify our cash and cash equivalents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (investments among various financial institutions, money market funds, sovereign debt and other securities in order to reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (our exposure should any one of these financial institutions or financial instruments fail or encounter dif) Tj ET Q q 0 0 0 rg BT 462.77 194.10 Td (ficulties. ) Tj ET Q q 0 0 0 rg BT 499.80 194.10 Td (T) Tj ET Q q 0 0 0 rg BT 505.21 194.10 Td (o date, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (have not experienced any material loss or lack of access to our invested cash, cash equivalents or short-term investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 170.10 Td (, we can provide no assurances that access to our invested cash, cash equivalents or short-term investments will not be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (impacted by adverse conditions in the financial markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 141.10 Td (In the second quarter of fiscal 2015 and the fourth quarter of fiscal 2014, we converted $42.3 million and $62.7 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 129.10 Td (, of cash and securities heldin certain of our foreign subsidiaries to U.S. dollars and invested those funds within a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (European subsidiary whose functional currency is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 309.94 117.10 Td (. ) Tj ET Q q 0 0 0 rg BT 314.38 117.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.88 117.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.59 117.10 Td (, this subsidiary had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.09 117.10 Td ($170.3 million) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 532.98 117.10 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 535.48 117.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 105.10 Td (U.S. dollar denominated investments primarily in U.S. ) Tj ET Q q 0 0 0 rg BT 270.63 105.10 Td (T) Tj ET Q q 0 0 0 rg BT 276.38 105.10 Td (reasury securities, corporate notes and commercial paper) Tj ET Q q 0 0 0 rg BT 503.23 105.10 Td (. In November ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (2015, we converted an additional $33.0 million of cash and securities heldin certain of our foreign subsidiaries to U.S. dollars ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 81.10 Td (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 446.03 81.10 Td (. ) Tj ET Q q 0 0 0 rg BT 450.47 81.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 499.81 81.10 Td (, there is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (translation expense arising from this entity holding U.S. dollar denominated investments. ) Tj ET Q q 0 0 0 rg BT 409.20 69.10 Td (The converted funds are not intended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (to be repatriated to the U.S. and no U.S. tax was triggered on the transfer of these funds to the European subsidiary) Tj ET Q q 0 0 0 rg BT 508.95 57.10 Td (. See ITEM ) Tj ET Q endstream endobj 101 0 obj <>] /Rotate 0 /Contents 102 0 R>> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (7A. QUANTIT) Tj ET Q q 0 0 0 rg BT 110.85 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 116.97 742.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 141.68 742.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 202.26 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 208.37 742.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 302.83 742.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 337.09 742.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 381.63 742.10 Td ( RISK below for more information about ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (risks and trends related to foreign currencies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.38 710.10 Td (ces and Uses of Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 120.56 690.10 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 50.00 678.10 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 50.00 666.10 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 50.00 654.10 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 50.00 642.10 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 50.00 630.10 Td (our Consolidated Statements of Cash Flows and notes thereto \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 584.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 584.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 584.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 584.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 584.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 584.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 554.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 554.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 554.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 554.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 524.60 318.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.50 524.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.50 524.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 495.50 524.60 66.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 597.6 m 427.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 597.6 m 431.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 597.6 m 491.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 597.6 m 495.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 597.6 m 561.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 584.6 m 427.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 584.6 m 491.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 584.6 m 561.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367.5 584.6 m 427.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 584.6 m 491.5 584.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 495.5 584.6 m 561.5 584.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 208.00 602.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.00 601.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 588.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.00 588.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.00 588.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 588.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 574.27 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.00 574.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 574.27 Td (124,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.00 574.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 574.27 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.00 574.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 574.27 Td (115,522) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 559.27 Td (Sales of shares under employee stock plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 559.27 Td (7,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 559.27 Td (10,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 559.27 Td (16,541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 544.27 Td (Repurchase of common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.80 544.32 Td (\(75,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 544.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 544.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 544.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 529.27 Td (Cash dividend paid on common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 529.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 529.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 529.32 Td (\(24,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 529.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 514.27 Td (Capital expenditures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.80 514.32 Td (\(22,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 514.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.80 514.32 Td (\(23,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 514.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 514.32 Td (\(21,988) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 514.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 499.27 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 499.32 Td (\(9,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 499.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 499.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 499.32 Td (\(67,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 499.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 475.10 Td (Net cash provided by operating activities increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.37 475.10 Td ($33.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.26 475.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.20 475.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.20 475.10 Td ( compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.05 475.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.05 475.10 Td ( and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 463.10 Td ($24.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.39 463.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.33 463.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.33 463.10 Td ( compared to fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.18 463.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.18 463.10 Td (. ) Tj ET Q q 0 0 0 rg BT 277.00 463.10 Td (The increase in cash provided by operating activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.69 463.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.69 463.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td (was primarily due to higher net income and higher cash flows from the timing of shipments of lar) Tj ET Q q 0 0 0 rg BT 440.00 451.10 Td (ge systems from inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 439.10 Td (fset by lower cash flows from prepaid income taxes and accounts receivable.) 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 401.07 439.10 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 403.39 439.10 Td (The decrease in cash provided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.10 Td (operating activities in fiscal 2014 was primarily due to lower cash flows from the timing of inventory purchases to support new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.10 Td (products and accounts payable, lower net income, lower cash flows from the timing of accounts receivable due to higher days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.10 Td (sales outstanding and lower income from operations partially of) Tj ET Q q 0 0 0 rg BT 305.31 403.10 Td (fset by higher cash flows from the timing of other current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.10 Td (liabilities. ) Tj ET Q q 0 0 0 rg BT 92.04 391.10 Td (W) Tj ET Q q 0 0 0 rg BT 100.67 391.10 Td (e believe that our existing cash, cash equivalents and short term investments combined with cash to be provided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.10 Td (operating activities will be adequate to cover our working capital needs and planned capital expenditures for at least the next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.10 Td (12months to the extent such items are known or are reasonably determinable based on current business and market conditions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.10 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 355.10 Td (, we may elect to finance certain of our capital expenditure requirements through borrowings under our bank credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 343.10 Td (facilities or other sources of capital. ) Tj ET Q q 0 0 0 rg BT 195.60 343.10 Td (W) Tj ET Q q 0 0 0 rg BT 204.23 343.10 Td (e continue to follow our strategy to further strengthen our financial position by using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.10 Td (available cash flow to fund operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 311.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 311.10 Td (e intend to continue pursuing acquisition opportunities at valuations we believe are reasonable based upon market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (conditions. However) Tj ET Q q 0 0 0 rg BT 132.92 299.10 Td (, we cannot accurately predict the timing, size and success of our acquisition ef) Tj ET Q q 0 0 0 rg BT 449.01 299.10 Td (forts or our associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td (potential capital commitments. Furthermore, we cannot assure you that we will be able to acquire businesses on terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td (acceptable to us. ) Tj ET Q q 0 0 0 rg BT 118.68 275.10 Td (W) Tj ET Q q 0 0 0 rg BT 127.31 275.10 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 50.00 263.10 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 453.04 263.10 Td (The extent to which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td (will be willing or able to use our common stock to make acquisitions will depend on its market value at the time and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (willingness of potential sellers to accept it as full or partial payment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 219.10 Td (On July 24, 2015, we acquired certain assets of Raydiance for approximately $5.0 million, excluding transaction costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 327.25 207.10 Td (T) Tj ET Q q 0 0 0 rg BT 333.00 207.10 Td (insley business from L-3 Communications Corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (for approximately $4.3 million, excluding transaction costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 175.10 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 50.00 163.10 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 50.00 151.10 Td (payment of $24.0 million in the first quarter of fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 288.38 151.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.02 151.10 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 50.00 139.10 Td (future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 119.10 Td (In fiscal 2015, under plans authorized by the Board of Directors, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 119.10 Td (1,302,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.75 119.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 107.10 Td (outstanding common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.82 107.10 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.32 107.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.89 107.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.78 107.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 87.10 Td (Additional sources of cash available to us were domestic and international currency lines of credit and bank credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 75.10 Td (facilities totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.98 75.10 Td ($63.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.87 75.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.03 75.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.74 75.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.51 75.10 Td ($60.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.40 75.10 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 468.63 75.10 Td (These unsecured credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 63.10 Td (facilities were used in the U.S., Europe, Japan and China during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.70 63.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.70 63.10 Td (. Our domestic line of credit consists of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.88 63.10 Td ($50.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 51.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 51.10 Td ( unsecured revolving credit account, which expires on May31, 2017 and is subject to covenants related to financial ) Tj ET Q endstream endobj 103 0 obj <>] /Rotate 0 /Contents 104 0 R>> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (ratios and tangible net worth and we were in compliance with these covenants at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.34 742.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.04 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 443.86 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.50 742.10 Td (e have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.65 742.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.54 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (for letters of credit against our domestic line of credit and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.97 730.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.87 730.10 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 50.00 718.10 Td (guarantees as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.91 718.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.62 718.10 Td (. In the first quarter of fiscal 2016, we have drawn $5.0 million on our domestic line of credit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.10 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 279.21 698.10 Td (5.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.71 698.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.71 698.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.42 698.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.62 698.10 Td (5.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.12 698.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.11 698.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.38 698.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.10 Td (The decrease in our ratio is primarily due to increases in other current liabilities and taxes payable as well as decreases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.10 Td (inventories partially of) Tj ET Q q 0 0 0 rg BT 140.90 674.10 Td (fset by increases in cash and short-term investments and accounts receivable. Our cash and cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (equivalents, short-term investments and working capital are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 616.60 365.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 616.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 616.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 616.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 60.00 586.60 365.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 586.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 586.60 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 425 629.6 m 486 629.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 629.6 m 490 629.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 629.6 m 551 629.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 616.6 m 486 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 616.6 m 551 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 616.6 m 486 616.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 616.6 m 551 616.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 242.00 634.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.50 633.83 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 62.50 620.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 620.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 620.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 606.27 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.50 606.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 606.27 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 606.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 606.27 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 591.27 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 591.27 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 591.27 Td (227,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 576.27 Td (Working capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 576.27 Td (558,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 576.27 Td (563,736) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 552.10 Td (Contractual Obligations and Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 254.17 552.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 532.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 532.10 Td (e have no of) Tj ET Q q 0 0 0 rg BT 131.60 532.10 Td (f-balance sheet arrangements as defined by RegulationS-K of the Securities ) Tj ET Q q 0 0 0 rg BT 438.44 532.10 Td (Act of 1933. ) Tj ET Q q 0 0 0 rg BT 491.03 532.10 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (summarizes our contractual obligations at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.67 520.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.38 520.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 326.12 520.10 Td (fect such obligations are expected to have on our liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (and cash flow in future periods \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 469.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 469.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 469.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 469.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 469.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 469.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 469.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 469.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 469.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 469.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 441.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 441.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 441.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 441.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 441.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 441.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 441.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 441.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 441.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 441.60 61.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 63.00 413.60 164.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 227.00 413.60 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 282.00 413.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 413.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 413.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 413.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 413.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 413.60 66.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 413.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 413.60 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 227 469.6 m 282 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 469.6 m 343 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 469.6 m 413 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 469.6 m 483 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 469.6 m 548 469.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 413.6 m 282 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 400.6 m 282 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 227 398.6 m 282 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 413.6 m 343 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 400.6 m 343 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 398.6 m 343 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 413.6 m 413 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 400.6 m 413 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 398.6 m 413 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 413.6 m 483 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 400.6 m 483 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 398.6 m 483 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 413.6 m 548 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 400.6 m 548 400.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 398.6 m 548 398.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 245.25 473.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.65 481.68 Td (Less than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.50 473.68 Td (1year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.05 473.83 Td (1 to 3years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.05 473.83 Td (3 to 5years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.95 481.68 Td (Mor) Tj ET Q q 0 0 0 rg BT 513.91 481.68 Td (e than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.85 473.68 Td (5years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 460.17 Td (Operating lease payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 460.17 Td (45,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 460.17 Td (10,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 460.17 Td (9,630) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 460.17 Td (7,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 460.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 460.17 Td (18,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 446.17 Td (Asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.65 446.17 Td (2,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 446.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 446.17 Td (1,064) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 446.17 Td (777) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 446.17 Td (1,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 432.17 Td (Purchase commitments for inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 432.17 Td (25,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 432.17 Td (24,587) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 432.17 Td (722) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 432.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 432.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 418.17 Td (Purchase obligations-other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.65 418.17 Td (8,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 418.17 Td (6,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 418.17 Td (2,670) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 404.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.65 404.17 Td (83,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 404.17 Td (41,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 404.17 Td (14,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 404.17 Td (8,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 404.17 Td (19,204) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 380.10 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 50.00 368.10 Td (obligations for our deferred compensation plans aggregating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.09 368.10 Td ($28.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.98 368.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.20 368.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.91 368.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 348.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.44 348.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.15 348.10 Td (, we recorded gross unrecognized tax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.46 348.10 Td ($24.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.36 348.10 Td ( including gross interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.10 Td (penalties of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.87 336.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.76 336.10 Td (. ) Tj ET Q q 0 0 0 rg BT 152.21 336.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.66 336.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.92 336.10 Td (, we recorded gross unrecognized tax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.23 336.10 Td ($23.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.12 336.10 Td ( including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.10 Td (gross interest and penalties of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.36 324.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.25 324.10 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 50.00 312.10 Td (as non-current liabilities in the consolidated balance sheet. ) Tj ET Q q 0 0 0 rg BT 285.76 312.10 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 50.00 300.10 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 447.14 300.10 Td (As a result, these amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (are not included in the table above.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 268.10 Td (Changes in financial condition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 248.10 Td (Cash provided by operating activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.34 248.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.34 248.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.89 248.10 Td ($124.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.79 248.10 Td (, which included net income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.14 248.10 Td ($76.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.03 248.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 236.10 Td (depreciation and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.72 236.10 Td ($33.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.62 236.10 Td (, stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 236.10 Td ($18.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.79 236.10 Td (, the impairment of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 224.10 Td (investment in SiOnyx of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.55 224.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.44 224.10 Td (, decreases in net deferred tax assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.43 224.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.32 224.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.76 224.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 224.10 Td ( other) Tj ET Q q 0 0 0 rg BT 497.29 224.10 Td (, partially of) Tj ET Q q 0 0 0 rg BT 546.26 224.10 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 212.10 Td (by cash used by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.68 212.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.57 212.10 Td ( and the net ef) Tj ET Q q 0 0 0 rg BT 355.03 212.10 Td (fect of the gain from acquisition of ) Tj ET Q q 0 0 0 rg BT 496.75 212.10 Td (T) Tj ET Q q 0 0 0 rg BT 502.50 212.10 Td (insley of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.72 212.10 Td ($1.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 200.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 200.10 Td (. Cash provided by operating activities in fiscal 2014 was $91.4 million, which included net income of $59.1 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 188.10 Td (depreciation and amortization of $36.2 million and stock-based compensation expense of $18.9 million partially of) Tj ET Q q 0 0 0 rg BT 509.70 188.10 Td (fset by cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 176.10 Td (used by operating assets and liabilities of $13.3 million, increases in net deferred tax assets of $8.2 million and $1.3 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 164.10 Td (other) Tj ET Q q 0 0 0 rg BT 70.00 164.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 144.10 Td (Cash provided by investing activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.24 144.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.24 144.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.57 144.10 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.47 144.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.90 144.10 Td ($33.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.79 144.10 Td ( net sales and maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (available-for) Tj ET Q q 0 0 0 rg BT 100.88 132.10 Td (-sale securities partially of) Tj ET Q q 0 0 0 rg BT 206.49 132.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.93 132.10 Td ($21.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.82 132.10 Td (, net, used to acquire property and equipment and improve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td (buildings net of proceeds from dispositions and $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.48 120.10 Td (9.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.37 120.10 Td ( used to acquire ) Tj ET Q q 0 0 0 rg BT 356.72 120.10 Td (T) Tj ET Q q 0 0 0 rg BT 362.48 120.10 Td (insley and Raydiance. Cash used in investing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 108.10 Td (activities in fiscal 2014 of $109.8 million included $22.8 million, net, used to acquire property and equipment and improve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 96.10 Td (buildings net of proceeds from dispositions and $87.0 million net purchases of available-for) Tj ET Q q 0 0 0 rg BT 417.22 96.10 Td (-sale securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 76.10 Td (Cash used in financing activities in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.90 76.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.90 76.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.46 76.10 Td ($73.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.35 76.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.22 76.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.11 76.10 Td ( repurchases of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 64.10 Td (stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.55 64.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.44 64.10 Td ( outflows due to net settlement of restricted stock partially of) Tj ET Q q 0 0 0 rg BT 383.08 64.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.52 64.10 Td ($7.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.41 64.10 Td ( generated from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.10 Td (employee stock option and purchase plans. Cash provided by financing activities in fiscal 2014 was $2.9 million, which ) Tj ET Q endstream endobj 105 0 obj <>] /Rotate 0 /Contents 106 0 R>> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (included $10.7 million generated from our employee stock option and purchase plans partially of) Tj ET Q q 0 0 0 rg BT 438.05 742.10 Td (fset by $7.8 million outflows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (due to net settlement of restricted stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.10 Td (Changes in exchange rates in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.28 710.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.28 710.10 Td ( resulted in a decrease in cash balances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.37 710.10 Td ($15.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.26 710.10 Td (. Changes in exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 698.10 Td (rates in fiscal 2014 resulted in a decrease in cash balances of $3.7 million) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 678.10 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 678.10 Td ( ) Tj ET Q q 0 0 0 rg BT 93.44 678.10 Td (ACCOUNTING PRONOUNCEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 658.10 Td (See Note2. "Significant ) Tj ET Q q 0 0 0 rg BT 172.79 658.10 Td (Accounting Policies" in the Notes to Consolidated Financial Statements for a full description of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (recent accounting pronouncements, including the respective dates of adoption or expected adoption and ef) Tj ET Q q 0 0 0 rg BT 474.67 646.10 Td (fects on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (consolidated financial position, results of operations and cash flows.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 610.10 Td (TION OF) Tj ET Q q 0 0 0 rg BT 135.28 610.10 Td ( CRITICAL) Tj ET Q q 0 0 0 rg BT 187.24 610.10 Td ( ) Tj ET Q q 0 0 0 rg BT 189.18 610.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 590.10 Td (Our discussion and analysis of financial condition and results of operations are based upon our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 578.10 Td (statements, which have been prepared in accordance with accounting principles generally accepted in the United States of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 566.10 Td (America and pursuant to the rules and regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 300.31 566.10 Td (The preparation of these financial statements requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 554.10 Td (management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 271.70 554.10 Td (fect the reported amounts of assets and liabilities and disclosure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.10 Td (contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 Td (during the reporting period. ) Tj ET Q q 0 0 0 rg BT 162.85 530.10 Td (W) Tj ET Q q 0 0 0 rg BT 171.48 530.10 Td (e have identified the following as the items that require the most significant judgment and often ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.10 Td (involve complex estimation: revenue recognition, accounting for long-lived assets \(including goodwill and intangible assets\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.10 Td (inventory valuation, warranty reserves, stock-based compensation and accounting for income taxes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 486.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 466.10 Td (e recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (exists, the product has been delivered or the service has been rendered, the price is fixed or determinable and collection is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (probable. Revenue from product sales is recorded when all of the foregoing conditions are met and risk of loss and title passes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (to the customer) Tj ET Q q 0 0 0 rg BT 111.10 430.10 Td (. Our products typically include a warranty and the estimated cost of product warranty claims \(based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (historical experience\) is recorded at the time the sale is recognized. Sales to customers are generally not subject to any price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (protection or return rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 386.10 Td (The majority of our sales are made to original equipment manufacturers \("OEMs"\), distributors, representatives and end-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 Td (users in the non-scientific market. Sales made to these customers do not require installation of the products by us and are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (subject to other post-delivery obligations, except in occasional instances where we have agreed to perform installation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.10 Td (provide training. In those instances, we defer revenue related to installation services or training until these services have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (rendered. ) Tj ET Q q 0 0 0 rg BT 89.79 338.10 Td (W) Tj ET Q q 0 0 0 rg BT 98.43 338.10 Td (e allocate revenue from multiple element arrangements to the various elements based upon fair values or a selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (price hierarchy) Tj ET Q q 0 0 0 rg BT 109.59 326.10 Td (, as more fully described in Note 2, "Significant ) Tj ET Q q 0 0 0 rg BT 302.80 326.10 Td (Accounting Policies - Revenue Recognition," in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 294.10 Td (Should changes in conditions cause management to determine these criteria are not met for certain future transactions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (revenue recognized for any reporting period could be adversely af) Tj ET Q q 0 0 0 rg BT 313.87 282.10 Td (fected. Failure to obtain anticipated orders due to delays or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (cancellations of orders could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 271.93 270.10 Td (fect on our revenue. In addition, pressures from customers to reduce our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (prices or to modify our existing sales terms may have a material adverse ef) Tj ET Q q 0 0 0 rg BT 349.44 258.10 Td (fect on our revenue in future periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 238.10 Td (Our sales to distributors, representatives and end-user customers typically do not have customer acceptance provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (and only certain of our sales to OEM customers and integrators have customer acceptance provisions. Customer acceptance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (generally limited to performance under our published product specifications. For the few product sales that have customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (acceptance provisions because of higher than published specifications, \(1\)the products are tested and accepted by the customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (at our site or the customer accepts the results of our testing program prior to shipment to the customer) Tj ET Q q 0 0 0 rg BT 456.72 190.10 Td (, or \(2\)the revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (deferred until customer acceptance occurs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 158.10 Td (Sales to end-users in the scientific market typically require installation and, thus, involve post-delivery obligations; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (however our post-delivery installation obligations are not essential to the functionality of our products. ) Tj ET Q q 0 0 0 rg BT 463.33 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 471.97 146.10 Td (e defer revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (related to installation services until completion of these services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 114.10 Td (For most products, training is not provided; therefore, no post-delivery training obligation exists. However) Tj ET Q q 0 0 0 rg BT 500.19 114.10 Td (, when training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (is provided to our customers, it is typically priced separately and recognized as revenue as these services are provided.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 82.10 Td (For multiple element arrangements which include extended maintenance contracts, we allocate and defer the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (consideration equal to the separately stated price and recognize revenue on a straight-line basis over the contract period.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (Long-Lived ) Tj ET Q q 0 0 0 rg BT 99.89 50.10 Td (Assets and Goodwill) Tj ET Q endstream endobj 107 0 obj <>] /Rotate 0 /Contents 108 0 R>> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 742.10 Td (e evaluate long-lived assets and amortizable intangible assets whenever events or changes in business circumstances or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (our planned use of assets indicate that their carrying amounts may not be fully recoverable or that their useful lives are no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (longer appropriate. Reviews are performed to determine whether the carrying values of the assets are impaired based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (comparison to the undiscounted expected future cash flows identifiable to such long-lived and amortizable intangible assets. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the comparison indicates that impairment exists, the impaired asset is written down to its fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 674.10 Td (e have determined that our reporting units are the same as our operating segments as each constitutes a business for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.10 Td (which discrete financial information is available and for which segment management regularly reviews the operating results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 650.10 Td (e make this determination in a manner consistent with how the operating segments are managed. Based on this analysis, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.10 Td (have identified two reporting units which are our reportable segments: SLS and CLC.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 618.10 Td (Goodwill is tested for impairment on an annual basis and between annual tests in certain circumstances, and written down ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.10 Td (when impaired \(see Note7 "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 264.03 606.10 Td (Assets" in the Notes to Consolidated Financial Statements\). ) Tj ET Q q 0 0 0 rg BT 504.84 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 513.48 606.10 Td (e generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.10 Td (perform our annual impairment tests during the fourth quarter of each fiscal year using the opening balance sheet as of the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 582.10 Td (day of the fourth fiscal quarter) Tj ET Q q 0 0 0 rg BT 171.49 582.10 Td (, with any resulting impairment recorded in the fourth quarter of the fiscal year) Tj ET Q q 0 0 0 rg BT 486.39 582.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 562.10 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 50.00 550.10 Td (goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 155.36 550.10 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 50.00 538.10 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 50.00 526.10 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 454.98 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.62 526.10 Td (e performed our Step 1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 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 50.00 502.10 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 50.00 490.10 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 50.00 478.10 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 50.00 466.10 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 72.00 446.10 Td (In fiscal 2014 and 2015, we conducted a qualitative assessment of the goodwill in the SLS reporting unit during the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 434.10 Td (quarter of each fiscal year 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 50.00 422.10 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 q 0 0 0 rg BT 50.00 410.10 Td (we considered the impact of these key factors: macroeconomic conditions, fluctuations in foreign currency) Tj ET Q q 0 0 0 rg BT 476.42 410.10 Td (, market and industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.10 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 50.00 386.10 Td (performance of our reporting units including cost factors and budgeted-to-actual revenue results. ) Tj ET Q q 0 0 0 rg BT 438.85 386.10 Td (W) Tj ET Q q 0 0 0 rg BT 447.49 386.10 Td (e also considered our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.10 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 50.00 362.10 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 50.00 350.10 Td (first day of the fourth quarter of both fiscal 2014 and 2015. ) Tj ET Q q 0 0 0 rg BT 288.00 350.10 Td (As such, it was not necessary to perform the two-step goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (impairment test at that time in either fiscal year) Tj ET Q q 0 0 0 rg BT 238.82 338.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 318.10 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 50.00 306.10 Td (performing the first step of goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 249.22 306.10 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 50.00 294.10 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 50.00 282.10 Td (packaging market. ) Tj ET Q q 0 0 0 rg BT 126.18 282.10 Td (W) Tj ET Q q 0 0 0 rg BT 134.81 282.10 Td (e performed the Step 1 test during the fourth quarter of fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 405.66 282.10 Td (W) Tj ET Q q 0 0 0 rg BT 414.30 282.10 Td (e determined the fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 270.10 Td (reporting unit for the Step 1 test using a 50-50% weighting of the Income \(discounted cash flow\) approach and Market \(market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td (comparable\) approach. ) Tj ET Q q 0 0 0 rg BT 143.94 258.10 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 50.00 246.10 Td (based on the cash flows that a business expects to generate. ) Tj ET Q q 0 0 0 rg BT 289.75 246.10 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 50.00 234.10 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 50.00 222.10 Td (business enterprise. ) Tj ET Q q 0 0 0 rg BT 130.63 222.10 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 539.75 222.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 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 50.00 198.10 Td (that are publicly traded. ) Tj ET Q q 0 0 0 rg BT 147.28 198.10 Td (T) Tj ET Q q 0 0 0 rg BT 152.69 198.10 Td (otal Enterprise ) Tj ET Q q 0 0 0 rg BT 213.60 198.10 Td (V) Tj ET Q q 0 0 0 rg BT 219.71 198.10 Td (alue \(TEV\) multiples such as ) Tj ET Q q 0 0 0 rg BT 338.67 198.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 357.92 198.10 Td ( to revenues and ) Tj ET Q q 0 0 0 rg BT 425.50 198.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 444.76 198.10 Td ( to earnings \(if applicable\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (before interest and taxes of the publicly traded companies are calculated. ) Tj ET Q q 0 0 0 rg BT 343.58 186.10 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 50.00 174.10 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 50.00 162.10 Td (unit. ) Tj ET Q q 0 0 0 rg BT 70.38 162.10 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 50.00 150.10 Td (the reporting units through other competitors. ) Tj ET Q q 0 0 0 rg BT 234.51 150.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.14 150.10 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 50.00 138.10 Td (methodologies for our industry and are widely accepted by investors. ) Tj ET Q q 0 0 0 rg BT 328.54 138.10 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 50.00 126.10 Td (indication of value than the other) Tj ET Q q 0 0 0 rg BT 182.06 126.10 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 50.00 114.10 Td (segment, we weighted each of the approaches equally) Tj ET Q q 0 0 0 rg BT 264.26 114.10 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 50.00 102.10 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 q 0 0 0 rg BT 50.00 90.10 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 78.10 Td (of impairment or triggering events for either reporting unit to cause us to review goodwill for potential impairment) Tj ET Q endstream endobj 109 0 obj <>] /Rotate 0 /Contents 110 0 R>> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td (For our CLC reporting unit we elected to bypass the qualitative assessment in fiscal 2015 and proceeded directly to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (performing the first step of goodwill impairment. ) Tj ET Q q 0 0 0 rg BT 248.85 730.10 Td (Although the reporting unit had better financial performance in fiscal 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (compared to fiscal 2014, such performance was not significant enough to justify performing only a qualitative assessment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 98.60 706.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 147.94 706.10 Td (, we performed the Step 1 test during the fourth quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 431.01 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 439.65 706.10 Td (e determined the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the reporting unit for the Step 1 test using a 50-50% weighting of the Income \(discounted cash flow\) approach and Market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (\(market comparable\) approach. ) Tj ET Q q 0 0 0 rg BT 177.53 682.10 Td (The Income approach utilizes the discounted cash flow model to provide an estimation of fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (value based on the cash flows that a business expects to generate. ) Tj ET Q q 0 0 0 rg BT 313.90 670.10 Td (These cash flows are based on forecasts developed internally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (by 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 50.00 646.10 Td (business enterprise. ) Tj ET Q q 0 0 0 rg BT 130.63 646.10 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 539.75 646.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 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 50.00 622.10 Td (that are publicly traded. ) Tj ET Q q 0 0 0 rg BT 147.28 622.10 Td (T) Tj ET Q q 0 0 0 rg BT 152.69 622.10 Td (otal Enterprise ) Tj ET Q q 0 0 0 rg BT 213.60 622.10 Td (V) Tj ET Q q 0 0 0 rg BT 219.71 622.10 Td (alue \(TEV\) multiples such as ) Tj ET Q q 0 0 0 rg BT 338.67 622.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 357.92 622.10 Td ( to revenues and ) Tj ET Q q 0 0 0 rg BT 425.50 622.10 Td (TEV) Tj ET Q q 0 0 0 rg BT 444.76 622.10 Td ( to earnings \(if applicable\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (before interest and taxes of the publicly traded companies are calculated. ) Tj ET Q q 0 0 0 rg BT 343.58 610.10 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 50.00 598.10 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 50.00 586.10 Td (unit. ) Tj ET Q q 0 0 0 rg BT 70.38 586.10 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 50.00 574.10 Td (the reporting units through other competitors. ) Tj ET Q q 0 0 0 rg BT 234.51 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.14 574.10 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 50.00 562.10 Td (methodologies for our industry and are widely accepted by investors. ) Tj ET Q q 0 0 0 rg BT 328.54 562.10 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 50.00 550.10 Td (indication of value than the other) Tj ET Q q 0 0 0 rg BT 182.06 550.10 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 50.00 538.10 Td (segment, we weighted each of the approaches equally) Tj ET Q q 0 0 0 rg BT 264.26 538.10 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 50.00 526.10 Td (and concluded that a Step 2 analysis was not required as the estimated fair value of the CLC reporting unit was substantially in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (excess of its carrying value. Between the completion of that testing and the end of the fourth quarter of fiscal 2015, we noted no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (indications 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 72.50 482.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 482.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.71 482.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.81 482.10 Td ($101.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.70 482.10 Td ( of goodwill \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.41 482.10 Td ($95.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.31 482.10 Td ( SLS and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.48 482.10 Td ($6.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.37 482.10 Td ( in CLC\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.92 482.10 Td ($22.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.82 482.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (purchased intangible assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.30 470.10 Td ($102.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.19 470.10 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 50.00 450.10 Td (Inventory V) Tj ET Q q 0 0 0 rg BT 98.06 450.10 Td (aluation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 430.10 Td (e 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 454.29 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 462.93 430.10 Td (e write-down our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 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 50.00 406.10 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 50.00 394.10 Td (demand or when management has deemed parts are no longer active or useful. If actual market conditions are less favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (than those projected by management, additional inventory write-downs may be required which could materially af) Tj ET Q q 0 0 0 rg BT 507.17 382.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (future results of operations. Due to rapidly changing forecasts and orders, additional write-downs for excess or obsolete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (inventory) Tj ET Q q 0 0 0 rg BT 87.68 358.10 Td (, while not currently expected, could be required in the future. In the event that alternative future uses of fully written ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (down inventories are identified, we may experience better than normal profit mar) Tj ET Q q 0 0 0 rg BT 375.25 346.10 Td (gins when such inventory is sold. Dif) Tj ET Q q 0 0 0 rg BT 524.22 346.10 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (between actual results and previous estimates of excess and obsolete inventory could materially af) Tj ET Q q 0 0 0 rg BT 442.74 334.10 Td (fect our future results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (operations. ) Tj ET Q q 0 0 0 rg BT 96.47 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 105.11 322.10 Td (e write-down our demo inventory by amortizing the cost of demo inventory over a twenty month period starting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (from the fourth month after such inventory is placed in service.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.15 290.10 Td (arranty Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 270.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 270.10 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 50.00 258.10 Td (during the period of sale. ) Tj ET Q q 0 0 0 rg BT 152.57 258.10 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 50.00 246.10 Td (expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 300.63 246.10 Td (. ) Tj ET Q q 0 0 0 rg BT 305.45 246.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.09 246.10 Td (e currently establish warranty reserves based on historical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (warranty costs for each product line. ) Tj ET Q q 0 0 0 rg BT 198.37 234.10 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 50.00 222.10 Td (return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 253.34 222.10 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 50.00 210.10 Td (required in future periods.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 170.10 Td (e account for stock-based compensation using fair value. ) Tj ET Q q 0 0 0 rg BT 312.10 170.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.74 170.10 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 50.00 158.10 Td (Black-Scholes Merton model and estimate the fair value of performance restricted stock units granted using a Monte Carlo ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (simulation model. ) Tj ET Q q 0 0 0 rg BT 124.54 146.10 Td (W) Tj ET Q q 0 0 0 rg BT 133.17 146.10 Td (e use historical data to estimate pre-vesting option forfeitures and record stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (expense only for those awards that are expected to vest. ) Tj ET Q q 0 0 0 rg BT 275.01 134.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.65 134.10 Td (e amortize the fair value of stock options on a straight-line basis over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (the requisite service periods of the awards, which are generally the vesting periods. ) Tj ET Q q 0 0 0 rg BT 384.98 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 393.62 122.10 Td (e value service-based restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (units using the intrinsic value method and amortize the value on a straight-line basis over the restriction period. ) Tj ET Q q 0 0 0 rg BT 497.20 110.10 Td (W) Tj ET Q q 0 0 0 rg BT 505.84 110.10 Td (e value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (performance restricted stock units using a Monte Carlo simulation model and amortize the value over the performance period, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (with no adjustment in future periods, based upon the actual shareholder return over the performance period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 66.10 Td (U.S.Generally ) Tj ET Q q 0 0 0 rg BT 135.66 66.10 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 175.36 66.10 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 54.10 Td (developed for use in valuing employee stock options. ) Tj ET Q q 0 0 0 rg BT 265.61 54.10 Td (The Black-Scholes option-pricing model was developed for use in ) Tj ET Q endstream endobj 111 0 obj <>] /Rotate 0 /Contents 112 0 R>> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 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 50.00 730.10 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 50.00 718.10 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 50.00 706.10 Td (considers historical volatility and market-based implied volatility) Tj ET Q q 0 0 0 rg BT 310.40 706.10 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 50.00 694.10 Td (employee data and could dif) Tj ET Q q 0 0 0 rg BT 163.11 694.10 Td (fer from actual forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 674.10 Td (See Note12 "Employee Stock ) Tj ET Q q 0 0 0 rg BT 197.23 674.10 Td (A) Tj ET Q q 0 0 0 rg BT 203.53 674.10 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 50.00 662.10 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 50.00 650.10 Td (stock-based employee compensation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 630.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.80 630.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 610.10 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 50.00 598.10 Td (provision \(benefit\) in each of the jurisdictions in which we operate. ) Tj ET Q q 0 0 0 rg BT 321.41 598.10 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 50.00 586.10 Td (provision \(benefit\) together with assessing temporary dif) Tj ET Q q 0 0 0 rg BT 276.99 586.10 Td (ferences resulting from dif) Tj ET Q q 0 0 0 rg BT 383.15 586.10 Td (fering treatment of items for tax and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 136.74 574.10 Td (These dif) Tj ET Q q 0 0 0 rg BT 174.05 574.10 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 50.00 562.10 Td (balance sheets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 542.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 542.10 Td (e record a valuation allowance to reduce our deferred tax assets to an amount that more likely than not will be realized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.10 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 50.00 518.10 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 50.00 506.10 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 50.00 494.10 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 50.00 482.10 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 514.91 482.10 Td (ged to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 470.10 Td (income in the period such determination was made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 450.10 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 50.00 438.10 Td (because such earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 313.60 438.10 Td (The total amount of unremitted earnings \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 426.10 Td (accumulated translation adjustments\) 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 50.00 414.10 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.31 414.10 Td ($471.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.20 414.10 Td ( at fiscal 2015year) Tj ET Q q 0 0 0 rg BT 263.08 414.10 Td (-end. ) Tj ET Q q 0 0 0 rg BT 285.67 414.10 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 50.00 402.10 Td (upon repatriation of such earnings is not practicably determinable. ) Tj ET Q q 0 0 0 rg BT 317.51 402.10 Td (W) Tj ET Q q 0 0 0 rg BT 326.15 402.10 Td (e have not, nor do we anticipate the need to, repatriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 390.10 Td (funds to the United States to satisfy domestic liquidity needs arising in the ordinary course of business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (ITEM 7A.QUANTIT) Tj ET Q q 0 0 0 rg BT 149.82 358.10 Td (A) Tj ET Q q 0 0 0 rg BT 156.30 358.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 182.71 358.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 245.58 358.10 Td (A) Tj ET Q q 0 0 0 rg BT 252.06 358.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 351.54 358.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 386.92 358.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 434.24 358.10 Td ( RISK) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (Market risk disclosur) Tj ET Q q 0 0 0 rg BT 142.04 338.10 Td (es) 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 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 485.61 318.10 Td (W) Tj ET Q q 0 0 0 rg BT 494.25 318.10 Td (e do not use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (derivative financial instruments for speculative or trading purposes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 71.48 286.10 Td (est rate sensitivity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 266.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 266.10 Td ( portion of our investment portfolio is composed of fixed income securities. ) Tj ET Q q 0 0 0 rg BT 385.70 266.10 Td (These securities are subject to interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (risk and will fall in value if market interest rates increase. If interest rates were to increase immediately \(whether due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (changes in overall market rates or credit worthiness of the issuers of our individual securities\) and uniformly by 10% from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (levels at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.70 230.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.70 230.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.20 230.10 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 50.00 218.10 Td (assets, would decline by an immaterial amount due to their short-term maturities. ) Tj ET Q q 0 0 0 rg BT 376.96 218.10 Td (W) Tj ET Q q 0 0 0 rg BT 385.60 218.10 Td (e have the ability to generally hold our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 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 523.85 206.10 Td (fected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (any significant degree by the ef) Tj ET Q q 0 0 0 rg BT 175.60 194.10 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 522.32 194.10 Td (, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 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 74.00 162.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.66 162.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.66 162.10 Td (year) Tj ET Q q 0 0 0 rg BT 150.16 162.10 Td (-end, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 305.72 162.10 Td (-sale debt securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.13 162.10 Td ($178.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.02 162.10 Td (, all of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (classified as short-term investments. Gross unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 398.32 150.10 Td (-sale debt securities were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.60 150.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.49 150.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.94 138.10 Td ($\(2,000\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.10 138.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 153.76 138.10 Td (, at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.63 138.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.63 138.10 Td (year) Tj ET Q q 0 0 0 rg BT 232.14 138.10 Td (-end. ) Tj ET Q q 0 0 0 rg BT 254.36 138.10 Td (At fiscal 2014year) Tj ET Q q 0 0 0 rg BT 330.52 138.10 Td (-end, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 486.07 138.10 Td (-sale debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (securities was $227.1 million, 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 50.00 114.10 Td (available-for) Tj ET Q q 0 0 0 rg BT 100.88 114.10 Td (-sale debt securities were $1.0 million and $\(45,000\), respectively) Tj ET Q q 0 0 0 rg BT 364.32 114.10 Td (, at fiscal 2014year) Tj ET Q q 0 0 0 rg BT 442.70 114.10 Td (-end.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 94.10 Td (eign curr) Tj ET Q q 0 0 0 rg BT 104.34 94.10 Td (ency exchange risk) 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 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 62.10 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 242.28 62.10 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 502.08 62.10 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 320.34 50.10 Td (Y) Tj ET Q q 0 0 0 rg BT 326.56 50.10 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 413.31 50.10 Td (W) Tj ET Q q 0 0 0 rg BT 421.94 50.10 Td (on and the Chinese Renminbi. ) Tj ET Q endstream endobj 113 0 obj <>] /Rotate 0 /Contents 114 0 R>> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.90 742.10 Td (, we have operations in dif) Tj ET Q q 0 0 0 rg BT 205.80 742.10 Td (ferent countries around the world with costs incurred in other local currencies, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (British Pound Sterling, Singapore Dollars and Malaysian Ringgit. ) Tj ET Q q 0 0 0 rg BT 314.99 730.10 Td (As a result, our earnings, cash flows and cash balances are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (exposed to fluctuations in foreign currency exchange rates. For example, we have significant manufacturing operations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Europe so that a weakening Euro is advantageous to our financial results. ) Tj ET Q q 0 0 0 rg BT 345.57 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 354.20 706.10 Td (e attempt to limit these exposures through financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (market instruments. ) Tj ET Q q 0 0 0 rg BT 131.75 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 140.39 694.10 Td (e utilize derivative instruments, primarily forward contracts with maturities of two months or less, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (manage our exposure associated with anticipated cash flows and net asset and liability positions denominated in foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (currencies. Gains and losses on the forward contracts are mitigated by gains and losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 524.15 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 532.78 670.10 Td (e do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (not use derivative financial instruments for trading purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 638.10 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 50.00 626.10 Td (denominated transactions generally expected to occur within the next 12months. ) Tj ET Q q 0 0 0 rg BT 376.39 626.10 Td (These cash flow hedges are designated for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.10 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 50.00 602.10 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 50.00 590.10 Td (earnings. See Note 6 "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 287.08 590.10 Td (Activities".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 570.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 570.10 Td (e do not anticipate any material adverse ef) Tj ET Q q 0 0 0 rg BT 251.54 570.10 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 50.00 558.10 Td (flows resulting from the use of these instruments. ) Tj ET Q q 0 0 0 rg BT 250.06 558.10 Td (There can be no assurance that these strategies will be ef) Tj ET Q q 0 0 0 rg BT 476.45 558.10 Td (fective or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 546.10 Td (transaction losses can be minimized or forecasted accurately) Tj ET Q q 0 0 0 rg BT 291.19 546.10 Td (. ) Tj ET Q q 0 0 0 rg BT 296.01 546.10 Td (While we model currency valuations and fluctuations, these may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 534.10 Td (not ultimately be accurate. If a financial counterparty to any of our hedging arrangements experiences financial dif) Tj ET Q q 0 0 0 rg BT 508.23 534.10 Td (ficulties or is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 522.10 Td (otherwise unable to honor the terms of the foreign currency hedge, we may experience material financial losses. In the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 510.10 Td (economic environment, the risk of failure of a financial party remains high.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 490.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.50 490.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.21 490.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.47 490.10 Td ($271.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.36 490.10 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 50.00 478.10 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 261.06 478.10 Td ($90.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 317.45 485.03 241.60 -9.09 re f /GS0 gs q 0 0 0 rg BT 317.45 478.10 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 50.00 473.03 30.27 -9.09 re f /GS0 gs q 0 0 0 rg BT 50.00 466.10 Td (dollar) Tj ET Q q 0 0 0 rg BT 72.77 466.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 446.10 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 50.00 434.10 Td (results of operations, cash flows or financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 414.10 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 436.66 414.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.36 414.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.18 414.10 Td (The table ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 402.10 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 50.00 390.10 Td (contract exchange rate as of the contract maturity date and fair value. ) Tj ET Q q 0 0 0 rg BT 328.85 390.10 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 50.00 378.10 Td (contracts valued at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.47 378.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.17 378.10 Td ( rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 358.10 Td (Forward contracts to sell \(buy\) foreign currencies \(in thousands, except contract rates\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 319.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 319.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 319.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 319.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 319.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 319.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 291.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 291.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 291.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 291.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 291.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 291.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 263.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 263.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 263.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 263.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 263.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 263.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 235.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 235.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 235.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 235.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 235.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 235.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 207.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 207.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 207.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 207.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 207.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 207.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 179.60 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 179.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 179.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 179.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 179.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 179.60 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 373.5 319.6 m 433.5 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 319.6 m 497.5 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 319.6 m 561.5 319.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.05 331.68 Td (A) Tj ET Q q 0 0 0 rg BT 394.23 331.68 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.65 323.68 Td (Contract Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.20 331.68 Td (U.S. Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.10 323.68 Td (Contract ) Tj ET Q q 0 0 0 rg BT 473.61 323.68 Td (V) Tj ET Q q 0 0 0 rg BT 478.65 323.68 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.05 323.83 Td (U.S. Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 310.17 Td (Non-Designated - For US Dollars:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 296.17 Td (Euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 296.17 Td (1.1282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 296.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 296.22 Td (\(52,669) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 296.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 296.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 296.22 Td (\(33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 296.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 282.17 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 282.17 Td (119.6796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 282.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 282.17 Td (15,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 282.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 282.17 Td (76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 268.17 Td (British Pound) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 268.17 Td (1.5336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 268.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 268.17 Td (2,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 268.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 268.22 Td (\(17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 268.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 254.17 Td (South Korean Won) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.60 254.17 Td (1,178.999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 254.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 254.17 Td (17,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 254.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 254.22 Td (\(30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 254.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 240.17 Td (Chinese Renminbi) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 240.17 Td (6.4248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 240.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 240.17 Td (10,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 240.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 240.17 Td (106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 226.17 Td (Singapore Dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 226.17 Td (1.4077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 226.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 226.22 Td (\(2,003) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 226.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 226.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 226.17 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 212.17 Td (Malaysian Ringgit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 212.17 Td (4.1793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 212.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 212.17 Td (2,162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 212.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 212.22 Td (\(115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 212.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 184.17 Td (Designated - for Euros:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 170.17 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 170.17 Td (117.3609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 170.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 170.17 Td (2,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 170.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.30 170.22 Td (\(41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 170.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (ITEM 8.FINANCIAL) Tj ET Q q 0 0 0 rg BT 152.79 142.10 Td ( ST) Tj ET Q q 0 0 0 rg BT 166.78 142.10 Td (A) Tj ET Q q 0 0 0 rg BT 173.26 142.10 Td (TEMENTS ) Tj ET Q q 0 0 0 rg BT 224.11 142.10 Td (AND SUPPLEMENT) Tj ET Q q 0 0 0 rg BT 315.87 142.10 Td (AR) Tj ET Q q 0 0 0 rg BT 329.96 142.10 Td (Y) Tj ET Q q 0 0 0 rg BT 336.81 142.10 Td ( DA) Tj ET Q q 0 0 0 rg BT 353.01 142.10 Td (T) Tj ET Q q 0 0 0 rg BT 358.94 142.10 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 122.10 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 50.00 110.10 Td (are attached hereto and incorporated by reference herein. ) Tj ET Q q 0 0 0 rg BT 279.96 110.10 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 98.10 Td (page67 of this annual report.) Tj ET Q endstream endobj 115 0 obj <>] /Rotate 0 /Contents 116 0 R>> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 9.CHANGES IN ) Tj ET Q q 0 0 0 rg BT 161.68 742.25 Td (AND DISAGREEMENTS ) Tj ET Q q 0 0 0 rg BT 275.97 742.25 Td (WITH ) Tj ET Q q 0 0 0 rg BT 306.25 742.25 Td (ACCOUNT) Tj ET Q q 0 0 0 rg BT 356.07 742.25 Td (ANTS ON ) Tj ET Q q 0 0 0 rg BT 402.19 742.25 Td (ACCOUNTING ) Tj ET Q q 0 0 0 rg BT 473.59 742.25 Td (AND FINANCIAL) Tj ET Q q 0 0 0 rg BT 553.87 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 95.00 730.25 Td (DISCLOSURE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 710.25 Td (Not applicable.) Tj ET Q endstream endobj 117 0 obj <>] /Rotate 0 /Contents 118 0 R>> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 9A.CONTROLS ) Tj ET Q q 0 0 0 rg BT 161.96 742.25 Td (AND PROCEDURES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 722.25 Td (Management's Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 215.10 722.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 247.41 722.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 290.57 722.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 319.82 722.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 702.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 702.25 Td (e have evaluated the ef) Tj ET Q q 0 0 0 rg BT 174.07 702.25 Td (fectiveness of the design and operation of our disclosure controls and procedures, as such term is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 690.25 Td (defined in Rule13a-15\(e\) under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 278.81 690.25 Td (Act of 1934, as of the end of the period covered by this annual report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (\("Evaluation Date"\). ) Tj ET Q q 0 0 0 rg BT 134.34 678.25 Td (The controls evaluation was conducted under the supervision and with the participation of management, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 183.67 666.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 296.23 666.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 313.99 666.25 Td (. Based on this evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 515.42 666.25 Td (ficer and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (Chief Financial Of) Tj ET Q q 0 0 0 rg BT 124.80 654.25 Td (ficer concluded as of the Evaluation Date that our disclosure controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 496.69 654.25 Td (fective in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (providing reasonable assurance that information required to be disclosed by us in reports that we file or submit under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 630.25 Td (Securities Exchange ) Tj ET Q q 0 0 0 rg BT 133.31 630.25 Td (Act of 1934, as amended, is \(i\)recorded, processed, summarized and reported within the time periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 618.25 Td (specified in the Securities and Exchange Commission's rules and forms and \(ii\)accumulated and communicated to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 606.25 Td (management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 239.76 606.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 352.31 606.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 370.23 606.25 Td (, as appropriate, to allow timely decisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 594.25 Td (regarding required disclosures.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (Management's Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 223.69 574.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 255.44 574.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 554.25 Td (Management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 264.87 554.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 377.43 554.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 395.34 554.25 Td (, is responsible for establishing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 542.25 Td (maintaining adequate internal control over financial reporting \(as defined in Exchange ) Tj ET Q q 0 0 0 rg BT 397.37 542.25 Td (Act Rules13a-15\(f\) and 15d-15\(f\)\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (the Company) Tj ET Q q 0 0 0 rg BT 102.95 530.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 510.25 Td (Management assessed the ef) Tj ET Q q 0 0 0 rg BT 187.39 510.25 Td (fectiveness of our internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.40 510.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.11 510.25 Td (, utilizing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 498.25 Td (criteria set forth by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 259.78 498.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 333.18 498.25 Td (T) Tj ET Q q 0 0 0 rg BT 338.94 498.25 Td (readway Commission \("COSO"\) in Internal Control-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 486.25 Td (Integrated Framework \(2013\). Based on the assessment by management, we determined that our internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 474.25 Td (reporting was ef) Tj ET Q q 0 0 0 rg BT 114.79 474.25 Td (fective as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.16 474.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.86 474.25 Td (. ) Tj ET Q q 0 0 0 rg BT 235.68 474.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 261.32 474.25 Td (fectiveness of our internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.33 474.25 Td (October3, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 462.25 Td ( has been audited by Deloitte& ) Tj ET Q q 0 0 0 rg BT 198.95 462.25 Td (T) Tj ET Q q 0 0 0 rg BT 204.36 462.25 Td (oucheLLP) Tj ET Q q 0 0 0 rg BT 247.41 462.25 Td (, our independent registered public accounting firm, as stated in their report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 450.25 Td (which appears below) Tj ET Q q 0 0 0 rg BT 133.76 450.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (Inher) Tj ET Q q 0 0 0 rg BT 73.71 430.25 Td (ent Limitations Over) Tj ET Q q 0 0 0 rg BT 162.96 430.25 Td ( Internal Contr) Tj ET Q q 0 0 0 rg BT 228.33 430.25 Td (ols) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 410.25 Td (Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 398.25 Td (financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 386.25 Td (accounting principles \("GAAP"\). Because of its inherent limitations, internal control over financial reporting may not prevent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 374.25 Td (or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 148.31 374.25 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 309.47 374.25 Td (fectiveness for future periods are subject to the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 362.25 Td (controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.25 Td (procedures may deteriorate. Our internal control over financial reporting is designed to provide reasonable assurance regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.25 Td (the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.25 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.12 326.25 Td (. Our internal control over financial reporting includes those policies and procedures that:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 306.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 306.25 Td (pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 294.25 Td (dispositions of our assets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 279.25 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 279.25 Td (provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 267.25 Td (statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 255.25 Td (being made only in accordance with authorizations of our management and directors; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 240.25 Td (\(iii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 240.25 Td ( provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 228.25 Td (disposition of our assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 316.26 228.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 208.25 Td (Management, including our CEO and CFO, does not expect that our internal controls will prevent or detect all errors and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.25 Td (all fraud. ) Tj ET Q q 0 0 0 rg BT 88.04 196.25 Td (A) Tj ET Q q 0 0 0 rg BT 94.71 196.25 Td ( control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.25 Td (that the objectives of the control system are met. Further) Tj ET Q q 0 0 0 rg BT 275.64 184.25 Td (, the design of a control system must reflect the fact that there are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.25 Td (resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.25 Td (in all control systems, no evaluation of internal controls can provide absolute assurance that all control issues and instances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.25 Td (fraud, if any) Tj ET Q q 0 0 0 rg BT 98.50 148.25 Td (, have been detected. ) Tj ET Q q 0 0 0 rg BT 184.01 148.25 Td (Also, any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 302.12 148.25 Td (fectiveness of controls in future periods are subject to the risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.25 Td (that those internal controls may become inadequate because of changes in business conditions, or that the degree of compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.25 Td (with the policies or procedures may deteriorate.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 104.25 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 162.89 104.25 Td (ol Over) Tj ET Q q 0 0 0 rg BT 194.64 104.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 84.25 Td (There were no changes in our internal control over financial reporting that occurred during the quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.32 84.25 Td (October3, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 72.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 72.25 Td ( that have materially af) Tj ET Q q 0 0 0 rg BT 162.00 72.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 348.95 72.25 Td (fect, our internal control over financial reporting.) Tj ET Q endstream endobj 119 0 obj <>] /Rotate 0 /Contents 120 0 R>> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (57) Tj ET Q BT /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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.25 690.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 334.76 690.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 392.44 690.25 Td (olIntegrated Framework \(2013\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.59 690.25 Td (issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 678.25 Td (by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 193.42 678.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 266.83 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 272.58 678.25 Td (readway Commission. ) Tj ET Q q 0 0 0 rg BT 364.34 678.25 Td (The Company's management is responsible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 666.25 Td (maintaining ef) Tj ET Q q 0 0 0 rg BT 107.86 666.25 Td (fective internal control over financial reporting and for its assessment of the ef) Tj ET Q q 0 0 0 rg BT 421.45 666.25 Td (fectiveness of internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 654.25 Td (financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 642.25 Td (responsibility is to express an opinion on the Company's internal control over financial reporting based on our audit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 622.25 Td (e conducted our audit in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 398.94 622.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (States\). ) Tj ET Q q 0 0 0 rg BT 82.04 610.25 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 511.69 610.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 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 50.00 586.25 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 50.00 574.25 Td (and operating ef) Tj ET Q q 0 0 0 rg BT 114.79 574.25 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 50.00 562.25 Td (considered necessary in the circumstances. ) Tj ET Q q 0 0 0 rg BT 223.64 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 232.28 562.25 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 74.00 542.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.67 542.25 Td ( company's internal control over financial reporting is a process designed by) Tj ET Q q 0 0 0 rg BT 384.79 542.25 Td (, or under the supervision of, the company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 530.25 Td (principal executive and principal financial of) Tj ET Q q 0 0 0 rg BT 229.46 530.25 Td (ficers, or persons performing similar functions, and ef) Tj ET Q q 0 0 0 rg BT 445.05 530.25 Td (fected by the company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 518.25 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 50.00 506.25 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 50.00 494.25 Td (principles. ) Tj ET Q q 0 0 0 rg BT 93.88 494.25 Td (A) Tj ET Q q 0 0 0 rg BT 100.55 494.25 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 50.00 482.25 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 50.00 470.25 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 50.00 458.25 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 50.00 446.25 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 50.00 434.25 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 50.00 422.25 Td (could have a material ef) Tj ET Q q 0 0 0 rg BT 145.88 422.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 402.25 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 50.00 390.25 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 50.00 378.25 Td (timely basis. ) Tj ET Q q 0 0 0 rg BT 102.50 378.25 Td (Also, projections of any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 278.38 378.25 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 50.00 366.25 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 50.00 354.25 Td (compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 334.25 Td (In our opinion, the Company maintained, in all material respects, ef) Tj ET Q q 0 0 0 rg BT 344.58 334.25 Td (fective internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.71 322.25 Td (, based on the criteria established in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 260.21 322.25 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 317.90 322.25 Td (olIntegrated Framework \(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.55 322.25 Td ( issued by the Committee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 119.26 310.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 192.67 310.25 Td (T) Tj ET Q q 0 0 0 rg BT 198.43 310.25 Td (readway Commission.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 290.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 290.25 Td (e have also audited, in accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 391.44 290.25 Td (Accounting Oversight Board \(United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.25 Td (States\), 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 345.73 278.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.43 278.25 Td (, of the Company and our report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.25 Td (dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 266.25 Td (December1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.74 266.25 Td (, expressed an unqualified opinion on those consolidated financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (/s/ DELOITTE& ) Tj ET Q q 0 0 0 rg BT 122.86 226.25 Td (T) Tj ET Q q 0 0 0 rg BT 128.79 226.25 Td (OUCHELLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.25 Td (San Jose, California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 191.25 Td (December1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.58 191.25 Td ( ) Tj ET Q endstream endobj 121 0 obj <>] /Rotate 0 /Contents 122 0 R>> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 710.10 Td (ITEM 9B.OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 190.10 710.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 690.10 Td (Not applicable.) Tj ET Q endstream endobj 123 0 obj <>] /Rotate 0 /Contents 124 0 R>> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (59) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 285.90 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 291.27 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 305.36 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 311.85 742.25 Td ( III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 10.DIRECT) Tj ET Q q 0 0 0 rg BT 140.39 718.25 Td (ORS, EXECUTIVE OFFICERS ) Tj ET Q q 0 0 0 rg BT 280.42 718.25 Td (AND CORPORA) Tj ET Q q 0 0 0 rg BT 354.39 718.25 Td (TE GOVERNANCE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 698.25 Td (Information regarding: \(i\)our directors will be set forth under the caption "Proposal One Election of Directors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 686.25 Td (Nominees"; \(ii\)compliance with Section16\(a\) of the Securities ) Tj ET Q q 0 0 0 rg BT 306.51 686.25 Td (Act of 1933 will be set forth under the caption "Section16\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 674.25 Td (Beneficial Ownership Reporting Compliance"; \(iii\)the process for stockholders to nominate directors will be set forth under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 662.25 Td (the caption "Proposal OneElection of DirectorsProcess for Recommending Candidates for Election to the Board of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 650.25 Td (Directors"; \(iv\)our audit committee and audit committee financial expert will be set forth under the caption "Proposal One) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 638.25 Td (Election of DirectorsBoard Meetings and CommitteesAudit Committee"; in our proxy statement for use in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.25 Td (with an upcoming ) Tj ET Q q 0 0 0 rg BT 124.16 626.25 Td (Annual Meeting of Stockholders to be held in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.68 626.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.68 626.25 Td ( \(the ") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.31 626.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.31 626.25 Td ( Proxy Statement"\) and is incorporated herein ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.25 Td (by reference or included in a Form10-K/A) Tj ET Q q 0 0 0 rg BT 221.33 614.25 Td ( as an amendment to this Form10-K. ) Tj ET Q q 0 0 0 rg BT 372.52 614.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.57 614.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.57 614.25 Td ( Proxy Statement or Form10-K/A) Tj ET Q q 0 0 0 rg BT 546.95 614.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.25 Td (will be filed with the SEC within 120days after the end of our fiscal year) Tj ET Q q 0 0 0 rg BT 342.98 602.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 580.9169921875 m 150.0048828125 580.9169921875 l s q 0 0 0 rg BT 50.00 582.25 Td (Business Conduct Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 562.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 562.25 Td (e have adopted a worldwide Business Conduct Policy that applies to the members of our Board of Directors, executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 550.25 Td (ficers and other employees. ) Tj ET Q q 0 0 0 rg BT 170.42 550.25 Td (This policy is posted on our ) Tj ET Q q 0 0 0 rg BT 284.13 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 292.76 550.25 Td (ebsite at ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 328.31 550.25 Td (www) Tj ET Q q 0 0 0 rg BT 347.57 550.25 Td (.coher) Tj ET Q q 0 0 0 rg BT 372.47 550.25 Td (ent.com) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.85 550.25 Td ( and may be found as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 530.25 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 530.25 Td (From our main ) Tj ET Q q 0 0 0 rg BT 166.31 530.25 Td (W) Tj ET Q q 0 0 0 rg BT 174.95 530.25 Td (eb page, first click on "Company" and then on "corporate governance.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 510.25 Td (2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 510.25 Td (Next, click on "Business Conduct Policy) Tj ET Q q 0 0 0 rg BT 266.31 510.25 Td (.") Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 490.25 Td (e intend to satisfy the disclosure requirement under Item5.05 of Form8-K regarding an amendment to, or waiver from, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (a provision of this Business Conduct Policy by posting such information on our ) Tj ET Q q 0 0 0 rg BT 370.64 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 379.28 478.25 Td (ebsite, at the address and location specified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 446.25 Td (Stockholders may request free printed copies of our worldwide Business Conduct Policy from:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 426.25 Td (Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.95 414.25 Td (Attention: Investor Relations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.20 402.25 Td (5100 Patrick Henry Drive) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.25 390.25 Td (Santa Clara, California 95054) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 368.68505859375 m 128.5791015625 368.68505859375 l s q 0 0 0 rg BT 50.00 370.25 Td (Executive Officers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 350.25 Td (The name, age, position and a brief account of the business experience of our executive of) Tj ET Q q 0 0 0 rg BT 434.51 350.25 Td (ficers as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.88 350.25 Td (December1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.46 350.25 Td ( ) 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 (54) 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 (63) 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 (55) 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 (56) 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 (67) 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 (47) 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 endstream endobj 125 0 obj <>] /Rotate 0 /Contents 126 0 R>> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (60) Tj ET Q BT /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 q 0 0 0 rg BT 88.89 718.10 Td (As previously disclosed, Ms. Simonet has notified us of her intent to retire ef) Tj ET Q q 0 0 0 rg BT 396.71 718.10 Td (fective February 1, 2016.) 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 35 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. Mr) Tj ET Q q 0 0 0 rg BT 216.08 386.10 Td (. DiMarco also serves on the NASDAQ Listing and Hearing Review Council.) 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 (2016) 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.07 294.10 Td (. ) Tj ET Q q 0 0 0 rg BT 363.89 294.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.94 294.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.94 294.10 Td ( Proxy Statement or Form10-K/A) Tj ET Q q 0 0 0 rg BT 538.32 294.10 Td ( will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (be filed with the SEC within 120days after the end of our fiscal year) Tj ET Q q 0 0 0 rg BT 324.93 282.10 Td (.) 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564.0833984375 l s q 0 0 1 rg BT 549.00 565.42 Td (70) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 539.0833984375 m 559 539.0833984375 l s q 0 0 1 rg BT 549.00 540.42 Td (71) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 514.0833984375 m 559 514.0833984375 l s q 0 0 1 rg BT 549.00 515.42 Td (72) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 499.0833984375 m 559 499.0833984375 l s q 0 0 1 rg BT 549.00 500.42 Td (74) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 544 484.0833984375 m 559 484.0833984375 l s q 0 0 1 rg BT 544.00 485.42 Td (106) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 131 0 obj <>] /Rotate 0 /Contents 132 0 R>> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (63) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 742.25 Td (2. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 122.00 742.25 Td (Consolidated Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 722.25 Td (Financial statement schedules have been omitted because they are either not required, not applicable or the information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 710.25 Td (required to be set forth therein is included in the Consolidated Financial Statements hereto.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 690.25 Td (3. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 122.00 690.25 Td (Exhibits ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 658.75 m 100 658.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 670.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 662.98 Td (Numbers) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 106.50 662.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 116.50 662.98 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 649.32 Td (3.1*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 649.32 Td (Restated and Amended Certificate of Incorporation. \(Previously filed as Exhibit3.1 to Form10-K for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 639.32 Td (fiscal year ended September29, 1990\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 624.32 Td (3.2*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 624.32 Td (Certificate of Amendment of Restated and Amended Certificate of Incorporation of Coherent,Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 614.32 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. \(Previously filed as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 484.32 Td (Exhibit10.1 to Form8-K, filed on December 17, 2014\)) 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 2013 Variable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.1 to Form 10-Q for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 433.42 Td (fiscal quarter ended December 28, 2013\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 54.75 408.88 Td (10.8***) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 90.50 408.88 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 418.42 Td (Fiscal 2014 Variable Compensation Plan Payout Scale \(Previously filed as Exhibit 10.2 to Form 10-Q for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 408.42 Td (fiscal quarter ended December 28, 2013\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 65.75 383.88 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 102.50 383.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 393.42 Td (Supplementary Retirement Plan. \(Previously filed as Exhibit10.5 to Form10-Q for the quarter ended April1,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 383.42 Td (2006\)) 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 (2005 Deferred Compensation Plan. \(Previously filed as Exhibit10.1 to Form10-Q for the fiscal quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 358.42 Td (ended December 31, 2011\)) 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 (Form of 2001 Stock Plan Terms and Conditions of Restricted Stock Units. \(Previously filed as Exhibit10.1 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 333.42 Td (Form8-K filed on November27, 2009\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.25 308.88 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 Amended Global Stock Option Agreement. \(Previously filed as Exhibit10.2 to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 308.42 Td (Form8-K filed on November27, 2009\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 66.25 283.67 Td (10.13*) 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 (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 116.50 283.42 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 66.25 258.67 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 Promissory Note \(Base Rate\) \(Previously filed as Exhibit 10.2 to Form 8-K filed on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 258.42 Td (June 5, 2012\)) 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 (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 116.50 233.42 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 66.25 208.67 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 (Form of Indemnification Agreement \(Previously filed as Exhibit10.18 to Form10-K for the year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 208.42 Td (October 2, 2010\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 183.67 Td (10.17*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 193.42 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 116.50 183.42 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 60.75 158.67 Td (10.18*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 168.42 Td (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 116.50 158.42 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 60.75 133.67 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 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 116.50 133.42 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 60.75 108.67 Td (10.20*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 119.32 Td (Form of Performance RSU Agreement under the 2011 Equity Incentive Plan. \(Previously filed as Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 109.32 Td (10.22 to Form 10-K for the fiscal year ended October 1, 2011\)) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 60.75 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 Time-Based RSU Agreement under the 2011 Equity Incentive Plan. \(Previously filed as Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 84.32 Td (10.23 to Form 10-K for the fiscal year ended October 1, 2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 69.32 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 Performance RSU Agreement under the 2011 Equity Incentive Plan \(Amended\) \(Previously filed as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 59.32 Td (Exhibit 10.23 to Form 10-K for the fiscal year ended September 29, 2012\)) Tj ET Q endstream endobj 133 0 obj <>] /Rotate 0 /Contents 134 0 R>> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (64) 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, as amended November 8, 2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 728.07 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed November 14, 2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 713.07 Td (10.24*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 713.07 Td (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 116.50 703.07 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed June 3, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 688.07 Td (10.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 688.07 Td (Form of Performance RSU ) Tj ET Q q 0 0 0 rg BT 226.49 688.07 Td (Agreement under the 201) Tj ET Q q 0 0 0 rg BT 328.02 688.07 Td (1 Equity Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 673.07 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 673.07 Td (Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 658.07 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 658.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 658.07 Td (Consent of Independent Registered Public Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 643.07 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 643.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 643.07 Td (Power of Attorney \(see signature page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 628.07 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 617.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 627.17 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 116.50 617.17 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 78.65 603.07 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 591.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 601.17 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 116.50 591.17 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 78.65 577.07 Td (32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 566.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 576.17 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 116.50 566.17 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.65 552.07 Td (32.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 541.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 551.17 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 116.50 541.17 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 50.00 525.00 Td (__________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 504.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 504.17 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 52.00 488.68 Td (**) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 490.07 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 52.00 473.68 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 474.17 Td (Identifies management contract or compensatory plans or arrangements required to be filed as an exhibit.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 135 0 obj <>] /Rotate 0 /Contents 136 0 R>> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (65) 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 (December 1, 2015) 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 401.70 439.72 Td (December 1, 2015) 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 401.70 399.72 Td (December 1, 2015) 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 401.70 359.72 Td (December 1, 2015) 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 401.70 319.72 Td (December 1, 2015) 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 401.70 279.72 Td (December 1, 2015) 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 401.70 239.72 Td (December 1, 2015) 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 401.70 199.72 Td (December 1, 2015) 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 401.70 159.72 Td (December 1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.05 149.72 Td (Date) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 137 0 obj <>] /Rotate 0 /Contents 138 0 R>> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 (2015) 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.69 562.25 Td ( have been audited by Deloitte& ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.41 550.25 Td (oucheLLP) Tj ET Q q 0 0 0 rg BT 98.46 550.25 Td (, an independent registered public accounting firm. ) Tj ET Q q 0 0 0 rg BT 304.59 550.25 Td (Their audit was conducted in accordance with the standards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (the Public Company ) Tj ET Q q 0 0 0 rg BT 133.61 538.25 Td (Accounting Oversight Board \(United States\) and included an integrated audit under such standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 518.25 Td (The ) Tj ET Q q 0 0 0 rg BT 91.50 518.25 Td (Audit Committee of the Board of Directors meets regularly with management, the internal auditors and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 506.25 Td (independent registered public accounting firm to review accounting, reporting, auditing and internal control matters. ) Tj ET Q q 0 0 0 rg BT 517.72 506.25 Td (The ) Tj ET Q q 0 0 0 rg BT 535.22 506.25 Td (Audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 494.25 Td (Committee has direct and private access to both internal and external auditors.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 474.25 Td (See Item9A) Tj ET Q q 0 0 0 rg BT 123.43 474.25 Td ( for Management's Report on Internal Control Over Financial Reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 454.25 Td (e are committed to enhancing shareholder value and fully understand and embrace our fiduciary oversight ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (responsibilities. ) Tj ET Q q 0 0 0 rg BT 115.37 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 124.01 442.25 Td (e are dedicated to ensuring that our high standards of financial accounting and reporting as well as our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (underlying system of internal controls are maintained. Our culture demands integrity and we have the highest confidence in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (processes, internal controls, and people, who are objective in their responsibilities and operate under the highest level of ethical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (standards.) 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 endstream endobj 139 0 obj <>] /Rotate 0 /Contents 140 0 R>> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (67) Tj ET Q BT /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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.25 670.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.69 670.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.95 670.25 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.32 658.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.75 522.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.19 522.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.46 522.25 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.21 510.25 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 466.25 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 \(2013\)) 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 (December1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.95 442.25 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 (December1, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.58 366.25 Td ( ) Tj ET Q endstream endobj 141 0 obj <>] /Rotate 0 /Contents 142 0 R>> endobj 142 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (68) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 611.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 611.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 611.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 581.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 581.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 581.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 581.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 551.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 551.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 551.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 551.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 521.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 521.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 521.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 521.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 491.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 491.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 491.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 491.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 461.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 461.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 461.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 461.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 431.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 431.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 431.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 431.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 401.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 401.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 401.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 401.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 371.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 371.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 371.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 371.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 341.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 341.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 341.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 341.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 311.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 311.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 311.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 311.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 281.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 281.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 281.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 281.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 251.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 251.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 251.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 251.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 31.00 221.75 425.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 221.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 516.00 221.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 520.00 221.75 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 456 671.75 m 516 671.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 671.75 m 580 671.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 551.75 m 580 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 551.75 m 516 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 551.75 m 580 551.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 476.75 m 516 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 476.75 m 580 476.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 460.75 m 516 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 462.75 m 516 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 460.75 m 580 460.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 462.75 m 580 462.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 386.75 m 516 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 386.75 m 580 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 236.75 m 516 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 236.75 m 580 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 221.75 m 516 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 207.75 m 516 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 205.75 m 516 205.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 221.75 m 580 221.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 207.75 m 580 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 520 205.75 m 580 205.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.55 683.83 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.50 675.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.10 683.83 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 541.50 675.83 Td (2014) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 631.43 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 631.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 631.42 Td (91,217) 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 (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 616.42 Td (227,058) 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 $3,015 in 2015 and $1,155 in 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 601.43 Td (142,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 601.42 Td (137,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 586.42 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 586.43 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 586.42 Td (170,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 571.42 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 571.43 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 571.42 Td (27,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 556.42 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 556.43 Td (28,118) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 556.42 Td (27,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 541.42 Td (Total current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 541.43 Td (680,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 541.42 Td (681,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 526.42 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 526.43 Td (102,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 526.42 Td (107,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 511.42 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 511.43 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 511.42 Td (109,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 496.42 Td (Intangible assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 496.43 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 496.42 Td (31,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 481.42 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 481.43 Td (61,108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 481.42 Td (69,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 466.42 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 466.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 466.43 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 466.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 466.42 Td (999,375) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.00 451.43 Td (LIABILITIES AND STOCKHOLDERS' EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 451.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 436.42 Td (Current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 436.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 421.42 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 421.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 421.43 Td (33,379) 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 548.65 421.42 Td (32,784) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 406.42 Td (Income taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 406.43 Td (4,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 406.42 Td (2,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 391.42 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 391.43 Td (84,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 391.42 Td (82,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 376.42 Td (Total current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 376.43 Td (122,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 376.42 Td (117,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 361.42 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 361.43 Td (49,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 361.42 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 346.42 Td (Commitments and contingencies \(Note10\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 331.42 Td (Stockholders' equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 331.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 45.50 316.42 Td (Common stock, par value $.01:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 301.42 Td (Authorized500,000 shares;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 286.42 Td (Outstanding23,970 shares in 2015 and 24,950 shares in 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 497.15 286.43 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.15 286.42 Td (248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 271.42 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 271.43 Td (128,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 271.42 Td (184,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 256.42 Td (Accumulated other comprehensive income \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.30 256.48 Td (\(9,513) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 512.15 256.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 256.42 Td (34,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 241.42 Td (Retained earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 241.43 Td (677,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 241.42 Td (600,677) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 226.42 Td (Total stockholders' equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 226.43 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 226.42 Td (819,649) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 33.50 211.42 Td (Total liabilities and stockholders' equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 211.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 211.43 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 211.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 211.42 Td (999,375) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.35 187.25 Td (See accompanying Notes to Consolidated Financial Statements.) 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f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 468.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 468.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 468.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 438.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 438.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 438.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 438.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 438.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 503.50 438.75 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 408.75 332.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.50 408.75 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 408.75 4.00 -15.00 re f /GS0 gs 0.8 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d 0 J 0 j 3 M 442.5 408.75 m 499.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 408.75 m 561.5 408.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 378.75 m 438.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 378.75 m 499.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 378.75 m 561.5 378.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 362.75 m 438.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 364.75 m 438.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 362.75 m 499.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 364.75 m 499.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 362.75 m 561.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 364.75 m 561.5 364.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 332.75 m 438.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 334.75 m 438.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 332.75 m 499.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 334.75 m 499.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 332.75 m 561.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 334.75 m 561.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 317.75 m 438.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 319.75 m 438.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 317.75 m 499.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 319.75 m 499.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 317.75 m 561.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 319.75 m 561.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 287.75 m 438.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 289.75 m 438.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 274.75 m 438.5 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 272.75 m 438.5 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 287.75 m 499.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 289.75 m 499.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 274.75 m 499.5 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 272.75 m 499.5 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 287.75 m 561.5 287.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 289.75 m 561.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 274.75 m 561.5 274.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 272.75 m 561.5 272.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 674.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.95 673.98 Td (Year Ended) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 653.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.55 660.98 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.50 652.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.10 660.98 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.50 652.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.60 660.98 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 524.00 652.98 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 638.43 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 638.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 638.43 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 638.42 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 638.42 Td (810,126) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 623.43 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 623.43 Td (467,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 623.42 Td (481,249) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 623.42 Td (487,855) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 608.43 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 608.43 Td (335,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 608.42 Td (313,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 608.42 Td (322,271) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 593.43 Td (Operating expenses:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 593.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 593.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 593.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 578.42 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 578.43 Td (81,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 578.42 Td (79,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 578.42 Td (82,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 563.42 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 563.43 Td (149,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 563.42 Td (154,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 563.42 Td (149,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 548.42 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 548.48 Td (\(1,316) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 548.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 533.42 Td (Impairment of investment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 533.43 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 533.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 533.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 518.42 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 518.43 Td (2,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 518.42 Td (3,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 518.42 Td (5,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 503.42 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 503.43 Td (234,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 503.42 Td (236,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 503.42 Td (237,372) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 488.43 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 488.43 Td (100,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 488.42 Td (76,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 488.42 Td (84,899) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 473.43 Td (Other income \(expense\):) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 473.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 458.42 Td (Interest and dividend income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 458.43 Td (595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 458.42 Td (397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 458.42 Td (230) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 443.42 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.30 443.48 Td (\(48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 443.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.30 443.47 Td (\(72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 443.47 Td (\(164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 428.42 Td (Othernet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 428.48 Td (\(1,726) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 428.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 428.42 Td (2,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 428.47 Td (\(1,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 428.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 413.42 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 413.48 Td (\(1,179) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 413.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 413.42 Td (2,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 413.47 Td (\(1,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 413.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 398.43 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 398.43 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 398.42 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 398.42 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 383.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 383.43 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 383.42 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 383.42 Td (17,141) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 368.43 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 368.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 368.43 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 368.42 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 368.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 368.42 Td (66,355) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 353.43 Td (Net income per share:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 353.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 353.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 353.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 338.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 338.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.15 338.43 Td (3.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 338.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 338.42 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 338.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 338.42 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 323.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 323.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.15 323.43 Td (3.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 323.42 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 323.42 Td (2.70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 308.43 Td (Shares used in computation:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.00 308.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 308.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 308.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 293.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 293.43 Td (24,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 293.42 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 293.42 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 278.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 278.43 Td (24,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 278.42 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 278.42 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.35 254.25 Td (See accompanying Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 145 0 obj <>] /Rotate 0 /Contents 146 0 R>> endobj 146 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 742.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 742.25 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 742.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 154.75 730.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 214.57 730.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 249.13 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 255.60 730.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 320.52 730.25 Td ( COMPREHENSIVE INCOME) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 710.25 Td (\(In thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 657.75 250.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 657.75 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 657.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 657.75 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 657.75 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 657.75 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 630.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 630.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 630.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 630.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 630.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 630.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 600.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 600.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 600.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 84.50 560.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 560.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 560.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 560.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.50 560.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 462.50 560.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 678.75 m 394.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 678.75 m 398.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 678.75 m 458.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 678.75 m 462.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 678.75 m 522.5 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 657.75 m 394.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 657.75 m 458.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 657.75 m 522.5 657.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 560.75 m 394.5 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 560.75 m 458.5 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 560.75 m 522.5 560.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 545.75 m 394.5 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 531.75 m 394.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334.5 529.75 m 394.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 545.75 m 458.5 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 531.75 m 458.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 529.75 m 458.5 529.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 545.75 m 522.5 545.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 531.75 m 522.5 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462.5 529.75 m 522.5 529.75 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 682.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.95 682.98 Td (Year Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 662.42 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.05 669.98 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.00 661.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.60 669.98 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 661.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.60 669.98 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.00 661.98 Td (2013) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 635.43 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 635.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 635.42 Td (59,106) 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 (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 620.42 Td (Other comprehensive income \(loss\): ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 234.73 624.95 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 620.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 605.42 Td (T) Tj ET Q q 0 0 0 rg BT 101.76 605.42 Td (ranslation adjustment, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 241.17 609.95 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.80 605.48 Td (\(45,624) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 605.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 605.47 Td (\(19,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 605.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 605.42 Td (13,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 590.42 Td (Net gain \(loss\) on derivative instruments, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 312.62 594.95 Td (\(3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 590.43 Td (601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.30 590.47 Td (\(573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 590.42 Td (\)) 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) Tj ET Q q 0 0 0 rg BT 307.40 575.42 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 565.42 Td (securities, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 187.36 569.95 Td (\(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.65 565.43 Td (828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.30 565.47 Td (\(10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 565.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.30 565.47 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 565.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.00 550.42 Td (Other comprehensive income \(loss\), net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.80 550.48 Td (\(44,195) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 390.65 550.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 550.47 Td (\(19,768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.65 550.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 550.42 Td (13,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 535.42 Td (Comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.00 535.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 535.43 Td (32,214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 535.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 535.42 Td (39,338) 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 (80,350) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 499.25 Td (\(1\) Reclassification adjustments were not significant during fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.08 499.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.08 499.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.08 499.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.08 499.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.52 499.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.52 499.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 479.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 99.98 479.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.39 479.25 Td (ax expense \(benefit\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.79 479.25 Td ($\(1,768\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.95 479.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.95 479.25 Td ($250) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.95 479.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.39 479.25 Td ($\(746\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.05 479.25 Td ( was provided on translation adjustments during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.90 479.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.90 479.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 467.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.50 467.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.94 467.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.94 467.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 220.60 467.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 447.25 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 99.98 447.25 Td (T) Tj ET Q q 0 0 0 rg BT 105.39 447.25 Td (ax expense \(benefit\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.79 447.25 Td ($349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.79 447.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.23 447.25 Td ($\(332\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.89 447.25 Td ( was provided on net gain \(loss\) on derivative instruments during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 435.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.50 435.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.94 435.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.94 435.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 220.60 435.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 415.25 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 100.63 415.25 Td (T) Tj ET Q q 0 0 0 rg BT 106.04 415.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 118.67 415.25 Td (expense ) Tj ET Q q 0 0 0 rg BT 154.08 415.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.61 415.25 Td ($486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.61 415.25 Td ( ) Tj ET Q q 0 0 0 rg BT 188.81 415.25 Td (was ) Tj ET Q q 0 0 0 rg BT 207.56 415.25 Td (provided ) Tj ET Q q 0 0 0 rg BT 246.30 415.25 Td (on ) Tj ET Q q 0 0 0 rg BT 259.50 415.25 Td (changes ) Tj ET Q q 0 0 0 rg BT 294.90 415.25 Td (in ) Tj ET Q q 0 0 0 rg BT 305.88 415.25 Td (unrealized ) Tj ET Q q 0 0 0 rg BT 350.72 415.25 Td (gains ) Tj ET Q q 0 0 0 rg BT 375.03 415.25 Td (\(losses\) ) Tj ET Q q 0 0 0 rg BT 408.78 415.25 Td (on ) Tj ET Q q 0 0 0 rg BT 421.98 415.25 Td (available-for) Tj ET Q q 0 0 0 rg BT 472.85 415.25 Td (-sale ) Tj ET Q q 0 0 0 rg BT 494.93 415.25 Td (securities ) Tj ET Q q 0 0 0 rg BT 535.89 415.25 Td (during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 403.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.10 403.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.10 403.25 Td (. ) Tj ET Q q 0 0 0 rg BT 158.32 403.25 Td (T) Tj ET Q q 0 0 0 rg BT 163.73 403.25 Td (ax ) Tj ET Q q 0 0 0 rg BT 176.11 403.25 Td (expense ) Tj ET Q q 0 0 0 rg BT 211.26 403.25 Td (\(benefit\) ) Tj ET Q q 0 0 0 rg BT 248.63 403.25 Td (on ) Tj ET Q q 0 0 0 rg BT 261.57 403.25 Td (changes ) Tj ET Q q 0 0 0 rg BT 296.72 403.25 Td (in ) Tj ET Q q 0 0 0 rg BT 307.43 403.25 Td (unrealized ) Tj ET Q q 0 0 0 rg BT 352.02 403.25 Td (gains ) Tj ET Q q 0 0 0 rg BT 376.07 403.25 Td (\(losses\) ) Tj ET Q q 0 0 0 rg BT 409.56 403.25 Td (on ) Tj ET Q q 0 0 0 rg BT 422.50 403.25 Td (available-for) Tj ET Q q 0 0 0 rg BT 473.38 403.25 Td (-sale ) Tj ET Q q 0 0 0 rg BT 495.20 403.25 Td (securities ) Tj ET Q q 0 0 0 rg BT 535.90 403.25 Td (during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 391.25 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.66 391.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.66 391.25 Td ( ) Tj ET Q q 0 0 0 rg BT 155.16 391.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.09 391.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.09 391.25 Td ( ) Tj ET Q q 0 0 0 rg BT 194.59 391.25 Td (was ) Tj ET Q q 0 0 0 rg BT 212.65 391.25 Td (insignificant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 351.25 Td ( ) Tj ET Q endstream endobj 147 0 obj <>] /Rotate 0 /Contents 148 0 R>> endobj 148 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 742.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 742.25 Td (,INC. ) 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 201.50 702.25 Td (Thr) Tj ET Q q 0 0 0 rg BT 217.99 702.25 Td (ee ) Tj ET Q q 0 0 0 rg BT 229.00 702.25 Td (Y) Tj ET Q q 0 0 0 rg BT 235.11 702.25 Td (ears in the Period Ended ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.17 702.25 Td (October) Tj ET Q q 0 0 0 rg BT 377.97 702.25 Td (3, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.47 702.25 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 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 663.75 45.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 663.75 4.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 663.75 45.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 663.75 4.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 663.75 45.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 663.75 4.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 663.75 44.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 663.75 4.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 663.75 45.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 663.75 4.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 663.75 47.00 -53.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 597.75 221.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 597.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 597.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 597.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 597.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 597.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 597.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 597.75 44.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 597.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 597.75 45.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 597.75 4.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 597.75 47.00 -21.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 561.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 561.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 561.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 561.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 561.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 561.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 561.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 561.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 561.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 561.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 561.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 561.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 535.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 535.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 535.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 535.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 535.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 535.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 535.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 535.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 535.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 535.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 535.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 535.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 509.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 509.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 509.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 509.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 509.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 509.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 509.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 509.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 509.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 509.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 509.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 509.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 475.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 475.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 475.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 475.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 475.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 475.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 475.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 475.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 475.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 475.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 475.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 475.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 449.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 449.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 449.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 449.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 449.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 449.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 449.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 449.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 449.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 449.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 449.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 449.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 423.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 423.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 423.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 423.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 423.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 423.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 423.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 423.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 423.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 423.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 423.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 423.75 47.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 389.75 221.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 389.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.50 389.75 4.00 -13.00 re f 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1 rg /GS0 gs 368.50 337.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 337.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 337.75 44.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 461.50 337.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 337.75 45.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.50 337.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 514.50 337.75 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 270.5 610.75 m 315.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 610.75 m 364.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 610.75 m 413.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 610.75 m 461.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 610.75 m 510.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 610.75 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 270.5 610.75 m 315.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 610.75 m 364.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 610.75 m 413.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 610.75 m 461.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 610.75 m 510.5 610.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 610.75 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 270.5 509.75 m 315.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 509.75 m 364.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 509.75 m 413.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 509.75 m 461.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 509.75 m 510.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 509.75 m 561.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 509.75 m 315.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 509.75 m 364.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 509.75 m 413.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 509.75 m 461.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 509.75 m 510.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 509.75 m 561.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 423.75 m 315.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 423.75 m 364.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 423.75 m 413.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 423.75 m 461.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 423.75 m 510.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 423.75 m 561.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 423.75 m 315.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 423.75 m 364.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 423.75 m 413.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 423.75 m 461.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 423.75 m 510.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 423.75 m 561.5 423.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 324.75 m 315.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 324.75 m 364.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 324.75 m 413.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 324.75 m 510.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 324.75 m 561.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 324.75 m 315.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 312.75 m 315.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 310.75 m 315.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 324.75 m 364.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 312.75 m 364.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 310.75 m 364.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 324.75 m 413.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 312.75 m 413.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 310.75 m 413.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 324.75 m 461.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 312.75 m 461.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 310.75 m 461.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 324.75 m 510.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 312.75 m 510.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465.5 310.75 m 510.5 310.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 324.75 m 561.5 324.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 312.75 m 561.5 312.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514.5 310.75 m 561.5 310.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 276.70 630.98 Td (Common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.90 622.98 Td (Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.00 614.98 Td (Shar) Tj ET Q q 0 0 0 rg BT 297.30 614.98 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.70 638.98 Td (Common) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.90 630.98 Td (Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.35 622.98 Td (Par) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.85 614.98 Td (V) Tj ET Q q 0 0 0 rg BT 336.89 614.98 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.15 630.98 Td (Add.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.05 622.98 Td (Paid-in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.80 614.98 Td (Capital) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.00 646.98 Td (Accum.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.85 638.98 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.55 630.98 Td (Comp.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.30 622.98 Td (Income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.55 614.98 Td (\(Loss\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.15 622.98 Td (Retained) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.90 614.98 Td (Earnings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.75 614.98 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 601.98 Td (Balances, September 29, 2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 601.98 Td (23,746) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 601.98 Td (237) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.25 601.98 Td (131,708) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 601.98 Td (40,455) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 601.98 Td (499,256) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 601.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 601.98 Td (671,656) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 589.00 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 52.00 581.00 Td (employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.65 581.00 Td (718) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.65 581.00 Td (7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.25 581.00 Td (12,364) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 581.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 581.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 581.00 Td (12,371) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 566.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.65 566.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 566.42 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.60 566.00 Td (\(836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 566.00 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.65 566.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 566.42 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 566.00 Td (\(836) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 566.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 553.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.25 553.00 Td (19,017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 553.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 553.00 Td (19,017) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 540.70 Td (Cash dividends paid \($1.00 per common share\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 540.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 481.95 540.00 Td (\(24,040) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 506.65 540.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 540.00 Td (\(24,040) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 540.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 527.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 527.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.65 527.00 Td (66,355) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 527.00 Td (66,355) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 514.00 Td (Other comprehensive income, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 514.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 514.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 514.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 435.65 514.00 Td (13,995) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 514.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 514.00 Td (13,995) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 500.98 Td (Balances, September 28, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 500.98 Td (24,464) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 500.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 500.98 Td (244) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 500.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.25 500.98 Td (162,253) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 500.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 500.98 Td (54,450) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 500.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 500.98 Td (541,571) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 500.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 500.98 Td (758,518) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 488.00 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 52.00 480.00 Td (employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.65 480.00 Td (486) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.65 480.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.25 480.00 Td (2,870) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 480.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 480.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.25 480.00 Td (2,874) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 467.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 467.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 467.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.60 467.00 Td (\(52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 467.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 467.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 467.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 467.00 Td (\(52) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 467.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 454.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.25 454.00 Td (18,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 454.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 454.00 Td (18,971) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 441.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 441.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.65 441.00 Td (59,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 441.00 Td (59,106) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 428.00 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.95 428.00 Td (\(19,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.65 428.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 428.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 428.00 Td (\(19,768) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 428.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 414.98 Td (Balances, September 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 414.98 Td (24,950) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 414.98 Td (248) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.25 414.98 Td (184,042) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 435.65 414.98 Td (34,682) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 414.98 Td (600,677) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 414.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 414.98 Td (819,649) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 402.00 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 52.00 394.00 Td (employee taxes) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 299.65 394.00 Td (322) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 356.65 394.00 Td (4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.25 394.00 Td (2,002) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 394.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 394.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.25 394.00 Td (2,006) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 381.00 Td (Tax impact from employee stock options) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 395.60 381.00 Td (\(667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 381.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 381.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 381.00 Td (\(667) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 381.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 368.00 Td (Repurchases of common stock) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 290.95 368.00 Td (\(1,302) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 311.65 368.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 349.95 368.00 Td (\(14) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 360.65 368.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 385.60 368.00 Td (\(75,013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 410.30 368.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 368.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 368.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 368.00 Td (\(75,027) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 368.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 355.00 Td (Stock-based compensation) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 388.25 355.00 Td (18,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 355.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 355.00 Td (18,243) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 342.00 Td (Net income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 342.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 342.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 342.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 449.65 342.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 484.65 342.00 Td (76,409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.25 342.00 Td (76,409) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 329.00 Td (Other comprehensive loss, net of tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 303.65 329.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 352.65 329.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 402.30 329.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 432.95 329.00 Td (\(44,195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 457.65 329.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 498.65 329.00 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 329.00 Td (\(44,195) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 329.00 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 315.98 Td (Balances, October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.65 315.98 Td (23,970) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 315.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.65 315.98 Td (238) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 315.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.25 315.98 Td (128,607) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 315.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.95 315.98 Td (\(9,513) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.65 315.98 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 315.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.60 315.98 Td (677,086) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 315.98 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.25 315.98 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 292.25 Td (See accompanying Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 149 0 obj <>] /Rotate 0 /Contents 150 0 R>> endobj 150 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (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 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 49.50 663.50 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 663.50 60.00 -15.00 re f /GS0 gs 0.8 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0.9333333333333333 1 rg /GS0 gs 49.50 383.50 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 383.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 383.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 383.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 383.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 383.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 353.50 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 353.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 353.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 353.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 353.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 353.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 323.50 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 323.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 323.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 323.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 323.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 323.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 293.50 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 293.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 293.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 293.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 293.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 293.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 263.50 324.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 263.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 263.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 263.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 263.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 263.50 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 684.5 m 433.5 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 684.5 m 437.5 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 684.5 m 497.5 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 684.5 m 501.5 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 684.5 m 561.5 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 663.5 m 433.5 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 663.5 m 497.5 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 663.5 m 561.5 663.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 368.5 m 433.5 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 368.5 m 497.5 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 353.5 m 497.5 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 368.5 m 561.5 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 353.5 m 433.5 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 353.5 m 497.5 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 353.5 m 561.5 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 263.5 m 433.5 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 248.5 m 433.5 248.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 263.5 m 497.5 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 248.5 m 497.5 248.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 263.5 m 561.5 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 248.5 m 561.5 248.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 688.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.95 688.73 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 667.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.05 675.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.00 667.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.60 675.73 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 667.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.60 675.73 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 667.73 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 653.18 Td (Cash flows from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 653.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 653.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 653.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 638.17 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 638.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 638.18 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 638.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 638.17 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 638.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 638.17 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 623.17 Td (Adjustments to reconcile net income to net cash provided by operating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 613.17 Td (activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 613.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 598.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 598.18 Td (24,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 598.17 Td (26,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 598.17 Td (26,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 583.17 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 583.18 Td (8,244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 583.17 Td (9,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 583.17 Td (9,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 569.07 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 568.23 Td (\(1,316) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 568.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 568.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 568.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 553.17 Td (Impairment of investment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 553.18 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 553.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 553.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 538.17 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 538.18 Td (18,232) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 538.17 Td (18,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 538.17 Td (18,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 523.17 Td (Deferred income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 523.18 Td (838) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 523.22 Td (\(8,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 523.22 Td (\(1,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 508.17 Td (Other non-cash \(income\) expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 508.18 Td (526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 508.22 Td (\(1,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 508.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 508.17 Td (353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 493.17 Td (Changes in assets and liabilities, net of effect of acquisitions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 493.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 478.17 Td (Accounts receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.80 478.23 Td (\(10,099) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 478.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 478.22 Td (\(5,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 478.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 478.17 Td (4,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 463.17 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 463.18 Td (6,054) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 463.22 Td (\(6,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 463.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 463.17 Td (4,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 448.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 448.23 Td (\(2,048) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 448.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 448.17 Td (11,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 448.17 Td (10,128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 433.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 433.18 Td (802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 433.22 Td (\(3,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 433.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 433.17 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 418.17 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 418.18 Td (1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 418.22 Td (\(2,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 418.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 418.17 Td (6,116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 403.17 Td (Income taxes payable/receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 403.23 Td (\(6,759) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 403.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 403.22 Td (\(11,373) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 403.22 Td (\(20,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 403.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 388.17 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 388.18 Td (5,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 388.22 Td (\(580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 388.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 388.22 Td (\(11,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 388.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 373.17 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.65 373.18 Td (120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 373.17 Td (4,907) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 373.17 Td (1,902) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 358.18 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 358.18 Td (124,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 358.17 Td (91,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 358.17 Td (115,522) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 343.18 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 343.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 328.17 Td (Purchases of property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.80 328.23 Td (\(22,163) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 328.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 328.22 Td (\(23,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 328.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 328.22 Td (\(21,988) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 328.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 313.17 Td (Proceeds from dispositions of property and equipment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 313.18 Td (1,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 313.17 Td (585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 313.17 Td (1,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 298.17 Td (Purchases of available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.80 298.23 Td (\(312,592) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 298.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 298.22 Td (\(280,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 298.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 298.22 Td (\(228,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 298.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 283.17 Td (Proceeds from sales and maturities of available-for-sale securities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 283.18 Td (346,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 283.17 Td (193,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 283.17 Td (245,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 268.17 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 268.23 Td (\(9,300) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 268.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 268.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 268.22 Td (\(67,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 268.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 253.18 Td (Net cash provided by \(used in\) investing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 253.18 Td (3,167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 253.22 Td (\(109,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 253.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 253.22 Td (\(70,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 253.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.95 205.00 Td (\(continued\)) Tj ET Q endstream endobj 151 0 obj <>] /Rotate 0 /Contents 152 0 R>> endobj 152 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.00 601.50 57.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 601.50 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 601.50 57.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 601.50 4.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.00 601.50 58.00 -23.00 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 378 533.5 m 435 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 533.5 m 496 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 533.5 m 558 533.5 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 378 473.5 m 435 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 473.5 m 435 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 459.5 m 435 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 457.5 m 435 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 473.5 m 496 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 473.5 m 558 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 457.5 m 435 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 459.5 m 435 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 457.5 m 496 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 459.5 m 496 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 457.5 m 558 457.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 459.5 m 558 459.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.45 686.73 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.05 673.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 665.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.60 673.73 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 665.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.10 673.73 Td (September 28,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 665.73 Td (2013) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 636.18 Td (38,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 636.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 636.17 Td (61,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 636.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 636.17 Td (20,717) 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 (\(38,729) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 621.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 621.22 Td (\(61,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 621.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 621.22 Td (\(20,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 621.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 606.17 Td (Net change in capital lease obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 606.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 606.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 606.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 606.22 Td (\(17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 606.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 592.07 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 79.50 582.07 Td (plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 583.18 Td (7,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 583.17 Td (10,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 583.17 Td (16,541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 568.17 Td (Repurchase of common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.30 568.23 Td (\(75,027) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 568.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 568.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 568.17 Td () 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 482.15 553.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 553.22 Td (\(24,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 553.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 538.17 Td (Net settlement of restricted common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.30 538.23 Td (\(5,302) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 538.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 538.22 Td (\(7,811) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 538.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 538.22 Td (\(4,170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 538.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 523.18 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.30 523.23 Td (\(73,021) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 523.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 523.17 Td (2,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 523.22 Td (\(11,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 523.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 508.17 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 400.30 508.23 Td (\(15,214) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.15 508.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 508.22 Td (\(3,719) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 508.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 508.17 Td (9,512) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 493.18 Td (Net increase \(decrease\) in cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 493.18 Td (39,390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 493.22 Td (\(19,227) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 493.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 493.17 Td (42,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 478.17 Td (Cash and cash equivalents, beginning of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 478.18 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 478.17 Td (110,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 478.17 Td (67,761) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 463.18 Td (Cash and cash equivalents, end of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 463.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.65 463.18 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 463.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 463.17 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 463.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 463.17 Td (110,444) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 448.18 Td (Supplemental disclosure of cash flow information:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 448.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 448.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 448.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 433.17 Td (Cash paid during the year for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 433.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 433.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 433.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 418.17 Td (Interest) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 418.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.15 418.18 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 418.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 418.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 418.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.15 418.17 Td (164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 403.17 Td (Income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 403.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.65 403.18 Td (29,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 403.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.65 403.17 Td (44,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 403.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 403.17 Td (54,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 388.17 Td (Cash received during the year for:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 388.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 388.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 388.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 373.17 Td (Income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 373.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 373.18 Td (3,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 373.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 373.17 Td (7,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.50 373.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 373.17 Td (13,538) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 358.18 Td (Noncash investing and financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 358.17 Td () 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 502.50 358.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 343.17 Td (Unpaid property and equipment purchases) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 343.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.65 343.18 Td (1,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 343.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 343.17 Td (721) 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 531.65 343.17 Td (1,550) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.10 299.00 Td (\(concluded\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 279.00 Td (See accompanying Notes to Consolidated Financial Statements) Tj ET Q endstream endobj 153 0 obj <>] /Rotate 0 /Contents 154 0 R>> endobj 154 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (74) 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 (2015) 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 (2014) 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 (2013) 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 (October3, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (2015) 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 (September27, 2014) 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 (September28, 2013) 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 (2015) 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 (2014) 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 (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.75 554.25 Td ( for convenience. Fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.97 554.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.97 554.25 Td ( includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.30 554.25 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 554.25 Td ( weeks and fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.98 554.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.98 554.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.42 554.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.42 554.25 Td ( include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.85 554.25 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.85 554.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (weeks. ) Tj ET Q q 0 0 0 rg BT 79.31 542.25 Td (The fiscal years of the majority of our international subsidiaries end on September 30. ) Tj ET Q q 0 0 0 rg BT 425.60 542.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 474.94 542.25 Td (, the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.25 Td (statements of these subsidiaries as of that date and for the years then ended have been used for our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (statements. Management believes that the impact of the use of dif) Tj ET Q q 0 0 0 rg BT 311.74 518.25 Td (ferent year) Tj ET Q q 0 0 0 rg BT 354.56 518.25 Td (-ends is immaterial to our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (statements taken as a whole.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 466.25 Td (The preparation of consolidated financial statements in conformity with Generally ) Tj ET Q q 0 0 0 rg BT 404.51 466.25 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 444.21 466.25 Td (Accounting Principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (\("GAAP"\) requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 350.46 454.25 Td (fect the reported amounts of assets and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 266.38 430.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 359.79 430.25 Td (fer from those estimates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (Basis of Pr) Tj ET Q q 0 0 0 rg BT 95.43 410.25 Td (esentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.25 Td (The consolidated financial statements include the accounts of Coherent,Inc. and its majority-owned subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (\(collectively) Tj ET Q q 0 0 0 rg BT 98.83 378.25 Td (, the "Company", "we", "our", or "Coherent"\). Intercompany balances and transactions have been eliminated. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Fair) Tj ET Q q 0 0 0 rg BT 67.64 358.25 Td ( ) Tj ET Q q 0 0 0 rg BT 69.96 358.25 Td (V) Tj ET Q q 0 0 0 rg BT 76.27 358.25 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 338.25 Td (The carrying amounts of certain of our financial instruments including accounts receivable, accounts payable and accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (liabilities approximate fair value due to their short maturities. Short-term investments are comprised of available-for) Tj ET Q q 0 0 0 rg BT 514.43 326.25 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (securities, which are carried at fair value. Other non-current assets include trading securities and life insurance contracts related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (to our deferred compensation plans; trading securities are carried at fair value and life insurance contracts are carried at cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (surrender values, which due to their ability to be converted to cash at that amount, approximate their fair values. Foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (exchange contracts are stated at fair value based on prevailing financial market information.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (Cash Equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 238.25 Td (All highly liquid investments with maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.54 238.25 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.53 238.25 Td ( months or less at the time of purchase are classified as cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (equivalents. ) Tj ET Q q 0 0 0 rg BT 99.49 226.25 Td (At fiscal 2015 year) Tj ET Q q 0 0 0 rg BT 175.65 226.25 Td (-end, cash and cash equivalents included cash and money market funds.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (Concentration of Cr) Tj ET Q q 0 0 0 rg BT 135.97 206.25 Td (edit Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 186.25 Td (Financial instruments that may potentially subject us to concentrations of credit risk consist principally of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.25 Td (equivalents, short-term investments and accounts receivable. ) Tj ET Q q 0 0 0 rg BT 294.42 174.25 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.08 174.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.08 174.25 Td (year) Tj ET Q q 0 0 0 rg BT 370.58 174.25 Td (-end, the majority of our short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.25 Td (investments are in US ) Tj ET Q q 0 0 0 rg BT 139.86 162.25 Td (T) Tj ET Q q 0 0 0 rg BT 145.62 162.25 Td (reasury and federal agency obligations. Cash equivalents and short-term investments are maintained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (with several financial institutions and may exceed the amount of insurance provided on such balances. ) Tj ET Q q 0 0 0 rg BT 461.04 150.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.54 150.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.25 150.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (held cash and cash equivalents and short-term investments outside the U.S.in certain of our foreign operations totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 126.25 Td ($271.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.65 126.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.65 126.25 Td ($90.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.54 126.25 Td ( of which was denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 494.41 126.25 Td (. ) Tj ET Q q 0 0 0 rg BT 499.23 126.25 Td (The majority of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.25 Td (our accounts receivable are derived from sales to customers for commercial applications. ) Tj ET Q q 0 0 0 rg BT 407.79 114.25 Td (W) Tj ET Q q 0 0 0 rg BT 416.42 114.25 Td (e perform ongoing credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (evaluations of our customers' financial condition and limit the amount of credit extended when deemed necessary but generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (require no collateral. In certain instances, we may require customers to issue a letter of credit. ) Tj ET Q q 0 0 0 rg BT 426.11 90.25 Td (W) Tj ET Q q 0 0 0 rg BT 434.75 90.25 Td (e maintain reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (potential credit losses. Our products are broadly distributed and there was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.64 78.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.08 78.25 Td ( customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 78.25 Td (21.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.48 78.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.92 78.25 Td (15.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.75 78.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.25 Td (accounts receivable at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.44 66.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.44 66.25 Td (and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.03 66.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.03 66.25 Td ( year) Tj ET Q q 0 0 0 rg BT 267.54 66.25 Td (-end. ) Tj ET Q q 0 0 0 rg BT 290.13 66.25 Td (There was another customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.55 66.25 Td (1) Tj ET Q q 0 0 0 rg BT 487.18 66.25 Td (1.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.01 66.25 Td ( of accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.25 Td (receivable at fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.95 54.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.95 54.25 Td ( year) Tj ET Q q 0 0 0 rg BT 166.46 54.25 Td (-end.) Tj ET Q endstream endobj 155 0 obj <>] /Rotate 0 /Contents 156 0 R>> endobj 156 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (Derivative Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 675.25 Td (Our primary objective for holding derivative financial instruments is to manage currency exchange rate risk. Principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.25 Td (currencies hedged include the Euro, South Korean ) Tj ET Q q 0 0 0 rg BT 253.14 663.25 Td (W) Tj ET Q q 0 0 0 rg BT 261.78 663.25 Td (on, Japanese ) Tj ET Q q 0 0 0 rg BT 314.44 663.25 Td (Y) Tj ET Q q 0 0 0 rg BT 320.66 663.25 Td (en, British Pound, Chinese Renminbi, Malaysian Ringgit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.25 Td (and Singapore dollar) Tj ET Q q 0 0 0 rg BT 132.26 651.25 Td (. Our derivative financial instruments are recorded at fair value, on a gross basis, and are included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.25 Td (current assets and other current liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 619.25 Td (Our accounting policies for derivative financial instruments are based on whether they meet the criteria for designation as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.25 Td (a cash flow hedge. Changes in the fair value of these cash flow hedges that are highly ef) Tj ET Q q 0 0 0 rg BT 401.97 607.25 Td (fective are recorded in accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 Td (other comprehensive income and reclassified into earnings in the same line item on the consolidated statements of operations as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.25 Td (the impact of the hedged transaction during the period in which the hedged transaction af) Tj ET Q q 0 0 0 rg BT 405.87 583.25 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 465.94 583.25 Td (The inef) Tj ET Q q 0 0 0 rg BT 499.35 583.25 Td (fective portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.25 Td (of cash flow hedges are recognized immediately in other income and expenses. Derivatives that we designate as cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (hedges are classified in the consolidated statements of cash flows in the same section as the underlying item, primarily within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 Td (cash flows from operating activities. ) Tj ET Q q 0 0 0 rg BT 197.61 547.25 Td (The changes in fair value of derivative instruments that are not designated as hedges are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (recognized immediately in other income and expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 515.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 515.25 Td (e formally document all relationships between hedging instruments and hedged items, as well as the risk management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (objective and strategy for undertaking various hedge transactions. ) Tj ET Q q 0 0 0 rg BT 315.07 503.25 Td (This process includes linking all derivatives that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (designated as cash-flow hedges to specific forecasted transactions. ) Tj ET Q q 0 0 0 rg BT 317.83 491.25 Td (W) Tj ET Q q 0 0 0 rg BT 326.47 491.25 Td (e also assess, both at the hedge) Tj ET Q q 0 0 0 rg BT 452.83 491.25 Td (s inception and on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (ongoing basis, whether the derivatives that are used in hedging transactions are highly ef) Tj ET Q q 0 0 0 rg BT 404.22 479.25 Td (fective in of) Tj ET Q q 0 0 0 rg BT 452.35 479.25 Td (fsetting changes in cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (flows of the hedged items. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (Accounts Receivable ) Tj ET Q q 0 0 0 rg BT 139.49 447.25 Td (Allowances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 427.25 Td (Accounts receivable allowances reflect our best estimate of probable losses inherent in our accounts receivable balances. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 415.25 Td (e regularly review allowances by considering factors such as historical experience, credit quality) Tj ET Q q 0 0 0 rg BT 443.72 415.25 Td (, the age of the accounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.25 Td (receivable balances and current economic conditions that may af) Tj ET Q q 0 0 0 rg BT 308.09 403.25 Td (fect a customer's ability to pay) Tj ET Q q 0 0 0 rg BT 429.49 403.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 383.25 Td (Activity in accounts receivable allowance is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 336.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 336.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 336.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 336.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 336.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 336.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 306.75 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 306.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 306.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 306.75 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 306.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 306.75 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 350.75 m 423.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 350.75 m 427.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 350.75 m 492.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 350.75 m 496.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 350.75 m 561.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 336.75 m 423.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 336.75 m 492.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 350.75 m 561.5 350.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 336.75 m 561.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 336.75 m 423.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 336.75 m 492.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 336.75 m 561.5 336.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 291.75 m 423.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 277.75 m 423.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 275.75 m 423.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 291.75 m 492.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 277.75 m 492.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 275.75 m 492.5 275.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 291.75 m 561.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 277.75 m 561.5 277.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 275.75 m 561.5 275.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 355.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.50 354.98 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 341.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 340.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 340.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 340.98 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 326.42 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 326.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 326.43 Td (1,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 326.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 326.42 Td (1,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 326.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 326.42 Td (1,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 311.42 Td (Additions charged to expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 311.43 Td (2,716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 311.42 Td (1,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 311.42 Td (1,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 296.42 Td (Deductions from reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.30 296.48 Td (\(856) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 296.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 296.47 Td (\(1,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 296.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 296.47 Td (\(1,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 296.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 281.42 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 281.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.15 281.43 Td (3,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 281.42 Td (1,155) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 281.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 281.42 Td (1,386) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 257.25 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 237.25 Td (Inventories are stated at the lower of cost \(first-in, first-out\) or market. Inventories are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 190.75 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 190.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 190.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 190.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 160.75 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 160.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 160.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 160.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 204.75 m 497.5 204.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 204.75 m 501.5 204.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 204.75 m 561.5 204.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 190.75 m 497.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 190.75 m 561.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 190.75 m 497.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 190.75 m 561.5 190.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 145.75 m 497.5 145.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 131.75 m 497.5 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 129.75 m 497.5 129.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 145.75 m 561.5 145.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 131.75 m 561.5 131.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 129.75 m 561.5 129.75 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 209.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.00 208.98 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 195.43 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 194.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 194.98 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 180.42 Td (Purchased parts and assemblies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 180.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 180.43 Td (50,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 180.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 180.42 Td (51,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 165.42 Td (Work-in-process) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 165.43 Td (56,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 165.42 Td (70,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 150.42 Td (Finished goods) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 150.43 Td (50,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 150.42 Td (48,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 135.42 Td (Total inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 135.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 135.43 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 135.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 135.42 Td (170,483) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 111.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.87 111.25 Td (operty and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 91.25 Td (Property and equipment are stated at cost and are depreciated or amortized using the straight-line method. Cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.25 Td (accumulated depreciation and amortization, and estimated useful lives are as follows \(dollars in thousands\):) Tj ET Q endstream endobj 157 0 obj <>] /Rotate 0 /Contents 158 0 R>> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (76) 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 (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.50 678.73 Td (2014) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.15 664.18 Td (6,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 664.17 Td (6,235) 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 (69,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 649.17 Td (73,154) 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 (230,208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 634.17 Td (224,133) 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 (31,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 619.17 Td (30,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.05 619.17 Td (1-15 years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 604.18 Td (337,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 604.17 Td (334,154) 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 (\(235,155) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 589.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.80 589.22 Td (\(226,730) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 589.17 Td (\)) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.15 574.18 Td (102,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 574.17 Td (107,424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 574.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 550.00 Td (Asset Retir) Tj ET Q q 0 0 0 rg BT 96.80 550.00 Td (ement Obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.00 Td (The fair value \(the present value of estimated cash flows\) of a liability for an asset retirement obligation is recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.00 Td (the period in which it is incurred if a reasonable estimate of fair value can be made. ) Tj ET Q q 0 0 0 rg BT 385.30 518.00 Td (The fair value of the liability is added to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.00 Td (carrying amount of the associated asset and this additional carrying amount is depreciated over the life of the asset. ) Tj ET Q q 0 0 0 rg BT 511.57 506.00 Td (All of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.00 Td (existing asset retirement obligations are associated with commitments to return the property to its original condition upon lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.00 Td (termination at various sites and costs to clean up and dispose of certain fixed assets at our Sunnyvale, California site. ) Tj ET Q q 0 0 0 rg BT 519.20 482.00 Td (W) Tj ET Q q 0 0 0 rg BT 527.84 482.00 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.00 Td (estimated that as of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.63 470.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.63 470.00 Td (year) Tj ET Q q 0 0 0 rg BT 193.14 470.00 Td (-end, gross expected future cash flows of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.75 470.00 Td ($3.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.64 470.00 Td ( would be required to fulfill these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.00 Td (obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 438.00 Td (The following table reconciles changes in our asset retirement liability for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.17 438.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.17 438.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.60 438.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 438.00 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 419.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 419.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 389.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 389.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 359.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 359.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 329.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 329.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 299.50 462.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.50 299.50 50.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 359.5 m 561.5 359.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 299.5 m 561.5 299.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 285.5 m 561.5 285.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 283.5 m 561.5 283.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 409.17 Td (Asset retirement liability as of September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 409.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 409.17 Td (2,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 394.17 Td (Adjustment to asset retirement obligations recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 394.17 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 379.17 Td (Accretion recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 379.17 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 364.17 Td (Changes due to foreign currency exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 364.22 Td (\(117) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 364.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 349.17 Td (Asset retirement liability as of September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 349.17 Td (2,222) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 334.17 Td (Adjustment to asset retirement obligations recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 334.17 Td (542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 319.17 Td (Accretion recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 319.17 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 304.17 Td (Changes due to foreign currency exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 304.22 Td (\(165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 304.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 289.17 Td (Asset retirement liability as of October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.00 289.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 289.17 Td (2,654) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 265.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 265.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.71 265.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.15 265.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.41 265.00 Td (, the asset retirement liability is included in Other long-term liabilities on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.00 Td (consolidated balance sheets. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 233.00 Td (Long-lived ) Tj ET Q q 0 0 0 rg BT 97.57 233.00 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 213.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 213.00 Td (e evaluate the carrying value of long-lived assets, including intangible assets, whenever events or changes in business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.00 Td (circumstances or our planned use of long-lived assets indicate that their carrying amounts may not be fully recoverable or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.00 Td (their useful lives are no longer appropriate. Reviews are performed to determine whether the carrying values of long-lived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.00 Td (assets are impaired based on a comparison to the undiscounted expected future net cash flows. If the comparison indicates that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.00 Td (impairment exists, long-lived assets that are classified as held and used are written down to their respective fair values. ) Tj ET Q q 0 0 0 rg BT 527.22 165.00 Td (When ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.00 Td (long-lived assets are classified as held for sale, they are written down to their respective fair values less costs to sell. Significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.00 Td (management judgment is required in the forecast of future operating results that is used in the preparation of expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.00 Td (undiscounted cash flows. For fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.96 129.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.96 129.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.96 129.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.96 129.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.40 129.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.40 129.00 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.81 129.00 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 129.00 Td ( significant asset impairments recorded other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.00 Td (the impairment of our investment in SiOnyx \(See Note 8. "Balance Sheet Details"\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 97.00 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 77.00 Td (Goodwill is tested for impairment on an annual basis and between annual tests in certain circumstances, and written down ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.00 Td (when impaired \(see Note7. "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 266.03 65.00 Td (Assets"\). In testing for impairment, we have the option to first assess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 53.00 Td (qualitative factors to determine whether it is more likely than not \(that is, a likelihood of more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.00 53.00 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.33 53.00 Td (\) that the fair value of a ) Tj ET Q endstream endobj 159 0 obj <>] /Rotate 0 /Contents 160 0 R>> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (reporting unit is less than its carrying amount. Moreover) Tj ET Q q 0 0 0 rg BT 274.89 695.10 Td (, an entity can bypass the qualitative assessment for any reporting unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (in any period and proceed directly to step one of the impairment test, and then resume performing the qualitative assessment in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (any subsequent period. In both our fiscal 2015 and 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 49.50 659.10 Td (goodwillfor our SLS reporting unit using the opening balance sheet as of the first day of the fourth quarter and noted no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (impairment. For the CLC reporting unit, we elected to bypass the qualitative assessment and proceed directly to performing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (first step of the goodwill impairment test. ) Tj ET Q q 0 0 0 rg BT 217.25 635.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 266.59 635.10 Td (, we performed our Step 1 test using the opening balance sheet as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (first day of the fourth quarter and noted no impairment in both fiscal 2015 and 2014. \(See Note 7 for additional discussion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (the fiscal 2015 analysis.\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (Intangible ) Tj ET Q q 0 0 0 rg BT 95.35 591.10 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 571.10 Td (Intangible assets, including acquired existing technology) Tj ET Q q 0 0 0 rg BT 300.02 571.10 Td (, customer lists and trade name are amortized on a straight-line ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (basis over their estimated useful lives, currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.33 559.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.33 559.10 Td ( year to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.82 559.10 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.82 559.10 Td ( years \(See Note 7. "Goodwill and Intangible ) Tj ET Q q 0 0 0 rg BT 472.91 559.10 Td (Assets"\).) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.95 539.10 Td (arranty Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 519.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 519.10 Td (e provide warranties on the majority of our product sales and reserves for estimated warranty costs are recorded during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (the period of sale. ) Tj ET Q q 0 0 0 rg BT 123.46 507.10 Td (The determination of such reserves requires us to make estimates of product return rates and expected costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 239.60 495.10 Td (. ) Tj ET Q q 0 0 0 rg BT 244.42 495.10 Td (W) Tj ET Q q 0 0 0 rg BT 253.05 495.10 Td (e currently establish warranty reserves based on historical warranty costs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (each product line. ) Tj ET Q q 0 0 0 rg BT 123.18 483.10 Td (The weighted average warranty period covered is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.62 483.10 Td (15 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.57 483.10 Td (. If actual return rates and/or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 177.04 471.10 Td (fer significantly from our estimates, adjustments to cost of sales may be required in future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.10 Td (Components of the reserve for warranty costs during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.93 439.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.93 439.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.93 439.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.93 439.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.37 439.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.37 439.10 Td ( were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 392.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 392.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 392.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 392.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 392.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 362.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 362.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 362.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 362.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 362.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 362.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 332.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 332.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 332.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 332.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 332.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 332.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 406.6 m 423.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 406.6 m 427.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 406.6 m 492.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 406.6 m 496.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 406.6 m 561.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 392.6 m 423.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 392.6 m 492.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 392.6 m 561.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 392.6 m 423.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 392.6 m 492.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 392.6 m 561.5 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 317.6 m 423.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 303.6 m 423.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 301.6 m 423.5 301.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 317.6 m 492.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 303.6 m 492.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 301.6 m 492.5 301.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 317.6 m 561.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 303.6 m 561.5 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 301.6 m 561.5 301.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 411.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.50 410.83 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 397.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 396.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 396.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 396.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 382.27 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 382.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 382.28 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 382.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 382.27 Td (18,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 382.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 382.27 Td (17,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 367.27 Td (Additions related to current period sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 367.28 Td (20,959) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 367.27 Td (24,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 367.27 Td (26,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 352.27 Td (Warranty costs incurred in the current period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.80 352.33 Td (\(21,922) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 352.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 352.32 Td (\(25,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 352.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 352.32 Td (\(27,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 352.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 337.27 Td (Accruals resulting from acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.65 337.28 Td (215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 337.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 337.27 Td (1,735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 322.27 Td (Adjustments to accruals related to foreign exchange and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.30 322.33 Td (\(905) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 322.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 322.32 Td (\(552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 322.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 322.27 Td (585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 307.27 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 307.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 307.28 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 307.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 307.27 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 307.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 307.27 Td (18,508) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (Loss contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 263.10 Td (e are subject to the possibility of various loss contingencies arising in the ordinary course of business. ) Tj ET Q q 0 0 0 rg BT 489.82 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 498.46 263.10 Td (e consider the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (likelihood of loss or impairment of an asset, or the incurrence of a liability) Tj ET Q q 0 0 0 rg BT 346.55 251.10 Td (, as well as our ability to reasonably estimate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (amount of loss, in determining loss contingencies. ) Tj ET Q q 0 0 0 rg BT 251.98 239.10 Td (An estimated loss contingency is accrued when it is probable that an asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. If we determine that a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss. ) Tj ET Q q 0 0 0 rg BT 525.32 215.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.95 215.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (regularly evaluate current information available to us to determine whether an accrual is required, an accrual should be adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (or a range of possible loss should be disclosed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 151.10 Td (When a sales arrangement contains multiple elements, such as products and/or services, we allocate revenue to each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (element based on a selling price hierarchy) Tj ET Q q 0 0 0 rg BT 217.11 139.10 Td (. Using the selling price hierarchy) Tj ET Q q 0 0 0 rg BT 351.98 139.10 Td (, we determine the selling price of each deliverable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.10 Td (using vendor specific objective evidence \(VSOE\), if it exists, and otherwise third-party evidence \(TPE\). If neither ) Tj ET Q q 0 0 0 rg BT 524.98 127.10 Td (VSOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.10 Td (nor ) Tj ET Q q 0 0 0 rg BT 65.15 115.10 Td (TPE of selling price exists, we use estimated selling price \(ESP\). ) Tj ET Q q 0 0 0 rg BT 335.74 115.10 Td (W) Tj ET Q q 0 0 0 rg BT 344.37 115.10 Td (e generally expect that we will not be able to establish ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td (TPE due to the nature of the markets in which we compete, and, as such, we typically will determine selling price using ) Tj ET Q q 0 0 0 rg BT 530.57 103.10 Td (VSOE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (or if not available, ESP) Tj ET Q q 0 0 0 rg BT 141.43 91.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 71.10 Td (Our basis for establishing ) Tj ET Q q 0 0 0 rg BT 176.80 71.10 Td (VSOE of a deliverable's selling price consists of standalone sales transactions when the same or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 59.10 Td (similar product or service is sold separately) Tj ET Q q 0 0 0 rg BT 222.69 59.10 Td (. However) Tj ET Q q 0 0 0 rg BT 263.94 59.10 Td (, when services are never sold separately) Tj ET Q q 0 0 0 rg BT 426.27 59.10 Td (, such as product installation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 47.10 Td (services, ) Tj ET Q q 0 0 0 rg BT 86.53 47.10 Td (VSOE is based on the product's estimated installation hours based on historical experience multiplied by the standard ) Tj ET Q endstream endobj 161 0 obj <>] /Rotate 0 /Contents 162 0 R>> endobj 162 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (service billing rate. In determining ) Tj ET Q q 0 0 0 rg BT 190.38 695.10 Td (VSOE, we require that a substantial majority of the selling price for a product or service fall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (within a reasonably narrow price range, as defined by us. ) Tj ET Q q 0 0 0 rg BT 280.35 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 288.99 683.10 Td (e also consider the geographies in which the products or services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (are sold, major product and service groups, and other environmental variables in determining ) Tj ET Q q 0 0 0 rg BT 424.48 671.10 Td (VSOE. ) Tj ET Q q 0 0 0 rg BT 455.04 671.10 Td (Absent the existence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (VSOE and ) Tj ET Q q 0 0 0 rg BT 94.87 659.10 Td (TPE, our determination of a deliverable's ESP) Tj ET Q q 0 0 0 rg BT 278.76 659.10 Td ( involves evaluating several factors based on the specific facts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (circumstances of these arrangements, which include pricing strategy and policies driven by geographies, market conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (competitive landscape, correlation between proportionate selling price and list price established by management having the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (relevant authority) Tj ET Q q 0 0 0 rg BT 119.66 623.10 Td (, and other environmental variables in which the deliverable is sold.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 603.10 Td (For multiple element arrangements which include extended maintenance contracts, we allocate and defer the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 591.10 Td (consideration equal to the separately stated price and recognize revenue on a straight-line basis over the contract period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 571.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 571.10 Td (e recognize revenue when all four revenue recognition criteria have been met: persuasive evidence of an arrangement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (exists, the product has been delivered or the service has been rendered, the price is fixed or determinable and collection is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (reasonably assured. Revenue from product sales is recorded when all of the foregoing conditions are met and risk of loss and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (title passes to the customer) Tj ET Q q 0 0 0 rg BT 156.70 535.10 Td (. Sales to customers are generally not subject to any price protection or return rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 515.10 Td (The majority of our sales are made to original equipment manufacturers \("OEMs"\), distributors, representatives and end-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (users in the non-scientific market. Sales made to these customers do not require installation of the products by us and are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (subject to other post-delivery obligations, except in occasional instances where we have agreed to perform installation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (provide training. In those instances, we defer revenue related to installation services or training until these services have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (rendered. ) Tj ET Q q 0 0 0 rg BT 89.29 467.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.93 467.10 Td (e allocate revenue from multiple element arrangements to the various elements based upon relative fair values.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 447.10 Td (Our sales to distributors, representatives and end-user customers typically do not have customer acceptance provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (and only certain of our sales to OEM customers and integrators have customer acceptance provisions. Customer acceptance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (generally limited to performance under our published product specifications. For the few product sales that have customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (acceptance provisions because of higher than published specifications, \(1\)the products are tested and accepted by the customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (at our site or the customer accepts the results of our testing program prior to shipment to the customer) Tj ET Q q 0 0 0 rg BT 456.22 399.10 Td (, or \(2\)the revenue is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (deferred until customer acceptance occurs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 367.10 Td (Sales to end-users in the scientific market typically require installation and, thus, involve post-delivery obligations; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 355.10 Td (, our post-delivery installation obligations are not essential to the functionality of our products. ) Tj ET Q q 0 0 0 rg BT 464.93 355.10 Td (W) Tj ET Q q 0 0 0 rg BT 473.57 355.10 Td (e defer revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (related to installation services until completion of these services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.10 Td (For most products, training is not provided; therefore, no post-delivery training obligation exists. However) Tj ET Q q 0 0 0 rg BT 499.69 323.10 Td (, when training ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (is provided to our customers, it is typically priced separately and is recognized as revenue as these services are provided.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 291.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 291.10 Td (e record taxes collected on revenue-producing activities on a net basis.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 78.75 271.10 Td (ch and Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 Td (Research and development expenses include salaries, contractor and consultant fees, supplies and materials, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (costs related to other overhead such as depreciation, facilities, utilities and other departmental expenses. ) Tj ET Q q 0 0 0 rg BT 467.78 239.10 Td (The costs we incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (with respect to internally developed technology and engineering services are included in research and development expenses as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (incurred as they do not directly relate to any particular licensee, license agreement or license fee.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 195.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 195.10 Td (e treat third party and government funding of our research and development activity) Tj ET Q q 0 0 0 rg BT 417.48 195.10 Td (, where we are the primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (beneficiary of such work conducted, as a reduction of research and development cost. Research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (reimbursements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.70 171.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.59 171.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.59 171.10 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.49 171.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.92 171.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.82 171.10 Td ( were of) Tj ET Q q 0 0 0 rg BT 330.39 171.10 Td (fset against research and development costs in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 159.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 159.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 159.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 159.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 159.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 186.60 159.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (For) Tj ET Q q 0 0 0 rg BT 64.87 139.10 Td (eign Curr) Tj ET Q q 0 0 0 rg BT 106.62 139.10 Td (ency ) Tj ET Q q 0 0 0 rg BT 128.38 139.10 Td (T) Tj ET Q q 0 0 0 rg BT 134.31 139.10 Td (ranslation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 119.10 Td (The functional currencies of our foreign subsidiaries are generally their respective local currencies. ) Tj ET Q q 0 0 0 rg BT 471.66 119.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 521.00 119.10 Td (, gains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (and losses from the translation of the financial statements of the foreign subsidiaries are reported as a separate component of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.10 Td (accumulated other comprehensive income \("OCI"\). Foreign currency transaction gains and losses are included in earnings.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (Compr) Tj ET Q q 0 0 0 rg BT 79.87 75.10 Td (ehensive Income \(Loss\)) Tj ET Q endstream endobj 163 0 obj <>] /Rotate 0 /Contents 164 0 R>> endobj 164 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (79) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (Comprehensive income \(loss\) is defined as the change in equity of a business enterprise during a period from transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (and other events and circumstances from non-owner sources. ) Tj ET Q q 0 0 0 rg BT 295.81 683.10 Td (Accumulated other comprehensive income \(loss\) \(net of tax\) at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 671.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 671.10 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.25 671.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.25 671.10 Td ( year) Tj ET Q q 0 0 0 rg BT 176.76 671.10 Td (-ends are substantially comprised of accumulated translation adjustments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.50 671.10 Td ($\(10.4\) million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.05 671.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td ($35.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 659.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 156.05 659.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (Earnings Per) Tj ET Q q 0 0 0 rg BT 105.71 639.10 Td ( Shar) Tj ET Q q 0 0 0 rg BT 128.59 639.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 619.10 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 49.50 607.10 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 49.50 595.10 Td (outstanding during the period increased by the ef) Tj ET Q q 0 0 0 rg BT 245.10 595.10 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 49.50 583.10 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 73.50 563.10 Td (The following table presents information necessary to calculate basic and diluted earnings per share \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 512.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 512.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 512.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 512.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 512.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 512.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 482.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 482.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 482.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 482.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 482.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 482.60 64.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 452.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 452.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 452.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 452.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 452.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 452.60 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 359 526.6 m 424 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 526.6 m 428 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 526.6 m 493 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 526.6 m 497 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 526.6 m 561 526.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 512.6 m 424 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 512.6 m 493 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 512.6 m 561 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 512.6 m 424 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 512.6 m 493 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 512.6 m 561 512.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 482.6 m 424 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 468.6 m 424 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 466.6 m 424 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 482.6 m 493 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 482.6 m 561 482.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 453.6 m 424 453.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 451.6 m 424 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 466.6 m 493 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 468.6 m 493 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 466.6 m 561 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 468.6 m 561 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 451.6 m 493 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 453.6 m 493 453.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 451.6 m 561 451.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 453.6 m 561 453.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 531.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 530.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 517.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 516.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 516.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 516.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 502.27 Td (Weighted average shares outstandingbasic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 502.28 Td (24,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 502.27 Td (24,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 502.27 Td (24,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 487.27 Td (Dilutive effect of employee stock awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 487.28 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 487.27 Td (316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 487.27 Td (417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 472.27 Td (Weighted average shares outstandingdiluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 472.28 Td (24,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 472.27 Td (25,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 472.27 Td (24,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 457.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 457.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 457.28 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 457.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 457.27 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 457.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 457.27 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 442.27 Td (Net incomebasic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 442.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 442.28 Td (3.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 442.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 442.27 Td (2.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 442.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 442.27 Td (2.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 427.27 Td (Net incomediluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 427.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 427.28 Td (3.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 427.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 427.27 Td (2.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 427.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 427.27 Td (2.70) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 403.10 Td (There were no potentially dilutive securities excluded from the dilutive share calculation for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.41 403.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.41 403.10 Td (. ) Tj ET Q q 0 0 0 rg BT 491.86 403.10 Td (A) Tj ET Q q 0 0 0 rg BT 498.53 403.10 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.13 403.10 Td (47,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.63 403.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 391.10 Td (883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.44 391.10 Td ( potentially dilutive securities have been excluded from the dilutive share calculation for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.86 391.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.86 391.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.30 391.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.30 391.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 379.10 Td (, as their ef) Tj ET Q q 0 0 0 rg BT 141.40 379.10 Td (fect was anti-dilutive.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 339.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 339.10 Td (e account for stock-based compensation using the fair value of the awards granted. ) Tj ET Q q 0 0 0 rg BT 415.17 339.10 Td (W) Tj ET Q q 0 0 0 rg BT 423.81 339.10 Td (e estimate the fair value of stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (options granted using the Black-Scholes Merton model. ) Tj ET Q q 0 0 0 rg BT 274.84 327.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.47 327.10 Td (e value restricted stock units using the intrinsic value method, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (is based on the fair market value price on the grant date. ) Tj ET Q q 0 0 0 rg BT 276.17 315.10 Td (W) Tj ET Q q 0 0 0 rg BT 284.81 315.10 Td (e use a Monte Carlo simulation model to estimate the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (performance restricted stock units. ) Tj ET Q q 0 0 0 rg BT 190.10 303.10 Td (W) Tj ET Q q 0 0 0 rg BT 198.74 303.10 Td (e use historical data to estimate pre-vesting option and restricted stock unit forfeitures and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (record stock-based compensation expense only for those options and awards that are expected to vest. ) Tj ET Q q 0 0 0 rg BT 459.19 291.10 Td (W) Tj ET Q q 0 0 0 rg BT 467.83 291.10 Td (e amortize the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (value of stock options and awards on a straight-line basis over the requisite service periods of the awards, which are generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (the vesting periods. See Note12 "Employee Stock ) Tj ET Q q 0 0 0 rg BT 253.27 267.10 Td (A) Tj ET Q q 0 0 0 rg BT 259.57 267.10 Td (ward, Option and Benefit Plans" for a description of our stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (employee compensation plans and the assumptions we 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 49.50 235.10 Td (Shipping and Handling Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 215.10 Td (e record costs related to shipping and handling of 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 49.50 203.10 Td (handling fees billed to customers are included in Net Sales. Custom duties billed to customers are recorded in Cost of Sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (Advertising Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 163.10 Td (Advertising costs are expensed as incurred and were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.64 163.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.54 163.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.54 163.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.43 163.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.87 163.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.76 163.10 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.69 163.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.69 163.10 Td (, fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 151.10 Td ( and fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.09 151.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.09 151.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 185.75 151.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (Income ) Tj ET Q q 0 0 0 rg BT 83.48 131.10 Td (T) Tj ET Q q 0 0 0 rg BT 89.23 131.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 111.10 Td (As part of the process of preparing our consolidated financial statements, we are required to estimate our income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (provision \(benefit\) in each of the jurisdictions in which we operate. ) Tj ET Q q 0 0 0 rg BT 320.91 99.10 Td (This process involves us estimating our current income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (provision \(benefit\) together with assessing temporary dif) Tj ET Q q 0 0 0 rg BT 276.49 87.10 Td (ferences resulting from dif) Tj ET Q q 0 0 0 rg BT 382.65 87.10 Td (fering treatment of items for tax and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (accounting purposes. ) Tj ET Q q 0 0 0 rg BT 136.24 75.10 Td (These dif) Tj ET Q q 0 0 0 rg BT 173.55 75.10 Td (ferences result in deferred tax assets and liabilities, which are included within our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (balance sheets.) Tj ET Q endstream endobj 165 0 obj <>] /Rotate 0 /Contents 166 0 R>> endobj 166 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 695.10 Td (e account for uncertain tax issues pursuant to ) Tj ET Q q 0 0 0 rg BT 264.31 695.10 Td (ASC 740-10 ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 317.09 695.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 353.66 695.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.43 695.10 Td (, which creates a single model to address ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (accounting for uncertainty in tax positions by prescribing a minimum recognition threshold that a tax position is required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (meet before being recognized in the financial statements. ) Tj ET Q q 0 0 0 rg BT 280.06 671.10 Td (This standard provides a two-step approach for evaluating tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (positions. ) Tj ET Q q 0 0 0 rg BT 90.44 659.10 Td (The first step, recognition, occurs when a company concludes \(based solely on the technical aspects of the matter\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (that a tax position is more likely than not to be sustained upon examination by a taxing authority) Tj ET Q q 0 0 0 rg BT 434.61 647.10 Td (. ) Tj ET Q q 0 0 0 rg BT 439.43 647.10 Td (The second step, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (measurement, is only considered after step one has been satisfied and measures any tax benefit at the lar) Tj ET Q q 0 0 0 rg BT 465.83 635.10 Td (gest amount that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (deemed more likely than not to be realized upon ultimate settlement of the uncertainty) Tj ET Q q 0 0 0 rg BT 394.01 623.10 Td (. ) Tj ET Q q 0 0 0 rg BT 398.83 623.10 Td (These determinations involve significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (judgment by management. ) Tj ET Q q 0 0 0 rg BT 158.18 611.10 Td (T) Tj ET Q q 0 0 0 rg BT 163.59 611.10 Td (ax positions that fail to qualify for initial recognition are recognized in the first subsequent interim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (period that they meet the more likely than not standard or when they are resolved through negotiation or litigation with factual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (interpretation, judgment and certainty) Tj ET Q q 0 0 0 rg BT 199.91 587.10 Td (. ) Tj ET Q q 0 0 0 rg BT 204.73 587.10 Td (T) Tj ET Q q 0 0 0 rg BT 210.14 587.10 Td (ax laws and regulations themselves are complex and are subject to change as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (changes in fiscal policy) Tj ET Q q 0 0 0 rg BT 142.99 575.10 Td (, changes in legislation, evolution of regulations and court filings. ) Tj ET Q q 0 0 0 rg BT 408.03 575.10 Td (Therefore, the actual liability for U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (or foreign taxes may be materially dif) Tj ET Q q 0 0 0 rg BT 200.37 563.10 Td (ferent from our estimates, which could result in the need to record additional tax liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (or potentially to reverse previously recorded tax liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 531.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 531.10 Td (e record a valuation allowance to reduce our deferred tax assets to an amount that more likely than not will be realized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 Td (While we have considered future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (for the valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (future in excess of our net recorded amount, an adjustment to the allowance for the deferred tax asset would increase income in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (net deferred tax asset in the future, an adjustment to the allowance for the deferred tax asset would be char) Tj ET Q q 0 0 0 rg BT 474.70 471.10 Td (ged to income in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (period such determination was made.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 439.10 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 49.50 427.10 Td (because such earnings are intended to be permanently reinvested. ) Tj ET Q q 0 0 0 rg BT 313.10 427.10 Td (The total amount of unremitted earnings \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (accumulated translation adjustments\) of foreign subsidiaries for which we have not yet recorded federal and state income taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.81 403.10 Td ($471.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.70 403.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.14 403.10 Td ($429.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.03 403.10 Td ( at fiscal 2015and 2014 year) Tj ET Q q 0 0 0 rg BT 380.35 403.10 Td (-end, respectively) Tj ET Q q 0 0 0 rg BT 450.78 403.10 Td (. ) Tj ET Q q 0 0 0 rg BT 455.60 403.10 Td (The amount of federal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (state income taxes that would be payable upon repatriation of such earnings is not practicably determinable. ) Tj ET Q q 0 0 0 rg BT 483.34 391.10 Td (W) Tj ET Q q 0 0 0 rg BT 491.98 391.10 Td (e have not, nor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (do we anticipate the need to, repatriate funds to the United States to satisfy domestic liquidity needs arising in the ordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (course of business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (Adoption of New ) Tj ET Q q 0 0 0 rg BT 123.67 347.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 185.43 347.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 327.10 Td (In July 2013, the F) Tj ET Q q 0 0 0 rg BT 146.54 327.10 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 49.50 315.10 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 524.70 315.10 Td (This new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 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 49.50 291.10 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 49.50 279.10 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 49.50 267.10 Td (that are created by the UTBs. ) Tj ET Q q 0 0 0 rg BT 168.99 267.10 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 49.50 255.10 Td (presented. In the first quarter of fiscal year 2015, we adopted the F) Tj ET Q q 0 0 0 rg BT 315.33 255.10 Td (ASB) Tj ET Q q 0 0 0 rg BT 337.56 255.10 Td (s amended guidance prospectively in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (the standard. ) Tj ET Q q 0 0 0 rg BT 102.54 243.10 Td (As a result of this adoption, both long-term income taxes payable and noncurrent deferred tax assets decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td ($7.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 231.10 Td ( on our consolidated balance sheet.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 118.39 211.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 180.15 211.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 191.10 Td (In November) Tj ET Q q 0 0 0 rg BT 124.64 191.10 Td (, the F) Tj ET Q q 0 0 0 rg BT 149.17 191.10 Td (ASB issued amended guidance that clarifies that in a classified statement of financial position, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (entity shall classify deferred tax liabilities and assets as noncurrent amounts.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 355.25 179.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.75 179.10 Td (The new guidance supersedes ) Tj ET Q q 0 0 0 rg BT 478.82 179.10 Td (ASC 740-10-45-5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (which required the valuation allowance for a particular tax jurisdiction be allocated between current and noncurrent deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (assets for that tax jurisdiction on a pro rata basis. ) Tj ET Q q 0 0 0 rg BT 247.33 155.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 380.15 155.10 Td (fective for our fiscal year beginning October ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (2, 2017. ) Tj ET Q q 0 0 0 rg BT 84.32 143.10 Td (W) Tj ET Q q 0 0 0 rg BT 92.96 143.10 Td (e are currently assessing the impact of this amended guidance and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 123.10 Td (In September 2015, the F) Tj ET Q q 0 0 0 rg BT 172.63 123.10 Td (ASB issued amended guidance that simplifies the accounting for adjustments made to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (provisional amounts recognized in a business combination. Under previous guidance, the acquirer retrospectively adjusted the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill, and would have to revise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (comparative information for prior periods presented in financial statements as needed. ) Tj ET Q q 0 0 0 rg BT 396.42 87.10 Td (The update requires an entity to present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 63.10 Td (earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts ) Tj ET Q endstream endobj 167 0 obj <>] /Rotate 0 /Contents 168 0 R>> endobj 168 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (2. SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 126.50 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 128.45 712.60 Td (ACCOUNTING POLICIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (had been recognized as of the acquisition date. ) Tj ET Q q 0 0 0 rg BT 238.41 695.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 371.23 695.10 Td (fective for our fiscal year beginning October 2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (2017. ) Tj ET Q q 0 0 0 rg BT 74.32 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.96 683.10 Td (e are currently assessing the impact of this amended guidance and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 663.10 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 148.20 663.10 Td (ASB amended the ) Tj ET Q q 0 0 0 rg BT 222.91 663.10 Td (Accounting Standards Codification and created a new ) Tj ET Q q 0 0 0 rg BT 440.71 663.10 Td (T) Tj ET Q q 0 0 0 rg BT 446.12 663.10 Td (opic 606, Revenue from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (Contracts with Customers. ) Tj ET Q q 0 0 0 rg BT 158.20 651.10 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 49.50 639.10 Td (accounting for revenue arising from contracts with customers. ) Tj ET Q q 0 0 0 rg BT 300.07 639.10 Td (The new model significantly changes existing GAAP) Tj ET Q q 0 0 0 rg BT 512.25 639.10 Td (, requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.10 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 523.08 627.10 Td (The core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 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 49.50 603.10 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 49.50 591.10 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 49.50 579.10 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 493.21 579.10 Td (s performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 567.10 Td (obligations; and \(5\) recognize revenue when \(or as\) the entity satisfies a performance obligation. ) Tj ET Q q 0 0 0 rg BT 438.35 567.10 Td (The new standard provides for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (two alternative implementation methods. ) Tj ET Q q 0 0 0 rg BT 215.67 555.10 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 49.50 543.10 Td (presented. ) Tj ET Q q 0 0 0 rg BT 92.63 543.10 Td (This method does allow the use of certain practical expedients. ) Tj ET Q q 0 0 0 rg BT 346.54 543.10 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 49.50 531.10 Td (retrospectively in the year of initial adoption and record a cumulative ef) Tj ET Q q 0 0 0 rg BT 336.71 531.10 Td (fect adjustment for the impact of adjusting contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.10 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 49.50 507.10 Td (are not completed contracts at the date of initial application. ) Tj ET Q q 0 0 0 rg BT 291.73 507.10 Td (W) Tj ET Q q 0 0 0 rg BT 300.36 507.10 Td (e would then recognize the cumulative ef) Tj ET Q q 0 0 0 rg BT 465.12 507.10 Td (fect of initially applying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (the standard as an adjustment to the opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 346.72 495.10 Td (This method also requires us to disclose comparative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (information for the year of adoption. In July 2015, the F) Tj ET Q q 0 0 0 rg BT 273.16 483.10 Td (ASB approved a one-year deferral of the ef) Tj ET Q q 0 0 0 rg BT 445.95 483.10 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 497.13 483.10 Td (The new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (standard will become ef) Tj ET Q q 0 0 0 rg BT 145.12 471.10 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q q 0 0 0 rg BT 376.25 471.10 Td (W) Tj ET Q q 0 0 0 rg BT 384.89 471.10 Td (e are currently evaluating the new guidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (and have not determined the impact this standard may have on our financial statements nor have we decided upon the method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (of adoption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 413.10 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.06 413.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (Fiscal 2015 ) Tj ET Q q 0 0 0 rg BT 98.94 393.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 373.10 Td (Raydiance, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 353.10 Td (On July 24, 2015, we acquired certain assets of Raydiance, Inc. \("Raydiance"\) for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.25 353.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 353.10 Td (, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (transaction costs. Raydiance manufactured complete tools and lasers for ultrafast processing systems and subsystems in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 234.54 329.10 Td (The Raydiance assets have been included in our Specialty Lasers and Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 297.10 Td (Our preliminary allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 286.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 286.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 256.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 256.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 226.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 226.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 211.60000000000002 m 470 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 197.60000000000002 m 470 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 195.60000000000002 m 470 195.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 276.27 Td (Tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 276.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 276.27 Td (1,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 261.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 261.27 Td (1,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 246.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 231.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 231.27 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 216.27 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 216.27 Td (1,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 201.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 201.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 201.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 177.10 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 49.50 165.10 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 49.50 153.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 153.10 Td (fect of the acquisition was not material to our prior period consolidated financial results.) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 72.00 140.03 353.76 -9.09 re f /GS0 gs q 0 0 0 rg BT 72.00 133.10 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 425.76 133.10 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.59 133.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.58 133.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.35 133.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.90 133.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 113.10 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 93.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 93.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 93.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 93.10 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 81.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.99 61.10 Td (insley Optics) Tj ET Q endstream endobj 169 0 obj <>] /Rotate 0 /Contents 170 0 R>> endobj 170 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.56 712.60 Td (TIONS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 686.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 349.25 686.10 Td (T) Tj ET Q q 0 0 0 rg BT 355.00 686.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 423.17 686.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Communications Corporation for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.57 674.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.47 674.10 Td (, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 412.59 674.10 Td (T) Tj ET Q q 0 0 0 rg BT 418.35 674.10 Td (insley is a specialized manufacturer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 473.20 662.10 Td (. ) Tj ET Q q 0 0 0 rg BT 478.02 662.10 Td (T) Tj ET Q q 0 0 0 rg BT 483.77 662.10 Td (insley ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (manufactures the lar) Tj ET Q q 0 0 0 rg BT 130.95 650.10 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 380.96 650.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.71 650.10 Td (insley has been included in our Specialty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 618.10 Td (Our preliminary allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 607.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 607.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 577.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 577.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 547.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 547.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 517.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 517.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 487.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 487.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 487.6 m 470 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 473.6 m 470 473.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 471.6 m 470 471.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 597.27 Td (Tangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 582.27 Td ( Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 582.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 582.27 Td (2,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 567.27 Td ( Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 567.27 Td (2,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 552.27 Td ( Prepaid expenses and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 552.27 Td (1,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 537.27 Td ( Property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 537.27 Td (2,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 522.27 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 522.32 Td (\(1,702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 522.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 507.27 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 507.32 Td (\(768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 507.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 492.27 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.30 492.32 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 492.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 477.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 477.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 477.27 Td (4,300) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 453.10 Td (The purchase price was lower than the fair value of net assets purchased, resulting in a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.03 453.10 Td ($1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.53 453.10 Td ( million recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.10 Td (separate line item in our consolidated statements of operations for our fiscal year 2015. ) Tj ET Q q 0 0 0 rg BT 400.04 441.10 Td (The Company reassessed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.10 Td (recognition and measurement of identifiable assets acquired and liabilities assumed and concluded that all acquired assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (assumed liabilities were recognized and that the valuation procedures and resulting measures were appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 397.10 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 49.50 385.10 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 49.50 373.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 373.10 Td (fect of the acquisition was not material to our prior period consolidated financial results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 353.10 Td (The gain from the bar) Tj ET Q q 0 0 0 rg BT 158.51 353.10 Td (gain purchase is not subject to income taxation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 333.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 333.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 333.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 333.10 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 49.50 321.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (Fiscal 2013 ) Tj ET Q q 0 0 0 rg BT 98.94 301.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (Lumera Laser) Tj ET Q q 0 0 0 rg BT 110.70 281.10 Td ( GmbH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 261.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 261.10 Td (December20, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.31 261.10 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 49.50 249.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 249.10 Td ($51.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.65 249.10 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 49.50 237.10 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 72.00 217.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q endstream endobj 171 0 obj <>] /Rotate 0 /Contents 172 0 R>> endobj 172 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.56 712.60 Td (TIONS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (83) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 692.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 692.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 662.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 662.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 632.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 632.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 602.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 602.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 572.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 572.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 542.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 542.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 512.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 512.50 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 436 497.5 m 506 497.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 483.5 m 506 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 481.5 m 506 481.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 682.17 Td (Tangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 667.17 Td ( Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 667.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 667.17 Td (7,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 652.17 Td ( Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 652.17 Td (2,770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 637.17 Td ( Other tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 637.17 Td (4,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 622.17 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 622.17 Td (24,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 607.17 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 592.17 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 592.17 Td (21,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 577.17 Td ( In-process R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.00 577.17 Td (1,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 562.17 Td ( Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 562.17 Td (200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 547.17 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.00 547.17 Td (6,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 532.17 Td ( Backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 532.17 Td (900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 517.17 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 517.17 Td (\(9,300\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 502.17 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 502.17 Td (\(8,793\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 487.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 487.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 487.17 Td (51,461) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 463.00 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 49.50 451.00 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 49.50 439.00 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 439.00 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 72.00 419.00 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 72.00 405.93 353.76 -9.09 re f /GS0 gs q 0 0 0 rg BT 72.00 399.00 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 425.76 399.00 Td (f less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.81 399.00 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.25 399.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.02 399.00 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.69 399.00 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 385.93 19.72 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 379.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.95 379.00 Td (Acquired IPR&D assets are initially recognized at fair value and are classified as indefinite-lived assets until the successful ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.00 Td (completion or abandonment of the associated research and development ef) Tj ET Q q 0 0 0 rg BT 347.82 367.00 Td (forts. ) Tj ET Q q 0 0 0 rg BT 370.96 367.00 Td (The value assigned to IPR&D was determined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.00 Td (by considering the value of the products under development to the overall development plan, estimating the resulting net cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.00 Td (flows from the projects when completed and discounting the net cash flows to their present value. During the development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.00 Td (period, these assets will not be amortized as char) Tj ET Q q 0 0 0 rg BT 244.53 331.00 Td (ges to earnings; instead these assets will be subject to periodic impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.00 Td (testing. ) Tj ET Q q 0 0 0 rg BT 80.98 319.00 Td (The development process for the acquired IPR&D projects was completed and amortization of the assets, as existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.00 Td (technologies, began in the third quarter of fiscal 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 287.00 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 287.00 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 287.00 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 287.00 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 49.50 275.00 Td (statements of operations for our fiscal year 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 255.00 Td (Innolight Innovative Laser) Tj ET Q q 0 0 0 rg BT 163.78 255.00 Td ( and Systemtechnik GmbH) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 235.00 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 235.00 Td (October30, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.43 235.00 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 49.50 223.00 Td (\("Innolight"\) for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.91 223.00 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.80 223.00 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 49.50 211.00 Td (for an emer) Tj ET Q q 0 0 0 rg BT 95.40 211.00 Td (ging class of commercial, sub-nanosecond lasers for microelectronics manufacturing. Its semiconductor) Tj ET Q q 0 0 0 rg BT 510.62 211.00 Td (-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.00 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 49.50 187.00 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 49.50 175.00 Td (segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 155.00 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q endstream endobj 173 0 obj <>] /Rotate 0 /Contents 174 0 R>> endobj 174 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (3. BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 159.56 712.60 Td (TIONS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (84) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 692.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 692.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 662.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 662.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 632.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 632.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 602.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 602.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 86.00 572.50 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.00 572.50 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 436 557.5 m 506 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 557.5 m 506 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 543.5 m 506 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436 541.5 m 506 541.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 682.17 Td (Tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 682.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 682.17 Td (2,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 667.17 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 667.17 Td (8,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 652.17 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 637.17 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 637.17 Td (8,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 622.17 Td ( In-process R&D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 622.17 Td (430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 607.17 Td ( Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 607.17 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 592.17 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 592.17 Td (2,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 577.17 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 577.22 Td (\(3,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 577.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 562.17 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 562.22 Td (\(480) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 562.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 547.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.50 547.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 547.17 Td (18,336) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 523.00 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 49.50 511.00 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 49.50 499.00 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 146.77 499.00 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 72.00 479.00 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 72.00 459.00 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 431.59 459.00 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.26 459.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.04 459.00 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.81 459.00 Td ( years. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 439.00 Td (IPR&D consists of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.06 439.00 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.06 439.00 Td ( projects that have not yet reached technological feasibility) Tj ET Q q 0 0 0 rg BT 399.88 439.00 Td (. ) Tj ET Q q 0 0 0 rg BT 404.70 439.00 Td (The projects have not been completed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.00 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.16 427.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.87 427.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 407.00 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 407.00 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 407.00 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.17 407.00 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 49.50 395.00 Td (statements of operations for our fiscal year 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 355.00 Td (4. F) Tj ET Q q 0 0 0 rg BT 64.87 355.00 Td (AIR ) Tj ET Q q 0 0 0 rg BT 85.52 355.00 Td (V) Tj ET Q q 0 0 0 rg BT 91.45 355.00 Td (ALUES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 335.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 335.00 Td (e measure our cash equivalents and marketable securities at fair value. ) Tj ET Q q 0 0 0 rg BT 365.72 335.00 Td (The fair values of our financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.00 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 49.50 311.00 Td (markets. ) Tj ET Q q 0 0 0 rg BT 85.97 311.00 Td (W) Tj ET Q q 0 0 0 rg BT 94.61 311.00 Td (e recognize transfers between levels within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 361.89 311.00 Td (, if any) Tj ET Q q 0 0 0 rg BT 389.29 311.00 Td (, at the end of each quarter) Tj ET Q q 0 0 0 rg BT 495.07 311.00 Td (. ) Tj ET Q q 0 0 0 rg BT 499.89 311.00 Td (There were no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.00 Td (transfers between levels during the periods presented. ) Tj ET Q q 0 0 0 rg BT 266.10 299.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.54 299.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.25 299.00 Td (, we did not have any assets or liabilities valued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.00 Td (based on Level3 valuations. ) Tj ET Q q 0 0 0 rg BT 165.58 287.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.03 287.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.29 287.00 Td (, other than our investment in SiOnyx \(See Note 8 "Balance Sheet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.00 Td (Details"\), we did not have any assets or liabilities valued based on Level3 valuations.) Tj ET Q endstream endobj 175 0 obj <>] /Rotate 0 /Contents 176 0 R>> endobj 176 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (4. F) Tj ET Q q 0 0 0 rg BT 65.37 712.60 Td (AIR ) Tj ET Q q 0 0 0 rg BT 86.02 712.60 Td (V) Tj ET Q q 0 0 0 rg BT 91.95 712.60 Td (ALUES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 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 308.42 695.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.13 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.57 695.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.83 695.10 Td ( are summarized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (below \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 586.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 586.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 586.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 586.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 586.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 586.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 586.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 586.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 556.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 556.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 556.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 556.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 556.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 556.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 556.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 556.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 556.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 556.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 556.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 556.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 556.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 526.60 156.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 526.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 526.60 46.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 526.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 526.60 60.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 526.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 526.60 48.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 526.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 526.60 47.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 526.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 526.60 59.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 526.60 4.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 526.60 49.00 -18.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 484.60 156.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 484.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 484.60 46.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 484.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 484.60 60.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 484.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 484.60 48.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 484.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 484.60 47.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 484.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 484.60 59.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 484.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 484.60 49.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 443.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 443.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 443.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 443.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 443.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 443.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 443.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 413.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 413.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 413.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 413.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 413.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 413.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 413.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 383.60 156.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 383.60 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 383.60 46.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 383.60 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 383.60 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 383.60 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 383.60 48.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 383.60 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 383.60 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 383.60 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 383.60 59.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 383.60 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 383.60 49.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 339.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 339.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 339.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 339.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 339.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 339.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 339.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 339.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 309.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 309.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 309.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 309.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 309.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 309.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 309.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 309.60 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 279.60 156.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.00 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 233.00 279.60 46.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 279.00 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 283.00 279.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.00 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 347.00 279.60 48.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 399.00 279.60 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 279.60 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.00 279.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.00 279.60 49.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229 612.6 m 233 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 612.6 m 279 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 612.6 m 283 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 612.6 m 343 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 612.6 m 347 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 612.6 m 395 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 612.6 m 446 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 612.6 m 450 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 612.6 m 509 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 612.6 m 513 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 612.6 m 562 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229 599.6 m 233 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 599.6 m 279 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279 599.6 m 283 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 599.6 m 343 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 599.6 m 347 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 599.6 m 395 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 612.6 m 446 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 599.6 m 446 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 612.6 m 450 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 599.6 m 450 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 612.6 m 509 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 599.6 m 509 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 612.6 m 513 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 599.6 m 513 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 612.6 m 562 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 599.6 m 562 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 599.6 m 446 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 599.6 m 450 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 599.6 m 509 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 599.6 m 562 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 354.6 m 343 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 354.6 m 395 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 354.6 m 446 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 354.6 m 509 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 354.6 m 562 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 354.6 m 279 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 340.6 m 279 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 338.6 m 279 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 354.6 m 343 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 340.6 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 283 338.6 m 343 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 354.6 m 395 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 340.6 m 395 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 338.6 m 395 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 354.6 m 446 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 340.6 m 446 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 338.6 m 446 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 354.6 m 509 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 340.6 m 509 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 338.6 m 509 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 354.6 m 562 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 340.6 m 562 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 338.6 m 562 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 279.6 m 343 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 279.6 m 395 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 279.6 m 509 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 279.6 m 562 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 279.6 m 279 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 265.6 m 279 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 233 263.6 m 279 263.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 279.6 m 343 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 265.6 m 343 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 283 263.6 m 343 263.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 265.6 m 395 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 263.6 m 395 263.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 279.6 m 446 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 265.6 m 446 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 263.6 m 446 263.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 279.6 m 509 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 265.6 m 509 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 263.6 m 509 263.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 279.6 m 562 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 265.6 m 562 265.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 263.6 m 562 263.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 75.50 615.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 238.00 624.83 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 237.65 616.83 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.35 648.83 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.15 640.83 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.15 632.83 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.35 624.83 Td (for) Tj ET Q q 0 0 0 rg BT 301.42 624.83 Td (Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.80 616.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 640.83 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.35 632.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.90 624.83 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.35 616.83 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.50 624.83 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.15 616.83 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.85 648.83 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.65 640.83 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.65 632.83 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.85 624.83 Td (forIdentical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.30 616.83 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.55 640.83 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.85 632.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.40 624.83 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.85 616.83 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.55 603.83 Td (October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.60 603.83 Td (September 27, 2014) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 150.50 589.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.50 590.83 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.50 590.83 Td (\(Level2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 590.83 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.00 590.83 Td (\(Level2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 576.27 Td (Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 561.27 Td (Cash equivalents:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 546.27 Td (Money market fund deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 546.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.65 546.27 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 546.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 546.27 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 546.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 546.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 546.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 546.27 Td (5,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 546.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 546.27 Td (5,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.50 546.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 546.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 531.27 Td (Certificates of deposit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 531.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 531.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 531.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 531.27 Td (12,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 531.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 531.27 Td (12,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 513.27 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 164.14 517.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.15 513.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 513.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 513.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 513.27 Td (1,400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 513.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 513.27 Td (1,400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 489.27 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 473.27 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 107.60 473.27 Td (T) Tj ET Q q 0 0 0 rg BT 113.36 473.27 Td (reasury and agency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 463.27 Td (obligations ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 134.44 467.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.60 463.27 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 463.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.60 463.27 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.60 463.27 Td (150,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 463.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.60 463.27 Td (150,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 448.27 Td (Corporate notes and obligations ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 217.48 452.80 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 448.27 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 448.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.60 448.27 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 448.27 Td (52,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 448.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 448.27 Td (52,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 433.27 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 164.14 437.80 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.65 433.27 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 433.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 433.27 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 433.27 Td (23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 433.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 433.27 Td (23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 418.27 Td (Equity securities ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 156.93 422.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 418.27 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 418.27 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 418.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 418.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 418.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 418.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 403.27 Td (Prepaid and other assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 388.27 Td (Foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 197.18 392.80 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.15 388.27 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 388.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 388.27 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 388.27 Td (366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 388.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 388.27 Td (366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 369.27 Td (Mutual funds Deferred comp ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 359.27 Td (and supplemental plan ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 179.98 363.80 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.60 359.27 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 359.27 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 359.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 359.27 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 359.27 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 359.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 344.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 344.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.60 344.27 Td (217,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 344.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 344.27 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 344.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.60 344.27 Td (178,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 344.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.60 344.27 Td (261,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 344.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 344.27 Td (20,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.50 344.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.60 344.27 Td (240,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 314.27 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 299.27 Td (Other current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 284.27 Td (Foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 197.18 288.80 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.80 284.27 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.15 284.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 284.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.80 284.32 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 284.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.30 284.32 Td (\(2,196) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 284.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 284.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 284.32 Td (\(2,196) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 284.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 269.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.60 269.27 Td (217,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.65 269.27 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.50 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.60 269.27 Td (178,449) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.60 269.27 Td (259,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 269.27 Td (20,975) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.50 269.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.60 269.27 Td (238,712) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (___________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 225.10 Td (V) Tj ET Q q 0 0 0 rg BT 78.11 225.10 Td (aluations are based upon quoted market prices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 205.10 Td (V) Tj ET Q q 0 0 0 rg BT 78.11 205.10 Td (aluations are based upon quoted market prices in active markets involving similar assets. ) Tj ET Q q 0 0 0 rg BT 435.61 205.10 Td (The market inputs used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 193.10 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 72.00 181.10 Td (sources with reasonable levels of price transparency) Tj ET Q q 0 0 0 rg BT 279.60 181.10 Td (. Pricing sources include industry standard data providers, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 169.10 Td (master files from lar) Tj ET Q q 0 0 0 rg BT 153.18 169.10 Td (ge financial institutions, and other third party sources which are input into a distribution-curve-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 157.10 Td (algorithm to determine a daily market value. ) Tj ET Q q 0 0 0 rg BT 252.31 157.10 Td (This creates a consensus price or a weighted average price for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 145.10 Td (security) Tj ET Q q 0 0 0 rg BT 103.01 145.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.00 125.10 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 510.25 125.10 Td (-the-counter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 113.10 Td (environment with a relatively high level of price transparency) Tj ET Q q 0 0 0 rg BT 318.48 113.10 Td (. ) Tj ET Q q 0 0 0 rg BT 323.30 113.10 Td (The market participants usually are lar) Tj ET Q q 0 0 0 rg BT 477.22 113.10 Td (ge commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 101.10 Td (banks. Our foreign currency contracts) Tj ET Q q 0 0 0 rg BT 225.92 101.10 Td ( valuation inputs are based on quoted prices and quoted pricing intervals from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 89.10 Td (public data sources and do not involve management judgment. ) Tj ET Q q 0 0 0 rg BT 324.16 89.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.66 89.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.37 89.10 Td (, prepaid expenses and other assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 77.10 Td (include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.93 77.10 Td ($217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.93 77.10 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.71 77.10 Td ($41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.71 77.10 Td ( foreign currency contracts designated for cash flow hedges, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 65.10 Td (respectively; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.10 65.10 Td ($239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.10 65.10 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.88 65.10 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.88 65.10 Td ( foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 53.10 Td (designated for cash flow hedges, respectively) Tj ET Q q 0 0 0 rg BT 252.95 53.10 Td (. ) Tj ET Q q 0 0 0 rg BT 257.40 53.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.90 53.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.16 53.10 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.00 53.10 Td ($303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.00 53.10 Td ( ) 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (4. F) Tj ET Q q 0 0 0 rg BT 65.37 712.60 Td (AIR ) Tj ET Q q 0 0 0 rg BT 86.02 712.60 Td (V) Tj ET Q q 0 0 0 rg BT 91.95 712.60 Td (ALUES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (86) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.28 695.10 Td ($63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.28 695.10 Td ( foreign currency contracts designated for cash flow hedges, respectively; other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 683.10 Td (current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.47 683.10 Td ($1,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.97 683.10 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.74 683.10 Td ($950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 683.10 Td ( foreign currency contracts designated for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 671.10 Td (cash flow hedges, respectively) Tj ET Q q 0 0 0 rg BT 193.53 671.10 Td (. See Note 6, "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 399.23 671.10 Td (Activities". ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 651.10 Td (The fair value of mutual funds is determined based on quoted market prices. Securities traded on a national exchange are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 639.10 Td (stated at the last reported sales price on the day of valuation; other securities traded in over) Tj ET Q q 0 0 0 rg BT 435.00 639.10 Td (-the-counter markets and listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 627.10 Td (securities for which no sale was reported on that date are stated as the last quoted bid price. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (5. SHOR) Tj ET Q q 0 0 0 rg BT 87.49 587.10 Td (T) Tj ET Q q 0 0 0 rg BT 93.24 587.10 Td (-TERM INVESTMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 567.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 567.10 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 49.50 555.10 Td (equivalents. Investments classified as available-for) Tj ET Q q 0 0 0 rg BT 252.84 555.10 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 49.50 543.10 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 49.50 531.10 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 49.50 519.10 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 73.50 499.10 Td (Cash, cash equivalents and short-term investments consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 455.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 455.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 455.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 455.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 455.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 455.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 455.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 455.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 427.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 427.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 427.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 427.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 427.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 427.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 427.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 427.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 399.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 399.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 399.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 399.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 399.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 399.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 399.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 399.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 371.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 371.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 371.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 371.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 371.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 371.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 371.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 371.60 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 268 467.6 m 337 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 467.6 m 342 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 467.6 m 412 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 467.6 m 417 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 467.6 m 487 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 467.6 m 492 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 467.6 m 562 467.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 455.6 m 337 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 455.6 m 412 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 455.6 m 487 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 455.6 m 562 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 442.6 m 337 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 440.6 m 337 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 442.6 m 412 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 440.6 m 412 440.6 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 487 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 440.6 m 487 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 442.6 m 562 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 440.6 m 562 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 440.6 m 337 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 442.6 m 337 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 440.6 m 562 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 442.6 m 562 442.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 357.6 m 337 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 357.6 m 412 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 357.6 m 487 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 357.6 m 337 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 344.6 m 337 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 342.6 m 337 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 357.6 m 412 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 344.6 m 412 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 342.6 m 412 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 357.6 m 487 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 344.6 m 487 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 342.6 m 487 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 357.6 m 562 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 344.6 m 562 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 342.6 m 562 342.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 471.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.30 471.83 Td (Fiscal Year-end October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 459.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.30 459.68 Td (Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.90 459.68 Td (Unrealized Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.75 459.68 Td (Unrealized Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 459.68 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 446.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 446.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 446.17 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 446.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 446.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 446.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 446.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 446.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 446.17 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 432.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 432.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 432.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 432.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 432.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 418.17 Td (Available-for-sale securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 418.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 404.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 404.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 404.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 404.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 404.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 390.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 390.17 Td (149,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 390.17 Td (1,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 390.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 390.17 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 376.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 376.17 Td (17,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 376.17 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.80 376.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 376.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 376.17 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 362.17 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 362.17 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 362.17 Td (1,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 362.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 362.17 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 348.17 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 348.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 348.17 Td (192,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 348.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 348.17 Td (2,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 348.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.80 348.22 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 348.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 348.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 348.17 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 296.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 296.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 296.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 296.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 296.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 296.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 296.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 296.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 268.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 268.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 268.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 268.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 268.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 268.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 268.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 268.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 240.60 219.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 240.60 69.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 240.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 240.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 240.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 240.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 240.60 5.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 240.60 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 213.60 219.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 213.60 69.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 213.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 213.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 213.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 213.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 213.60 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 213.60 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 268 308.6 m 337 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 308.6 m 342 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 308.6 m 412 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 308.6 m 417 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 308.6 m 487 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 308.6 m 492 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 308.6 m 562 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 296.6 m 337 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 296.6 m 412 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 296.6 m 487 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 296.6 m 562 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 283.6 m 412 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 281.6 m 412 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 283.6 m 487 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 281.6 m 487 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 281.6 m 337 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 283.6 m 337 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 281.6 m 562 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 283.6 m 562 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 213.60000000000002 m 337 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 200.60000000000002 m 337 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 198.60000000000002 m 337 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 213.60000000000002 m 412 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 200.60000000000002 m 412 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 198.60000000000002 m 412 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 213.60000000000002 m 487 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 200.60000000000002 m 487 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 198.60000000000002 m 487 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 213.60000000000002 m 562 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 200.60000000000002 m 562 200.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 198.60000000000002 m 562 198.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 312.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.85 312.83 Td (Fiscal Year-end September 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 300.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.30 300.68 Td (Cost Basis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.90 300.68 Td (Unrealized Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.75 300.68 Td (Unrealized Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 300.68 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 287.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 287.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 287.17 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 287.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 287.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 287.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 287.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 287.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 287.17 Td (91,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 273.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 273.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 273.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 273.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 273.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 259.17 Td (Available-for-sale securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 259.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 259.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 259.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 259.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 245.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 245.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 245.17 Td (23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 245.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 245.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 245.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 245.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 245.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 245.17 Td (23,983) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 231.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 231.17 Td (149,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 231.17 Td (831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.80 231.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 231.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 231.17 Td (150,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.50 218.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 218.17 Td (52,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 218.17 Td (195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.80 218.22 Td (\(42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 218.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 218.17 Td (52,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 204.17 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 204.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 204.17 Td (226,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 204.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 204.17 Td (1,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 204.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.80 204.22 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 204.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 204.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 204.17 Td (227,058) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 176.10 Td (None of the unrealized losses as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.40 176.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.11 176.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.44 176.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.70 176.10 Td ( were considered to be other) Tj ET Q q 0 0 0 rg BT 486.51 176.10 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (impairments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 144.10 Td (The amortized cost and estimated fair value of available-for) Tj ET Q q 0 0 0 rg BT 312.64 144.10 Td (-sale investments in debt securities as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.21 144.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.91 144.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 132.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.70 132.10 Td (, classified as short-term investments on our consolidated balance sheets, were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (thousands\):) Tj ET Q endstream endobj 179 0 obj <>] /Rotate 0 /Contents 180 0 R>> endobj 180 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (5. SHOR) Tj ET Q q 0 0 0 rg BT 87.99 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 93.74 712.60 Td (-TERM INVESTMENTS \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (87) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 654.50 219.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 654.50 69.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.00 654.50 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 654.50 70.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 654.50 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 654.50 70.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 654.50 5.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.00 654.50 70.00 -26.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 687.5 m 337 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 687.5 m 342 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 687.5 m 412 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 687.5 m 417 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 687.5 m 487 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 687.5 m 492 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 687.5 m 562 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 674.5 m 337 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 674.5 m 342 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 674.5 m 412 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 674.5 m 487 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 674.5 m 492 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 674.5 m 562 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 654.5 m 337 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 654.5 m 412 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 654.5 m 487 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 654.5 m 562 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 629.5 m 337 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 627.5 m 337 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 629.5 m 412 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 627.5 m 412 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 654.5 m 487 654.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 629.5 m 487 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 627.5 m 487 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 629.5 m 562 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 627.5 m 562 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 603.5 m 337 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 601.5 m 337 601.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 603.5 m 412 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 601.5 m 412 601.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 603.5 m 487 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 601.5 m 487 601.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 603.5 m 562 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492 601.5 m 562 601.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 692.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.20 691.73 Td (Fiscal Year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 678.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.50 678.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.00 678.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 51.50 658.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.00 658.73 Td (Amortized Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.90 666.58 Td (Estimated Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 658.58 Td (Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.50 658.73 Td (Amortized Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.90 666.58 Td (Estimated Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.85 658.58 Td (Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 643.17 Td (Investments in available-for-sale debt securities due) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 633.17 Td (in less than one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 633.17 Td (148,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 633.17 Td (149,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 633.17 Td (178,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 633.17 Td (179,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 619.07 Td (Investments in available-for) Tj ET Q q 0 0 0 rg BT 163.48 619.07 Td (-sale debt securities due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 609.07 Td (in one to five years ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 130.64 613.60 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 607.17 Td (29,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 607.17 Td (29,330) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 607.17 Td (47,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.50 607.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 607.17 Td (47,835) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 573.60 Td (\(1\) Classified as short-term investments because these securities are highly liquid and can be sold at any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 553.60 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.49 553.60 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.49 553.60 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.10 553.60 Td ($163.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.99 553.60 Td ( from the sale of available-for) Tj ET Q q 0 0 0 rg BT 452.90 553.60 Td (-sale securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.60 Td (realized gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.91 541.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.80 541.60 Td (. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.79 541.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.79 541.60 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.40 541.60 Td ($37.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.29 541.60 Td ( from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.60 Td (available-for) Tj ET Q q 0 0 0 rg BT 100.38 529.60 Td (-sale securities and realized gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.37 529.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.26 529.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 489.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.44 489.60 Td (A) Tj ET Q q 0 0 0 rg BT 96.92 489.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.17 489.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 273.62 489.60 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 469.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 469.60 Td (e maintain operations in various countries outside of the United States and have foreign subsidiaries that manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.60 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 241.78 457.60 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 501.58 457.60 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.60 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 319.84 445.60 Td (Y) Tj ET Q q 0 0 0 rg BT 326.06 445.60 Td (en, South Korean ) Tj ET Q q 0 0 0 rg BT 398.09 445.60 Td (W) Tj ET Q q 0 0 0 rg BT 406.73 445.60 Td (on and Chinese Renminbi \(RMB\). ) Tj ET Q q 0 0 0 rg BT 546.17 445.60 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.60 Td (a result, our earnings, cash flows and cash balances are exposed to fluctuations in foreign currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 510.53 433.60 Td (W) Tj ET Q q 0 0 0 rg BT 519.17 433.60 Td (e attempt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.60 Td (to limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 299.54 421.60 Td (W) Tj ET Q q 0 0 0 rg BT 308.18 421.60 Td (e utilize derivative instruments, primarily forward contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.60 Td (with maturities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.10 409.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.10 409.60 Td ( 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 49.50 397.60 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 49.50 385.60 Td (underlying instruments. ) Tj ET Q q 0 0 0 rg BT 146.81 385.60 Td (W) Tj ET Q q 0 0 0 rg BT 155.45 385.60 Td (e do not use derivative financial instruments for speculative or trading purposes. ) Tj ET Q q 0 0 0 rg BT 478.79 385.60 Td (The credit risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.60 Td (amounts represent the Company) Tj ET Q q 0 0 0 rg BT 181.41 373.60 Td (s gross exposure to potential accounting loss on derivative instruments that are outstanding or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.60 Td (unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency rates at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.60 Td (each respective date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.60 Td (For derivative instruments that are not designated as hedging instruments, gains and losses are recognized in other income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.60 Td (\(expense\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 297.60 Td (Non-Designated Derivatives) Tj ET Q endstream endobj 181 0 obj <>] /Rotate 0 /Contents 182 0 R>> endobj 182 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.94 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 97.42 712.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.67 712.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 274.12 712.60 Td (ACTIVITIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (88) 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 asset \(liability\) amounts of non-designated hedge contracts, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (maximum maturity of twomonths, 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 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 416.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.00 416.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 355.00 416.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 416.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 416.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 416.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 416.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.00 416.60 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 307.55 651.68 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.50 643.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.60 651.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 643.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.05 651.68 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.00 643.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.10 651.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.50 643.68 Td (2014) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.65 617.28 Td (52,699) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 617.17 Td (31,926) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 617.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 617.28 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.30 617.22 Td (\(1,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 617.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 589.17 Td (South 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 (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 575.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.15 575.28 Td (253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 575.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 575.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 575.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 575.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 575.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 561.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 561.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 561.33 Td (\(17,747) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 561.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 561.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 561.22 Td (\(2,991) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 561.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 561.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.15 561.28 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 561.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 561.17 Td (72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 533.17 Td (Chinese RMB currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 519.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 519.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 519.33 Td (\(10,900) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 519.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 519.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 519.22 Td (\(15,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 519.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 519.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.80 519.33 Td (\(106) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 519.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 519.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 519.22 Td (\(56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 519.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 491.17 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 477.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 477.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.15 477.28 Td (558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 477.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 477.17 Td (471) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 477.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.15 477.28 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 477.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 477.22 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 477.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 463.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 463.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.30 463.33 Td (\(15,804) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 463.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 463.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.30 463.22 Td (\(15,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 463.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 463.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 463.33 Td (\(84) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 463.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 463.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 463.17 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 435.17 Td (Other foreign currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.50 435.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 435.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 435.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 435.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 421.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 421.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.65 421.28 Td (3,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 421.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 421.17 Td (1,899) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 421.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.80 421.33 Td (\(49) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 421.28 Td (\)) 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 521.80 421.22 Td (\(35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 421.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 407.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.50 407.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 325.30 407.33 Td (\(5,835) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.15 407.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 407.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 407.22 Td (\(3,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 407.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.50 407.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.15 407.28 Td (146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 407.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 407.17 Td (63) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 366.10 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 49.50 354.10 Td (enter into contracts for specific future transactions. Cash flow hedges are evaluated for ef) Tj ET Q q 0 0 0 rg BT 406.39 354.10 Td (fectiveness quarterly) Tj ET Q q 0 0 0 rg BT 488.76 354.10 Td (. ) Tj ET Q q 0 0 0 rg BT 493.58 354.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 519.22 354.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 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 49.50 330.10 Td (earnings when the underlying transaction af) Tj ET Q q 0 0 0 rg BT 224.54 330.10 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 284.61 330.10 Td (The majority of the after) Tj ET Q q 0 0 0 rg BT 382.70 330.10 Td (-tax net income or loss related to derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (instruments included in OCI at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 318.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.02 318.10 Td ( is expected to be reclassified into earnings within 12 months. Changes in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (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 483.03 306.10 Td (fectiveness and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (recognized in other income \(expense\) as incurred. ) Tj ET Q q 0 0 0 rg BT 251.45 294.10 Td (W) Tj ET Q q 0 0 0 rg BT 260.09 294.10 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 49.50 282.10 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 49.50 270.10 Td (activities since we do not designate our cash flow hedges as investing or financing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 250.10 Td (The outstanding notional contract and fair value asset \(liability\) amounts of designated cash flow hedge contracts, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (maximum maturity of thirteen months, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 187.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 187.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 187.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 187.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 187.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 187.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 187.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 187.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 159.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 159.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 159.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 159.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 159.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 159.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 159.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 159.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.00 131.60 247.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 131.60 58.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 131.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.00 131.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 440.00 131.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 131.60 57.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 131.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.00 131.60 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 321 206.60000000000002 m 379 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 206.60000000000002 m 383 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 206.60000000000002 m 440 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 206.60000000000002 m 501 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 206.60000000000002 m 505 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 206.60000000000002 m 563 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 206.60000000000002 m 379 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 187.60000000000002 m 379 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 206.60000000000002 m 440 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383 187.60000000000002 m 440 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 206.60000000000002 m 501 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 187.60000000000002 m 501 187.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 206.60000000000002 m 563 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 187.60000000000002 m 563 187.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 197.00 210.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.30 210.83 Td (U.S. Notional Contract Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.05 210.83 Td (U.S. Fair Value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 192.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.55 198.68 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.50 190.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.60 198.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.00 190.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.05 198.68 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 190.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.10 198.68 Td (September 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 190.68 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 178.17 Td (Euro currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 178.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 178.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.50 178.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 178.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 164.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.50 164.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.15 164.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 164.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 164.17 Td (11,149) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.50 164.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.15 164.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 164.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 164.22 Td (\(950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 164.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 136.17 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 122.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.50 122.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 349.30 122.33 Td (\(2,903) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.15 122.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 122.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 122.22 Td (\(12,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 122.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.50 122.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 487.15 122.28 Td (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 122.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 122.17 Td (63) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 98.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 98.10 Td (e have entered into certain derivative forward contracts to sell Japanese ) Tj ET Q q 0 0 0 rg BT 369.69 98.10 Td (Y) Tj ET Q q 0 0 0 rg BT 375.91 98.10 Td (en and buy Euro to hedge revenue exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (related to our photonics-based solutions in ) Tj ET Q q 0 0 0 rg BT 221.14 86.10 Td (Asia. In order to facilitate the hedge, we transact with counterparties in the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (directly and then allocate the hedge contracts to our af) Tj ET Q q 0 0 0 rg BT 266.17 74.10 Td (filiates through a back-to-back relationship with our German subsidiary) Tj ET Q q 0 0 0 rg BT 552.11 74.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (The German subsidiary designates these hedge contracts as cash flow hedges under ) Tj ET Q q 0 0 0 rg BT 384.95 62.10 Td (ASC 815.) Tj ET Q endstream endobj 183 0 obj <>] /Rotate 0 /Contents 184 0 R>> endobj 184 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (6. 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rg BT 73.50 651.10 Td (The locations and amounts of designated and non-designated derivative instruments) Tj ET Q q 0 0 0 rg BT 411.83 651.10 Td ( gains and losses in the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (financial statements for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.81 639.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.52 639.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 639.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.22 639.10 Td ( were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 620.60 146.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 223.00 620.60 63.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 286.00 620.60 6.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 620.60 75.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 367.00 620.60 6.00 -29.00 re f /GS0 gs 0.8 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Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 603.83 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 401.30 603.83 Td (Y) Tj ET Q q 0 0 0 rg BT 406.19 603.83 Td (ear) Tj ET Q q 0 0 0 rg BT 417.15 603.83 Td ( Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.10 595.83 Td (September) Tj ET Q q 0 0 0 rg BT 413.83 595.83 Td (27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.60 603.83 Td (Fiscal ) Tj ET Q q 0 0 0 rg BT 486.30 603.83 Td (Y) Tj ET Q q 0 0 0 rg BT 491.19 603.83 Td (ear) Tj ET Q q 0 0 0 rg BT 502.15 603.83 Td ( Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.10 595.83 Td (September) Tj ET Q q 0 0 0 rg BT 498.83 595.83 Td ( 28, 2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 581.28 Td (Derivatives designated as) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 571.28 Td (hedging instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 552.06 Td (Gains\(losses\) in OCI on derivatives) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 543.06 Td (\(effective portion\), after tax) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 543.06 Td (OCI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 543.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.15 543.28 Td (601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.80 543.32 Td (\(573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 543.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 543.27 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 524.06 Td (Gains\(losses\) reclassified from OCI) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 515.06 Td (into income \(effective portion\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 515.06 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 515.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.30 515.33 Td (\(1,720) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 515.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 515.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 515.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 515.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 515.27 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 496.06 Td (Gains\(losses\) reclassified from OCI) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 487.06 Td (into income \(effective portion\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 487.06 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 487.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.15 487.28 Td (208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 487.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 487.32 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 487.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 487.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 487.27 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 473.86 Td (Gains\(losses\) recognized in income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 464.86 Td (on derivatives \(ineffective portion) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 455.86 Td (and amount excluded from) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 446.86 Td (effectiveness testing\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 455.06 Td (Other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 446.06 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 446.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.80 446.33 Td (\(108) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 446.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 446.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 446.27 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 446.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 446.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 431.28 Td (Derivatives not designated as) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 421.28 Td (hedging instruments) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 85.50 393.06 Td (Gains\(losses\) recognized in income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 402.06 Td (Other income) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 225.50 393.06 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.50 393.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.30 393.33 Td (\(4,320) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 363.15 393.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 393.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.30 393.32 Td (\(3,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 393.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 393.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 393.27 Td (2,071) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 365.10 Td (During the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.79 365.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.49 365.10 Td ( we recognized a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.35 365.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.24 365.10 Td ( in other income \(expense\) as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (inef) Tj ET Q q 0 0 0 rg BT 64.87 353.10 Td (fectiveness related to a portion of an anticipated hedged transaction that failed to occur within the original hedge period plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (two months. ) Tj ET Q q 0 0 0 rg BT 101.27 341.10 Td (The remainder of the hedged transaction occurred as expected and ef) Tj ET Q q 0 0 0 rg BT 376.51 341.10 Td (fective amounts were recognized in revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (as disclosed in the above table.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 309.10 Td (The amounts that will be reclassified from OCI to earnings will generally be of) Tj ET Q q 0 0 0 rg BT 389.62 309.10 Td (fset by the recognition of the hedged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (transactions \(e.g., anticipated cost of sales\) in earnings, thereby achieving the realization of prices contemplated by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (underlying risk management strategies and will vary from the expected amounts presented above as a result of changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (foreign exchange rates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 253.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 253.10 Td (o mitigate credit risk in derivative transactions, we enter into master netting arrangements that allow each counterparty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (in the arrangements to net settle amounts of multiple and separate derivative transactions under certain conditions. ) Tj ET Q q 0 0 0 rg BT 508.89 241.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.53 241.10 Td (e present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (the fair value of derivative assets and liabilities within the our consolidated balance sheet on a gross basis even when derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (transactions are subject to master netting arrangements and may otherwise qualify for net presentation. Our derivative contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (do not contain any credit risk related contingent features and do not require collateral or other security to be furnished by us or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (the counterparties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 173.10 Td (Of) Tj ET Q q 0 0 0 rg BT 83.87 173.10 Td (fsetting of Financial ) Tj ET Q q 0 0 0 rg BT 166.36 173.10 Td (Assets/Liabilities under Master Netting ) Tj ET Q q 0 0 0 rg BT 325.78 173.10 Td (Agreements with Derivative Counterparties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.21 161.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.65 161.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.91 161.10 Td ( \(in thousands\): ) Tj ET Q endstream endobj 185 0 obj <>] /Rotate 0 /Contents 186 0 R>> endobj 186 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 90.94 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 97.42 712.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 199.67 712.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 274.12 712.60 Td (ACTIVITIES \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (90) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 581.50 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 581.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 581.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 581.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 581.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 581.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 581.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 581.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 581.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 581.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 581.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 581.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 581.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 553.50 120.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 553.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.50 553.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 553.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.50 553.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 553.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 553.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 553.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.50 553.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 553.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 553.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 553.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 553.50 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 665.5 m 444.5 665.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 665.5 m 449.5 665.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 665.5 m 499.5 665.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194.5 581.5 m 254.5 581.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259.5 581.5 m 319.5 581.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 581.5 m 384.5 581.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 581.5 m 444.5 581.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 581.5 m 499.5 581.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 581.5 m 554.5 581.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.45 687.95 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 406.70 678.95 Td (in the Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 415.35 669.95 Td (Balance Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.80 621.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.60 612.95 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 202.00 603.95 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 204.00 594.95 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.00 585.95 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 277.80 630.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 271.45 621.95 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 265.25 612.95 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 263.70 603.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.75 594.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 276.75 585.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.85 648.95 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.10 639.95 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 342.00 630.95 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 330.20 621.95 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 348.00 612.95 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.70 603.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.75 594.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.75 585.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 398.45 603.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.95 594.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.25 585.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 464.20 603.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.75 594.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 456.75 585.95 Td (Received) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 522.25 594.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 511.45 585.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 572.18 Td (As of October 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 558.07 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 558.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 558.07 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.00 558.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 558.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 558.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 558.07 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 558.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 558.12 Td (\(116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 558.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 558.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 558.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.00 558.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 558.07 Td (142) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 544.18 Td (As of September 27, 2014:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.07 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 530.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 530.07 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.00 530.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 530.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 530.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 530.07 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.00 530.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 530.12 Td (\(367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 530.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 530.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 530.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.00 530.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 530.07 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 514.00 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.17 514.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.87 514.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 514.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.58 514.00 Td ( were related to derivative liabilities which are allowed to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.00 Td (net settled against derivative assets in accordance with the master netting agreements.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.00 355.50 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.00 355.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.00 355.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 355.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 355.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 355.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 355.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 355.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 355.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 355.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 355.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 355.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 355.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.00 327.50 119.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.00 327.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.00 327.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 327.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 327.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 327.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 327.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 327.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 327.50 55.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 327.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 327.50 50.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 327.50 5.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 327.50 50.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 440.5 m 444 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 440.5 m 449 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 440.5 m 499 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 194 355.5 m 254 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 259 355.5 m 319 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 355.5 m 384 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 355.5 m 444 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 355.5 m 499 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 355.5 m 554 355.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.95 462.95 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 406.20 453.95 Td (in the Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 414.85 444.95 Td (Balance Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 212.30 395.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.10 386.95 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.50 377.95 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.50 368.95 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 204.20 359.95 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 277.30 404.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 270.95 395.95 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 264.75 386.95 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 263.20 377.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.25 368.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 276.25 359.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.35 422.95 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.60 413.95 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 334.20 404.95 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.70 395.95 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 347.50 386.95 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.20 377.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.25 368.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.25 359.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 397.95 377.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.45 368.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.75 359.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 463.70 377.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.25 368.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 464.70 359.95 Td (Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 521.75 368.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.95 359.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.50 346.18 Td (As of October 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 332.07 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 332.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.80 332.07 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 332.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 332.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.15 332.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 332.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 332.12 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 332.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 332.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.15 332.07 Td (116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 332.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 332.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 332.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 332.12 Td (\(123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.15 332.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.50 318.18 Td (As of September 27, 2014:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 304.07 Td (Foreign exchange contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 304.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.30 304.07 Td (\(2,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 304.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 304.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.15 304.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 304.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.30 304.12 Td (\(2,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 304.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 304.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.15 304.07 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 304.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 304.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 304.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.30 304.12 Td (\(1,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.15 304.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 280.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 280.00 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.17 280.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.87 280.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.31 280.00 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.58 280.00 Td ( were related to derivative assets which are allowed to be net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 268.00 Td (settled against derivative liabilities in accordance with the master netting agreements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 244.00 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 116.74 244.00 Td ( ) Tj ET Q q 0 0 0 rg BT 118.68 244.00 Td (AND INT) Tj ET Q q 0 0 0 rg BT 159.89 244.00 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 207.96 244.00 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.00 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 49.50 212.00 Td (impairment loss may have occurred, and we write down these assets when impaired. ) Tj ET Q q 0 0 0 rg BT 389.50 212.00 Td (W) Tj ET Q q 0 0 0 rg BT 398.13 212.00 Td (e perform our annual impairment tests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.00 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 508.09 200.00 Td (, with any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.00 Td (resulting impairment recorded in the fourth quarter of the fiscal year) Tj ET Q q 0 0 0 rg BT 322.18 188.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 168.00 Td (Coherent has two reporting units: Specialty Laser Systems and Commercial Lasers and Components. In our fiscal 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.00 Td (annual testing, we performed a qualitative assessment of the goodwill for our SLS reporting unit during the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.00 Td (fiscal 2015 using the opening balance sheet as of the first day of the fourth quarter and concluded that it was more likely than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.00 Td (not that the fair value of the reporting unit exceeded its carrying amount. In assessing the qualitative factors, we considered the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.00 Td (impact of these key factors: macroeconomic conditions, fluctuations in foreign currency) Tj ET Q q 0 0 0 rg BT 401.23 120.00 Td (, market and industry conditions, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.00 Td (operating and competitive environment, regulatory and political developments, the overall financial performance of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.00 Td (reporting unit including cost factors and budgeted-to-actual revenue results. ) Tj ET Q q 0 0 0 rg BT 354.78 96.00 Td (W) Tj ET Q q 0 0 0 rg BT 363.42 96.00 Td (e also considered our market capitalization, stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.00 Td (price performance and the significant excess between the estimated fair value and carrying value of the SLS reporting unit. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 72.00 Td (Based on our assessment, goodwill in the SLS reporting unit was not impaired as of the first day of the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 60.00 Td (2015. ) Tj ET Q q 0 0 0 rg BT 73.95 60.00 Td (As such, it was not necessary to perform the two-step goodwill impairment test at that time. For the CLC reporting unit, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 48.00 Td (we elected to bypass the qualitative assessment and proceed directly to performing the first step of the goodwill impairment ) 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 117.24 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 119.18 712.60 Td (AND INT) Tj ET Q q 0 0 0 rg BT 160.39 712.60 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 208.46 712.60 Td (ASSETS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (test. ) Tj ET Q q 0 0 0 rg BT 68.21 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.84 695.10 Td (e performed our Step 1 test using the opening balance sheet as of the first day of the fourth quarter and noted no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (impairment. ) Tj ET Q q 0 0 0 rg BT 100.42 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 109.06 683.10 Td (e determined the fair value of the CLC reporting unit for the Step 1 test using a 50-50% weighting of the Income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (\(discounted cash flow\) approach and Market \(market comparable\) approach. Management completed and reviewed the results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (of the Step 1 analysis and concluded that a Step 2 analysis was not required as the estimated fair value of the CLC reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (unit was significantly in excess of its carrying value. Between the completion of that testing and the end of the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (fiscal 2015, we noted no indications of impairment or triggering events with either reporting unit to cause us to review goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (for potential impairment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 603.10 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 355.09 603.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.09 603.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.53 603.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.53 603.10 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 555.60 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 555.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 555.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 555.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 555.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 525.60 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 525.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 525.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 525.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 525.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 495.60 316.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 366.50 495.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 495.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 495.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 495.60 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 366.5 555.6 m 432.5 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 555.6 m 496.5 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 555.6 m 560.5 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 555.6 m 432.5 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 555.6 m 496.5 555.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 525.6 m 432.5 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 525.6 m 496.5 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 525.6 m 432.5 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 525.6 m 496.5 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 525.6 m 560.5 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 480.6 m 432.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 480.6 m 496.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 480.6 m 560.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 480.6 m 432.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 466.6 m 432.5 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366.5 464.6 m 432.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 466.6 m 496.5 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 464.6 m 496.5 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 466.6 m 560.5 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 464.6 m 560.5 464.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.95 575.83 Td (Commer) Tj ET Q q 0 0 0 rg BT 408.01 575.83 Td (cial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.20 567.83 Td (Lasers and) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.75 559.83 Td (Components \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.40 575.83 Td (Specialty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.25 567.83 Td (Laser) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.55 559.83 Td (Systems \(2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.25 559.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 545.27 Td (Balance as of September 28, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 545.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 545.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 545.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 545.27 Td (107,045) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 545.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 545.27 Td (113,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 530.27 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 530.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 530.32 Td (\(3,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 530.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 530.32 Td (\(3,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.65 530.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 515.27 Td (Balance as of September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 515.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 515.27 Td (103,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 515.27 Td (109,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 500.27 Td (Additions \(see Note 3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 500.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 500.27 Td (1,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 500.27 Td (1,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 485.27 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 485.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 485.32 Td (\(8,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 485.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 485.32 Td (\(8,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.65 485.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 470.27 Td (Balance as of October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.00 470.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 470.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 470.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 470.27 Td (95,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 470.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 470.27 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 448.50 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 255.25 448.50 Td ($25.7 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 298.37 448.50 Td ( at both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 324.36 448.50 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 376.13 448.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.68 448.50 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 455.89 448.50 Td (. ) Tj ET Q q 0 0 0 rg BT 461.45 448.50 Td (At both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 487.67 448.50 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 539.44 448.50 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 438.90 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 113.71 438.90 Td (, the accumulated impairment loss for the CLC reporting unit was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 326.11 438.90 Td ($19.3 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.22 438.90 Td ( reflecting an impairment char) Tj ET Q q 0 0 0 rg BT 465.92 438.90 Td (ge in fiscal 2009.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 73.50 421.30 Td (\(2\) Gross amount of goodwill for our SLS segment was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 253.48 421.30 Td ($97.8 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 296.59 421.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.14 421.30 Td ($105.5 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 359.26 421.30 Td ( at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 369.03 421.30 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 420.80 421.30 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.35 421.30 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.56 421.30 Td (. ) Tj ET Q q 0 0 0 rg BT 506.12 421.30 Td (At both ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 411.70 Td (October3, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 101.27 411.70 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 116.82 411.70 Td (September27, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 181.03 411.70 Td (, the accumulated impairment loss for the SLS reporting unit was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 391.65 411.70 Td ($2.4 million) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 430.76 411.70 Td ( reflecting an impairment char) Tj ET Q q 0 0 0 rg BT 527.46 411.70 Td (ge in ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (fiscal 2003.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 382.10 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 49.50 370.10 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 49.50 358.10 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 49.50 346.10 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 49.50 334.10 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 72.00 314.10 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.99 314.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.99 314.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.99 314.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.99 314.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.42 314.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.42 314.10 Td (, we did not have any impairment of intangible assets as a result of the impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (analysis.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 282.10 Td (The components of our amortizable intangible assets are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 220.60 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 220.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 220.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 220.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 220.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 220.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 220.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 220.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 190.60 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 190.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 190.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 190.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 190.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 190.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 190.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 190.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 160.60 162.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 211.50 160.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 266.50 160.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 160.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 160.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 329.50 160.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 160.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 160.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 443.50 160.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 447.50 160.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 160.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.50 160.60 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 211.5 249.60000000000002 m 266.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 249.60000000000002 m 270.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 249.60000000000002 m 325.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 249.60000000000002 m 329.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 249.60000000000002 m 384.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 249.60000000000002 m 443.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 249.60000000000002 m 447.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 249.60000000000002 m 502.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 249.60000000000002 m 506.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 249.60000000000002 m 561.5 249.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 220.60000000000002 m 266.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 220.60000000000002 m 325.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 220.60000000000002 m 384.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 220.60000000000002 m 443.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 220.60000000000002 m 502.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 220.60000000000002 m 561.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 220.60000000000002 m 266.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 220.60000000000002 m 325.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 220.60000000000002 m 443.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 220.60000000000002 m 502.5 220.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 160.60000000000002 m 266.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 160.60000000000002 m 325.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 160.60000000000002 m 443.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 160.60000000000002 m 502.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 160.60000000000002 m 266.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 146.60000000000002 m 266.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 144.60000000000002 m 266.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 160.60000000000002 m 325.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 146.60000000000002 m 325.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 144.60000000000002 m 325.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 160.60000000000002 m 384.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 146.60000000000002 m 384.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 144.60000000000002 m 384.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 160.60000000000002 m 443.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 146.60000000000002 m 443.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 144.60000000000002 m 443.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 160.60000000000002 m 502.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 146.60000000000002 m 502.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 144.60000000000002 m 502.5 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 160.60000000000002 m 561.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 146.60000000000002 m 561.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 144.60000000000002 m 561.5 144.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 254.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.30 253.83 Td (Fiscal 2015 Year-ended October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.85 253.83 Td (Fiscal 2014 Year-ended September 27, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 225.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.55 240.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 238.18 240.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 222.70 232.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 224.45 224.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.80 232.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.60 224.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.50 224.83 Td (Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.55 240.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 415.18 240.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.70 232.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.45 224.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.80 232.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.60 224.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.50 224.83 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 210.27 Td (Existing technology) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.00 210.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 210.28 Td (71,365) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 210.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 210.33 Td (\(55,452) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 210.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.00 210.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.15 210.28 Td (15,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 210.27 Td (81,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 210.32 Td (\(57,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 210.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 210.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 210.27 Td (23,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 195.27 Td (Customer lists) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 195.28 Td (16,099) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.80 195.33 Td (\(9,661) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 195.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.15 195.28 Td (6,438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 195.27 Td (16,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 195.32 Td (\(9,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 195.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 195.27 Td (7,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 180.27 Td (Trade name) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.65 180.28 Td (399) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.30 180.33 Td (\(349) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 180.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 370.65 180.28 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 180.27 Td (431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 180.32 Td (\(346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 180.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 180.27 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 165.27 Td (In-process research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 247.65 165.28 Td (375) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.65 165.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 365.65 165.28 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 165.27 Td (424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 165.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 165.27 Td (424) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 150.27 Td (Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 214.00 150.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 235.15 150.28 Td (88,238) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 150.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.80 150.33 Td (\(65,462) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 150.28 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 332.00 150.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.15 150.28 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 150.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 150.27 Td (99,038) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 150.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 150.32 Td (\(67,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 150.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 150.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 150.27 Td (31,666) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 124.20 Td (For accounting purposes, when an intangible asset is fully amortized, it is removed from the disclosure schedule. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 102.30 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 90.30 Td (purchases or licenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 70.30 Td (The weighted average remaining amortization period for existing technology is approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.10 70.30 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.70 70.30 Td (, and the weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.30 Td (average remaining amortization period for customer lists and trade name is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.89 58.30 Td (4 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.49 58.30 Td (. ) Tj ET Q q 0 0 0 rg BT 384.94 58.30 Td (Amortization expense for intangible assets ) Tj ET Q endstream endobj 189 0 obj <>] /Rotate 0 /Contents 190 0 R>> endobj 190 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 117.24 712.60 Td ( ) Tj ET Q q 0 0 0 rg BT 119.18 712.60 Td (AND INT) Tj ET Q q 0 0 0 rg BT 160.39 712.60 Td (ANGIBLE ) Tj ET Q q 0 0 0 rg BT 208.46 712.60 Td (ASSETS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (during fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.86 695.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.86 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.86 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.86 695.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.80 695.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.80 695.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.35 695.10 Td ($8.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.24 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.24 695.10 Td ($9.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.14 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.57 695.10 Td ($9.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.47 695.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 457.13 695.10 Td (, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.89 695.10 Td ($6.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 683.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.39 683.10 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.28 683.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.72 683.10 Td ($6.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.61 683.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 253.27 683.10 Td (, for amortization of existing technology) Tj ET Q q 0 0 0 rg BT 414.25 683.10 Td (. ) Tj ET Q q 0 0 0 rg BT 419.07 683.10 Td (The change in accumulated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (amortization also includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.97 671.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 205.86 671.10 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 208.36 671.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.30 671.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.19 671.10 Td ( of foreign exchange impact for fiscal 2015 and fiscal 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 659.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 639.10 Td (Estimated amortization expense for the next five fiscal years and all years thereafter are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 592.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 592.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 564.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 564.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 536.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 536.60 70.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 508.60 442.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 508.60 70.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 592.6 m 561.5 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 592.6 m 561.5 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 508.6 m 561.5 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 508.6 m 561.5 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 495.6 m 561.5 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 493.6 m 561.5 493.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 597.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.65 612.68 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.10 604.68 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.75 596.68 Td (Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 583.17 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 583.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 583.17 Td (8,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 569.17 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 569.17 Td (7,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 555.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 555.17 Td (4,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 541.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 541.17 Td (2,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 527.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 527.17 Td (628) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 513.17 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 513.17 Td (393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 499.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 499.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 499.17 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 144.07 471.10 Td ( DET) Tj ET Q q 0 0 0 rg BT 166.38 471.10 Td (AILS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 451.10 Td (Prepaid expenses and other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 406.60 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 406.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 406.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 406.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 378.60 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 378.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 378.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 378.60 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 419.6 m 492.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 419.6 m 496.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 419.6 m 561.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 419.6 m 492.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 406.6 m 492.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 419.6 m 561.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 406.6 m 561.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 406.6 m 492.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 406.6 m 561.5 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 364.6 m 492.5 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 364.6 m 561.5 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 364.6 m 492.5 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 351.6 m 492.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 349.6 m 492.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 364.6 m 561.5 364.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 351.6 m 561.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 349.6 m 561.5 349.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 423.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 423.83 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 410.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 410.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 410.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 397.17 Td (Prepaid and refundable income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 397.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 397.28 Td (8,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 397.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 397.17 Td (11,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 383.17 Td (Other taxes receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 383.28 Td (6,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 383.17 Td (5,184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 369.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 369.28 Td (12,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 369.17 Td (11,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 355.17 Td (Total prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 355.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 355.28 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 355.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 355.17 Td (27,839) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 331.10 Td (Other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 284.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 284.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 284.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 284.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 254.60 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 254.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 254.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 254.60 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 427.5 298.6 m 492.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 298.6 m 496.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 298.6 m 561.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 298.6 m 492.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 284.6 m 492.5 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 298.6 m 561.5 298.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 284.6 m 561.5 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 284.6 m 492.5 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 284.6 m 561.5 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 239.60000000000002 m 492.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 239.60000000000002 m 561.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 239.60000000000002 m 492.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 225.60000000000002 m 492.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 223.60000000000002 m 492.5 223.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 239.60000000000002 m 561.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 225.60000000000002 m 561.5 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 223.60000000000002 m 561.5 223.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 303.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 302.83 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 289.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 288.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 288.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 274.27 Td (Assets related to deferred compensation arrangements \(see Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 274.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 274.28 Td (25,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 274.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 274.27 Td (26,484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 259.27 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 259.28 Td (32,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 259.27 Td (37,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 244.27 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 244.28 Td (3,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 244.27 Td (5,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 229.27 Td (Total other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 229.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 229.28 Td (61,108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 229.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 229.27 Td (69,717) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 205.10 Td (On June8, 2010, we invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.04 205.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.93 205.10 Td ( in SiOnyx,Inc., a privately-held company) Tj ET Q q 0 0 0 rg BT 413.07 205.10 Td (. ) Tj ET Q q 0 0 0 rg BT 417.89 205.10 Td (The investment was included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (other assets and was being carried on a cost basis. During the third quarter of fiscal 2015 we determined that our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (became other) Tj ET Q q 0 0 0 rg BT 102.88 181.10 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 215.07 181.10 Td (As a result, during the third quarter of fiscal 2015, we recorded a non-cash char) Tj ET Q q 0 0 0 rg BT 532.55 181.10 Td (ge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 169.10 Td ( in our results of operations to impair this investment. In determining the fair value of the cost method investment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (we considered many factors including but not limited to operating performance of the investee, the amount of cash that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (investee has on-hand, the ability to obtain additional financing and the overall market conditions in which the investee operates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (The fair value of the cost method investment represents a Level 3 valuation as the assumptions used in valuing the investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (were not directly or indirectly observable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 101.10 Td (Other current liabilities consist of the following \(in thousands\):) Tj ET Q endstream endobj 191 0 obj <>] /Rotate 0 /Contents 192 0 R>> endobj 192 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 144.57 712.60 Td ( DET) Tj ET Q q 0 0 0 rg BT 166.88 712.60 Td (AILS \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (93) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 675.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 675.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 675.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 675.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 647.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 647.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 647.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 647.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 619.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 619.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 619.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 619.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 591.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 591.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 591.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 591.50 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 688.5 m 492.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 688.5 m 496.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 688.5 m 561.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 688.5 m 492.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 675.5 m 492.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 688.5 m 561.5 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 675.5 m 561.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 675.5 m 492.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 675.5 m 561.5 675.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 591.5 m 492.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 591.5 m 561.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 591.5 m 492.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 578.5 m 492.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 576.5 m 492.5 576.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 591.5 m 561.5 591.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 578.5 m 561.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 576.5 m 561.5 576.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 692.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 692.73 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 679.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 679.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 679.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 666.07 Td (Accrued payroll and benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 666.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 666.18 Td (35,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 666.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 666.07 Td (29,228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 652.07 Td (Accrued expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 652.18 Td (10,974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 652.07 Td (13,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 638.07 Td (Warranty reserve \(see Note 2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 638.18 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 638.07 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 624.07 Td (Other taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 624.18 Td (4,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 624.07 Td (5,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 610.07 Td (Customer deposits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 610.18 Td (1,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 610.07 Td (2,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 596.07 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 596.18 Td (16,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 596.07 Td (15,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 582.07 Td (Total other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 582.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 582.18 Td (84,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 582.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 582.07 Td (82,506) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 558.00 Td (Other long-term liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 513.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 513.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 513.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 513.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 485.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 485.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 485.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 485.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 457.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 457.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 457.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 457.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 429.50 378.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 429.50 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 429.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 429.50 65.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 526.5 m 492.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 526.5 m 496.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 526.5 m 561.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 526.5 m 492.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 513.5 m 492.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 526.5 m 561.5 526.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 513.5 m 561.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 513.5 m 492.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 513.5 m 561.5 513.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 429.5 m 492.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 429.5 m 561.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 429.5 m 492.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 416.5 m 492.5 416.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 414.5 m 492.5 414.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 429.5 m 561.5 429.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 416.5 m 561.5 416.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 414.5 m 561.5 414.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 530.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.70 530.73 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 517.23 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 517.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 517.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 504.07 Td (Long-term taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 504.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 504.18 Td (7,651) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 504.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 504.07 Td (15,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 490.07 Td (Deferred compensation \(see Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 490.18 Td (26,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 490.07 Td (27,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 476.07 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 476.18 Td (2,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 476.07 Td (6,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 462.07 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 462.18 Td (3,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 462.07 Td (3,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 448.07 Td (Asset retirement obligations liability \(see Note2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 448.18 Td (2,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 448.07 Td (2,222) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 434.07 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 434.18 Td (7,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 434.07 Td (6,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 420.07 Td (Total other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 420.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 420.18 Td (49,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 420.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 420.07 Td (62,407) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 392.00 Td ( 9. SHOR) Tj ET Q q 0 0 0 rg BT 89.99 392.00 Td (T) Tj ET Q q 0 0 0 rg BT 95.74 392.00 Td (-TERM BORROWINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 372.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 372.00 Td (e have several lines of credit which allow us to borrow in the applicable local currency) Tj ET Q q 0 0 0 rg BT 428.30 372.00 Td (. ) Tj ET Q q 0 0 0 rg BT 433.12 372.00 Td (W) Tj ET Q q 0 0 0 rg BT 441.76 372.00 Td (e have a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.11 372.00 Td ($13.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.01 372.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.00 Td (of unsecured foreign lines of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.88 360.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.59 360.00 Td (. ) Tj ET Q q 0 0 0 rg BT 283.04 360.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.54 360.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.25 360.00 Td (, we had used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.18 360.00 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.07 360.00 Td ( of these available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.00 Td (foreign lines of credit as guarantees. ) Tj ET Q q 0 0 0 rg BT 196.76 348.00 Td (These credit facilities were used in Europe, Japan and China during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.60 348.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.60 348.00 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.00 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 247.23 336.00 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.13 336.00 Td ( unsecured revolving credit account. ) Tj ET Q q 0 0 0 rg BT 448.67 336.00 Td (The agreement will expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.00 Td (on May31, 2017. ) Tj ET Q q 0 0 0 rg BT 122.65 324.00 Td (The line of credit is subject to covenants related to financial ratios and tangible net worth with which we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.00 Td (currently in compliance. ) Tj ET Q q 0 0 0 rg BT 149.28 312.00 Td (W) Tj ET Q q 0 0 0 rg BT 157.92 312.00 Td (e have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.06 312.00 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.96 312.00 Td ( for letters of credit against our domestic line of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 312.00 Td (October3, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 300.00 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 276.00 Td (10. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 146.45 276.00 Td (AND CONTINGENCIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 256.00 Td (Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 236.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 236.00 Td (e lease several of our facilities under operating leases and recognize rent expense on a straight-line basis over the life of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.00 Td (the leases.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 204.00 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 364.80 204.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.51 204.00 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 179.50 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 179.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 151.50 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 151.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 123.50 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 123.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 95.50 452.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.00 95.50 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 95.5 m 562 95.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 95.5 m 562 95.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 82.5 m 562 82.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502 80.5 m 562 80.5 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 52.5 182.48007812499998 m 72.49609375 182.48007812499998 l s q 0 0 0 rg BT 52.50 183.73 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 531.50 183.73 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 170.07 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 170.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 170.07 Td (10,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 156.07 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 156.07 Td (9,630) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 142.07 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 142.07 Td (7,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 128.07 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 128.07 Td (5,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 114.07 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 114.07 Td (4,532) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 100.07 Td (Thereafter through 2025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 100.07 Td (7,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 86.07 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.50 86.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 86.07 Td (45,853) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 62.00 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 62.00 Td ($1) Tj ET Q q 0 0 0 rg BT 281.68 62.00 Td (1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.57 62.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.57 62.00 Td ($1) Tj ET Q q 0 0 0 rg BT 340.20 62.00 Td (1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.09 62.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.53 62.00 Td ($10.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.42 62.00 Td ( in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.35 62.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.35 62.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.35 62.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.35 62.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 50.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 50.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.16 50.00 Td (.) Tj ET Q endstream endobj 193 0 obj <>] /Rotate 0 /Contents 194 0 R>> endobj 194 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (10. COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 146.95 712.60 Td (AND CONTINGENCIES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 695.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.65 695.10 Td (, we had total purchase commitments for inventory of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.07 695.10 Td ($25.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.96 695.10 Td ( and purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (obligations for fixed assets and services of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.96 683.10 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.85 683.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.55 683.10 Td ($23.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.44 683.10 Td ( of purchase commitments for inventory and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 671.10 Td ( of purchase obligations for fixed assets and services at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.10 671.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.37 671.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 651.10 Td (Contingencies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 631.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 631.10 Td (e are subject to legal claims and litigation arising in the ordinary course of business, such as product liability) Tj ET Q q 0 0 0 rg BT 514.05 631.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.10 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 455.42 619.10 Td (. On May 14, 2013, IMRA) Tj ET Q q 0 0 0 rg BT 561.53 619.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.10 Td (America \(Imra\) filed a complaint for patent infringement against two of the Company) Tj ET Q q 0 0 0 rg BT 404.37 607.10 Td (s subsidiaries in the Regional Court of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 134.94 595.10 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 227.97 595.10 Td ( ) Tj ET Q q 0 0 0 rg BT 229.92 595.10 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 518.55 595.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.10 Td (complaint alleges that the use of certain of our lasers infringe upon EP) Tj ET Q q 0 0 0 rg BT 330.71 583.10 Td ( Patent No. 754,103, entitled Method For Controlling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.10 Td (Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 243.33 571.10 Td (Ablation, issued November 5, 1997 \(the "Patent"\). ) Tj ET Q q 0 0 0 rg BT 451.83 571.10 Td (The Patent, now expired in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.10 Td (all jurisdictions, is owned by the University of Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 364.53 559.10 Td (The complaint seeks unspecified compensatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (damages, the cost of court proceedings and seeks to permanently enjoin the Company from infringing the Patent in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (Following the filing of the infringement suit, our subsidiaries filed a separate nullity action with the Federal Patent Court in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (Munich, Germany requesting that the court hold that the Patent was invalid based on prior art. On October 1, 2015, the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.10 Td (Patent Court ruled that the German portion of the Patent was invalid. Imra has the right to appeal this decision to the German ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.10 Td (Supreme Court. Management has made an accrual 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 49.50 487.10 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 49.50 475.10 Td (estimable. ) Tj ET Q q 0 0 0 rg BT 92.27 475.10 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 512.79 475.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 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 49.50 451.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 451.10 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 250.64 451.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 321.20 434.10 Td (fs and duties on the import and export of certain products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (we sell. From time to time our duty calculations and payments are audited by government agencies. ) Tj ET Q q 0 0 0 rg BT 455.32 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.96 422.10 Td (e are currently under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (audit in South Korea for customs duties and value added tax for the period March 2009 to March 2014.) Tj ET Q q 0 0 0 rg BT 464.40 410.10 Td (Although we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (expect that the audit will ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 298.10 398.10 Td (fect on our consolidated financial position, results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (or cash flows, an adverse result in this matter could negatively af) Tj ET Q q 0 0 0 rg BT 309.24 386.10 Td (fect our results in the period in which it occurs. ) Tj ET Q q 0 0 0 rg BT 500.02 386.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.21 374.10 Td (, management has accrued an estimated liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.41 374.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.30 374.10 Td ( related to this matter) Tj ET Q q 0 0 0 rg BT 452.72 374.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 350.10 Td (1. ST) Tj ET Q q 0 0 0 rg BT 76.00 350.10 Td (OCK REPURCHASES ) Tj ET Q q 0 0 0 rg BT 177.68 350.10 Td (AND DIVIDENDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 330.10 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 386.61 330.10 Td ($1.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.11 330.10 Td ( per share special cash dividend on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (our outstanding common stock payable on December27, 2012 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 49.50 306.10 Td (payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.26 306.10 Td ($24.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.16 306.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 286.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 286.10 Td (July25, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.89 286.10 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 49.50 274.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 274.10 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 300.03 274.10 Td (July31, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.20 274.10 Td (. During the first and second quarters of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 262.10 Td (, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.00 262.10 Td (434,1) Tj ET Q q 0 0 0 rg BT 207.13 262.10 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.13 262.10 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.70 262.10 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.20 262.10 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.30 250.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.19 250.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 230.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.72 230.10 Td (January21, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.32 230.10 Td (, our Board of Directors authorized an additional stock repurchase program to repurchase up to $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.41 230.10 Td (25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.91 230.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (million of our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.19 218.10 Td (January31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.79 218.10 Td (. During the fourth quarter of fiscal 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 206.10 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 206.10 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.08 206.10 Td ($58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.58 206.10 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 194.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.59 194.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 174.10 Td (On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.17 174.10 Td (August25, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.56 174.10 Td (, our Board of Directors authorized an additional stock repurchase program to repurchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 174.10 Td ($25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.15 174.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (million of our outstanding common stock from time to time through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.64 162.10 Td (August31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.03 162.10 Td (. During the fourth quarter of fiscal 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.00 150.10 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 150.10 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.08 150.10 Td ($57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.58 150.10 Td ( per share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 138.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.59 138.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.28 118.10 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.00 118.10 Td (A) Tj ET Q q 0 0 0 rg BT 167.12 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.01 118.10 Td (ARD, OPTION ) Tj ET Q q 0 0 0 rg BT 244.07 118.10 Td (AND BENEFIT) Tj ET Q q 0 0 0 rg BT 311.96 118.10 Td ( PLANS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (Deferr) Tj ET Q q 0 0 0 rg BT 77.63 98.10 Td (ed Compensation Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 78.10 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 66.10 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 54.10 Td (investment options. ) Tj ET Q q 0 0 0 rg BT 130.15 54.10 Td (While not required by the plan, the Company chooses to invest in insurance contracts and mutual funds in ) Tj ET Q endstream endobj 195 0 obj <>] /Rotate 0 /Contents 196 0 R>> endobj 196 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (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 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 49.50 695.10 Td (order to approximate the changes in the liability to the employees. ) Tj ET Q q 0 0 0 rg BT 316.46 695.10 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 49.50 683.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 651.60 388.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 651.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 651.60 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 651.60 60.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 624.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 624.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 624.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 624.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 596.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 596.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 596.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 596.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 568.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 568.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 568.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 568.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 540.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 540.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 540.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 540.60 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 437.5 651.6 m 497.5 651.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 651.6 m 501.5 651.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 651.6 m 561.5 651.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 651.6 m 497.5 651.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 638.6 m 497.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 651.6 m 561.5 651.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 638.6 m 561.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 638.6 m 497.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 638.6 m 561.5 638.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 610.6 m 497.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 610.6 m 561.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 610.6 m 497.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 597.6 m 497.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 595.6 m 497.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 610.6 m 561.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 597.6 m 561.5 597.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 595.6 m 561.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 540.6 m 497.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 527.6 m 497.5 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 525.6 m 497.5 525.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 540.6 m 561.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 527.6 m 561.5 527.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 525.6 m 561.5 525.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 655.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.70 655.83 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 642.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 642.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 642.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 629.17 Td (Cash surrender value of life insurance contracts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 629.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 629.28 Td (12,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 629.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 629.17 Td (12,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 615.17 Td (Fair value of mutual funds) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 615.28 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 615.17 Td (15,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 601.17 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 601.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 601.28 Td (26,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 601.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 601.17 Td (27,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 573.17 Td (Total assets, included in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 573.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.00 573.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 559.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 559.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 559.28 Td (1,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 559.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 559.17 Td (1,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 545.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.50 545.28 Td (25,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.50 545.17 Td (26,484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 531.17 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 531.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 531.28 Td (26,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 531.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 531.17 Td (27,999) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 490.60 388.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 490.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 490.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 490.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 461.60 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 461.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 461.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 461.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 431.60 388.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 431.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 431.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 431.60 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 437.5 490.6 m 497.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 490.6 m 501.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 490.6 m 561.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 490.6 m 497.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 476.6 m 497.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 490.6 m 561.5 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 476.6 m 561.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 431.6 m 497.5 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 431.6 m 561.5 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 431.6 m 497.5 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 417.6 m 497.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 415.6 m 497.5 415.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 431.6 m 561.5 431.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 417.6 m 561.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 415.6 m 561.5 415.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 495.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.70 494.83 Td (Fiscal Year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 481.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 480.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.00 480.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 466.27 Td (Total deferred compensation liability, included in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 466.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 466.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 451.27 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 451.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 451.28 Td (1,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 451.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 451.27 Td (1,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.27 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 436.28 Td (26,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 436.27 Td (27,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 421.27 Td (Total deferred compensation liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.00 421.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 421.28 Td (28,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 421.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 421.27 Td (29,373) 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 (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 49.50 385.10 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 49.50 373.10 Td (net loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.11 373.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.00 373.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.64 373.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.64 373.10 Td (, a net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.84 373.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.73 373.10 Td ( \(including a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.78 373.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.67 373.10 Td ( death benefit\) in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.06 373.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.06 373.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (and a net gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.64 361.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.53 361.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.17 361.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.17 361.10 Td (. Changes in the obligation to plan participants are recorded as a component of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (operating expenses and cost of sales; such amounts were an income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.30 349.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.20 349.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.84 349.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.84 349.10 Td (, a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.67 349.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.56 349.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.36 337.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.36 337.10 Td ( and a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.63 337.10 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.52 337.10 Td ( in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.16 337.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.16 337.10 Td (. Liabilities associated with participant balances under our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (deferred compensation plans are af) Tj ET Q q 0 0 0 rg BT 189.25 325.10 Td (fected by individual contributions and distributions made, as well as gains and losses on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (participant's investment allocation election.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (Coher) Tj ET Q q 0 0 0 rg BT 75.98 293.10 Td (ent Employee Retir) Tj ET Q q 0 0 0 rg BT 158.55 293.10 Td (ement and Investment Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 273.10 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 49.50 261.10 Td (maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.38 261.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.71 261.10 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 49.50 249.10 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 498.08 249.10 Td (The Company's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (contributions \(net of forfeitures\) during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.89 237.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.89 237.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.89 237.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.89 237.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.83 237.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.83 237.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.26 237.10 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 237.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 237.10 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.04 237.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.48 237.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.37 237.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 225.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (Employee Stock Pur) Tj ET Q q 0 0 0 rg BT 136.54 205.10 Td (chase Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 185.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 185.10 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 49.50 173.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 173.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 173.10 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 326.06 173.10 Td (85%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.39 173.10 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 49.50 161.10 Td (date of commencement of the of) Tj ET Q q 0 0 0 rg BT 178.99 161.10 Td (fering or on the last day of the six-month of) Tj ET Q q 0 0 0 rg BT 353.49 161.10 Td (fering period. During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.40 161.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.40 161.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.40 161.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.40 161.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.84 161.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.84 161.10 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.60 149.10 Td (132,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.10 149.10 Td ( shares, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.59 149.10 Td (134,321) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.09 149.10 Td ( shares and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.02 149.10 Td (159,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.52 149.10 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 337.67 149.10 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 49.50 137.10 Td (average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.40 137.10 Td ($51.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.90 137.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.90 137.10 Td ($48.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.40 137.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.84 137.10 Td ($37.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 137.10 Td ( per share, respectively) Tj ET Q q 0 0 0 rg BT 314.87 137.10 Td (. ) Tj ET Q q 0 0 0 rg BT 319.31 137.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.97 137.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.97 137.10 Td (year) Tj ET Q q 0 0 0 rg BT 395.48 137.10 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.34 137.10 Td (661,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.84 137.10 Td ( shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 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 49.50 105.10 Td (Stock ) Tj ET Q q 0 0 0 rg BT 75.34 105.10 Td (A) Tj ET Q q 0 0 0 rg BT 81.82 105.10 Td (ward and Option Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 85.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 85.10 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 85.10 Td (This plan is the 201) Tj ET Q q 0 0 0 rg BT 538.38 85.10 Td (1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 73.10 Td (Equity Incentive Plan \(the "201) Tj ET Q q 0 0 0 rg BT 175.40 73.10 Td (1 Plan"\) which includes our options, time-based restricted stock units and performance restricted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 61.10 Td (stock units. In prior years, we have had a stock plan for which employees and service providers were eligible participants and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 49.10 Td (non-employee Directors' Stock Option Plan for which only non-employee directors were eligible participants. ) Tj ET Q q 0 0 0 rg BT 491.00 49.10 Td (Those prior plans ) Tj ET Q endstream endobj 197 0 obj <>] /Rotate 0 /Contents 198 0 R>> endobj 198 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (have expired. Under the 201) Tj ET Q q 0 0 0 rg BT 162.70 695.10 Td (1 Plan, Coherent may grant options and awards \(time-based restricted stock units and performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (restricted stock units\) to purchase up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.18 683.10 Td (6,747,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.18 683.10 Td ( shares of common stock, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.38 683.10 Td (5,514,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.38 683.10 Td ( shares remained available for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (grant at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.26 671.10 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.42 671.10 Td ( year) Tj ET Q q 0 0 0 rg BT 145.93 671.10 Td (-end. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 651.10 Td (Grants to employees generally expire ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.39 651.10 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.05 651.10 Td ( years from the original grant date. Since adoption of the 201) Tj ET Q q 0 0 0 rg BT 485.50 651.10 Td (1 Plan, no stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (options have been granted to employees.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 619.10 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 49.50 607.10 Td (receive an award of restricted stock units of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.65 607.10 Td (3,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.15 607.10 Td ( shares which vest over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.89 607.10 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.89 607.10 Td ( year period. ) Tj ET Q q 0 0 0 rg BT 419.47 607.10 Td (The annual grant for non-employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.10 Td (directors is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.16 595.10 Td (3,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.66 595.10 Td ( shares of restricted stock units that vest on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.34 595.10 Td (February 15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.94 595.10 Td ( of the calendar year following the grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 575.10 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 49.50 563.10 Td (market-based conditions for vesting. Until restricted stock vests, shares \(including those issuable upon vesting of the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (restricted stock unit\) are subject to forfeiture if employment or service to the Company terminates prior to the release of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (restrictions and cannot be transferred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 518.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 518.10 Td (The service based restricted stock awards generally vest within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.13 518.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.11 518.10 Td ( years from the date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 497.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 497.10 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 466.14 497.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.13 497.10 Td ( years from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 485.10 Td (date of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 464.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 464.10 Td (The performance restricted stock unit award grants are generally either subject to annual vesting over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.39 464.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.38 464.10 Td ( years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 452.10 Td (from the date of grant or subject to a single vest measurement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.87 452.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.85 452.10 Td ( years from the date of grant, depending upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 440.10 Td (achievement of performance measurements based on the performance of the Company's total shareholder returns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 428.10 Td (\(as defined in the plan\) compared with the performance of the Russell 2000 Index.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.10 Td (Fair) Tj ET Q q 0 0 0 rg BT 67.64 408.10 Td ( ) Tj ET Q q 0 0 0 rg BT 69.96 408.10 Td (V) Tj ET Q q 0 0 0 rg BT 76.27 408.10 Td (alue of Stock Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 388.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 388.10 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 525.11 388.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 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 49.50 356.10 Td (Determining Fair) Tj ET Q q 0 0 0 rg BT 124.02 356.10 Td ( ) Tj ET Q q 0 0 0 rg BT 126.34 356.10 Td (V) Tj ET Q q 0 0 0 rg BT 132.64 356.10 Td (alue) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 336.10 Td (V) Tj ET Q q 0 0 0 rg BT 78.50 336.10 Td (aluation and amortization method) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.89 336.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.53 336.10 Td (e estimate the fair value of employee stock purchase shares using the Black-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.10 Td (Scholes-Merton option-pricing formula. ) Tj ET Q q 0 0 0 rg BT 212.06 324.10 Td (This fair value is then amortized on a straight-line basis over the purchase period.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 304.10 Td (Expected T) Tj ET Q q 0 0 0 rg BT 117.28 304.10 Td (erm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.84 304.10 Td (The expected term represents the period of our employee stock purchase plan.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 284.10 Td (Expected V) Tj ET Q q 0 0 0 rg BT 117.64 284.10 Td (olatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.75 284.10 Td (Our process for computing expected volatility considers both historical volatility and market-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (implied volatility; however our estimate of expected forfeitures is based on historical employee data and could dif) Tj ET Q q 0 0 0 rg BT 505.29 272.10 Td (fer from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (actual forfeitures.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 240.10 Td (Risk-Fr) Tj ET Q q 0 0 0 rg BT 103.68 240.10 Td (ee Inter) Tj ET Q q 0 0 0 rg BT 134.12 240.10 Td (est Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.05 240.10 Td (The risk-free interest rate used in the Black-Scholes-Merton valuation method is based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (implied yield currently available on U.S. ) Tj ET Q q 0 0 0 rg BT 214.83 228.10 Td (T) Tj ET Q q 0 0 0 rg BT 220.59 228.10 Td (reasury zero-coupon issues with an equivalent remaining term.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 208.10 Td (The fair values of shares purchased under the employee stock purchase plan for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.21 208.10 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.36 208.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.36 208.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.36 208.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.80 208.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 208.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td (estimated using the following weighted-average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 131.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 131.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 131.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 131.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 131.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 131.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 131.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 103.60 240.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 289.00 103.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 293.00 103.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 380.00 103.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 103.60 87.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 103.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 103.60 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 293 157.60000000000002 m 380 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 157.60000000000002 m 384 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 157.60000000000002 m 471 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 157.60000000000002 m 475 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 157.60000000000002 m 562 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 144.60000000000002 m 380 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 144.60000000000002 m 384 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 144.60000000000002 m 471 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 144.60000000000002 m 475 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 144.60000000000002 m 562 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 144.60000000000002 m 380 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 131.60000000000002 m 380 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 144.60000000000002 m 471 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 131.60000000000002 m 471 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 144.60000000000002 m 562 144.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 131.60000000000002 m 562 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 293 131.60000000000002 m 380 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 131.60000000000002 m 471 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 131.60000000000002 m 562 131.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 162.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.55 169.68 Td (Employee Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.95 161.68 Td (Pur) Tj ET Q q 0 0 0 rg BT 413.69 161.68 Td (chase Plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 148.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.00 148.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.50 135.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 328.00 135.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 135.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.00 135.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 122.17 Td (Expected life in years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.00 122.28 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.00 122.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.00 122.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 108.17 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 352.00 108.28 Td (28.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 108.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.65 108.17 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 108.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 108.17 Td (32.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 108.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 94.17 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.00 94.28 Td (0.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.50 94.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.65 94.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 94.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 94.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 94.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 80.17 Td (Weighted average fair value per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 80.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 347.00 80.28 Td (14.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 80.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 80.17 Td (13.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.50 80.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 80.17 Td (10.56) Tj ET Q BT /F1 10.00 Tf ET BT /F2 9.00 Tf ET q 0 0 0 rg BT 49.50 57.30 Td (T) Tj ET Q q 0 0 0 rg BT 55.34 57.30 Td (ime-Based Restricted Stock Units) Tj ET Q endstream endobj 199 0 obj <>] /Rotate 0 /Contents 200 0 R>> endobj 200 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.78 712.60 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.50 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 167.62 712.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.51 712.60 Td (ARD, 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.76 695.10 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 49.50 676.30 Td (Performance Restricted Stock Units) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 656.30 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 656.30 Td (e grant performance restricted stock units to of) Tj ET Q q 0 0 0 rg BT 267.33 656.30 Td (ficers and certain employees. ) Tj ET Q q 0 0 0 rg BT 388.76 656.30 Td (The performance stock unit agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 644.30 Td (provide for the award of performance stock units with each unit representing the right to receive one share of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 632.30 Td (to be issued after the applicable award vesting period. ) Tj ET Q q 0 0 0 rg BT 267.02 632.30 Td (The final number of units awarded, if any) Tj ET Q q 0 0 0 rg BT 432.98 632.30 Td (, for these performance grants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.30 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 49.50 608.30 Td (Russell 2000 Index and could range from no units to a maximum of twice the initial award units. ) Tj ET Q q 0 0 0 rg BT 438.96 608.30 Td (The weighted average fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.30 Td (value for these performance units was determined using a Monte Carlo simulation model incorporating the following weighted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.30 Td (average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 565.80 349.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 565.80 164.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 536.80 349.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 536.80 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 536.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 536.80 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 536.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.00 536.80 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.00 508.80 349.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.00 508.80 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.00 508.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 508.80 52.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 506.00 508.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 510.00 508.80 52.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 550.8 m 450 550.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 550.8 m 454 550.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 550.8 m 506 550.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 550.8 m 562 550.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 536.8 m 450 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 536.8 m 506 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 550.8 m 562 550.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 536.8 m 562 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 536.8 m 450 536.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 536.8 m 506 536.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.50 555.03 Td (Fiscal) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.50 541.03 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.50 541.03 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.50 541.03 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 527.37 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.00 527.48 Td (0.96) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.50 527.48 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 527.37 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 527.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 527.37 Td (0.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 527.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 513.37 Td (Volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.00 513.48 Td (28.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.50 513.48 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 513.37 Td (36.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 513.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 513.37 Td (37.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 513.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.50 499.37 Td (Weighted average fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 400.50 499.48 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.00 499.48 Td (70.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.50 499.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 499.37 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 499.37 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 483.30 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 471.30 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 471.30 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 49.50 459.30 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 49.50 439.30 Td (Stock Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 419.30 Td (The following table shows total stock-based compensation expense and related tax benefits included in the Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.30 Td (Statements of Operations for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.40 407.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.40 407.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.40 407.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.40 407.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.84 407.30 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.84 407.30 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 376.80 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 376.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 376.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 376.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 376.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 376.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 348.80 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 348.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 348.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 348.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 348.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 348.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 320.80 324.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.50 320.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 320.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 320.80 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 320.80 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.50 320.80 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 373.5 376.8 m 433.5 376.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 376.8 m 497.5 376.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 376.8 m 561.5 376.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 376.8 m 433.5 376.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 376.8 m 497.5 376.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 376.8 m 561.5 376.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 320.8 m 433.5 320.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 320.8 m 497.5 320.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 320.8 m 561.5 320.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 320.8 m 433.5 320.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 307.8 m 433.5 307.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 305.8 m 433.5 305.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 320.8 m 497.5 320.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 307.8 m 497.5 307.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 305.8 m 497.5 305.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 320.8 m 561.5 320.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 307.8 m 561.5 307.8 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501.5 305.8 m 561.5 305.8 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.00 380.88 Td (Fiscal 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.00 380.88 Td (Fiscal 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 380.88 Td (Fiscal 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 367.37 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 367.48 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 367.48 Td (2,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 367.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 367.37 Td (2,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 367.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 367.37 Td (2,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 353.37 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 353.48 Td (1,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 353.37 Td (2,033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 353.37 Td (1,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 339.37 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 339.48 Td (13,756) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 339.37 Td (14,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 339.37 Td (14,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 325.37 Td (Income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.80 325.53 Td (\(4,247) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 429.65 325.48 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 325.42 Td (\(5,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 325.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 325.42 Td (\(5,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 325.37 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.00 311.48 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 311.48 Td (13,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.00 311.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 311.37 Td (13,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.00 311.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 311.37 Td (13,599) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 287.30 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 287.30 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 401.86 287.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.86 287.30 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.42 287.30 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.31 287.30 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.59 287.30 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.48 287.30 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.30 Td (was amortized into income during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.79 275.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.79 275.30 Td (, which includes amounts capitalized in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.18 275.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.18 275.30 Td ( and amounts carried over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.30 Td (from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.59 263.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.59 263.30 Td (. ) Tj ET Q q 0 0 0 rg BT 120.41 263.30 Td (T) Tj ET Q q 0 0 0 rg BT 125.82 263.30 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 448.78 263.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.78 263.30 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.33 263.30 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.22 263.30 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.50 263.30 Td ($2.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.30 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 251.30 Td ( was amortized into income during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.18 251.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.18 251.30 Td (, which includes amounts capitalized in fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.57 251.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.57 251.30 Td ( and amounts carried ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.30 Td (over from fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.86 239.30 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.86 239.30 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 49.50 227.30 Td (for those equity awards expected to vest.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 207.30 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 207.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 207.30 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 207.30 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 49.50 195.30 Td (the Company's stock plans but not yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.46 195.30 Td ($19.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.35 195.30 Td (, net of estimated forfeitures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.69 195.30 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.59 195.30 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.30 Td (This cost will be amortized on a straight-line basis over a weighted-average period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.53 183.30 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.03 183.30 Td (years and will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.30 Td (adjusted for subsequent changes in estimated forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 151.30 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 151.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 151.30 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 151.30 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 531.71 151.30 Td ( but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.30 Td (yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.89 139.30 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.78 139.30 Td (. ) Tj ET Q q 0 0 0 rg BT 242.60 139.30 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 49.50 127.30 Td (period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 127.30 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.07 127.30 Td ( month.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 107.30 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 95.30 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 83.30 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 83.30 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 83.30 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.66 83.30 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.66 83.30 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.09 83.30 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.09 83.30 Td ( we have not generated any excess tax benefits as cash flows from financing activities. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 63.30 Td (Stock ) Tj ET Q q 0 0 0 rg BT 75.34 63.30 Td (A) Tj ET Q q 0 0 0 rg BT 81.82 63.30 Td (wards ) Tj ET Q q 0 0 0 rg BT 109.88 63.30 Td (Activity) Tj ET Q endstream endobj 201 0 obj <>] /Rotate 0 /Contents 202 0 R>> endobj 202 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (12. EMPLOYEE ST) Tj ET Q q 0 0 0 rg BT 136.78 712.60 Td (OCK ) Tj ET Q q 0 0 0 rg BT 161.50 712.60 Td (A) Tj ET Q q 0 0 0 rg BT 167.62 712.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.51 712.60 Td (ARD, 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 33.60 Td (98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.66 695.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.66 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.66 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.66 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.09 695.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.09 695.10 Td ( year) Tj ET Q q 0 0 0 rg BT 212.60 695.10 Td (-end, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.47 695.10 Td (86,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.97 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.97 695.10 Td (107,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.47 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.91 695.10 Td (270,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.41 695.10 Td ( shares subject to stock options outstanding. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.16 683.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.16 683.10 Td ( year) Tj ET Q q 0 0 0 rg BT 125.66 683.10 Td (-end, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.15 683.10 Td ($86,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.65 683.10 Td ( shares outstanding were at a weighted average exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.70 683.10 Td ($30.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.20 683.10 Td ( per share and had a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (weighted average remaining contractual term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.86 671.10 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.36 671.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 651.10 Td (The following table summarizes our time-based and performance restricted stock units activity for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.86 651.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.86 651.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.86 651.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.86 651.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 639.10 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 620.60 245.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 620.60 91.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 620.60 4.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 620.60 93.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 541.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 541.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 541.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 541.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 541.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 541.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 511.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 511.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 511.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 511.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 511.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 481.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 481.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 481.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 481.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 481.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 481.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 481.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 481.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 451.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 451.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 451.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 451.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 451.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 451.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 451.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 451.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 421.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 421.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 421.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 421.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 421.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 421.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 421.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 421.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 391.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 391.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 391.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 391.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 391.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 391.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 391.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 391.60 45.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 89.00 361.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.00 361.60 43.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 361.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.00 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 361.60 44.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.00 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.00 361.60 45.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 592.6 m 377 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 592.6 m 381 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 592.6 m 425 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 592.6 m 473 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 592.6 m 477 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 592.6 m 522 592.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 541.6 m 377 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 541.6 m 425 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 541.6 m 473 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 541.6 m 522 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 541.6 m 377 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 541.6 m 425 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 481.6 m 377 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 481.6 m 473 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 481.6 m 377 481.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 421.6 m 377 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 421.6 m 473 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 421.6 m 377 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 361.6 m 377 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 361.6 m 377 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 347.6 m 377 347.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 345.6 m 377 345.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 361.6 m 473 361.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 347.6 m 473 347.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 345.6 m 473 345.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.40 604.83 Td (Time Based Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.30 596.83 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.20 604.83 Td (Performance Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.30 596.83 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.50 553.83 Td (Number) Tj ET Q q 0 0 0 rg BT 364.80 553.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.50 545.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 359.80 545.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.25 577.83 Td (W) Tj ET Q q 0 0 0 rg BT 393.81 577.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.55 569.83 Td (A) Tj ET Q q 0 0 0 rg BT 393.73 569.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.05 561.83 Td (Grant ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.50 553.83 Td (Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.65 545.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 399.17 545.83 Td ( ) Tj ET Q q 0 0 0 rg BT 401.02 545.83 Td (V) Tj ET Q q 0 0 0 rg BT 406.06 545.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.00 553.83 Td (Number) Tj ET Q q 0 0 0 rg BT 460.30 553.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.00 545.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 455.30 545.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.75 569.83 Td (Weighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.05 561.83 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.55 553.83 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.15 545.83 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 531.27 Td (Nonvested stock at September 29, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 531.27 Td (440) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 531.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 531.27 Td (47.81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 531.27 Td (152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 531.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 531.27 Td (57.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 516.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 516.27 Td (273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 516.27 Td (44.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 516.27 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 516.27 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 501.27 Td (V) Tj ET Q q 0 0 0 rg BT 97.61 501.27 Td (ested ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 120.66 505.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 501.32 Td (\(254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 501.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 501.27 Td (43.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 501.32 Td (\(28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 501.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 501.27 Td (49.50) Tj ET 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ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 456.27 Td (226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 456.27 Td (65.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 456.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 456.27 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 441.27 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 441.32 Td (\(275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 441.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 441.27 Td (47.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 441.32 Td (\(33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 441.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 441.27 Td (43.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 426.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 426.32 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 426.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 426.27 Td (56.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.80 426.32 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 426.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 426.27 Td (46.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 411.27 Td (Nonvested stock at September 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 411.27 Td (390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 411.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 411.27 Td (58.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 411.27 Td (229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 411.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 411.27 Td (61.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 396.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 396.27 Td (237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 396.27 Td (64.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 396.27 Td (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 396.27 Td (70.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 381.27 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.80 381.32 Td (\(219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 381.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 381.27 Td (53.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 381.32 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 381.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 381.27 Td (53.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 366.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 366.32 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 366.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 366.27 Td (59.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 366.32 Td (\(43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 366.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 366.27 Td (53.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 351.27 Td (Nonvested stock at October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 351.27 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 351.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 351.27 Td (65.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 351.27 Td (199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 351.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 351.27 Td (67.09) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (__________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 314.10 Td (Service-based restricted stock vested during each fiscal year) Tj ET Q q 0 0 0 rg BT 325.68 314.10 Td (. Performance awards and units included at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.62 314.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.95 314.10 Td ( of tar) Tj ET Q q 0 0 0 rg BT 547.64 314.10 Td (get ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.10 Td (goal; under the terms of the awards, the recipient may earn between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 302.10 Td (0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.33 302.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.77 302.10 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.10 302.10 Td ( of the award.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 282.10 Td (Restricted Stock Units are converted into the right to receive common stock upon vesting; prior to issuance, the Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (permits the employee holders to satisfy their tax withholding requirements by net settlement, whereby the Company withholds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (a portion of the shares to cover the applicable taxes based on the fair market value of the Company's stock at the vesting date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (The number of shares withheld to cover tax payments was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.99 246.10 Td (91,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.49 246.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.27 246.10 Td (fiscal 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.42 246.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.42 246.10 Td (1) Tj ET Q q 0 0 0 rg BT 379.05 246.10 Td (18,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.55 246.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.33 246.10 Td (fiscal 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.48 246.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.92 246.10 Td (95,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.42 246.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.20 246.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 234.10 Td (; tax payments made were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.40 234.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.30 234.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.30 234.10 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.19 234.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.63 234.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.52 234.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 400.18 234.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 214.10 Td (At fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.16 214.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.16 214.10 Td (year) Tj ET Q q 0 0 0 rg BT 149.66 214.10 Td (-end, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.43 214.10 Td (5,514,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.43 214.10 Td ( options or restricted stock units were available for future grant under all plans. ) Tj ET Q q 0 0 0 rg BT 530.39 214.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.66 202.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.66 202.10 Td (year) Tj ET Q q 0 0 0 rg BT 113.16 202.10 Td (-end, all outstanding stock options have been issued under plans approved by our shareholders.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (13. OTHER INCOME \(EXPENSE\), NET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 142.10 Td (Other income \(expense\) includes other) Tj ET Q q 0 0 0 rg BT 228.24 142.10 Td (-net which is comprised of the following \(in thousands\):) Tj ET Q endstream endobj 203 0 obj <> 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 49.50 673.50 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 673.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 673.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 673.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 673.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 673.50 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 643.50 323.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 643.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 432.50 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 436.50 643.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 643.50 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 372.5 687.5 m 432.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 687.5 m 436.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 687.5 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 500.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 687.5 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 372.5 687.5 m 432.5 687.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 673.5 m 432.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 687.5 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 436.5 673.5 m 496.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 687.5 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 500.5 673.5 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 372.5 673.5 m 432.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 673.5 m 496.5 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 673.5 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 372.5 628.5 m 432.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 628.5 m 496.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 628.5 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 372.5 628.5 m 432.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 614.5 m 432.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 612.5 m 432.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 628.5 m 496.5 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 614.5 m 496.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 612.5 m 496.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500.5 628.5 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 500.5 614.5 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 500.5 612.5 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 456.50 691.73 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 394.00 677.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 677.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 677.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 663.17 Td (Foreign exchange loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.00 663.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.80 663.23 Td (\(1,396) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 663.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 663.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.80 663.22 Td (\(2,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 663.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 663.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 663.22 Td (\(3,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 663.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 648.17 Td (Gain \(loss\) on deferred compensation investments, net \(Note12\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.30 648.23 Td (\(351) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 648.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 648.17 Td (4,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 648.17 Td (2,123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 633.17 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.65 633.18 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 633.17 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 633.17 Td (170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 618.17 Td (Other - net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.00 618.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.80 618.23 Td (\(1,726) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 618.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 618.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 618.17 Td (2,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.00 618.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 618.22 Td (\(1,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 618.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 590.00 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.04 590.00 Td (T) Tj ET Q q 0 0 0 rg BT 114.97 590.00 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 570.00 Td (The provision for \(benefit from\) income taxes on income \(loss\) before income taxes consists of the following \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.00 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 519.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 519.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 519.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 519.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 519.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 519.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 489.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 489.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 489.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 489.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 489.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 489.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 459.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 459.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 459.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 459.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 459.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 429.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 429.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 429.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 429.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 429.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 429.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 399.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 399.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 399.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 399.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 399.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 399.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 369.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 369.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 369.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 369.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 369.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 369.50 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 359 533.5 m 424 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 533.5 m 428 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 533.5 m 493 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 533.5 m 497 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 533.5 m 562 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 533.5 m 424 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 519.5 m 424 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 533.5 m 493 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 519.5 m 493 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 533.5 m 562 533.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 519.5 m 562 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 459.5 m 424 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 459.5 m 493 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 459.5 m 562 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 459.5 m 424 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 459.5 m 493 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 459.5 m 562 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 384.5 m 424 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 369.5 m 424 369.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 384.5 m 493 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 369.5 m 493 369.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 384.5 m 562 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 369.5 m 562 369.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 355.5 m 424 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 353.5 m 424 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 355.5 m 493 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 353.5 m 493 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 355.5 m 562 355.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 353.5 m 562 353.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.00 538.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 537.73 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 524.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 523.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 523.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 523.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 509.17 Td (Currently payable:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 509.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 509.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 509.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 494.17 Td (Federal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 494.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 494.23 Td (\(932) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 494.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 494.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 494.17 Td (2,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 494.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 494.22 Td (\(1,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 494.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 479.17 Td (State) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 479.18 Td (108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 479.17 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 479.22 Td (\(141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 479.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 464.17 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 464.18 Td (32,189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 464.17 Td (26,885) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 464.17 Td (27,152) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 449.18 Td (31,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 449.17 Td (29,469) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 449.17 Td (25,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 434.17 Td (Deferred:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 434.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 434.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 434.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 419.17 Td (Federal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 419.23 Td (\(4,327) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 419.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 419.22 Td (\(2,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 419.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 419.22 Td (\(4,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 419.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 404.17 Td (State) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 404.23 Td (\(200) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 404.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 404.22 Td (\(111) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 404.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.80 404.22 Td (\(16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 404.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 389.17 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 389.23 Td (\(3,679) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 389.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 389.22 Td (\(6,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 389.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 389.22 Td (\(4,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 389.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 394.30 374.23 Td (\(8,206) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 374.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.30 374.22 Td (\(9,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 374.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 374.22 Td (\(8,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 374.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 359.17 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 359.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 359.18 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 359.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 359.17 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 359.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 359.17 Td (17,141) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 335.00 Td (The components of income \(loss\) before income taxes consist of \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 288.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 288.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 288.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 288.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 288.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 288.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 258.50 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 258.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 258.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 258.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 258.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 258.50 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 358.5 302.5 m 423.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 302.5 m 427.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 302.5 m 492.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 302.5 m 496.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 302.5 m 561.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 302.5 m 423.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 288.5 m 423.5 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 302.5 m 492.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 288.5 m 492.5 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 302.5 m 561.5 302.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 288.5 m 561.5 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 288.5 m 423.5 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 288.5 m 492.5 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 288.5 m 561.5 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 258.5 m 423.5 258.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 244.5 m 423.5 244.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 242.5 m 423.5 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 258.5 m 492.5 258.5 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 427.5 242.5 m 492.5 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 258.5 m 561.5 258.5 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 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 242.5 m 561.5 242.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 307.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 306.73 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 293.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 292.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 292.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 292.73 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 278.17 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 278.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.80 278.23 Td (\(13,293) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.65 278.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 278.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 278.17 Td (821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 278.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 278.22 Td (\(7,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 278.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 263.17 Td (Foreign) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 263.18 Td (112,861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 263.17 Td (78,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 263.17 Td (90,638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 248.17 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 248.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 248.18 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 248.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 248.17 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 248.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 248.17 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 224.00 Td (The reconciliation of the income tax expense at the U.S. Federal statutory rate \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.44 224.00 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.77 224.00 Td (\) to actual income tax expense is as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.00 Td (follows \(in thousands\):) Tj ET Q endstream endobj 205 0 obj <>] /Rotate 0 /Contents 206 0 R>> endobj 206 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (100) 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 (2015) 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 (Federal statutory tax expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 663.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 663.18 Td (34,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 663.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 663.17 Td (27,727) 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 (29,223) 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 (635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 648.17 Td (841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 648.17 Td (534) 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 382.15 633.18 Td (\(10,558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 633.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 633.22 Td (\(6,974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 633.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 633.22 Td (\(8,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 633.17 Td (\)) 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 (2,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 618.17 Td (1,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 618.17 Td (1,292) 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 399.65 603.18 Td (\(38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 603.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 603.17 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 603.22 Td (\(143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 603.17 Td (\)) 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 (\(2,979) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 588.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 588.22 Td (\(1,797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 588.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 588.22 Td (\(4,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 588.17 Td (\)) 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 (\(133) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 573.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 573.22 Td (\(778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 573.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 573.22 Td (\(257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 573.17 Td (\)) 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 (\(39) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 558.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 558.22 Td (\(51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 558.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 558.22 Td (\(407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 558.17 Td (\)) 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 399.65 543.18 Td (\(38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 543.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 543.22 Td (\(289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 543.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 543.22 Td (\(160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 543.17 Td (\)) 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 394.65 528.18 Td (\(690) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 413.00 528.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 528.17 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 528.22 Td (\(591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 528.17 Td (\)) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 513.18 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 513.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 513.17 Td (20,113) 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 (17,141) 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 (23.3) 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 (25.4) 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 (20.5) 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 (The ef) Tj ET Q q 0 0 0 rg BT 99.13 474.00 Td (fective tax rate on income before income taxes for fiscal 2015 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.14 474.00 Td (23.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.97 474.00 Td ( was lower than the statutory rate of 35.0%. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.00 Td (This was primarily due to dif) Tj ET Q q 0 0 0 rg BT 165.69 462.00 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.00 Td (rates including South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the benefit of federal research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.00 Td (and development tax credits including renewal of the federal research and development tax credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 508.58 438.00 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.00 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 144.56 426.00 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.00 Td (deductible for tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 394.00 Td (Coherent Korea received the final approval for a High-T) Tj ET Q q 0 0 0 rg BT 296.81 394.00 Td (ech tax exemption in 2013 from the South Korean authorities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.00 Td (it is subject to capital contribution limitations. ) Tj ET Q q 0 0 0 rg BT 235.96 382.00 Td (The impact of this tax exemption decreased South Korean income taxes by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.00 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 370.00 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.65 370.00 Td ( \(or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.31 370.00 Td ($0.1) Tj ET Q q 0 0 0 rg BT 192.44 370.00 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.44 370.00 Td ( per diluted share\) in fiscal 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.84 370.00 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.74 370.00 Td ( \(or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.40 370.00 Td ($0.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.90 370.00 Td ( per diluted share\) in fiscal 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.00 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 358.00 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.33 358.00 Td ( \(or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.99 358.00 Td ($0.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.49 358.00 Td ( per diluted share\) in fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 288.71 358.00 Td (The remaining High-T) Tj ET Q q 0 0 0 rg BT 378.54 358.00 Td (ech tax exemption benefit is minimal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.00 Td (should be fully utilized in fiscal 2016 and Coherent Korea should be subject to South Korea income tax at that time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 326.00 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 512.08 326.00 Td (fective from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.00 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 462.52 314.00 Td (The tax holiday is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.00 Td (conditional upon our meeting certain revenue, business spending and employment thresholds. ) Tj ET Q q 0 0 0 rg BT 426.37 302.00 Td (Although Coherent Singapore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.00 Td (had income in fiscal 2015, 2014 and 2013, these amounts were of) Tj ET Q q 0 0 0 rg BT 311.76 290.00 Td (fset by a loss carryforward from fiscal 2012 and therefore we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.00 Td (did not realize a cumulative benefit for the Singapore tax holiday) Tj ET Q q 0 0 0 rg BT 309.31 278.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 258.00 Td (The significant components of deferred tax assets and liabilities were \(in thousands\):) 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (101) Tj ET Q 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 (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 677.73 Td (2014) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 648.18 Td (31,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 648.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 648.17 Td (29,060) 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 (53,386) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 633.17 Td (65,643) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 618.17 Td (Deferred service revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 618.18 Td (2,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 618.17 Td (2,097) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 603.17 Td (Inventory capitalization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 603.18 Td (1,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 603.17 Td (1,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 588.17 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 588.18 Td (6,128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 588.17 Td (6,573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 573.17 Td (Competent authority offset to transfer pricing tax reserves) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 573.18 Td (4,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 573.17 Td (4,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 558.17 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 558.18 Td (2,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 558.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 543.17 Td (Total gross deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 543.18 Td (101,298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 543.17 Td (109,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 528.17 Td (Valuation allowance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.80 528.23 Td (\(15,556) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 488.65 528.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 528.22 Td (\(14,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 528.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 513.17 Td (Total net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 513.18 Td (85,742) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 513.17 Td (94,914) 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 (20,859) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 483.17 Td (20,759) 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 (5,117) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 468.17 Td (9,579) 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 (2,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 453.17 Td (1,357) 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 478.65 438.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 438.17 Td (5,012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 423.17 Td (Total gross deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 423.18 Td (28,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 423.17 Td (36,707) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 408.18 Td (57,537) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 408.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 408.17 Td (58,207) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 381.00 Td (In determining our fiscal 2015 and 2014 tax provisions under ) Tj ET Q q 0 0 0 rg BT 320.68 381.00 Td (ASC Subtopic740, we calculated the deferred tax assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.00 Td (and liabilities for each separate tax entity) Tj ET Q q 0 0 0 rg BT 213.23 369.00 Td (. ) Tj ET Q q 0 0 0 rg BT 218.04 369.00 Td (W) Tj ET Q q 0 0 0 rg BT 226.68 369.00 Td (e then considered a number of factors including the positive and negative evidence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.00 Td (regarding the realization of our deferred tax assets to determine whether a valuation allowance should be recognized with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.00 Td (respect to our deferred tax assets. ) Tj ET Q q 0 0 0 rg BT 185.10 345.00 Td (W) Tj ET Q q 0 0 0 rg BT 193.73 345.00 Td (e determined that a valuation allowance was appropriate for a portion of the deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.00 Td (assets of our California and certain state research and development tax credits, foreign tax attributes and foreign net operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.00 Td (losses at fiscal 2015 and 2014year) Tj ET Q q 0 0 0 rg BT 188.71 321.00 Td (-ends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 301.00 Td (During fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.49 301.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.49 301.00 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 392.83 301.00 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 395.33 301.00 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.83 301.00 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.72 301.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 301.00 Td ($15.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.39 301.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.00 Td (primarily due to the reduced ability to utilize California and certain state research and development tax credits. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 269.00 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 61.50 222.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 222.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 222.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 222.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.50 192.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 192.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 192.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 192.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 61.50 162.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 162.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.50 162.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 162.50 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 439.5 236.5 m 504.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504.5 236.5 m 508.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 236.5 m 573.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 236.5 m 504.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 222.5 m 504.5 222.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 236.5 m 573.5 236.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 222.5 m 573.5 222.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 222.5 m 504.5 222.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 222.5 m 573.5 222.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 162.5 m 504.5 162.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 162.5 m 573.5 162.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 162.5 m 504.5 162.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 148.5 m 504.5 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 146.5 m 504.5 146.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 162.5 m 573.5 162.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 148.5 m 573.5 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 146.5 m 573.5 146.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 241.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.00 240.73 Td (Fiscal year-end) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 64.00 227.18 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.50 226.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 532.50 226.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 212.17 Td (Current deferred income tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.00 212.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 212.18 Td (28,118) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.00 212.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 212.17 Td (27,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 197.17 Td (Current deferred income tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 492.30 197.23 Td (\(9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 197.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.30 197.22 Td (\(32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 569.65 197.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 182.17 Td (Non-current deferred income tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 182.18 Td (32,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 182.17 Td (37,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 167.17 Td (Non-current deferred income tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.80 167.23 Td (\(2,708) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 500.65 167.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.80 167.22 Td (\(6,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 569.65 167.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 152.17 Td (Net deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.00 152.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 473.15 152.18 Td (57,537) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.00 152.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.15 152.17 Td (58,207) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 128.00 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 128.00 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 76.50 108.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 108.00 Td (Foreign gross net operating loss carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.05 108.00 Td ($18.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.94 108.00 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.71 108.00 Td ($17.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 108.00 Td ( have no expiration date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 96.00 Td (and of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.21 96.00 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.10 96.00 Td ( are scheduled to expire beginning in fiscal year 2030. ) Tj ET Q q 0 0 0 rg BT 425.64 96.00 Td (A) Tj ET Q q 0 0 0 rg BT 432.31 96.00 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 84.00 Td ($4.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.39 84.00 Td ( has been provided against the foreign gross net operating loss carryforwards in certain jurisdictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 72.00 Td (since the recovery of the carryforwards are uncertain. California gross net operating loss carryforwards are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.76 72.00 Td ($14.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 60.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.39 60.00 Td ( and are scheduled to expire in fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.82 60.00 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.82 60.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.60 60.00 Td (2032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.60 60.00 Td (. ) Tj ET Q q 0 0 0 rg BT 362.42 60.00 Td (The tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.02 60.00 Td ($6.6 ) 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 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 695.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.39 695.10 Td ( of the state gross net operating loss carryforwards will be credited to additional paid-in-capital when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 683.10 Td (recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 663.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 663.10 Td (Federal gross capital loss carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.22 663.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.11 663.10 Td ( are scheduled to expire in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.71 663.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.71 663.10 Td (. State gross ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 651.10 Td (capital loss carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.12 651.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.01 651.10 Td ( are scheduled to expire in fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.61 651.10 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.61 651.10 Td (. No valuation allowance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 639.10 Td (recorded against the federal gross capital loss and the state gross capital loss carryforwards since we anticipate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 627.10 Td (that it is more likely than not we will be able to utilize the capital loss in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 607.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 607.10 Td (Federal R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.83 607.10 Td ($24.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.72 607.10 Td ( are scheduled to expire in fiscal years 2024 to 2035. ) Tj ET Q q 0 0 0 rg BT 521.81 607.10 Td (The tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 595.10 Td (benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.34 595.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.23 595.10 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 103.50 583.10 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 399.21 583.10 Td ($22.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.10 583.10 Td ( have no expiration date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 571.10 Td (The tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.11 571.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.00 571.10 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 103.50 559.10 Td (additional paid-in-capital when recognized. ) Tj ET Q q 0 0 0 rg BT 279.27 559.10 Td (A) Tj ET Q q 0 0 0 rg BT 285.94 559.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.23 559.10 Td ($14.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.12 559.10 Td (, before federal benefit, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 547.10 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 103.50 535.10 Td (uncertain. Other states R&D credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.53 535.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.42 535.10 Td ( are scheduled to expire in fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.91 535.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.91 535.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 523.10 Td (2030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.50 523.10 Td (. ) Tj ET Q q 0 0 0 rg BT 127.95 523.10 Td (A) Tj ET Q q 0 0 0 rg BT 134.62 523.10 Td ( valuation allowance totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.91 523.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.81 523.10 Td (, before federal benefit, has been recorded against certain state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 511.10 Td (R&D credit carryforwards since the recovery of the carryforwards is uncertain.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 491.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 491.10 Td (Federal foreign tax credit carryforwards of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.75 491.10 Td ($19.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.64 491.10 Td ( are scheduled to expire in fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.13 491.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.13 491.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.91 491.10 Td (2023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.91 491.10 Td (. ) Tj ET Q q 0 0 0 rg BT 543.73 491.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 479.10 Td (tax benefit relating to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.06 479.10 Td ($1) Tj ET Q q 0 0 0 rg BT 261.69 479.10 Td (1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.58 479.10 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 103.50 467.10 Td (to additional paid-in-capital when recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 447.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 447.10 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 49.50 435.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 341.01 435.10 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 49.50 423.10 Td (major state jurisdictions, the years prior to 2006 and 201) Tj ET Q q 0 0 0 rg BT 275.19 423.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 332.85 423.10 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 49.50 411.10 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 519.45 411.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (various tax authorities may choose to audit tax returns for tax years beyond the statute of limitations period due to significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (tax attribute carryforwards from those prior years, making adjustments only to carryforward attributes. ) Tj ET Q q 0 0 0 rg BT 462.24 387.10 Td (W) Tj ET Q q 0 0 0 rg BT 470.88 387.10 Td (e believe that we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (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 72.00 355.10 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 355.10 Td ( reconciliation of the change in gross unrecognized tax benefits, excluding interest and penalties, is as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 307.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 307.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 307.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 307.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 307.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 307.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 279.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 279.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 279.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 279.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 279.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 279.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 251.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 251.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 251.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 251.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 251.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 251.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 223.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 223.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 223.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 223.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 223.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 223.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 195.60 309.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 359.00 195.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.00 195.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.00 195.60 65.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.00 195.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.00 195.60 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 359 319.6 m 424 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 319.6 m 428 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 319.6 m 493 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493 319.6 m 497 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 319.6 m 562 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 319.6 m 424 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 307.6 m 424 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 319.6 m 493 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 307.6 m 493 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 319.6 m 562 319.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 307.6 m 562 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 307.6 m 424 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 307.6 m 493 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 307.6 m 562 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 181.60000000000002 m 424 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 181.60000000000002 m 493 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 181.60000000000002 m 562 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 181.60000000000002 m 424 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 168.60000000000002 m 424 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 166.60000000000002 m 424 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 181.60000000000002 m 493 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 168.60000000000002 m 493 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428 166.60000000000002 m 493 166.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 181.60000000000002 m 562 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 168.60000000000002 m 562 168.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497 166.60000000000002 m 562 166.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 204.00 323.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 323.83 Td (Fiscal year-end) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 311.68 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.00 311.68 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 311.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.00 311.68 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.17 Td (Balance as of the beginning of the year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 298.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 298.28 Td (21,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 298.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 298.17 Td (21,378) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 298.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 298.17 Td (25,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 284.17 Td (Tax positions related to current year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 270.17 Td (Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 270.28 Td (311) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 270.17 Td (346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 270.17 Td (1,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 256.17 Td (Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 256.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 256.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 256.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 242.17 Td (Tax positions related to prior year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 228.17 Td (Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.15 228.28 Td (855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 228.17 Td (235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 228.17 Td (1,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.50 214.17 Td (Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 214.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 214.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 214.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 200.17 Td (Settlements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 410.15 200.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 200.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 200.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 186.17 Td (Lapses in statutes of limitations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 401.80 186.33 Td (\(521) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 186.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.80 186.22 Td (\(66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.15 186.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 186.22 Td (\(6,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 186.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 172.17 Td (Balance as of end of year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.50 172.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.65 172.28 Td (22,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.50 172.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 172.17 Td (21,893) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.50 172.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 172.17 Td (21,378) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 148.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.94 148.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.65 148.10 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 49.50 136.10 Td ($24.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 136.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.16 136.10 Td ($16.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.05 136.10 Td (, if recognized, would af) Tj ET Q q 0 0 0 rg BT 297.61 136.10 Td (fect our ef) Tj ET Q q 0 0 0 rg BT 338.51 136.10 Td (fective tax rate. Our total gross unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.10 Td (benefit was classified as long-term taxes payable in the consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 387.81 124.10 Td (W) Tj ET Q q 0 0 0 rg BT 396.45 124.10 Td (e include interest and penalties related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.10 Td (unrecognized tax benefits within the provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 308.88 112.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.32 112.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.03 112.10 Td (, the total amount of gross interest and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.10 Td (penalties accrued was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.18 100.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.07 100.10 Td ( and it is classified as long-term taxes payable in the consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 514.36 100.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.10 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.76 88.10 Td (, we had accrued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.45 88.10 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.34 88.10 Td ( for the gross interest and penalties and it is classified as long-term taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 76.10 Td (payable in the consolidated balance sheets.) Tj ET Q endstream endobj 211 0 obj <>] /Rotate 0 /Contents 212 0 R>> endobj 212 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (14. INCOME ) Tj ET Q q 0 0 0 rg BT 109.54 712.60 Td (T) Tj ET Q q 0 0 0 rg BT 115.47 712.60 Td (AXES \(continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 695.10 Td (Management believes that it has adequately provided for any adjustments that may result from tax examinations. ) Tj ET Q q 0 0 0 rg BT 524.80 695.10 Td (W) Tj ET Q q 0 0 0 rg BT 533.44 695.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. It is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (reasonably possible that certain federal, foreign and state tax matters may be concluded in the next 12 months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 651.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 651.10 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 375.36 651.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.06 651.10 Td (, for our major tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 639.10 Td (jurisdictions is:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 606.60 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 606.60 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 578.60 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 578.60 104.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 550.60 408.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 457.50 550.60 104.00 -14.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 611.17 Td (United StatesFederal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.70 611.17 Td (2011forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 597.17 Td (United StatesVarious States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.70 597.17 Td (2011forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 583.17 Td (Netherlands) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 583.17 Td (2010forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 569.17 Td (Germany) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 569.17 Td (2006forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 555.17 Td (Japan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 555.17 Td (2009forward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 541.17 Td (United Kingdom) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.30 541.17 Td (2014forward) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 513.10 Td (15. SEGMENT) Tj ET Q q 0 0 0 rg BT 114.33 513.10 Td ( ) Tj ET Q q 0 0 0 rg BT 116.28 513.10 Td (AND GEOGRAPHIC INFORMA) Tj ET Q q 0 0 0 rg BT 260.53 513.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 493.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.14 493.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 123.93 493.10 Td (ganized into two reportable operating segments: Specialty Lasers and Systems \("SLS"\) and Commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (Lasers and Components \("CLC"\). ) Tj ET Q q 0 0 0 rg BT 187.19 481.10 Td (This segmentation reflects the go-to-market strategies for various products and markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (While both segments work to deliver cost-ef) Tj ET Q q 0 0 0 rg BT 227.05 469.10 Td (fective solutions, SLS develops and manufactures configurable, advanced-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (performance products lar) Tj ET Q q 0 0 0 rg BT 149.83 457.10 Td (gely serving the microelectronics, scientific research and government programs and OEM components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 168.18 445.10 Td (The size and complexity of many of our SLS products require service to be performed at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (customer 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 479.18 433.10 Td (fered in set ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (configurations. ) Tj ET Q q 0 0 0 rg BT 112.08 421.10 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 49.50 409.10 Td (repairs are based upon advanced replacement and depot \(i.e., factory\) repair) Tj ET Q q 0 0 0 rg BT 352.41 409.10 Td (. CLC's primary markets include materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 380.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.14 380.10 Td (e have identified SLS and CLC as operating segments for which discrete financial information is available. Both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (units have dedicated engineering, manufacturing, product business management and product line management functions. ) Tj ET Q q 0 0 0 rg BT 534.91 368.10 Td (A) Tj ET Q q 0 0 0 rg BT 541.58 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (small portion of our outside revenue is attributable to projects and recently developed products for which a segment has not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (been determined. ) Tj ET Q q 0 0 0 rg BT 120.68 344.10 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 487.90 344.10 Td (, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (corporate costs as described below) Tj ET Q q 0 0 0 rg BT 187.69 332.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 315.10 Td (Our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 181.12 315.10 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 49.50 303.10 Td (performance of the segments and decides how to allocate resources to the segments. Income from operations is the measure of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (profit and loss that our CODM uses to assess performance and make decisions. ) Tj ET Q q 0 0 0 rg BT 367.77 291.10 Td (As assets are not a measure used to assess the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (performance of the company by the CODM, asset information is not tracked or compiled by segment and is not available to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (reported in our disclosures. Income from operations represents the net sales less the cost of sales and direct operating expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (incurred within the operating segments as well as allocated expenses such as shared sales and manufacturing costs. ) Tj ET Q q 0 0 0 rg BT 511.40 255.10 Td (W) Tj ET Q q 0 0 0 rg BT 520.04 255.10 Td (e do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (allocate to our operating segments certain operating expenses which we manage separately at the corporate level. ) Tj ET Q q 0 0 0 rg BT 504.41 243.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (unallocated costs include stock-based compensation and corporate functions \(certain research and development, management, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (finance, legal and human resources\) and are included in the results below under Corporate and other in the reconciliation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (operating results. Management does not consider unallocated Corporate and other costs in its measurement of segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (performance.) Tj ET Q endstream endobj 213 0 obj <>] /Rotate 0 /Contents 214 0 R>> endobj 214 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 695.10 Td (The following table provides net sales and income from operations for our operating segments a reconciliation of our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (income from operations to net income \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 644.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 644.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 644.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 644.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 644.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 644.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 614.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 614.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 614.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 614.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 584.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 584.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 584.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 584.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 584.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 584.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 554.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 554.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 554.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 554.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 524.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 524.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 524.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 524.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 494.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 494.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 494.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 494.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.00 464.60 294.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.00 464.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.00 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 410.00 464.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.00 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.00 464.60 63.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 658.6 m 406 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 658.6 m 410 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 658.6 m 472 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472 658.6 m 476 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 658.6 m 539 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 658.6 m 406 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 644.6 m 406 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 658.6 m 472 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 644.6 m 472 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 658.6 m 539 658.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 644.6 m 539 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 599.6 m 406 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 585.6 m 406 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 583.6 m 406 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 599.6 m 472 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 585.6 m 472 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 583.6 m 472 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 599.6 m 539 599.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 585.6 m 539 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 583.6 m 539 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 583.6 m 406 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 585.6 m 406 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 583.6 m 472 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 585.6 m 472 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 583.6 m 539 583.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 585.6 m 539 585.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 524.6 m 406 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 524.6 m 472 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 524.6 m 539 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 524.6 m 406 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 524.6 m 472 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 524.6 m 539 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 494.6 m 406 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 494.6 m 472 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 494.6 m 539 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 494.6 m 406 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 494.6 m 472 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 494.6 m 539 494.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 464.6 m 406 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 464.6 m 472 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 464.6 m 539 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 464.6 m 406 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 450.6 m 406 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 448.6 m 406 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 464.6 m 472 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 450.6 m 472 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 448.6 m 472 448.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 464.6 m 539 464.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 450.6 m 539 450.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476 448.6 m 539 448.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 663.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.00 662.83 Td (Fiscal) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 649.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.50 648.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 648.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.00 648.83 Td (2013) 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 52.5 632.9333984375 m 91.6552734375 632.9333984375 l s q 0 0 0 rg BT 52.50 634.27 Td (Net sales:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 634.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 634.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 634.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 619.27 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 619.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 619.28 Td (559,593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 619.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 619.27 Td (565,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 619.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 619.27 Td (571,644) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 604.27 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 604.28 Td (242,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 604.27 Td (229,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 604.27 Td (238,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 589.27 Td (Total net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 589.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 589.28 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 589.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 589.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 589.27 Td (810,126) 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 52.5 572.9333984375 m 151.357421875 572.9333984375 l s q 0 0 0 rg BT 52.50 574.27 Td (Income from operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 574.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 574.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 574.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 559.27 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 559.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 559.28 Td (133,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 559.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 559.27 Td (117,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 559.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 559.27 Td (115,931) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 544.27 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 544.28 Td (9,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 544.27 Td (2,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 544.27 Td (12,411) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 529.27 Td (Corporate and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.30 529.33 Td (\(41,886) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 529.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.30 529.32 Td (\(43,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 529.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.30 529.32 Td (\(43,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 529.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.27 Td (Total income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 514.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.65 514.28 Td (100,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 514.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 514.27 Td (76,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 514.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 514.27 Td (84,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 499.27 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 376.30 499.33 Td (\(1,179) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.15 499.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 499.27 Td (2,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.30 499.32 Td (\(1,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 499.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 484.27 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.65 484.28 Td (99,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 484.27 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 484.27 Td (83,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 469.27 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.65 469.28 Td (23,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 469.27 Td (20,113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 469.27 Td (17,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 454.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.50 454.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.65 454.28 Td (76,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 454.27 Td (59,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.50 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 454.27 Td (66,355) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (Geographic Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 410.10 Td (Our foreign operations consist primarily of manufacturing facilities and sales of) Tj ET Q q 0 0 0 rg BT 392.67 410.10 Td (fices in Europe and ) Tj ET Q q 0 0 0 rg BT 472.09 410.10 Td (Asia-Pacific. Sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (marketing and customer service activities are conducted through sales subsidiaries throughout the world. Geographic sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (information for fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 386.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.53 386.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.53 386.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.53 386.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.97 386.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.97 386.10 Td ( is based on the location of the end customer) Tj ET Q q 0 0 0 rg BT 399.42 386.10 Td (. Geographic long-lived asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (information presented below is based on the physical location of the assets at the end of each year) Tj ET Q q 0 0 0 rg BT 440.21 374.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 354.10 Td (Sales to unaf) Tj ET Q q 0 0 0 rg BT 124.97 354.10 Td (filiated customers are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 308.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 308.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 308.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 308.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 308.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 308.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 278.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 278.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 278.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 278.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 278.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 278.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 248.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 248.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 248.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 248.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 248.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 248.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 218.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 218.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 218.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 218.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 218.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 218.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 188.60 309.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 358.50 188.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 423.50 188.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 188.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 188.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 188.60 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 358.5 321.6 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 423.5 321.6 m 427.5 321.6 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 492.5 321.6 m 496.5 321.6 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 358.5 308.6 m 423.5 308.6 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 427.5 308.6 m 492.5 308.6 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 496.5 308.6 m 561.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 308.6 m 423.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 293.6 m 423.5 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 308.6 m 492.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 293.6 m 492.5 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 308.6 m 561.5 308.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 293.6 m 561.5 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 188.60000000000002 m 423.5 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 188.60000000000002 m 492.5 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 188.60000000000002 m 561.5 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 188.60000000000002 m 423.5 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 188.60000000000002 m 492.5 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 188.60000000000002 m 561.5 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 173.60000000000002 m 423.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 159.60000000000002 m 423.5 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358.5 157.60000000000002 m 423.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 173.60000000000002 m 492.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 159.60000000000002 m 492.5 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 157.60000000000002 m 492.5 157.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 173.60000000000002 m 561.5 173.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 159.60000000000002 m 561.5 159.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 157.60000000000002 m 561.5 157.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 326.28 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.50 325.83 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 52 311.580078125 m 77.34765625 311.580078125 l s q 0 0 0 rg BT 52.00 312.83 Td (SALES) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.50 312.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 312.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 312.83 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 298.27 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 298.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 298.28 Td (213,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 298.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 298.27 Td (202,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 298.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 298.27 Td (188,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 283.27 Td (Foreign countries:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 268.27 Td (South Korea) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 268.28 Td (195,589) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 268.27 Td (167,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 268.27 Td (185,737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 253.27 Td (Japan) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 253.28 Td (135,674) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 253.27 Td (124,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 253.27 Td (156,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 238.27 Td (Germany) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 238.28 Td (75,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 238.27 Td (86,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 238.27 Td (93,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 223.27 Td (Europe, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 223.28 Td (53,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 223.27 Td (64,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 223.27 Td (58,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 208.27 Td (Asia-Pacific, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 208.28 Td (85,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 208.27 Td (98,760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 208.27 Td (73,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 193.27 Td (Rest of World) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 392.15 193.28 Td (43,629) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 193.27 Td (50,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 193.27 Td (53,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 178.27 Td (Total foreign countries sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 178.28 Td (588,977) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 178.27 Td (592,434) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 178.27 Td (621,922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 163.27 Td (Total sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.00 163.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 387.15 163.28 Td (802,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 163.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 163.27 Td (794,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 163.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 163.27 Td (810,126) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 139.10 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 49.50 127.10 Td (region, are as follows \(in thousands\):) Tj ET Q endstream endobj 215 0 obj <>] /Rotate 0 /Contents 216 0 R>> endobj 216 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 752.60 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 752.60 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 752.60 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 148.20 732.60 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 184.42 732.60 Td (T) Tj ET Q q 0 0 0 rg BT 190.91 732.60 Td (O CONSOLIDA) Tj ET Q q 0 0 0 rg BT 261.01 732.60 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 340.19 732.60 Td ( ST) Tj ET Q q 0 0 0 rg BT 354.18 732.60 Td (A) Tj ET Q q 0 0 0 rg BT 360.66 732.60 Td (TEMENTS \(Continued\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 712.60 Td (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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (105) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 674.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 674.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 674.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 674.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 644.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 644.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 644.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 644.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 614.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 614.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 614.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 614.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 584.50 378.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 427.50 584.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 584.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.50 584.50 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 427.5 674.5 m 492.5 674.5 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 496.5 674.5 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 427.5 674.5 m 492.5 674.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 659.5 m 492.5 659.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 674.5 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 496.5 659.5 m 561.5 659.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 599.5 m 492.5 599.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 599.5 m 561.5 599.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 599.5 m 492.5 599.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 599.5 m 561.5 599.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 584.5 m 492.5 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 570.5 m 492.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 568.5 m 492.5 568.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 584.5 m 561.5 584.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 570.5 m 561.5 570.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 568.5 m 561.5 568.5 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 467.70 691.73 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 52 677.480078125 m 134.91796875 677.480078125 l s q 0 0 0 rg BT 52.00 678.73 Td (LONG-LIVED ASSETS) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 678.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 678.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 664.17 Td (United States) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 664.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 664.18 Td (82,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 664.17 Td (82,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 649.17 Td (Foreign countries:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 634.17 Td (Germany) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 634.18 Td (33,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 634.17 Td (38,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 619.17 Td (Europe, other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.15 619.18 Td (2,993) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 619.17 Td (2,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 604.17 Td (Asia-Pacific) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 604.18 Td (11,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 604.17 Td (13,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 589.17 Td (Total foreign countries long-lived assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 589.18 Td (48,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 589.17 Td (55,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 574.17 Td (Total long-lived assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.00 574.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 574.18 Td (131,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 574.17 Td (137,522) 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 (Major) Tj ET Q q 0 0 0 rg BT 76.53 550.00 Td ( Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.00 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 530.00 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.01 530.00 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.45 530.00 Td ( customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.02 530.00 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.35 530.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.35 530.00 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.68 530.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.12 530.00 Td (14%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.45 530.00 Td ( of consolidated revenue during fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.73 530.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.73 530.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.73 530.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.73 530.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.17 530.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.17 530.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.00 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 518.00 Td (. ) Tj ET Q q 0 0 0 rg BT 101.98 518.00 Td (This customer purchased primarily from our SLS segment.) Tj ET Q endstream endobj 217 0 obj <>] /Rotate 0 /Contents 218 0 R>> endobj 218 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 33.60 Td (106) 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 (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.83 675.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.27 675.25 Td (September27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.53 675.25 Td ( are as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 663.25 Td (thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 623.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 623.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 623.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 623.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 623.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 623.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 623.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 623.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 623.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 593.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 593.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 593.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 593.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 593.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 593.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 593.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 593.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 593.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 563.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 563.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 563.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 563.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 563.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 563.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 563.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 563.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 563.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 533.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 533.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 533.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 533.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 533.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 533.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 533.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 533.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 533.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 503.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 503.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 503.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 503.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 503.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 503.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 503.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 503.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 503.75 18.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 473.75 185.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 234.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 294.50 473.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 473.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.50 473.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 473.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 473.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 473.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 473.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 543.50 473.75 18.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 234.5 623.75 m 294.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 623.75 m 377.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.5 623.75 m 460.5 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 623.75 m 543.5 623.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.75 635.98 Td (First) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 250.05 627.98 Td (Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.75 635.98 Td (Second) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.05 627.98 Td (Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.95 635.98 Td (Third) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.05 627.98 Td (Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.00 635.98 Td (Fourth) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.05 627.98 Td (Quarter) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 613.43 Td (Fiscal 2015:) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 598.42 Td (200,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 598.42 Td (203,721) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 598.42 Td (188,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 598.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 598.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 598.42 Td (209,622) 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 (82,319) 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 (83,304) 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 (78,782) 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 (90,994) 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 (17,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 568.42 Td (18,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 568.42 Td (13,264) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 568.42 Td (27,302) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 553.42 Td (0.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 553.42 Td (0.75) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 553.42 Td (0.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 553.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 553.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 553.42 Td (1.11) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 538.42 Td (0.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 538.42 Td (0.74) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 538.42 Td (0.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 538.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 538.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 538.42 Td (1.10) 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 2014:) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 508.42 Td (193,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 508.42 Td (199,222) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 508.42 Td (196,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 508.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 508.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 508.42 Td (205,344) 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 (77,546) 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 (80,665) 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 (74,261) 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 (80,918) 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 (11,703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.15 478.42 Td (15,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 478.42 Td (12,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.15 478.42 Td (19,097) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 463.42 Td (0.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 463.42 Td ($) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 463.42 Td (0.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 463.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 463.42 Td (0.77) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 448.42 Td (0.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 448.42 Td ($) 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 ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 448.42 Td (0.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.00 448.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 448.42 Td (0.76) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 219 0 obj <>] /Rotate 0 /Contents 220 0 R>> endobj 220 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 31.60 Td (107) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.15 742.25 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 290.70 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 297.19 742.25 Td (O EXHIBITS ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 723.75 51.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 723.75 13.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 723.75 448.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 679.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 679.75 13.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 679.75 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 649.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 649.75 13.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 649.75 448.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 609.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 609.75 13.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 609.75 448.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 559.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 559.75 13.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 559.75 448.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 519.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 519.75 13.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 113.50 519.75 448.00 -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 49.5 694.75 m 100.5 694.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 113.5 694.75 m 561.5 694.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 714.98 Td (Sequentially) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 706.98 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 698.98 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.30 698.98 Td (Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 685.32 Td (10.25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 685.32 Td (Form of Performance RSU ) Tj ET Q q 0 0 0 rg BT 225.99 685.32 Td (Agreement under the 201) Tj ET Q q 0 0 0 rg BT 327.52 685.32 Td (1 Equity Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 670.32 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 670.32 Td (Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 655.32 Td (23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 655.32 Td (Consent of Independent Registered Public Accounting Firm) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 640.32 Td (24.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 640.32 Td (Power of Attorney \(see signature page\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 625.32 Td (31.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 625.32 Td (Certification of Chief Executive Officer pursuant to Exchange Act Rule13a-14\(a\)/15d-14\(a\), as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 615.32 Td (pursuant to Section302 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 600.32 Td (31.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 600.32 Td (Certification of Chief Financial Officer pursuant to Exchange Act Rule13a-14\(a\)/15d-14\(a\), as adopted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 590.32 Td (pursuant to Section302 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 575.32 Td (32.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 575.32 Td (Certification of Chief Executive Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 565.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 550.32 Td (32.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 550.32 Td (Certification of Chief Financial Officer pursuant to 18 U.S.C. Section1350, as adopted pursuant to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 540.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 524.42 Td (_________________________________________________________) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 487.25 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 50.00 475.25 Td (index of such exhibits.) Tj ET Q endstream endobj 221 0 obj <> /View <>>>>> endobj 222 0 obj <> /View <>>>>> endobj 223 0 obj <> endobj 224 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>|;