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d 1 J 1 j 3 M 117 475.9833984375 m 338.9140625 475.9833984375 l s q 0 0 1 rg BT 117.00 477.32 Td (Notes to Condensed Consolidated Financial Statements) Tj ET Q 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 53.00 464.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 464.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 464.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 464.32 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 53 449.9833984375 m 81.3251953125 449.9833984375 l s q 0 0 1 rg BT 53.00 451.32 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 1.00 Tf ET q 0 0 0 rg BT 97.00 450.51 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 117 449.9833984375 m 474.314453125 449.9833984375 l s q 0 0 1 rg BT 117.00 451.32 Td (Management's Discussion and ) Tj ET Q q 0 0 1 rg BT 240.17 451.32 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q 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 53.00 438.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 438.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 438.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 438.32 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 53 423.9833984375 m 81.3251953125 423.9833984375 l s q 0 0 1 rg BT 53.00 425.32 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 1.00 Tf ET q 0 0 0 rg BT 97.00 424.51 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 117 423.9833984375 m 358.62109375 423.9833984375 l s q 0 0 1 rg BT 117.00 425.32 Td (Quantitative and Qualitative Disclosures ) Tj ET Q q 0 0 1 rg BT 281.40 425.32 Td (About Market 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 q 0 0 0 rg BT 53.00 412.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 412.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 412.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 412.32 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 53 397.9833984375 m 81.3251953125 397.9833984375 l s q 0 0 1 rg BT 53.00 399.32 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 1.00 Tf ET q 0 0 0 rg BT 97.00 398.51 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 117 397.9833984375 m 215.3154296875 397.9833984375 l s q 0 0 1 rg BT 117.00 399.32 Td (Controls 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 q 0 0 0 rg BT 53.00 386.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 386.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 386.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 386.32 Td () Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 53 371.91259765625 m 84.66015625 371.91259765625 l s q 0 0 1 rg BT 53.00 373.48 Td (PartII.) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 1.00 Tf ET q 0 0 0 rg BT 97.00 372.47 Td () Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 117 371.91259765625 m 197.087890625 371.91259765625 l s q 0 0 1 rg BT 117.00 373.48 Td (Other) Tj ET Q q 0 0 1 rg BT 142.37 373.48 Td ( Information) Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F2 1.00 Tf ET q 0 0 0 rg BT 559.00 372.47 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 360.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 360.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 360.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 360.32 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 53 345.9833984375 m 81.3251953125 345.9833984375 l s q 0 0 1 rg BT 53.00 347.32 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 1.00 Tf ET q 0 0 0 rg BT 97.00 346.51 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 117 345.9833984375 m 191.140625 345.9833984375 l s q 0 0 1 rg BT 117.00 347.32 Td (Legal 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 q 0 0 0 rg BT 53.00 334.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 334.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 334.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 334.32 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 53 319.9833984375 m 88.546875 319.9833984375 l s q 0 0 1 rg BT 53.00 321.32 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 1.00 Tf ET q 0 0 0 rg BT 97.00 320.51 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 117 319.9833984375 m 167.2783203125 319.9833984375 l s q 0 0 1 rg BT 117.00 321.32 Td (Risk Factors) Tj ET Q 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 53.00 308.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 308.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 308.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 308.32 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 53 293.9833984375 m 81.3251953125 293.9833984375 l s q 0 0 1 rg BT 53.00 295.32 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 1.00 Tf ET q 0 0 0 rg BT 97.00 294.51 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 117 293.9833984375 m 150.3349609375 293.9833984375 l s q 0 0 1 rg BT 117.00 295.32 Td (Exhibits) Tj ET Q 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 53.00 282.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 282.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 282.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 282.32 Td () Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 53 267.91259765625 m 98.380859375 267.91259765625 l s q 0 0 1 rg BT 53.00 269.48 Td (Signatur) Tj ET Q q 0 0 1 rg BT 90.05 269.48 Td (es) Tj ET Q BT /F2 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 554 618.9833984375 m 559 618.9833984375 l s q 0 0 1 rg BT 554.00 620.32 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 554 579.9833984375 m 559 579.9833984375 l s q 0 0 1 rg BT 554.00 581.32 Td (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 554 540.9833984375 m 559 540.9833984375 l s q 0 0 1 rg BT 554.00 542.32 Td (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 554 501.9833984375 m 559 501.9833984375 l s q 0 0 1 rg BT 554.00 503.32 Td (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 554 475.9833984375 m 559 475.9833984375 l s q 0 0 1 rg BT 554.00 477.32 Td (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 549 449.9833984375 m 559 449.9833984375 l s q 0 0 1 rg BT 549.00 451.32 Td (24) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 423.9833984375 m 559 423.9833984375 l s q 0 0 1 rg BT 549.00 425.32 Td (36) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 397.9833984375 m 559 397.9833984375 l s q 0 0 1 rg BT 549.00 399.32 Td (38) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 345.9833984375 m 559 345.9833984375 l s q 0 0 1 rg BT 549.00 347.32 Td (39) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 319.9833984375 m 559 319.9833984375 l s q 0 0 1 rg BT 549.00 321.32 Td (39) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 293.9833984375 m 559 293.9833984375 l s q 0 0 1 rg BT 549.00 295.32 Td (54) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 267.9833984375 m 559 267.9833984375 l s q 0 0 1 rg BT 549.00 269.32 Td (55) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 7 0 obj <>] /Rotate 0 /Contents 8 0 R>> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (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 (3) 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 363.76953125 740.68505859375 l s q 0 0 0 rg BT 50.00 742.25 Td (SPECIAL) Tj ET Q q 0 0 0 rg BT 92.79 742.25 Td ( NOTE REGARDING FOR) Tj ET Q q 0 0 0 rg BT 211.62 742.25 Td (W) Tj ET Q q 0 0 0 rg BT 220.51 742.25 Td (ARD-LOOKING ST) Tj ET Q q 0 0 0 rg BT 308.39 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 314.87 742.25 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (This quarterly report contains certain forward-looking statements within the meaning of Section27A) Tj ET Q q 0 0 0 rg BT 453.23 718.25 Td ( of the Securities ) Tj ET Q q 0 0 0 rg BT 522.66 718.25 Td (Act of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (1933 and Section21E of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 249.39 706.25 Td (Act of 1934. ) Tj ET Q q 0 0 0 rg BT 301.61 706.25 Td (All statements included in or incorporated by reference in this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (quarterly report, other than statements of historical fact, are forward-looking statements. ) Tj ET Q q 0 0 0 rg BT 405.25 694.25 Td (These statements are generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (accompanied by words such as trend, may) Tj ET Q q 0 0 0 rg BT 231.78 682.25 Td (, will, could, would, should, expect, plan, anticipate, rely) Tj ET Q q 0 0 0 rg BT 529.32 682.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (believe, estimate, predict, intend, potential, continue, "outlook," forecast or the negative of such terms, or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (comparable terminology) Tj ET Q q 0 0 0 rg BT 147.37 658.25 Td (, including without limitation statements made under Our Strategy) Tj ET Q q 0 0 0 rg BT 416.39 658.25 Td (, discussions regarding our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (bookings and in Management) Tj ET Q q 0 0 0 rg BT 175.81 646.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 244.98 646.25 Td (Analysis of Financial Condition and Results of Operations. Forward-looking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (statements also include the assumptions underlying or relating to any of the foregoing statements. ) Tj ET Q q 0 0 0 rg BT 442.42 634.25 Td (Actual results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (Coherent,Inc. \(referred to herein as the Company) Tj ET Q q 0 0 0 rg BT 248.44 622.25 Td (, we, our or Coherent\) may dif) Tj ET Q q 0 0 0 rg BT 369.89 622.25 Td (fer significantly from those anticipated in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (forward-looking statements as a result of various factors, including those discussed in the sections captioned Our Strategy) Tj ET Q q 0 0 0 rg BT 541.17 610.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Risk Factors, Key Performance Indicators, as well as any other cautionary language in this quarterly report. ) Tj ET Q q 0 0 0 rg BT 499.57 598.25 Td (All forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (looking statements included in the document are based on information available to us on the date hereof. ) Tj ET Q q 0 0 0 rg BT 470.81 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 479.44 586.25 Td (e undertake no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (obligation to update these forward-looking statements as a result of events or circumstances or to reflect the occurrence of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (unanticipated events or non-occurrence of anticipated events. ) Tj ET Q endstream endobj 9 0 obj <>] /Rotate 0 /Contents 10 0 R>> endobj 10 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 50.00 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 742.25 Td (I. FINANCIAL) Tj ET Q q 0 0 0 rg BT 145.96 742.25 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 196.60 742.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 1. 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365.5 634.75 m 369.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 634.75 m 429.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 634.75 m 365.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 613.75 m 365.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 634.75 m 429.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 613.75 m 429.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 613.75 m 365.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 583.75 m 365.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 583.75 m 429.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 583.75 m 429.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 509.75 m 365.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 509.75 m 429.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 509.75 m 365.5 509.75 l s 0 0 0 RG /GS0 gs 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362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 360.75 m 365.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 375.75 m 429.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 362.75 m 429.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 360.75 m 429.5 360.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 58.00 637.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.60 638.98 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.75 625.98 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.00 617.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.75 625.98 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.00 617.98 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 603.43 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 603.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 603.43 Td (190,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 603.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 603.42 Td (200,615) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 588.43 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 588.43 Td (106,377) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 588.42 Td (118,296) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 573.43 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 573.43 Td (83,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 573.42 Td (82,319) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 559.43 Td (Operating expenses:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 557.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 426.00 557.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 544.42 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 544.43 Td (19,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 544.42 Td (19,173) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 529.42 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 529.43 Td (36,774) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 529.42 Td (38,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 514.42 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 514.43 Td (701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 514.42 Td (696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 499.42 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 499.43 Td (56,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 499.42 Td (58,010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 484.43 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 484.43 Td (27,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 484.42 Td (24,309) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 470.43 Td (Other income \(expense\):) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 468.47 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 455.42 Td (Interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 455.43 Td (240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 455.42 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 440.42 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.30 440.48 Td (\(15) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 440.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 440.47 Td (\(11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 440.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 425.42 Td (Othernet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.30 425.48 Td (\(447) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 425.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 425.47 Td (\(770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 425.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 410.42 Td (Total other expense, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.30 410.48 Td (\(222) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 410.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 410.47 Td (\(685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 410.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 395.43 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 395.43 Td (27,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 395.42 Td (23,624) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 380.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 380.43 Td (6,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 380.42 Td (6,194) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 366.43 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 366.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 366.43 Td (20,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 366.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 366.32 Td (17,430) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 338.43 Td (Net income per share:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 336.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 426.00 336.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 323.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 323.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 323.43 Td (0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 323.42 Td (0.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 308.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 308.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 308.43 Td (0.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 308.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 308.42 Td (0.69) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 279.43 Td (Shares used in computation:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 277.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 426.00 277.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 264.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 264.43 Td (23,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 264.42 Td (24,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 249.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 249.43 Td (24,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 249.42 Td (25,197) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.00 233.25 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 156.65 221.25 Td (See ) Tj ET Q q 0 0 0 rg BT 172.85 221.25 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 552.6 m 360.5 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 552.6 m 424.5 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 537.6 m 360.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 523.6 m 360.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 521.6 m 360.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 537.6 m 424.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 523.6 m 424.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 521.6 m 424.5 521.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 674.17 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 325.60 674.83 Td (Three Months Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 654.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.75 661.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 653.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.75 661.83 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.00 653.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 627.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.00 627.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 627.28 Td (20,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 627.27 Td (17,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 612.27 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 200.73 616.80 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.00 612.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 597.27 Td ( ) Tj ET Q q 0 0 0 rg BT 57.82 597.27 Td (T) Tj ET Q q 0 0 0 rg BT 63.58 597.27 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 202.99 601.80 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.80 597.33 Td (\(8,506) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.65 597.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.80 597.32 Td (\(14,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 597.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 583.17 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 274.62 587.70 Td (\(3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.30 582.33 Td (\(30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.65 582.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 582.27 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 567.27 Td (Changes in unrealized gains \(losses\) on available-for) Tj ET Q q 0 0 0 rg BT 268.90 567.27 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 557.27 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 148.86 561.80 Td (\(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 557.28 Td (138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.30 557.32 Td (\(73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 557.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 542.27 Td ( Other comprehensive loss, net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.80 542.33 Td (\(8,398) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.65 542.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.80 542.32 Td (\(14,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 542.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 527.27 Td (Comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.00 527.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 527.28 Td (11,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 527.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 527.27 Td (3,213) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 499.10 Td (Reclassification adjustments were not significant during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.38 499.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.70 499.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.20 499.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.79 499.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.23 499.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.82 499.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 475.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 475.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.91 475.10 Td (ax benefit of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.94 475.10 Td ($346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.94 475.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.38 475.10 Td ($752) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.38 475.10 Td ( was provided on translation adjustments during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.79 475.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.10 475.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.60 475.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.20 475.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 463.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.08 463.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 203.75 463.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 439.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.91 439.10 Td (ax expense \(benefit\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.31 439.10 Td ($\(18\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.97 439.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.41 439.10 Td ($217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.41 439.10 Td ( was provided on net gain \(loss\) on derivative instruments during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.13 439.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 427.10 Td (months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.33 427.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.83 427.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.42 427.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.86 427.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.45 427.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 345.11 427.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.10 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 403.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.91 403.10 Td (ax expense \(benefit\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.31 403.10 Td ($80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.31 403.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.75 403.10 Td ($\(39\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.41 403.10 Td ( was provided on changes in unrealized gains \(losses\) on available-for) Tj ET Q q 0 0 0 rg BT 508.67 403.10 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 391.10 Td (securities for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.64 391.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.95 391.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.45 391.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.05 391.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.49 391.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.07 391.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 436.73 391.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 343.10 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 343.10 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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 (6) 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 186.75 730.25 Td (CONDENSED CONSOLIDA) Tj ET Q q 0 0 0 rg BT 311.86 730.25 Td (TED BALANCE SHEETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.65 718.25 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 220.98 718.25 Td (Unaudited; in thousands, except par value\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 686.75 368.00 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BT 494.00 647.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 647.42 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 632.42 Td (Short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 632.43 Td (193,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 632.42 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.42 Td (Accounts receivablenet of allowances of $2,733 and $3,015, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 617.43 Td (144,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 617.42 Td (142,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 602.42 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 602.43 Td (158,006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 602.42 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 587.42 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 587.43 Td (32,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 587.42 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 572.42 Td (Total current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 572.43 Td (671,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 572.42 Td (652,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 557.42 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 557.43 Td (99,732) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 557.42 Td (102,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 542.42 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 542.43 Td (100,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 542.42 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 527.42 Td (Intangible assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 527.43 Td (20,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 527.42 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 512.42 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 512.43 Td (93,871) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 512.42 Td (89,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 497.42 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 497.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 497.43 Td (985,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 497.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 497.42 Td (968,947) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 125.10 468.43 Td (LIABILITIES AND STOCKHOLDERS EQUITY) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 466.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 466.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 453.42 Td (Current liabilities:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 451.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 451.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 438.42 Td (Short-term borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 438.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 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378.42 Td (122,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 363.42 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 363.43 Td (51,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 363.42 Td (49,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 348.42 Td (Commitments and contingencies \(Note 11\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 333.42 Td (Stockholders equity:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 331.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 331.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 318.42 Td (Common stock, Authorized500,000 shares, par value $.01 per share:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 316.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 316.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 303.42 Td (Outstanding24,190 shares and 23,970 shares, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 303.43 Td (241) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 303.42 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 288.42 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 288.43 Td (130,537) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 288.42 Td (128,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 273.42 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.80 273.48 Td (\(17,911) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 273.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 273.47 Td (\(9,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 273.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 258.42 Td (Retained earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 258.43 Td (697,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 258.42 Td (677,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 243.42 Td (Total stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 243.43 Td (810,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 243.42 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 228.42 Td (Total liabilities and stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 228.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 228.43 Td (985,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 228.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 228.42 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 200.25 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 200.25 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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0.9333333333333333 1 rg /GS0 gs 417.50 353.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 353.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 353.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 333.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 333.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 333.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 333.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 313.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 313.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 313.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 313.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 293.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 293.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 293.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 293.75 70.00 -10.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 694.75 m 487.5 694.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 694.75 m 491.5 694.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 694.75 m 561.5 694.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 673.75 m 487.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 673.75 m 561.5 673.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 503.75 m 487.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 503.75 m 561.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 503.75 m 487.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 503.75 m 561.5 503.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 433.75 m 487.5 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 433.75 m 561.5 433.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 353.75 m 487.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 343.75 m 487.5 343.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 353.75 m 561.5 353.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 333.75 m 487.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 343.75 m 561.5 343.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 333.75 m 561.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 333.75 m 491.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 333.75 m 561.5 333.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 313.75 m 487.5 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 313.75 m 561.5 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 313.75 m 487.5 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 304.75 m 487.5 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 302.75 m 487.5 302.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 313.75 m 561.5 313.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 304.75 m 561.5 304.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 302.75 m 561.5 302.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 303.75 m 487.5 303.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 303.75 m 561.5 303.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 52.00 697.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.60 698.98 Td (Thr) Tj ET Q q 0 0 0 rg BT 465.79 698.98 Td (ee Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 52.00 676.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.75 685.98 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 677.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.75 685.98 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 677.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 665.88 Td (Cash flows from operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 655.75 Td (Net income) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 655.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 655.88 Td (20,286) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 655.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 655.75 Td (17,430) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 645.75 Td (Adjustments to reconcile net income to net cash provided by operating activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 635.75 Td (Depreciation and amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 635.88 Td (6,385) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 635.75 Td (6,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 625.75 Td (Amortization of intangible assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 625.88 Td (2,092) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 625.75 Td (2,180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 615.75 Td (Deferred income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 615.88 Td (\(3,492) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 615.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 615.75 Td (6,988) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 605.75 Td (Stock-based compensation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 605.88 Td (3,745) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 605.75 Td (4,390) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 595.75 Td (Other non-cash expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.30 595.88 Td (165) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 595.75 Td (360) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 585.75 Td (Changes in assets and liabilities, net of effect of acquisitions:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 575.75 Td (Accounts receivable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 575.88 Td (\(3,646) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 575.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 575.75 Td (2,760) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 565.75 Td (Inventories) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 565.88 Td (\(3,713) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 565.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 565.75 Td (4,715) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 555.75 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 555.88 Td (\(3,551) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 555.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 555.75 Td (\(8,650) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 555.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 545.75 Td (Other assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 545.88 Td (\(1,047) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 545.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 543.60 545.75 Td (\(658) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 545.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 535.75 Td (Accounts payable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 535.88 Td (\(4,252) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 535.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 535.75 Td (\(5,358) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 535.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 525.75 Td (Income taxes payable/receivable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 525.88 Td (4,575) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 525.75 Td (\(7,277) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 525.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 515.75 Td (Other current liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 515.88 Td (\(5,128) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 515.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 515.75 Td (7,145) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 505.75 Td (Other long-term liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 505.88 Td (1,843) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 505.75 Td (816) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 495.75 Td (Net cash provided by operating activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 495.88 Td (14,262) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 495.75 Td (31,051) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 475.88 Td (Cash flows from investing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 465.75 Td (Purchases of property and equipment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 465.88 Td (\(4,765) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 465.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 465.75 Td (\(5,138) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 465.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 455.75 Td (Proceeds from dispositions of property and equipment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.30 455.88 Td (50) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 455.75 Td (568) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 445.75 Td (Purchases of available-for-sale securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 445.88 Td (\(50,151) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 445.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 445.75 Td (\(43,780) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 445.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 435.75 Td (Proceeds from sales and maturities of available-for-sale securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 435.88 Td (51,254) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 435.75 Td (77,370) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 425.75 Td (Net cash provided by \(used in\) investing activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 425.88 Td (\(3,612) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 425.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 425.75 Td (29,020) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 405.88 Td (Cash flows from financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 395.75 Td (Short-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 395.88 Td (17,160) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 395.75 Td (11,542) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 385.75 Td (Repayments of short-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 385.88 Td (\(12,160) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 385.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 385.75 Td (\(11,542) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 385.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 375.75 Td (Issuance of common stock under employee stock option and purchase plans) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 375.88 Td (3,521) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 375.75 Td (3,437) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 365.75 Td (Repurchase of common stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.30 365.88 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 365.75 Td (\(17,298) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 365.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 355.75 Td (Net settlement of restricted common stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 355.88 Td (\(5,317) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 355.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 355.75 Td (\(5,200) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 355.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 345.75 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 345.88 Td (3,204) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 345.75 Td (\(19,061) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 345.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 335.88 Td (Effect of exchange rate changes on cash and cash equivalents) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 335.88 Td (\(2,118) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 335.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 335.75 Td (\(2,807) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 335.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 325.88 Td (Net increase in cash and cash equivalents) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 325.88 Td (11,736) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 325.75 Td (38,203) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 315.88 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 315.88 Td (130,607) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 315.75 Td (91,217) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 305.88 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 305.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 305.88 Td (142,343) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 305.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 305.75 Td (129,420) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 285.88 Td (Noncash investing and financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 275.75 Td ( Unpaid property and equipment purchases) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 275.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 275.88 Td (1,499) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.00 275.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 546.30 275.88 Td (807) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 250.25 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 250.25 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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 (8) 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 142.65 730.25 Td (NOTES ) Tj ET Q q 0 0 0 rg BT 178.87 730.25 Td (T) Tj ET Q q 0 0 0 rg BT 185.36 730.25 Td (O CONDENSED CONSOLIDA) Tj ET Q q 0 0 0 rg BT 320.75 730.25 Td (TED FINANCIAL) Tj ET Q q 0 0 0 rg BT 399.93 730.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 413.92 730.25 Td (A) Tj ET Q q 0 0 0 rg BT 420.40 730.25 Td (TEMENTS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 281.55 718.25 Td (\(Unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 706.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (1. BASIS OF) Tj ET Q q 0 0 0 rg BT 112.42 694.25 Td ( PRESENT) Tj ET Q q 0 0 0 rg BT 160.30 694.25 Td (A) Tj ET Q q 0 0 0 rg BT 166.78 694.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.25 Td (The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rulesand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.25 Td (regulations of the Securities and Exchange Commission \(SEC\). Certain information and footnote disclosures normally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td (included in financial statements prepared in accordance with accounting principles generally accepted in the United States ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.25 Td (of ) Tj ET Q q 0 0 0 rg BT 78.28 634.25 Td (America \(GAAP\) have been condensed or omitted pursuant to such rulesand regulations. ) Tj ET Q q 0 0 0 rg BT 447.99 634.25 Td (These interim condensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.25 Td (consolidated financial statements and notes thereto should be read in conjunction with the Coherent,Inc. \(referred to herein ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.25 Td (as the Company) Tj ET Q q 0 0 0 rg BT 136.22 610.25 Td (, we, our) Tj ET Q q 0 0 0 rg BT 188.57 610.25 Td (, us or Coherent\) condensed consolidated financial statements and notes thereto filed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.25 Td (on Form10-K for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.84 598.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.54 598.25 Td (. In the opinion of management, all adjustments necessary for a fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.25 Td (presentation of financial condition and results of operation as of and for the periods presented have been made and include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (only normal recurring adjustments. Interim results of operations are not necessarily indicative of results to be expected for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.25 Td (the year or any other interim periods. Our fiscal year ends on the Saturday closest to September30 and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.59 562.25 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.70 562.25 Td ( fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.25 Td (quarters include 13 weeks of operations in each fiscal year presented. Fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.98 550.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.98 550.25 Td ( includes 52 weeks and fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 538.25 Td ( includes 53 weeks. Certain reclassifications have been made to the prior period amounts to conform to the current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.25 Td (period) Tj ET Q q 0 0 0 rg BT 96.33 526.25 Td (s presentation related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.79 526.25 Td ($28.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.68 526.25 Td ( reclassification of current deferred income tax assets to non-current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (deferred income tax assets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 490.25 Td (2. RECENT) Tj ET Q q 0 0 0 rg BT 110.99 490.25 Td ( ) Tj ET Q q 0 0 0 rg BT 112.94 490.25 Td (ACCOUNTING ST) Tj ET Q q 0 0 0 rg BT 196.38 490.25 Td (ANDARDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 478.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 466.25 Td (Adoption of New ) Tj ET Q q 0 0 0 rg BT 144.17 466.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 205.93 466.25 Td (onouncement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 442.25 Td (In November 2015, the F) Tj ET Q q 0 0 0 rg BT 170.07 442.25 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 70.00 430.25 Td (entity shall classify deferred tax liabilities and assets as noncurrent amounts.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 375.75 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.25 430.25 Td (The new guidance supersedes ) Tj ET Q q 0 0 0 rg BT 499.32 430.25 Td (ASC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 418.25 Td (740-10-45-5 which required the valuation allowance for a particular tax jurisdiction be allocated between current and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 406.25 Td (noncurrent deferred tax assets for that tax jurisdiction on a pro rata basis. ) Tj ET Q q 0 0 0 rg BT 364.17 406.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 496.99 406.25 Td (fective for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 394.25 Td (fiscal year beginning October 2, 2017. ) Tj ET Q q 0 0 0 rg BT 225.88 394.25 Td (W) Tj ET Q q 0 0 0 rg BT 234.52 394.25 Td (e elected to early adopt the standard retrospectively in the first quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 382.25 Td (2016, which resulted in the reclassification of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.95 382.25 Td ($28.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.84 382.25 Td ( from current deferred income tax assets to non-current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 370.25 Td (deferred income tax assets as of October 3, 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 346.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 138.89 346.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 200.65 346.25 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 322.25 Td (In January 2016, the F) Tj ET Q q 0 0 0 rg BT 158.96 322.25 Td (ASB issued amended guidance that revises the recognition and measurement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 310.25 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 121.48 310.25 Td (The new guidance requires equity investments \(except those accounted for under the equity method of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 298.25 Td (accounting, or those that result in consolidation of the investee\) to be measured at fair value with changes in fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 286.25 Td (recognized in net income, requires public business entities to use the exit price notion when measuring the fair value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 274.25 Td (financial instruments for disclosure purposes, requires separate presentation of financial assets and financial liabilities by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 262.25 Td (measurement category and form of financial asset, and eliminates the requirement for public business entities to disclose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 250.25 Td (the method\(s\) and significant assumptions used to estimate the fair value that is required to be disclosed for financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 238.25 Td (instruments measured at amortized cost. ) Tj ET Q q 0 0 0 rg BT 235.61 238.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 368.43 238.25 Td (fective for our fiscal year beginning September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 226.25 Td (29, 2018. ) Tj ET Q q 0 0 0 rg BT 109.82 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 118.46 226.25 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 70.00 202.25 Td (In September 2015, the F) Tj ET Q q 0 0 0 rg BT 170.63 202.25 Td (ASB issued amended guidance that simplifies the accounting for adjustments made to provisional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 190.25 Td (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 70.00 178.25 Td (provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill, and would have to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 166.25 Td (revise comparative information for prior periods presented in financial statements as needed. ) Tj ET Q q 0 0 0 rg BT 443.30 166.25 Td (The update requires an entity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 154.25 Td (to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 142.25 Td (current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 130.25 Td (provisional amounts had been recognized as of the acquisition date. ) Tj ET Q q 0 0 0 rg BT 342.79 130.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 475.62 130.25 Td (fective for our fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 118.25 Td (year beginning October 2, 2017. ) Tj ET Q q 0 0 0 rg BT 201.73 118.25 Td (W) Tj ET Q q 0 0 0 rg BT 210.37 118.25 Td (e are currently assessing the impact of this amended guidance and the timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 106.25 Td (adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 82.25 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 146.20 82.25 Td (ASB amended the ) Tj ET Q q 0 0 0 rg BT 220.91 82.25 Td (Accounting Standards Codification and created a new ) Tj ET Q q 0 0 0 rg BT 438.71 82.25 Td (T) Tj ET Q q 0 0 0 rg BT 444.12 82.25 Td (opic 606, "Revenue from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 70.25 Td (Contracts with Customers". ) Tj ET Q q 0 0 0 rg BT 182.78 70.25 Td (The new guidance establishes a single comprehensive contract-based model for entities to use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 58.25 Td (in accounting for revenue arising from contracts with customers. ) Tj ET Q q 0 0 0 rg BT 330.85 58.25 Td (The new model significantly changes existing GAAP) Tj ET Q q 0 0 0 rg BT 543.03 58.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 46.25 Td (requires substantial judgment in its application, and will generally require companies to make more disclosures about ) 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 (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 742.10 Td (revenue. ) Tj ET Q q 0 0 0 rg BT 106.46 742.10 Td (The core principle of the amendment is that an entity recognizes revenue to depict the transfer of promised goods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 730.10 Td (or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 718.10 Td (for those goods or services. In applying the new guidance, an entity will \(1\) identify the contract\(s\) with a customer; \(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 706.10 Td (identify the performance obligations in the contract; \(3\) determine the transaction price; \(4\) allocate the transaction price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 694.10 Td (to the contract) Tj ET Q q 0 0 0 rg BT 129.98 694.10 Td (s performance obligations; and \(5\) recognize revenue when \(or as\) the entity satisfies a performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 682.10 Td (obligation. ) Tj ET Q q 0 0 0 rg BT 115.37 682.10 Td (The new standard provides for two alternative implementation methods. ) Tj ET Q q 0 0 0 rg BT 406.22 682.10 Td (The first is to apply the new standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 670.10 Td (retrospectively to each prior reporting period presented. ) Tj ET Q q 0 0 0 rg BT 295.29 670.10 Td (This method does allow the use of certain practical expedients. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 658.10 Td (The second method is to apply the new standard retrospectively in the year of initial adoption and record a cumulative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 646.10 Td (ef) Tj ET Q q 0 0 0 rg BT 77.59 646.10 Td (fect adjustment for the impact of adjusting contracts open at the date of adoption. Under this transition method, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 634.10 Td (would apply this guidance retrospectively only to contracts that are not completed contracts at the date of initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 622.10 Td (application. ) Tj ET Q q 0 0 0 rg BT 119.25 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 127.89 622.10 Td (e would then recognize the cumulative ef) Tj ET Q q 0 0 0 rg BT 292.64 622.10 Td (fect of initially applying the standard as an adjustment to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 610.10 Td (opening balance of retained earnings. ) Tj ET Q q 0 0 0 rg BT 221.98 610.10 Td (This method also requires us to disclose comparative information for the year of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 598.10 Td (adoption. In July 2015, the F) Tj ET Q q 0 0 0 rg BT 184.53 598.10 Td (ASB approved a one-year deferral of the ef) Tj ET Q q 0 0 0 rg BT 357.32 598.10 Td (fective date. ) Tj ET Q q 0 0 0 rg BT 408.50 598.10 Td (The new standard will become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 586.10 Td (ef) Tj ET Q q 0 0 0 rg BT 77.59 586.10 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q q 0 0 0 rg BT 308.72 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.36 586.10 Td (e are currently evaluating the new guidance and have not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 574.10 Td (determined the impact this standard may have on our financial statements nor have we decided upon the method of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 562.10 Td (adoption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 528.10 Td (3. ) Tj ET Q q 0 0 0 rg BT 68.00 528.10 Td (BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 167.56 528.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 508.10 Td (Fiscal 2015 ) Tj ET Q q 0 0 0 rg BT 117.44 508.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 488.10 Td (Raydiance, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 468.10 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 463.25 468.10 Td (5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 468.10 Td (, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 456.10 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 68.00 444.10 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 253.04 444.10 Td (The Raydiance assets have been included in our Specialty Lasers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 432.10 Td (Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 412.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 401.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 401.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 371.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 371.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 341.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 341.60 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 418.5 326.6 m 488.5 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 326.6 m 488.5 326.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 312.6 m 488.5 312.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 310.6 m 488.5 310.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 391.27 Td (Tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 391.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 391.27 Td (1,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 376.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 376.27 Td (1,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 361.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 346.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 346.27 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 331.27 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 331.27 Td (1,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 316.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 316.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 316.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 292.10 Td (The purchase price allocated to goodwill was finalized in the first quarter of fiscal 2016 with an increase of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.23 292.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.12 292.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 280.10 Td (and has been updated from the preliminary allocation in the fourth quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 260.10 Td (Results of operations for the business have been included in our consolidated financial statements subsequent to the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 248.10 Td (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 68.00 236.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 165.27 236.10 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 68.00 223.03 353.76 -9.09 re f /GS0 gs q 0 0 0 rg BT 68.00 216.10 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 421.76 216.10 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.59 216.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.58 216.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.35 216.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.90 216.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 196.10 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 68.00 176.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 176.10 Td (e expensed $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.28 176.10 Td (0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.17 176.10 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 68.00 164.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 144.10 Td (T) Tj ET Q q 0 0 0 rg BT 74.49 144.10 Td (insley Optics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 124.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 345.25 124.10 Td (T) Tj ET Q q 0 0 0 rg BT 351.00 124.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 419.17 124.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 112.10 Td (Communications Corporation for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.07 112.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.97 112.10 Td (, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 431.09 112.10 Td (T) Tj ET Q q 0 0 0 rg BT 436.85 112.10 Td (insley is a specialized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 100.10 Td (manufacturer of high precision optical components and subsystems sold primarily in the aerospace and defense industry) Tj ET Q q 0 0 0 rg BT 547.50 100.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 88.10 Td (T) Tj ET Q q 0 0 0 rg BT 73.76 88.10 Td (insley manufactures the lar) Tj ET Q q 0 0 0 rg BT 181.59 88.10 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 431.60 88.10 Td (T) Tj ET Q q 0 0 0 rg BT 437.36 88.10 Td (insley has been included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 76.10 Td (Specialty Lasers and Systems segment.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 521.10 Td (Results of operations for the business have been included in our consolidated financial statements subsequent to the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 509.10 Td (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 68.00 497.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 165.27 497.10 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 68.00 477.10 Td (The gain from the bar) Tj ET Q q 0 0 0 rg BT 155.01 477.10 Td (gain purchase is not subject to income taxation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 457.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 457.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.28 457.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.17 457.10 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 68.00 445.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 413.10 Td (4.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 413.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 413.10 Td (F) Tj ET Q q 0 0 0 rg BT 75.37 413.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 96.02 413.10 Td (V) Tj ET Q q 0 0 0 rg BT 101.95 413.10 Td (ALUES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 401.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 389.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 389.10 Td (e have not changed our valuation techniques in measuring the fair value of any financial assets and liabilities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 377.10 Td (period. ) Tj ET Q q 0 0 0 rg BT 98.37 377.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.00 377.10 Td (e recognize transfers between levels within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 374.28 377.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 401.68 377.10 Td (, at the end of each quarter) Tj ET Q q 0 0 0 rg BT 507.46 377.10 Td (. ) Tj ET Q q 0 0 0 rg BT 512.28 377.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 365.10 Td (no transfers between levels during the periods presented. ) Tj ET Q q 0 0 0 rg BT 297.10 365.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.54 365.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.14 365.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.58 365.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.28 365.10 Td (, we did not have any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 353.10 Td (assets or liabilities valued based on Level 3 valuations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 329.10 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 302.92 329.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.52 329.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.96 329.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.67 329.10 Td ( are summarized below \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 317.10 Td (thousands\):) 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 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET 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225.50 377.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 377.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 377.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 377.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 377.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 377.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 377.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 377.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 377.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 377.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 377.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 377.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 347.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 347.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 347.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 347.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 347.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 347.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 347.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 347.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 347.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 347.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 347.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 347.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 347.50 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 225.5 680.5 m 229.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 680.5 m 276.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 680.5 m 280.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 680.5 m 340.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 680.5 m 344.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 680.5 m 393.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 680.5 m 444.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 680.5 m 448.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 680.5 m 508.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 680.5 m 512.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 680.5 m 561.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 667.5 m 229.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 667.5 m 276.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 667.5 m 280.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 667.5 m 340.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 667.5 m 344.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 667.5 m 393.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 680.5 m 444.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 667.5 m 444.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 680.5 m 448.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 667.5 m 448.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 680.5 m 508.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 667.5 m 508.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 680.5 m 512.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 667.5 m 512.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 680.5 m 561.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 667.5 m 561.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 667.5 m 444.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 667.5 m 448.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 667.5 m 508.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 667.5 m 561.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 437.5 m 276.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 423.5 m 276.5 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 421.5 m 276.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 437.5 m 340.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 423.5 m 340.5 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 421.5 m 340.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 437.5 m 393.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 423.5 m 393.5 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 421.5 m 393.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 437.5 m 444.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 423.5 m 444.5 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 421.5 m 444.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 437.5 m 508.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 423.5 m 508.5 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 421.5 m 508.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 437.5 m 561.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 423.5 m 561.5 423.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 421.5 m 561.5 421.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 347.5 m 444.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 347.5 m 508.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 347.5 m 561.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 347.5 m 276.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 333.5 m 276.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 331.5 m 276.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 347.5 m 340.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 333.5 m 340.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 331.5 m 340.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 347.5 m 393.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 333.5 m 393.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 331.5 m 393.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 347.5 m 444.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 333.5 m 444.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 331.5 m 444.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 347.5 m 508.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 333.5 m 508.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 331.5 m 508.5 331.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 347.5 m 561.5 347.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 333.5 m 561.5 333.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 331.5 m 561.5 331.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.00 683.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 235.00 692.73 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.65 684.73 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.85 716.73 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.65 708.73 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.65 700.73 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.85 692.73 Td (for) Tj ET Q q 0 0 0 rg BT 298.92 692.73 Td (Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.30 684.73 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.05 708.73 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.35 700.73 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.90 692.73 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.35 684.73 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.00 692.73 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.65 684.73 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.85 716.73 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.65 708.73 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.65 700.73 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.85 692.73 Td (forIdentical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.30 684.73 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.05 708.73 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.35 700.73 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.90 692.73 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.35 684.73 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.75 671.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.05 671.73 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 146.00 657.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.00 658.73 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 658.73 Td (\(Level2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.00 658.73 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 658.73 Td (\(Level2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 644.17 Td (Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 629.17 Td (Cash equivalents:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 614.17 Td (Money market fund deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 614.17 Td (21,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 614.17 Td (21,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 614.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 614.17 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 614.17 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 614.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 596.17 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 158.64 600.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 596.17 Td (9,694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 596.17 Td (9,694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 596.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 572.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 556.17 Td 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rg BT 525.10 546.17 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 531.17 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 211.98 535.70 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 531.17 Td (19,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 531.17 Td (19,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.10 531.17 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 531.17 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 516.17 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 158.64 520.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 516.17 Td (9,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 516.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 516.17 Td (9,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 516.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 516.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 516.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 501.17 Td (Equity securities ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 151.43 505.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 501.17 Td (17,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 501.17 Td (17,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 501.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.10 501.17 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 501.17 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 501.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 486.17 Td (Prepaid and other assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 471.17 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 191.68 475.70 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.15 471.17 Td (1,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 471.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 471.17 Td (1,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 471.17 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 471.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 471.17 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 452.17 Td (Mutual funds Deferred comp ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 442.17 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 174.48 446.70 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 442.17 Td (14,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 442.17 Td (14,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 442.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.10 442.17 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 442.17 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 442.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 427.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 427.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.10 427.17 Td (241,883) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 427.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 427.17 Td (53,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 427.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.10 427.17 Td (188,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 427.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.10 427.17 Td (217,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 427.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 427.17 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 427.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.10 427.17 Td (178,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 397.17 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 382.17 Td (Other current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 367.17 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 191.68 371.70 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 367.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.30 367.17 Td (\(384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.65 367.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 367.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 367.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 367.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.30 367.22 Td (\(384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 367.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 367.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 367.22 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 367.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 367.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 367.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 367.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.30 367.22 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 367.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 352.17 Td (Short term borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.80 352.17 Td (\(5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.65 352.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.80 352.22 Td (\(5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 352.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 352.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 352.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 352.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 352.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 337.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 337.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.10 337.17 Td (236,499) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 337.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 337.17 Td (48,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 337.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.10 337.17 Td (187,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 337.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.10 337.17 Td (217,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 337.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 337.17 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 337.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.10 337.17 Td (178,449) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 309.00 Td (___________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 297.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 297.00 Td (V) Tj ET Q q 0 0 0 rg BT 78.61 297.00 Td (aluations are based upon quoted market prices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 273.00 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 273.00 Td (V) Tj ET Q q 0 0 0 rg BT 78.61 273.00 Td (aluations are based upon quoted market prices in active markets involving similar assets. ) Tj ET Q q 0 0 0 rg BT 436.11 273.00 Td (The market inputs used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 261.00 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 72.50 249.00 Td (sources with reasonable levels of price transparency) Tj ET Q q 0 0 0 rg BT 280.10 249.00 Td (. Pricing sources include industry standard data providers, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 237.00 Td (master files from lar) Tj ET Q q 0 0 0 rg BT 153.68 237.00 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 72.50 225.00 Td (algorithm to determine a daily market value. ) Tj ET Q q 0 0 0 rg BT 252.81 225.00 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 72.50 213.00 Td (security) Tj ET Q q 0 0 0 rg BT 103.51 213.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 189.00 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 189.00 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 510.75 189.00 Td (-the-counter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 177.00 Td (environment with a relatively high level of price transparency) Tj ET Q q 0 0 0 rg BT 318.98 177.00 Td (. ) Tj ET Q q 0 0 0 rg BT 323.80 177.00 Td (The market participants usually are lar) Tj ET Q q 0 0 0 rg BT 477.72 177.00 Td (ge commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 165.00 Td (banks. Our foreign currency contracts) Tj ET Q q 0 0 0 rg BT 226.42 165.00 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 72.50 153.00 Td (public data sources and do not involve management judgment. ) Tj ET Q q 0 0 0 rg BT 324.66 153.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.16 153.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.76 153.00 Td (, prepaid expenses and other assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 141.00 Td (include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.43 141.00 Td ($1,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.93 141.00 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.71 141.00 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.71 141.00 Td ( foreign currency contracts designated for cash flow hedges, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 129.00 Td (respectively; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.60 129.00 Td ($380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.60 129.00 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.38 129.00 Td ($4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.38 129.00 Td ( foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 117.00 Td (designated for cash flow hedges, respectively) Tj ET Q q 0 0 0 rg BT 253.45 117.00 Td (. ) Tj ET Q q 0 0 0 rg BT 257.90 117.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.40 117.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.11 117.00 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.94 117.00 Td ($217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.94 117.00 Td ( non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 105.00 Td (designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.45 105.00 Td ($41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.45 105.00 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 72.50 93.00 Td (current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.97 93.00 Td ($239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.97 93.00 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.74 93.00 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.74 93.00 Td ( foreign currency contracts designated for cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 81.00 Td (flow hedges, respectively) Tj ET Q q 0 0 0 rg BT 173.76 81.00 Td (. See Note 6, "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 379.46 81.00 Td (Activities". ) 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 (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 742.10 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 72.50 730.10 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 435.50 730.10 Td (-the-counter markets and listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 718.10 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 51.00 694.10 Td (5.) Tj ET Q BT /F2 3.00 Tf ET q 0 0 0 rg BT 58.50 694.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.25 694.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.75 694.10 Td (SHOR) Tj ET Q q 0 0 0 rg BT 98.74 694.10 Td (T) Tj ET Q q 0 0 0 rg BT 104.49 694.10 Td (-TERM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.82 694.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.32 694.10 Td (INVESTMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 682.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 77.64 670.10 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 69.00 658.10 Td (equivalents. Investments classified as available-for) Tj ET Q q 0 0 0 rg BT 272.34 658.10 Td (-sale are reported at fair value with unrealized gains and losses, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 646.10 Td (related income taxes, recorded as a separate component of other comprehensive income \(OCI\) in stockholders) Tj ET Q q 0 0 0 rg BT 521.13 646.10 Td ( equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 634.10 Td (until realized. Interest and amortization of premiums and discounts for debt securities are included in interest income. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 622.10 Td (Gains and losses on securities sold are determined based on the specific identification method and are included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 610.10 Td (income \(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 586.10 Td (Cash, cash equivalents and short-term investments consist of the following \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 574.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 529.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 529.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 529.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 529.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 529.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 529.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 529.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 529.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 499.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 499.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 499.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 499.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 499.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 499.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 499.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 499.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 469.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 469.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 469.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 469.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 439.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 409.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 409.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 409.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 409.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 409.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 409.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 409.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 409.60 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 269.5 550.6 m 339.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 550.6 m 343.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 550.6 m 413.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 550.6 m 417.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 550.6 m 487.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 550.6 m 491.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 550.6 m 561.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 529.6 m 339.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 529.6 m 413.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 529.6 m 487.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 529.6 m 561.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 529.6 m 339.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 515.6 m 339.5 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 513.6 m 339.5 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 529.6 m 413.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 515.6 m 413.5 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 513.6 m 413.5 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 529.6 m 487.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 515.6 m 487.5 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 513.6 m 487.5 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 529.6 m 561.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 515.6 m 561.5 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 513.6 m 561.5 513.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 409.6 m 339.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 409.6 m 413.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 409.6 m 487.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 409.6 m 339.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 395.6 m 339.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 393.6 m 339.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 409.6 m 413.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 395.6 m 413.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 393.6 m 413.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 409.6 m 487.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 395.6 m 487.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 393.6 m 487.5 393.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 409.6 m 561.5 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 395.6 m 561.5 395.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 393.6 m 561.5 393.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 553.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.75 554.83 Td (January 2, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 532.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 533.83 Td (CostBasis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 541.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 373.03 541.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.95 533.83 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 541.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 447.03 541.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.85 533.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 533.83 Td (FairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 520.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 519.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 519.27 Td (142,343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 519.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 519.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 519.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 519.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 519.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 519.27 Td (142,343) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 72.00 502.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 502.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 502.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 489.27 Td (Short-term investments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 487.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 487.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 487.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 487.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 474.27 Td (Available-for-sale securities:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 472.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 472.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 472.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 472.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 460.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 459.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 459.27 Td (9,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 459.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 459.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 459.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 459.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 459.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 459.27 Td (9,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 445.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 444.27 Td (146,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 444.27 Td (706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 444.32 Td (\(215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 444.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 444.27 Td (147,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 430.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 429.27 Td (19,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 429.27 Td (104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 429.32 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 429.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 429.27 Td (19,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 415.17 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 414.27 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 414.27 Td (1,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 414.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 414.27 Td (17,044) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 399.27 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 399.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 399.27 Td (191,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 399.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 399.27 Td (2,585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 399.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 399.32 Td (\(260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 399.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 399.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 399.27 Td (193,831) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.50 383.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 338.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 338.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 338.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 338.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 338.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 338.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 338.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 338.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 308.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 308.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 308.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 308.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 308.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 308.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 308.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 308.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 278.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 278.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 278.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 278.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 278.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 278.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 278.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 278.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 248.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 248.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 248.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 248.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 248.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 248.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 248.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 248.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 218.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 218.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 218.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 218.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 218.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 218.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 218.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 218.60 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 269.5 359.6 m 339.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 359.6 m 343.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 359.6 m 413.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 359.6 m 417.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 359.6 m 487.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 359.6 m 491.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 359.6 m 561.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 338.6 m 339.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 338.6 m 413.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 338.6 m 487.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 338.6 m 561.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 338.6 m 339.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 324.6 m 339.5 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 322.6 m 339.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 338.6 m 413.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 324.6 m 413.5 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 322.6 m 413.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 338.6 m 487.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 324.6 m 487.5 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 322.6 m 487.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 338.6 m 561.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 324.6 m 561.5 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 322.6 m 561.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 218.60000000000002 m 339.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 218.60000000000002 m 413.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 218.60000000000002 m 487.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 218.60000000000002 m 561.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 218.60000000000002 m 339.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 204.60000000000002 m 339.5 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 202.60000000000002 m 339.5 202.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 218.60000000000002 m 413.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 204.60000000000002 m 413.5 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 202.60000000000002 m 413.5 202.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 218.60000000000002 m 487.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 204.60000000000002 m 487.5 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 202.60000000000002 m 487.5 202.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 218.60000000000002 m 561.5 218.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 204.60000000000002 m 561.5 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 202.60000000000002 m 561.5 202.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 362.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.05 363.83 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 341.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 342.83 Td (CostBasis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 350.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 373.03 350.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.95 342.83 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 350.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 447.03 350.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.85 342.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 342.83 Td (FairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 329.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 328.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 328.27 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 328.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 328.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 328.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 328.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 328.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 328.27 Td (130,607) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 72.00 311.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 311.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 311.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 298.27 Td (Short-term investments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 296.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 296.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 296.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 296.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 283.27 Td (Available-for-sale securities:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 281.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 281.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 281.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 281.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 269.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 268.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 268.27 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 268.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 268.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 268.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 268.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 268.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 268.27 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 253.27 Td ( U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 253.27 Td (149,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 253.27 Td (1,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 253.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 253.27 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 239.17 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 238.27 Td (17,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 238.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 238.32 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 238.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 238.27 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 224.17 Td (Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 223.27 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 223.27 Td (1,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 223.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 223.27 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 208.27 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 208.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 208.27 Td (192,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 208.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 208.27 Td (2,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 208.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 208.32 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 208.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 208.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 208.27 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 180.10 Td (None of the unrealized losses as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.90 180.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.50 180.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.83 180.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.54 180.10 Td ( were considered to be other) Tj ET Q q 0 0 0 rg BT 465.34 180.10 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 168.10 Td (impairments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 144.10 Td (The amortized cost and estimated fair value of available-for) Tj ET Q q 0 0 0 rg BT 308.14 144.10 Td (-sale investments in debt securities as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.71 144.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.30 144.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 132.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.71 132.10 Td ( classified as short-term investments on our condensed consolidated balance sheet were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 120.10 Td (thousands\):) 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 301.00 31.60 Td (13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 657.00 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 72.00 722.50 160.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 232.00 722.50 75.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 307.00 722.50 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 722.50 80.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 391.00 722.50 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 395.00 722.50 75.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 470.00 722.50 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 722.50 80.00 -33.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 735.5 m 307 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 735.5 m 311 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 735.5 m 391 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 735.5 m 470 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 735.5 m 474 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 735.5 m 554 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 735.5 m 391 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 735.5 m 554 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 722.5 m 307 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 690.5 m 307 690.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 688.5 m 307 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 722.5 m 391 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 690.5 m 391 690.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 688.5 m 391 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 722.5 m 470 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 690.5 m 470 690.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 688.5 m 470 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 722.5 m 554 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 690.5 m 554 690.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 688.5 m 554 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 657.5 m 307 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 655.5 m 307 655.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 657.5 m 391 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 655.5 m 391 655.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 657.5 m 470 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395 655.5 m 470 655.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 657.5 m 554 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 655.5 m 554 655.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 74.50 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.75 739.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.05 739.73 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 74.50 725.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.00 726.73 Td (AmortizedCost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.30 726.73 Td (EstimatedFairValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.00 726.73 Td (AmortizedCost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.30 726.73 Td (EstimatedFairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 713.07 Td (Investments in available-for-sale debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 703.07 Td (securities due in less than one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.50 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 694.17 Td (140,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.50 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 694.17 Td (140,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.50 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 694.17 Td (148,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.50 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 694.17 Td (149,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 671.17 Td (Investments in available-for) Tj ET Q q 0 0 0 rg BT 186.48 671.17 Td (-sale debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 661.17 Td (securities due 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 210.84 665.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.50 661.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.65 661.17 Td (35,934) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.50 661.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 661.17 Td (35,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.50 661.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 661.17 Td (29,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.50 661.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.65 661.17 Td (29,330) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 639.60 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 69.00 627.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 615.60 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 615.60 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.86 615.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.36 615.60 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.96 615.60 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.57 615.60 Td ($15.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.46 615.60 Td ( from the sale of available-for) Tj ET Q q 0 0 0 rg BT 558.37 615.60 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 603.60 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 273.66 603.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.55 603.60 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.10 603.60 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.41 603.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.91 603.60 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.49 603.60 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 591.60 Td (received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.45 591.60 Td ($29.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.34 591.60 Td ( from the sale of available-for) Tj ET Q q 0 0 0 rg BT 349.25 591.60 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 69.00 579.60 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.89 579.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 567.60 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.50 555.60 Td (6.DERIV) Tj ET Q q 0 0 0 rg BT 106.94 555.60 Td (A) Tj ET Q q 0 0 0 rg BT 113.42 555.60 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 215.67 555.60 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 290.12 555.60 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 543.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 531.60 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 531.60 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 76.50 519.60 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 268.78 519.60 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 528.58 519.60 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 507.60 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 346.84 507.60 Td (Y) Tj ET Q q 0 0 0 rg BT 353.06 507.60 Td (en, South Korean ) Tj ET Q q 0 0 0 rg BT 425.09 507.60 Td (W) Tj ET Q q 0 0 0 rg BT 433.73 507.60 Td (on and Chinese Renminbi ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 495.60 Td (\(RMB\). ) Tj ET Q q 0 0 0 rg BT 109.84 495.60 Td (As a result, our earnings, cash flows and cash balances are exposed to fluctuations in foreign currency exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 483.60 Td (rates. ) Tj ET Q q 0 0 0 rg BT 100.20 483.60 Td (W) Tj ET Q q 0 0 0 rg BT 108.83 483.60 Td (e attempt to limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 398.31 483.60 Td (W) Tj ET Q q 0 0 0 rg BT 406.94 483.60 Td (e utilize derivative instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 471.60 Td (primarily forward contracts with maturities of two months or less, to manage our exposure associated with anticipated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 459.60 Td (cash flows and net asset and liability positions denominated in foreign currencies. Gains and losses on the forward ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 447.60 Td (contracts are mitigated by gains and losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 374.03 447.60 Td (W) Tj ET Q q 0 0 0 rg BT 382.67 447.60 Td (e do not use derivative financial instruments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 435.60 Td (for speculative or trading purposes. ) Tj ET Q q 0 0 0 rg BT 220.17 435.60 Td (The credit risk amounts represent the Company) Tj ET Q q 0 0 0 rg BT 412.89 435.60 Td (s gross exposure to potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 423.60 Td (accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 411.60 Td (according to the terms of the contract, based on then-current currency or interest rates at each respective date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 399.60 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 387.60 Td (Non-Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 363.60 Td (The outstanding notional contract and fair value asset \(liability\) amounts of non-designated hedge contracts, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 351.60 Td (maximum maturity of two months, are as follows \(in thousands\):) 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 (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 448.00 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 716.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 716.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 716.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 716.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 716.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 716.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 716.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 716.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 686.50 193.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 686.50 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 686.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 686.50 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 686.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 686.50 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 686.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 686.50 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 657.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 657.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 657.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 657.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 657.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 657.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 657.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 657.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 627.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 627.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 627.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 627.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 627.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 627.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 627.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 627.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 597.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 597.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 597.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 597.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 597.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 597.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 597.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 597.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 567.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 567.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 567.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 567.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 567.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 567.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 567.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 567.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 537.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 537.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 537.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 537.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 537.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 537.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 537.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 537.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 507.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 507.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 507.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 507.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 507.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 507.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 507.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 507.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.50 477.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 477.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 477.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 477.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 477.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.50 477.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 477.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 477.50 68.00 -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 272.5 735.5 m 340.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 735.5 m 344.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 735.5 m 411.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 735.5 m 483.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 735.5 m 487.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 735.5 m 555.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 716.5 m 340.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 735.5 m 411.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 716.5 m 411.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415.5 716.5 m 483.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 735.5 m 555.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 716.5 m 555.5 716.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 82.00 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.80 739.73 Td (U.S.NotionalContractValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.05 739.73 Td (U.S. FairValue) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 82.00 719.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.75 720.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.55 720.73 Td (October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.75 720.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.05 720.73 Td (October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 707.07 Td (Euro currency hedge contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 337.00 704.26 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 408.00 704.26 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 480.00 704.26 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 552.00 704.26 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 692.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 691.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 691.18 Td (56,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 691.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 691.17 Td (52,699) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 691.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 691.18 Td (1,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 691.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 691.17 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 677.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.80 677.23 Td (\(2,710) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 677.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 677.07 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 677.18 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 677.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 648.07 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 633.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 632.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 632.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 632.17 Td (558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 632.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 632.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 632.17 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 618.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 617.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.80 617.23 Td (\(21,743) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 617.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 617.22 Td (\(15,804) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 617.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 617.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.30 617.23 Td (\(340) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 617.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 617.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 617.22 Td (\(84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 617.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 588.07 Td (South Korean Won currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 573.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 572.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.65 572.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 572.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 572.17 Td (253) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 572.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 572.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 572.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 572.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 558.07 Td ( Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 557.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.80 557.23 Td (\(14,034) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 557.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 557.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 557.22 Td (\(17,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 557.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 557.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 557.18 Td (131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 557.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 557.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 528.07 Td (Chinese RMB currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 513.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 512.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.80 512.23 Td (\(9,957) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 512.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 512.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.80 512.22 Td (\(10,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 512.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 512.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 512.18 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 512.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 512.22 Td (\(106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 512.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 483.07 Td (Other foreign currency hedge contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 337.00 480.26 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 408.00 480.26 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 480.00 480.26 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 552.00 480.26 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 468.07 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 467.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.15 467.18 Td (5,220) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 467.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.15 467.17 Td (3,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 467.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.30 467.23 Td (\(30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 479.65 467.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 467.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 467.22 Td (\(49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 467.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 453.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 275.00 452.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.80 452.23 Td (\(5,597) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 452.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 452.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 452.22 Td (\(5,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 452.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.00 452.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 469.65 452.18 Td (83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 452.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 452.17 Td (146) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 76.50 419.00 Td (Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 402.00 Td (Cash flow hedges related to anticipated transactions are designated and documented at the inception of the hedge when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 390.00 Td (we enter into contracts for specific future transactions. Cash flow hedges are evaluated for ef) Tj ET Q q 0 0 0 rg BT 447.55 390.00 Td (fectiveness quarterly) Tj ET Q q 0 0 0 rg BT 529.92 390.00 Td (. ) Tj ET Q q 0 0 0 rg BT 534.74 390.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 378.00 Td (ef) Tj ET Q q 0 0 0 rg BT 84.09 378.00 Td (fective portion of the gain or loss on these hedges is reported as a component of OCI in stockholder's equity and is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 366.00 Td (reclassified into earnings when the underlying transaction af) Tj ET Q q 0 0 0 rg BT 317.63 366.00 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 377.70 366.00 Td (The majority of the after) Tj ET Q q 0 0 0 rg BT 475.79 366.00 Td (-tax net income or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 354.00 Td (loss related to derivative instruments included in OCI at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.84 354.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.44 354.00 Td ( is expected to be reclassified into earnings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 342.00 Td (within 12 months. Changes in the fair value of currency forward contracts due to changes in time value are excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 330.00 Td (from the assessment of ef) Tj ET Q q 0 0 0 rg BT 178.51 330.00 Td (fectiveness and recognized in other income \(expense\) as incurred. ) Tj ET Q q 0 0 0 rg BT 444.33 330.00 Td (W) Tj ET Q q 0 0 0 rg BT 452.96 330.00 Td (e classify the cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 318.00 Td (from the foreign exchange forward contracts that are accounted for as cash flow hedges in the same section as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 306.00 Td (underlying item, primarily within cash flows from operating activities since we do not designate our cash flow hedges as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 294.00 Td (investing or financing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 270.00 Td (For derivative instruments that are not designated as hedging instruments, gains and losses are recognized in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 258.00 Td (income \(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 234.00 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 76.50 222.00 Td (maximum maturity of thirteen months, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 81.00 179.50 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.00 179.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 179.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 179.50 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 179.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.00 179.50 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.00 179.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.00 179.50 68.00 -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 274 198.5 m 342 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 198.5 m 346 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 198.5 m 413 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 198.5 m 485 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 198.5 m 489 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 198.5 m 557 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 198.5 m 342 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 179.5 m 342 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 198.5 m 413 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 179.5 m 413 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 198.5 m 485 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 179.5 m 485 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 198.5 m 557 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 489 179.5 m 557 179.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 83.50 201.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.30 202.73 Td (U.S.NotionalContractValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.55 202.73 Td (U.S. FairValue) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 83.50 182.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.25 183.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.05 183.73 Td (October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.25 183.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.55 183.73 Td (October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.50 170.07 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 155.07 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 276.50 154.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 319.80 154.23 Td (\(901) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 338.15 154.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.50 154.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 154.22 Td (\(2,093) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 154.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.50 154.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.80 154.23 Td (\(4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 481.15 154.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.50 154.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 154.17 Td (41) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 138.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 121.00 Td (W) Tj ET Q q 0 0 0 rg BT 85.14 121.00 Td (e have entered into certain derivative forward contracts to sell Japanese ) Tj ET Q q 0 0 0 rg BT 372.69 121.00 Td (Y) Tj ET Q q 0 0 0 rg BT 378.91 121.00 Td (en and buy Euro to hedge revenue exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 109.00 Td (related to our photonics-based solutions in ) Tj ET Q q 0 0 0 rg BT 248.14 109.00 Td (Asia. In order to facilitate the hedge, we transact with counterparties in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 97.00 Td (U.S. directly and then allocate the hedge contracts to our af) Tj ET Q q 0 0 0 rg BT 313.45 97.00 Td (filiates through a back-to-back relationship with our German ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 85.00 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 116.96 85.00 Td (. ) Tj ET Q q 0 0 0 rg BT 121.78 85.00 Td (The German subsidiary designates these hedge contracts as cash flow hedges under ) Tj ET Q q 0 0 0 rg BT 457.23 85.00 Td (ASC 815.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 68.00 Td (The fair value of our derivative instruments is included in prepaid expenses and other assets and in other current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 56.00 Td (liabilities in our Condensed Consolidated Balance Sheets \(See Note 4\). ) 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 (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 730.10 Td (The locations and amounts of designated and non-designated derivative instruments) Tj ET Q q 0 0 0 rg BT 414.83 730.10 Td ( gains and losses in the condensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 718.10 Td (consolidated financial statements for the indicated periods were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 150.00 663.60 160.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 663.60 65.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 663.60 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 663.60 50.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 663.60 4.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 663.60 55.00 -22.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 150.00 615.60 160.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 615.60 65.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 615.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 615.60 50.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 615.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 615.60 55.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 150.00 553.60 160.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 553.60 65.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 553.60 4.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 553.60 50.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 553.60 4.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 553.60 55.00 -36.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 150.00 491.60 160.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.00 491.60 65.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 375.00 491.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.00 491.60 50.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.00 491.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.00 491.60 55.00 -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 379 682.6 m 429 682.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 682.6 m 433 682.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 682.6 m 488 682.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 663.6 m 375 663.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 663.6 m 429 663.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429 682.6 m 433 682.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 682.6 m 488 682.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 663.6 m 488 663.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 152.50 685.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.55 683.83 Td (Location in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.10 675.83 Td (financial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.75 667.83 Td (statements) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.60 686.83 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 152.50 666.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.25 674.68 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.50 666.68 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.75 674.68 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 666.68 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.50 654.33 Td (Derivatives designated as hedging) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.50 644.33 Td (instruments) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 425.50 644.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.50 644.36 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 627.85 Td (Gains\(losses\) in OCI on derivatives \(effective) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 619.85 Td (portion\), after tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 619.85 Td (OCI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 620.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.80 620.33 Td (\(30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 620.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 620.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 620.27 Td (375) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 601.85 Td (Gains\(losses\) reclassified from OCI into) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 593.85 Td (income \(effective portion\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 593.85 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 594.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 594.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 594.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 594.32 Td (\(614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 594.27 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 565.85 Td (Gains\(losses\) reclassified from OCI into) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 557.85 Td (income \(effective portion\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 557.85 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 558.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.15 558.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 558.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 558.27 Td (300) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 537.85 Td (Gains\(losses\) recognized in income on) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 529.85 Td (derivatives \(ineffective portion and amount) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.50 521.85 Td (excluded from effectiveness testing\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 529.85 Td (Other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 521.85 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 522.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.80 522.33 Td (\(29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 522.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 522.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 522.27 Td (35) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.50 508.33 Td (Derivatives not designated as ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 152.50 498.33 Td (hedging instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 152.50 469.85 Td (Losses recognized in income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 477.85 Td (Other income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 312.50 469.85 Td (\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 470.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.30 470.33 Td (\(2,331) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 470.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 470.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 470.32 Td (\(712) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.15 470.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (During the first quarter of fiscal 2016 we recognized a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.31 442.10 Td ($31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.31 442.10 Td ( in other income \(expense\) as inef) Tj ET Q q 0 0 0 rg BT 475.63 442.10 Td (fectiveness related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 430.10 Td (a portion of an anticipated hedged transaction that failed to occur within the original hedge period plus two months. ) Tj ET Q q 0 0 0 rg BT 541.19 430.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 418.10 Td (remainder of the hedged transaction is still expected to occur and the ef) Tj ET Q q 0 0 0 rg BT 361.76 418.10 Td (fective portion is recorded in OCI as shown in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 406.10 Td (above table.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 382.10 Td (The amounts that will be reclassified from OCI to earnings will generally be of) Tj ET Q q 0 0 0 rg BT 392.62 382.10 Td (fset by the recognition of the hedged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 370.10 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 76.50 358.10 Td (underlying risk management strategies and will vary from the expected amounts presented above as a result of changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 346.10 Td (in foreign exchange rates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 322.10 Td (T) Tj ET Q q 0 0 0 rg BT 81.91 322.10 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 76.50 310.10 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 535.89 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 544.53 310.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 298.10 Td (present the fair value of derivative assets and liabilities within our condensed consolidated balance sheet on a gross basis ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 286.10 Td (even when derivative transactions are subject to master netting arrangements and may otherwise qualify for net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.10 Td (presentation. Our derivative contracts do not contain any credit risk related contingent features and do not require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 262.10 Td (collateral or other security to be furnished by us or the counterparties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 238.10 Td (Of) Tj ET Q q 0 0 0 rg BT 86.87 238.10 Td (fsetting of Financial ) Tj ET Q q 0 0 0 rg BT 169.36 238.10 Td (Assets/Liabilities under Master Netting ) Tj ET Q q 0 0 0 rg BT 328.78 238.10 Td (Agreements with Derivative Counterparties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 226.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.10 226.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.54 226.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.24 226.10 Td ( \(in thousands\): ) 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 (16) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 79.00 621.50 110.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.00 621.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.00 621.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 621.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 621.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 621.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 621.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 621.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 621.50 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 621.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 621.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 621.50 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 621.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 79.00 580.50 110.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.00 580.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 194.00 580.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.00 580.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 259.00 580.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.00 580.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 580.50 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.00 580.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 389.00 580.50 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.00 580.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.00 580.50 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.00 580.50 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 504.00 580.50 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Tf ET q 0 0 0 rg BT 212.30 661.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.10 652.95 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.50 643.95 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.50 634.95 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 211.50 625.95 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 277.30 679.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 270.95 670.95 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 264.75 661.95 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 267.20 652.95 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 263.20 643.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.25 634.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 276.25 625.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.35 696.90 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.60 687.90 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.50 678.90 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.70 669.90 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 347.50 660.90 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 332.20 651.90 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 328.20 642.90 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.25 633.90 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 341.25 624.90 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 397.95 643.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 392.45 634.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 410.75 625.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 463.70 643.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 454.25 634.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 456.25 625.95 Td (Received) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 521.75 634.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 510.95 625.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 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(1,396) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 81.50 560.18 Td (As of October 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 545.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.50 535.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 535.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.15 535.17 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 535.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.15 535.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 535.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 535.17 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 535.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.80 535.22 Td (\(116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 535.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.50 535.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 535.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 535.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 535.17 Td (142) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 519.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 90.48 519.00 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.17 519.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.77 519.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.20 519.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.91 519.00 Td ( were related to derivative liabilities which are allowed to be net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 507.00 Td (settled against derivative assets in accordance with the master netting agreements.) 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0.9333333333333333 1 rg /GS0 gs 77.50 314.50 113.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 190.50 314.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 195.50 314.50 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 255.50 314.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 260.50 314.50 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 320.50 314.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 325.50 314.50 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 385.50 314.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 314.50 55.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 314.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 450.50 314.50 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 500.50 314.50 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 505.50 314.50 50.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 441.5 m 445.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 441.5 m 450.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 441.5 m 500.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 195.5 356.5 m 255.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 260.5 356.5 m 320.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 356.5 m 385.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 356.5 m 445.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450.5 356.5 m 500.5 356.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505.5 356.5 m 555.5 356.5 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 394.45 472.95 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 411.70 463.95 Td (in the Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 403.35 454.95 Td (Consolidated Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 432.75 445.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 213.80 396.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 202.60 387.95 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 203.00 378.95 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 205.00 369.95 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 205.70 360.95 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 278.80 414.95 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 272.45 405.95 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 266.25 396.95 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 268.70 387.95 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 264.70 378.95 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.75 369.95 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 277.75 360.95 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.85 432.90 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 330.10 423.90 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 335.70 414.90 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 331.20 405.90 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 349.00 396.90 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 333.70 387.90 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.70 378.90 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 339.75 369.90 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 342.75 360.90 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 399.45 378.95 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.95 369.95 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 412.25 360.95 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 465.20 378.95 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 455.75 369.95 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 466.20 360.95 Td (Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 523.25 369.95 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 512.45 360.95 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 80.00 346.18 Td (As of January 2, 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 329.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 319.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.30 319.17 Td (\(384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 319.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 319.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.30 319.22 Td (\(384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 319.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 319.17 Td (384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 319.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 319.17 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 80.00 296.18 Td (As of October 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 280.17 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.00 270.17 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 270.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.30 270.17 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 270.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.00 270.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.65 270.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.00 270.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.30 270.22 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 270.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.00 270.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 270.17 Td (116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.00 270.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 270.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 270.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 270.22 Td (\(123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 270.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 254.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 90.48 254.00 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.17 254.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.77 254.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.20 254.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.91 254.00 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 76.50 242.00 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 50.00 218.00 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 124.74 218.00 Td ( ) Tj ET Q q 0 0 0 rg BT 126.68 218.00 Td (AND INT) Tj ET Q q 0 0 0 rg BT 167.89 218.00 Td (ANGIBLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.01 218.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.51 218.00 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.76 218.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 194.00 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.55 194.00 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.86 194.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.36 194.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.96 194.00 Td (, we noted no indications of impairment or triggering events to cause us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 182.00 Td (review goodwill for potential impairment. ) Tj ET Q q 0 0 0 rg BT 238.33 182.00 Td (W) Tj ET Q q 0 0 0 rg BT 246.97 182.00 Td (e will conduct our annual goodwill testing during the fourth fiscal quarter) Tj ET Q q 0 0 0 rg BT 540.51 182.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 170.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 158.00 Td (The changes in the carrying amount of goodwill by segment for the period from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.13 158.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.84 158.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.62 158.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.22 158.00 Td ( are as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 146.00 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 106.50 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 106.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 106.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 106.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 106.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 106.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 76.50 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 76.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 76.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 76.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 76.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 76.50 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 348.5 106.5 m 413.5 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 106.5 m 482.5 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 106.5 m 551.5 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 106.5 m 413.5 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 106.5 m 482.5 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 106.5 m 551.5 106.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 76.5 m 413.5 76.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 76.5 m 482.5 76.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 76.5 m 551.5 76.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 76.5 m 413.5 76.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 62.5 m 413.5 62.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 60.5 m 413.5 60.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 76.5 m 482.5 76.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 62.5 m 482.5 62.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 60.5 m 482.5 60.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 76.5 m 551.5 76.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 62.5 m 551.5 62.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 60.5 m 551.5 60.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 109.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.90 126.73 Td (Specialty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.70 118.73 Td (Lasersand) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.70 110.73 Td (Systems) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.45 126.73 Td (Commer) Tj ET Q q 0 0 0 rg BT 458.51 126.73 Td (cial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 118.73 Td (Lasersand) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.90 110.73 Td (Components) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.75 110.73 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 96.17 Td (Balance as of October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 96.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 96.17 Td (95,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 96.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 96.17 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 96.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 96.17 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 81.17 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 81.22 Td (\(1,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 81.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 81.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 81.22 Td (\(1,642) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 81.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 66.17 Td (Balance as of January 2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 66.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 66.17 Td (93,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 66.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 66.17 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 66.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 66.17 Td (100,175) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 50.00 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 (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (Components of our amortizable intangible assets are as follows \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 677.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 677.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 677.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 677.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 677.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 677.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 677.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 677.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 677.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 677.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 677.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 677.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 647.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 647.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 647.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 647.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 647.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 647.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 647.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 647.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 647.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 647.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 647.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 647.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 617.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 617.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 617.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 617.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 617.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 617.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 617.60 52.00 -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 218.5 706.6 m 270.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 706.6 m 274.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 706.6 m 326.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 706.6 m 330.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 706.6 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 386.5 706.6 m 438.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 706.6 m 442.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 706.6 m 494.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 706.6 m 498.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 706.6 m 550.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 677.6 m 270.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 706.6 m 326.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 677.6 m 326.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 677.6 m 382.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 677.6 m 438.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 706.6 m 494.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 677.6 m 494.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 706.6 m 550.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 677.6 m 550.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 677.6 m 270.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 677.6 m 326.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 677.6 m 382.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 677.6 m 438.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 677.6 m 494.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 677.6 m 550.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 617.6 m 270.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 617.6 m 326.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 617.6 m 382.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 617.6 m 438.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 617.6 m 494.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 617.6 m 550.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 617.6 m 270.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 603.6 m 270.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 601.6 m 270.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 617.6 m 326.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 603.6 m 326.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 601.6 m 326.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 617.6 m 382.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 603.6 m 382.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 601.6 m 382.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 617.6 m 438.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 603.6 m 438.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 601.6 m 438.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 617.6 m 494.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 603.6 m 494.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 601.6 m 494.5 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 617.6 m 550.5 617.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 603.6 m 550.5 603.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 601.6 m 550.5 601.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 709.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.75 710.83 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.05 710.83 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 680.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.05 697.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 243.68 697.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.20 689.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.95 681.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.30 689.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.10 681.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.00 681.83 Td (Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.05 697.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 411.68 697.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.20 689.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.95 681.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.30 689.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.10 681.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 681.83 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 668.17 Td (Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 667.27 Td (70,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 667.27 Td (\(56,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 667.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 667.27 Td (13,885) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 667.27 Td (71,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 667.32 Td (\(55,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 667.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 667.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 667.27 Td (15,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 653.17 Td (Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 652.27 Td (15,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 652.27 Td (\(10,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 652.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 652.27 Td (5,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 652.27 Td (16,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 652.32 Td (\(9,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 652.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 652.27 Td (6,438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 638.17 Td (Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 637.27 Td (390) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.30 637.27 Td (\(344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 637.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 637.27 Td (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 637.27 Td (399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 637.32 Td (\(349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 637.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 637.27 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 622.27 Td (In-process research& development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 622.27 Td (363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.65 622.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 622.27 Td (363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 622.27 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 622.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 622.27 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 607.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.00 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 607.27 Td (86,958) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 607.27 Td (\(66,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 607.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 607.27 Td (20,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 607.27 Td (88,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 607.32 Td (\(65,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 607.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 607.27 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 579.10 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 68.00 555.10 Td (Amortization expense for intangible assets for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.88 555.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.20 555.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.70 555.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.29 555.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.73 555.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.32 555.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.87 555.10 Td ($2.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 543.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 543.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.33 543.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.22 543.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 217.88 543.10 Td (, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.65 543.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.54 543.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.98 543.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.87 543.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 455.53 543.10 Td (, for amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 531.10 Td (existing technology) Tj ET Q q 0 0 0 rg BT 145.95 531.10 Td (. ) Tj ET Q q 0 0 0 rg BT 150.77 531.10 Td (The change in the accumulated amortization also includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.12 531.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.02 531.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.45 531.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.35 531.10 Td ( of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 519.10 Td (exchange impact for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.84 519.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.15 519.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 519.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.25 519.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.69 519.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.27 519.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 461.94 519.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 495.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.50 495.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.10 495.10 Td (, estimated amortization expense for the remainder of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.56 495.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.56 495.10 Td (, the next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.99 495.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.54 495.10 Td ( succeeding fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 483.10 Td (and all fiscal years thereafter are as follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 443.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 443.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 413.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 413.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 383.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 383.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 353.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 353.60 82.00 -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 468.5 443.6 m 550.5 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 443.6 m 550.5 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 338.6 m 550.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 338.6 m 550.5 338.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 324.6 m 550.5 324.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 322.6 m 550.5 322.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 446.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.65 463.83 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.10 455.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 447.83 Td (Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 433.27 Td (2016 \(remainder\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 433.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 433.27 Td (5,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 418.27 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 418.27 Td (6,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 403.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 403.27 Td (4,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 388.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 388.27 Td (2,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 373.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 373.27 Td (684) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 358.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 358.27 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 343.27 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 343.27 Td (103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 328.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 328.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 328.27 Td (20,070) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 154.57 300.10 Td ( DET) Tj ET Q q 0 0 0 rg BT 176.88 300.10 Td (AILS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 276.10 Td (Inventories consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 244.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 244.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 244.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 244.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 214.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 214.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 214.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 214.60 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 406.5 244.60000000000002 m 476.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 244.60000000000002 m 550.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 244.60000000000002 m 476.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 244.60000000000002 m 550.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 199.60000000000002 m 476.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 199.60000000000002 m 550.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 199.60000000000002 m 476.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 185.60000000000002 m 476.5 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 183.60000000000002 m 476.5 183.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 199.60000000000002 m 550.5 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 185.60000000000002 m 550.5 185.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 183.60000000000002 m 550.5 183.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 247.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 256.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 248.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 256.83 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 248.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 234.27 Td (Purchased parts and assemblies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 234.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 234.28 Td (49,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 234.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 234.27 Td (50,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 219.27 Td (Work-in-process) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 219.28 Td (60,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 219.27 Td (56,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 204.27 Td (Finished goods) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 204.28 Td (48,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 204.27 Td (50,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 189.27 Td (Total inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 189.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 189.28 Td (158,006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 189.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 189.27 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 173.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 161.10 Td (Prepaid expenses and other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 129.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 129.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 129.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 129.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 99.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 99.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 99.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 99.60 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 406.5 129.60000000000002 m 476.5 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 129.60000000000002 m 550.5 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 129.60000000000002 m 476.5 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 129.60000000000002 m 550.5 129.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 84.60000000000002 m 476.5 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 84.60000000000002 m 550.5 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 84.60000000000002 m 476.5 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 70.60000000000002 m 476.5 70.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 68.60000000000002 m 476.5 68.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 84.60000000000002 m 550.5 84.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 70.60000000000002 m 550.5 70.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 68.60000000000002 m 550.5 68.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 132.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 141.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 133.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 141.83 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 133.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 119.27 Td (Prepaid and refundable income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 119.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 119.28 Td (9,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 119.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 119.27 Td (8,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 104.27 Td (Other taxes receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 104.28 Td (6,844) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 104.27 Td (6,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 89.27 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 89.28 Td (16,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 89.27 Td (12,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 74.27 Td (Total prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 74.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 74.28 Td (32,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 74.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 74.27 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 58.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 46.10 Td (Other assets consist of the following \(in thousands\):) 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 (18) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 727.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 727.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 727.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 727.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 697.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 697.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 697.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 697.50 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 406.5 727.5 m 476.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 727.5 m 550.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 727.5 m 476.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 727.5 m 550.5 727.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 682.5 m 476.5 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 682.5 m 550.5 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 682.5 m 476.5 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 668.5 m 476.5 668.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 666.5 m 476.5 666.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 682.5 m 550.5 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 668.5 m 550.5 668.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 666.5 m 550.5 666.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 730.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 739.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 731.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 739.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 731.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 717.17 Td (Assets related to deferred compensation arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 717.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 717.18 Td (26,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 717.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 717.17 Td (25,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 702.17 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 702.18 Td (64,118) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 702.17 Td (60,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 687.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 687.18 Td (3,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 687.17 Td (3,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 672.17 Td (Total other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 672.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 672.18 Td (93,871) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 672.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 672.17 Td (89,226) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 644.00 Td (On June 8, 2010, we invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.54 644.00 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.43 644.00 Td ( in SiOnyx, a privately-held company) Tj ET Q q 0 0 0 rg BT 387.30 644.00 Td (. ) Tj ET Q q 0 0 0 rg BT 392.12 644.00 Td (The investment was included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 632.00 Td (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 68.00 620.00 Td (became other) Tj ET Q q 0 0 0 rg BT 121.38 620.00 Td (-than temporarily impaired. ) Tj ET Q q 0 0 0 rg BT 233.57 620.00 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 551.05 620.00 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 608.00 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.83 608.00 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.72 608.00 Td ( in our results of operations to impair this investment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 584.00 Td (Other current liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 552.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 552.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 552.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 552.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 522.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 522.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 522.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 522.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 492.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 492.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 492.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 492.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 462.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 462.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 462.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 462.50 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 406.5 552.5 m 476.5 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 552.5 m 550.5 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 552.5 m 476.5 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 552.5 m 550.5 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 462.5 m 476.5 462.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 462.5 m 550.5 462.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 462.5 m 476.5 462.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 448.5 m 476.5 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 446.5 m 476.5 446.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 462.5 m 550.5 462.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 448.5 m 550.5 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 446.5 m 550.5 446.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 555.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 564.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 556.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 564.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 556.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 542.17 Td (Accrued payroll and benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 542.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 542.18 Td (27,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 542.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 542.17 Td (35,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 527.17 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 527.18 Td (16,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 527.17 Td (16,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 512.17 Td (Warranty reserve) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 512.18 Td (14,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 512.17 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 497.17 Td (Accrued expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 497.18 Td (11,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 497.17 Td (10,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 482.17 Td (Other taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 482.18 Td (5,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 482.17 Td (4,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 467.17 Td (Customer deposits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 467.18 Td (2,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 467.17 Td (1,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 452.17 Td (Total other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 452.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 452.18 Td (79,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 452.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 452.17 Td (84,932) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 424.00 Td (Components of the reserve for warranty costs during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.99 424.00 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.54 424.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.02 424.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.02 424.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.46 424.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.46 424.00 Td ( were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 412.00 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 367.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 367.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 367.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 367.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 337.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 337.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 337.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 337.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 307.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 307.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 307.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 307.50 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 406.5 388.5 m 476.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 388.5 m 480.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 388.5 m 550.5 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 367.5 m 476.5 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 367.5 m 550.5 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 367.5 m 476.5 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 367.5 m 480.5 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 367.5 m 550.5 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 307.5 m 476.5 307.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 307.5 m 550.5 307.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 307.5 m 476.5 307.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 293.5 m 476.5 293.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 291.5 m 476.5 291.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 307.5 m 550.5 307.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 293.5 m 550.5 293.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 291.5 m 550.5 291.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 391.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.60 392.73 Td (Thr) Tj ET Q q 0 0 0 rg BT 454.79 392.73 Td (ee Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 370.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 379.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 371.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.75 379.73 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 371.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 357.17 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 357.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 357.18 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 357.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 357.17 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 342.17 Td (Additions related to current period sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 342.18 Td (4,954) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 342.17 Td (5,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 327.17 Td (Warranty costs incurred in the current period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 446.80 327.23 Td (\(5,390) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.65 327.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.80 327.22 Td (\(5,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 327.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 312.17 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 454.30 312.23 Td (\(227) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.65 312.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 312.22 Td (\(830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 312.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 297.17 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 297.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 297.18 Td (14,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 297.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 297.17 Td (16,604) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 281.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 269.00 Td (Other long-term liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 237.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 237.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 237.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 237.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 207.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 207.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 207.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 207.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 177.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 177.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 177.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 177.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 147.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 147.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 147.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 147.50 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 406.5 237.5 m 476.5 237.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 237.5 m 550.5 237.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 237.5 m 476.5 237.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 237.5 m 550.5 237.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 147.5 m 476.5 147.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 147.5 m 550.5 147.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 147.5 m 476.5 147.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 133.5 m 476.5 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 131.5 m 476.5 131.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 147.5 m 550.5 147.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 133.5 m 550.5 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 131.5 m 550.5 131.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 240.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.75 249.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 241.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 249.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 241.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 227.17 Td (Long-term taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 227.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 227.18 Td (7,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 227.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 227.17 Td (7,651) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 212.17 Td (Deferred compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 212.18 Td (27,753) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 212.17 Td (26,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 197.17 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 197.18 Td (2,754) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 197.17 Td (2,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 182.17 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 182.18 Td (3,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 182.17 Td (3,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 167.17 Td (Asset retirement obligations liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 167.18 Td (2,625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 167.17 Td (2,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 152.17 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 152.18 Td (7,165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 152.17 Td (7,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 137.17 Td (Total other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 137.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 137.18 Td (51,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 137.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 137.17 Td (49,939) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 121.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 109.00 Td (9. SHOR) Tj ET Q q 0 0 0 rg BT 97.99 109.00 Td (T) Tj ET Q q 0 0 0 rg BT 103.74 109.00 Td (-TERM BORROWINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 85.00 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 85.00 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 422.80 85.00 Td (. ) Tj ET Q q 0 0 0 rg BT 427.62 85.00 Td (W) Tj ET Q q 0 0 0 rg BT 436.26 85.00 Td (e have a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.61 85.00 Td ($12.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.51 85.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 73.00 Td (of unsecured foreign lines of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.38 73.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.98 73.00 Td (. ) Tj ET Q q 0 0 0 rg BT 300.43 73.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.93 73.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.53 73.00 Td (, we had used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.46 73.00 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.35 73.00 Td ( of these available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 61.00 Td (foreign lines of credit as guarantees. ) Tj ET Q q 0 0 0 rg BT 215.26 61.00 Td (These credit facilities were used in Europe and Japan during the first three months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 49.00 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.16 49.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.16 49.00 Td (. In addition, our domestic line of credit consists of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.72 49.00 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.61 49.00 Td ( unsecured revolving credit account. ) Tj ET Q q 0 0 0 rg BT 527.15 49.00 Td (The ) 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 (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (agreement will expire on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.18 742.10 Td (May31, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.01 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 230.83 742.10 Td (The line of credit is subject to covenants related to financial ratios and tangible net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (worth with which we are currently in compliance. ) Tj ET Q q 0 0 0 rg BT 269.69 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 278.33 730.10 Td (e have an outstanding balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.61 730.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 730.10 Td ( and have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 730.10 Td ($1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 718.10 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 337.09 718.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.69 718.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 694.10 Td (10.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 694.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 694.10 Td (ST) Tj ET Q q 0 0 0 rg BT 81.55 694.10 Td (OCK-BASED COMPENSA) Tj ET Q q 0 0 0 rg BT 199.98 694.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 682.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 670.10 Td (Fair) Tj ET Q q 0 0 0 rg BT 88.14 670.10 Td ( ) Tj ET Q q 0 0 0 rg BT 90.46 670.10 Td (V) Tj ET Q q 0 0 0 rg BT 96.77 670.10 Td (alue of Stock Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 78.64 646.10 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 520.78 646.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 634.10 Td (expense is recognized on a straight-line basis over the respective requisite service period of the awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 622.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 610.10 Td (Determining Fair) Tj ET Q q 0 0 0 rg BT 144.52 610.10 Td ( ) Tj ET Q q 0 0 0 rg BT 146.84 610.10 Td (V) Tj ET Q q 0 0 0 rg BT 153.14 610.10 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 586.10 Td (The fair values of shares purchased under the Employee Stock Purchase Plan \(ESPP\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.72 586.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.03 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 574.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.60 574.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.04 574.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.62 574.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 284.28 574.10 Td (,were estimated using the following weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 562.10 Td (assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 502.60 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 502.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 502.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 502.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 502.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 472.60 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 472.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 472.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 472.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 472.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 442.60 210.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 442.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 442.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 442.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 442.60 60.00 -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 284.5 536.6 m 344.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 536.6 m 348.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 536.6 m 408.5 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 523.6 m 344.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 523.6 m 348.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 523.6 m 408.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 523.6 m 344.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 502.6 m 344.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 523.6 m 348.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 523.6 m 408.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 502.6 m 408.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 502.6 m 344.5 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 502.6 m 408.5 502.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.05 540.83 Td (EmployeeStockPurchasePlan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.60 527.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.75 514.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.00 506.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.75 514.83 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.00 506.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 492.27 Td (Expected life in years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.50 492.28 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 492.27 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 477.27 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.50 477.28 Td (28.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.00 477.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 477.27 Td (24.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 477.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 462.27 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.50 462.28 Td (0.19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.00 462.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 462.27 Td (0.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 462.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 447.27 Td (Expected dividend yield) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.00 447.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.00 447.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 447.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 447.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 422.27 Td (Weighted average fair value per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 422.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.50 422.28 Td (13.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 422.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 422.27 Td (13.97) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 394.10 Td (There were no stock options granted during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.61 394.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.92 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.42 394.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.02 394.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.46 394.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.04 394.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 78.64 370.10 Td (e grant performance restricted stock units to of) Tj ET Q q 0 0 0 rg BT 265.33 370.10 Td (ficers and certain employees. ) Tj ET Q q 0 0 0 rg BT 386.76 370.10 Td (The performance restricted stock unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 358.10 Td (agreements provide for the award of performance restricted stock units with each unit representing the right to receive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 346.10 Td (one share of our common stock to be issued after the applicable award vesting period. ) Tj ET Q q 0 0 0 rg BT 415.82 346.10 Td (The final number of units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 334.10 Td (awarded, if any) Tj ET Q q 0 0 0 rg BT 131.26 334.10 Td (, for these performance grants will be determined as of the vesting dates, based upon our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 322.10 Td (shareholder return over the performance period compared to the Russell 2000 Index and could range from no units to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 310.10 Td (a maximum of twice the initial award units. ) Tj ET Q q 0 0 0 rg BT 246.72 310.10 Td (The weighted average fair value for these performance units was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 298.10 Td (determined using a Monte Carlo simulation model incorporating the following weighted average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 257.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 257.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 257.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 257.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 257.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 229.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 229.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 229.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 229.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 229.60 100.00 -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 280.5 272.6 m 284.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 272.6 m 384.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 272.6 m 488.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 272.6 m 284.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 257.6 m 284.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 272.6 m 384.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 257.6 m 384.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 272.6 m 488.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 257.6 m 488.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 257.6 m 284.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 257.6 m 384.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 257.6 m 488.5 257.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.60 276.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 362.79 276.83 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.75 261.83 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.75 261.83 Td (December 27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 248.17 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.50 248.28 Td (1.20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 248.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 248.17 Td (0.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 248.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 234.17 Td (Volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.50 234.28 Td (27.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 234.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 234.17 Td (28.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 234.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 220.17 Td (Weighted average fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 353.50 220.28 Td ($74.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 220.17 Td ($70.57) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 192.10 Td (W) Tj ET Q q 0 0 0 rg BT 78.64 192.10 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 70.00 180.10 Td (period, 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 70.00 168.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 156.10 Td (Stock Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 144.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 132.10 Td (The following table shows total stock-based compensation expense and related tax benefits included in the condensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 120.10 Td (consolidated statements of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.62 120.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.93 120.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.43 120.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.03 120.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.46 120.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.05 120.10 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 108.10 Td (thousands\):) 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 (20) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 717.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 717.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 717.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 717.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 689.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 689.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 689.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 689.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 661.50 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 661.50 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 661.50 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 661.50 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 280.5 736.5 m 340.5 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 736.5 m 344.5 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 736.5 m 404.5 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 736.5 m 340.5 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 717.5 m 340.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 736.5 m 344.5 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 736.5 m 404.5 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 717.5 m 404.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 717.5 m 340.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 717.5 m 404.5 717.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 661.5 m 340.5 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 661.5 m 404.5 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 661.5 m 340.5 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 648.5 m 340.5 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 646.5 m 340.5 646.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 661.5 m 404.5 661.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 648.5 m 404.5 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 646.5 m 404.5 646.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.60 740.58 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.75 728.58 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.00 720.58 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.75 728.58 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.00 720.58 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 708.07 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.00 708.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 708.18 Td (605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 708.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 708.07 Td (597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 694.07 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 694.18 Td (426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 694.07 Td (330) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 680.07 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.15 680.18 Td (2,714) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 680.07 Td (3,463) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 666.07 Td (Income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 318.30 666.23 Td (\(351) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 666.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.30 666.12 Td (\(430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 666.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.00 652.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.15 652.18 Td (3,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 652.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 652.07 Td (3,960) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 624.00 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.55 624.00 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.86 624.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.36 624.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.96 624.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.96 624.00 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.85 624.00 Td ( was capitalized into inventory for all stock plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.46 624.00 Td ($0.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 612.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 612.00 Td ( was amortized to cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.52 612.00 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.41 612.00 Td ( remained in inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.43 612.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.03 612.00 Td (.During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.58 612.00 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 600.00 Td (months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.83 600.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.33 600.00 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.91 600.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.91 600.00 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.80 600.00 Td ( was capitalized into inventory for all stock plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.41 600.00 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.30 600.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 588.00 Td (amortized to cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.07 588.00 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.97 588.00 Td ( remained in inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.99 588.00 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.57 588.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 576.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 564.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 564.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.10 564.00 Td (, 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 70.00 552.00 Td (the Company) Tj ET Q q 0 0 0 rg BT 126.38 552.00 Td (s stock plans but not yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.94 552.00 Td ($30.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.83 552.00 Td (, net of estimated forfeitures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 540.00 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.89 540.00 Td (. ) Tj ET Q q 0 0 0 rg BT 123.71 540.00 Td (This cost will be amortized on a straight-line basis over a weighted-average period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.74 540.00 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.24 540.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 528.00 Td (years and will be adjusted for subsequent changes in estimated forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 504.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 504.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.10 504.00 Td (, total compensation cost related to options to purchase common shares under the ESPP) Tj ET Q q 0 0 0 rg BT 495.66 504.00 Td ( but not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 492.00 Td (vested was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.36 492.00 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.25 492.00 Td (, which will be recognized over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.53 492.00 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.20 492.00 Td ( month of) Tj ET Q q 0 0 0 rg BT 418.91 492.00 Td (fering period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 480.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 468.00 Td (Stock ) Tj ET Q q 0 0 0 rg BT 95.84 468.00 Td (A) Tj ET Q q 0 0 0 rg BT 102.32 468.00 Td (wards ) Tj ET Q q 0 0 0 rg BT 130.38 468.00 Td (Activity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 444.00 Td (The following table summarizes the activity of our time-based and performance restricted stock units for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.97 444.00 Td (first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 432.00 Td (three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.93 432.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.42 432.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.42 432.00 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 350.50 270.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 350.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 350.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 350.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 350.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 350.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 350.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 350.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 320.50 270.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 320.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 320.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 320.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 320.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 320.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 320.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 320.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 290.50 270.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 290.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 390.50 290.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 290.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 290.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 290.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 290.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 502.50 290.50 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 340.5 389.5 m 390.5 389.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 390.5 389.5 m 394.5 389.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 389.5 m 444.5 389.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 389.5 m 498.5 389.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 389.5 m 502.5 389.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 389.5 m 552.5 389.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 350.5 m 390.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 350.5 m 444.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 350.5 m 498.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 350.5 m 552.5 350.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 290.5 m 390.5 290.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 276.5 m 390.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 274.5 m 390.5 274.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 290.5 m 498.5 290.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 276.5 m 498.5 276.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 274.5 m 498.5 274.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.40 401.58 Td (Time Based Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.30 393.58 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.20 401.58 Td (Performance Restricted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.30 393.58 Td (Stock Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.50 362.73 Td (Number) Tj ET Q q 0 0 0 rg BT 374.80 362.73 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 354.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 369.80 354.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.75 378.73 Td (W) Tj ET Q q 0 0 0 rg BT 410.31 378.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.05 370.73 Td (A) Tj ET Q q 0 0 0 rg BT 410.23 370.73 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.55 362.73 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.15 354.73 Td (Fair) Tj ET Q q 0 0 0 rg BT 415.67 354.73 Td ( ) Tj ET Q q 0 0 0 rg BT 417.52 354.73 Td (V) Tj ET Q q 0 0 0 rg BT 422.56 354.73 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.50 362.73 Td (Number) Tj ET Q q 0 0 0 rg BT 482.80 362.73 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.50 354.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 477.80 354.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.75 378.73 Td (Weighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.05 370.73 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.55 362.73 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.15 354.73 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 340.17 Td (Nonvested stock at October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 340.17 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.00 340.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 340.17 Td (65.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 340.17 Td (199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.00 340.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 340.17 Td (67.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 325.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 325.17 Td (231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 325.17 Td (61.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 325.17 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 325.17 Td (74.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 310.17 Td (V) Tj ET Q q 0 0 0 rg BT 79.11 310.17 Td (ested ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 102.16 314.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.30 310.22 Td (\(168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 310.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 310.17 Td (60.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 310.22 Td (\(57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 310.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 310.17 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 295.17 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.30 295.22 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 295.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 295.17 Td (65.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 295.22 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 295.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 295.17 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 280.17 Td (Nonvested stock at January 2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 280.17 Td (456) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.00 280.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 280.17 Td (64.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 280.17 Td (161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.00 280.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 280.17 Td (74.09) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 252.00 Td (__________________________________________) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 233.40 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 88.00 233.40 Td (Service-based restricted stock units vested during each fiscal year) Tj ET Q q 0 0 0 rg BT 297.70 233.40 Td (. Performance-based awards and units included at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 458.53 233.40 Td (100%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 477.20 233.40 Td ( of tar) Tj ET Q q 0 0 0 rg BT 496.15 233.40 Td (get goal; ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 223.80 Td (under the terms of the awards, the recipient may earn between ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 270.80 223.80 Td (0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.47 223.80 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.02 223.80 Td (200%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 315.68 223.80 Td ( of the award.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 192.60 Td (1) Tj ET Q q 0 0 0 rg BT 54.45 192.60 Td (1.) Tj ET Q BT /F2 3.00 Tf ET q 0 0 0 rg BT 61.95 192.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.70 192.60 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.20 192.60 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 150.15 192.60 Td (AND CONTINGENCIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 168.60 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 168.60 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 510.05 168.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 156.60 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 473.92 156.60 Td (. On May 14, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 144.60 Td (IMRA) Tj ET Q q 0 0 0 rg BT 93.56 144.60 Td ( ) Tj ET Q q 0 0 0 rg BT 95.51 144.60 Td (America \(Imra\) filed a complaint for patent infringement against two of our subsidiaries in the Regional Court of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 132.60 Td (Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 153.44 132.60 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 246.47 132.60 Td ( ) Tj ET Q q 0 0 0 rg BT 248.42 132.60 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 534.55 132.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 120.60 Td (complaint alleges that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 296.54 120.60 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 400.05 120.60 Td ( Patent No. 754,103, entitled Method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 108.60 Td (For Controlling Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 326.84 108.60 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 478.30 108.60 Td (The patent, now ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 96.60 Td (expired in all jurisdictions, is owned by the University of Michigan and licensed to Imra. ) Tj ET Q q 0 0 0 rg BT 425.80 96.60 Td (The complaint seeks unspecified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 84.60 Td (compensatory damages, the cost of court proceedings and seeks to permanently enjoin the Company from infringing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 72.60 Td (patent in the future. Following the filing of the infringement suit, our subsidiaries filed a separate nullity action with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 60.60 Td (Federal Patent Court in Munich, Germany requesting that the court hold that the Patent was invalid based on prior art. On ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 48.60 Td (October 1, 2015, the Federal Patent Court ruled that the German portion of the Patent was invalid. Imra has filed a notice ) 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 (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (to appeal this decision to the German Supreme Court. ) Tj ET Q q 0 0 0 rg BT 284.99 742.10 Td (The infringement action is currently stayed pending the outcome of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (such appeal. 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 68.00 718.10 Td (knowledge, that the amount or range of reasonably possible losses in excess of the amounts already accrued, is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 156.58 706.10 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 68.00 694.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 108.63 694.10 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 68.00 682.10 Td (matters could negatively af) Tj ET Q q 0 0 0 rg BT 176.39 682.10 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 369.94 682.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 317.20 658.10 Td (fs and duties on the import and export of certain products we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (sell. From time to time our duty calculations and payments are audited by government agencies. ) Tj ET Q q 0 0 0 rg BT 459.66 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 468.30 646.10 Td (e are currently under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 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 482.90 634.10 Td (Although we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (not expect that the audit will ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 331.88 622.10 Td (fect on our condensed consolidated financial position, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (results of operations or cash flows, an adverse result in this matter could negatively af) Tj ET Q q 0 0 0 rg BT 411.33 610.10 Td (fect our results in the period in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (it occurs. ) Tj ET Q q 0 0 0 rg BT 106.60 598.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.05 598.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.65 598.10 Td (, management has accrued an estimated liability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.85 598.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.74 598.10 Td ( related to this matter) Tj ET Q q 0 0 0 rg BT 533.31 598.10 Td (, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td (which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.94 586.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.83 586.10 Td ( had been paid to date in the second quarter of fiscal 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (12. ST) Tj ET Q q 0 0 0 rg BT 79.55 550.10 Td (OCK REPURCHASE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td (On July 25, 2014, 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 68.00 514.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 514.10 Td ( of our common stock from time to time through July 31, 2015. During the first quarter of fiscal 2015, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.34 502.10 Td (300,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.84 502.10 Td (shares of outstanding common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.98 502.10 Td ($57.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.48 502.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td ($17.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 490.10 Td (, excluding expenses. During the second quarter of fiscal 2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.04 490.10 Td (133,673) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.54 490.10 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (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 328.76 478.10 Td ($57.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.26 478.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.83 478.10 Td ($7.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.72 478.10 Td (, completing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td (the repurchase program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (On January 21, 2015, 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 533.41 442.10 Td ($25.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 430.10 Td ( of our outstanding common stock from time to time through January 31, 2016. During the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.50 418.10 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 418.10 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 68.00 406.10 Td ($58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 406.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.07 406.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.96 406.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 386.10 Td (On ) Tj ET Q q 0 0 0 rg BT 82.17 386.10 Td (August25, 2015, 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 530.65 386.10 Td ($25.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 374.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 374.10 Td ( of our outstanding common stock from time to time through ) Tj ET Q q 0 0 0 rg BT 342.14 374.10 Td (August31, 2016. During the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 362.10 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.50 362.10 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 362.10 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 68.00 350.10 Td ($57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 350.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.07 350.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.96 350.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (13. EARNINGS PER SHARE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 290.10 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 67.50 278.10 Td (excluding unvested restricted stock. Diluted earnings per share is computed based on the weighted average number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 266.10 Td (shares outstanding during the period increased by the ef) Tj ET Q q 0 0 0 rg BT 290.59 266.10 Td (fect of dilutive employee stock awards, including stock options, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 254.10 Td (restricted stock awards and stock purchase plan contracts, using the treasury stock method.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 242.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 230.10 Td (The following table presents information necessary to calculate basic and diluted earnings per share \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 218.10 Td (per share data\):) 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 (22) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 714.50 190.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 714.50 66.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 714.50 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 714.50 65.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 714.50 4.00 -17.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 682.50 190.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 682.50 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 682.50 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 682.50 65.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 682.50 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 643.50 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 643.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 643.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 643.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 613.50 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 613.50 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 613.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 613.50 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 613.50 4.00 -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 258 735.5 m 324 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 735.5 m 328 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 735.5 m 393 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 735.5 m 324 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 714.5 m 324 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 735.5 m 393 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 714.5 m 393 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 714.5 m 324 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 714.5 m 393 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 682.5 m 324 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 682.5 m 393 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 682.5 m 324 682.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 659.5 m 324 659.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 657.5 m 324 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 659.5 m 393 659.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 657.5 m 393 657.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 629.5 m 324 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 627.5 m 324 627.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 629.5 m 393 629.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 627.5 m 393 627.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.60 739.73 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 717.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.25 726.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.50 718.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.75 726.73 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.00 718.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 702.17 Td (Weighted average shares outstanding basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.65 702.18 Td (23,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 702.17 Td (24,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 687.17 Td (Dilutive effect of employee stock awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.15 687.18 Td (240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 687.17 Td (261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 673.07 Td (Weighted average shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 663.07 Td (diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.65 663.18 Td (24,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 663.17 Td (25,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 633.17 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.50 633.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.65 633.18 Td (20,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 633.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 633.17 Td (17,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 603.17 Td (Net income per basic share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.50 603.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.65 603.18 Td (0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 603.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 603.17 Td (0.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 588.17 Td (Net income per diluted share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.50 588.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.65 588.18 Td (0.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 588.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 588.17 Td (0.69) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 560.00 Td (A) Tj ET Q q 0 0 0 rg BT 74.17 560.00 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.77 560.00 Td (32,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.27 560.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.71 560.00 Td (159,618) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.21 560.00 Td ( potentially dilutive securities have been excluded from the diluted share calculation for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 548.00 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.81 548.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.31 548.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.91 548.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.35 548.00 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.93 548.00 Td (, respectively as their ef) Tj ET Q q 0 0 0 rg BT 404.99 548.00 Td (fect was anti-dilutive. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 536.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 524.00 Td (14.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 524.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 524.00 Td (OTHER INCOME \(EXPENSE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 512.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 500.00 Td (Other income \(expense\) is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 455.50 186.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 455.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 455.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 455.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 455.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 415.50 186.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 415.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 415.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 415.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 415.50 4.00 -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 254.5 476.5 m 324.5 476.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 476.5 m 328.5 476.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 476.5 m 398.5 476.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 455.5 m 324.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 455.5 m 398.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 455.5 m 324.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 455.5 m 398.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 400.5 m 324.5 400.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 400.5 m 398.5 400.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 386.5 m 324.5 386.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 384.5 m 324.5 384.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 386.5 m 398.5 386.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 384.5 m 398.5 384.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 479.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.60 480.73 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 458.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 270.75 467.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.00 459.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.75 467.73 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.00 459.73 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 445.17 Td (Foreign exchange loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.00 445.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.80 445.18 Td (\(1,322) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.65 445.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.80 445.22 Td (\(1,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 445.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 430.17 Td (Gain on deferred compensation investments,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 420.17 Td (net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.65 420.18 Td (875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 420.17 Td (384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 405.17 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.65 405.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 405.17 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 390.17 Td (Other - net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.00 390.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.30 390.18 Td (\(447) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.65 390.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.00 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.30 390.22 Td (\(770) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 390.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 362.00 Td (15.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.00 362.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 362.00 Td (INCOME) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.72 362.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.22 362.00 Td (T) Tj ET Q q 0 0 0 rg BT 118.15 362.00 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 350.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 338.00 Td (Income tax expense includes a provision for federal, state and foreign taxes based on the annual estimated ef) Tj ET Q q 0 0 0 rg BT 502.10 338.00 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 326.00 Td (applicable to us and our subsidiaries, adjusted for items which are considered discrete to the period. Our ef) Tj ET Q q 0 0 0 rg BT 494.63 326.00 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 314.00 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.88 314.00 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.19 314.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.69 314.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.29 314.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.84 314.00 Td (25.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.67 314.00 Td (.Our ef) Tj ET Q q 0 0 0 rg BT 318.31 314.00 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.09 314.00 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.40 314.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.90 314.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.50 314.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 302.00 Td (was lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.56 302.00 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.89 302.00 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 310.25 302.00 Td (ferences related to the benefit of income subject to foreign tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 290.00 Td (rates that are lower than U.S. tax rates including the Singapore tax exemption, the benefit of foreign tax credits and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 278.00 Td (benefit of federal research and development tax credits including renewal of the federal research and development tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 266.00 Td (credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 160.29 266.00 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 281.73 266.00 Td (fset by deemed dividend inclusions under the Subpart F tax rules, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 254.00 Td (stock-based compensation not deductible for tax purposes and limitations on the deductibility of compensation under IRC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 242.00 Td (Section 162\(m\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 218.00 Td (The ef) Tj ET Q q 0 0 0 rg BT 93.63 218.00 Td (fective tax rate on income before income taxes for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.87 218.00 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.98 218.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.28 218.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.28 218.00 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.61 218.00 Td (26.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.44 218.00 Td ( was lower than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 206.00 Td (statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.81 206.00 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.64 206.00 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 240.00 206.00 Td (ferences related to the benefit of income subject to foreign tax rates that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 194.00 Td (lower than U.S. tax rates including South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 182.00 Td (benefit of federal research and development tax credits including renewal of the federal research and development tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 170.00 Td (credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 160.29 170.00 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 281.73 170.00 Td (fset by deemed dividend inclusions under the Subpart F tax rules, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 158.00 Td (stock-based compensation not deductible for tax purposes and limitations on the deductibility of compensation under IRC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 146.00 Td (Section 162\(m\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 122.00 Td (Determining the consolidated provision for income taxes, income tax liabilities and deferred tax assets and liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 110.00 Td (involves judgment. ) Tj ET Q q 0 0 0 rg BT 146.98 110.00 Td (W) Tj ET Q q 0 0 0 rg BT 155.62 110.00 Td (e calculate and provide for income taxes in each of the tax jurisdictions in which we operate, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 98.00 Td (involves estimating current tax exposures as well as making judgments regarding the recoverability of deferred tax assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 86.00 Td (in each jurisdiction. ) Tj ET Q q 0 0 0 rg BT 149.46 86.00 Td (The estimates used could dif) Tj ET Q q 0 0 0 rg BT 263.70 86.00 Td (fer from actual results, which may have a significant impact on operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 74.00 Td (results in future periods. ) 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 (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 742.10 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 68.00 730.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 359.51 730.10 Td (1 are closed. In our major foreign jurisdictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (and our major state jurisdictions, the years prior to 2006 and 201) Tj ET Q q 0 0 0 rg BT 326.46 718.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 384.12 718.10 Td (, are closed to examination. Earlier years in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (our various jurisdictions may remain open for adjustment to the extent that we have tax attribute carryforwards from those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (years. In December 201) Tj ET Q q 0 0 0 rg BT 163.14 694.10 Td (1 and January 2012, three of our German subsidiaries received notices of tax audits for the fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (years 2006 through 2010. In fiscal year 2013, we received a preliminary assessment for two of the German subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (and the amount is immaterial. In September 2015, the German tax authorities issued preliminary tax findings for Coherent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (GmbH for the years 2006 to 2010 and Coherent management met with the German tax authorities in December 2015 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (discuss the preliminary assessments. In July 2015, Coherent Kaiserslautern GmbH \(formerly Lumera Laser GmbH\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (received a tax audit notice for the years 2010 to 2013. ) Tj ET Q q 0 0 0 rg BT 285.52 634.10 Td (The audit began in ) Tj ET Q q 0 0 0 rg BT 362.17 634.10 Td (August 2015. ) Tj ET Q q 0 0 0 rg BT 418.38 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.01 634.10 Td (e acquired the shares of Lumera ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (Laser GmbH in December 2012 and we should not have responsibility for any assessments related to the pre-acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 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 68.00 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 574.10 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 68.00 562.10 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 68.00 538.10 Td (The Consolidated ) Tj ET Q q 0 0 0 rg BT 140.77 538.10 Td (Appropriations ) Tj ET Q q 0 0 0 rg BT 203.26 538.10 Td (Act of 2016 \(the ) Tj ET Q q 0 0 0 rg BT 275.47 538.10 Td (Act\), was enacted on December 18, 2015. Under the ) Tj ET Q q 0 0 0 rg BT 491.50 538.10 Td (Act, the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td (research and development tax credit was retroactively extended for amounts paid or incurred after December 31, 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td (through December 31, 2015 and the credit was made permanent. ) Tj ET Q q 0 0 0 rg BT 328.84 514.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 354.47 514.10 Td (fects of the change in the tax law are recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (our first quarter of fiscal 2016, which is the quarter that the law was enacted. ) Tj ET Q q 0 0 0 rg BT 377.06 502.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 426.40 502.10 Td (, prior year research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (development tax credits of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.11 490.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.00 490.10 Td (, after netting with appropriate reserves, were recognized in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (quarter of fiscal 2016.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (16. SEGMENT) Tj ET Q q 0 0 0 rg BT 117.33 442.10 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 167.97 442.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 430.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (The following table provides net sales and income from operations for our operating segments and a reconciliation of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.10 Td (total income from operations to net income \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 394.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 349.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 349.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 349.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 349.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 349.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 319.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 319.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 319.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 319.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 319.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 261.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 261.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 261.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 261.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 261.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 231.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 231.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 231.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 231.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 231.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 201.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 201.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 201.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 201.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 201.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 171.60 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 171.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 171.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 171.60 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 171.60 4.00 -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 238.5 370.6 m 313.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 370.6 m 317.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 370.6 m 392.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 370.6 m 313.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 349.6 m 313.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 370.6 m 317.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 370.6 m 392.5 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 349.6 m 392.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 304.6 m 313.5 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 304.6 m 392.5 304.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 290.6 m 313.5 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 288.6 m 313.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 290.6 m 392.5 290.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 288.6 m 392.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 216.60000000000002 m 392.5 216.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 216.60000000000002 m 313.5 216.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 186.60000000000002 m 313.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 186.60000000000002 m 392.5 186.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 156.60000000000002 m 313.5 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 156.60000000000002 m 392.5 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 142.60000000000002 m 313.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 140.60000000000002 m 313.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 156.60000000000002 m 392.5 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 142.60000000000002 m 392.5 142.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 140.60000000000002 m 392.5 140.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 373.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.60 374.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 71.00 353.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.25 361.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.50 353.83 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 332.05 361.85 Td (December 27,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 346.50 353.85 Td (2014) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 71 337.93339843750005 m 110.1552734375 337.93339843750005 l s q 0 0 0 rg BT 71.00 339.27 Td (Net sales:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 324.27 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 324.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 324.28 Td (135,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 324.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 324.27 Td (145,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 309.27 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 309.28 Td (54,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 309.27 Td (55,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 294.27 Td (Total net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 294.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 294.28 Td (190,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 294.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 294.27 Td (200,615) 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 71 264.93339843750005 m 169.857421875 264.93339843750005 l s q 0 0 0 rg BT 71.00 266.27 Td (Income from operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 251.27 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 251.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 251.28 Td (35,795) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 251.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 251.27 Td (34,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 236.27 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.15 236.28 Td (1,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 236.27 Td (703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 221.27 Td (Corporate and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.80 221.28 Td (\(10,327) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.65 221.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 221.32 Td (\(10,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 221.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 206.27 Td (Total income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 206.28 Td (27,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 206.27 Td (24,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 191.27 Td ( Total other expense, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.30 191.28 Td (\(222) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.65 191.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 191.32 Td (\(685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 191.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 176.27 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 176.28 Td (27,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 176.27 Td (23,624) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 161.27 Td ( Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.15 161.28 Td (6,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 161.27 Td (6,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 146.27 Td (Net Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 146.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 146.28 Td (20,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 146.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 146.27 Td (17,430) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td ( Major) Tj ET Q q 0 0 0 rg BT 94.53 118.10 Td ( Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 94.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.51 94.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.95 94.10 Td ( major customer during the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.57 94.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.17 94.10 Td ( who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.58 94.10 Td (17.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.41 94.10 Td ( of consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.10 Td (revenue. ) Tj ET Q q 0 0 0 rg BT 104.46 82.10 Td (W) Tj ET Q q 0 0 0 rg BT 113.10 82.10 Td (e had another major customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.36 82.10 Td (10.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.19 82.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.63 82.10 Td (18.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.46 82.10 Td ( of consolidated revenue for the three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 70.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.33 70.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.92 70.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.36 70.10 Td (December27, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.95 70.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 340.61 70.10 Td (. ) Tj ET Q q 0 0 0 rg BT 345.43 70.10 Td (The customers purchased primarily from our SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 58.10 Td (segment.) 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 (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 742.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.51 742.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.95 742.10 Td ( major customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.35 742.10 Td (22.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.18 742.10 Td ( of accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.29 742.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.89 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 457.71 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 466.34 742.10 Td (e had another major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.07 730.10 Td (16.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.90 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.34 730.10 Td (21.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.17 730.10 Td ( of accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.28 730.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.88 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.32 730.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.02 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 120.48 718.10 Td (The customers purchased primarily from our SLS segment. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (ITEM 2. MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 238.64 694.10 Td (AND ) Tj ET Q q 0 0 0 rg BT 262.26 694.10 Td (ANAL) Tj ET Q q 0 0 0 rg BT 289.67 694.10 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 327.92 694.10 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 386.54 694.10 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 449.89 694.10 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 506.48 694.10 Td (TS OF) Tj ET Q q 0 0 0 rg BT 534.73 694.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 682.10 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td () 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 50 656.53505859375 m 159.83154296875 656.53505859375 l s q 0 0 0 rg BT 50.00 658.10 Td (COMP) Tj ET Q q 0 0 0 rg BT 79.80 658.10 Td (ANY) Tj ET Q q 0 0 0 rg BT 101.10 658.10 Td ( OVER) Tj ET Q q 0 0 0 rg BT 132.14 658.10 Td (VIEW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (BUSINESS BACKGROUND) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 610.10 Td (e are one of the world) Tj ET Q q 0 0 0 rg BT 148.88 610.10 Td (s leading providers of lasers and laser) Tj ET Q q 0 0 0 rg BT 299.18 610.10 Td (-based technology in a broad range of scientific, commercial and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (industrial applications. ) Tj ET Q q 0 0 0 rg BT 143.41 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 152.05 598.10 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 50.00 586.10 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 50.00 574.10 Td (complementary businesses, technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 297.61 574.10 Td (, manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 462.38 574.10 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 550.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 88.43 550.10 Td (ganized into two operating segments: Specialty Lasers and Systems \(SLS\) and Commercial Lasers and Components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (\(CLC\). ) Tj ET Q q 0 0 0 rg BT 89.80 538.10 Td (This segmentation reflects the go-to-market strategies for various products and markets. ) Tj ET Q q 0 0 0 rg BT 443.96 538.10 Td (While both segments deliver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (cost-ef) Tj ET Q q 0 0 0 rg BT 77.03 526.10 Td (fective photonics solutions, SLS develops and manufactures configurable, advanced performance products lar) Tj ET Q q 0 0 0 rg BT 516.43 526.10 Td (gely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (serving the microelectronics, scientific research and government programs and original equipment manufacturer \("OEM"\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 219.51 502.10 Td (The size and complexity of many of the SLS products require service to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (performed at the customer site by factory trained field service engineers. CLC focuses on higher volume products that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 478.10 Td (fered in set configurations. ) Tj ET Q q 0 0 0 rg BT 167.66 478.10 Td (The product architectures are designed for easy exchange at the point of use such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (substantially all product service and repairs are based upon advanced replacement and depot \(i.e., factory\) repair) Tj ET Q q 0 0 0 rg BT 499.25 466.10 Td (. CLC) Tj ET Q q 0 0 0 rg BT 526.48 466.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (primary markets include materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (Income from operations is the measure of profit and loss that our chief operating decision maker \(CODM\) uses to assess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (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 50.00 406.10 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 50.00 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 394.10 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 50.00 382.10 Td (These unallocated costs include stock-based compensation and corporate functions \(certain advanced research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (development, management, finance, legal and human resources\) and are included in Corporate and other) Tj ET Q q 0 0 0 rg BT 467.62 370.10 Td (. Management does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (consider unallocated Corporate and other costs in its measurement of segment performance.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (MARKET) Tj ET Q q 0 0 0 rg BT 94.82 334.10 Td ( ) Tj ET Q q 0 0 0 rg BT 96.77 334.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 140.47 334.10 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (Our products address a broad range of applications that we group into the following markets: Microelectronics, Scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (Research and Government Programs, OEM Components and Instrumentation and Materials Processing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (OUR STRA) Tj ET Q q 0 0 0 rg BT 100.65 274.10 Td (TEGY) 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 (e strive to develop innovative and proprietary products and solutions that meet the needs of our customers and that are based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (on our core expertise in lasers and optical technologies. In pursuit of our strategy) Tj ET Q q 0 0 0 rg BT 373.14 250.10 Td (, we intend to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 229.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 229.10 Td (Leverage our) Tj ET Q q 0 0 0 rg BT 142.74 229.10 Td ( technology portfolio and application engineering to lead the pr) Tj ET Q q 0 0 0 rg BT 411.73 229.10 Td (oliferation of photonics into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 217.10 Td (br) Tj ET Q q 0 0 0 rg BT 95.82 217.10 Td (oader) Tj ET Q q 0 0 0 rg BT 120.08 217.10 Td ( markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.57 217.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.21 217.10 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 86.00 205.10 Td (engineering can be used to of) Tj ET Q q 0 0 0 rg BT 203.28 205.10 Td (fer innovative solutions and gain access to new markets. ) Tj ET Q q 0 0 0 rg BT 430.81 205.10 Td (W) Tj ET Q q 0 0 0 rg BT 439.45 205.10 Td (e plan to utilize our expertise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 193.10 Td (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 68.00 172.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 172.10 Td (Optimize our) Tj ET Q q 0 0 0 rg BT 142.75 172.10 Td ( leadership position in existing markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.71 172.10 Td (There are a number of markets where we have historically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 160.10 Td (been at the forefront of technological development and product deployment and from which we have derived a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 148.10 Td (substantial portion of our revenues. ) Tj ET Q q 0 0 0 rg BT 229.68 148.10 Td (W) Tj ET Q q 0 0 0 rg BT 238.31 148.10 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 68.00 127.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 127.10 Td (Maintain and develop additional str) Tj ET Q q 0 0 0 rg BT 239.18 127.10 Td (ong collaborative customer) Tj ET Q q 0 0 0 rg BT 354.53 127.10 Td ( and industry r) Tj ET Q q 0 0 0 rg BT 418.53 127.10 Td (elationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.11 127.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.74 127.10 Td (e believe that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 115.10 Td (Coherent brand name and reputation for product quality) Tj ET Q q 0 0 0 rg BT 308.89 115.10 Td (, technical performance and customer satisfaction will help us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 103.10 Td (to further develop our loyal customer base. ) Tj ET Q q 0 0 0 rg BT 260.21 103.10 Td (W) Tj ET Q q 0 0 0 rg BT 268.85 103.10 Td (e plan to maintain our current customer relationships and develop new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 91.10 Td (ones with customers who are industry leaders and work together with these customers to design and develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 79.10 Td (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 68.00 58.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 58.10 Td (Develop and acquir) Tj ET Q q 0 0 0 rg BT 169.16 58.10 Td (e new technologies and market shar) Tj ET Q q 0 0 0 rg BT 321.47 58.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.91 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 344.54 58.10 Td (e will continue to enhance our market position ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 46.10 Td (through our existing technologies and develop new technologies through our internal research and development ) 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 (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (ef) Tj ET Q q 0 0 0 rg BT 93.59 742.10 Td (forts, as well as through the acquisition of additional complementary technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 506.71 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 245.77 730.10 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 709.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 709.10 Td (Str) Tj ET Q q 0 0 0 rg BT 99.15 709.10 Td (eamline our) Tj ET Q q 0 0 0 rg BT 149.79 709.10 Td ( manufacturing structur) Tj ET Q q 0 0 0 rg BT 253.50 709.10 Td (e and impr) Tj ET Q q 0 0 0 rg BT 299.98 709.10 Td (ove our) Tj ET Q q 0 0 0 rg BT 331.74 709.10 Td ( cost structur) Tj ET Q q 0 0 0 rg BT 388.21 709.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 709.10 Td (W) Tj ET Q q 0 0 0 rg BT 411.29 709.10 Td (e will focus on optimizing the mix of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 697.10 Td (products that we manufacture internally and externally) Tj ET Q q 0 0 0 rg BT 304.15 697.10 Td (. ) Tj ET Q q 0 0 0 rg BT 308.97 697.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.61 697.10 Td (e will utilize vertical integration where our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 685.10 Td (manufacturing process is considered proprietary and seek to leverage external sources when the capabilities and cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 673.10 Td (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 68.00 652.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 652.10 Td (Focus on long-term impr) Tj ET Q q 0 0 0 rg BT 192.20 652.10 Td (ovement of adjusted EBITDA, in dollars and as a per) Tj ET Q q 0 0 0 rg BT 418.71 652.10 Td (centage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.07 652.10 Td (W) Tj ET Q q 0 0 0 rg BT 518.71 652.10 Td (e define ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 640.10 Td (adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 157.93 640.10 Td ( as operating income adjusted for depreciation, amortization, stock compensation expenses, major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 628.10 Td (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 86.00 616.10 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 122.11 616.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 285.41 616.10 Td (Asian manufacturing locations, rationalizing our supply chain and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 604.10 Td (continued leveraging of our infrastructure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 568.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 568.10 Td (TION OF) Tj ET Q q 0 0 0 rg BT 135.28 568.10 Td ( CRITICAL) Tj ET Q q 0 0 0 rg BT 187.24 568.10 Td ( ) Tj ET Q q 0 0 0 rg BT 189.18 568.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 544.10 Td (Our discussion and analysis of financial condition and results of operations are based upon our condensed consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 532.10 Td (financial statements, which have been prepared in accordance with accounting principles generally accepted in the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 520.10 Td (States of ) Tj ET Q q 0 0 0 rg BT 86.67 520.10 Td (America and pursuant to the rulesand regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 336.98 520.10 Td (The preparation of these condensed consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.10 Td (financial statements requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 388.60 508.10 Td (fect the reported amounts of assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.10 Td (liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.10 Td (the reported amounts of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 354.17 484.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.81 484.10 Td (e have identified the following as the items that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.10 Td (require the most significant judgment and often involve complex estimation: revenue recognition, accounting for long-lived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.10 Td (assets \(including goodwill and intangible assets\), inventory valuation, warranty reserves, stock-based compensation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.10 Td (accounting for income taxes. See Item 7. "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 343.03 448.10 Td (Analysis of Financial Condition and Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.10 Td (Operations" in our ) Tj ET Q q 0 0 0 rg BT 126.02 436.10 Td (Annual Report on Form 10-K for our fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.62 436.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.33 436.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 400.10 Td (KEY) Tj ET Q q 0 0 0 rg BT 71.30 400.10 Td ( PERFORMANCE INDICA) Tj ET Q q 0 0 0 rg BT 191.11 400.10 Td (T) Tj ET Q q 0 0 0 rg BT 197.60 400.10 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.10 Td (Below is a summary of some of the quantitative performance indicators \(as defined below\) that are evaluated by management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.10 Td (to assess our financial performance. Some of the indicators are non-GAAP) Tj ET Q q 0 0 0 rg BT 348.71 364.10 Td ( measures and should not be considered as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.10 Td (alternative to any other measure for determining operating performance or liquidity that is calculated in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.10 Td (generally accepted accounting principles.) 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 (26) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 690.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 690.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 690.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 690.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 690.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 690.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 690.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 690.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 660.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 660.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 660.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 660.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 660.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 660.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 660.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 660.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 630.50 220.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 630.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 630.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 630.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 630.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 630.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 630.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 630.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 580.50 220.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 580.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 580.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 580.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 580.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 580.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 580.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 580.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 540.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 540.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 540.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 540.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 540.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 540.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 540.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 540.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 510.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 510.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 510.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 510.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 510.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 510.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 510.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 510.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 480.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 480.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 480.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 480.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 480.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 480.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 480.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 480.50 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 270.5 735.5 m 340.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 735.5 m 344.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 735.5 m 414.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 735.5 m 340.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 716.5 m 340.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 735.5 m 344.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 735.5 m 414.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 716.5 m 414.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 716.5 m 488.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 716.5 m 562.5 716.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.60 739.73 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 453.00 738.22 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 527.00 738.22 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 719.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.75 720.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.75 727.58 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 371.00 719.58 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.85 720.73 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.85 720.73 Td (%Change) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 706.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.20 708.58 Td (\(Dollarsinthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 680.17 Td (Bookings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 680.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.50 680.18 Td (273,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 680.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 680.17 Td (162,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 680.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 680.17 Td (110,480) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 680.17 Td (68.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 680.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 665.17 Td (Book-to-bill ratio) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 665.18 Td (1.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 665.17 Td (0.81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 665.17 Td (0.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 665.17 Td (76.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 665.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 650.17 Td (Net salesSpecialty Lasers and Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 650.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.50 650.18 Td (135,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 650.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 650.17 Td (145,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 650.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.45 650.17 Td (\(9,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 650.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.45 650.17 Td (\(6.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 650.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 635.17 Td (Net salesCommercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 635.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.50 635.18 Td (54,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 635.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 635.17 Td (55,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 635.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.45 635.17 Td (\(1,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.45 635.17 Td (\(2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 635.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 620.17 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 610.17 Td (Specialty Lasers and Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 610.18 Td (47.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 610.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 610.17 Td (44.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 610.17 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 610.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 595.17 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 585.17 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 585.18 Td (36.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 585.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 585.17 Td (34.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 585.17 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 585.17 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 570.17 Td (Research and development as a percentage of net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 560.17 Td (sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 560.18 Td (10.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 560.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 560.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 560.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 560.17 Td (5.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 545.17 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 545.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.50 545.18 Td (27,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 545.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 545.17 Td (23,624) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 545.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 545.17 Td (3,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 545.17 Td (14.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 545.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 530.17 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 530.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.50 530.18 Td (14,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 530.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 530.17 Td (31,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 530.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.45 530.17 Td (\(16,789) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 530.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 530.17 Td (\(54.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 530.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 515.17 Td (Days sales outstanding in receivables) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 515.18 Td (68.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 515.17 Td (58.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 515.17 Td (9.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 515.17 Td (16.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 515.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 500.17 Td (Annualized first quarter inventory turns) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.50 500.18 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 500.17 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.45 500.17 Td (\(0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 500.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.45 500.17 Td (\(6.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 500.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 485.17 Td (Capital spending as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.50 485.18 Td (2.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 485.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 485.17 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 485.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.45 485.17 Td (\(0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 485.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.45 485.17 Td (\(3.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 485.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 470.17 Td (Net income as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 470.18 Td (10.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 470.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 470.17 Td (8.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 470.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 470.17 Td (2.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 470.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 470.17 Td (23.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 470.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 455.17 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 455.18 Td (21.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 455.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 455.17 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 455.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 455.17 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 455.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 455.17 Td (13.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 455.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.00 Td (Definitions and analysis of these performance indicators are as follows:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 403.00 Td (Bookings and Book-to-Bill Ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.00 Td (Bookings represent orders received during the current period for products and services to be provided pursuant to service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.00 Td (contracts. ) Tj ET Q q 0 0 0 rg BT 90.91 367.00 Td (While we generally have not experienced a significant rate of cancellation, bookings are generally cancelable by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.00 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 50.00 343.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.00 Td (The book-to-bill ratio is calculated as quarterly bookings divided by quarterly net sales.) Tj ET Q q 0 0 0 rg BT 402.50 331.00 Td (This is an indication of the strength of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 319.00 Td (our business but can sometimes be impacted by a single lar) Tj ET Q q 0 0 0 rg BT 286.43 319.00 Td (ge order or a single lar) Tj ET Q q 0 0 0 rg BT 376.49 319.00 Td (ge shipment. ) Tj ET Q q 0 0 0 rg BT 429.54 319.00 Td (A) Tj ET Q q 0 0 0 rg BT 436.21 319.00 Td ( ratio of greater than 1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.00 Td (indicates that demand for our products is greater than what we supply in the quarter whereas a ratio of less than 1.0 indicates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.00 Td (that demand for our products is less than what we supply in the quarter) Tj ET Q q 0 0 0 rg BT 332.99 295.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.00 Td (Bookings were a new quarterly record and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.69 271.00 Td (68.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.52 271.00 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.02 271.00 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.12 271.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.42 271.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.42 271.00 Td ( compared to the same quarter one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.00 Td (year ago, led by a significant increase in the microelectronics market. Compared to the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.05 259.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.05 259.00 Td (, bookings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.00 Td (increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.25 247.00 Td (32.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.08 247.00 Td ( with a significant increase in the microelectronics market partially of) Tj ET Q q 0 0 0 rg BT 394.13 247.00 Td (fset by decreases in the materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.00 Td (processing and OEM components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 306.44 235.00 Td (The book-to-bill ratio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.63 235.00 Td (1.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.13 235.00 Td ( in the first quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 223.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.00 Td (Backlog represents orders which we expect to be shipped within 12 months and the current portion of service contracts. For a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.00 Td (discussion of backlog, see BACKLOG.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.00 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 52.5 161.6669921875 m 120.2490234375 161.6669921875 l s q 0 0 0 rg BT 52.50 163.00 Td (Microelectronics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.00 Td (Microelectronics bookings were a new quarterly record and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.27 139.00 Td (162%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.60 139.00 Td ( compared to the same quarter one year ago and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.00 Td (94%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.33 127.00 Td ( from bookings in the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.67 127.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.67 127.00 Td (. ) Tj ET Q q 0 0 0 rg BT 274.49 127.00 Td (The microelectronics book-to-bill ratio for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 127.00 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.76 127.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 115.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.55 115.00 Td (1.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.05 115.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.00 Td (Record flat panel display orders in the first quarter of fiscal 2016 increased 497% from orders in the first quarter of fiscal 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.00 Td (and 152% from orders in the fourth quarter of fiscal 2015, primarily due to the timing of order placement by customers, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.00 Td (orders received from multiple customers for lar) Tj ET Q q 0 0 0 rg BT 239.19 67.00 Td (ge format Linebeam systems to be used in or) Tj ET Q q 0 0 0 rg BT 418.41 67.00 Td (ganic light-emitting diode \(OLED\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.00 Td (production. In the second quarter of fiscal 2016, we have received additional Linebeam system orders and we believe that there ) 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 (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (are additional orders pending for the balance of the second quarter and for the remainder of fiscal 2016. In order to meet our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (delivery commitments, we are expanding our footprint in Gttingen, Germany) Tj ET Q q 0 0 0 rg BT 362.88 730.10 Td (, adding optics fabrication capacity at our site in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Richmond, California and increasing purchases of certain long-lead time supplies. ) Tj ET Q q 0 0 0 rg BT 380.83 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 389.47 718.10 Td (e expect that deliveries for these lar) Tj ET Q q 0 0 0 rg BT 531.45 718.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (orders already received will begin in the third quarter of fiscal 2016 and run through calendar 2017. Despite the recent increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (in orders for flat panel display systems, we expect continued fluctuations in order volumes on a quarterly basis going forward.) 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 50.00 682.10 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 50.00 670.10 Td (Orders in the advanced packaging \(API\) market decreased 38% from orders in the first quarter of fiscal 2015 and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (25% from orders in the fourth quarter of fiscal 2015.) 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 260.49 658.10 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 262.44 658.10 Td (API equipment manufacturers have adopted a more cautionary posture for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (legacy products based on recent trends in the semiconductor market. ) Tj ET Q q 0 0 0 rg BT 326.11 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 334.75 646.10 Td (e believe that flex packaging and system in package ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (\("SiP"\) are two applications that are promising in the ) Tj ET Q q 0 0 0 rg BT 263.96 634.10 Td (API market. Flex packaging, which relies upon UV) Tj ET Q q 0 0 0 rg BT 469.56 634.10 Td ( lasers, is used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (mobile and wearable devices and several systems manufacturers have seen strength in this area. SiP) Tj ET Q q 0 0 0 rg BT 448.66 622.10 Td ( has been building ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (momentum in mobile devices and future smartphones are likely to incorporate more SiP) Tj ET Q q 0 0 0 rg BT 402.32 610.10 Td ( design elements, which we believe will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (lead to an increase in ultrafast lasers for packaging. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (Orders from semiconductor capital equipment OEMs decreased 6% from the first quarter of fiscal 2015 but increased 10% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (from the fourth quarter of fiscal 2015.) 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 201.89 562.10 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 204.21 562.10 Td (The correlation between semiconductor inventories and fab utilization rates was evident ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (in the first quarter of fiscal 2016, with inventories rising and utilization dipping. ) Tj ET Q q 0 0 0 rg BT 372.26 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 380.89 550.10 Td (e experienced a predictable response in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (service business skewed towards legacy nodes, but new system orders improved for a second consecutive quarter and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (believe these orders are linked to specific capacity expansions rather than signaling the start of a broader cycle. ) 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 50 500.7669921875 m 133.59375 500.7669921875 l s q 0 0 0 rg BT 50.00 502.10 Td (Materials Processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (Materials processing orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.94 478.10 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.27 478.10 Td ( compared to the same quarter one year ago and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.98 478.10 Td (39%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.31 478.10 Td ( from the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.80 466.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.80 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 140.62 466.10 Td (The materials processing book-to-bill ratio for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.06 466.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.17 466.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.47 466.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.47 466.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.02 466.10 Td (0.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.52 466.10 Td (. Bookings were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.40 454.10 Td (fected by the timing of certain orders, a slowdown in China and seasonality) Tj ET Q q 0 0 0 rg BT 399.62 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 404.44 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.08 454.10 Td (e have been working on a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (projects for marking new materials and expected orders in the first or second quarter of fiscal 2016, but these orders have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (delayed as final details of the process window and tool configuration are being finalized. China was stable in fiscal 2015, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (the market softened in the first quarter of fiscal 2016 and inventories have been trimmed accordingly) Tj ET Q q 0 0 0 rg BT 452.82 418.10 Td (. Customers are citing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (volatility of the Chinese stock market and the ensuing impact on consumer confidence as the main reason for the softening ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (market, with some additional contribution from the devaluation of the Chinese currency that have made imports more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (expensive. ) Tj ET Q q 0 0 0 rg BT 94.80 382.10 Td (This has more of an ef) Tj ET Q q 0 0 0 rg BT 184.32 382.10 Td (fect upon the low end of the laser market where local alternatives are available and is less of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (an issue at higher performance levels. Overall, our outlook for China in fiscal 2016 is neutral with specific projects of) Tj ET Q q 0 0 0 rg BT 520.51 370.10 Td (fsetting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (market uncertainty) Tj ET Q q 0 0 0 rg BT 124.59 358.10 Td (. ) Tj ET Q q 0 0 0 rg BT 131.91 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 140.55 358.10 Td (e are scheduled to begin deliveries of our second-generation fiber laser platform in the second quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (fiscal 2016, an important step towards validating our platform and building a position in the 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 50 320.7669921875 m 208.037109375 320.7669921875 l s q 0 0 0 rg BT 50.00 322.10 Td (OEM Components and Instrumentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (OEM Components and Instrumentation orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.94 298.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.27 298.10 Td ( compared to the same quarter one year ago and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.08 298.10 Td (27%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.41 298.10 Td ( from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.74 286.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.74 286.10 Td (. ) Tj ET Q q 0 0 0 rg BT 167.56 286.10 Td (The book-to-bill ratio for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.58 286.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.69 286.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.99 286.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.99 286.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.54 286.10 Td (0.76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.04 286.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (Instrumentation orders decreased 20% compared to the same quarter one year ago and 47% compared to the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (fiscal 2015 due to timing of orders coming of) Tj ET Q q 0 0 0 rg BT 231.45 250.10 Td (f the high orders in the fourth quarter of fiscal 2015.) 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 440.00 250.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 442.32 250.10 Td (The lar) Tj ET Q q 0 0 0 rg BT 470.73 250.10 Td (ge decrease from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (fourth quarter of fiscal 2015 is primarily a result of order timing in the instrumentation business with a smaller macro ef) Tj ET Q q 0 0 0 rg BT 529.70 238.10 Td (fect in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (the medical OEM market. Bioinstrumentation customers remain positive on their opportunities in personalized medicine, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (especially for age-related, chronic diseases and the fight against global epidemics, which is driving growth in dedicated, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (tabletop instruments. ) Tj ET Q q 0 0 0 rg BT 136.20 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 144.83 202.10 Td (e are seeing our customers increasing their investment in two areas: expanding their bioassay or reagent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (portfolio and introducing dedicated tools to support testing. For dedicated tools to support testing, we are developing multi-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (wavelength, plug-and-play light engines based upon our OBIS and BioRay platforms. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Orders for medical OEM products decreased 10% compared to the same quarter one year ago and 9% compared to the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 140.62 142.10 Td (The medical OEM market experienced some slowdowns from inventory management tied to concerns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (about China. Much of the market focus is on cataract treatment and dental procedures. ) Tj ET Q q 0 0 0 rg BT 397.47 130.10 Td (T) Tj ET Q q 0 0 0 rg BT 402.88 130.10 Td (esting of our Monaco laser for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (cataracts is proceeding well and our position for next generation tools is strengthening. ) Tj ET Q q 0 0 0 rg BT 399.73 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 408.76 118.10 Td (ithin the dental market, reviews for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (the CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 78.61 104.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.86 106.10 Td (-based procedure have been positive and we believe our products are positioned to be successfully adopted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (customers in this 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 50 68.76699218750002 m 198.57421875 68.76699218750002 l s q 0 0 0 rg BT 50.00 70.10 Td (Scientific and Government Programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td () 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 (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Scientific and government programs orders decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.70 742.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.03 742.10 Td ( compared to the same quarter one year ago and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.08 742.10 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.41 742.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.46 730.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.46 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 182.28 730.10 Td (The book-to-bill for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.47 730.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.58 730.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.88 730.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.88 730.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.43 730.10 Td (1.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.93 730.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Demand for amplified ultrafast systems including the ) Tj ET Q q 0 0 0 rg BT 265.23 706.10 Td (Astrella, Libra and Legend series remained strong across all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (regions, with key contributions from the biological imaging market. ) Tj ET Q q 0 0 0 rg BT 323.93 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 332.57 694.10 Td (e saw market share growth in Japan due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Chameleon Discovery being qualified with a major microscope vendor) Tj ET Q q 0 0 0 rg BT 343.05 682.10 Td (. In addition we see a shift from the traditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (microscope companies to smaller players that specialize in neuroscience solutions. On a geographic basis, China was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (particularly strong as institutions spent the remaining funds in the last quarter of the country) Tj ET Q q 0 0 0 rg BT 421.03 658.10 Td (s prior five-year plan.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Net sales include sales of lasers, laser tools, related accessories and service. Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.36 610.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.47 610.10 Td ( fiscal quarter decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.85 610.10 Td (6.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.68 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (in our SLS segment and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.52 598.10 Td (2.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.35 598.10 Td ( in our CLC segment from the same quarter one year ago. For a description of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (reasons for changes in net sales refer to the Results of Operations section of this quarterly report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 62.04 562.10 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.69 562.10 Td (ofit as a Per) Tj ET Q q 0 0 0 rg BT 138.32 562.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (Gross profit as a percentage of net sales \(gross profit percentage\) is calculated as gross profit for the period divided by net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (sales for the period. Gross profit percentage in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.21 526.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.32 526.10 Td ( quarter increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.83 526.10 Td (44.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.66 526.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.43 526.10 Td (47.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.26 526.10 Td ( in our SLS segment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.19 514.10 Td (34.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.02 514.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.80 514.10 Td (36.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.63 514.10 Td ( in our CLC segment from the same quarter one year ago. For a description of the reasons for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (changes in gross profit refer to the Results of Operations section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 478.10 Td (ch and Development as a Per) Tj ET Q q 0 0 0 rg BT 202.67 478.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (Research and development as a percentage of net sales \(R&D percentage\) is calculated as research and development expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (for the period divided by net sales for the period. Management considers R&D percentage to be an important indicator in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (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 502.67 430.10 Td (10.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.50 430.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (9.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.83 418.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.44 418.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.55 418.10 Td ( fiscal quarter compared to the same period one year ago. 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 50.00 406.10 Td (spending refer to the Results of Operations section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (Net Cash Pr) Tj ET Q q 0 0 0 rg BT 102.03 382.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 191.77 382.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (Net cash provided by operating activities as reflected on our Condensed Consolidated Statements of Cash Flows primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (represents the excess of cash collected from billings to our customers and other receipts over cash paid to our vendors for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (expenses and inventory purchases to run our business.) Tj ET Q q 0 0 0 rg BT 268.94 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 277.58 334.10 Td (e believe that cash flows from operations is an important performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (indicator because cash generation over the long term is essential to maintaining a healthy business and providing funds to help ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (fuel growth. For a description of the reasons for changes in Net Cash Provided by Operating ) Tj ET Q q 0 0 0 rg BT 423.80 310.10 Td (Activities refer to the Liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (and Capital Resources section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 250.10 Td (e calculate days sales outstanding \(DSO\) in receivables as net receivables at the end of the period divided by net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (during the period and then multiplied by the number of days in the period, using 90 days for quarters. DSO in receivables ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (indicates how well we are managing our collection of receivables, with lower DSO in receivables resulting in higher working ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (capital availability) Tj ET Q q 0 0 0 rg BT 123.49 214.10 Td (. ) Tj ET Q q 0 0 0 rg BT 130.81 214.10 Td (The more money we have tied up in receivables, the less money we have available for research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (development, acquisitions, expansion, marketing and other activities to grow our business. Our DSO in receivables for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.33 202.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.44 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.80 190.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.80 190.10 Td ( increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.49 190.10 Td (58.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.99 190.10 Td ( days to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.60 190.10 Td (68.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.10 190.10 Td ( days compared to the same quarter one year ago primarily due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (timing of flat panel display system sales towards the end of the quarter in Japan, slower collections in the U.S. and ) Tj ET Q q 0 0 0 rg BT 509.90 178.10 Td (Asia, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (the unfavorable impact of foreign exchange rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (Annualized ) Tj ET Q q 0 0 0 rg BT 101.22 142.10 Td (Third Quarter) Tj ET Q q 0 0 0 rg BT 163.54 142.10 Td ( Inventory ) Tj ET Q q 0 0 0 rg BT 210.58 142.10 Td (T) Tj ET Q q 0 0 0 rg BT 216.33 142.10 Td (urns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 118.10 Td (e calculate annualized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.41 118.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.52 118.10 Td ( quarter inventory turns as the cost of sales during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.41 118.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.52 118.10 Td ( quarter annualized and divided by net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (inventories at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.85 106.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.96 106.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 210.22 106.10 Td (. ) Tj ET Q q 0 0 0 rg BT 215.04 106.10 Td (This indicates how well we are managing our inventory levels, with higher inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (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 460.64 94.10 Td (. ) Tj ET Q q 0 0 0 rg BT 465.46 94.10 Td (The more money we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (have tied up in inventory) Tj ET Q q 0 0 0 rg BT 149.33 82.10 Td (, the less money we have available for research and development, acquisitions, expansion, marketing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (and other activities to grow our business. Our annualized inventory turns for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.70 70.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.81 70.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.11 70.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.11 70.10 Td ( decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.46 70.10 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.96 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.28 58.10 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.78 58.10 Td ( turns compared to the same quarter one year ago primarily due to the planned build-up of inventory levels in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (business units to support increased demand.) 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 (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Capital Spending as a Per) Tj ET Q q 0 0 0 rg BT 160.39 730.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Capital spending as a percentage of net sales \(capital spending percentage\) is calculated as capital expenditures for the period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (divided by net sales for the period.Capital spending percentage indicates the extent to which we are expanding or improving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (our operations, including investments in technology and equipment. Management monitors capital spending levels as this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (assists management in measuring our cash flows, net of capital expenditures. Our capital spending percentage decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (2.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.83 658.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.27 658.10 Td (2.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.10 658.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.48 658.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.58 658.10 Td ( quarter compared to the same period one year ago primarily due to lower purchases of production-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (related assets partially of) Tj ET Q q 0 0 0 rg BT 149.50 646.10 Td (fset by lower revenues in the first quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 376.47 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 385.11 646.10 Td (e expect higher capital spending in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (remainder of fiscal 2016 to expand our footprint in Gttingen, Germany and add optics fabrication capacity at our site in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Richmond, California.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 129.19 598.10 Td ( as a Per) Tj ET Q q 0 0 0 rg BT 165.39 598.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 574.10 Td (e define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 165.00 574.10 Td ( as operating income adjusted for depreciation, amortization, stock compensation expenses, major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (restructuring costs and certain other non-operating income and expense items. Key initiatives to reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 549.85 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 210.80 550.10 Td (Asian manufacturing locations, rationalizing our supply chain and continued leveraging ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (of our infrastructure. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 514.10 Td (e utilize a number of dif) Tj ET Q q 0 0 0 rg BT 154.81 514.10 Td (ferent financial measures, both GAAP) Tj ET Q q 0 0 0 rg BT 307.45 514.10 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 371.33 514.10 Td (, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 479.93 514.10 Td ( as a percentage of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (net sales, in analyzing and assessing our overall business performance, for making operating decisions and for forecasting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (planning future periods. ) Tj ET Q q 0 0 0 rg BT 148.13 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 156.77 490.10 Td (e consider the use of non-GAAP) Tj ET Q q 0 0 0 rg BT 286.65 490.10 Td ( financial measures helpful in assessing our current financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (performance and ongoing operations. ) Tj ET Q q 0 0 0 rg BT 201.71 478.10 Td (While we use non-GAAP) Tj ET Q q 0 0 0 rg BT 303.82 478.10 Td ( financial measures as a tool to enhance our understanding of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (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 453.06 466.10 Td (, or superior to, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (information provided by GAAP) Tj ET Q q 0 0 0 rg BT 177.11 454.10 Td ( financial measures. ) Tj ET Q q 0 0 0 rg BT 259.12 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 267.76 454.10 Td (e provide adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 379.68 454.10 Td ( in order to enhance investors' understanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (of our ongoing operations. ) Tj ET Q q 0 0 0 rg BT 158.41 442.10 Td (This measure is used by some investors when assessing our performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 420.10 Td (Below is the reconciliation of our net income as a percentage of net sales to our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 442.38 420.10 Td ( as a percentage of net sales:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 363.60 207.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 363.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 363.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 363.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 333.60 207.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 333.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 333.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 333.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 304.60 207.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 257.50 304.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 304.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 304.60 62.00 -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 257.5 384.6 m 319.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 384.6 m 323.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 384.6 m 385.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 363.6 m 319.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 363.6 m 385.5 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 289.6 m 319.5 289.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 268.6 m 319.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257.5 266.6 m 319.5 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 289.6 m 385.5 289.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 268.6 m 385.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 266.6 m 385.5 266.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 153.50 387.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.60 388.83 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 366.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 269.75 375.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.00 367.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.75 375.83 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.00 367.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 353.27 Td (Net income as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.50 353.28 Td (10.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 353.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 353.27 Td (8.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 353.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 338.27 Td (Income tax expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.50 338.28 Td (3.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 338.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 338.27 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 338.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 323.27 Td (Interest and other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.50 323.28 Td (0.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 323.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 323.27 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 323.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 309.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.50 309.28 Td (4.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 309.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 309.17 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 309.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 294.27 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.50 294.28 Td (2.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 294.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 294.27 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 294.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 272.27 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.50 272.28 Td (21.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.00 272.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 272.27 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 272.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET 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 50 230.53505859375002 m 178.5546875 230.53505859375002 l s q 0 0 0 rg BT 50.00 232.10 Td (RESUL) Tj ET Q q 0 0 0 rg BT 82.43 232.10 Td (TS OF) Tj ET Q q 0 0 0 rg BT 110.67 232.10 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 147.43 232.10 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 208.10 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 109.82 208.10 Td (TED SUMMAR) Tj ET Q q 0 0 0 rg BT 178.64 208.10 Td (Y) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.10 Td (The following table sets forth, for the periods indicated, the percentage of total net sales represented by the line items reflected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.10 Td (in our condensed consolidated statements of operations:) 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 (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 521.00 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 714.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 714.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 714.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 714.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 684.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 684.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 684.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 684.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 655.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 655.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 655.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 655.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 625.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 625.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 625.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 625.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 595.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 595.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 595.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 595.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 565.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 565.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 565.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 565.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 535.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 535.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 535.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 535.50 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 253 735.5 m 323 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 735.5 m 397 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 735.5 m 323 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 714.5 m 323 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 735.5 m 397 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 714.5 m 397 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 714.5 m 323 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 714.5 m 397 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 684.5 m 323 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 684.5 m 397 684.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 610.5 m 323 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 610.5 m 397 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 595.5 m 323 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 595.5 m 397 595.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 565.5 m 323 565.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 565.5 m 397 565.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 535.5 m 323 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 535.5 m 397 535.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 521.5 m 323 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 519.5 m 323 519.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 521.5 m 397 521.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 519.5 m 397 519.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 152.50 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.10 739.73 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 717.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 269.25 726.73 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.50 718.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.25 726.73 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 718.73 Td (2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 704.18 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.65 704.18 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 704.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 704.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 704.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 689.18 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 689.18 Td (55.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 689.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 689.17 Td (59.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 689.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 674.18 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 674.18 Td (44.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 674.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 674.17 Td (41.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 674.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 660.18 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 645.17 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 645.18 Td (10.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 645.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.30 645.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 645.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 630.17 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 630.18 Td (19.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 630.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 630.17 Td (19.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 630.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 615.17 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.65 615.18 Td (0.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 615.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.30 615.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 615.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 600.17 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 600.18 Td (29.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 600.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 600.17 Td (28.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 600.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 585.18 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 585.18 Td (14.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 585.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 585.17 Td (12.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 585.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 570.18 Td (Other expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.30 570.23 Td (\(0.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 570.18 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.95 570.17 Td (\(0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.80 570.17 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 555.18 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 555.18 Td (14.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 555.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 555.17 Td (11.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 555.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 540.17 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.65 540.18 Td (3.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 540.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.30 540.17 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 540.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 525.18 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 525.18 Td (10.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 525.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.30 525.17 Td (8.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 525.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 497.00 Td (Net income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.75 497.00 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.86 497.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.16 497.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.16 497.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.71 497.00 Td ($20.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.60 497.00 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.43 497.00 Td ($0.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.93 497.00 Td ( per diluted share\) including $3.4 million of after) Tj ET Q q 0 0 0 rg BT 530.51 497.00 Td (-tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 485.00 Td (stock-related compensation expense, $1.4 million amortization of intangible assets and a benefit of $1.2 million related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 473.00 Td (renewal of the federal research and development tax credits for fiscal 2015. Net income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.78 473.00 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.89 473.00 Td ( quarter of fiscal 2015 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 461.00 Td ($17.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.89 461.00 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.72 461.00 Td ($0.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.22 461.00 Td ( per diluted share\) including $4.0 million of after) Tj ET Q q 0 0 0 rg BT 327.80 461.00 Td (-tax stock-related compensation expense, $1.6 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 449.00 Td (amortization of intangible assets and a benefit of $1.1 million related to the renewal of the federal research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 437.00 Td (tax credits for fiscal 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 425.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 413.00 Td (BACKLOG) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 389.00 Td (Backlog represents orders which we expect to be shipped within 12 months and the current portion of service contracts. Orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 377.00 Td (used to compute backlog are generally cancelable and subject to rescheduling by our customers without substantial penalties. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.00 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 365.00 Td (, we have not experienced a significant rate of cancellation or rescheduling, though we cannot guarantee that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 353.00 Td (rate of cancellations or rescheduling will not increase in the future. ) Tj ET Q q 0 0 0 rg BT 319.72 353.00 Td (W) Tj ET Q q 0 0 0 rg BT 328.35 353.00 Td (e have a backlog of orders shippable within 12 months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.00 Td ($370.0 million at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.11 341.00 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.71 341.00 Td (, including a significant concentration in the flat panel display market \(46%\) for customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 329.00 Td (which are primarily in ) Tj ET Q q 0 0 0 rg BT 141.08 329.00 Td (Asia. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 305.00 Td (NET) Tj ET Q q 0 0 0 rg BT 70.38 305.00 Td ( SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 281.00 Td (Market ) Tj ET Q q 0 0 0 rg BT 84.16 281.00 Td (Application) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.00 Td (The following tables set forth, for the periods indicated, the amount of net sales and their relative percentages of total net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 245.00 Td (by market application \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 165.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 165.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 165.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 165.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 165.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 165.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 165.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 165.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 135.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 135.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 135.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 135.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 135.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 135.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 135.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 135.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 105.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 105.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 105.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 105.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 105.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 105.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 105.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 105.50 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 270.5 221.5 m 340.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 221.5 m 344.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 221.5 m 414.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 221.5 m 418.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 221.5 m 488.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 221.5 m 492.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 221.5 m 562.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 221.5 m 340.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 208.5 m 340.5 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 221.5 m 344.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 208.5 m 344.5 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 221.5 m 414.5 221.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 208.5 m 414.5 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 208.5 m 488.5 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 208.5 m 492.5 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 208.5 m 562.5 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 179.5 m 340.5 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 179.5 m 414.5 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 179.5 m 488.5 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 179.5 m 562.5 179.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 105.5 m 340.5 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 105.5 m 414.5 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 105.5 m 488.5 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 105.5 m 562.5 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 105.5 m 340.5 105.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 91.5 m 340.5 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 89.5 m 340.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 91.5 m 414.5 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 89.5 m 414.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 91.5 m 488.5 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 89.5 m 488.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 91.5 m 562.5 91.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 89.5 m 562.5 89.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 225.73 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.75 212.73 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.75 212.73 Td (December 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 183.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.15 199.73 Td (Per) Tj ET Q q 0 0 0 rg BT 371.99 199.73 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 191.73 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.65 183.73 Td ( net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 183.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 199.73 Td (Per) Tj ET Q q 0 0 0 rg BT 519.99 199.73 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 191.73 Td ( of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.65 183.73 Td ( net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 170.18 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 155.17 Td (Microelectronics) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 155.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 155.18 Td (96,506) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 155.18 Td (50.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 155.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 155.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 155.17 Td (99,311) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 155.17 Td (49.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 155.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 140.17 Td (OEM components and instrumentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 140.18 Td (39,333) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 140.18 Td (20.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 140.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 140.17 Td (41,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 140.17 Td (20.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 140.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 125.17 Td (Materials processing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 125.18 Td (23,034) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 125.18 Td (12.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 125.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 125.17 Td (28,758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 125.17 Td (14.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 125.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 110.17 Td (Scientific and government programs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 110.18 Td (31,402) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 110.18 Td (16.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 110.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 110.17 Td (31,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 110.17 Td (15.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 110.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 95.17 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 95.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 95.18 Td (190,275) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 95.18 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 95.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 95.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 95.17 Td (200,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 95.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 95.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET 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 (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 742.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.86 742.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.16 742.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.16 742.10 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.08 742.10 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.97 742.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.80 742.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.13 742.10 Td (, compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.05 742.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.16 742.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.46 742.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.46 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (including decreases due to the unfavorable impact of foreign exchange rates. Sales decreased in the materials processing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (microelectronics and OEM components and instrumentation markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (Sales in the materials processing market decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.20 694.10 Td ($5.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.09 694.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.92 694.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.25 694.10 Td (, primarily due to lower shipments for cutting and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (materials processing applications. ) Tj ET Q q 0 0 0 rg BT 187.56 682.10 Td (The decrease in the microelectronics market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.74 682.10 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.64 682.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.47 682.10 Td (3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.80 682.10 Td (, was primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (lower shipments for advanced packaging and micro materials processing applications partially of) Tj ET Q q 0 0 0 rg BT 438.31 670.10 Td (fset by higher shipments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (semiconductor applications. ) Tj ET Q q 0 0 0 rg BT 164.51 658.10 Td (The decrease in the OEM components and instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.32 658.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.21 658.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.04 658.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.37 658.10 Td (, was due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (primarily to lower shipments for medical and machine vision applications partially of) Tj ET Q q 0 0 0 rg BT 391.67 646.10 Td (fset by higher shipments for military and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (bio-instrumentation applications. Sales in the scientific and government programs market increased less than 1%.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (The timing for shipments of our higher average selling price excimer products in the flat panel display market have historically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (fluctuated and are in the future expected to fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 311.34 598.10 Td (-to-quarter due to customer scheduling, our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (manufacture these products and/or availability of supplies. ) Tj ET Q q 0 0 0 rg BT 288.54 586.10 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 50.00 574.10 Td (sales will likely fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 202.80 574.10 Td (-to-quarter) Tj ET Q q 0 0 0 rg BT 245.00 574.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Segments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 526.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 88.43 526.10 Td (ganized into two reportable operating segments: SLS and CLC. SLS develops and manufactures configurable, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 191.41 514.10 Td (gely serving the microelectronics, scientific research and government programs and OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (components and instrumentation markets. CLC focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 424.46 502.10 Td (fered in set configurations. CLC) Tj ET Q q 0 0 0 rg BT 556.37 502.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (primary markets include materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (The following tables set forth, for the periods indicated, the amount of net sales and their relative percentages of total net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (by segment \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 374.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 374.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 374.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 374.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 374.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 344.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 344.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 344.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 344.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 344.60 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 270.5 430.6 m 340.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 430.6 m 344.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 430.6 m 414.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 430.6 m 418.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 430.6 m 488.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 430.6 m 492.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 430.6 m 562.5 430.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 417.6 m 340.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 417.6 m 344.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 417.6 m 414.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 417.6 m 488.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 417.6 m 492.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 417.6 m 562.5 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 388.6 m 340.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 388.6 m 414.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 388.6 m 488.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 388.6 m 562.5 388.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 344.6 m 340.5 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 344.6 m 488.5 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 344.6 m 340.5 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 330.6 m 340.5 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 328.6 m 340.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 344.6 m 414.5 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 330.6 m 414.5 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 328.6 m 414.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 344.6 m 488.5 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 330.6 m 488.5 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 328.6 m 488.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 344.6 m 562.5 344.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 330.6 m 562.5 330.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 328.6 m 562.5 328.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 434.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.75 421.83 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.75 421.83 Td (December 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 392.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.15 408.83 Td (Per) Tj ET Q q 0 0 0 rg BT 371.99 408.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 400.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.65 392.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 392.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 408.83 Td (Per) Tj ET Q q 0 0 0 rg BT 519.99 408.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.85 400.83 Td (of total ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.65 392.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 379.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 364.27 Td (Specialty Lasers and Systems \(SLS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 364.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 364.28 Td (135,951) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 364.28 Td (71.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 364.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 364.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 364.27 Td (145,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 364.27 Td (72.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 364.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 349.27 Td (Commercial Lasers and Components \(CLC\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 349.28 Td (54,324) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 349.28 Td (28.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 349.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 349.27 Td (55,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 349.27 Td (27.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 349.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 334.27 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 334.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 334.28 Td (190,275) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 334.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 334.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 334.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 334.27 Td (200,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 334.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 334.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 306.10 Td (Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 306.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.86 306.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.16 306.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.16 306.10 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.08 306.10 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.97 306.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.80 306.10 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.13 306.10 Td (, compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.05 306.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.16 306.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.46 306.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.46 306.10 Td (, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.10 Td (decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.64 294.10 Td ($9.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.53 294.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.36 294.10 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.69 294.10 Td (, in our SLS segment and decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.93 294.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.82 294.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 294.10 Td (2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.98 294.10 Td (, in our CLC segment. ) Tj ET Q q 0 0 0 rg BT 504.18 294.10 Td (The decreases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 282.10 Td (in both SLS and CLC segment sales included decreases due to the unfavorable impact of foreign exchange rates.) 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 50.00 270.10 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 50.00 258.10 Td (The decrease in our SLS segment sales was primarily due to lower advanced packaging, medical and materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 246.10 Td (application sales. ) Tj ET Q q 0 0 0 rg BT 121.19 246.10 Td (The decrease in our CLC segment sales was primarily due to lower materials processing and machine vision ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (application sales partially of) Tj ET Q q 0 0 0 rg BT 162.84 234.10 Td (fset by higher sales to the bio-instrumentation market.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (GROSS PROFIT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (Consolidated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (Our gross profit rate increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.40 162.10 Td (44.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.23 162.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.72 162.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.83 162.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.13 162.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.13 162.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.57 162.10 Td (41.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.40 162.10 Td ( in the first quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (The increase in the gross profit rate was primarily due to favorable product mar) Tj ET Q q 0 0 0 rg BT 367.76 138.10 Td (gins \(2.8%\) as a result of favorable mix for both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (service and systems in the microelectronics market, particularly in flat panel display applications, and the favorable impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (from foreign currency fluctuations partially of) Tj ET Q q 0 0 0 rg BT 234.47 114.10 Td (fset by the unfavorable impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 445.06 114.10 Td (T) Tj ET Q q 0 0 0 rg BT 450.82 114.10 Td (insley and Raydiance in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 102.10 Td (fourth quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 167.19 102.10 Td (Also contributing to the increase in gross profit rate were lower warranty costs \(0.2%\) due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (fewer warranty events. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (Our gross profit rate has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 272.81 66.10 Td (fected by a variety of factors including market and product mix, pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (on volume orders, shipment volumes, our ability to manufacture advanced and more complex products, manufacturing ) 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 (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 742.10 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 50.00 730.10 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 50.00 718.10 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 485.56 718.10 Td (Y) Tj ET Q q 0 0 0 rg BT 491.78 718.10 Td (en and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Korean ) Tj ET Q q 0 0 0 rg BT 81.75 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 90.39 706.10 Td (on.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (The gross profit rate in our SLS segment increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.06 658.10 Td (47.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.89 658.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.38 658.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.49 658.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.79 658.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.79 658.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.23 658.10 Td (44.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.06 658.10 Td ( in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 622.10 Td (3.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 622.10 Td ( first quarter increase in the gross profit rate was primarily due to favorable product mar) Tj ET Q q 0 0 0 rg BT 440.51 622.10 Td (gins \(3.2%\) resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (favorable product mix and pricing in the microelectronics market related to improved mix and pricing with a favorable service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (revenue mix and improved mix and pricing in system shipments to the flat panel display market. In addition, the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (impact from foreign currency fluctuations as well as favorable mix in the scientific and government programs market partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 574.10 Td (fset by the unfavorable impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 268.74 574.10 Td (T) Tj ET Q q 0 0 0 rg BT 274.50 574.10 Td (insley and Raydiance in the fourth quarter of fiscal 2015 impacted the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (gross profit rate.) 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 115.82 562.10 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 117.76 562.10 Td (Also contributing to the increase in gross profit rate were lower warranty costs \(0.4%\) due to fewer warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (events. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Commer) Tj ET Q q 0 0 0 rg BT 87.58 526.10 Td (cial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (The gross profit rate in our CLC segment increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.28 502.10 Td (36.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.11 502.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.60 502.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.71 502.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.01 502.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.01 502.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.45 502.10 Td (34.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.28 502.10 Td ( in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 466.10 Td (1.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 466.10 Td ( first quarter increase in the gross profit rate was primarily due to favorable product mar) Tj ET Q q 0 0 0 rg BT 440.51 466.10 Td (gins \(2.1%\) and lower other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (costs \(0.1%\) as a percentage of sales due to lower freight costs and lower inventory provisions in certain business units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 442.10 Td (fset by higher warranty costs \(0.5%\) due to more warranty events. ) Tj ET Q q 0 0 0 rg BT 360.65 442.10 Td (The 2.1% product mar) Tj ET Q q 0 0 0 rg BT 450.44 442.10 Td (gin improvement results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (from favorable product mix in the OEM components and instrumentation and materials processing markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 394.10 Td (TING EXPENSES:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 258.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 317.60 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 317.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 317.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 317.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 317.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 317.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 287.60 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 287.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 287.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 287.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 287.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 287.60 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 265 370.6 m 335 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 370.6 m 339 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 370.6 m 409 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 370.6 m 413 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 370.6 m 483 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 370.6 m 487 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 370.6 m 557 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 357.6 m 335 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 357.6 m 339 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 357.6 m 409 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 357.6 m 483 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 357.6 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 487 357.6 m 557 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 332.6 m 335 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 332.6 m 409 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 332.6 m 483 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 332.6 m 557 332.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 272.6 m 335 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 272.6 m 409 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 272.6 m 483 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 272.6 m 557 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 258.6 m 335 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 256.6 m 335 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 258.6 m 409 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 256.6 m 409 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 258.6 m 483 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 256.6 m 483 256.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 258.6 m 557 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 256.6 m 557 256.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.10 374.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.25 361.83 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.25 361.83 Td (December 27, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.45 336.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.35 344.83 Td (Per) Tj ET Q q 0 0 0 rg BT 362.19 344.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.35 336.83 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.45 336.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.35 344.83 Td (Per) Tj ET Q q 0 0 0 rg BT 510.19 344.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.35 336.83 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.70 321.83 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 307.27 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.50 307.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 307.28 Td (19,140) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 307.28 Td (10.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 307.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 307.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 307.27 Td (19,173) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 307.27 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 307.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 292.27 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 292.28 Td (36,774) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 292.28 Td (19.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 292.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 292.27 Td (38,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 292.27 Td (19.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 292.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 277.27 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.15 277.28 Td (701) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 277.28 Td (0.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 277.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 277.27 Td (696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 277.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 277.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 262.27 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.50 262.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 262.28 Td (56,615) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 262.28 Td (29.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 262.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 262.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 262.27 Td (58,010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 262.27 Td (28.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 262.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 234.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 234.10 Td (ch and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.10 Td (Research and development \(R&D\) expenses were flat during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.62 210.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.73 210.10 Td ( fiscal quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.58 210.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.17 210.10 Td ( compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 198.10 Td (same quarter one year ago.Lower project spending of $0.7 million was primarily due to the favorable impact of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 186.10 Td (exchange rates and lower spending on various projects partially of) Tj ET Q q 0 0 0 rg BT 315.01 186.10 Td (fset by lower customer reimbursements for development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 174.10 Td (projects. Of) Tj ET Q q 0 0 0 rg BT 97.03 174.10 Td (fsetting the lower project spending were increases of $0.7 million due to incremental spending from the acquisitions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 162.10 Td (of ) Tj ET Q q 0 0 0 rg BT 60.65 162.10 Td (T) Tj ET Q q 0 0 0 rg BT 66.41 162.10 Td (insley and Raydiance in the fourth quarter of fiscal 2015. On a segment basis as compared to the prior year period, SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 150.10 Td (research and development spending decreased $0.1 million primarily due to lower net spending on projects partially of) Tj ET Q q 0 0 0 rg BT 524.96 150.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 138.10 Td (the impact of the acquisitions of ) Tj ET Q q 0 0 0 rg BT 180.90 138.10 Td (T) Tj ET Q q 0 0 0 rg BT 186.66 138.10 Td (insley and Raydiance. CLC spending was flat with lower project spending of) Tj ET Q q 0 0 0 rg BT 494.18 138.10 Td (fset by lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 126.10 Td (customer reimbursements. Corporate and other spending increased $0.1 million due to higher stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 114.10 Td (expense. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 90.10 Td (Selling, general and administrative) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 66.10 Td (Selling, general and administrative \(SG&A\) expenses decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.24 66.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.13 66.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.46 66.10 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.79 66.10 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.11 66.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.22 66.10 Td ( fiscal quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 54.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.60 54.10 Td ( compared to the same quarter one year ago.) Tj ET Q q 0 0 0 rg BT 292.78 54.10 Td (The decrease was primarily due to lower payroll spending \($0.9 ) Tj ET Q endstream endobj 67 0 obj <>] /Rotate 0 /Contents 68 0 R>> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (million\) resulting from the favorable impact of foreign exchange rates and lower variable compensation and $0.9 million lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (stock-based compensation expense due to higher estimated forfeitures. ) Tj ET Q q 0 0 0 rg BT 335.00 730.10 Td (The decreases were partially of) Tj ET Q q 0 0 0 rg BT 459.76 730.10 Td (fset by $0.3 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (higher char) Tj ET Q q 0 0 0 rg BT 95.07 718.10 Td (ges for increases in deferred compensation plan liabilities and $0.1 million higher other net variable spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (resulting from incremental spending from the acquisitions of ) Tj ET Q q 0 0 0 rg BT 295.32 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 301.07 706.10 Td (insley and Raydiance in the fourth quarter of fiscal 2015 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (higher other consulting costs net of the favorable impact of foreign exchange rates. On a segment basis as compared to the prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (year period, SLS segment expenses decreased $0.2 million primarily due to lower payroll spending partially of) Tj ET Q q 0 0 0 rg BT 493.32 682.10 Td (fset by higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (other net variable spending. CLC spending decreased $0.5 million primarily due to lower payroll spending and lower other net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (variable spending. Corporate and other spending decreased $0.7 million primarily due to lower stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (expense net of higher char) Tj ET Q q 0 0 0 rg BT 155.33 646.10 Td (ges for increases in deferred compensation plan liabilities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Amortization of intangible assets was flat in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.84 598.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.15 598.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.65 598.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.25 598.10 Td ( compared to the same period last year) Tj ET Q q 0 0 0 rg BT 541.81 598.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Increases due to the acquisition of Raydiance in the fourth quarter of fiscal 2015 were of) Tj ET Q q 0 0 0 rg BT 403.86 586.10 Td (fset by the completion of amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (of certain intangibles from prior acquisitions.) 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 50.00 562.10 Td () Tj ET Q BT /F2 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 550.10 Td (OTHER INCOME \(EXPENSE\) NET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Other expense, net of other income, decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.42 526.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.31 526.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.13 526.10 Td (three months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.44 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.94 526.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.54 526.10 Td ( compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (same period one year ago. ) Tj ET Q q 0 0 0 rg BT 157.00 514.10 Td (The decrease in net other expense was primarily due to $0.5 million higher gains, net of expenses, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (our deferred compensation plan assets and $0.1 million higher interest income partially of) Tj ET Q q 0 0 0 rg BT 409.44 502.10 Td (fset by higher net foreign exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (losses \($0.2 million\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 466.10 Td (INCOME ) Tj ET Q q 0 0 0 rg BT 97.04 466.10 Td (T) Tj ET Q q 0 0 0 rg BT 102.97 466.10 Td (AXES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 75.63 442.10 Td (fective tax rate on income before income taxes for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.87 442.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.98 442.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.28 442.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.28 442.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.61 442.10 Td (25.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.44 442.10 Td ( was lower than the statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.32 430.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.15 430.10 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 184.50 430.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (tax rates including the Singapore tax exemption, the benefit of foreign tax credits and the benefit of federal research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (development tax credits including renewal of the federal research and development credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 477.43 406.10 Td (These amounts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 394.10 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 50.00 382.10 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 50.00 370.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 75.63 358.10 Td (fective tax rate on income before income taxes for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.87 358.10 Td (first) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.98 358.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.28 358.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.28 358.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.61 358.10 Td (26.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.44 358.10 Td ( was lower than the statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.32 346.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.15 346.10 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 184.50 346.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (tax rates including South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the benefit of federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (research and development tax credits including renewal of the federal research and development credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 530.17 322.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 145.06 310.10 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 50.00 298.10 Td (deductible for tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\). ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (LIQUIDITY) Tj ET Q q 0 0 0 rg BT 104.09 274.10 Td ( ) Tj ET Q q 0 0 0 rg BT 106.04 274.10 Td (AND CAPIT) Tj ET Q q 0 0 0 rg BT 160.57 274.10 Td (AL) Tj ET Q q 0 0 0 rg BT 173.91 274.10 Td ( RESOURCES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 250.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.10 250.10 Td (, we had assets classified as cash and cash equivalents and short-term investments, in an aggregate amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 238.10 Td ($336.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.72 238.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.92 238.10 Td ($325.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.82 238.10 Td ( at October 3, 2015. ) Tj ET Q q 0 0 0 rg BT 317.19 238.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.69 238.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.29 238.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.54 238.10 Td ($294.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.44 238.10 Td ( of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (cash and securities was heldin certain of our foreign subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.47 226.10 Td ($78.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.37 226.10 Td ( of which was denominated in currencies other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 127.49 214.10 Td (. ) Tj ET Q q 0 0 0 rg BT 132.31 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 140.95 214.10 Td (e currently have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.12 214.10 Td ($287.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.01 214.10 Td ( of cash held by foreign subsidiaries where we intend to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (permanently reinvest our accumulated earnings in these entities and our current plans do not demonstrate a need for these funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (to support our domestic operations. If, however) Tj ET Q q 0 0 0 rg BT 239.56 190.10 Td (, a portion of these funds were needed for and distributed to our operations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (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 460.29 178.10 Td (The amount of the taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (due would depend on the amount and manner of repatriation, as well as the location from where the funds are repatriated. ) Tj ET Q q 0 0 0 rg BT 538.26 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 546.89 166.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (actively monitor the third-party depository institutions that hold these assets, primarily focusing on the safety of principal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (secondarily maximizing yield on these assets. ) Tj ET Q q 0 0 0 rg BT 235.05 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.69 142.10 Td (e diversify our cash and cash equivalents and investments among various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (financial institutions, money market funds, sovereign debt and other securities in order to reduce our exposure should any one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (of these financial institutions or financial instruments fail or encounter dif) Tj ET Q q 0 0 0 rg BT 345.29 118.10 Td (ficulties. ) Tj ET Q q 0 0 0 rg BT 382.32 118.10 Td (T) Tj ET Q q 0 0 0 rg BT 387.73 118.10 Td (o date, we have not experienced any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (material loss or lack of access to our invested cash, cash equivalents or short-term investments. However) Tj ET Q q 0 0 0 rg BT 469.19 106.10 Td (, we can provide no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (assurances that access to our invested cash, cash equivalents or short-term investments will not be impacted by adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (conditions in the financial markets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 65.10 Td (In the first quarter of fiscal 2016, the second quarter of fiscal 2015 and the fourth quarter of fiscal 2014, we converted $33.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 53.10 Td (million, $42.3 million and $62.7 million, respectively) Tj ET Q q 0 0 0 rg BT 263.77 53.10 Td (, of cash and securities heldin certain of our foreign subsidiaries to U.S. ) Tj ET Q endstream endobj 69 0 obj <>] /Rotate 0 /Contents 70 0 R>> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (dollars and invested those funds within a European subsidiary whose functional currency is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 475.74 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 480.19 742.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.69 742.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.29 742.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (this subsidiary had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.50 730.10 Td ($203.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.39 730.10 Td ( of U.S. dollar denominated investments primarily in U.S. ) Tj ET Q q 0 0 0 rg BT 420.34 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 426.10 730.10 Td (reasury Securities, corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (notes and commercial paper) Tj ET Q q 0 0 0 rg BT 161.90 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 166.35 718.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 215.68 718.10 Td (, there is no translation expense arising from this entity holding U.S. dollar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (denominated investments. ) Tj ET Q q 0 0 0 rg BT 156.74 706.10 Td (The converted funds are not intended to be repatriated to the U.S. and no U.S. tax was triggered on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (the transfer of these funds to the European subsidiary) Tj ET Q q 0 0 0 rg BT 262.62 694.10 Td (. See ITEM 3. QUANTIT) Tj ET Q q 0 0 0 rg BT 365.13 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 371.25 694.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 395.96 694.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 456.54 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 462.65 694.10 Td (TIVE DISCLOSURES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 84.26 682.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 128.80 682.10 Td ( RISK below for more information about risks and trends related to foreign currencies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.38 653.10 Td (ces and Uses of Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 641.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 629.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 629.10 Td (, our primary source of cash has been provided by operations. Other sources of cash in the past three fiscal years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 617.10 Td (include proceeds received from the sale of our stock through our employee stock purchase plan as well as borrowings under our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 605.10 Td (domestic line of credit. Our historical uses of cash have primarily been for the repurchase of our common stock, capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 593.10 Td (expenditures and acquisitions of businesses and technologies. Supplemental information pertaining to our historical sources and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 581.10 Td (uses of cash is presented as follows and should be read in conjunction with our condensed consolidated statements of cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 569.10 Td (flows and the notes to condensed consolidated financial statements:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 437.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 511.60 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 511.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 511.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 511.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 481.60 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 481.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 481.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 481.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 451.60 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 451.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 451.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 451.60 90.00 -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 364 545.6 m 454 545.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 545.6 m 458 545.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 545.6 m 548 545.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 524.6 m 454 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 545.6 m 548 545.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 524.6 m 548 524.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 548.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.10 549.83 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 527.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.25 536.83 Td (January 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.50 528.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.25 536.83 Td (December 27,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.50 528.83 Td (2014) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 514.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.15 515.83 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 501.27 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.50 501.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.65 501.28 Td (14,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 501.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 501.27 Td (31,051) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 486.27 Td (Sales of shares under employee stock plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.65 486.28 Td (3,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 486.27 Td (3,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 471.27 Td (Repurchase of common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 471.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.30 471.32 Td (\(17,298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 471.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 456.27 Td (Capital expenditures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.30 456.33 Td (\(4,765) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 456.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.30 456.32 Td (\(5,138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 456.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 441.27 Td (Short-term borrowings, net of repayments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.65 441.28 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 441.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 425.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 413.10 Td (Net cash provided by operating activities decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.03 413.10 Td ($16.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.92 413.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 413.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.84 413.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.33 413.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.33 413.10 Td ( compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 401.10 Td (same period one year ago. ) Tj ET Q q 0 0 0 rg BT 157.00 401.10 Td (The decrease in cash provided by operating activities was primarily due to lower cash flows from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 389.10 Td (timing of shipments of lar) Tj ET Q q 0 0 0 rg BT 153.70 389.10 Td (ge systems from inventory and lower cash flows from accounts receivable. ) Tj ET Q q 0 0 0 rg BT 455.09 389.10 Td (W) Tj ET Q q 0 0 0 rg BT 463.73 389.10 Td (e believe that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 377.10 Td (existing cash, cash equivalents and short term investments combined with cash to be provided by operating activities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.10 Td (amounts available under our lines of credit will be adequate to cover our working capital needs and planned capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 353.10 Td (expenditures for at least the next 12 months to the extent such items are known or are reasonably determinable based on current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 Td (business and market conditions. However) Tj ET Q q 0 0 0 rg BT 216.51 341.10 Td (, we may elect to finance certain of our capital expenditure requirements through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 329.10 Td (additional borrowings under our bank credit facilities or other sources of capital. ) Tj ET Q q 0 0 0 rg BT 374.44 329.10 Td (W) Tj ET Q q 0 0 0 rg BT 383.08 329.10 Td (e continue to follow our strategy to further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 317.10 Td (strengthen our financial position by using available cash flow to fund operations.) 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 50.00 305.10 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 50.00 293.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 293.10 Td (e intend to continue pursuing acquisition opportunities at valuations we believe are reasonable based upon market conditions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 281.10 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 281.10 Td (, we cannot accurately predict the timing, size and success of our acquisition ef) Tj ET Q q 0 0 0 rg BT 402.34 281.10 Td (forts or our associated potential capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.10 Td (commitments. Furthermore, we cannot assure you that we will be able to acquire businesses on terms acceptable to us. ) Tj ET Q q 0 0 0 rg BT 526.35 269.10 Td (W) Tj ET Q q 0 0 0 rg BT 534.99 269.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.10 Td (expect to fund future acquisitions through existing cash balances and cash flows from operations. If required, we will look for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 245.10 Td (additional borrowings or consider the issuance of securities. ) Tj ET Q q 0 0 0 rg BT 292.26 245.10 Td (The extent to which we will be willing or able to use our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 233.10 Td (stock to make acquisitions will depend on its market value at the time and the willingness of potential sellers to accept it as full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 221.10 Td (or partial payment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 197.10 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 421.25 197.10 Td (1,302,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.25 197.10 Td ( shares of outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 185.10 Td (common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.66 185.10 Td ($57.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.16 185.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.73 185.10 Td ($75.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.62 185.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 161.10 Td (Additional sources of cash available to us were domestic and international currency lines of credit and bank credit facilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 149.10 Td (totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.05 149.10 Td ($62.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.94 149.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.10 149.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.70 149.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.47 149.10 Td ($53.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.36 149.10 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 430.59 149.10 Td (These unsecured international ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 137.10 Td (credit facilities were used in Europe and Japan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.14 137.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.68 137.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.17 137.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.17 137.10 Td (. Our domestic line of credit consists ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 125.10 Td (of a $50 million unsecured revolving credit account, which expires on May 31, 2017 and is subject to covenants related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 113.10 Td (financial ratios and tangible net worth. ) Tj ET Q q 0 0 0 rg BT 206.71 113.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.35 113.10 Td (e were in compliance with these covenants as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.56 113.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.16 113.10 Td (. ) Tj ET Q q 0 0 0 rg BT 478.60 113.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.05 113.10 Td (January2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 101.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 101.10 Td (, we have drawn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.03 101.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.92 101.10 Td ( and have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.56 101.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.46 101.10 Td ( for letters of credit against our domestic line of credit.) 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 50.00 89.10 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 77.10 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 255.21 77.10 Td (5.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.71 77.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.71 77.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.31 77.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.01 77.10 Td (5.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.51 77.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.51 77.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.21 77.10 Td (. ) Tj ET Q q 0 0 0 rg BT 508.03 77.10 Td (The increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 65.10 Td (in our ratio is primarily due to decreases in other current liabilities and accounts payable as well as increases in cash and cash ) 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 (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (equivalents partially of) Tj ET Q q 0 0 0 rg BT 142.01 742.10 Td (fset by increases in income taxes payable and short-term borrowings. Our cash and cash equivalents, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (short-term investments and working capital are as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 647.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 691.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 691.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 691.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 691.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 661.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 661.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 661.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 661.60 90.00 -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 373 704.6 m 463 704.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 704.6 m 557 704.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 707.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.25 708.83 Td (January 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.55 708.83 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 694.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.15 695.83 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 681.27 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.50 681.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.65 681.28 Td (142,343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 681.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 681.27 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 666.27 Td (Short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.65 666.28 Td (193,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 666.27 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 651.27 Td (Working capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.65 651.28 Td (547,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 651.27 Td (530,093) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 635.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 623.10 Td (Contractual Obligations and Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 254.17 623.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 611.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 599.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 599.10 Td (e have no of) Tj ET Q q 0 0 0 rg BT 107.60 599.10 Td (f-balance sheet arrangements as defined under Regulation S-K of the Securities ) Tj ET Q q 0 0 0 rg BT 427.21 599.10 Td (Act of 1933. Information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 587.10 Td (regarding our long-term debt payments, operating lease payments, asset retirement obligations, purchase commitments with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 575.10 Td (suppliers and purchase obligations is provided in Item 7 Management) Tj ET Q q 0 0 0 rg BT 335.77 575.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 404.94 575.10 Td (Analysis of Financial Condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 563.10 Td (Results of Operations of our ) Tj ET Q q 0 0 0 rg BT 169.70 563.10 Td (Annual Report on Form10-K for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.20 563.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.90 563.10 Td (. ) Tj ET Q q 0 0 0 rg BT 459.72 563.10 Td (There have been no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 551.10 Td (material changes in contractual obligations outside of the ordinary course of business since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.28 551.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.99 551.10 Td (. Information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 539.10 Td (regarding our other financial commitments at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.83 539.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.43 539.10 Td ( is provided in the notes to the condensed consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 527.10 Td (statements in this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 515.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 503.10 Td (Changes in Financial Condition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 491.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 479.10 Td (Cash provided by operating activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.23 479.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.78 479.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.26 479.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.26 479.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.81 479.10 Td ($14.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.71 479.10 Td (, which included net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 467.10 Td ($20.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 467.10 Td (, depreciation and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.45 467.10 Td ($8.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.34 467.10 Td (, stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.62 467.10 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.52 467.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.95 467.10 Td ($0.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 455.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 455.10 Td ( other partially of) Tj ET Q q 0 0 0 rg BT 148.41 455.10 Td (fset by cash used by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.02 455.10 Td ($14.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.92 455.10 Td ( and net increases in deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.10 Td (assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.66 443.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 443.10 Td (. Cash provided by operating activities during the first three months of fiscal 2015 was $31.1 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.10 Td (which included net income of $17.4 million, depreciation and amortization of $8.4 million, decreases in net deferred tax assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.10 Td (of $7.0 million, stock-based compensation expense of $4.4 million and $0.4 million other partially of) Tj ET Q q 0 0 0 rg BT 454.75 419.10 Td (fset by cash used by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.10 Td (operating assets and liabilities of $6.5 million.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.10 Td (Cash used in investing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.70 383.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.24 383.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.72 383.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.72 383.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.28 383.10 Td ($3.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.17 383.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.04 383.10 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.93 383.10 Td ( used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 371.10 Td (to acquire property and equipment and improve buildings net of proceeds from dispositions partially of) Tj ET Q q 0 0 0 rg BT 462.50 371.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.94 371.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.83 371.10 Td ( net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 359.10 Td (sales of available-for) Tj ET Q q 0 0 0 rg BT 133.65 359.10 Td (-sale securities. Cash provided by investing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.92 359.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.47 359.10 Td ( of fiscal 2015 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 347.10 Td ($29.0 million, which included $33.6 million net sales of available-for) Tj ET Q q 0 0 0 rg BT 327.52 347.10 Td (-sale securities partially of) Tj ET Q q 0 0 0 rg BT 433.13 347.10 Td (fset by $4.6 million used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 335.10 Td (acquire property and equipment and improve buildings net of proceeds from dispositions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 323.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 311.10 Td (Cash provided by financing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.23 311.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.78 311.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.26 311.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.26 311.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.81 311.10 Td ($3.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.71 311.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.58 311.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.47 311.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 299.10 Td (net short-term borrowings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.86 299.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.75 299.10 Td ( generated from our employee stock option and purchase plans partially of) Tj ET Q q 0 0 0 rg BT 519.98 299.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 287.10 Td ($5.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 287.10 Td ( net settlement of restricted stock.) 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 233.85 287.10 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 236.35 287.10 Td (Cash used by financing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.37 287.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.91 287.10 Td ( of fiscal 2015 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 275.10 Td ($19.1 million, which included $17.3 million repurchases of common stock and $5.2 million net settlement of restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 263.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 263.10 Td (fset by $3.4 million generated from our employee stock option and purchase plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 251.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 239.10 Td (Changes in exchange rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.17 239.10 Td (first three months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.71 239.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.20 239.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.20 239.10 Td ( decreased our cash balances by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.14 239.10 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.03 239.10 Td (. Changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 227.10 Td (exchange rates during the first three months of fiscal 2015 decreased our cash balances by $2.8 million.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 215.10 Td () 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 50 201.53505859375002 m 225.771484375 201.53505859375002 l s q 0 0 0 rg BT 50.00 203.10 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 203.10 Td ( ) Tj ET Q q 0 0 0 rg BT 93.44 203.10 Td (ACCOUNTING ST) Tj ET Q q 0 0 0 rg BT 176.88 203.10 Td (ANDARDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 191.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 179.10 Td (See Note 2. Recent ) Tj ET Q q 0 0 0 rg BT 133.03 179.10 Td (Accounting Standards in the Notes to Condensed Consolidated Financial Statements for a full description ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 167.10 Td (of recent accounting pronouncements, including the respective dates of adoption or expected adoption and ef) Tj ET Q q 0 0 0 rg BT 485.50 167.10 Td (fects on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 155.10 Td (condensed consolidated financial position, results of operations and cash flows.) 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 (36) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 3. QUANTIT) Tj ET Q q 0 0 0 rg BT 135.10 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 141.58 742.25 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 167.98 742.25 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 230.86 742.25 Td (A) Tj ET Q q 0 0 0 rg BT 237.34 742.25 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 336.82 742.25 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 372.20 742.25 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 419.52 742.25 Td ( RISK) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (Market risk disclosur) Tj ET Q q 0 0 0 rg BT 142.04 718.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 694.25 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 461.61 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.25 694.25 Td (e do not use derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (financial instruments for speculative or trading purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (Inter) Tj ET Q q 0 0 0 rg BT 71.48 658.25 Td (est rate sensitivity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 634.25 Td ( portion of our investment portfolio is composed of fixed income securities. ) Tj ET Q q 0 0 0 rg BT 361.70 634.25 Td (These securities are subject to interest rate risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (and will fall in value if market interest rates increase. If market interest rates were to increase immediately \(whether due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (changes in overall market rates or credit worthiness of the issuers of our individual securities\) and uniformly by 10% from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (levels at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.54 598.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.14 598.25 Td (, 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 50.00 586.25 Td (assets, would decline by an immaterial amount due to their short-term maturities. ) Tj ET Q q 0 0 0 rg BT 376.96 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 385.60 586.25 Td (e have the ability to generally hold our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 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 523.85 574.25 Td (fected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (any significant degree by the ef) Tj ET Q q 0 0 0 rg BT 175.60 562.25 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 522.32 562.25 Td (, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 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 50.00 538.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 526.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.10 526.25 Td (, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 263.89 526.25 Td (-sale debt securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.30 526.25 Td ($186.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.19 526.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.19 526.25 Td ($9.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.08 526.25 Td ( of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (classified as cash and cash equivalents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.55 514.25 Td ($176.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.44 514.25 Td ( of which was classified as short-term investments. Gross unrealized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 180.32 502.25 Td (-sale debt securities were both less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.10 502.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.99 502.25 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.21 502.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.81 502.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 478.25 Td (eign curr) Tj ET Q q 0 0 0 rg BT 104.34 478.25 Td (ency exchange risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 454.25 Td (e maintain operations in various countries outside of the United States and have foreign subsidiaries that manufacture and sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 208.96 442.25 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 468.75 442.25 Td (, we do generate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (revenues in other currencies, primarily the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 298.70 430.25 Td (Y) Tj ET Q q 0 0 0 rg BT 304.92 430.25 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 391.66 430.25 Td (W) Tj ET Q q 0 0 0 rg BT 400.30 430.25 Td (on and the Chinese Renminbi. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (Additionally we have operations in dif) Tj ET Q q 0 0 0 rg BT 203.95 418.25 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 50.00 406.25 Td (British Pound Sterling, Singapore Dollars and Malaysian Ringgit. ) Tj ET Q q 0 0 0 rg BT 314.99 406.25 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 50.00 394.25 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 50.00 382.25 Td (Europe so that a weakening Euro is advantageous to the Company) Tj ET Q q 0 0 0 rg BT 317.71 382.25 Td (s financial results. ) Tj ET Q q 0 0 0 rg BT 392.51 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 401.15 382.25 Td (e attempt to limit these exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 202.84 370.25 Td (W) Tj ET Q q 0 0 0 rg BT 211.47 370.25 Td (e utilize derivative instruments, primarily forward contracts with maturities of two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (months or less, to manage our exposure associated with anticipated cash flows and net asset and liability positions denominated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (in foreign currencies. Gains and losses on the forward contracts are mitigated by gains and losses on the underlying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 101.48 334.25 Td (W) Tj ET Q q 0 0 0 rg BT 110.12 334.25 Td (e do not use derivative financial instruments for trading purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (On occasion, we enter into currency forward exchange contracts to hedge specific anticipated foreign currency denominated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (transactions generally expected to occur within the next 12months. ) Tj ET Q q 0 0 0 rg BT 322.24 298.25 Td (These cash flow hedges are designated for hedge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (accounting treatment and gains and losses on these contracts are recorded in accumulated other comprehensive income in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (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 50.00 262.25 Td (earnings. See Note 6 "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 287.08 262.25 Td (Activities".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 238.25 Td (e do not anticipate any material adverse ef) Tj ET Q q 0 0 0 rg BT 227.54 238.25 Td (fect on our condensed consolidated financial position, results of operations or cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (flows resulting from the use of these instruments. ) Tj ET Q q 0 0 0 rg BT 250.06 226.25 Td (There can be no assurance that these strategies will be ef) Tj ET Q q 0 0 0 rg BT 476.45 226.25 Td (fective or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (transaction losses can be minimized or forecasted accurately) Tj ET Q q 0 0 0 rg BT 291.19 214.25 Td (. ) Tj ET Q q 0 0 0 rg BT 296.01 214.25 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 50.00 202.25 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 508.23 202.25 Td (ficulties or is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 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 50.00 178.25 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 50.00 154.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 154.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.10 154.25 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.36 154.25 Td ($294.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.25 154.25 Td ( of our cash, cash equivalents and short-term investments were heldoutside ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (the U.S. in certain of our foreign operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.67 142.25 Td ($78.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.56 142.25 Td ( of which was denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 550.43 142.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 118.25 Td ( hypothetical 10% change in foreign currency rates on our forward contracts would not have a material impact on our results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (of operations, cash flows or financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 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 412.66 82.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.25 82.25 Td (. ) Tj ET Q q 0 0 0 rg BT 481.07 82.25 Td (The table presents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (the weighted average contractual foreign currency exchange rates, the value of the contracts in U.S. dollars at the contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (exchange rate as of the contract maturity date and fair value. ) Tj ET Q q 0 0 0 rg BT 294.15 58.25 Td (The U.S. fair value represents the fair value of the contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.25 Td (valued at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.87 46.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.47 46.25 Td ( rates.) 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 (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Forward contracts to sell \(buy\) foreign currencies for U.S. dollars \(in thousands, except contract rates\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 686.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 686.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 686.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 686.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 686.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 686.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 656.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 656.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 656.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 656.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 656.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 656.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 626.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 626.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 626.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 626.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 626.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 626.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 596.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 596.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 596.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 596.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 596.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 596.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 566.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 566.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 566.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 566.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 566.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 566.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 536.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 536.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 536.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 536.60 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 327.5 686.6 m 397.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 686.6 m 471.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 686.6 m 545.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 686.6 m 397.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 686.6 m 471.5 686.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 686.6 m 545.5 686.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.75 698.83 Td (A) Tj ET Q q 0 0 0 rg BT 336.93 698.83 Td (verageContract) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.00 690.83 Td (Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.20 698.83 Td (U.S.Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.10 690.83 Td (Contract) Tj ET Q q 0 0 0 rg BT 442.61 690.83 Td (V) Tj ET Q q 0 0 0 rg BT 447.65 690.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.85 698.83 Td (U.S.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.15 690.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 506.67 690.83 Td () Tj ET Q q 0 0 0 rg BT 508.52 690.83 Td (V) Tj ET Q q 0 0 0 rg BT 513.56 690.83 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 676.27 Td (Non-Designated - For US Dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 661.27 Td (Euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 661.27 Td (1.0609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 661.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 661.32 Td (\(53,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 661.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 661.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 661.32 Td (\(1,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 661.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 646.27 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 646.27 Td (121.4383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 646.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 646.27 Td (21,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 646.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 646.27 Td (340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 631.27 Td (British Pound) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 631.27 Td (1.4971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 631.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 631.27 Td (1,117) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 631.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 631.32 Td (\(6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 631.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 616.27 Td (South Korean Won) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 616.27 Td (1,162.3138) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 616.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 616.27 Td (14,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 616.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 616.32 Td (\(131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 616.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 601.27 Td (Chinese Renminbi) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 601.27 Td (6.4638) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 601.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 601.27 Td (9,957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 601.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 601.32 Td (\(37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 601.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 586.27 Td (Singaporian Dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 586.27 Td (1.4106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 586.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 586.32 Td (\(3,030) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 586.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 586.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 586.32 Td (\(5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 586.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 571.27 Td (Malaysian Ringgit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 571.27 Td (4.2300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 571.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 571.27 Td (2,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 571.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 571.32 Td (\(42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 571.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 541.27 Td (Designated - For Euros) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 526.27 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 356.50 533.20 37.50 -9.09 re f /GS0 gs q 0 0 0 rg BT 356.50 526.27 Td (121.4383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 526.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 526.27 Td (901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 526.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 526.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET 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 (38) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 4. CONTROLS ) Tj ET Q q 0 0 0 rg BT 147.24 742.25 Td (AND PROCEDURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (Management) Tj ET Q q 0 0 0 rg BT 109.06 718.25 Td (s Evaluation of Disclosur) Tj ET Q q 0 0 0 rg BT 215.28 718.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 247.59 718.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 290.75 718.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 320.00 718.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 694.25 Td (e have evaluated the ef) Tj ET Q q 0 0 0 rg BT 150.07 694.25 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 50.00 682.25 Td (defined in Rule13a-15\(e\)under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 278.81 682.25 Td (Act of 1934, as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.24 682.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.84 682.25 Td ( \(Evaluation Date\). ) Tj ET Q q 0 0 0 rg BT 506.89 682.25 Td (The controls ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (evaluation was conducted under the supervision and with the participation of management, including our Chief Executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (Of) Tj ET Q q 0 0 0 rg BT 60.37 658.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 172.92 658.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 190.69 658.25 Td (. Based on this evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 394.62 658.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 507.18 658.25 Td (ficer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (concluded as of the Evaluation Date that our disclosure controls and procedures wereef) Tj ET Q q 0 0 0 rg BT 401.08 646.25 Td (fective in providing reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (assurance that information required to be disclosed by us in reports that we file or submit under the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 532.09 634.25 Td (Act of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (1934, as amended, is \(i\)recorded, processed, summarized and reported within the time periods specified in the Securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (Exchange Commission) Tj ET Q q 0 0 0 rg BT 145.27 610.25 Td (s rulesand forms and \(ii\)accumulated and communicated to our management, including our Chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 102.85 598.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 215.41 598.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 233.32 598.25 Td (, as appropriate, to allow timely decisions regarding required disclosures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (Changes in Internal Contr) Tj ET Q q 0 0 0 rg BT 162.89 574.25 Td (ol over) Tj ET Q q 0 0 0 rg BT 191.86 574.25 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 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 487.32 550.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.92 550.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (that have materially af) Tj ET Q q 0 0 0 rg BT 139.50 538.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 326.45 538.25 Td (fect, our internal control over financial reporting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (Inher) Tj ET Q q 0 0 0 rg BT 73.71 514.25 Td (ent Limitations over) Tj ET Q q 0 0 0 rg BT 160.19 514.25 Td ( Internal Contr) Tj ET Q q 0 0 0 rg BT 225.56 514.25 Td (ol) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 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 50.00 478.25 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 50.00 466.25 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 50.00 454.25 Td (or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 148.31 454.25 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 309.47 454.25 Td (fectiveness to future periods are subject to the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 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 50.00 430.25 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 50.00 418.25 Td (the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 557.32 418.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 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 50.00 394.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 382.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 382.25 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 95.00 370.25 Td (dispositions of our assets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.25 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 358.25 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 95.00 346.25 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 95.00 334.25 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 68.00 322.25 Td (\(iii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 322.25 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 95.00 310.25 Td (disposition of our assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 307.26 310.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (Management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 240.87 286.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 353.43 286.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 371.34 286.25 Td (, does not expect that our internal controls will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td (prevent or detect all errors and all fraud. ) Tj ET Q q 0 0 0 rg BT 212.98 274.25 Td (A) Tj ET Q q 0 0 0 rg BT 219.65 274.25 Td ( control system, no matter how well designed and operated, can provide only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (reasonable, not absolute, assurance that the objectives of the control system are met. Further) Tj ET Q q 0 0 0 rg BT 418.37 262.25 Td (, the design of a control system ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Because of the inherent limitations in all control systems, no evaluation of internal controls can provide absolute assurance that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (all control issues and instances of fraud, if any) Tj ET Q q 0 0 0 rg BT 235.13 226.25 Td (, have been detected. ) Tj ET Q q 0 0 0 rg BT 320.64 226.25 Td (Also, any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 438.76 226.25 Td (fectiveness of controls in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (future periods are subject to the risk that those internal controls may become inadequate because of changes in business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td (conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td () 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 (39) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 742.25 Td (II. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 742.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 1. LEGAL) Tj ET Q q 0 0 0 rg BT 123.63 718.25 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Information with respect to this item may be found in Note 1) Tj ET Q q 0 0 0 rg BT 293.19 694.25 Td (1 to our condensed consolidated financial statements in Part I, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Item 1 of this report and is incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (ITEM 1A. RISK F) Tj ET Q q 0 0 0 rg BT 128.21 648.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 149.14 648.25 Td (ORS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (Y) Tj ET Q q 0 0 0 rg BT 54.14 624.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 108.77 624.25 Td (efully consider the followings risks when considering an investment in our Common Stock. These risks could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 612.25 Td (materially affect our business, r) Tj ET Q q 0 0 0 rg BT 176.62 612.25 Td (esults of operations or financial condition, cause the trading price of our Common Stock to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 600.25 Td (decline materially or cause our actual r) Tj ET Q q 0 0 0 rg BT 208.54 600.25 Td (esults to differ materially fr) Tj ET Q q 0 0 0 rg BT 318.17 600.25 Td (om those expected or those expr) Tj ET Q q 0 0 0 rg BT 446.37 600.25 Td (essed in any forwar) Tj ET Q q 0 0 0 rg BT 524.60 600.25 Td (d-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (looking statements made by us. These risks ar) Tj ET Q q 0 0 0 rg BT 234.94 588.25 Td (e not exclusive, and additional risks to which we ar) Tj ET Q q 0 0 0 rg BT 440.10 588.25 Td (e subject include, but ar) Tj ET Q q 0 0 0 rg BT 536.10 588.25 Td (e not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 576.25 Td (limited to, the factors mentioned under Forwar) Tj ET Q q 0 0 0 rg BT 243.28 576.25 Td (d-Looking Statements and the risk of our businesses described elsewher) Tj ET Q q 0 0 0 rg BT 535.94 576.25 Td (e in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 564.25 Td (this annual r) Tj ET Q q 0 0 0 rg BT 100.25 564.25 Td (eport. ) Tj ET Q q 0 0 0 rg BT 126.17 564.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 175.06 564.25 Td (, these risks and uncertainties described her) Tj ET Q q 0 0 0 rg BT 351.05 564.25 Td (ein ar) Tj ET Q q 0 0 0 rg BT 374.29 564.25 Td (e not the only ones facing us. Other events ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 552.25 Td (that we do not curr) Tj ET Q q 0 0 0 rg BT 125.79 552.25 Td (ently anticipate or that we curr) Tj ET Q q 0 0 0 rg BT 250.13 552.25 Td (ently deem immaterial also may affect our business, r) Tj ET Q q 0 0 0 rg BT 463.89 552.25 Td (esults of operations or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 540.25 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 49.5 514.68505859375 m 297.9130859375 514.68505859375 l s q 0 0 0 rg BT 49.50 516.25 Td (BUSINESS ENVIRONMENT) Tj ET Q q 0 0 0 rg BT 177.41 516.25 Td ( ) Tj ET Q q 0 0 0 rg BT 179.35 516.25 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 248.18 516.25 Td (Y) Tj ET Q q 0 0 0 rg BT 255.03 516.25 Td ( ) Tj ET Q q 0 0 0 rg BT 257.35 516.25 Td (TRENDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 492.25 Td ( operating r) Tj ET Q q 0 0 0 rg BT 117.46 492.25 Td (esults, including net sales, net income \(loss\) and adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 398.89 492.25 Td ( in dollars and as a per) Tj ET Q q 0 0 0 rg BT 495.96 492.25 Td (centage of net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 480.25 Td (sales, as well as our) Tj ET Q q 0 0 0 rg BT 131.82 480.25 Td ( stock price have varied in the past, and our) Tj ET Q q 0 0 0 rg BT 318.31 480.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 342.85 480.25 Td (e operating r) Tj ET Q q 0 0 0 rg BT 397.65 480.25 Td (esults will continue to be subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 468.25 Td (quarterly and annual fluctuations based upon numer) Tj ET Q q 0 0 0 rg BT 275.48 468.25 Td (ous factors, including those discussed in this Item 1A) Tj ET Q q 0 0 0 rg BT 499.68 468.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 456.25 Td (thr) Tj ET Q q 0 0 0 rg BT 62.65 456.25 Td (oughout this r) Tj ET Q q 0 0 0 rg BT 122.48 456.25 Td (eport. Our) Tj ET Q q 0 0 0 rg BT 167.85 456.25 Td ( stock price will continue to be subject to daily variations as well. Our) Tj ET Q q 0 0 0 rg BT 463.77 456.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 488.31 456.25 Td (e operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.76 444.25 Td (esults and stock price may not follow any past tr) Tj ET Q q 0 0 0 rg BT 259.41 444.25 Td (ends or) Tj ET Q q 0 0 0 rg BT 290.62 444.25 Td ( meet our) Tj ET Q q 0 0 0 rg BT 330.98 444.25 Td ( guidance and expectations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.25 Td (Our net sales and operating results, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 296.11 420.25 Td ( percentage, net income \(loss\) and operating expenses, and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.25 Td (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 q 0 0 0 rg BT 533.58 408.25 Td (W) Tj ET Q q 0 0 0 rg BT 542.22 408.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td (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 521.38 396.25 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.25 Td (predict, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 372.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 360.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 360.25 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 85.50 348.25 Td (we serve;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 336.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 324.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 324.25 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 67.50 312.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 300.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 300.25 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 85.50 288.25 Td (limited source components, in a timely manner) Tj ET Q q 0 0 0 rg BT 273.11 288.25 Td (, in the quantity) Tj ET Q q 0 0 0 rg BT 335.23 288.25 Td (, quality and prices desired;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 264.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 264.25 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 67.50 240.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 240.25 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 67.50 228.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 216.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 216.25 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 67.50 192.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 192.25 Td (fluctuations in our product mix;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 180.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 168.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 168.25 Td (the ability of our customers' other suppliers to provide suf) Tj ET Q q 0 0 0 rg BT 316.80 168.25 Td (ficient material to support our customers' products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 156.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 144.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 144.25 Td (currency fluctuations and stability) Tj ET Q q 0 0 0 rg BT 221.20 144.25 Td (, in particular the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 368.83 144.25 Td (Y) Tj ET Q q 0 0 0 rg BT 375.05 144.25 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 461.79 144.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.43 144.25 Td (on, the Chinese ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 132.25 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 67.50 120.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 108.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 108.25 Td (commodity pricing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 96.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 84.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 84.25 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 72.25 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 60.25 Td () 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 (40) 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 (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 85.50 730.10 Td (defects;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (our ability to successfully expand our manufacturing footprint in Gttingen, Germany and add optics fabrication ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 694.10 Td (capacity at our site in Richmond, California;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 Td (our ability to manage our manufacturing capacity and that of our suppliers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (our reliance on contract manufacturing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 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 (the rate of market acceptance of our new products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td () 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 (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 67.50 586.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.10 Td (expenses associated with acquisition-related activities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td (seasonal sales trends;) 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 (access to applicable credit markets by us, our customers and their end customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.10 Td (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 85.50 490.10 Td (products by us or our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td () 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 (our ability to control expenses;) 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 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 (the level of capital spending of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.10 Td (potential excess and/or obsolescence of our inventory;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 406.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 394.10 Td (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 85.50 382.10 Td (and business;) 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 67.50 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.10 Td (costs related to acquisitions of technology or businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.10 Td (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 67.50 322.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.10 Td (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 67.50 298.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td (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 85.50 274.10 Td (universities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 250.10 Td (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 67.50 238.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 Td (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 67.50 214.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 202.10 Td (changes in policy) Tj ET Q q 0 0 0 rg BT 154.83 202.10 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 85.50 190.10 Td (standards;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 166.10 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 67.50 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 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 67.50 118.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 118.10 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 85.50 106.10 Td (laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 Td (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 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 58.10 Td (costs and expenses from litigation;) 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 (41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 742.10 Td (costs 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 85.50 730.10 Td (business;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (government support of alternative ener) Tj ET Q q 0 0 0 rg BT 240.82 706.10 Td (gy industries, such as solar;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (the 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 85.50 670.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (distraction of management related to acquisition or divestment activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (In addition, we often recognize a substantial portion of our sales in the last month of our fiscal quarters. Our expenses for any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (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 476.43 610.10 Td (, the adverse impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (of the shortfall on our operating results may be magnified by our inability to adjust spending quickly enough to compensate for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (the shortfall. ) Tj ET Q q 0 0 0 rg BT 102.36 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.00 586.10 Td (e also base our manufacturing on our forecasted product mix for the quarter) Tj ET Q q 0 0 0 rg BT 413.11 586.10 Td (. If the actual product mix varies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (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 406.21 574.10 Td (, which would result in delays in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (shipment of our products. ) Tj ET Q q 0 0 0 rg BT 154.21 562.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 203.55 562.10 Td (, variations in timing of sales, particularly for our higher priced, higher mar) Tj ET Q q 0 0 0 rg BT 504.67 562.10 Td (gin products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (can cause significant fluctuations in quarterly operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 538.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 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 383.63 526.10 Td (-to-quarter and year) Tj ET Q q 0 0 0 rg BT 462.83 526.10 Td (-to-year comparisons of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (our historical operating results may not be meaningful. ) Tj ET Q q 0 0 0 rg BT 271.02 514.10 Td (Y) Tj ET Q q 0 0 0 rg BT 277.24 514.10 Td (ou should not rely on our results for any quarter or year as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (indication of our future performance. Our operating results in future quarters and years may be below public market analysts' or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (investors' expectations, which would likely cause the price of our stock to fall. In addition, over the past several years, U.S. and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (global equity markets have experienced significant price and volume fluctuations that have af) Tj ET Q q 0 0 0 rg BT 423.63 478.10 Td (fected the stock prices of many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (technology companies both in and outside our industry) Tj ET Q q 0 0 0 rg BT 268.54 466.10 Td (. ) Tj ET Q q 0 0 0 rg BT 273.36 466.10 Td (There has not always been a direct correlation between this volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (and the performance of particular companies subject to these stock price fluctuations. ) Tj ET Q q 0 0 0 rg BT 393.36 454.10 Td (These factors, as well as general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (economic and political conditions or investors' concerns regarding the credibility of corporate financial statements, may have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 430.10 Td (fect on the market price of our stock in the future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 406.10 Td (e depend on sole source or limited source suppliers, both internal and external, for some of our key components and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (materials, including exotic materials, certain cutting-edge optics and crystals, in our products, which make us susceptible to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 299.88 382.10 Td (fect our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 358.10 Td (e currently purchase several key components and materials used in the manufacture of our products from sole source or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 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 49.50 334.10 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 49.50 322.10 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 49.50 310.10 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 470.60 310.10 Td (Thailand and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 49.50 286.10 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 49.50 274.10 Td (result of the conflict in Ukraine. ) Tj ET Q q 0 0 0 rg BT 180.11 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 188.75 274.10 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 49.50 262.10 Td (terms and conditions and we do not have guaranteed supply arrangements with many of these suppliers. For certain long-lead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (time supplies or in order to lock-in pricing, we may be obligated to place purchase orders which are not cancelable or otherwise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (assume liability for a lar) Tj ET Q q 0 0 0 rg BT 146.51 238.10 Td (ge amount of the ordered supplies, which limit our ability to adjust down our inventory liability in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (event of market downturns or other customer cancellations or rescheduling of their purchase orders for our products. Some of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (our products, particularly in the flat panel display industry) Tj ET Q q 0 0 0 rg BT 281.85 214.10 Td (, require designs and specifications which are at the cutting-edge of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (available technologies. Our and our customers' designs and specifications frequently change to meet rapidly evolving market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (demands. ) Tj ET Q q 0 0 0 rg BT 89.50 190.10 Td (Accordingly certain of our products require components and supplies which may be technologically dif) Tj ET Q q 0 0 0 rg BT 502.81 190.10 Td (ficult and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (unpredictable 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 533.24 178.10 Td (. ) Tj ET Q q 0 0 0 rg BT 538.06 178.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (characteristics further pressure the timely delivery of such components. ) Tj ET Q q 0 0 0 rg BT 337.55 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 346.19 166.10 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 49.50 154.10 Td (in the future. ) Tj ET Q q 0 0 0 rg BT 103.19 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.83 154.10 Td (e may experience dif) Tj ET Q q 0 0 0 rg BT 195.21 154.10 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 49.50 142.10 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 49.50 130.10 Td (and our customers' technical requirements. ) Tj ET Q q 0 0 0 rg BT 222.73 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 231.37 130.10 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 49.50 118.10 Td (products of these potential alternative suppliers. Furthermore, financial or other dif) Tj ET Q q 0 0 0 rg BT 380.88 118.10 Td (ficulties faced by these suppliers or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (significant changes in demand for these components or materials could limit their availability) Tj ET Q q 0 0 0 rg BT 422.63 106.10 Td (. ) Tj ET Q q 0 0 0 rg BT 427.45 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 436.09 106.10 Td (e continue to consolidate our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (supply base and move supplier locations. ) Tj ET Q q 0 0 0 rg BT 216.23 94.10 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 82.10 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 70.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 99.40 70.10 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 58.10 Td (orders from our customers could decrease or be delayed.) 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 (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (Any interruption or delay in the supply of any of these components or materials, or the inability to obtain these components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (materials from alternate sources at acceptable prices and within a reasonable amount of time, or our failure to properly manage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (these moves, would impair our ability to meet scheduled product deliveries to our customers and could cause customers to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (cancel orders. ) Tj ET Q q 0 0 0 rg BT 107.34 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 115.98 706.10 Td (e have historically relied exclusively on our own production capability to manufacture certain strategic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (components, crystals, semiconductor lasers, lasers and laser) Tj ET Q q 0 0 0 rg BT 288.40 694.10 Td (-based systems. Because we manufacture, package and test these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (components, products and systems at our own facilities, and such components, products and systems are not readily available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (from other sources, any interruption in manufacturing would adversely af) Tj ET Q q 0 0 0 rg BT 343.12 670.10 Td (fect our business. Since many of our products have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (lengthy qualification periods, our ability to introduce multiple suppliers for parts may be limited. In addition, our failure to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (achieve adequate manufacturing yields of these items at our manufacturing facilities may materially and adversely af) Tj ET Q q 0 0 0 rg BT 517.19 646.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 610.10 Td (e participate in the microelectronics market, which requires significant research and development expenses to develop and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (maintain products and a failure to achieve market acceptance for our products could have a significant negative impact on ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (our business and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (The microelectronics market is characterized by rapid technological change, frequent product introductions, the volatility of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (product supply and demand, changing customer requirements and evolving industry standards. ) Tj ET Q q 0 0 0 rg BT 430.62 550.10 Td (The nature of this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (requires significant research and development expenses to participate, with substantial resources invested in advance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (material sales of our products to our customers in this market. ) Tj ET Q q 0 0 0 rg BT 298.89 526.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 348.79 526.10 Td (, our product of) Tj ET Q q 0 0 0 rg BT 410.82 526.10 Td (ferings may become obsolete given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (the frequent introduction of alternative technologies. In the event either our customers' or our products fail to gain market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (acceptance, or the microelectronics market fails to grow) Tj ET Q q 0 0 0 rg BT 273.19 502.10 Td (, it would likely have a significant negative ef) Tj ET Q q 0 0 0 rg BT 456.01 502.10 Td (fect on our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 466.10 Td (e participate in the flat panel display market, which has a relatively limited number of end customer manufacturers. Our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (backlog, timing of net sales and results of operations could be negatively impacted in the event our customers reschedule or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (cancel orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (In the flat panel display market, there are a relatively limited number of manufacturers who are the end customers for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (annealing products. In each of our last three fiscal years and the first fiscal quarter of 2016, ) Tj ET Q q 0 0 0 rg BT 418.25 406.10 Td (Advanced Process Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (Corporation, an integrator in the flat panel display market based in South Korea, has contributed more than 10% of our revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (Another customer) Tj ET Q q 0 0 0 rg BT 121.02 382.10 Td (, Japanese Steel ) Tj ET Q q 0 0 0 rg BT 186.38 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 195.01 382.10 Td (orks, Ltd., an integrator in the flat panel display market based in Japan, has contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (more than 10% of our revenue in the first fiscal quarter of 2016. Given macroeconomic conditions, varying consumer demand ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (and technical process limitations at manufacturers, our customers may seek to reschedule or cancel orders. ) Tj ET Q q 0 0 0 rg BT 477.77 358.10 Td (This was recently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (seen with a requested expedited shipment of a Linebeam 1500 product for our third fiscal quarter of 2015, which delivery date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (was then changed at the customer) Tj ET Q q 0 0 0 rg BT 184.54 334.10 Td () Tj ET Q q 0 0 0 rg BT 187.32 334.10 Td (s request back to its originally scheduled date in the fourth fiscal quarter of 2015. ) Tj ET Q q 0 0 0 rg BT 514.27 334.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 322.10 Td (ger flat panel-related systems have lar) Tj ET Q q 0 0 0 rg BT 211.56 322.10 Td (ge average selling prices. ) Tj ET Q q 0 0 0 rg BT 314.57 322.10 Td (Any rescheduling or canceling of such orders by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (customers will likely have a significant impact on our quarterly or annual net sales and results of operations and could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (negatively impact inventory values and backlog. ) Tj ET Q q 0 0 0 rg BT 245.28 298.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 295.18 298.10 Td (, challenges in meeting evolving technological requirements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (these complex products by us and our suppliers could also result in delays in shipments, rescheduled or canceled orders by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (customers. ) Tj ET Q q 0 0 0 rg BT 94.87 274.10 Td (This could negatively impact our backlog, timing of net sales and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.94 250.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.54 250.10 Td (, flat panel display systems represented 46% of our backlog. Since our backlog includes higher average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (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 498.61 238.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (financial results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 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 49.50 166.10 Td (Lasers and laser systems are inherently complex in design and require ongoing regular maintenance. ) Tj ET Q q 0 0 0 rg BT 453.35 166.10 Td (The manufacture of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (lasers, laser products and systems involves a highly complex and precise process. ) Tj ET Q q 0 0 0 rg BT 377.20 154.10 Td (As a result of the technological complexity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (our products, in particular the flat panel annealing systems, changes in our or our suppliers' manufacturing processes or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (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 433.63 130.10 Td (fect on our ability to achieve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (acceptable manufacturing yields and product reliability) Tj ET Q q 0 0 0 rg BT 269.60 118.10 Td (. ) Tj ET Q q 0 0 0 rg BT 274.42 118.10 Td (T) Tj ET Q q 0 0 0 rg BT 279.83 118.10 Td (o the extent that we do not achieve and maintain our projected yields ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (or product reliability) Tj ET Q q 0 0 0 rg BT 131.60 106.10 Td (, our business, operating results, financial condition and customer relationships would be adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 94.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 86.33 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.97 94.10 Td (e provide warranties on a majority of our product sales, and reserves for estimated warranty costs are recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (during the period of sale. ) Tj ET Q q 0 0 0 rg BT 152.07 82.10 Td (The determination of such reserves requires us to make estimates of failure rates and expected costs to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 229.32 70.10 Td (. ) Tj ET Q q 0 0 0 rg BT 234.14 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.78 70.10 Td (e typically 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 58.10 Td (each product line. If actual return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 362.23 58.10 Td (fer significantly from our estimates, adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (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 372.82 46.10 Td (fect on our results of operations.) Tj ET Q endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (Our customers may discover defects in our products after the products have been fully deployed and operated, including under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (the end user's peak stress conditions. In addition, some of our products are combined with products from other vendors, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (may contain defects. ) Tj ET Q q 0 0 0 rg BT 133.91 706.10 Td (As a result, should problems occur) Tj ET Q q 0 0 0 rg BT 272.38 706.10 Td (, it may be dif) Tj ET Q q 0 0 0 rg BT 328.02 706.10 Td (ficult to identify the source of the problem. If we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (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 67.50 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 Td (loss of customers or orders;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (increased costs of product returns and warranty expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.10 Td (damage to our brand reputation;) 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 (failure to attract new customers or achieve market acceptance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.10 Td (diversion of development, engineering and manufacturing resources; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td (legal actions by our customers and/or their end users.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (The occurrence of any one or more of the foregoing factors could seriously harm our business, financial condition and results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Continued volatility in the advanced packaging and semiconductor manufacturing markets could adversely af) Tj ET Q q 0 0 0 rg BT 501.55 490.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 454.10 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 49.50 442.10 Td (applications and semiconductor equipment companies. ) Tj ET Q q 0 0 0 rg BT 270.93 442.10 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 49.50 430.10 Td (severe cyclical variations in product supply and demand, which have often severely af) Tj ET Q q 0 0 0 rg BT 393.91 430.10 Td (fected the demand for semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (manufacturing equipment, including laser) Tj ET Q q 0 0 0 rg BT 216.47 418.10 Td (-based tools and systems. ) Tj ET Q q 0 0 0 rg BT 320.45 418.10 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 49.50 406.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 406.10 Td (ficult to predict, and we may not be able to respond ef) Tj ET Q q 0 0 0 rg BT 276.29 406.10 Td (fectively to these cycles. ) Tj ET Q q 0 0 0 rg BT 376.90 406.10 Td (The continuing uncertainty in these markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 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 49.50 370.10 Td (During industry downturns, our net sales from these markets may decline suddenly and significantly) Tj ET Q q 0 0 0 rg BT 450.43 370.10 Td (. Our ability to rapidly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 358.10 Td (fectively reduce our cost structure in response to such downturns is limited by the fixed nature of many of our expenses in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (near term and by our need to continue our investment in next-generation product technology and to support and service our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (products. In addition, due to the relatively long manufacturing lead times for some of the systems and subsystems we sell to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (these markets, we may incur expenditures or purchase raw materials or components for products we cannot sell. ) Tj ET Q q 0 0 0 rg BT 499.63 322.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 548.97 322.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (downturns in the semiconductor capital equipment market may materially harm our operating results. Conversely) Tj ET Q q 0 0 0 rg BT 502.62 310.10 Td (, when upturns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (in these markets occur) Tj ET Q q 0 0 0 rg BT 138.79 298.10 Td (, we must be able to rapidly and ef) Tj ET Q q 0 0 0 rg BT 276.62 298.10 Td (fectively increase our manufacturing capacity to meet increases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (customer demand that may be extremely rapid, and if we fail to do so we may lose business to our competitors and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (relationships with our customers may be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 250.10 Td (e are exposed to risks associated with worldwide economic conditions and related uncertainties which could negatively ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (impact demand for our products and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.43 214.10 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 49.50 202.10 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 49.50 190.10 Td (products. In particular) Tj ET Q q 0 0 0 rg BT 137.68 190.10 Td (, it is dif) Tj ET Q q 0 0 0 rg BT 170.83 190.10 Td (ficult to develop and implement strategy) Tj ET Q q 0 0 0 rg BT 332.08 190.10 Td (, sustainable business models and ef) Tj ET Q q 0 0 0 rg BT 476.32 190.10 Td (ficient operations, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (well as ef) Tj ET Q q 0 0 0 rg BT 87.63 178.10 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 49.50 166.10 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 425.45 166.10 Td (. Our ability to maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (research and development investments in our broad product of) Tj ET Q q 0 0 0 rg BT 299.24 154.10 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 49.50 142.10 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 49.50 130.10 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 49.50 118.10 Td (operating results. Current global economic conditions remain uncertain and challenging. ) Tj ET Q q 0 0 0 rg BT 405.33 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.96 118.10 Td (eakness in our end markets could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (negatively impact our net sales, gross mar) Tj ET Q q 0 0 0 rg BT 217.33 106.10 Td (gin and operating expenses, and consequently have a material adverse ef) Tj ET Q q 0 0 0 rg BT 507.31 106.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 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 58.10 Td (activity) Tj ET Q q 0 0 0 rg BT 78.84 58.10 Td (.Should this uncertain financial policy recur) Tj ET Q q 0 0 0 rg BT 256.44 58.10 Td (, it would likely negatively impact global economic activity) Tj ET Q q 0 0 0 rg BT 494.34 58.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.29 58.10 Td (Any weakness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (in global economies would also likely have negative repercussions on U.S. and global credit and financial markets, and further ) Tj ET Q 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 (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (exacerbate sovereign debt concerns in the European Union. ) Tj ET Q q 0 0 0 rg BT 291.63 742.10 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 49.50 730.10 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 488.61 730.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (The financial turmoil af) Tj ET Q q 0 0 0 rg BT 144.56 694.10 Td (fecting the banking system and financial markets continues to negatively impact financial institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (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 440.32 682.10 Td (There could be a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (follow-on ef) Tj ET Q q 0 0 0 rg BT 99.03 670.10 Td (fects from the tightened credit environment on our business, including the insolvency of key suppliers or their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (inability to obtain credit to finance development and/or manufacture products resulting in product delays; inability of customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (to obtain credit to finance purchases of our products and/or customer insolvencies; and failure of financial institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (negatively impacting our treasury functions. In the event our customers are unable to obtain credit or otherwise pay for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (shipped products it could significantly impact our ability to collect on our outstanding accounts receivable. Other income and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (expense also could vary materially from expectations depending on gains or losses realized on the sale or exchange of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (instruments; impairment char) Tj ET Q q 0 0 0 rg BT 167.07 598.10 Td (ges resulting from revaluations of debt and equity securities and other investments; interest rates; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (cash balances; and changes in fair value of derivative instruments. ) Tj ET Q q 0 0 0 rg BT 316.72 586.10 Td (V) Tj ET Q q 0 0 0 rg BT 322.65 586.10 Td (olatility in the financial markets and any overall economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (uncertainty increase the risk that the actual amounts realized in the future on our financial instruments could dif) Tj ET Q q 0 0 0 rg BT 495.55 574.10 Td (fer significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (from the fair values currently assigned to them. Uncertainty about current global economic conditions could also continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (increase the volatility of our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (In addition, political and social turmoil related to international conflicts, terrorist acts, civil unrest and mass migration may put ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (further pressure on economic conditions in the United States and the rest of the world. Unstable economic, political and social ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (conditions make it dif) Tj ET Q q 0 0 0 rg BT 136.80 502.10 Td (ficult for our customers, our suppliers and us to accurately forecast and plan future business activities. If ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (such conditions persist, our business, financial condition and results of operations could suf) Tj ET Q q 0 0 0 rg BT 415.37 490.10 Td (fer) Tj ET Q q 0 0 0 rg BT 425.92 490.10 Td (. ) Tj ET Q q 0 0 0 rg BT 430.36 490.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 480.27 490.10 Td (, unstable economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (conditions can provide significant pressures and burdens on individuals, which could cause them to engage in inappropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (business conduct. See PartI,Item4. CONTROLS ) Tj ET Q q 0 0 0 rg BT 256.42 466.10 Td (AND PROCEDURES.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (Our cash and cash equivalents and short-term investments are managed through various banks around the world and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (volatility in the capital and credit market conditions could cause financial institutions to fail or materially harm service ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (levels provided by such banks, both of which could have an adverse impact on our ability to timely access funds.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 394.10 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 49.50 382.10 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 49.50 370.10 Td (solvency of some financial institutions. ) Tj ET Q q 0 0 0 rg BT 208.74 370.10 Td (These financial institutions, including banks, have had dif) Tj ET Q q 0 0 0 rg BT 439.90 370.10 Td (ficulty timely performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (regular services and in some cases have failed or otherwise been lar) Tj ET Q q 0 0 0 rg BT 320.04 358.10 Td (gely taken over by governments. ) Tj ET Q q 0 0 0 rg BT 453.15 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.79 358.10 Td (e maintain our cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 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 49.50 334.10 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 49.50 322.10 Td (ability to timely access our cash deposited with such institutions, or) Tj ET Q q 0 0 0 rg BT 319.33 322.10 Td (, in extreme circumstances the failure of such institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 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 49.50 298.10 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 49.50 286.10 Td (to access our cash or if we access existing or additional credit or are unable to access additional credit, it could have a negative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 49.50 262.10 Td (accept our cash deposits will impact our ability to diversify our investment risk among institutions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 238.10 Td (e are exposed to credit risk and fluctuations in the market values of our investment portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (Although we have not recognized any material losses on our cash, cash equivalents and short-term investments, future declines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (in their market values could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 267.83 202.10 Td (fect on our financial condition and operating results. Given the global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (nature of our business, we have investments both domestically and internationally) Tj ET Q q 0 0 0 rg BT 376.83 190.10 Td (. ) Tj ET Q q 0 0 0 rg BT 381.65 190.10 Td (There has recently been growing pressure on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (the creditworthiness of sovereign nations, particularly in Europe where a significant portion of our cash, cash equivalents and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (short-term investments are invested, which results in corresponding pressure on the valuation of the securities issued by such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (nations. ) Tj ET Q q 0 0 0 rg BT 82.83 154.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 132.74 154.10 Td (, our overall investment portfolio is often concentrated in government-issued securities such as U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 142.10 Td (reasury securities and government agencies, corporate notes, commercial paper and money market funds. Credit ratings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (pricing of these investments can be negatively impacted by liquidity) Tj ET Q q 0 0 0 rg BT 321.83 130.10 Td (, credit deterioration or losses, financial results, or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (factors. ) Tj ET Q q 0 0 0 rg BT 81.16 118.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 131.06 118.10 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 49.50 106.10 Td (investments in certain government securities. ) Tj ET Q q 0 0 0 rg BT 232.23 106.10 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 94.10 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 94.10 Td (fect on our financial condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (and operating results. See Item3. Quantitative and Qualitative Disclosures about Market Risk.) 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 (45) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 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 460.72 742.25 Td (fset potential declines in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (our operating results may suf) Tj ET Q q 0 0 0 rg BT 170.45 718.25 Td (fer) Tj ET Q q 0 0 0 rg BT 181.56 718.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (Our ability to increase our sales volume and our future success depends on the continued growth of the markets for lasers, laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (systems and related accessories, as well as our ability to identify) Tj ET Q q 0 0 0 rg BT 306.28 682.25 Td (, in advance, emer) Tj ET Q q 0 0 0 rg BT 379.11 682.25 Td (ging markets for laser) Tj ET Q q 0 0 0 rg BT 466.38 682.25 Td (-based systems. ) Tj ET Q q 0 0 0 rg BT 531.47 682.25 Td (W) Tj ET Q q 0 0 0 rg BT 540.11 682.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (cannot assure you that we will be able to successfully identify) Tj ET Q q 0 0 0 rg BT 296.56 670.25 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 49.50 658.25 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 658.25 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 49.50 646.25 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 49.50 634.25 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 49.50 622.25 Td (continue, sales of our products may decline and our business will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 598.25 Td (e have in the past experienced decreases in the ) Tj ET Q q 0 0 0 rg BT 246.11 598.25 Td (ASPs of some of our products. ) Tj ET Q q 0 0 0 rg BT 370.83 598.25 Td (As competing products become more widely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (available, the ) Tj ET Q q 0 0 0 rg BT 104.75 586.25 Td (ASPs of our products may decrease. If we are unable to of) Tj ET Q q 0 0 0 rg BT 337.83 586.25 Td (fset any decrease in our ) Tj ET Q q 0 0 0 rg BT 434.18 586.25 Td (ASPs by increasing our sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (volumes, our net sales will decline. In addition, to maintain our gross mar) Tj ET Q q 0 0 0 rg BT 343.98 574.25 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 49.50 562.25 Td (manufacturing our products while maintaining their high quality) Tj ET Q q 0 0 0 rg BT 306.29 562.25 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 49.50 550.25 Td (technological products, may fail in greater frequency than anticipated. ) Tj ET Q q 0 0 0 rg BT 332.26 550.25 Td (This can lead to further char) Tj ET Q q 0 0 0 rg BT 445.08 550.25 Td (ges, which can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (higher costs, lower gross mar) Tj ET Q q 0 0 0 rg BT 166.79 538.25 Td (gins and lower operating results. Furthermore, as ) Tj ET Q q 0 0 0 rg BT 364.81 538.25 Td (ASPs of our current products decline, we must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (develop and introduce new products and product enhancements with higher mar) Tj ET Q q 0 0 0 rg BT 369.77 526.25 Td (gins. If we cannot maintain our gross mar) Tj ET Q q 0 0 0 rg BT 536.22 526.25 Td (gins, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (our operating results could be seriously harmed, particularly if the ) Tj ET Q q 0 0 0 rg BT 315.81 514.25 Td (ASPs of our products decrease significantly) Tj ET Q q 0 0 0 rg BT 490.40 514.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (Our future success depends on our ability to develop and successfully introduce new and enhanced products that meet the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (needs of our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (Our current products address a broad range of commercial and scientific research applications in the photonics markets. ) Tj ET Q q 0 0 0 rg BT 530.81 454.25 Td (W) Tj ET Q q 0 0 0 rg BT 539.45 454.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (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 49.50 430.25 Td (products. Demand for our products could be significantly diminished by disrupting technologies or products that replace them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (or render them obsolete. Furthermore, the new and enhanced products in certain markets generally continue to be smaller in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (size and have lower ) Tj ET Q q 0 0 0 rg BT 130.58 406.25 Td (ASPs, and therefore, we have to sell more units to maintain revenue levels. ) Tj ET Q q 0 0 0 rg BT 432.72 406.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.06 406.25 Td (, we must continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (to invest in research and development in order to develop competitive products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Our future success depends on our ability to anticipate our customers' needs and develop products that address those needs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Introduction of new products and product enhancements will require that we ef) Tj ET Q q 0 0 0 rg BT 365.60 358.25 Td (fectively transfer production processes from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.25 Td (research and development to manufacturing and coordinate our ef) Tj ET Q q 0 0 0 rg BT 312.54 346.25 Td (forts with those of our suppliers to achieve volume production ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (rapidly) Tj ET Q q 0 0 0 rg BT 77.18 334.25 Td (. If we fail to transfer production processes ef) Tj ET Q q 0 0 0 rg BT 258.87 334.25 Td (fectively) Tj ET Q q 0 0 0 rg BT 293.20 334.25 Td (, develop product enhancements or introduce new products in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 322.25 Td (ficient quantities to meet the needs of our customers as scheduled, our net sales may be reduced and our business may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.25 Td (harmed.) Tj ET Q BT /F4 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 face risks associated with our foreign operations and sales that could harm our financial condition and results of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (For the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 250.25 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.02 250.25 Td (, 73% of our net sales were derived from customers outside of the United States. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (For fiscal 2015, fiscal 2014 and fiscal 2013, 73%, 74%, and 77%, respectively) Tj ET Q q 0 0 0 rg BT 362.39 238.25 Td (, of our net sales were derived from customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (outside of the United States. ) Tj ET Q q 0 0 0 rg BT 167.36 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 175.99 226.25 Td (e anticipate that foreign sales, particularly in ) Tj ET Q q 0 0 0 rg BT 355.93 226.25 Td (Asia, will continue to account for a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (portion of our net sales in the foreseeable future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 190.25 Td ( global economic slowdown or a natural disaster could have a negative ef) Tj ET Q q 0 0 0 rg BT 349.22 190.25 Td (fect on various foreign markets in which we operate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (such as the earthquake, tsunami and resulting nuclear disaster in Japan and the flooding in ) Tj ET Q q 0 0 0 rg BT 412.00 178.25 Td (Thailand in recent years. Such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (slowdown may cause us to reduce our presence in certain countries, which may negatively af) Tj ET Q q 0 0 0 rg BT 421.69 166.25 Td (fect the overall level of business in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (such countries. Our foreign sales are primarily through our direct sales force. ) Tj ET Q q 0 0 0 rg BT 359.40 154.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 409.30 154.25 Td (, some foreign sales are made through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (foreign distributors and representatives. Our foreign operations and sales are subject to a number of risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 118.25 Td (longer accounts receivable collection periods;) 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 (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 70.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 70.25 Td (unexpected changes in regulatory requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 46.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 46.25 Td (certification requirements;) 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 (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 730.10 Td (environmental regulations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (reduced protection for intellectual property rights in some countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (potentially adverse tax consequences;) 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 (political and economic instability;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td (import/export regulations, tarif) Tj ET Q q 0 0 0 rg BT 208.90 634.10 Td (fs and trade barriers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (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 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td (cultural and management dif) Tj ET Q q 0 0 0 rg BT 200.00 586.10 Td (ferences;) 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 (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 67.50 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.10 Td (preference for locally produced products; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 514.10 Td (shipping and other logistics complications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Our business could also be impacted by international conflicts, terrorist and military activity) Tj ET Q q 0 0 0 rg BT 417.92 490.10 Td (, civil unrest and pandemic illness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (which could cause a slowdown in customer orders, cause customer order cancellations or negatively impact availability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (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 49.50 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 442.10 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 508.33 442.10 Td (fect the sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (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 458.10 430.10 Td (While we use forward ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (exchange contracts and other risk management techniques to hedge our foreign currency exposure, we remain exposed to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (economic risks of foreign currency fluctuations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 382.10 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 387.71 382.10 Td (fect our competitive advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (Maintenance of intellectual property rights and the protection thereof is important to our business. ) Tj ET Q q 0 0 0 rg BT 443.93 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.57 358.10 Td (e rely on a combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (patent, copyright, trademark and trade secret laws and restrictions on disclosure to protect our intellectual property rights. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (patent applications may not be approved, any patents that may be issued may not suf) Tj ET Q q 0 0 0 rg BT 387.84 334.10 Td (ficiently protect our intellectual property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (and any issued patents may be challenged by third parties. Other parties may independently develop similar or competing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (technology or design around any patents that may be issued to us. ) Tj ET Q q 0 0 0 rg BT 314.54 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 323.18 310.10 Td (e cannot be certain that the steps we have taken will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (prevent the misappropriation of our intellectual property) Tj ET Q q 0 0 0 rg BT 274.33 298.10 Td (, particularly in foreign countries where the laws may not protect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (proprietary rights as fully as in the United States. Further) Tj ET Q q 0 0 0 rg BT 277.39 286.10 Td (, we may be required to enforce our intellectual property or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (proprietary rights through litigation, which, regardless of success, could result in substantial costs and diversion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (management's attention. ) Tj ET Q q 0 0 0 rg BT 148.22 262.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 198.12 262.10 Td (, there may be existing patents of which we are unaware that could be pertinent to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (business and it is not possible for us to know whether there are patent applications pending that our products might infringe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (upon since these applications are often not publicly available until a patent is issued or published.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 214.10 Td (e may) Tj ET Q q 0 0 0 rg BT 81.43 214.10 Td (, in the future, be subject to claims or litigation from third parties, for claims of infringement of their proprietary ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 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 /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (holders. These claims could result in costly litigation and the diversion of our technical and management personnel. ) Tj ET Q q 0 0 0 rg BT 529.44 190.10 Td (Adverse ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (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 49.50 154.10 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 49.50 142.10 Td (intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 160.40 142.10 Td (This has been seen in our industry) Tj ET Q q 0 0 0 rg BT 296.39 142.10 Td (, for example in the recently concluded patent-related litigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (between IMRA) Tj ET Q q 0 0 0 rg BT 110.88 130.10 Td ( ) Tj ET Q q 0 0 0 rg BT 112.83 130.10 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 49.50 118.10 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 49.50 106.10 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 94.10 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 82.10 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 70.10 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 58.10 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 58.10 Td (These claims and any resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 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 46.10 Td (These ) 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 (47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (time and attention. ) Tj ET Q q 0 0 0 rg BT 126.15 730.10 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 67.50 706.10 Td ( ) Tj ET Q BT /F1 3.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.25 706.10 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 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 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 530.26 682.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 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 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (redesign the products that use the technology) Tj ET Q q 0 0 0 rg BT 265.36 646.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 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 losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (and our business may be seriously harmed. ) Tj ET Q q 0 0 0 rg BT 223.73 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 232.37 610.10 Td (e do not have insurance to cover potential claims of this type.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 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 49.50 562.10 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 49.50 550.10 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 49.50 538.10 Td (impairment at least annually) Tj ET Q q 0 0 0 rg BT 162.42 538.10 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 49.50 526.10 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 49.50 514.10 Td (market capitalization or future cash flows projections. ) Tj ET Q q 0 0 0 rg BT 267.21 514.10 Td (A) Tj ET Q q 0 0 0 rg BT 273.88 514.10 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 49.50 502.10 Td (conditions, particularly if such change has the ef) Tj ET Q q 0 0 0 rg BT 243.14 502.10 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 49.50 490.10 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 49.50 478.10 Td (in an impairment char) Tj ET Q q 0 0 0 rg BT 137.34 478.10 Td (ge. ) Tj ET Q q 0 0 0 rg BT 151.23 478.10 Td (Any such material char) Tj ET Q q 0 0 0 rg BT 244.07 478.10 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 49.50 466.10 Td (material negative impact on our financial and operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 442.10 Td (e depend on skilled personnel to operate our business ef) Tj ET Q q 0 0 0 rg BT 287.20 442.10 Td (fectively in a rapidly changing market, and if we are unable to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 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 49.50 406.10 Td (Our ability to continue to attract and retain highly skilled personnel will be a critical factor in determining whether we will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (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 498.93 394.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 524.48 394.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (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 402.82 382.10 Td (ficult to retain key employees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (management at a reasonable cost. ) Tj ET Q q 0 0 0 rg BT 185.93 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.56 370.10 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 49.50 358.10 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 543.86 358.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (our growth and our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Our future success depends upon the continued services of our executive of) Tj ET Q q 0 0 0 rg BT 351.17 322.10 Td (ficers and other key engineering, sales, marketing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (manufacturing and support personnel, any of whom may leave and our ability to ef) Tj ET Q q 0 0 0 rg BT 380.89 310.10 Td (fectively transition to their successors. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (inability to retain or to ef) Tj ET Q q 0 0 0 rg BT 149.57 298.10 Td (fectively transition to their successors could harm our business and our results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 427.95 274.10 Td (fsetting net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (Customers often view the purchase of our products as a significant and strategic decision. ) Tj ET Q q 0 0 0 rg BT 409.68 250.10 Td (As a result, customers typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (expend significant ef) Tj ET Q q 0 0 0 rg BT 133.18 238.10 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 49.50 226.10 Td (in a lengthy initial sales cycle. ) Tj ET Q q 0 0 0 rg BT 172.89 226.10 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 49.50 214.10 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 49.50 202.10 Td (needs. ) Tj ET Q q 0 0 0 rg BT 77.09 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.73 202.10 Td (e may also expend significant management ef) Tj ET Q q 0 0 0 rg BT 268.25 202.10 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 49.50 190.10 Td (components or materials prior to receiving an order) Tj ET Q q 0 0 0 rg BT 254.71 190.10 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 49.50 178.10 Td (our products. ) Tj ET Q q 0 0 0 rg BT 104.22 178.10 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 49.50 166.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 166.10 Td (fset such expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (The markets in which we sell our products are intensely competitive and increased competition could cause reduced sales ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (levels, reduced gross margins or the loss of market share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 418.42 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.06 106.10 Td (e compete against a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 94.10 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 82.10 Td (Holdings Inc., Newport Corporation, Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 249.29 82.10 Td (T) Tj ET Q q 0 0 0 rg BT 254.70 82.10 Td (echnologies,Inc., and ) Tj ET Q q 0 0 0 rg BT 344.49 82.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.25 82.10 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 70.10 Td (Some of our competitors are lar) Tj ET Q q 0 0 0 rg BT 176.22 70.10 Td (ge companies that have significant financial, technical, marketing and other resources. ) Tj ET Q q 0 0 0 rg BT 523.68 70.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 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 46.10 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 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 (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (technologies or products that may displace our product lines. ) Tj ET Q q 0 0 0 rg BT 295.00 742.10 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 49.50 730.10 Td (advantage. ) Tj ET Q q 0 0 0 rg BT 94.48 730.10 Td (Any business combinations or mer) Tj ET Q q 0 0 0 rg BT 233.17 730.10 Td (gers among our competitors, forming lar) Tj ET Q q 0 0 0 rg BT 395.17 730.10 Td (ger companies with greater resources, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (could result in increased competition, price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 320.89 718.10 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 49.50 706.10 Td (and adversely af) Tj ET Q q 0 0 0 rg BT 114.84 706.10 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 49.50 682.10 Td (Additional competitors may enter the markets in which we serve, both foreign and domestic, and we are likely to compete with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (new companies in the future. ) Tj ET Q q 0 0 0 rg BT 167.62 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.25 670.10 Td (e may encounter potential customers that, due to existing relationships with our competitors, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (committed to the products of) Tj ET Q q 0 0 0 rg BT 164.85 658.10 Td (fered by these competitors. Further) Tj ET Q q 0 0 0 rg BT 304.69 658.10 Td (, our current or potential customers may determine to develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (and produce products for their own use which are competitive to our products. ) Tj ET Q q 0 0 0 rg BT 364.97 646.10 Td (As a result of the foregoing factors, we expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (that competitive pressures may result in price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 329.78 634.10 Td (gins, loss of sales and loss of market share. In addition, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (markets where there are a limited number of customers, competition is particularly intense.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (If we fail to accurately forecast component and material requirements for our products, we could incur additional costs and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 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 49.50 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 562.10 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 49.50 550.10 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 49.50 538.10 Td (required to obtain the necessary components and materials. ) Tj ET Q q 0 0 0 rg BT 288.41 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.04 538.10 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 49.50 526.10 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 49.50 514.10 Td (specific supplier requirements, the size of the order) Tj ET Q q 0 0 0 rg BT 254.02 514.10 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 49.50 502.10 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 49.50 490.10 Td (overestimate our component and material requirements, we may have excess inventory) Tj ET Q q 0 0 0 rg BT 396.78 490.10 Td (, which would increase our costs. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (underestimate our component and material requirements, we may have inadequate inventory) Tj ET Q q 0 0 0 rg BT 418.99 478.10 Td (, which could interrupt and delay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (delivery of our products to our customers. ) Tj ET Q q 0 0 0 rg BT 219.47 466.10 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 49.50 454.10 Td (operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (Our reliance on contract manufacturing and outsourcing may adversely impact our financial results and operations due to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 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 49.50 394.10 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 49.50 382.10 Td (complex turnkey products, including some performed at international sites located in ) Tj ET Q q 0 0 0 rg BT 391.08 382.10 Td (Asia and Eastern Europe. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 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 523.88 370.10 Td (The cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 358.10 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 49.50 346.10 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 49.50 334.10 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 49.50 322.10 Td (to meet our cost, quality) Tj ET Q q 0 0 0 rg BT 145.77 322.10 Td (, performance, and availability standards. ) Tj ET Q q 0 0 0 rg BT 313.31 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.95 322.10 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 49.50 310.10 Td (product volumes that are high enough to achieve suf) Tj ET Q q 0 0 0 rg BT 258.70 310.10 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 49.50 298.10 Td (increased costs or be required to take ownership of the inventory) Tj ET Q q 0 0 0 rg BT 307.65 298.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.10 298.10 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 49.50 286.10 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 450.65 286.10 Td (, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (impact our financial condition or results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (If we fail to ef) Tj ET Q q 0 0 0 rg BT 107.08 250.10 Td (fectively manage our growth or) Tj ET Q q 0 0 0 rg BT 235.41 250.10 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 291.14 250.10 Td (, our spending during downturns, our business could be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (disrupted, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (Growth in sales, combined with the challenges of managing geographically dispersed operations, can place a significant strain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (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 49.50 190.10 Td (strain. ) Tj ET Q q 0 0 0 rg BT 76.54 190.10 Td (The failure to ef) Tj ET Q q 0 0 0 rg BT 141.04 190.10 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 49.50 178.10 Td (successfully of) Tj ET Q q 0 0 0 rg BT 109.03 178.10 Td (fer our products and implement our business plan in evolving markets requires an ef) Tj ET Q q 0 0 0 rg BT 445.70 178.10 Td (fective planning and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (management process. In economic downturns, we must ef) Tj ET Q q 0 0 0 rg BT 281.20 166.10 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 49.50 154.10 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 536.99 154.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (failure to ef) Tj ET Q q 0 0 0 rg BT 95.96 142.10 Td (fectively manage our spending and operations could disrupt our business and harm our operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.46 118.10 Td (, acquisitions have been an important element of our strategy) Tj ET Q q 0 0 0 rg BT 348.76 118.10 Td (. However) Tj ET Q q 0 0 0 rg BT 389.87 118.10 Td (, we may not find suitable acquisition ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 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 490.25 106.10 Td (Any acquisitions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (we make could disrupt our business and harm our financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 70.10 Td (e have in the past made strategic acquisitions of other corporations and entities, as well as asset purchases, and we continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (evaluate potential strategic acquisitions of complementary companies, products and technologies. In the event of any future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (acquisitions, we could:) 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 (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 730.10 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 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (pay cash that would decrease our working capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (incur debt;) 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 (assume liabilities; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td (incur expenses related to impairment of goodwill and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 610.10 Td (Acquisitions also involve numerous risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 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 67.50 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (an inability to realize expected operating ef) Tj ET Q q 0 0 0 rg BT 258.57 562.10 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 67.50 514.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 514.10 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 514.10 Td (ficulties integrating business cultures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 490.10 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 85.50 478.10 Td (company;) 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 (diversion of management's attention from our core businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 126.13 430.10 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 67.50 406.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 406.10 Td (potential loss of key employees, particularly those of the purchased or) Tj ET Q q 0 0 0 rg BT 365.51 406.10 Td (ganizations;) 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 (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 67.50 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.10 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 85.50 346.10 Td (in the expensing of potentially significant professional fees and other char) Tj ET Q q 0 0 0 rg BT 381.34 346.10 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 85.50 334.10 Td (negotiations are terminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 310.10 Td (e 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 49.50 298.10 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 49.50 286.10 Td (transactions, which may harm our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (Our market is unpredictable and characterized by rapid technological changes and evolving standards demanding a ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (significant investment in research and development, and, if we fail to address changing market conditions, our business and ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (operating results will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 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 49.50 202.10 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 49.50 190.10 Td (rapid change, it is dif) Tj ET Q q 0 0 0 rg BT 134.02 190.10 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 49.50 178.10 Td (will depend on, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.10 Td (maintaining and enhancing our relationships with our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 130.10 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 67.50 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 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 49.50 82.10 Td (For the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.42 82.10 Td (January2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.02 82.10 Td (, our research and development costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.17 82.10 Td ($19.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.06 82.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.89 82.10 Td (10.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.72 82.10 Td ( of net sales\). For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (our fiscal years 2015, 2014 and 2013, our research and development costs were $81.5 million \(10.2% of net sales\), $79.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (million \(10.0% of net sales\) and $82.8 million \(10.2% of net sales\), respectively) Tj ET Q q 0 0 0 rg BT 369.33 58.10 Td (. ) Tj ET Q q 0 0 0 rg BT 374.15 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 382.79 58.10 Td (e cannot assure you that our expenditures for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (research and development will result in the introduction of new products or) Tj ET Q q 0 0 0 rg BT 350.40 46.10 Td (, if such products are introduced, that those products ) 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 (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (will achieve suf) Tj ET Q q 0 0 0 rg BT 112.63 742.10 Td (ficient market acceptance or to generate sales to of) Tj ET Q q 0 0 0 rg BT 315.12 742.10 Td (fset the costs of development. Our failure to address rapid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (technological changes in our markets could adversely af) Tj ET Q q 0 0 0 rg BT 273.96 730.10 Td (fect our business and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 706.10 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 458.87 706.10 Td (fect on our business, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 670.10 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 516.83 670.10 Td (, death or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (commercial losses occur from the use of our products. ) Tj ET Q q 0 0 0 rg BT 268.70 658.10 Td (While we typically maintain business insurance, including directors' and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 646.10 Td (ficers' policies, litigation can be expensive, lengthy) Tj ET Q q 0 0 0 rg BT 261.52 646.10 Td (, and disruptive to normal business operations, including the potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (impact of indemnification obligations for individuals named in any such lawsuits. ) Tj ET Q q 0 0 0 rg BT 378.70 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 387.34 634.10 Td (e may not, however) Tj ET Q q 0 0 0 rg BT 465.80 634.10 Td (, be able to secure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (insurance coverage on terms acceptable to us in the future. Moreover) Tj ET Q q 0 0 0 rg BT 325.37 622.10 Td (, the results of complex legal proceedings are dif) Tj ET Q q 0 0 0 rg BT 519.85 622.10 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (predict. ) Tj ET Q q 0 0 0 rg BT 81.71 610.10 Td (An unfavorable resolution of a particular lawsuit, including a recall or redesign of products if ultimately determined to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (be defective, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 232.00 598.10 Td (fect on our business, operating results, or financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 574.10 Td (e use standard laboratory and manufacturing materials that could be considered hazardous and we could be liable for any ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (damage or liability resulting from accidental environmental contamination or injury) Tj ET Q q 0 0 0 rg BT 396.66 562.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (Although most of our products do not incorporate hazardous or toxic materials and chemicals, some of the gases used in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (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 49.50 514.10 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 509.35 514.10 Td (Also, if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 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 49.50 490.10 Td (it could release highly toxic emissions. ) Tj ET Q q 0 0 0 rg BT 207.35 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.98 490.10 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 49.50 478.10 Td (comply with all federal, state and of) Tj ET Q q 0 0 0 rg BT 193.44 478.10 Td (fshore regulations and standards. However) Tj ET Q q 0 0 0 rg BT 363.82 478.10 Td (, the risk of accidental environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 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 49.50 454.10 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 49.50 442.10 Td (resources of our business which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 278.41 442.10 Td (fect on our financial results or our business as a whole.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 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 49.50 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 394.10 Td (e are subject to a variety of federal, state, local and foreign environmental regulations relating to the use, storage, dischar) Tj ET Q q 0 0 0 rg BT 541.38 394.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (and disposal of hazardous chemicals used during our manufacturing process or requiring design changes or recycling of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (products we manufacture. If we fail to comply with any present and future regulations, we could be subject to future liabilities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (the suspension of production or a prohibition on the sale of products we manufacture. In addition, such regulations could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (restrict our ability to expand our facilities or could require us to acquire costly equipment, or to incur other significant expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (to comply with environmental regulations, including expenses associated with the recall of any non-compliant product and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (management of historical waste.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (From time to time new regulations are enacted, and it is dif) Tj ET Q q 0 0 0 rg BT 285.92 298.10 Td (ficult to anticipate how such regulations will be implemented and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (enforced. ) Tj ET Q q 0 0 0 rg BT 89.29 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.93 286.10 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 477.04 286.10 Td (These regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (include, for example, the Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 253.33 274.10 Td (Authorization and Restriction of Chemical substances \(REACH\), the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (Restriction on the Use of Certain Hazardous Substances in Electrical and Electronic Equipment Directive \(RoHS\) and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 250.10 Td (aste Electrical and Electronic Equipment Directive \(WEEE\) enacted in the European Union which regulate the use of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (certain hazardous substances in, and require the collection, reuse and recycling of waste from, certain products we manufacture. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (This and similar legislation that has been or is in the process of being enacted in Japan, China, South Korea and various states ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (of the United States may require us to re-design our products to ensure compliance with the applicable standards, for example ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (by requiring the use of dif) Tj ET Q q 0 0 0 rg BT 153.46 202.10 Td (ferent types of materials. ) Tj ET Q q 0 0 0 rg BT 255.18 202.10 Td (These redesigns or alternative materials may detrimentally impact the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (performance of our products, add greater testing lead-times for product introductions or have other similar ef) Tj ET Q q 0 0 0 rg BT 484.72 190.10 Td (fects. ) Tj ET Q q 0 0 0 rg BT 508.42 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.06 190.10 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (we comply with all such legislation where our products are sold and we will continue to monitor these laws and the regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (being adopted under them to determine our responsibilities. In addition, we are monitoring legislation relating to the reduction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (of carbon emissions from industrial operations to determine whether we may be required to incur any additional material costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (or expenses associated with our operations. ) Tj ET Q q 0 0 0 rg BT 225.11 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.74 142.10 Td (e are not currently aware of any such material costs or expenses. ) Tj ET Q q 0 0 0 rg BT 493.73 142.10 Td (The SEC has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (promulgated rules requiring disclosure regarding the use of certain conflict minerals mined from the Democratic Republic of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (Congo and adjoining countries and procedures regarding a manufacturer's ef) Tj ET Q q 0 0 0 rg BT 355.18 118.10 Td (forts to prevent the sourcing of such minerals. ) Tj ET Q q 0 0 0 rg BT 541.34 118.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (implementation of such rules has required us to incur additional expense and internal resources and may continue to do so in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (future, particularly in the event that only a limited pool of suppliers are available to certify that products are free from conflict ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (minerals. Our failure to comply with any of the foregoing regulatory requirements or contractual obligations could result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (our being directly or indirectly liable for costs, fines or penalties and third-party claims, and could jeopardize our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (conduct business in the United States and foreign countries.) 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 (51) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Our and our customers' operations would be seriously harmed if our logistics or facilities or those of our suppliers, our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (customers' suppliers or our contract manufacturers were to experience catastrophic loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (Our operations, logistics and facilities and those of our customers, suppliers and contract manufacturers could be subject to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (catastrophic loss from fire, flood, earthquake, volcanic eruption, work stoppages, power outages, acts of war) Tj ET Q q 0 0 0 rg BT 482.85 694.25 Td (, pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (illnesses, ener) Tj ET Q q 0 0 0 rg BT 105.41 682.25 Td (gy shortages, theft of assets, other natural disasters or terrorist activity) Tj ET Q q 0 0 0 rg BT 385.24 682.25 Td (. ) Tj ET Q q 0 0 0 rg BT 389.69 682.25 Td (A) Tj ET Q q 0 0 0 rg BT 396.36 682.25 Td ( substantial portion of our research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (development activities, manufacturing, our corporate headquarters and other critical business operations are located near major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (earthquake faults in Santa Clara, California, an area with a history of seismic events. ) Tj ET Q q 0 0 0 rg BT 389.67 658.25 Td (Any such loss or detrimental impact to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.25 Td (of our operations, logistics or facilities could disrupt our operations, delay production, shipments and net sales and result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 634.25 Td (ge expenses to repair or replace the facility) Tj ET Q q 0 0 0 rg BT 231.08 634.25 Td (. ) Tj ET Q q 0 0 0 rg BT 235.90 634.25 Td (While we have obtained insurance to cover most potential losses, after reviewing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.25 Td (the costs and limitations associated with earthquake insurance, we have decided not to procure such insurance. ) Tj ET Q q 0 0 0 rg BT 494.17 622.25 Td (W) Tj ET Q q 0 0 0 rg BT 502.81 622.25 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (this decision is consistent with decisions reached by numerous other companies located nearby) Tj ET Q q 0 0 0 rg BT 428.20 610.25 Td (. ) Tj ET Q q 0 0 0 rg BT 433.02 610.25 Td (W) Tj ET Q q 0 0 0 rg BT 441.65 610.25 Td (e cannot assure you that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (existing insurance coverage will be adequate against all other possible losses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (Dif) Tj ET Q q 0 0 0 rg BT 62.65 574.25 Td (ficulties with our enterprise resource planning \(ERP\) system and other parts of our global information technology ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (system could harm our business and results of operation. If our network security measures are breached and unauthorized ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (access is obtained to a customer's data or our data or our information technology systems, we may incur significant legal ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (and financial exposure and liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (Like many modern multinational corporations, we maintain a global information technology system, including software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (products licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 198.63 502.25 Td (Any system, network or Internet failures, misuse by system users, the hacking into or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (disruption caused by the unauthorized access by third parties or loss of license rights could disrupt our ability to timely and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (accurately manufacture and ship products or to report our financial information in compliance with the timelines mandated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (the SEC. ) Tj ET Q q 0 0 0 rg BT 89.50 466.25 Td (Any such failure, misuse, hacking, disruptions or loss would likely cause a diversion of management's attention from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (the underlying business and could harm our operations. In addition, a significant failure of our global information technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (system could adversely af) Tj ET Q q 0 0 0 rg BT 152.90 442.25 Td (fect our ability to complete an evaluation of our internal controls and attestation activities pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 430.25 Td (Act of 2002.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 404.85 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 49.50 384.85 Td (As part of our day-to-day business, we store our data and certain data about our customers in our global information technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.85 Td (system. ) Tj ET Q q 0 0 0 rg BT 82.10 372.85 Td (While our system is designed with access security) Tj ET Q q 0 0 0 rg BT 281.68 372.85 Td (, if a third party gains unauthorized access to our data, including any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.85 Td (regarding our customers, such a security breach could expose us to a risk of loss of this information, loss of business, litigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.85 Td (and possible liability) Tj ET Q q 0 0 0 rg BT 132.18 348.85 Td (. Our security measures may be breached as a result of third-party action, including intentional misconduct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.85 Td (by computer hackers, employee error) Tj ET Q q 0 0 0 rg BT 198.20 336.85 Td (, malfeasance or otherwise. ) Tj ET Q q 0 0 0 rg BT 309.27 336.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 359.17 336.85 Td (, third parties may attempt to fraudulently induce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.85 Td (employees or customers into disclosing sensitive information such as user names, passwords or other information in order to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.85 Td (gain access to our customers' data or our data, including our intellectual property and other confidential business information, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.85 Td (our information technology systems. Because the techniques used to obtain unauthorized access, or to sabotage systems, change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.85 Td (frequently and generally are not recognized until launched against a tar) Tj ET Q q 0 0 0 rg BT 333.64 288.85 Td (get, we may be unable to anticipate these techniques or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.85 Td (to implement adequate preventative measures. ) Tj ET Q q 0 0 0 rg BT 236.65 276.85 Td (Any unauthorized access could result in a loss of confidence by our customers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.85 Td (damage our reputation, disrupt our business, lead to legal liability and negatively impact our future sales. ) Tj ET Q q 0 0 0 rg BT 471.34 264.85 Td (Additionally) Tj ET Q q 0 0 0 rg BT 521.24 264.85 Td (, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.85 Td (actions could result in significant costs associated with loss of our intellectual property) Tj ET Q q 0 0 0 rg BT 395.99 252.85 Td (, impairment of our ability to conduct our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.85 Td (operations, rebuilding our network and systems, prosecuting and defending litigation, responding to regulatory inquiries or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.85 Td (actions, paying damages or taking other remedial steps.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 204.85 Td (Changes in tax rates, tax liabilities or tax accounting rulescould af) Tj ET Q q 0 0 0 rg BT 326.58 204.85 Td (fect future results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.85 Td (As a global company) Tj ET Q q 0 0 0 rg BT 133.55 184.85 Td (, we are subject to taxation in the United States and various other countries and jurisdictions. Significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.85 Td (judgment is required to determine our worldwide tax liabilities. ) Tj ET Q q 0 0 0 rg BT 305.00 172.85 Td (A) Tj ET Q q 0 0 0 rg BT 311.67 172.85 Td ( number of factors may af) Tj ET Q q 0 0 0 rg BT 415.06 172.85 Td (fect our future ef) Tj ET Q q 0 0 0 rg BT 482.34 172.85 Td (fective tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.85 Td (including, but not limited to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 140.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 140.85 Td (changes in the composition of earnings in countries or states with dif) Tj ET Q q 0 0 0 rg BT 360.54 140.85 Td (fering tax rates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 116.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 116.85 Td (changes in the valuations of our deferred tax assets and liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 92.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 92.85 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 451.96 92.85 Td (, the outcome of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 80.85 Td (pending German tax audits of our tax returns for fiscal years 2006 - 2013;) 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 (52) 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 (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 85.50 730.10 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 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (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 67.50 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (increases in expenses not deductible for tax purposes, including impairments of goodwill in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 Td (acquisitions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (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 85.50 634.10 Td (jurisdictions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (changes in available tax credits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td (changes in share-based compensation;) 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 (changes in the tax laws or the interpretation of such tax laws, including the Base Erosion Profit Shifting \(BEPS\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td (project being conducted by the Or) Tj ET Q q 0 0 0 rg BT 221.66 550.10 Td (ganization for Economic Co-operation and Development \(OECD\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 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 (changes in generally accepted accounting principles; and ) 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 (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 49.50 482.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 482.10 Td (e are also engaged in discussions with various tax authorities regarding the appropriate level of profitability for Coherent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (entities and this may result in changes to our worldwide tax liabilities. In addition, we are subject to regular examination of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (income tax returns by the Internal Revenue Service \(IRS\) and other tax authorities. From time to time the United States, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (foreign and state governments make substantive changes to tax rulesand the application of rulesto companies, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (various announcements from the United States government potentially impacting our ability to defer taxes on international ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (earnings. ) Tj ET Q q 0 0 0 rg BT 88.20 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 96.83 422.10 Td (e regularly assess the likelihood of favorable or unfavorable outcomes resulting from these examinations to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (determine the adequacy of our provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 284.98 410.10 Td (Although we believe our tax estimates are reasonable, there can be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (no assurance that any final determination will not be materially dif) Tj ET Q q 0 0 0 rg BT 315.90 398.10 Td (ferent than the treatment reflected in our historical income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (tax provisions and accruals, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 323.11 386.10 Td (fect our operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (Changing laws, regulations and standards relating to corporate governance and public disclosure may create uncertainty ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (regarding compliance matters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 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 456.14 330.10 Td (ganizations such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 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 49.50 306.10 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 49.50 294.10 Td (members and impose civil and criminal penalties for companies and their chief executive of) Tj ET Q q 0 0 0 rg BT 416.69 294.10 Td (ficers, chief financial of) Tj ET Q q 0 0 0 rg BT 512.01 294.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (directors for securities law violations. ) Tj ET Q q 0 0 0 rg BT 202.61 282.10 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 49.50 270.10 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 49.50 258.10 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 49.50 246.10 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 49.50 234.10 Td (standards are subject to varying interpretations in many cases. ) Tj ET Q q 0 0 0 rg BT 299.43 234.10 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 49.50 222.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 222.10 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 49.50 210.10 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 49.50 198.10 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 49.50 186.10 Td (our ef) Tj ET Q q 0 0 0 rg BT 72.92 186.10 Td (forts to comply with new or changed laws, regulations and standards dif) Tj ET Q q 0 0 0 rg BT 361.00 186.10 Td (fer from the activities intended by regulatory or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (governing bodies due to ambiguities related to practice, our reputation may also be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (Governmental regulations, including duties, af) Tj ET Q q 0 0 0 rg BT 242.12 150.10 Td (fecting the import or export of products could negatively af) Tj ET Q q 0 0 0 rg BT 484.42 150.10 Td (fect our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 298.70 126.10 Td (fs and duties on the import and export of products, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.10 Td (some of those which we sell. In particular) Tj ET Q q 0 0 0 rg BT 216.27 114.10 Td (, given our worldwide operations, we pay duties on certain products when they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (imported into the United States for repair work as well as on certain of our products which are manufactured by our foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.10 Td (subsidiaries. ) Tj ET Q q 0 0 0 rg BT 101.54 90.10 Td (These products can be subject to a duty on the product value. ) Tj ET Q q 0 0 0 rg BT 347.85 90.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 397.76 90.10 Td (, the United States and various foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.10 Td (governments have imposed tarif) Tj ET Q q 0 0 0 rg BT 177.89 78.10 Td (fs, controls, export license requirements and restrictions on the import or export of some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 66.10 Td (technologies, especially encryption technology) Tj ET Q q 0 0 0 rg BT 236.57 66.10 Td (. From time to time, government agencies have proposed additional regulation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 54.10 Td (encryption technology) Tj ET Q q 0 0 0 rg BT 138.55 54.10 Td (, such as requiring the escrow and governmental recovery of private encryption keys. Governmental ) 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 (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (regulation of encryption technology and regulation of imports or exports, or our failure to obtain required import or export ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (approval for our products, could harm our international and domestic sales and adversely af) Tj ET Q q 0 0 0 rg BT 415.87 730.10 Td (fect our net sales. From time to time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (our duty calculations and payments are audited by government agencies. For example, we are currently under audit in South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (Korea for customs duties and value-added-tax for the period March 2009 to March 2014. In the event of an adverse audit result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (we could be liable for additional payments, duties, taxes and penalties, any of which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 518.04 694.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (business or financial position, results of operations, or cash flows. ) Tj ET Q q 0 0 0 rg BT 315.29 682.10 Td (As of January 2, 2016, we have accrued an estimated liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (of $1.6 million related to this matter) Tj ET Q q 0 0 0 rg BT 193.64 670.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (In addition, compliance with the directives of the Directorate of Defense ) Tj ET Q q 0 0 0 rg BT 341.99 646.10 Td (T) Tj ET Q q 0 0 0 rg BT 347.74 646.10 Td (rade Controls \(DDTC\) may result in substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (expenses and diversion of management. ) Tj ET Q q 0 0 0 rg BT 211.12 634.10 Td (Any failure to adequately address the directives of DDTC could result in civil fines or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (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 407.55 622.10 Td (fect on our business or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (position, results of operations, or cash flows.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (Failure to maintain ef) Tj ET Q q 0 0 0 rg BT 140.72 586.10 Td (fective internal controls may cause a loss of investor confidence in the reliability of our financial ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 422.11 574.10 Td (fect our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (The SEC, as directed by Section404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 290.28 550.10 Td (Act of 2002, adopted rulesrequiring public companies to include a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (report of management on internal control over financial reporting in their annual reports on Form10-K that contain an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (assessment by management of the ef) Tj ET Q q 0 0 0 rg BT 195.66 526.10 Td (fectiveness of our internal control over financial reporting. In addition, our independent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (registered public accounting firm must attest to and report on the ef) Tj ET Q q 0 0 0 rg BT 318.96 514.10 Td (fectiveness of our internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 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 49.50 490.10 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 49.50 478.10 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 49.50 466.10 Td (file our periodic reports with the SEC, which ultimately could negatively impact our stock price.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (Provisions of our charter documents and Delaware law) Tj ET Q q 0 0 0 rg BT 276.65 442.10 Td (, and our Change-of-Control Severance Plan may have anti-takeover ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 430.10 Td (fects that could prevent or delay a change in control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (Provisions of our certificate of incorporation and bylaws may discourage, delay or prevent a mer) Tj ET Q q 0 0 0 rg BT 436.14 406.10 Td (ger or acquisition or make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (removal of incumbent directors or of) Tj ET Q q 0 0 0 rg BT 196.77 394.10 Td (ficers more dif) Tj ET Q q 0 0 0 rg BT 255.45 394.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 281.38 394.10 Td (These provisions may discourage takeover attempts and bids for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (common stock at a premium over the market price. ) Tj ET Q q 0 0 0 rg BT 255.92 382.10 Td (These provisions include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.10 Td (the ability of our Board of Directors to alter our bylaws without stockholder approval;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.10 Td (limiting the ability of stockholders to call special meetings; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.10 Td (establishing advance notice requirements for nominations for election to our Board of Directors or for proposing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 298.10 Td (matters that can be acted on by stockholders at stockholder meetings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 274.10 Td (e are subject to Section203 of the Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 339.32 274.10 Td (, which prohibits a publicly-held Delaware corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (from engaging in a mer) Tj ET Q q 0 0 0 rg BT 143.18 262.10 Td (ger) Tj ET Q q 0 0 0 rg BT 155.54 262.10 Td (, asset or stock sale or other transaction with an interested stockholder for a period of three years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (following the date such person became an interested stockholder) Tj ET Q q 0 0 0 rg BT 307.35 250.10 Td (, unless prior approval of our board of directors is obtained or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (as otherwise provided. ) Tj ET Q q 0 0 0 rg BT 142.07 238.10 Td (These provisions of Delaware law also may discourage, delay or prevent someone from acquiring or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (mer) Tj ET Q q 0 0 0 rg BT 64.87 226.10 Td (ging with us without obtaining the prior approval of our board of directors, which may cause the market price of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (common stock to decline. In addition, we have adopted a change of control severance plan, which provides for the payment of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (cash severance benefit to each eligible employee based on the employee's position. If a change of control occurs, our successor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (or acquirer will be required to assume and agree to perform all of our obligations under the change of control severance plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (which may discourage potential acquirers or result in a lower stock price.) 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 (54) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (ITEM 6. 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 555.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 554.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 555.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 540.17 Td (31.2) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 527.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 540.17 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 123.00 530.17 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 53.00 515.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 514.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 515.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 500.17 Td (32.1) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 487.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 500.17 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 123.00 490.17 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 475.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 474.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 475.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 460.17 Td (32.2) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 447.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 460.17 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 123.00 450.17 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 420.17 Td (101.INS*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 419.27 Td (XBRL Instance Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 390.17 Td (101.SCH*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 389.27 Td (XBRL Taxonomy Extension Schema) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 360.17 Td (101.CAL*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 359.27 Td (XBRL Taxonomy Extension Calculation Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 330.17 Td (101.DEF*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 329.27 Td (XBRL Taxonomy Extension Definition Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 300.17 Td (101.LAB*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 299.27 Td (XBRL Taxonomy Extension Label Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 270.17 Td (101.PRE*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 269.27 Td (XBRL Taxonomy Extension Presentation Linkbase) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 242.60 51.00 -44.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 242.60 19.00 -44.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.50 242.60 442.00 -44.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 183.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 183.60 19.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 119.50 183.60 442.00 -26.00 re f /GS0 gs BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 233.17 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 233.17 Td (In accordance with Rule406T) Tj ET Q q 0 0 0 rg BT 242.88 233.17 Td ( of RegulationS-T) Tj ET Q q 0 0 0 rg BT 316.85 233.17 Td (, the information in these exhibits is furnished and deemed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 223.17 Td (not filed or part of a registration statement or prospectus for purposes of sections 1) Tj ET Q q 0 0 0 rg BT 452.10 223.17 Td (1 or 12 of the Securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 213.17 Td (Act of 1933, is deemed not filed for purposes of section 18 of the Exchange ) Tj ET Q q 0 0 0 rg BT 426.92 213.17 Td (Act of 1934, and otherwise is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 203.17 Td (not subject to liability under these sections.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 189.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 189.17 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 q 0 0 0 rg BT 52.00 174.17 Td (**) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 174.17 Td (Portions of this exhibit are redacted and confidential treatment has been requested with the Securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 164.17 Td (Exchange Commission.) Tj ET Q BT /F1 10.00 Tf ET 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 (55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 264.80 742.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 321.29 742.25 Td (,INC.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.85 718.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 718.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 706.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 276.05 694.25 Td (Act of 1934, the registrant has duly caused this Report to be signed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (its behalf by the undersigned, thereunto duly authorized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 670.25 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 600.75 m 562.5 600.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 525.75 m 562.5 525.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 81.00 656.57 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 357.00 650.48 Td (Coherent,Inc.) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 642.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 636.32 Td (\(Registrant\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 621.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 621.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 605.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 605.42 Td (February 10, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 605.42 Td (/s/:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 605.42 Td (JOHN R. AMBROSEO) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 597.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 357.00 597.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 591.32 Td (John R. Ambroseo) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 582.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 357.00 582.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 576.32 Td (President and Chief Executive Officer) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 567.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 357.00 567.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 561.32 Td (\(Principal Executive Officer\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 546.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 546.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 546.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 530.42 Td (Date:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 530.42 Td (February 10, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 530.42 Td (/s/:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 530.42 Td (HELENE SIMONET) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 522.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 357.00 522.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 516.32 Td (Helene Simonet) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 507.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 357.00 507.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 501.32 Td (Executive Vice President and Chief Financial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 491.32 Td (Officer) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 81.00 482.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 357.00 482.56 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 476.32 Td (\(Principal Financial and Accounting Officer\)) Tj ET Q BT /F1 10.00 Tf ET 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 (56) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.30 742.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 309.91 742.25 Td (INDEX ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 730.25 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 719.75 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 719.75 19.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 719.75 442.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 691.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 691.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 691.75 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 661.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 661.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 661.75 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 631.75 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 631.75 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 631.75 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 601.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 601.75 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 601.75 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 561.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 561.75 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 561.75 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 521.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 521.75 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 521.75 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 481.75 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 481.75 19.00 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Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 682.32 Td (10.1 **) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 682.32 Td (Fiscal 2016 Variable compensation plan payout scale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 652.32 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 652.32 Td (Fiscal 2015 Variable compensation plan payout scale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 622.32 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 622.32 Td (Offer letter with Kevin Palatnik) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 592.32 Td (31.1) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 579.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 592.32 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 123.00 582.32 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 53.00 567.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 566.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 567.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 552.32 Td (31.2) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 539.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 552.32 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 123.00 542.32 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 53.00 527.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 526.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 527.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 512.32 Td (32.1) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 499.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 512.32 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 123.00 502.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 487.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 486.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 487.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 472.32 Td (32.2) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 459.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 472.32 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 123.00 462.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) 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