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135.00 490.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 490.32 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 53.00 483.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 97.00 476.51 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 117 475.9833984375 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 (25) Tj ET Q 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 (41) Tj ET Q 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 (43) Tj ET Q 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 (44) Tj ET Q 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 (44) Tj ET Q 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 (61) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 549 267.9833984375 m 559 267.9833984375 l s q 0 0 1 rg BT 549.00 269.32 Td (63) 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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0.9333333333333333 1 rg /GS0 gs 433.50 583.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 583.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 583.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 583.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 554.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 554.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 554.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 554.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 554.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 554.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 554.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 554.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 554.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 524.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 524.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 524.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 524.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 524.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 524.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 524.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 524.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 524.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 494.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 494.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 494.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 494.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 494.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 494.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 494.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 494.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 494.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 465.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 465.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 465.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 465.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 465.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 465.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 465.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 465.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 465.75 4.00 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gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 405.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 405.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 375.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 375.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 375.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 375.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 375.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 375.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 375.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 375.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 375.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 347.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 347.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 347.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 347.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 347.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 347.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 347.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 347.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 347.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 318.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 318.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 318.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 288.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 288.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 288.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 288.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 288.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 288.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 259.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 259.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 259.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 259.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 259.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 259.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 259.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 259.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 557.50 259.75 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 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 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 433.5 634.75 m 493.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 634.75 m 497.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 634.75 m 557.5 634.75 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 433.5 634.75 m 493.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 613.75 m 493.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 634.75 m 557.5 634.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 613.75 m 557.5 613.75 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 433.5 613.75 m 493.5 613.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 613.75 m 557.5 613.75 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 433.5 583.75 m 493.5 583.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 583.75 m 557.5 583.75 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 497.5 583.75 m 557.5 583.75 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 433.5 509.75 m 493.5 509.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 509.75 m 557.5 509.75 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 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 494.75 m 365.5 494.75 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 369.5 494.75 m 429.5 494.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 494.75 m 493.5 494.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 494.75 m 557.5 494.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 494.75 m 365.5 494.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 420.75 m 365.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 420.75 m 429.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 420.75 m 493.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 420.75 m 557.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 405.75 m 365.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 420.75 m 429.5 420.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 405.75 m 429.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 405.75 m 493.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 405.75 m 557.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 405.75 m 557.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 375.75 m 365.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 375.75 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 497.5 375.75 m 557.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 375.75 m 365.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 362.75 m 365.5 362.75 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 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 375.75 m 493.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 362.75 m 493.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 360.75 m 493.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 375.75 m 557.5 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 362.75 m 557.5 362.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 360.75 m 557.5 360.75 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 463.40 638.98 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.85 625.98 Td (April 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 385.85 625.98 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.00 617.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.85 625.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.00 617.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 625.98 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.00 617.98 Td (2015) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 603.43 Td (199,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 603.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 603.42 Td (203,721) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 603.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 603.43 Td (390,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 603.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 603.42 Td (404,336) 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 (111,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 588.42 Td (120,417) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 588.43 Td (217,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 588.42 Td (238,713) 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 (88,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 573.42 Td (83,304) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 573.43 Td (172,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 573.42 Td (165,623) 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 (20,955) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 544.42 Td (21,024) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 544.43 Td (40,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 544.42 Td (40,197) 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 (40,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 529.42 Td (39,482) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 529.43 Td (77,714) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 529.42 Td (77,623) 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 (700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 514.42 Td (666) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 514.43 Td (1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 514.42 Td (1,362) 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 (62,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 499.42 Td (61,172) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 499.43 Td (119,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 499.42 Td (119,182) 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 (26,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 484.42 Td (22,132) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 484.43 Td (53,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 484.42 Td (46,441) 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 and dividend income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 455.43 Td (263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 455.42 Td (161) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 455.43 Td (503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 455.42 Td (257) 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 (\(30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 440.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 440.47 Td (\(14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 440.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 476.30 440.48 Td (\(45) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 440.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 440.47 Td (\(25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 440.42 Td (\)) 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 335.80 425.48 Td (\(2,013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 425.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 425.42 Td (1,843) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 425.48 Td (\(2,460) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 425.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 425.42 Td (1,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 410.42 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.80 410.48 Td (\(1,780) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 410.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 410.42 Td (1,990) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 410.48 Td (\(2,002) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 410.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 410.42 Td (1,305) 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 (24,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 395.42 Td (24,122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 395.43 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 395.42 Td (47,746) 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 (6,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 380.42 Td (5,709) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 380.43 Td (13,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 380.42 Td (11,903) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 366.43 Td (17,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 366.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 366.32 Td (18,413) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 366.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 366.43 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 366.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 366.32 Td (35,843) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 323.43 Td (0.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 323.42 Td (0.75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 323.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 323.43 Td (1.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 323.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 323.42 Td (1.44) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 308.43 Td (0.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 308.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 308.42 Td (0.74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 308.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 308.43 Td (1.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 308.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 308.42 Td (1.43) 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 (24,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 264.42 Td (24,709) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 264.43 Td (24,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 264.42 Td (24,823) 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 (24,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 249.42 Td (24,891) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 249.43 Td (24,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 249.42 Td (25,042) 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.) Tj ET Q endstream endobj 11 0 obj <>] /Rotate 0 /Contents 12 0 R>> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.45 730.10 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 272.94 730.10 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 300.72 730.10 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 104.75 718.10 Td (CONDENSED CONSOLIDA) Tj ET Q q 0 0 0 rg BT 229.86 718.10 Td (TED ST) Tj ET Q q 0 0 0 rg BT 264.41 718.10 Td (A) Tj ET Q q 0 0 0 rg BT 270.89 718.10 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 335.81 718.10 Td ( COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.20 706.10 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 256.53 706.10 Td (Unaudited; in thousands\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 649.60 250.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 649.60 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 649.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 649.60 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 649.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 649.60 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 649.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 649.60 60.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 552.50 649.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 622.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 622.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 622.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 622.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 622.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 622.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 622.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 622.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 552.50 622.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 592.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 592.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 592.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 592.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 592.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 592.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 592.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 592.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 552.50 592.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 552.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 300.50 552.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.50 552.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.50 552.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 424.50 552.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 428.50 552.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 552.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 552.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 552.50 552.60 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 300.5 670.6 m 360.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360.5 670.6 m 364.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 670.6 m 424.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 670.6 m 488.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 670.6 m 492.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 670.6 m 552.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300.5 649.6 m 360.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364.5 649.6 m 424.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 649.6 m 488.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 649.6 m 552.5 649.6 l s 0 0 0 RG /GS0 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 428.5 552.6 m 488.5 552.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 552.6 m 552.5 552.6 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 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 537.6 m 488.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 523.6 m 488.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 521.6 m 488.5 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 537.6 m 552.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 523.6 m 552.5 523.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 521.6 m 552.5 521.6 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 /F2 8.00 Tf ET q 0 0 0 rg BT 458.40 674.83 Td (Six 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 316.85 661.83 Td (April 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 380.85 661.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.00 653.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.85 661.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.00 653.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.85 661.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.00 653.83 Td (2015) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 627.28 Td (17,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 627.27 Td (18,413) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 627.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 627.28 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 627.27 Td (35,843) 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 198.23 616.80 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 59.00 597.27 Td (T) Tj ET Q q 0 0 0 rg BT 64.76 597.27 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 204.17 601.80 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 597.28 Td (13,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.80 597.32 Td (\(33,280) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 597.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 597.28 Td (5,062) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.80 597.32 Td (\(47,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 597.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 582.27 Td (Net gain \(loss\) on derivatives 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 279.51 586.80 Td (\(3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 582.28 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 582.27 Td (175) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.30 582.33 Td (\(28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 484.65 582.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 582.27 Td (550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 567.27 Td (Changes in unrealized gains on available-for) Tj ET Q q 0 0 0 rg BT 237.34 567.27 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 557.27 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 150.36 561.80 Td (\(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 557.28 Td (2,325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 557.27 Td (274) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 557.28 Td (2,463) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 557.27 Td (201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.00 542.27 Td (Other comprehensive income \(loss\), net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 542.28 Td (15,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.80 542.32 Td (\(32,831) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 542.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 542.28 Td (7,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.80 542.32 Td (\(47,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 542.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 527.27 Td (Comprehensive income \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.00 527.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 527.28 Td (33,676) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 527.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.80 527.32 Td (\(14,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 527.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.00 527.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 527.28 Td (45,564) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.00 527.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.80 527.32 Td (\(11,205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 527.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 499.10 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 and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 499.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.75 499.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.36 499.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.25 499.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.86 499.10 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 expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.28 475.10 Td ($465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.28 475.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.72 475.10 Td ($1) Tj ET Q q 0 0 0 rg BT 188.34 475.10 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.34 475.10 Td ( were provided on translation adjustments during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.63 475.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 475.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.00 475.10 Td (April2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 463.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.50 463.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 145.16 463.10 Td (. ) Tj ET Q q 0 0 0 rg BT 149.98 463.10 Td (T) Tj ET Q q 0 0 0 rg BT 155.39 463.10 Td (ax benefits of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.31 463.10 Td ($1,1) Tj ET Q q 0 0 0 rg BT 229.44 463.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.44 463.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.88 463.10 Td ($1,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.38 463.10 Td ( were provided on translation adjustments during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.67 463.10 Td (three and six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 451.10 Td (months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.33 451.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.27 451.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.88 451.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 236.54 451.10 Td (.) 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494.00 647.42 Td ($) 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 (203,882) 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 $2,955 and $3,015, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 617.43 Td (150,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 617.42 Td (142,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 602.42 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 602.43 Td (179,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 602.42 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 587.42 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 587.43 Td (34,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 587.42 Td 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(93,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 512.42 Td (89,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 497.42 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 497.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.65 497.43 Td (1,048,543) 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 0 rg BT 461.15 438.43 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 438.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 438.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 423.42 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 423.43 Td (43,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 423.42 Td (33,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 408.42 Td (Income taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 408.43 Td (11,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 408.42 Td (4,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 393.42 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 393.43 Td (89,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 393.42 Td (84,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 378.42 Td (Total current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 378.43 Td (149,811) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 378.42 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 (49,183) 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, 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 (Authorized500,000 shares) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 301.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 301.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 288.42 Td (Outstanding24,218 shares and 23,970 shares, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 288.43 Td (241) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 288.42 Td (238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 273.42 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 273.43 Td (136,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 273.42 Td (128,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 258.42 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.80 258.48 Td (\(2,016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 258.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 258.47 Td (\(9,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 258.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 243.42 Td (Retained earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 243.43 Td (715,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 243.42 Td (677,086) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 228.42 Td (Total stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 228.43 Td (849,549) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 228.42 Td (796,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 213.42 Td (Total liabilities and stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 213.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.65 213.43 Td (1,048,543) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 213.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 213.42 Td (968,947) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 185.25 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 185.25 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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553.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 553.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 553.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 533.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 533.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 533.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 533.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 513.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 513.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 513.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 513.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 493.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 493.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 493.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 493.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 473.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 473.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 473.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 473.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 453.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 453.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 453.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 453.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 433.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 433.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 433.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 433.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 413.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 413.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 413.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 413.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 393.75 368.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 393.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 393.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 393.75 70.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 370.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 370.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 370.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 370.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 350.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 350.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 350.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 350.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 330.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 330.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 330.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 330.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 310.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 310.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 310.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 310.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 290.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 290.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 290.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 290.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 270.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 270.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 270.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 270.75 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 417.5 340.75 m 487.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 330.75 m 487.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 340.75 m 561.5 340.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 330.75 m 561.5 330.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 320.75 m 487.5 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 320.75 m 561.5 320.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 300.75 m 487.5 300.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 300.75 m 561.5 300.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 300.75 m 487.5 300.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 291.75 m 487.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 289.75 m 487.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 300.75 m 561.5 300.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 291.75 m 561.5 291.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 289.75 m 561.5 289.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 290.75 m 487.5 290.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 290.75 m 561.5 290.75 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 457.40 698.98 Td (Six 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 438.85 685.98 Td (April 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 512.85 685.98 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 677.98 Td (2015) 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 ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 655.88 Td (38,067) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 655.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 655.75 Td (35,843) 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 462.30 635.88 Td (12,883) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 635.75 Td (12,436) 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 (4,169) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 625.75 Td (4,216) 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 (\(5,653) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 615.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 615.75 Td (6,483) 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 (9,132) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 605.75 Td (9,172) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 595.75 Td (Other non-cash \(income\) expense) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.60 595.88 Td (\(12) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 595.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 595.75 Td (384) 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 (\(5,333) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 575.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 575.75 Td (6,441) 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 459.60 565.88 Td (\(21,063) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 565.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 565.75 Td (6,114) 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 (\(4,857) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 555.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 555.75 Td (\(13,921) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 555.75 Td (\)) 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 466.30 545.88 Td (1,984) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 545.75 Td (582) 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 466.30 535.88 Td (7,516) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 535.75 Td (557) 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 (5,979) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 525.75 Td (\(9,871) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 525.75 Td (\)) 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 466.30 515.88 Td (3,821) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 515.75 Td (21,894) 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 463.60 505.88 Td (\(1,079) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 505.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 505.75 Td (84) 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 (45,554) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 495.75 Td (80,414) 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 459.60 465.88 Td (\(16,256) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 465.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 465.75 Td (\(12,210) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 465.75 Td (\)) 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 472.30 455.88 Td (180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 455.75 Td (974) 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 (\(84,629) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 445.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 529.60 445.75 Td (\(177,704) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 445.75 Td (\)) 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 (79,470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 435.75 Td (175,436) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 425.75 Td (Net cash used in investing activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 425.88 Td (\(21,235) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 425.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 425.75 Td (\(13,504) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 425.75 Td (\)) 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 (34,792) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 395.75 Td (19,485) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 385.00 Td (Repayments of short-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 384.98 Td (\(29,792) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 384.98 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 385.00 Td (\(19,485) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 385.00 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 372.75 Td (Debt issuance costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 372.88 Td (\(2,137) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 372.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 372.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 362.75 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 466.30 362.88 Td (3,686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 362.75 Td (3,701) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 352.75 Td (Repurchase of common stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.30 352.88 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 352.75 Td (\(25,009) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 352.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 342.75 Td (Net settlement of restricted common stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 342.88 Td (\(5,344) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 342.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 342.75 Td (\(5,235) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 342.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 332.75 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 332.88 Td (1,205) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 332.75 Td (\(26,543) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 332.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 322.88 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 466.30 322.88 Td (1,045) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 322.75 Td (\(16,503) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 322.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 312.88 Td (Net increase in cash and cash equivalents) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 312.88 Td (26,569) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 312.75 Td (23,864) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 302.88 Td (Cash and cash equivalents, beginning of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 302.88 Td (130,607) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 302.75 Td (91,217) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 292.88 Td (Cash and cash equivalents, end of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 292.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 292.88 Td (157,176) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 292.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 292.75 Td (115,081) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 272.88 Td (Noncash investing and financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 262.75 Td (Unpaid property and equipment purchases) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 262.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 262.88 Td (3,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 262.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 262.75 Td (828) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 237.25 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 237.25 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 (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.36 562.25 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 and 14 weeks of operations in fiscal 2016 and 2015, respectively) Tj ET Q q 0 0 0 rg BT 405.59 550.25 Td (. Fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.68 550.25 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.68 550.25 Td ( includes 52 weeks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.25 Td (and fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.80 538.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.80 538.25 Td ( includes 53 weeks. Certain reclassifications have been made to the prior period amounts to conform to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.25 Td (the current period's presentation related to the reclassification of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.20 526.25 Td ($28.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.09 526.25 Td ( of current deferred income tax assets to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (non-current deferred income tax assets and non-current deferred income tax liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (2. RECENT) Tj ET Q q 0 0 0 rg BT 108.49 490.25 Td ( ) Tj ET Q q 0 0 0 rg BT 110.44 490.25 Td (ACCOUNTING ST) Tj ET Q q 0 0 0 rg BT 193.88 490.25 Td (ANDARDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 466.25 Td (Adoption of New ) Tj ET Q q 0 0 0 rg BT 141.67 466.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 203.43 466.25 Td (onouncements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.25 Td (In November 2015, the F) Tj ET Q q 0 0 0 rg BT 167.57 442.25 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 67.50 430.25 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 373.25 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.75 430.25 Td (The new guidance supersedes ) Tj ET Q q 0 0 0 rg BT 496.82 430.25 Td (ASC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.25 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 67.50 406.25 Td (noncurrent deferred tax assets for that tax jurisdiction on a pro rata basis. ) Tj ET Q q 0 0 0 rg BT 361.67 406.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 494.49 406.25 Td (fective for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.25 Td (fiscal year beginning October 2, 2017. ) Tj ET Q q 0 0 0 rg BT 223.38 394.25 Td (W) Tj ET Q q 0 0 0 rg BT 232.02 394.25 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 67.50 382.25 Td (2016, which resulted in the reclassification of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.45 382.25 Td ($28.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.34 382.25 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 67.50 370.25 Td (deferred income tax assets and non-current deferred income tax liabilities as of October 3, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td (In ) Tj ET Q q 0 0 0 rg BT 77.78 346.25 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 145.92 346.25 Td (ASB issued amended guidance that simplifies the presentation of debt issuance costs by requiring that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.25 Td (debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.25 Td (carrying amount of that debt liability) Tj ET Q q 0 0 0 rg BT 214.31 322.25 Td (, consistent with debt discounts. ) Tj ET Q q 0 0 0 rg BT 344.40 322.25 Td (The recognition and measurement guidance for debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.25 Td (issuance costs are not af) Tj ET Q q 0 0 0 rg BT 163.95 310.25 Td (fected by the amended guidance. ) Tj ET Q q 0 0 0 rg BT 297.60 310.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 430.42 310.25 Td (fective for our fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.25 Td (beginning October 2, 2016. ) Tj ET Q q 0 0 0 rg BT 179.52 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 188.16 298.25 Td (e elected to early adopt the standard in the second quarter of fiscal 2016 to record the debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.25 Td (issuance costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.21 286.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.10 286.25 Td ( in other assets for the debt commitment we entered into in the second quarter of fiscal 2016. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 262.25 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 136.39 262.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 198.15 262.25 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 238.25 Td (In March 2016, the F) Tj ET Q q 0 0 0 rg BT 151.46 238.25 Td (ASB issued amended guidance that simplifies several aspects of the accounting for employee share-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.25 Td (based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.25 Td (requirements, as well as classification in the statement of cash flows. Under the new guidance, an entity recognizes all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td (excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement. ) Tj ET Q q 0 0 0 rg BT 460.22 202.25 Td (This change eliminates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.25 Td (the notion of the ) Tj ET Q q 0 0 0 rg BT 135.27 190.25 Td (APIC pool and significantly reduces the complexity and cost of accounting for excess tax benefits and tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td (deficiencies. In addition, excess tax benefits and tax deficiencies are considered discrete items in the reporting period they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.25 Td (occur and are not included in the estimate of an entity) Tj ET Q q 0 0 0 rg BT 285.20 166.25 Td (s annual ef) Tj ET Q q 0 0 0 rg BT 328.33 166.25 Td (fective tax rate. ) Tj ET Q q 0 0 0 rg BT 392.56 166.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 525.38 166.25 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td (for our fiscal year beginning October 2, 2017. ) Tj ET Q q 0 0 0 rg BT 253.37 154.25 Td (W) Tj ET Q q 0 0 0 rg BT 262.01 154.25 Td (e are currently assessing the impact of this amended guidance and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.25 Td (timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.25 Td (In February 2016, the F) Tj ET Q q 0 0 0 rg BT 161.46 118.25 Td (ASB issued amended guidance to increase transparency and comparability among or) Tj ET Q q 0 0 0 rg BT 500.06 118.25 Td (ganizations by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 106.25 Td (recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 94.25 Td (arrangements. ) Tj ET Q q 0 0 0 rg BT 126.18 94.25 Td (The new guidance clarifies the criteria for distinguishing between a finance lease and operating lease, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.25 Td (well as classification between the two types of leases, which is substantially unchanged from the previous lease guidance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.25 Td (Further) Tj ET Q q 0 0 0 rg BT 96.54 70.25 Td (, the new guidance requires a lessee to recognize in the statement of financial position a liability to make lease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 58.25 Td (payments \(the lease liability\) and a right-of-use asset, initially measured at the present value of the lease payments. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 46.25 Td (finance leases, a lessee should recognize interest on the lease liability separately from amortization of the right-of-use ) 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 67.50 742.10 Td (asset. For operating leases, a lessee should recognize a single lease cost, calculated so that the cost of the lease is allocated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (over the lease term on a generally straight-line basis. For leases with a term of 12 months or less, a lessee is permitted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td (make an accounting policy election not to recognize lease assets and lease liabilities. ) Tj ET Q q 0 0 0 rg BT 408.31 718.10 Td (The new standard will become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (ef) Tj ET Q q 0 0 0 rg BT 75.09 706.10 Td (fective for our fiscal year beginning September 29, 2019. ) Tj ET Q q 0 0 0 rg BT 306.22 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.86 706.10 Td (e are currently assessing the impact of this amended guidance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td (and the timing of adoption.) 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 67.50 670.10 Td (In January 2016, the F) Tj ET Q q 0 0 0 rg BT 156.46 670.10 Td (ASB issued amended guidance that revises the recognition and measurement of financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 118.98 658.10 Td (The new guidance requires equity investments \(except those accounted for under the equity method of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td (accounting, or those that result in consolidation of the investee\) 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 67.50 634.10 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 67.50 622.10 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 67.50 610.10 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 67.50 598.10 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 67.50 586.10 Td (instruments measured at amortized cost. ) Tj ET Q q 0 0 0 rg BT 233.11 586.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 365.93 586.10 Td (fective for our fiscal year beginning September ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td (30, 2018. ) Tj ET Q q 0 0 0 rg BT 107.32 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 115.96 574.10 Td (e are currently assessing the impact of this amended guidance and the timing of adoption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 540.10 Td (3. ) Tj ET Q q 0 0 0 rg BT 68.00 540.10 Td (BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 167.56 540.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 520.10 Td (Rofin-Sinar) Tj ET Q q 0 0 0 rg BT 118.38 520.10 Td ( ) Tj ET Q q 0 0 0 rg BT 120.70 520.10 Td (T) Tj ET Q q 0 0 0 rg BT 126.45 520.10 Td (echnologies, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 503.10 Td (On March 16, 2016, we entered into a definitive agreement to acquire Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 399.10 503.10 Td (T) Tj ET Q q 0 0 0 rg BT 404.51 503.10 Td (echnologies, Inc. \("Rofin"\), one of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 491.10 Td (world's leading developers and manufacturers of high-performance industrial laser sources and laser) Tj ET Q q 0 0 0 rg BT 468.62 491.10 Td (-based solutions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 479.10 Td (components. ) Tj ET Q q 0 0 0 rg BT 121.14 479.10 Td (The acquisition will be an all-cash transaction at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.44 479.10 Td ($32.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.94 479.10 Td ( per share of Rofin common stock for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 467.10 Td (total approximate of) Tj ET Q q 0 0 0 rg BT 148.90 467.10 Td (fer value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.49 467.10 Td ($942 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.88 467.10 Td ( before fees and transaction costs. ) Tj ET Q q 0 0 0 rg BT 386.14 467.10 Td (The completion of the acquisition is subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 455.10 Td (to customary closing conditions, including regulatory approvals.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 435.10 Td (Fiscal 2015 ) Tj ET Q q 0 0 0 rg BT 117.44 435.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 415.10 Td (Raydiance, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 395.10 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 458.25 395.10 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.15 395.10 Td (, excluding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 383.10 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 68.00 371.10 Td (precision micromachining processing market. ) Tj ET Q q 0 0 0 rg BT 253.04 371.10 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 68.00 359.10 Td (Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 339.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 328.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 328.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 298.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 298.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 268.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 268.60 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 418.5 253.60000000000002 m 488.5 253.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 239.60000000000002 m 488.5 239.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 237.60000000000002 m 488.5 237.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 318.27 Td (Tangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 318.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 318.27 Td (1,048) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 303.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 303.27 Td (1,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 288.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 273.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 273.27 Td (800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 258.27 Td ( Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 258.27 Td (1,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 243.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 243.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 243.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 219.10 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 501.73 219.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.62 219.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 207.10 Td (and a corresponding decrease of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.33 207.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.22 207.10 Td ( to tangible assets, and has been updated from the preliminary allocation in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 195.10 Td (the fourth quarter of fiscal 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 175.10 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 68.00 163.10 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 68.00 151.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 165.27 151.10 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 68.00 138.03 353.76 -9.09 re f /GS0 gs q 0 0 0 rg BT 68.00 131.10 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 421.76 131.10 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.59 131.10 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.58 131.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.35 131.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.90 131.10 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 111.10 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 91.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 91.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.28 91.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.17 91.10 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 79.10 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 59.10 Td (T) Tj ET Q q 0 0 0 rg BT 74.49 59.10 Td (insley Optics) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (On July 27, 2015, we acquired the assets and certain liabilities of the ) Tj ET Q q 0 0 0 rg BT 345.25 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 351.00 742.10 Td (insley Optics \("T) Tj ET Q q 0 0 0 rg BT 419.17 742.10 Td (insley"\) business from L-3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (Communications Corporation for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.07 730.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.97 730.10 Td (, excluding transaction costs. ) Tj ET Q q 0 0 0 rg BT 431.09 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 436.85 730.10 Td (insley is a specialized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 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 547.50 718.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 73.76 706.10 Td (insley manufactures the lar) Tj ET Q q 0 0 0 rg BT 181.59 706.10 Td (ge form factor optics for our excimer laser annealing systems. ) Tj ET Q q 0 0 0 rg BT 431.60 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 437.36 706.10 Td (insley has been included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (Specialty Lasers and Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 674.10 Td (Our allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 663.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 663.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 633.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 633.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 603.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 603.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 573.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 573.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 543.60 350.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 543.60 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 418.5 543.6 m 488.5 543.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 529.6 m 488.5 529.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 527.6 m 488.5 527.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 653.27 Td (Tangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 638.27 Td ( Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 638.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 638.27 Td (2,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 623.27 Td ( Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 623.27 Td (2,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 608.27 Td ( Prepaid expenses and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 608.27 Td (1,132) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 593.27 Td ( Property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 593.27 Td (2,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 578.27 Td (Liabilities assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 578.32 Td (\(1,702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 578.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 563.27 Td (Deferred tax liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 563.32 Td (\(768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 563.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 548.27 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 548.32 Td (\(1,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 548.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 533.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 533.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 533.27 Td (4,300) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 509.10 Td (The purchase price was lower than the fair value of net assets purchased, resulting in a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.03 509.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.92 509.10 Td ( recorded as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 497.10 Td (separate line item in our consolidated statements of operations for our fiscal year 2015. ) Tj ET Q q 0 0 0 rg BT 418.54 497.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.18 497.10 Td (e reassessed the recognition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 485.10 Td (measurement of identifiable assets acquired and liabilities assumed and concluded that all acquired assets and assumed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 473.10 Td (liabilities were recognized and that the valuation procedures and resulting measures were appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 453.10 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 68.00 441.10 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 68.00 429.10 Td (presented because the ef) Tj ET Q q 0 0 0 rg BT 165.27 429.10 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 68.00 409.10 Td (The gain from the bar) Tj ET Q q 0 0 0 rg BT 155.01 409.10 Td (gain purchase is not subject to income taxation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 389.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 389.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.28 389.10 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.17 389.10 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 68.00 377.10 Td (statements of operations for our fiscal year 2015.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 345.10 Td (4.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 345.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 345.10 Td (F) Tj ET Q q 0 0 0 rg BT 75.37 345.10 Td (AIR ) Tj ET Q q 0 0 0 rg BT 96.02 345.10 Td (V) Tj ET Q q 0 0 0 rg BT 101.95 345.10 Td (ALUES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 333.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 321.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 321.10 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 68.00 309.10 Td (period. ) Tj ET Q q 0 0 0 rg BT 98.37 309.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.00 309.10 Td (e recognize transfers between levels within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 374.28 309.10 Td (, if any) Tj ET Q q 0 0 0 rg BT 401.68 309.10 Td (, at the end of each quarter) Tj ET Q q 0 0 0 rg BT 507.46 309.10 Td (. ) Tj ET Q q 0 0 0 rg BT 512.28 309.10 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 297.10 Td (no transfers between levels during the periods presented. ) Tj ET Q q 0 0 0 rg BT 297.10 297.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.99 297.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 297.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.04 297.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.74 297.10 Td (, we did not have any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 285.10 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 68.00 261.10 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 302.37 261.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.98 261.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.42 261.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.12 261.10 Td ( are summarized below \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 249.10 Td (thousands\):) 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 Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 654.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 654.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 654.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 654.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 654.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 654.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 654.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 624.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 624.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 624.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 624.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 624.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 624.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 624.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 585.50 158.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 585.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 585.50 47.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 585.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 585.50 60.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 585.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 585.50 49.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 585.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 585.50 47.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 585.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 585.50 60.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 585.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 585.50 49.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 544.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 544.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 544.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 544.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 544.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 544.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 544.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 544.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 544.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 544.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 544.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 544.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 544.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 514.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 514.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 514.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 514.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 514.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 514.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 514.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 514.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 514.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 514.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 514.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 514.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 514.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 484.50 158.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 484.50 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 484.50 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 484.50 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 484.50 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 484.50 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 484.50 49.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 484.50 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 484.50 47.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 484.50 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 484.50 60.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 484.50 4.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 484.50 49.00 -29.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 440.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 440.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 440.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 440.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 440.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 440.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 440.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 410.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 410.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 410.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 410.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 410.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 410.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 410.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 410.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 380.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 226.50 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 380.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 277.50 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 281.50 380.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 345.50 380.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 394.50 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 380.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 445.50 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 449.50 380.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 509.50 380.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 513.50 380.50 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 226.5 680.5 m 230.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 680.5 m 277.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277.5 680.5 m 281.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 680.5 m 341.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 680.5 m 345.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 680.5 m 394.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 680.5 m 445.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 680.5 m 449.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 680.5 m 509.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 680.5 m 513.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 680.5 m 562.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 667.5 m 230.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 667.5 m 277.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 277.5 667.5 m 281.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 667.5 m 341.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 667.5 m 345.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 667.5 m 394.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 680.5 m 445.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 667.5 m 445.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 680.5 m 449.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 667.5 m 449.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 680.5 m 509.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 667.5 m 509.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509.5 667.5 m 513.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 680.5 m 562.5 680.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 667.5 m 562.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 667.5 m 445.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445.5 667.5 m 449.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 667.5 m 509.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 667.5 m 562.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 455.5 m 230.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 441.5 m 230.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 439.5 m 230.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 455.5 m 277.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 441.5 m 277.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 439.5 m 277.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 455.5 m 341.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 441.5 m 341.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 439.5 m 341.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 455.5 m 394.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 441.5 m 394.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 439.5 m 394.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 455.5 m 445.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 441.5 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 398.5 439.5 m 445.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 455.5 m 509.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 441.5 m 509.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 439.5 m 509.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 455.5 m 562.5 455.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 441.5 m 562.5 441.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 439.5 m 562.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 440.5 m 230.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 440.5 m 277.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 440.5 m 341.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 440.5 m 394.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 440.5 m 445.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 440.5 m 509.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 440.5 m 562.5 440.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 380.5 m 230.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 366.5 m 230.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226.5 364.5 m 230.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 380.5 m 277.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 366.5 m 277.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 364.5 m 277.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 380.5 m 341.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 366.5 m 341.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281.5 364.5 m 341.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 380.5 m 394.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 366.5 m 394.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 364.5 m 394.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 380.5 m 445.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 366.5 m 445.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398.5 364.5 m 445.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 380.5 m 509.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 366.5 m 509.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 364.5 m 509.5 364.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 380.5 m 562.5 380.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 366.5 m 562.5 366.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513.5 364.5 m 562.5 364.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 683.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.00 692.73 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 235.65 684.73 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.85 716.73 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.65 708.73 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.65 700.73 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.85 692.73 Td (for) Tj ET Q q 0 0 0 rg BT 299.92 692.73 Td (Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.30 684.73 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.05 708.73 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.35 700.73 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.90 692.73 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.35 684.73 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.00 692.73 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.65 684.73 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.85 716.73 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.65 708.73 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.65 700.73 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.85 692.73 Td (forIdentical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.30 684.73 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.05 708.73 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 527.35 700.73 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.90 692.73 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.35 684.73 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.85 671.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.05 671.73 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 147.00 657.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.00 658.73 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.50 658.73 Td (\(Level2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 658.73 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.50 658.73 Td (\(Level2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 644.17 Td (Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 629.17 Td (Cash equivalents:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 614.17 Td (Money market fund deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.10 614.17 Td (32,184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 614.17 Td (32,184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 614.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 614.17 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 614.17 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 614.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 590.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 574.17 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 103.10 574.17 Td (T) Tj ET Q q 0 0 0 rg BT 108.86 574.17 Td (reasury and agency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 564.17 Td (obligations ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 129.94 568.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 564.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.10 564.17 Td (140,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.00 564.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 564.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 564.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.10 564.17 Td (140,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 564.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.10 564.17 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 564.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 564.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.00 564.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.10 564.17 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 549.17 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 212.98 553.70 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.10 549.17 Td (35,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 549.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 549.17 Td (35,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 549.17 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 549.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 549.17 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 534.17 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 159.64 538.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.15 534.17 Td (7,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 534.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 534.17 Td (7,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 534.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 534.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 534.17 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 519.17 Td (Equity securities ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 152.43 523.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.10 519.17 Td (20,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 519.17 Td (20,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 519.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 519.17 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 519.17 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 519.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 504.17 Td (Prepaid and other assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 489.17 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 192.68 493.70 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.15 489.17 Td (3,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 489.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 489.17 Td (3,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 489.17 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 489.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 489.17 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 470.17 Td (Mutual funds Deferred comp ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 460.17 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 175.48 464.70 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.10 460.17 Td (12,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 460.17 Td (12,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 460.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.10 460.17 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 460.17 Td (13,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 460.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 445.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.10 445.17 Td (251,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 445.17 Td (64,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.10 445.17 Td (186,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.10 445.17 Td (217,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 445.17 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.00 445.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.10 445.17 Td (178,688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 415.17 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 400.17 Td (Other current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 385.17 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 192.68 389.70 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 385.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.80 385.17 Td (\(1,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 385.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.00 385.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 385.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 385.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.80 385.22 Td (\(1,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 385.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 385.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.30 385.22 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 385.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 385.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 385.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.00 385.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 385.22 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.65 385.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 370.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.10 370.17 Td (249,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.00 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 370.17 Td (64,947) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.10 370.17 Td (184,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.00 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.10 370.17 Td (217,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 370.17 Td (38,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.00 370.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.10 370.17 Td (178,449) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 342.00 Td (___________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 318.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 318.00 Td (V) Tj ET Q q 0 0 0 rg BT 78.61 318.00 Td (aluations are based upon quoted market prices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 294.00 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 294.00 Td (V) Tj ET Q q 0 0 0 rg BT 78.61 294.00 Td (aluations are based upon quoted market prices in active markets involving similar assets. ) Tj ET Q q 0 0 0 rg BT 436.11 294.00 Td (The market inputs used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 282.00 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 72.50 270.00 Td (sources with reasonable levels of price transparency) Tj ET Q q 0 0 0 rg BT 280.10 270.00 Td (. Pricing sources include industry standard data providers, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 258.00 Td (master files from lar) Tj ET Q q 0 0 0 rg BT 153.68 258.00 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 72.50 246.00 Td (algorithm to determine a daily market value. ) Tj ET Q q 0 0 0 rg BT 252.81 246.00 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 72.50 234.00 Td (security) Tj ET Q q 0 0 0 rg BT 103.51 234.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 210.00 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 210.00 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 510.75 210.00 Td (-the-counter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 198.00 Td (environment with a relatively high level of price transparency) Tj ET Q q 0 0 0 rg BT 318.98 198.00 Td (. ) Tj ET Q q 0 0 0 rg BT 323.80 198.00 Td (The market participants usually are lar) Tj ET Q q 0 0 0 rg BT 477.72 198.00 Td (ge commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 186.00 Td (banks. Our foreign currency contracts) Tj ET Q q 0 0 0 rg BT 226.42 186.00 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 72.50 174.00 Td (public data sources and do not involve management judgment. ) Tj ET Q q 0 0 0 rg BT 324.66 174.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.61 174.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.22 174.00 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 162.00 Td ($3,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 162.00 Td ( non-designated forward contracts; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.13 162.00 Td ($1,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.63 162.00 Td ( non-designated forward contracts. ) Tj ET Q q 0 0 0 rg BT 535.42 162.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 150.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.21 150.00 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.04 150.00 Td ($217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.04 150.00 Td ( non-designated forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.82 150.00 Td ($41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.82 150.00 Td ( foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 138.00 Td (currency contracts designated for cash flow hedges, respectively; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.96 138.00 Td ($239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.96 138.00 Td ( non-designated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 126.00 Td (forward contracts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.18 126.00 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.18 126.00 Td ( foreign currency contracts designated for cash flow hedges respectively) Tj ET Q q 0 0 0 rg BT 460.58 126.00 Td (. See Note 6, "Derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 114.00 Td (Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 175.54 114.00 Td (Activities". ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 90.00 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 90.00 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 78.00 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 78.00 Td (-the-counter markets and listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 66.00 Td (securities for which no sale was reported on that date are stated as the last quoted bid price. ) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 51.00 742.25 Td (5.) Tj ET Q BT /F2 3.00 Tf ET q 0 0 0 rg BT 58.50 742.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.25 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.75 742.25 Td (SHOR) Tj ET Q q 0 0 0 rg BT 98.74 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 104.49 742.25 Td (-TERM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.82 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.32 742.25 Td (INVESTMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 730.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 718.25 Td (W) Tj ET Q q 0 0 0 rg BT 77.64 718.25 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 69.00 706.25 Td (equivalents. Investments classified as available-for) Tj ET Q q 0 0 0 rg BT 272.34 706.25 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 69.00 694.25 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 521.13 694.25 Td ( equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 682.25 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 69.00 670.25 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 69.00 658.25 Td (income \(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 634.25 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 69.00 622.25 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 577.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 577.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 577.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 577.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 577.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 577.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 577.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 577.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 547.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 547.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 547.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 547.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 547.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 547.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 547.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 547.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 517.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 517.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 517.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 517.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 517.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 517.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 517.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 517.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 487.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 487.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 487.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 487.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 487.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 487.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 487.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 487.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 457.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 457.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 457.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 457.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 457.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 457.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 457.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 457.75 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 269.5 598.75 m 339.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 598.75 m 343.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 598.75 m 413.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 598.75 m 417.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 598.75 m 487.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 598.75 m 491.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 598.75 m 561.5 598.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 577.75 m 339.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 577.75 m 413.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 577.75 m 487.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 577.75 m 561.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 577.75 m 339.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 563.75 m 339.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 561.75 m 339.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 577.75 m 413.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 563.75 m 413.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 561.75 m 413.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 577.75 m 487.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 563.75 m 487.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 561.75 m 487.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 577.75 m 561.5 577.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 563.75 m 561.5 563.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 561.75 m 561.5 561.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 457.75 m 339.5 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 443.75 m 339.5 443.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 441.75 m 339.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 457.75 m 413.5 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 443.75 m 413.5 443.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 441.75 m 413.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 457.75 m 487.5 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 443.75 m 487.5 443.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 441.75 m 487.5 441.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 457.75 m 561.5 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 443.75 m 561.5 443.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 441.75 m 561.5 441.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 601.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.85 602.98 Td (April 2, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 580.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 581.98 Td (CostBasis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 589.98 Td (Unr) Tj ET Q q 0 0 0 rg BT 373.03 589.98 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.95 581.98 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 589.98 Td (Unr) Tj ET Q q 0 0 0 rg BT 447.03 589.98 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.85 581.98 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 581.98 Td (FairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 568.32 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 567.42 Td (157,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 567.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 567.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 567.42 Td (157,176) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 72.00 550.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 550.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 550.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 537.42 Td (Short-term investments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 535.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 535.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 535.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 535.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 522.42 Td (Available-for-sale securities:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 520.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 520.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 520.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 520.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 508.32 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 507.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 507.42 Td (7,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 507.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 507.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 507.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 507.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 507.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 507.42 Td (7,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 493.32 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 492.42 Td (139,943) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 492.42 Td (854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 492.47 Td (\(31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 492.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 492.42 Td (140,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 478.32 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 477.42 Td (35,093) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 477.42 Td (104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 477.47 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 477.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 477.42 Td (35,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 463.32 Td (Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 462.42 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 462.42 Td (5,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 462.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 462.42 Td (20,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 447.42 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 447.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 447.42 Td (197,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 447.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 447.42 Td (6,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 447.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 447.47 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 447.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 447.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 447.42 Td (203,882) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.50 431.25 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 386.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 386.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 386.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 386.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 386.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 386.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 356.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 356.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 356.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 356.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 356.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 356.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 356.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 356.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 326.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 326.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 326.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 326.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 326.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 326.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 326.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 326.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 296.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 296.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 296.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 296.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 296.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 296.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 296.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 296.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 266.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 266.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 266.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 266.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 266.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 266.75 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 266.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 266.75 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 269.5 407.75 m 339.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 407.75 m 343.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 407.75 m 413.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 407.75 m 417.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 407.75 m 487.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 407.75 m 491.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 407.75 m 561.5 407.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 386.75 m 339.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 386.75 m 413.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 386.75 m 487.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 386.75 m 561.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 386.75 m 339.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 372.75 m 339.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 370.75 m 339.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 386.75 m 413.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 372.75 m 413.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 370.75 m 413.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 386.75 m 487.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 372.75 m 487.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 370.75 m 487.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 386.75 m 561.5 386.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 372.75 m 561.5 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 370.75 m 561.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 266.75 m 339.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 252.75 m 339.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 250.75 m 339.5 250.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 266.75 m 413.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 252.75 m 413.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 250.75 m 413.5 250.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 266.75 m 487.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 252.75 m 487.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 250.75 m 487.5 250.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 266.75 m 561.5 266.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 252.75 m 561.5 252.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 250.75 m 561.5 250.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 410.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.05 411.98 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 389.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 390.98 Td (CostBasis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 398.98 Td (Unr) Tj ET Q q 0 0 0 rg BT 373.03 398.98 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.95 390.98 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 398.98 Td (Unr) Tj ET Q q 0 0 0 rg BT 447.03 398.98 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.85 390.98 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 390.98 Td (FairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 377.32 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 376.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 376.42 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 376.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 376.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 376.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 376.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 376.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 376.42 Td (130,607) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 72.00 359.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 359.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 359.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.42 Td (Short-term investments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 344.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 344.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 344.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 344.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 331.42 Td (Available-for-sale securities:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 329.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 329.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 329.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 329.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 317.32 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 316.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 316.42 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 316.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 316.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 316.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 316.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 316.42 Td (9,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 301.42 Td ( U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 301.42 Td (149,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 301.42 Td (1,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 301.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 301.42 Td (150,748) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 287.32 Td (Corporate notes and obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 286.42 Td (17,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 286.42 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 286.47 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 286.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 286.42 Td (17,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 272.32 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 271.42 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 271.42 Td (1,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 271.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 271.42 Td (16,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 256.42 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 256.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 256.42 Td (192,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 256.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 256.42 Td (2,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 256.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 256.47 Td (\(2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 256.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 256.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 256.42 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 228.25 Td (None of the unrealized losses as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.35 228.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.96 228.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.29 228.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.99 228.25 Td ( were considered to be other) Tj ET Q q 0 0 0 rg BT 454.80 228.25 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 216.25 Td (impairments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 192.25 Td (The amortized cost and estimated fair value of available-for) Tj ET Q q 0 0 0 rg BT 308.14 192.25 Td (-sale investments in debt securities as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 192.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.76 192.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 180.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.71 180.25 Td ( classified as short-term investments on our condensed consolidated balance sheet were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 168.25 Td (thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 156.25 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 119.75 161.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 230.50 119.75 79.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 119.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 119.75 79.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 119.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 119.75 79.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 119.75 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.50 119.75 79.00 -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 230.5 132.75 m 309.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 132.75 m 313.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 132.75 m 392.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 132.75 m 475.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 132.75 m 479.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.5 132.75 m 558.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230.5 119.75 m 309.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 132.75 m 392.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 119.75 m 392.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 119.75 m 475.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.5 132.75 m 558.5 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.5 119.75 m 558.5 119.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 135.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.85 136.98 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.05 136.98 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 122.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.50 123.98 Td (AmortizedCost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.30 123.98 Td (EstimatedFairValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 123.98 Td (AmortizedCost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.30 123.98 Td (EstimatedFairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 108.42 Td (Investments in available-for-sale debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 98.42 Td (securities due in less than one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 98.42 Td (163,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 98.42 Td (164,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 98.42 Td (148,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.00 98.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 98.42 Td (149,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 82.42 Td (Investments in available-for) Tj ET Q q 0 0 0 rg BT 183.98 82.42 Td (-sale debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 72.42 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 208.34 76.95 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 72.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.15 72.42 Td (19,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.00 72.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 72.42 Td (19,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.00 72.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 72.42 Td (29,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.00 72.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 72.42 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 56.25 Td () 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 69.00 742.10 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 69.00 718.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 718.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.97 718.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.91 718.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.52 718.10 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.13 718.10 Td ($13.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.03 718.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.46 718.10 Td ($28.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.36 718.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 706.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 116.66 706.10 Td (, from the sale of available-for) Tj ET Q q 0 0 0 rg BT 238.07 706.10 Td (-sale securities and realized gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.06 706.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.95 706.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.39 706.10 Td ($0.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 694.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.89 694.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 150.55 694.10 Td (. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.10 694.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.52 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.47 694.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.08 694.10 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.69 694.10 Td ($48.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.58 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 682.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.94 682.10 Td ($77.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.83 682.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 192.49 682.10 Td (, from the sale of available-for) Tj ET Q q 0 0 0 rg BT 313.90 682.10 Td (-sale securities and realized gross gains of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.89 682.10 Td ($0.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 670.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.89 670.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.33 670.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.22 670.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 218.88 670.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (6. DERIV) Tj ET Q q 0 0 0 rg BT 100.44 646.10 Td (A) Tj ET Q q 0 0 0 rg BT 106.92 646.10 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 209.17 646.10 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 283.62 646.10 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 622.10 Td (e maintain operations in various countries outside of the United States and have foreign subsidiaries that manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 259.78 610.10 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 519.58 610.10 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 337.84 598.10 Td (Y) Tj ET Q q 0 0 0 rg BT 344.06 598.10 Td (en, South Korean ) Tj ET Q q 0 0 0 rg BT 416.09 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.73 598.10 Td (on and Chinese Renminbi \(RMB\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td (As a result, our earnings, cash flows and cash balances are exposed to fluctuations in foreign currency exchange rates. ) Tj ET Q q 0 0 0 rg BT 542.14 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 550.78 586.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td (attempt to limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 350.03 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 358.67 574.10 Td (e utilize derivative instruments, primarily forward ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td (contracts with maturities of two months or less, to manage our exposure associated with anticipated cash flows and net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td (asset and liability positions denominated in foreign currencies. Gains and losses on the forward contracts are mitigated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td (gains and losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 258.96 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 267.60 538.10 Td (e do not use derivative financial instruments for speculative or trading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td (purposes. ) Tj ET Q q 0 0 0 rg BT 107.87 526.10 Td (The credit risk amounts represent the Company) Tj ET Q q 0 0 0 rg BT 300.60 526.10 Td (s gross exposure to potential accounting loss on derivative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 Td (instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.10 Td (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 49.50 490.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td (For derivative instruments that are not designated as hedging instruments, gains and losses are recognized in other income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td (\(expense\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td (Non-Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 425.10 Td (The outstanding notional contract and fair value asset \(liability\) amounts of non-designated hedge contracts, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 413.10 Td (maximum maturity of two months, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 365.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 365.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 365.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 365.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 365.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 365.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 365.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 365.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 335.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 335.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 335.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 335.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 335.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 335.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 335.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 335.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 305.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 305.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 305.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 305.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 305.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 305.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 305.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 305.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 275.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 275.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 275.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 275.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 275.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 275.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 275.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 275.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 245.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 245.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 245.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 245.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 245.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 245.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 245.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 245.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 215.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 215.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 215.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 215.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 215.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 215.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 215.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 215.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 185.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 185.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 185.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 185.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 185.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 185.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 155.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 155.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 155.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 155.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 155.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 155.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 155.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 155.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 125.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 125.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.00 125.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.00 125.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.00 125.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 125.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.00 125.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 125.60 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 268 384.6 m 338 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 384.6 m 342 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 384.6 m 412 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 384.6 m 486 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 384.6 m 490 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 384.6 m 560 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 365.6 m 338 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 384.6 m 412 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 365.6 m 412 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 365.6 m 486 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 384.6 m 560 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 365.6 m 560 365.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 387.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.80 388.83 Td (U.S.NotionalContractValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.55 388.83 Td (U.S.FairValue) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 368.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.35 369.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.55 369.83 Td (October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.35 369.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.55 369.83 Td (October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 356.17 Td (Euro currency hedge contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 334.50 353.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 408.50 353.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 482.50 353.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 556.50 353.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 341.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 340.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.65 340.28 Td (63,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 340.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 340.27 Td (52,699) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 340.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 459.65 340.28 Td (2,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 340.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 340.27 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 311.17 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 296.17 Td ( Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 295.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.65 295.28 Td (2,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 295.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 295.27 Td (558) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 295.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 295.28 Td (66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 295.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 295.27 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 281.17 Td ( Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 280.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.30 280.33 Td (\(36,480) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 280.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.30 280.32 Td (\(15,804) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 280.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 280.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 280.33 Td (\(406) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.15 280.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 280.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.80 280.32 Td (\(84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.15 280.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 251.17 Td (South Korean Won currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 236.17 Td ( Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 235.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.15 235.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 235.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 235.27 Td (253) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 235.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 235.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 235.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 235.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 221.17 Td ( Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 220.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.30 220.33 Td (\(15,872) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 220.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 220.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.30 220.32 Td (\(17,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 220.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 220.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.30 220.33 Td (\(1,154) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.15 220.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 220.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.15 220.27 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 191.17 Td (Chinese RMB currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 176.17 Td ( Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 175.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.30 175.33 Td (\(10,538) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 175.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 175.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.30 175.32 Td (\(10,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 175.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 175.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 175.33 Td (\(193) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.15 175.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 175.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 175.32 Td (\(106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.15 175.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 146.17 Td (Other foreign currency hedge contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 334.50 143.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 408.50 143.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 482.50 143.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 556.50 143.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 131.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 130.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.65 130.28 Td (4,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 130.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 130.27 Td (3,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 130.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 130.28 Td (167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 130.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.80 130.32 Td (\(49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.15 130.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 116.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 115.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.30 115.33 Td (\(2,070) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 115.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.50 115.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.30 115.32 Td (\(5,835) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 115.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 418.50 115.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 115.33 Td (\(151) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 482.15 115.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.50 115.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 115.27 Td (146) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 82.10 Td (Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 65.10 Td (Cash flow hedges related to anticipated transactions are designated and documented at the inception of the hedge when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 53.10 Td (enter into contracts for specific future transactions. Cash flow hedges are evaluated for ef) Tj ET Q q 0 0 0 rg BT 424.39 53.10 Td (fectiveness quarterly) Tj ET Q q 0 0 0 rg BT 506.76 53.10 Td (. ) Tj ET Q q 0 0 0 rg BT 511.58 53.10 Td (The ) 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 67.50 742.10 Td (ef) Tj ET Q q 0 0 0 rg BT 75.09 742.10 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 67.50 730.10 Td (reclassified into earnings when the underlying transaction af) Tj ET Q q 0 0 0 rg BT 308.63 730.10 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 368.70 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 377.34 730.10 Td (e had no cash flow hedges outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.11 718.10 Td (. Changes in the fair value of currency forward contracts due to changes in time value are excluded from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (assessment of ef) Tj ET Q q 0 0 0 rg BT 132.86 706.10 Td (fectiveness and recognized in other income \(expense\) as incurred. ) Tj ET Q q 0 0 0 rg BT 398.67 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 407.31 706.10 Td (e classify the cash flows from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td (foreign exchange forward contracts that are accounted for as cash flow hedges in the same section as the underlying item, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td (primarily within cash flows from operating activities since we do not designate our cash flow hedges as investing or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (financing activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td (The outstanding notional contract and fair value asset \(liability\) amounts of designated cash flow hedge contracts, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td (maximum maturity of thirteen months, are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 76.50 591.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 591.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 337.50 591.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 341.50 591.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 591.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 591.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 591.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 484.50 591.60 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 269.5 610.6 m 337.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337.5 610.6 m 341.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 610.6 m 408.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 610.6 m 480.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 610.6 m 484.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 610.6 m 552.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 591.6 m 337.5 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 610.6 m 408.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 591.6 m 408.5 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 591.6 m 480.5 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 610.6 m 552.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 484.5 591.6 m 552.5 591.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 79.00 613.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.80 614.83 Td (U.S.NotionalContractValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.05 614.83 Td (U.S.FairValue) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 79.00 594.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.85 595.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.55 595.83 Td (October 3, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.85 595.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.05 595.83 Td (October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 582.17 Td (Japanese ) Tj ET Q q 0 0 0 rg BT 116.67 582.17 Td (Y) Tj ET Q q 0 0 0 rg BT 122.89 582.17 Td (en currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 567.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 566.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 323.65 566.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 566.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 566.32 Td (\(2,093) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 566.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.00 566.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 466.65 566.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.00 566.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 566.27 Td (41) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 528.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 528.10 Td (e have entered into certain derivative forward contracts to sell Japanese ) Tj ET Q q 0 0 0 rg BT 363.69 528.10 Td (Y) Tj ET Q q 0 0 0 rg BT 369.91 528.10 Td (en and buy Euro to hedge revenue exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 516.10 Td (related to our photonics-based solutions in ) Tj ET Q q 0 0 0 rg BT 239.14 516.10 Td (Asia. In order to facilitate the hedge, we transact with counterparties in the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 504.10 Td (directly and then allocate the hedge contracts to our af) Tj ET Q q 0 0 0 rg BT 284.17 504.10 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 67.50 492.10 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 107.96 492.10 Td (. ) Tj ET Q q 0 0 0 rg BT 112.78 492.10 Td (The German subsidiary designates these hedge contracts as cash flow hedges under ) Tj ET Q q 0 0 0 rg BT 448.23 492.10 Td (ASC 815, none of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 480.10 Td (were outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.76 480.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.37 480.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 468.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 456.10 Td (The fair value of our derivative instruments is included in prepaid expenses and other assets and in other current liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 444.10 Td (in our Condensed Consolidated Balance Sheets \(see Note 4 "Fair ) Tj ET Q q 0 0 0 rg BT 329.68 444.10 Td (V) Tj ET Q q 0 0 0 rg BT 335.79 444.10 Td (alues"\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 420.10 Td (The locations and amounts of designated and non-designated derivative instruments' gains and losses in the condensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 408.10 Td (consolidated financial statements for the indicated periods were as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 67.00 356.60 185.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 356.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 356.60 90.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 356.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 356.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 356.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 356.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 356.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 356.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 356.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.00 304.60 185.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 304.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 304.60 90.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 304.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 304.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 304.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 304.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 304.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 304.60 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 304.60 51.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.00 252.60 185.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 252.60 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 252.60 90.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 252.60 51.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 252.60 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 252.60 51.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 252.60 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 252.60 51.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 252.60 4.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 252.60 51.00 -33.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.00 193.60 185.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 252.00 193.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 193.60 90.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 346.00 193.60 51.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 193.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 193.60 51.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.00 193.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 193.60 51.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 507.00 193.60 4.00 -19.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 511.00 193.60 51.00 -19.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 382.6 m 397 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 382.6 m 401 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 382.6 m 452 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 382.6 m 507 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 382.6 m 511 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 382.6 m 562 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 356.6 m 397 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 356.6 m 452 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 382.6 m 507 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 356.6 m 507 356.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 382.6 m 511 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 382.6 m 562 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 356.6 m 562 356.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 69.50 385.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.15 368.83 Td (Location in financial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.25 360.83 Td (statements) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.10 386.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.90 386.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 69.50 359.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.85 360.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.85 360.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.85 360.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 360.83 Td (April 4, 2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 345.28 Td (Derivatives designated as hedging) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 335.28 Td (instruments) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 342.50 333.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 393.50 333.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 448.50 333.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 503.50 333.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.50 333.36 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 316.85 Td (Gains\(losses\) in OCI on derivatives \(ef) Tj ET Q q 0 0 0 rg BT 200.44 316.85 Td (fective ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 308.85 Td (portion\), after tax) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 308.85 Td (OCI) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.50 309.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.15 309.28 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 309.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 309.27 Td (175) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 309.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.80 309.33 Td (\(28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 309.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 309.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 309.27 Td (550) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 290.85 Td (Losses reclassified from OCI into income \(ef) Tj ET Q q 0 0 0 rg BT 219.76 290.85 Td (fective ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 282.85 Td (portion\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 282.85 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.50 283.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.15 283.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 283.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 283.32 Td (\(1,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 283.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 283.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 493.15 283.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 283.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 283.32 Td (\(1,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 283.27 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 264.85 Td (Gains\(losses\) reclassified from OCI into income ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 256.85 Td (\(ef) Tj ET Q q 0 0 0 rg BT 84.23 256.85 Td (fective portion\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 256.85 Td (Revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.50 257.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.80 257.33 Td (\(58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 257.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 257.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 257.32 Td (\(92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 257.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 257.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.80 257.33 Td (\(58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 257.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 257.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 257.27 Td (208) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 239.85 Td (Losses recognized in income on derivatives ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 231.85 Td (\(inef) Tj ET Q q 0 0 0 rg BT 90.46 231.85 Td (fective portion and amount excluded from ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 223.85 Td (ef) Tj ET Q q 0 0 0 rg BT 81.57 223.85 Td (fectiveness testing\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 223.85 Td (Other income\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.50 224.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.80 224.33 Td (\(1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 224.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 224.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.80 224.32 Td (\(77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 224.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 224.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.80 224.33 Td (\(30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 224.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 224.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 224.32 Td (\(112) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 224.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 210.33 Td (Derivatives not designated as hedging) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 200.33 Td (instruments) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 75.50 178.85 Td (Losses recognized in income) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 258.50 178.85 Td (Other income\(expense\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 348.50 179.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.80 179.33 Td (\(180) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 393.15 179.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 179.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 179.32 Td (\(5,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 179.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.50 179.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 477.30 179.33 Td (\(2,511) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 503.15 179.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 179.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 179.32 Td (\(6,125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 179.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 163.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 151.10 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 316.31 151.10 Td ($31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.31 151.10 Td ( in other income \(expense\) as inef) Tj ET Q q 0 0 0 rg BT 466.63 151.10 Td (fectiveness related to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 139.10 Td (portion of an anticipated hedged transaction that failed to occur within the original hedge period plus two months. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 127.10 Td (the three and six months ended ) Tj ET Q q 0 0 0 rg BT 193.58 127.10 Td (April 4, 2015 we recognized a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.04 127.10 Td ($106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.04 127.10 Td ( in other income \(expense\) as inef) Tj ET Q q 0 0 0 rg BT 501.37 127.10 Td (fectiveness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 115.10 Td (related to a portion of an anticipated hedged transaction that failed to occur within the original hedge period plus two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 103.10 Td (months. ) Tj ET Q q 0 0 0 rg BT 101.77 103.10 Td (The remainder of the hedged transactions occurred as expected and ef) Tj ET Q q 0 0 0 rg BT 380.90 103.10 Td (fective amounts were recognized in revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 91.10 Td (as disclosed in the above table.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 67.10 Td (The amounts that are reclassified from OCI to earnings are generally of) Tj ET Q q 0 0 0 rg BT 353.04 67.10 Td (fset by the recognition of the hedged transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 55.10 Td (\(e.g., anticipated cost of sales\) in earnings, thereby achieving the realization of prices contemplated by the underlying risk ) 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 67.50 742.10 Td (management strategies and vary from the expected amounts presented above as a result of changes in foreign exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 730.10 Td (rates. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.91 706.10 Td (o mitigate credit risk in derivative transactions, we enter into master netting arrangements that allow each counterparty in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td (the arrangements to net settle amounts of multiple and separate derivative transactions under certain conditions. ) Tj ET Q q 0 0 0 rg BT 516.62 694.10 Td (W) Tj ET Q q 0 0 0 rg BT 525.25 694.10 Td (e present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 682.10 Td (the fair value of derivative assets and liabilities within our condensed consolidated balance sheet on a gross basis even ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td (when derivative transactions are subject to master netting arrangements and may otherwise qualify for net presentation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td (Our derivative contracts do not contain any credit risk related contingent features and do not require collateral or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td (security to be furnished by us or the counterparties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td (Of) Tj ET Q q 0 0 0 rg BT 77.87 622.10 Td (fsetting of Financial ) Tj ET Q q 0 0 0 rg BT 160.36 622.10 Td (Assets/Liabilities under Master Netting ) Tj ET Q q 0 0 0 rg BT 319.78 622.10 Td (Agreements with Derivative Counterparties as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.05 622.10 Td (April2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 610.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.94 610.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.65 610.10 Td ( \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 472.60 110.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.50 472.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 472.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 472.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 472.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 472.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 472.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 472.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 472.60 55.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 472.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 472.60 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 472.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 472.60 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 74.50 423.60 110.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 184.50 423.60 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 189.50 423.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 423.60 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 423.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 423.60 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 423.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 423.60 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 423.60 55.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.50 423.60 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 423.60 50.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 423.60 5.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 499.50 423.60 50.00 -25.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 556.6 m 439.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439.5 556.6 m 444.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 556.6 m 494.5 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 189.5 472.6 m 249.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 472.6 m 314.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 472.6 m 379.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 472.6 m 439.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 472.6 m 494.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 499.5 472.6 m 549.5 472.6 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 388.45 588.05 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 405.70 579.05 Td (in the Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 397.35 570.05 Td (Consolidated Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 426.75 561.05 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 207.80 513.05 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 196.60 504.05 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 197.00 495.05 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 199.00 486.05 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 207.00 477.05 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 272.80 531.05 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 266.45 522.05 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 260.25 513.05 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 262.70 504.05 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 258.70 495.05 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 268.75 486.05 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 271.75 477.05 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.85 548.00 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 324.10 539.00 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 337.00 530.00 Td (Assets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.20 521.00 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 343.00 512.00 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 327.70 503.00 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 323.70 494.00 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 333.75 485.00 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 336.75 476.00 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 393.45 495.05 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 387.95 486.05 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 406.25 477.05 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 459.20 495.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 449.75 486.05 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.75 477.05 Td (Received) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 517.25 486.05 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 506.45 477.05 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 454.28 Td (As of April 2, 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 438.27 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 428.27 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.00 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.15 428.27 Td (3,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 428.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 428.27 Td (3,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.80 428.32 Td (\(1,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 428.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.00 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 428.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 428.27 Td (1,966) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 77.00 403.28 Td (As of October 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 388.27 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 378.27 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.65 378.27 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 378.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 378.27 Td (258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.30 378.32 Td (\(116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 378.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 378.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.00 378.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 378.27 Td (142) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 362.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 362.10 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.62 362.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.22 362.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.66 362.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.37 362.10 Td ( were related to derivative liabilities which are allowed to be net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 350.10 Td (settled against derivative assets in accordance with the master netting agreements.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 199.60 113.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.00 199.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 199.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 199.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 199.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 199.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 199.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 199.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 199.60 55.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 199.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 199.60 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 199.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 199.60 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.00 149.60 113.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 186.00 149.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 191.00 149.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 251.00 149.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 256.00 149.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 316.00 149.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.00 149.60 60.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 381.00 149.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 149.60 55.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.00 149.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.00 149.60 50.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 496.00 149.60 5.00 -23.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 501.00 149.60 50.00 -23.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 284.6 m 441 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 284.6 m 446 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 284.6 m 496 284.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 191 199.60000000000002 m 251 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256 199.60000000000002 m 316 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 199.60000000000002 m 381 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 199.60000000000002 m 441 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 199.60000000000002 m 496 199.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 501 199.60000000000002 m 551 199.60000000000002 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 389.95 316.05 Td (Gross Amounts Not Offset) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.20 307.05 Td (in the Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 398.85 298.05 Td (Consolidated Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 428.25 289.05 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 209.30 240.05 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 198.10 231.05 Td (Amounts of) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 198.50 222.05 Td (Recognized) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 200.50 213.05 Td (Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 201.20 204.05 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 274.30 258.05 Td (Gross) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 267.95 249.05 Td (Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 261.75 240.05 Td (Offset in the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 264.20 231.05 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 260.20 222.05 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 270.25 213.05 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 273.25 204.05 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.35 276.00 Td (Net Amounts) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.60 267.00 Td (of Derivative) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 331.20 258.00 Td (Liabilities) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 326.70 249.00 Td (Presented in) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 344.50 240.00 Td (the) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 329.20 231.00 Td (Condensed) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 325.20 222.00 Td (Consolidated) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 335.25 213.00 Td (Balance) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 338.25 204.00 Td (Sheets) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 394.95 222.05 Td (Financial) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 389.45 213.05 Td (Instruments) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 407.75 204.05 Td (\(1\)) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 460.70 222.05 Td (Cash) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 451.25 213.05 Td (Collateral) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 461.70 204.05 Td (Paid) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 518.75 213.05 Td (Net) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 507.95 204.05 Td (Amounts) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 181.28 Td (As of April 2, 2016:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 164.27 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 154.27 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.50 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.30 154.27 Td (\(1,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.15 154.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 154.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 154.32 Td (\(1,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 154.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.65 154.27 Td (1,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 154.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.50 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.80 154.32 Td (\(718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 154.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 75.50 131.28 Td (As of October 3, 2015:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 115.27 Td (Foreign exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.50 105.27 Td (contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.50 105.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.80 105.27 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.15 105.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.50 105.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.15 105.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 105.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.80 105.32 Td (\(239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 105.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 105.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 105.27 Td (116) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 105.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.15 105.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.50 105.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.80 105.32 Td (\(123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 105.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 89.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 81.48 89.10 Td (The balances at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.62 89.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.22 89.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.66 89.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.37 89.10 Td ( were related to derivative assets which are allowed to be net settled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 77.10 Td (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 53.10 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 124.74 53.10 Td ( ) Tj ET Q q 0 0 0 rg BT 126.68 53.10 Td (AND INT) Tj ET Q q 0 0 0 rg BT 167.89 53.10 Td (ANGIBLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.01 53.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.51 53.10 Td (ASSETS) 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 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 68.00 730.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.55 730.10 Td (six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.54 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.49 730.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.10 730.10 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 68.00 718.10 Td (review goodwill for potential impairment. ) Tj ET Q q 0 0 0 rg BT 238.33 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.97 718.10 Td (e will conduct our annual goodwill testing during the fourth fiscal quarter) Tj ET Q q 0 0 0 rg BT 540.51 718.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 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 390.13 694.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.84 694.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.07 694.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.68 694.10 Td ( are as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 642.60 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 642.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 642.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 642.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 642.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 642.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 612.60 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 612.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 612.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 612.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 612.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 612.60 65.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 642.6 m 413.5 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 642.6 m 482.5 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 642.6 m 551.5 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 642.6 m 413.5 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 642.6 m 482.5 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 642.6 m 551.5 642.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 612.6 m 413.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 612.6 m 482.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 612.6 m 551.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 612.6 m 413.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 598.6 m 413.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 596.6 m 413.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 612.6 m 482.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 598.6 m 482.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 596.6 m 482.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 612.6 m 551.5 612.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 598.6 m 551.5 598.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 596.6 m 551.5 596.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 645.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.90 662.83 Td (Specialty) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.70 654.83 Td (Lasersand) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.70 646.83 Td (Systems) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.45 662.83 Td (Commer) Tj ET Q q 0 0 0 rg BT 458.51 662.83 Td (cial) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 654.83 Td (Lasersand) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.90 646.83 Td (Components) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.75 646.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 632.27 Td (Balance as of October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 632.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 632.27 Td (95,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 632.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 632.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 632.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 632.27 Td (101,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 617.27 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 617.27 Td (1,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 617.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 617.27 Td (1,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 602.27 Td (Balance as of April 2,2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 602.27 Td (96,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 602.27 Td (6,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 602.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 602.27 Td (102,876) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 586.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td (Components of our amortizable intangible assets are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 509.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 509.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 509.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 509.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 509.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 509.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 509.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 509.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 509.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 509.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 509.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 509.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 479.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 479.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 479.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 479.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 479.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 479.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 479.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 479.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 479.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 479.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 479.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 479.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 449.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 449.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 449.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 449.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 449.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 449.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 449.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 449.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 449.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 449.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 449.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 449.60 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 218.5 538.6 m 270.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 538.6 m 274.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 538.6 m 326.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 538.6 m 330.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 538.6 m 382.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 538.6 m 438.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 538.6 m 442.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 538.6 m 494.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 538.6 m 498.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 538.6 m 550.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 509.6 m 270.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 538.6 m 326.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 509.6 m 326.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 509.6 m 382.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 509.6 m 438.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 538.6 m 494.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 509.6 m 494.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 538.6 m 550.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 509.6 m 550.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 509.6 m 270.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 509.6 m 326.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 509.6 m 382.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 509.6 m 438.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 509.6 m 494.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 509.6 m 550.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 449.6 m 270.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 449.6 m 326.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 449.6 m 382.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 449.6 m 438.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 449.6 m 494.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 449.6 m 550.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 449.6 m 270.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 435.6 m 270.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 433.6 m 270.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 449.6 m 326.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 435.6 m 326.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 433.6 m 326.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 449.6 m 382.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 435.6 m 382.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 433.6 m 382.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 449.6 m 438.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 435.6 m 438.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 433.6 m 438.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 449.6 m 494.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 435.6 m 494.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 433.6 m 494.5 433.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 449.6 m 550.5 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 435.6 m 550.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 433.6 m 550.5 433.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 541.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.85 542.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.05 542.83 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 512.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.05 529.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 243.68 529.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.20 521.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.95 513.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.30 521.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.10 513.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.00 513.83 Td (Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.05 529.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 411.68 529.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.20 521.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.95 513.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.30 521.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.10 513.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 513.83 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 500.17 Td (Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 499.27 Td (71,384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 499.27 Td (\(58,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 499.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 499.27 Td (12,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 499.27 Td (71,365) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 499.32 Td (\(55,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 499.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 499.27 Td (15,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 485.17 Td (Customer lists) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 484.27 Td (16,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 484.27 Td (\(10,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 484.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 484.27 Td (5,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 484.27 Td (16,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 484.32 Td (\(9,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 484.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 484.27 Td (6,438) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 470.17 Td (Trade name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 469.27 Td (393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.30 469.27 Td (\(353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 469.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 469.27 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 469.27 Td (399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 469.32 Td (\(349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 469.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 469.27 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 454.27 Td (In-process research& development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 454.27 Td (379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.65 454.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 454.27 Td (379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 454.27 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 454.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 454.27 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 439.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 439.27 Td (88,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 439.27 Td (\(69,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 439.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 439.27 Td (18,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 439.27 Td (88,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 439.32 Td (\(65,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 439.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 439.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 439.27 Td (22,776) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 423.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 411.10 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 68.00 387.10 Td (Amortization expense for intangible assets for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.88 387.10 Td (six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.88 387.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.83 387.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.44 387.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.32 387.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.93 387.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.48 387.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.38 387.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 375.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.89 375.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 169.55 375.10 Td (, which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.32 375.10 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.21 375.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.65 375.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.54 375.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 407.20 375.10 Td (, for amortization of existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 363.10 Td (technology) Tj ET Q q 0 0 0 rg BT 111.78 363.10 Td (. ) Tj ET Q q 0 0 0 rg BT 116.60 363.10 Td (The change in the accumulated amortization also includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.96 363.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.85 363.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.29 363.10 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.18 363.10 Td ( of foreign exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 351.10 Td (impact for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.59 351.10 Td (six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.58 351.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.53 351.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.14 351.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.03 351.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.64 351.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 377.30 351.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 327.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.95 327.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 327.10 Td (, estimated amortization expense for the remainder of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.02 327.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.02 327.10 Td (, the next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.45 327.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.00 327.10 Td ( succeeding fiscal years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 315.10 Td (all fiscal years thereafter are as follows \(in thousands\): ) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 275.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 275.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 245.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 245.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 215.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 215.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 185.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 185.60 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 468.5 275.6 m 550.5 275.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 275.6 m 550.5 275.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 170.60000000000002 m 550.5 170.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 170.60000000000002 m 550.5 170.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 156.60000000000002 m 550.5 156.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 154.60000000000002 m 550.5 154.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 278.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.65 295.83 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.10 287.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 279.83 Td (Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 265.27 Td (2016 \(remainder\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 265.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 265.27 Td (3,925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 250.27 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 250.27 Td (7,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 235.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 235.27 Td (4,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 220.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 220.27 Td (2,228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 205.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 205.27 Td (696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 190.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 190.27 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 175.27 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 175.27 Td (109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 160.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 160.27 Td (18,510) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 154.57 132.10 Td ( DET) Tj ET Q q 0 0 0 rg BT 176.88 132.10 Td (AILS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 108.10 Td (Inventories consist of the following \(in thousands\):) 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 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 427.85 739.73 Td (April 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 (Purchased parts and assemblies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 717.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 717.18 Td (54,339) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 717.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 717.17 Td (50,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 702.17 Td (Work-in-process) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 702.18 Td (70,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 702.17 Td (56,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 687.17 Td (Finished goods) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 687.18 Td (54,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 687.17 Td (50,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 672.17 Td (Total inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 672.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 672.18 Td (179,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 672.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 672.17 Td (156,614) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 656.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 644.00 Td (Prepaid expenses and other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 612.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 612.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 612.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 612.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 582.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 582.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 582.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 582.50 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 406.5 612.5 m 476.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 612.5 m 550.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 612.5 m 476.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 612.5 m 550.5 612.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 567.5 m 476.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 567.5 m 550.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 567.5 m 476.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 553.5 m 476.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 551.5 m 476.5 551.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 567.5 m 550.5 567.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 553.5 m 550.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 551.5 m 550.5 551.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 615.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 624.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 616.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 624.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 616.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 602.17 Td (Prepaid and refundable income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 602.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 602.18 Td (9,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 602.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 602.17 Td (8,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 587.17 Td (Other taxes receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 587.18 Td (7,177) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 587.17 Td (6,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 572.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 572.18 Td (17,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 572.17 Td (12,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 557.17 Td (Total prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 557.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 557.18 Td (34,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 557.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 557.17 Td (28,294) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 541.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 529.00 Td (Other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 497.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 497.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 497.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 497.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 467.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 467.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 467.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 467.50 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 406.5 497.5 m 476.5 497.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 497.5 m 550.5 497.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 497.5 m 476.5 497.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 497.5 m 550.5 497.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 452.5 m 476.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 452.5 m 550.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 452.5 m 476.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 438.5 m 476.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 436.5 m 476.5 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 452.5 m 550.5 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 438.5 m 550.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 436.5 m 550.5 436.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 500.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 509.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 501.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 509.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 501.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 487.17 Td (Assets related to deferred compensation arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 487.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 487.18 Td (23,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 487.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 487.17 Td (25,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 472.17 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 472.18 Td (64,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 472.17 Td (60,254) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 457.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 457.18 Td (6,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 457.17 Td (3,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 442.17 Td (Total other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 442.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 442.18 Td (93,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 442.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 442.17 Td (89,226) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 426.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 414.00 Td (For our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.22 414.00 Td ($850.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.11 414.00 Td ( debt financing commitment with Barclays \(See Note 9 "Short-term Borrowings"\), we paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.53 414.00 Td ($2.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 402.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 402.00 Td ( of debt issuance costs in the second quarter of fiscal 2016 and recorded it to other assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 378.00 Td (Other current liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 346.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 346.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 346.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 346.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 316.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 316.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 316.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 316.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 286.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 286.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 286.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 286.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 256.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 256.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 256.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 256.50 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 406.5 346.5 m 476.5 346.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 346.5 m 550.5 346.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 346.5 m 476.5 346.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 346.5 m 550.5 346.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 256.5 m 476.5 256.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 256.5 m 550.5 256.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 256.5 m 476.5 256.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 242.5 m 476.5 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 240.5 m 476.5 240.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 256.5 m 550.5 256.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 242.5 m 550.5 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 240.5 m 550.5 240.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 349.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 358.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 350.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 358.73 Td (October 3,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 350.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 336.17 Td (Accrued payroll and benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 336.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 336.18 Td (37,706) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 336.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 336.17 Td (35,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 321.17 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 321.18 Td (17,772) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 321.17 Td (16,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 306.17 Td (Warranty reserve) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 306.18 Td (14,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 306.17 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 291.17 Td (Accrued expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 291.18 Td (11,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 291.17 Td (10,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 276.17 Td (Other taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 276.18 Td (5,586) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 276.17 Td (4,888) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 261.17 Td (Customer deposits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 261.18 Td (1,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 261.17 Td (1,793) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 246.17 Td (Total other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 246.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 246.18 Td (89,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 246.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 246.17 Td (84,932) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 230.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 218.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 206.00 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 295.99 206.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.22 206.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.71 206.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.71 206.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.14 206.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.14 206.00 Td ( were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 194.00 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 149.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 149.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 149.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 149.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 119.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 119.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 119.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 119.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 89.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 89.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 89.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 89.50 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 406.5 170.5 m 476.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 170.5 m 480.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 170.5 m 550.5 170.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 149.5 m 476.5 149.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 149.5 m 550.5 149.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 149.5 m 476.5 149.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 149.5 m 550.5 149.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 89.5 m 476.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 89.5 m 550.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 89.5 m 476.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 75.5 m 476.5 75.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 73.5 m 476.5 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 89.5 m 550.5 89.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 75.5 m 550.5 75.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 73.5 m 550.5 73.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 173.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.40 174.73 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 152.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 161.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 153.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.85 161.73 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 153.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 139.17 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 139.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 139.18 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 139.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 139.17 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 124.17 Td (Additions related to current period sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 124.18 Td (10,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 124.17 Td (11,618) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 109.17 Td (Warranty costs incurred in the current period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.80 109.23 Td (\(10,693) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.65 109.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 109.22 Td (\(10,822) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 109.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 94.17 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 459.30 94.23 Td (\(55) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.65 94.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.80 94.22 Td (\(1,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 94.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 79.17 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 79.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 79.18 Td (14,972) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 79.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 79.17 Td (15,941) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 63.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 51.00 Td (Other long-term liabilities 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 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 667.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 667.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 667.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 667.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 637.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 637.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 637.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 637.50 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 406.5 637.5 m 476.5 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 637.5 m 550.5 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 637.5 m 476.5 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 623.5 m 476.5 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 621.5 m 476.5 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 637.5 m 550.5 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 623.5 m 550.5 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 621.5 m 550.5 621.5 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 427.85 739.73 Td (April 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 (Long-term taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 717.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 717.18 Td (7,823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 717.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 717.17 Td (7,651) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 702.17 Td (Deferred compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 702.18 Td (24,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 702.17 Td (26,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 687.17 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 687.18 Td (2,259) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 687.17 Td (2,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 672.17 Td (Deferred income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 672.18 Td (3,722) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 672.17 Td (3,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 657.17 Td (Asset retirement obligations liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 657.18 Td (2,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 657.17 Td (2,654) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 642.17 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 642.18 Td (7,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 642.17 Td (7,077) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 627.17 Td (Total other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 627.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 627.18 Td (49,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 627.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 627.17 Td (49,939) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 611.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 599.00 Td (9. SHOR) Tj ET Q q 0 0 0 rg BT 97.99 599.00 Td (T) Tj ET Q q 0 0 0 rg BT 103.74 599.00 Td (-TERM BORROWINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 587.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 575.00 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 575.00 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 422.80 575.00 Td (. ) Tj ET Q q 0 0 0 rg BT 427.62 575.00 Td (W) Tj ET Q q 0 0 0 rg BT 436.26 575.00 Td (e have a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.61 575.00 Td ($13.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.51 575.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 563.00 Td (of unsecured foreign lines of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.83 563.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.44 563.00 Td (. ) Tj ET Q q 0 0 0 rg BT 289.89 563.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.84 563.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.45 563.00 Td (, we had used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.38 563.00 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.27 563.00 Td ( of these available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 551.00 Td (foreign lines of credit as guarantees. ) Tj ET Q q 0 0 0 rg BT 215.26 551.00 Td (These 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 473.78 551.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.54 551.00 Td ( fiscal quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 539.00 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.83 539.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.83 539.00 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 312.39 539.00 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.29 539.00 Td ( unsecured revolving credit account. ) Tj ET Q q 0 0 0 rg BT 513.83 539.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 527.00 Td (agreement will expire on May 31, 2017. ) Tj ET Q q 0 0 0 rg BT 230.83 527.00 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 68.00 515.00 Td (worth with which we are currently in compliance. ) Tj ET Q q 0 0 0 rg BT 272.19 515.00 Td (W) Tj ET Q q 0 0 0 rg BT 280.83 515.00 Td (e have an outstanding balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.11 515.00 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 515.00 Td ( and have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 515.00 Td ($1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 503.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 503.00 Td ( for letters of credit against our domestic line of credit as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.54 503.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.14 503.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 479.00 Td (On March 16, 2016, we entered into a debt commitment letter with Barclays Bank PLC \("Barclays"\) and on ) Tj ET Q q 0 0 0 rg BT 501.61 479.00 Td (April 5, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 467.00 Td (entered into an amended and restated debt commitment letter with Barclays and both Bank of ) Tj ET Q q 0 0 0 rg BT 443.72 467.00 Td (America, N.A. and Merrill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 455.00 Td (L) Tj ET Q q 0 0 0 rg BT 73.56 455.00 Td (ynch, Pierce, Fenner & Smith Incorporated \(together) Tj ET Q q 0 0 0 rg BT 284.20 455.00 Td (, "BAML"\). Pursuant to the commitment letter) Tj ET Q q 0 0 0 rg BT 470.27 455.00 Td (, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 443.00 Td (Barclays and BAML) Tj ET Q q 0 0 0 rg BT 150.94 443.00 Td ( have committed to provide us with debt financing in an aggregate principal amount of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.79 443.00 Td ($850.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 431.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 431.00 Td ( to finance the acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 241.12 431.00 Td (The obligations of Barclays and BAML) Tj ET Q q 0 0 0 rg BT 399.88 431.00 Td ( under the commitment letter are subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 419.00 Td (to certain conditions, including the consummation of the acquisition in accordance with the terms and conditions of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 407.00 Td (definitive agreement and other customary closing obligations. For our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 407.00 Td ($850.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.04 407.00 Td ( debt financing commitment with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 395.00 Td (Barclays and BAML, we paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.19 395.00 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.08 395.00 Td ( of debt issuance costs in the second quarter of fiscal 2016 and recorded it to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 383.00 Td (other assets on our condensed consolidated balance sheets. ) Tj ET Q q 0 0 0 rg BT 305.25 383.00 Td (The debt issuance cost will be reclassified when there is an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 371.00 Td (outstanding debt.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 347.00 Td (10.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 347.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 69.50 347.00 Td (ST) Tj ET Q q 0 0 0 rg BT 81.55 347.00 Td (OCK-BASED COMPENSA) Tj ET Q q 0 0 0 rg BT 199.98 347.00 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 335.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 323.00 Td (Fair) Tj ET Q q 0 0 0 rg BT 88.14 323.00 Td ( ) Tj ET Q q 0 0 0 rg BT 90.46 323.00 Td (V) Tj ET Q q 0 0 0 rg BT 96.77 323.00 Td (alue of Stock Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 311.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 299.00 Td (W) Tj ET Q q 0 0 0 rg BT 78.64 299.00 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 520.78 299.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 287.00 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 52.00 275.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 263.00 Td (Determining Fair) Tj ET Q q 0 0 0 rg BT 144.52 263.00 Td ( ) Tj ET Q q 0 0 0 rg BT 146.84 263.00 Td (V) Tj ET Q q 0 0 0 rg BT 153.14 263.00 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 251.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 239.00 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 450.72 239.00 Td (three and six months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 227.00 Td (ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.88 227.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.83 227.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.43 227.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.32 227.00 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.93 227.00 Td (, respectively) Tj ET Q q 0 0 0 rg BT 274.59 227.00 Td (,were estimated using the following weighted-average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 215.00 Td (assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 155.50 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 155.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 155.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 155.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 155.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 155.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 155.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 155.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 155.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 125.50 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 125.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 125.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 125.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 125.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 125.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 125.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 125.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 125.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 95.50 210.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 95.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 95.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 95.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 95.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 95.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 95.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 95.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 95.50 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 189.5 m 344.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 189.5 m 348.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 189.5 m 408.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 189.5 m 412.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 189.5 m 472.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 189.5 m 476.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 189.5 m 536.5 189.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 176.5 m 344.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 176.5 m 348.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 176.5 m 408.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 176.5 m 472.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 176.5 m 476.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 176.5 m 536.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 176.5 m 344.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 155.5 m 344.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 176.5 m 348.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 176.5 m 408.5 176.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 155.5 m 408.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 155.5 m 472.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 155.5 m 536.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 155.5 m 344.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 155.5 m 408.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 155.5 m 472.5 155.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 155.5 m 536.5 155.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.05 193.73 Td (EmployeeStockPurchasePlan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.60 180.73 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.40 180.73 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.85 167.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.00 159.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.85 167.73 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.00 159.73 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.85 167.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.00 159.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.85 167.73 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.00 159.73 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 145.17 Td (Expected life in years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.50 145.18 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.50 145.17 Td (0.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.50 145.18 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.50 145.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 130.17 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.50 130.18 Td (26.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.00 130.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 130.17 Td (24.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 130.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.50 130.18 Td (27.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.00 130.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 130.17 Td (24.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 130.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 115.17 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.50 115.18 Td (0.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.00 115.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 115.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 115.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.50 115.18 Td (0.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.00 115.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 115.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 115.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 100.17 Td (Expected dividend yield) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.00 100.18 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.00 100.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 100.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 100.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.00 100.18 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.00 100.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 100.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 100.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 85.17 Td (Weighted average fair value per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 85.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.50 85.18 Td (12.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 85.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 85.17 Td (14.26) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.00 85.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.50 85.18 Td (12.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.00 85.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 85.17 Td (14.11) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 57.00 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.74 57.00 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.74 57.00 Td ( stock options granted during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.61 57.00 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.03 57.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.98 57.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.59 57.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.47 57.00 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.08 57.00 Td (.) Tj ET Q endstream endobj 39 0 obj <>] /Rotate 0 /Contents 40 0 R>> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 78.64 742.10 Td (e grant performance restricted stock units to of) Tj ET Q q 0 0 0 rg BT 265.33 742.10 Td (ficers and certain employees. ) Tj ET Q q 0 0 0 rg BT 384.26 742.10 Td (The performance restricted stock unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 730.10 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 70.00 718.10 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 415.82 718.10 Td (The final number of units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 706.10 Td (awarded, if any) Tj ET Q q 0 0 0 rg BT 131.26 706.10 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 70.00 694.10 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 70.00 682.10 Td (a maximum of twice the initial award units. ) Tj ET Q q 0 0 0 rg BT 246.72 682.10 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 70.00 670.10 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 70.50 619.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 619.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 619.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 619.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 619.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 591.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 591.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 284.50 591.60 100.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 591.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 591.60 100.00 -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 280.5 644.6 m 284.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 644.6 m 384.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 644.6 m 388.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 644.6 m 488.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 644.6 m 284.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 619.6 m 284.5 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 644.6 m 384.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 619.6 m 384.5 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 644.6 m 488.5 644.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 619.6 m 488.5 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 619.6 m 284.5 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 284.5 619.6 m 384.5 619.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 619.6 m 488.5 619.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.40 648.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.85 623.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.85 623.83 Td (April 4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 610.17 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.50 610.28 Td (1.20) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 610.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 610.17 Td (0.96) 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 73.00 596.17 Td (Volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 356.50 596.28 Td (27.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 374.00 596.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.15 596.17 Td (28.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 596.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 582.17 Td (Weighted average fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.00 582.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.50 582.28 Td (74.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 582.17 Td (70.57) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 554.10 Td (W) Tj ET Q q 0 0 0 rg BT 78.64 554.10 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 70.00 542.10 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 70.00 530.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 518.10 Td (Stock-Based Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 506.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 494.10 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 70.00 482.10 Td (consolidated statements of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.62 482.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.04 482.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.98 482.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.59 482.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.48 482.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.09 482.10 Td ( \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 470.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 428.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 428.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 428.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 428.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 428.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 428.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 428.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 428.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 400.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 400.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 400.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 400.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 400.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 400.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 400.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 400.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 372.60 210.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 372.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 372.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 372.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 372.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 408.50 372.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 372.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 372.60 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 447.6 m 340.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 447.6 m 344.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 447.6 m 404.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 447.6 m 468.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 447.6 m 532.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 447.6 m 340.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 428.6 m 340.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 447.6 m 344.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 447.6 m 404.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 428.6 m 404.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 447.6 m 468.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 428.6 m 468.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 447.6 m 532.5 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 428.6 m 532.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 428.6 m 340.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 428.6 m 404.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 428.6 m 468.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 428.6 m 532.5 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 372.6 m 340.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 372.6 m 404.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 372.6 m 468.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 372.6 m 532.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 372.6 m 340.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 359.6 m 340.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 357.6 m 340.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 372.6 m 404.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 359.6 m 404.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 357.6 m 404.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 372.6 m 468.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 359.6 m 468.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 357.6 m 468.5 357.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 372.6 m 532.5 372.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 359.6 m 532.5 359.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 472.5 357.6 m 532.5 357.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.60 451.68 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.40 451.68 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 287.85 432.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.85 432.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.85 432.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.85 432.83 Td (April 4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 419.17 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.00 419.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 419.28 Td (594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 419.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 419.17 Td (676) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.00 419.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.15 419.28 Td (1,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 419.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 419.17 Td (1,273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 405.17 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.65 405.28 Td (610) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 405.17 Td (556) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.15 405.28 Td (1,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 405.17 Td (886) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 391.17 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.15 391.28 Td (4,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 391.17 Td (3,550) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.15 391.28 Td (6,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 391.17 Td (7,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 377.17 Td (Income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.80 377.33 Td (\(1,511) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 336.65 377.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.80 377.22 Td (\(1,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 377.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.80 377.33 Td (\(1,862) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 464.65 377.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 377.22 Td (\(1,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 377.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.00 363.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 314.15 363.28 Td (3,876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 363.17 Td (3,479) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.00 363.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.15 363.28 Td (7,270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.00 363.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 363.17 Td (7,439) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 335.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.55 335.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.97 335.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.91 335.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.52 335.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.52 335.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.41 335.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.85 335.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.74 335.10 Td ( was capitalized into inventory for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 323.10 Td (all stock plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 323.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.10 323.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.54 323.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.43 323.10 Td ( was amortized to cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.06 323.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.95 323.10 Td ( remained in inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 311.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.61 311.10 Td (.During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.16 311.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.57 311.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.52 311.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.13 311.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.13 311.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.02 311.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.46 311.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.35 311.10 Td ( was capitalized into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 299.10 Td (inventory for all stock plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.20 299.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.09 299.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.53 299.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.42 299.10 Td ( was amortized to cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.04 299.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.94 299.10 Td ( remained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 287.10 Td (in inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.27 287.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.88 287.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 275.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 263.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.95 263.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.56 263.10 Td (, the total compensation cost related to unvested stock-based awards granted to employees under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 251.10 Td (Company) Tj ET Q q 0 0 0 rg BT 111.67 251.10 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 335.22 251.10 Td ($31.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.11 251.10 Td (, net of estimated forfeitures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.45 251.10 Td ($1.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 239.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 239.10 Td (. ) Tj ET Q q 0 0 0 rg BT 103.71 239.10 Td (This cost will be amortized on a straight-line basis over a weighted-average period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.74 239.10 Td (1.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.24 239.10 Td ( years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 227.10 Td (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 70.00 203.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.95 203.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.56 203.10 Td (, total compensation cost related to options to purchase common shares under the ESPP) Tj ET Q q 0 0 0 rg BT 485.12 203.10 Td ( but not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 191.10 Td (vested was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.36 191.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.25 191.10 Td (, which will be recognized over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.53 191.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.20 191.10 Td ( month of) Tj ET Q q 0 0 0 rg BT 418.91 191.10 Td (fering period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 179.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 167.10 Td (Stock ) Tj ET Q q 0 0 0 rg BT 95.84 167.10 Td (A) Tj ET Q q 0 0 0 rg BT 102.32 167.10 Td (wards ) Tj ET Q q 0 0 0 rg BT 130.38 167.10 Td (Activity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 155.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 143.10 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 505.97 143.10 Td (first six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 131.10 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.45 131.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.93 131.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.93 131.10 Td ( \(in thousands, except per share amounts\):) 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 70.50 748.50 265.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 748.50 102.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 748.50 4.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 748.50 103.00 -20.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 689.50 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 689.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 689.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 689.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 689.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 659.50 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 659.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 659.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 659.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 659.50 50.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 629.50 265.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 629.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 384.50 629.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 388.50 629.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 437.50 629.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 441.50 629.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 629.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 629.50 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 335.5 728.5 m 384.5 728.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 728.5 m 388.5 728.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 728.5 m 437.5 728.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.5 728.5 m 490.5 728.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 728.5 m 494.5 728.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 728.5 m 544.5 728.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 689.5 m 384.5 689.5 l s 0 0 0 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ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.00 701.73 Td (Number) Tj ET Q q 0 0 0 rg BT 369.30 701.73 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.00 693.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 364.30 693.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.25 717.73 Td (W) Tj ET Q q 0 0 0 rg BT 403.81 717.73 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.55 709.73 Td (A) Tj ET Q q 0 0 0 rg BT 403.73 709.73 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.05 701.73 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.65 693.73 Td (Fair) Tj ET Q q 0 0 0 rg BT 409.17 693.73 Td ( ) Tj ET Q q 0 0 0 rg BT 411.02 693.73 Td (V) Tj ET Q q 0 0 0 rg BT 416.06 693.73 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.00 701.73 Td (Number) Tj ET Q q 0 0 0 rg BT 475.30 701.73 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.00 693.73 Td (Shar) Tj ET Q q 0 0 0 rg BT 470.30 693.73 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.75 717.73 Td (Weighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.05 709.73 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.55 701.73 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.15 693.73 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 679.17 Td (Nonvested stock units at October 3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 679.17 Td (394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 679.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 679.17 Td (65.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 679.17 Td (199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.00 679.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 679.17 Td (67.09) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 664.17 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 664.17 Td (269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 664.17 Td (64.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 664.17 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 664.17 Td (74.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 649.17 Td (V) Tj ET Q q 0 0 0 rg BT 79.11 649.17 Td (ested) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 99.66 653.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 649.22 Td (\(190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 649.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 649.17 Td (61.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 649.22 Td (\(57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 649.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 649.17 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 634.17 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 634.22 Td (\(11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 634.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 634.17 Td (63.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.30 634.22 Td (\(38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.65 634.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 634.17 Td (48.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 619.17 Td (Nonvested stock at April 2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 619.17 Td (462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 619.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 619.17 Td (66.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 619.17 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.00 619.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 619.17 Td (74.10) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 591.00 Td (__________________________________________) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 572.40 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 88.00 572.40 Td (Service-based restricted stock vested during each fiscal year) Tj ET Q q 0 0 0 rg BT 280.14 572.40 Td (. Performance-based awards and units included at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 440.97 572.40 Td (100%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 459.64 572.40 Td ( of tar) Tj ET Q q 0 0 0 rg BT 478.59 572.40 Td (get goal; under the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 562.80 Td (terms of the awards, the recipient may earn between ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 238.82 562.80 Td (0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 249.48 562.80 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 265.03 562.80 Td (200%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 283.70 562.80 Td ( of the award.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (1) Tj ET Q q 0 0 0 rg BT 54.45 742.25 Td (1.) Tj ET Q BT /F2 3.00 Tf ET q 0 0 0 rg BT 61.95 742.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.70 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.20 742.25 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 150.15 742.25 Td (AND CONTINGENCIES) 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 68.00 713.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 713.25 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 510.05 713.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 701.25 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 473.92 701.25 Td (. On May 14, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 689.25 Td (IMRA) Tj ET Q q 0 0 0 rg BT 93.56 689.25 Td ( ) Tj ET Q q 0 0 0 rg BT 95.51 689.25 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 68.00 677.25 Td (Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 153.44 677.25 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 246.47 677.25 Td ( ) Tj ET Q q 0 0 0 rg BT 248.42 677.25 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 534.55 677.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 665.25 Td (complaint alleges that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 296.54 665.25 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 400.05 665.25 Td ( Patent No. 754,103, entitled Method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 653.25 Td (For Controlling Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 326.84 653.25 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 478.30 653.25 Td (The patent, now ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 641.25 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 425.80 641.25 Td (The complaint seeks unspecified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 629.25 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 68.00 617.25 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 68.00 605.25 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 68.00 593.25 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 581.25 Td (to appeal this decision to the Federal Court of Justice, the highest civil jurisdiction court in Germany) Tj ET Q q 0 0 0 rg BT 469.76 581.25 Td (. ) Tj ET Q q 0 0 0 rg BT 474.58 581.25 Td (The infringement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 569.25 Td (action is currently stayed pending the outcome of such appeal. Management has made an accrual with respect to this matter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 557.25 Td (and has determined, based on its current knowledge, that the amount or range of reasonably possible losses in excess of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 545.25 Td (amounts already accrued is not reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 282.93 545.25 Td (Although we do not expect that such legal claims and litigation will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 533.25 Td (ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 215.25 533.25 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 68.00 521.25 Td (flows, an adverse result in one or more matters could negatively af) Tj ET Q q 0 0 0 rg BT 334.40 521.25 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 527.95 521.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 504.25 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 317.20 504.25 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 68.00 492.25 Td (sell. From time to time our duty calculations and payments are audited by government agencies. During the second quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 480.25 Td (of fiscal 2016, we concluded an audit in South Korea for customs duties and value added tax for the period March 2009 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 468.25 Td (March 2014. ) Tj ET Q q 0 0 0 rg BT 121.42 468.25 Td (W) Tj ET Q q 0 0 0 rg BT 130.06 468.25 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 468.25 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 468.25 Td ( related to this matter and have no remaining accrual at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.46 468.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.07 468.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 444.25 Td (On March 16, 2016, we entered into a debt commitment letter with Barclays Bank PLC \("Barclays"\) and on ) Tj ET Q q 0 0 0 rg BT 501.61 444.25 Td (April 5, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 432.25 Td (entered into an amended and restated debt commitment letter with Barclays and both Bank of ) Tj ET Q q 0 0 0 rg BT 443.72 432.25 Td (America, N.A. and Merrill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 420.25 Td (L) Tj ET Q q 0 0 0 rg BT 73.56 420.25 Td (ynch, Pierce, Fenner & Smith Incorporated \(together) Tj ET Q q 0 0 0 rg BT 284.20 420.25 Td (, "BAML"\). Pursuant to the commitment letter) Tj ET Q q 0 0 0 rg BT 470.27 420.25 Td (, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 408.25 Td (Barclays and BAML) Tj ET Q q 0 0 0 rg BT 150.94 408.25 Td ( have committed to provide us with debt financing in an aggregate principal amount of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.79 408.25 Td ($850.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 396.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 396.25 Td ( to finance the acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 241.12 396.25 Td (The obligations of Barclays and BAML) Tj ET Q q 0 0 0 rg BT 399.88 396.25 Td ( under the commitment letter are subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 384.25 Td (to certain conditions, including the consummation of the acquisition in accordance with the terms and conditions of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 372.25 Td (definitive agreement and other customary closing obligations. For our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 372.25 Td ($850.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.04 372.25 Td ( debt financing commitment with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 360.25 Td (Barclays and BAML, we paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.19 360.25 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.08 360.25 Td ( of debt issuance costs in the second quarter of fiscal 2016 and recorded it to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 348.25 Td (other assets on our condensed consolidated balance sheets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 324.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 324.25 Td (e have an agreement with a financial advisor) Tj ET Q q 0 0 0 rg BT 254.77 324.25 Td (, Barclays, in relation to the pending acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 487.59 324.25 Td (W) Tj ET Q q 0 0 0 rg BT 496.23 324.25 Td (e have agreed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 312.25 Td (pay Barclays a fee of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.16 312.25 Td ($10.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.05 312.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.05 312.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.94 312.25 Td ( of which was paid upon delivery of the fairness opinion in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 300.25 Td (the second quarter of fiscal 2016, and was recorded in the selling, general and administrative line of the condensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 288.25 Td (consolidated statements of operations, and the remaining portion of which will be paid upon, and subject to, consummation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 276.25 Td (of the acquisition. ) Tj ET Q q 0 0 0 rg BT 142.25 276.25 Td (W) Tj ET Q q 0 0 0 rg BT 150.89 276.25 Td (e have also agreed to pay to Barclays approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.19 276.25 Td ($17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.09 276.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.52 276.25 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.42 276.25 Td ( for underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 264.25 Td (and upfront fees, respectively) Tj ET Q q 0 0 0 rg BT 185.64 264.25 Td (, upon the close of the financing. In addition, the acquisition agreement contains certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 252.25 Td (termination rights for Coherent and further provides that we may be required to pay a termination fee of $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.19 252.25 Td (65.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.08 252.25 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 240.25 Td (Rofin and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.22 240.25 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.11 240.25 Td ( to Barclays.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 216.25 Td (12. ST) Tj ET Q q 0 0 0 rg BT 77.05 216.25 Td (OCK REPURCHASE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 192.25 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 68.00 180.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 180.25 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 68.00 168.25 Td (repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.34 168.25 Td (300,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.84 168.25 Td ( shares of outstanding common stock at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.48 168.25 Td ($57.55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.98 168.25 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 156.25 Td ($17.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 156.25 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 487.04 156.25 Td (133,673) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.54 156.25 Td ( shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 144.25 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 328.76 144.25 Td ($57.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.26 144.25 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.83 144.25 Td ($7.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.72 144.25 Td (, completing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 132.25 Td (the repurchase program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 108.25 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 533.41 108.25 Td ($25.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 96.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 96.25 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 84.25 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.50 84.25 Td (430,675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 84.25 Td ( shares of outstanding common stock under this plan at an average price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 72.25 Td ($58.05) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 72.25 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.07 72.25 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.96 72.25 Td (. ) 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (On ) Tj ET Q q 0 0 0 rg BT 82.17 742.10 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 530.65 742.10 Td ($25.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.89 730.10 Td ( of our outstanding common stock from time to time through ) Tj ET Q q 0 0 0 rg BT 342.14 730.10 Td (August31, 2016. During the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (2015, we repurchased and retired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.50 718.10 Td (437,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 718.10 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 68.00 706.10 Td ($57.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 706.10 Td ( per share for a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.07 706.10 Td ($25.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.96 706.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (13. EARNINGS PER SHARE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 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 67.50 646.10 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 67.50 634.10 Td (shares outstanding during the period increased by the ef) Tj ET Q q 0 0 0 rg BT 290.59 634.10 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 67.50 622.10 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 67.50 610.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td (The following table presents information necessary to calculate basic and diluted earnings per share \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td (per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 541.60 190.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 541.60 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 541.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 541.60 65.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 541.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 541.60 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 541.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 541.60 67.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 502.60 190.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 502.60 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 502.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 502.60 65.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 502.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 502.60 66.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 502.60 4.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 502.60 67.00 -24.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 463.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 463.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 463.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 463.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 463.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 463.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 463.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 463.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 433.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.00 433.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.00 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 433.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.00 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 433.60 66.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 433.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 433.60 67.00 -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 258 562.6 m 324 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 562.6 m 328 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 562.6 m 393 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 562.6 m 463 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 562.6 m 467 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 562.6 m 534 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 562.6 m 324 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 541.6 m 324 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 562.6 m 393 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 541.6 m 393 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 541.6 m 463 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 541.6 m 534 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 541.6 m 324 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 541.6 m 393 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 541.6 m 463 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 541.6 m 534 541.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 502.6 m 324 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 502.6 m 393 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 502.6 m 463 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 502.6 m 534 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 502.6 m 324 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 479.6 m 324 479.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 477.6 m 324 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 479.6 m 393 479.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 477.6 m 393 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 502.6 m 463 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 479.6 m 463 479.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 477.6 m 463 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 502.6 m 534 502.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 479.6 m 534 479.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 477.6 m 534 477.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 449.6 m 324 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258 447.6 m 324 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 449.6 m 393 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 447.6 m 393 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 449.6 m 463 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 447.6 m 463 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 449.6 m 534 449.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 447.6 m 534 447.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 565.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.60 566.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 566.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 544.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.35 553.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.50 545.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.85 553.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.00 545.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.35 553.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.50 545.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.85 553.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.00 545.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 522.27 Td (Weighted average shares outstanding basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.65 522.28 Td (24,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 522.27 Td (24,709) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.65 522.28 Td (24,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 522.27 Td (24,823) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 507.27 Td (Dilutive effect of employee stock awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.15 507.28 Td (225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 507.27 Td (182) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.15 507.28 Td (233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 507.27 Td (219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 493.17 Td (Weighted average shares outstanding) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 483.17 Td (diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.65 483.28 Td (24,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 483.27 Td (24,891) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.65 483.28 Td (24,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 483.27 Td (25,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 453.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.50 453.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.65 453.28 Td (17,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 453.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 453.27 Td (18,413) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 453.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 431.65 453.28 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 453.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 453.27 Td (35,843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 423.27 Td (Net income per basic share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.50 423.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.65 423.28 Td (0.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 423.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 423.27 Td (0.75) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 423.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.65 423.28 Td (1.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 423.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 423.27 Td (1.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 408.27 Td (Net income per diluted share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 260.50 408.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.65 408.28 Td (0.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 408.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 408.27 Td (0.74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.50 408.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.65 408.28 Td (1.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 408.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 408.27 Td (1.43) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 380.10 Td (A) Tj ET Q q 0 0 0 rg BT 74.17 380.10 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.77 380.10 Td (7,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.27 380.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.71 380.10 Td (9,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.21 380.10 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 540.42 380.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 368.10 Td (and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.38 368.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.99 368.10 Td ( as their ef) Tj ET Q q 0 0 0 rg BT 251.73 368.10 Td (fect was anti-dilutive. ) Tj ET Q q 0 0 0 rg BT 340.60 368.10 Td (A) Tj ET Q q 0 0 0 rg BT 347.27 368.10 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.87 368.10 Td (1,333) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.37 368.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.81 368.10 Td (41,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.31 368.10 Td ( potentially dilutive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 356.10 Td (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 354.88 356.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.30 356.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 356.10 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.86 356.10 Td ( as their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 344.10 Td (ef) Tj ET Q q 0 0 0 rg BT 75.09 344.10 Td (fect was anti-dilutive. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 332.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 320.10 Td (14.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 320.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 320.10 Td (OTHER INCOME \(EXPENSE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 308.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 296.10 Td (Other income \(expense\) is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 251.60 186.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 251.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 251.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 251.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 251.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 251.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 251.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 251.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 211.60 186.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 254.50 211.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 324.50 211.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 211.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 398.50 211.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 211.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 472.50 211.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 211.60 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 254.5 272.6 m 324.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 272.6 m 328.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 272.6 m 398.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 272.6 m 472.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 272.6 m 546.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 251.60000000000002 m 324.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 251.60000000000002 m 398.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 272.6 m 472.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 251.60000000000002 m 472.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 272.6 m 546.5 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 251.60000000000002 m 546.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 251.60000000000002 m 324.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 251.60000000000002 m 398.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 251.60000000000002 m 472.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 251.60000000000002 m 546.5 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 196.60000000000002 m 324.5 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 196.60000000000002 m 398.5 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 196.60000000000002 m 472.5 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 196.60000000000002 m 546.5 196.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 182.60000000000002 m 324.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 254.5 180.60000000000002 m 324.5 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 182.60000000000002 m 398.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 180.60000000000002 m 398.5 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 182.60000000000002 m 472.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402.5 180.60000000000002 m 472.5 180.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 182.60000000000002 m 546.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 180.60000000000002 m 546.5 180.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 275.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.60 276.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 442.40 276.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 254.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.85 263.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.00 255.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.85 263.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.00 255.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.85 263.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.00 255.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.85 263.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.00 255.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 241.27 Td (Foreign exchange gain \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.00 241.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.30 241.28 Td (\(198) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.65 241.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 241.27 Td (1,080) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.00 241.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.80 241.33 Td (\(1,520) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 241.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.30 241.32 Td (\(81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 241.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 226.27 Td (Gain \(loss\) on deferred compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 216.27 Td (investments, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.80 216.28 Td (\(1,877) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.65 216.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 216.27 Td (671) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.80 216.33 Td (\(1,002) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 216.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 216.27 Td (1,055) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 201.27 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.65 201.28 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 201.27 Td (92) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 201.28 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 201.27 Td (99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 186.27 Td (Other - net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.00 186.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 294.80 186.28 Td (\(2,013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.65 186.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.00 186.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 186.27 Td (1,843) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 405.00 186.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.80 186.33 Td (\(2,460) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 186.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.00 186.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 186.27 Td (1,073) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (15.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.00 158.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 158.10 Td (INCOME) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.72 158.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.22 158.10 Td (T) Tj ET Q q 0 0 0 rg BT 118.15 158.10 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 134.10 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 502.10 134.10 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 122.10 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 494.63 122.10 Td (fective tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 110.10 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.88 110.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.30 110.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.24 110.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.85 110.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.28 110.10 Td (26.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.11 110.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.55 110.10 Td (25.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.38 110.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 410.04 110.10 Td (.Our ef) Tj ET Q q 0 0 0 rg BT 440.68 110.10 Td (fective tax rates for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.35 110.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 98.10 Td (and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.93 98.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.88 98.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.49 98.10 Td ( were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.43 98.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.26 98.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 388.76 105.03 66.93 -9.09 re f /GS0 gs q 0 0 0 rg BT 388.76 98.10 Td (primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.69 98.10 Td (dif) Tj ET Q q 0 0 0 rg BT 466.62 98.10 Td (ferences related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 86.10 Td (benefit of income subject to foreign tax rates that are lower than U.S. tax rates including the Singapore tax exemption, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 74.10 Td (benefit of foreign tax credits and the benefit of federal research and development tax credits including renewal of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 62.10 Td (federal research and development tax credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 312.16 62.10 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 433.60 62.10 Td (fset by deemed dividend ) 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 (inclusions under the Subpart F tax rules, stock-based compensation not deductible for tax purposes and limitations on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (deductibility of compensation under IRC Section 162\(m\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (Our ef) Tj ET Q q 0 0 0 rg BT 93.64 706.10 Td (fective tax rates for the three and six months ended ) Tj ET Q q 0 0 0 rg BT 299.68 706.10 Td (April 4, 2015 were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.72 706.10 Td (23.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.55 706.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.99 706.10 Td (24.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.82 706.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 501.48 706.10 Td (. Our ef) Tj ET Q q 0 0 0 rg BT 532.12 706.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (tax rates for the three and six months ended ) Tj ET Q q 0 0 0 rg BT 244.34 694.10 Td (April 4, 2015 were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.89 694.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.72 694.10 Td ( primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (dif) Tj ET Q q 0 0 0 rg BT 78.93 682.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. statutory tax rates including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the benefit of the federal research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (development tax credits including renewal of the federal research and development tax credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 510.14 658.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 163.06 646.10 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 68.00 634.10 Td (deductible for tax purposes and limitations on the deductibility of compensation under IRC Section 162\(m\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 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 68.00 598.10 Td (involves judgment. ) Tj ET Q q 0 0 0 rg BT 146.98 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 155.62 598.10 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 68.00 586.10 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 68.00 574.10 Td (in each jurisdiction. ) Tj ET Q q 0 0 0 rg BT 149.46 574.10 Td (The estimates used could dif) Tj ET Q q 0 0 0 rg BT 263.70 574.10 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 68.00 562.10 Td (results in future periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 538.10 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 68.00 526.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 359.51 526.10 Td (1 are closed. In our major foreign jurisdictions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td (and our major state jurisdictions, the years prior to 2006 and 201) Tj ET Q q 0 0 0 rg BT 326.46 514.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 384.12 514.10 Td (, are closed to examination. Earlier years in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 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 68.00 490.10 Td (years. In March 2016, the Internal Revenue Service \(IRS\) issued an audit notice and Information Documentation Requests ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (\(IDRs\) for fiscal year 2013. ) Tj ET Q q 0 0 0 rg BT 181.12 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 189.75 478.10 Td (e have responded to the IDRs and the IRS field work will begin soon. In December 201) Tj ET Q q 0 0 0 rg BT 539.58 478.10 Td (1 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td (January 2012, three of our German subsidiaries received notices of tax audits for the fiscal years 2006 through 2010. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.10 Td (fiscal year 2013, we received a preliminary assessment for two of the German subsidiaries and the amount is immaterial. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (In September 2015, the German tax authorities issued preliminary tax findings for Coherent GmbH for the years 2006 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (2010 and Coherent management met with the German tax authorities in December 2015 to discuss the preliminary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (assessments. Coherent Management anticipates that the German tax authorities will issue the final audit assessment in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.10 Td (third quarter of fiscal 2016. In July 2015 and March 2016, Coherent Kaiserslautern GmbH \(formerly Lumera Laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.10 Td (GmbH\) received tax audit notices for the years 2010 to 2014. ) Tj ET Q q 0 0 0 rg BT 315.52 394.10 Td (The audit began in ) Tj ET Q q 0 0 0 rg BT 392.17 394.10 Td (August 2015. ) Tj ET Q q 0 0 0 rg BT 448.38 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 457.02 394.10 Td (e acquired the shares of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (Lumera Laser GmbH in December 2012 and we should not have responsibility for any assessments related to the pre-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (acquisition period. In March 2016, Coherent Japan KK received a tax audit notice for the years 2013 to 2015. ) Tj ET Q q 0 0 0 rg BT 508.24 370.10 Td (The audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (will begin in July 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 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 68.00 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 322.10 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 68.00 310.10 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 68.00 286.10 Td (The Consolidated ) Tj ET Q q 0 0 0 rg BT 140.77 286.10 Td (Appropriations ) Tj ET Q q 0 0 0 rg BT 203.26 286.10 Td (Act of 2016 \(the ) Tj ET Q q 0 0 0 rg BT 275.47 286.10 Td (Act\), was enacted on December 18, 2015. Under the ) Tj ET Q q 0 0 0 rg BT 491.50 286.10 Td (Act, the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 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 68.00 262.10 Td (through December 31, 2015 and the credit was made permanent. ) Tj ET Q q 0 0 0 rg BT 328.84 262.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 354.47 262.10 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 68.00 250.10 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 377.06 250.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 426.40 250.10 Td (, prior year research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (development tax credits of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.11 238.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.00 238.10 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 68.00 226.10 Td (quarter of fiscal 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 202.10 Td (Coherent Korea received approval for an additional High-T) Tj ET Q q 0 0 0 rg BT 305.26 202.10 Td (ech tax exemption in ) Tj ET Q q 0 0 0 rg BT 390.79 202.10 Td (April 2016 from the Korean authorities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (and must make a capital contribution for the exemption to be ef) Tj ET Q q 0 0 0 rg BT 321.91 190.10 Td (fective. ) Tj ET Q q 0 0 0 rg BT 353.93 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.57 190.10 Td (e anticipate making a capital contribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 178.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.26 178.10 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.15 178.10 Td ( by the end of fiscal year 2016. ) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (16. SEGMENT) Tj ET Q q 0 0 0 rg BT 117.33 742.25 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 167.97 742.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 730.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 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 68.00 706.25 Td (total income from operations to net income \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 649.75 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 649.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 649.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 649.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 649.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 649.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 649.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 649.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 619.75 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 619.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 619.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 619.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 619.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 619.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 619.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 619.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 589.75 170.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 589.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 589.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 589.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 589.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 589.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 589.75 4.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 589.75 75.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 561.75 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 561.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 561.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 561.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 561.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 561.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 561.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 561.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 531.75 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 531.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 531.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 531.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 531.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 531.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 531.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 531.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 501.75 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 501.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 501.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 501.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 501.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 501.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 501.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 501.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 471.75 170.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 238.50 471.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 313.50 471.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 471.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 471.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 471.75 75.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 471.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 471.75 75.00 -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 238.5 670.75 m 313.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 670.75 m 317.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 670.75 m 392.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 670.75 m 471.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471.5 670.75 m 475.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 670.75 m 550.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 670.75 m 313.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 649.75 m 313.5 649.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313.5 670.75 m 317.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 670.75 m 392.5 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 649.75 m 392.5 649.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 649.75 m 471.5 649.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 649.75 m 550.5 649.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 604.75 m 313.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 604.75 m 392.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 604.75 m 471.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 604.75 m 550.5 604.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 590.75 m 313.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 588.75 m 313.5 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 590.75 m 392.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 588.75 m 392.5 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 590.75 m 471.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 588.75 m 471.5 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 590.75 m 550.5 590.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 588.75 m 550.5 588.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 516.75 m 313.5 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 516.75 m 392.5 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 516.75 m 471.5 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 516.75 m 550.5 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 486.75 m 313.5 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 486.75 m 392.5 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 486.75 m 471.5 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 486.75 m 550.5 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 456.75 m 313.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 456.75 m 392.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 456.75 m 471.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 456.75 m 550.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 456.75 m 313.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 442.75 m 313.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 238.5 440.75 m 313.5 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 456.75 m 392.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 442.75 m 392.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 440.75 m 392.5 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 456.75 m 471.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 442.75 m 471.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 440.75 m 471.5 440.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 456.75 m 550.5 456.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 442.75 m 550.5 442.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 440.75 m 550.5 440.75 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 673.47 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.60 674.98 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.40 674.98 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 71.00 653.98 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.35 661.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.50 653.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.35 661.98 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.50 653.98 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.35 661.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.50 653.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.35 661.98 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.50 653.98 Td (2015) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 71 638.0833984375 m 110.1552734375 638.0833984375 l s q 0 0 0 rg BT 71.00 639.42 Td (Net sales:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 624.42 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 624.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 624.43 Td (143,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 624.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 624.42 Td (140,016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 624.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.15 624.43 Td (279,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 624.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 624.42 Td (285,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 609.42 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 609.43 Td (56,529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 609.42 Td (63,705) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.15 609.43 Td (110,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 609.42 Td (119,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 594.42 Td (Total net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 594.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 277.15 594.43 Td (199,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 594.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 594.42 Td (203,721) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 594.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.15 594.43 Td (390,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 594.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 594.42 Td (404,336) 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 71 565.0833984375 m 208.724609375 565.0833984375 l s q 0 0 0 rg BT 71.00 566.42 Td (Income\(expense\) from operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 551.42 Td (Specialty Laser Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 551.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 551.43 Td (37,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 551.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 551.42 Td (32,078) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 551.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 551.43 Td (73,430) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 551.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 551.42 Td (66,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 536.42 Td (Commercial Lasers and Components) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.15 536.43 Td (1,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 536.42 Td (2,279) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 536.43 Td (3,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 536.42 Td (2,982) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 521.42 Td (Corporate and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 278.80 521.43 Td (\(13,215) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.65 521.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.80 521.47 Td (\(12,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 521.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.80 521.48 Td (\(23,542) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.65 521.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 521.47 Td (\(23,173) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 521.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 506.42 Td (Total income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 506.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 506.43 Td (26,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 506.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 506.42 Td (22,132) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 506.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 506.43 Td (53,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 506.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 506.42 Td (46,441) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 491.87 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 283.80 491.43 Td (\(1,780) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.65 491.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 491.42 Td (1,990) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.80 491.48 Td (\(2,002) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.65 491.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 491.42 Td (1,305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 476.87 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 476.98 Td (24,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 476.87 Td (24,122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 476.98 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 476.87 Td (47,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.00 461.87 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.15 461.43 Td (6,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 461.42 Td (5,709) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 461.43 Td (13,218) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 461.42 Td (11,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 446.87 Td (Net Income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 241.00 446.98 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.15 446.98 Td (17,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.00 446.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 446.87 Td (18,413) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 446.98 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 446.98 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 446.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 446.87 Td (35,843) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 418.25 Td (Major) Tj ET Q q 0 0 0 rg BT 95.03 418.25 Td ( Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 394.25 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.51 394.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.95 394.25 Td ( major customer during the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.13 394.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.73 394.25 Td ( who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.15 394.25 Td (17.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.98 394.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.42 394.25 Td (17.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.25 394.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 382.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 382.25 Td (, of consolidated revenue. ) Tj ET Q q 0 0 0 rg BT 221.00 382.25 Td (This same customer accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.67 382.25 Td (17.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 382.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.94 382.25 Td (18.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.77 382.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 484.43 382.25 Td (, of consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.25 Td (revenue for the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.39 370.25 Td (April4, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.00 370.25 Td (. ) Tj ET Q q 0 0 0 rg BT 300.82 370.25 Td (W) Tj ET Q q 0 0 0 rg BT 309.46 370.25 Td (e had another major customer during the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.61 358.25 Td ( who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.02 358.25 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.85 358.25 Td ( of consolidated revenue. ) Tj ET Q q 0 0 0 rg BT 329.69 358.25 Td (These customers purchased primarily from our SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 346.25 Td (segment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 317.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 317.25 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.51 317.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.95 317.25 Td ( major customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.35 317.25 Td (19.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.18 317.25 Td ( of accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.74 317.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.35 317.25 Td (. ) Tj ET Q q 0 0 0 rg BT 447.17 317.25 Td (W) Tj ET Q q 0 0 0 rg BT 455.80 317.25 Td (e had another major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 305.25 Td (customer who accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.07 305.25 Td (15.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.90 305.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.34 305.25 Td (21.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.17 305.25 Td ( of accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.73 305.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.34 305.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.77 305.25 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.48 305.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 549.14 305.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 293.25 Td (Both customers purchased primarily from our SLS segment.) 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 /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (ITEM 2. MANAGEMENT'S DISCUSSION ) Tj ET Q q 0 0 0 rg BT 238.64 742.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 262.26 742.25 Td (ANAL) Tj ET Q q 0 0 0 rg BT 289.67 742.25 Td (YSIS OF) Tj ET Q q 0 0 0 rg BT 327.92 742.25 Td ( FINANCIAL) Tj ET Q q 0 0 0 rg BT 386.54 742.25 Td ( CONDITION ) Tj ET Q q 0 0 0 rg BT 449.89 742.25 Td (AND RESUL) Tj ET Q q 0 0 0 rg BT 506.48 742.25 Td (TS OF) Tj ET Q q 0 0 0 rg BT 534.73 742.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 730.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 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 50 704.68505859375 m 159.83154296875 704.68505859375 l s q 0 0 0 rg BT 50.00 706.25 Td (COMP) Tj ET Q q 0 0 0 rg BT 79.80 706.25 Td (ANY) Tj ET Q q 0 0 0 rg BT 101.10 706.25 Td ( OVER) Tj ET Q q 0 0 0 rg BT 132.14 706.25 Td (VIEW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (BUSINESS BACKGROUND) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 658.25 Td (e are one of the world) Tj ET Q q 0 0 0 rg BT 148.88 658.25 Td (s leading providers of lasers and laser) Tj ET Q q 0 0 0 rg BT 299.18 658.25 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 50.00 646.25 Td (industrial applications. ) Tj ET Q q 0 0 0 rg BT 143.41 646.25 Td (W) Tj ET Q q 0 0 0 rg BT 152.05 646.25 Td (e design, manufacture, service and market lasers and related accessories for a diverse group of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (customers. Since inception in 1966, we have grown through internal expansion and through strategic acquisitions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (complementary businesses, technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 297.61 622.25 Td (, manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 462.38 622.25 Td (ferings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 598.25 Td (e are or) Tj ET Q q 0 0 0 rg BT 88.43 598.25 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 50.00 586.25 Td (\(CLC\). ) Tj ET Q q 0 0 0 rg BT 89.80 586.25 Td (This segmentation reflects the go-to-market strategies for various products and markets. ) Tj ET Q q 0 0 0 rg BT 443.96 586.25 Td (While both segments deliver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (cost-ef) Tj ET Q q 0 0 0 rg BT 77.03 574.25 Td (fective photonics solutions, SLS develops and manufactures configurable, advanced performance products lar) Tj ET Q q 0 0 0 rg BT 516.43 574.25 Td (gely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 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 50.00 550.25 Td (components and instrumentation markets. ) Tj ET Q q 0 0 0 rg BT 219.51 550.25 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 50.00 538.25 Td (performed at the customer site by factory trained field service engineers. CLC focuses on higher volume products that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 526.25 Td (fered in set configurations. ) Tj ET Q q 0 0 0 rg BT 167.66 526.25 Td (The product architectures are designed for easy exchange at the point of use such that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (substantially all product service and repairs are based upon advanced replacement and depot \(i.e., factory\) repair) Tj ET Q q 0 0 0 rg BT 499.25 514.25 Td (. CLC) Tj ET Q q 0 0 0 rg BT 526.48 514.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (primary markets include materials processing, OEM components and instrumentation and microelectronics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 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 50.00 466.25 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 50.00 454.25 Td (expenses incurred within the operating segments as well as allocated expenses such as shared sales and manufacturing costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 442.25 Td (e do not allocate to our operating segments certain operating expenses, which we manage separately at the corporate level. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (These unallocated costs include stock-based compensation and corporate functions \(certain advanced research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (development, management, finance, legal and human resources\) and are included in Corporate and other) Tj ET Q q 0 0 0 rg BT 467.62 418.25 Td (. Management does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 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 50.00 382.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 94.82 382.25 Td ( ) Tj ET Q q 0 0 0 rg BT 96.77 382.25 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 140.47 382.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 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 50.00 346.25 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 50.00 334.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (OUR STRA) Tj ET Q q 0 0 0 rg BT 100.65 322.25 Td (TEGY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 302.25 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 50.00 290.25 Td (on our core expertise in lasers and optical technologies. In pursuit of our strategy) Tj ET Q q 0 0 0 rg BT 373.14 290.25 Td (, we intend to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 269.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 269.25 Td (Leverage our) Tj ET Q q 0 0 0 rg BT 142.74 269.25 Td ( technology portfolio and application engineering to lead the pr) Tj ET Q q 0 0 0 rg BT 411.73 269.25 Td (oliferation of photonics into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 257.25 Td (br) Tj ET Q q 0 0 0 rg BT 95.82 257.25 Td (oader) Tj ET Q q 0 0 0 rg BT 120.08 257.25 Td ( markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.57 257.25 Td (W) Tj ET Q q 0 0 0 rg BT 176.21 257.25 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 86.00 245.25 Td (engineering can be used to of) Tj ET Q q 0 0 0 rg BT 203.28 245.25 Td (fer innovative solutions and gain access to new markets. ) Tj ET Q q 0 0 0 rg BT 430.81 245.25 Td (W) Tj ET Q q 0 0 0 rg BT 439.45 245.25 Td (e plan to utilize our expertise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 233.25 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 68.00 212.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 212.25 Td (Optimize our) Tj ET Q q 0 0 0 rg BT 142.75 212.25 Td ( leadership position in existing markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.71 212.25 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 86.00 200.25 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 86.00 188.25 Td (substantial portion of our revenues. ) Tj ET Q q 0 0 0 rg BT 229.68 188.25 Td (W) Tj ET Q q 0 0 0 rg BT 238.31 188.25 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 68.00 167.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 167.25 Td (Maintain and develop additional str) Tj ET Q q 0 0 0 rg BT 239.18 167.25 Td (ong collaborative customer) Tj ET Q q 0 0 0 rg BT 354.53 167.25 Td ( and industry r) Tj ET Q q 0 0 0 rg BT 418.53 167.25 Td (elationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.11 167.25 Td (W) Tj ET Q q 0 0 0 rg BT 487.74 167.25 Td (e believe that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 155.25 Td (Coherent brand name and reputation for product quality) Tj ET Q q 0 0 0 rg BT 308.89 155.25 Td (, technical performance and customer satisfaction will help us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 143.25 Td (to further develop our loyal customer base. ) Tj ET Q q 0 0 0 rg BT 260.21 143.25 Td (W) Tj ET Q q 0 0 0 rg BT 268.85 143.25 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 86.00 131.25 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 86.00 119.25 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 98.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 98.25 Td (Develop and acquir) Tj ET Q q 0 0 0 rg BT 169.16 98.25 Td (e new technologies and market shar) Tj ET Q q 0 0 0 rg BT 321.47 98.25 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.91 98.25 Td (W) Tj ET Q q 0 0 0 rg BT 344.54 98.25 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 86.25 Td (through our existing technologies and develop new technologies through our internal research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 74.25 Td (ef) Tj ET Q q 0 0 0 rg BT 93.59 74.25 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 74.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 62.25 Td (manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 245.77 62.25 Td (ferings.) 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 BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 742.10 Td (Str) Tj ET Q q 0 0 0 rg BT 99.15 742.10 Td (eamline our) Tj ET Q q 0 0 0 rg BT 149.79 742.10 Td ( manufacturing structur) Tj ET Q q 0 0 0 rg BT 253.50 742.10 Td (e and impr) Tj ET Q q 0 0 0 rg BT 299.98 742.10 Td (ove our) Tj ET Q q 0 0 0 rg BT 331.74 742.10 Td ( cost structur) Tj ET Q q 0 0 0 rg BT 388.21 742.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 411.29 742.10 Td (e will focus on optimizing the mix of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (products that we manufacture internally and externally) Tj ET Q q 0 0 0 rg BT 304.15 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 308.97 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 317.61 730.10 Td (e will utilize vertical integration where our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 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 86.00 706.10 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 68.00 685.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 685.10 Td (Focus on long-term impr) Tj ET Q q 0 0 0 rg BT 192.20 685.10 Td (ovement of adjusted EBITDA, in dollars and as a per) Tj ET Q q 0 0 0 rg BT 418.71 685.10 Td (centage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.07 685.10 Td (W) Tj ET Q q 0 0 0 rg BT 518.71 685.10 Td (e define ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 673.10 Td (adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 157.93 673.10 Td ( as operating income adjusted for depreciation, amortization, stock-based compensation expense, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 661.10 Td (major restructuring costs and certain other non-operating income and expense items. Key initiatives to reach our goals ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 649.10 Td (for EBITDA) Tj ET Q q 0 0 0 rg BT 136.27 649.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 299.57 649.10 Td (Asian manufacturing locations, rationalizing our supply chain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 637.10 Td (and continued leveraging of our infrastructure.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 601.10 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 93.70 601.10 Td (TION OF) Tj ET Q q 0 0 0 rg BT 135.28 601.10 Td ( CRITICAL) Tj ET Q q 0 0 0 rg BT 187.24 601.10 Td ( ) Tj ET Q q 0 0 0 rg BT 189.18 601.10 Td (ACCOUNTING POLICIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 589.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 577.10 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 50.00 565.10 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 50.00 553.10 Td (States of ) Tj ET Q q 0 0 0 rg BT 86.67 553.10 Td (America and pursuant to the rulesand regulations of the SEC. ) Tj ET Q q 0 0 0 rg BT 336.98 553.10 Td (The preparation of these condensed consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 541.10 Td (financial statements requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 388.60 541.10 Td (fect the reported amounts of assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 529.10 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 50.00 517.10 Td (the reported amounts of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 354.17 517.10 Td (W) Tj ET Q q 0 0 0 rg BT 362.81 517.10 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 50.00 505.10 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 50.00 493.10 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 50.00 481.10 Td (accounting for income taxes. See Item 7. "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 343.03 481.10 Td (Analysis of Financial Condition and Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.10 Td (Operations" in our ) Tj ET Q q 0 0 0 rg BT 126.02 469.10 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 347.62 469.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.33 469.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 433.10 Td (KEY) Tj ET Q q 0 0 0 rg BT 71.30 433.10 Td ( PERFORMANCE INDICA) Tj ET Q q 0 0 0 rg BT 191.11 433.10 Td (T) Tj ET Q q 0 0 0 rg BT 197.60 433.10 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 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 50.00 397.10 Td (to assess our financial performance. Some of the indicators are non-GAAP) Tj ET Q q 0 0 0 rg BT 348.71 397.10 Td ( measures and should not be considered as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 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 50.00 373.10 Td (generally accepted accounting principles.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 304.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 304.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 304.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 304.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 304.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 304.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 304.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 304.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 274.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 274.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 274.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 274.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 274.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 274.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 274.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 274.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 244.60 220.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 244.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 244.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 244.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 244.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 244.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 244.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 244.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 194.60 220.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 194.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 194.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 194.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 194.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 194.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 194.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 194.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 154.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 154.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 154.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 154.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 154.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 154.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 154.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 154.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 124.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 124.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 124.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 124.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 124.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 124.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 124.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 124.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 94.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 94.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 94.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 94.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 94.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 94.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 94.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 94.60 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 270.5 349.6 m 340.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 349.6 m 344.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 349.6 m 414.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 349.6 m 340.5 349.6 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 340.5 349.6 m 344.5 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 349.6 m 414.5 349.6 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 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 492.5 330.6 m 562.5 330.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 352.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 305.60 353.83 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 453.00 352.32 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 527.00 352.32 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 333.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.85 334.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.85 334.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.85 334.83 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.85 334.83 Td (%Change) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 320.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.20 322.68 Td (\(Dollarsinthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 294.27 Td (Bookings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 294.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 294.27 Td (496,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 294.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 294.27 Td (220,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 294.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 294.27 Td (275,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 294.27 Td (125.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 294.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 279.27 Td (Book-to-bill ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 279.27 Td (2.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 279.27 Td (1.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 279.27 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 279.27 Td (129.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 279.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 264.27 Td (Net salesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 264.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 264.27 Td (143,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 264.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 264.27 Td (140,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 264.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.80 264.27 Td (3,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 264.27 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 264.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 249.27 Td (Net salesCommercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 249.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 249.27 Td (56,529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 249.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 249.27 Td (63,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 249.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.45 249.27 Td (\(7,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 249.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 249.27 Td (\(11.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 249.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 234.27 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 224.27 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 224.27 Td (47.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 224.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 224.27 Td (44.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 224.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 224.27 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 224.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 224.27 Td (7.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 224.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 209.27 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 199.27 Td (Commercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 199.27 Td (36.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 199.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 199.27 Td (34.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 199.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 199.27 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 199.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 199.27 Td (6.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 199.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 184.27 Td (Research and development as a percentage of net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 174.27 Td (sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 174.27 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 174.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 174.27 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 174.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 174.27 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 174.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 174.27 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 174.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 159.27 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 159.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 159.27 Td (24,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 159.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 159.27 Td (24,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 159.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.30 159.27 Td (102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.80 159.27 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 159.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 144.27 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 144.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 144.27 Td (31,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 144.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 144.27 Td (49,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 144.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.45 144.27 Td (\(18,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 144.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 144.27 Td (\(36.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 144.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 129.27 Td (Days sales outstanding in receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.15 129.27 Td (67.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 129.27 Td (54.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.80 129.27 Td (12.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 129.27 Td (23.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 129.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 114.27 Td (Annualized second quarter inventory turns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.15 114.27 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 114.27 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.45 114.27 Td (\(0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 114.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 114.27 Td (\(19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 114.27 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 99.27 Td (Capital spending as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.15 99.27 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 99.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 99.27 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 99.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 99.27 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 99.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 99.27 Td (62.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 99.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 84.27 Td (Net income as a percentage of net sales) Tj ET Q BT 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Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 739.07 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 721.17 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.85 720.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.85 720.73 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.85 720.73 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.85 720.73 Td (%Change) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 707.07 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.20 707.73 Td (\(Dollarsinthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 680.17 Td (Bookings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 680.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.15 680.17 Td (769,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 680.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 680.17 Td (383,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 680.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 680.17 Td (386,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 680.17 Td (100.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 680.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 665.17 Td (Book-to-bill ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 665.17 Td (1.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 665.17 Td (0.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 665.17 Td (1.02) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 665.17 Td (107.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 665.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 650.17 Td (Net salesSpecialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 650.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.15 650.17 Td (279,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 650.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 650.17 Td (285,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 650.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 650.22 Td (\(5,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 650.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.45 650.17 Td (\(2.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.30 650.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 635.17 Td (Net salesCommercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 635.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.15 635.17 Td (110,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 635.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 635.17 Td (119,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 635.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 635.22 Td (\(8,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 635.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.45 635.17 Td (\(7.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.30 635.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 620.17 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 610.17 Td (Specialty Lasers and Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 610.17 Td (47.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 610.17 Td (44.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 610.17 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 610.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 610.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 595.17 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 585.17 Td (Commercial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 585.17 Td (36.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 585.17 Td (34.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 585.17 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 585.17 Td (5.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 585.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 570.17 Td (Research and development as a percentage of net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 560.17 Td (sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 560.17 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 560.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 560.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 560.17 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 560.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 545.17 Td (Income before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 545.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 545.17 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 545.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 545.17 Td (47,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 545.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 545.17 Td (3,539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.80 545.17 Td (7.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 545.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 530.17 Td (Net cash provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 530.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 530.17 Td (45,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 530.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 530.17 Td (80,414) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 530.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 530.22 Td (\(34,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 530.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.45 530.17 Td (\(43.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.30 530.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 515.17 Td (Capital spending as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.15 515.17 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 515.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 515.17 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 515.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 515.17 Td (1.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 515.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 515.17 Td (40.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 515.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 500.17 Td (Net income as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.15 500.17 Td (9.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 500.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 500.17 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 500.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 500.17 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 500.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 500.17 Td (10.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 500.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 485.17 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 485.17 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 485.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 485.17 Td (18.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 485.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 485.17 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 485.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 485.17 Td (15.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 485.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 457.00 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 50.00 433.00 Td (Bookings and Book-to-Bill Ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.00 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 50.00 397.00 Td (contracts. ) Tj ET Q q 0 0 0 rg BT 90.91 397.00 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 50.00 385.00 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 50.00 361.00 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 402.50 361.00 Td (This is an indication of the strength of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 349.00 Td (our business but can sometimes be impacted by a single lar) Tj ET Q q 0 0 0 rg BT 286.43 349.00 Td (ge order or a single lar) Tj ET Q q 0 0 0 rg BT 376.49 349.00 Td (ge shipment. ) Tj ET Q q 0 0 0 rg BT 429.54 349.00 Td (A) Tj ET Q q 0 0 0 rg BT 436.21 349.00 Td ( ratio of greater than 1.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 337.00 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 50.00 325.00 Td (that demand for our products is less than what we supply in the quarter) Tj ET Q q 0 0 0 rg BT 332.99 325.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 301.00 Td (In the second quarter of fiscal 2016, Coherent set another new quarterly bookings record, including records in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 289.00 Td (microelectronics, OEM components and instrumentation and materials processing markets. Bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 289.00 Td (125.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.33 289.00 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.77 277.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.07 277.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.07 277.00 Td ( compared to the same quarter one year ago, with the increase led by a significant increase in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.00 Td (microelectronics market. Compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.05 265.00 Td (first quarter of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.80 265.00 Td ( fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.46 265.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.46 265.00 Td (, bookings increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.88 265.00 Td (81.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.71 265.00 Td ( with significant increases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.00 Td (the microelectronics, OEM components and instrumentation and materials processing markets partially of) Tj ET Q q 0 0 0 rg BT 473.59 253.00 Td (fset by a decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.00 Td (the scientific and government programs market. ) Tj ET Q q 0 0 0 rg BT 243.92 241.00 Td (The book-to-bill ratio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.12 241.00 Td (2.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.62 241.00 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.11 241.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.88 241.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.18 241.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.18 241.00 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.00 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 50.00 205.00 Td (discussion of backlog, see "RESUL) Tj ET Q q 0 0 0 rg BT 191.76 205.00 Td (TS OF OPERA) Tj ET Q q 0 0 0 rg BT 252.89 205.00 Td (TIONS - BACKLOG".) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 179.6669921875 m 117.7490234375 179.6669921875 l s q 0 0 0 rg BT 50.00 181.00 Td (Microelectronics) 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 50.00 169.00 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 157.00 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 331.27 157.00 Td (248.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.10 157.00 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 50.00 145.00 Td (increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.25 145.00 Td (94.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.08 145.00 Td ( from bookings in the first quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.10 145.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.10 145.00 Td (. ) Tj ET Q q 0 0 0 rg BT 313.92 145.00 Td (The book-to-bill ratio for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.94 145.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.71 145.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.01 145.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.01 145.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 133.00 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 133.00 Td (3.76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.55 133.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 121.00 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 109.00 Td (Record flat panel display orders in the second quarter of fiscal 2016 increased 41) Tj ET Q q 0 0 0 rg BT 373.68 109.00 Td (1.2% from orders in the second quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 97.00 Td (fiscal 2015 and 1) Tj ET Q q 0 0 0 rg BT 118.22 97.00 Td (15.9% from orders in the first quarter of fiscal 2016, primarily due to the timing of order placement by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 85.00 Td (customers, with orders received from multiple customers for lar) Tj ET Q q 0 0 0 rg BT 305.02 85.00 Td (ge format Linebeam systems to be used in or) Tj ET Q q 0 0 0 rg BT 484.24 85.00 Td (ganic light-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 73.00 Td (emitting diode \(OLED\) production. ) Tj ET Q q 0 0 0 rg BT 194.51 73.00 Td (The buildout of OLED capacity generated more than $300 million of orders for Linebeam ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 61.00 Td (1000, Linebeam 1500 and UV) Tj ET Q q 0 0 0 rg BT 171.18 61.00 Td ( Blade systems in the second quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 379.56 61.00 Td (These systems have been ordered with ) 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 (delivery to end customers in South Korea, Japan and China. ) Tj ET Q q 0 0 0 rg BT 291.99 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 300.63 742.10 Td (e believe there is an additional lar) Tj ET Q q 0 0 0 rg BT 435.39 742.10 Td (ge tranche of orders in excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (of $100 million remaining in our customer's current buildout phase that we expect to book before the end of fiscal 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Orders in the advanced packaging \(API\) market decreased 31.5% from orders in the second 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 (increased 12.5% from orders in the first quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 302.24 694.10 Td (The ) Tj ET Q q 0 0 0 rg BT 319.73 694.10 Td (API market continues to demonstrate variability based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (project specific activity) Tj ET Q q 0 0 0 rg BT 143.20 682.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (Orders from semiconductor capital equipment OEMs increased 10.9% from the second quarter of fiscal 2015 but decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (6.6% from the first quarter of fiscal 2016.) 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 216.89 646.10 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 219.21 646.10 Td (The outlook for semiconductor capital spending is flat to slightly up in 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (Semiconductor service revenue is also increasing as chip inventories have decreased and utilization rates have increased.) 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 50 608.7669921875 m 133.59375 608.7669921875 l s q 0 0 0 rg BT 50.00 610.10 Td (Materials Processing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Record materials processing orders increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.54 586.10 Td (36.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.37 586.10 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 493.43 586.10 Td (1) Tj ET Q q 0 0 0 rg BT 498.06 586.10 Td (12.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.89 586.10 Td ( from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (first quarter of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.75 574.10 Td ( fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.41 574.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.41 574.10 Td (. ) Tj ET Q q 0 0 0 rg BT 159.23 574.10 Td (The book-to-bill ratio for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.25 574.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.02 574.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.32 574.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.32 574.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.87 574.10 Td (1.54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.37 574.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (The bookings performance was led by strong demand from cutting and converting of metals and non-metals. ) Tj ET Q q 0 0 0 rg BT 487.20 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 495.84 550.10 Td (e also received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (record orders from automotive manufacturing OEMs and had very strong results for additive manufacturing applications. ) Tj ET Q q 0 0 0 rg BT 537.46 538.10 Td (While ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (Chinese customers contributed to these results, the broader Chinese market remained volatile as low-power marking and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (engraving, a staple of the Chinese market, recovered from a weak first quarter of fiscal 2016, but is still soft. ) Tj ET Q q 0 0 0 rg BT 486.35 514.10 Td (The sheet metal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (market, which has also been slow for the past couple of quarters, appears to be improving. Our second generation fiber laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (platform has been qualified by an OEM for welding and cutting including copper) Tj ET Q q 0 0 0 rg BT 374.36 490.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 464.7669921875 m 208.037109375 464.7669921875 l s q 0 0 0 rg BT 50.00 466.10 Td (OEM Components and Instrumentation) 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 (Record OEM Components and Instrumentation orders increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.66 442.10 Td (3.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.49 442.10 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 50.00 430.10 Td (increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.25 430.10 Td (95.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.08 430.10 Td ( from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.24 430.10 Td (first quarter of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.99 430.10 Td ( fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.65 430.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 430.10 Td (, with the sequential increase reflecting both the timing of certain OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (orders as well as key design wins. ) Tj ET Q q 0 0 0 rg BT 188.13 418.10 Td (The book-to-bill ratio for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 418.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.92 418.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.22 418.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.22 418.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.77 418.10 Td (1.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.27 418.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (Instrumentation orders increased 3.4% compared to the same quarter one year ago and 76.0% compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.45 394.10 Td (first quarter of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.20 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 382.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 382.10 Td ( due to) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 121.37 382.10 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 123.87 382.10 Td (several lar) Tj ET Q q 0 0 0 rg BT 165.05 382.10 Td (ge orders from core accounts, record demand for integrated subsystems and increased adoption of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (clinical applications from cytometry to DNA) Tj ET Q q 0 0 0 rg BT 229.12 370.10 Td ( sequencing. ) Tj ET Q q 0 0 0 rg BT 281.43 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 290.06 370.10 Td (e believe our products are well-positioned for future orders given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td (recent design wins in clinical applications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (Orders for medical OEM products were 10.4% higher in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.98 334.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.75 334.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.05 334.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.05 334.10 Td ( compared to the same quarter one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (year ago and 286.7% higher than orders in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.16 322.10 Td (first quarter of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.92 322.10 Td ( fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.57 322.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.57 322.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 344.07 322.10 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 346.39 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 355.03 322.10 Td (e saw improved customer confidence in market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (conditions when placing longer) Tj ET Q q 0 0 0 rg BT 175.61 310.10 Td (-term orders for ophthalmic applications, predominantly in vision correction, and for aesthetic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (products for hair removal. Demand for medical consumables was also strong due to market share gains leading to an increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (number of procedures on the part of our customers.) 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 50 260.7669921875 m 198.57421875 260.7669921875 l s q 0 0 0 rg BT 50.00 262.10 Td (Scientific and Government Programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (Scientific and government programs orders increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.04 238.10 Td (0.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.87 238.10 Td ( compared to the same quarter one year ago and seasonally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.91 226.10 Td (21.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.74 226.10 Td ( from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.90 226.10 Td (first quarter of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.65 226.10 Td ( fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.31 226.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.31 226.10 Td (. ) Tj ET Q q 0 0 0 rg BT 266.13 226.10 Td (The book-to-bill for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.33 226.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.09 226.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.39 226.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.39 226.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.95 226.10 Td (0.82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.45 226.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 214.10 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 50.00 202.10 Td (Several factors af) Tj ET Q q 0 0 0 rg BT 119.78 202.10 Td (fected scientific bookings in the second quarter of fiscal 2016 including seasonal ef) Tj ET Q q 0 0 0 rg BT 452.83 202.10 Td (fects, a slow start to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (China) Tj ET Q q 0 0 0 rg BT 76.67 190.10 Td (s new five-year investment plan and a delay in increased National Institutes of Health \("NIH"\) funding reaching ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (researchers. Ultrafast applications continue to compete favorably in the research markets, with the two lar) Tj ET Q q 0 0 0 rg BT 472.99 178.10 Td (gest areas in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (multiphoton imaging and time-resolved spectroscopy) Tj ET Q q 0 0 0 rg BT 262.64 166.10 Td (, where the lasers serve as cameras with very short shutter speeds. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 154.10 Td (, research lasers have been in their own class, but the emer) Tj ET Q q 0 0 0 rg BT 330.45 154.10 Td (gence of short pulse processing in materials processing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (medical therapeutics and microelectronics is starting to drive a conver) Tj ET Q q 0 0 0 rg BT 329.99 142.10 Td (gence of research and commercial platforms. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (example, we recently introduced the Monaco, an all fiber) Tj ET Q q 0 0 0 rg BT 288.19 130.10 Td (, ultrafast laser with selectable processing performance in a wide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (range of applications. ) Tj ET Q q 0 0 0 rg BT 138.68 118.10 Td (The Monaco has now been paired with a new optical parametric amplifier) Tj ET Q q 0 0 0 rg BT 433.99 118.10 Td (, the Opera-F, to produce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (tunable wavelengths for use in multi-photon excitation and spectroscopy) Tj ET Q q 0 0 0 rg BT 339.83 106.10 Td (. ) Tj ET Q q 0 0 0 rg BT 344.28 106.10 Td (At the same time, it brings products built to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (commercial standards into the research market, which should improve reliability and lower operating costs for the scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (community) Tj ET Q q 0 0 0 rg BT 94.90 82.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td () 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 /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 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 422.36 742.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.13 742.10 Td ( fiscal quarter increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (2.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.83 730.10 Td ( in our SLS segment from the same quarter one year ago and decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.95 730.10 Td (1) Tj ET Q q 0 0 0 rg BT 362.58 730.10 Td (1.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.41 730.10 Td ( in our CLC segment from the same quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (one year ago. Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.84 718.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.06 718.10 Td ( decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.48 718.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.31 718.10 Td ( in our SLS segment from the same period one year ago and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.91 706.10 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.74 706.10 Td ( in our CLC segment from the same period one year ago. For a description of the reasons for changes in net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (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 50.00 670.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 62.04 670.10 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.69 670.10 Td (ofit as a Per) Tj ET Q q 0 0 0 rg BT 138.32 670.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 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 50.00 634.10 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 255.21 634.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.98 634.10 Td ( quarter increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.49 634.10 Td (44.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.32 634.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.09 634.10 Td (47.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.92 634.10 Td ( in our SLS segment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.19 622.10 Td (34.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.02 622.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.80 622.10 Td (36.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.63 622.10 Td ( in our CLC segment from the same quarter one year ago. Gross profit percentage in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.96 622.10 Td (first six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.45 610.10 Td ( increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.14 610.10 Td (44.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.97 610.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.75 610.10 Td (47.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.58 610.10 Td ( in our SLS segment and increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.88 610.10 Td (34.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.71 610.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.48 610.10 Td (36.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.31 610.10 Td ( in our CLC segment from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (same period one year ago. For a description of the reasons for changes in gross profit refer to the Results of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 562.10 Td (ch and Development as a Per) Tj ET Q q 0 0 0 rg BT 202.67 562.10 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 (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 50.00 526.10 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 50.00 514.10 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 502.67 514.10 Td (10.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.50 514.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (10.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 502.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.44 502.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 502.10 Td ( fiscal quarter and increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.15 502.10 Td (10.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.98 502.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.42 502.10 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.25 502.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.62 502.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.85 502.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.34 502.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.34 502.10 Td ( compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (same periods one year ago. For a description of the reasons for changes in R&D spending refer to the Results of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (section of this quarterly report.) 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 50.00 454.10 Td (Net Cash Pr) Tj ET Q q 0 0 0 rg BT 102.03 454.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 191.77 454.10 Td (Activities) 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 (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 50.00 418.10 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 50.00 406.10 Td (expenses and inventory purchases to run our business. ) Tj ET Q q 0 0 0 rg BT 271.44 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 280.08 406.10 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 50.00 394.10 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 50.00 382.10 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 423.80 382.10 Td (Activities refer to the Liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (and Capital Resources section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 322.10 Td (e 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 50.00 310.10 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 50.00 298.10 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 50.00 286.10 Td (capital availability) Tj ET Q q 0 0 0 rg BT 123.49 286.10 Td (. ) Tj ET Q q 0 0 0 rg BT 130.81 286.10 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 50.00 274.10 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 50.00 262.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.77 262.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.07 262.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.07 262.10 Td ( increased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.76 262.10 Td (54.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.26 262.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.04 262.10 Td (67.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.54 262.10 Td ( days compared to the same quarter one year ago primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (timing of lar) Tj ET Q q 0 0 0 rg BT 99.81 250.10 Td (ge dollar flat panel display system sales towards the end of the quarter in ) Tj ET Q q 0 0 0 rg BT 393.06 250.10 Td (Asia, a higher concentration of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (receivables in Japan where DSOs are typically higher) Tj ET Q q 0 0 0 rg BT 263.69 238.10 Td (, slower collections in the U.S. and Europe and the unfavorable impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (foreign exchange rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (Annualized Second Quarter) Tj ET Q q 0 0 0 rg BT 169.27 202.10 Td ( Inventory ) Tj ET Q q 0 0 0 rg BT 216.31 202.10 Td (T) Tj ET Q q 0 0 0 rg BT 222.06 202.10 Td (urns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 178.10 Td (e calculate annualized second quarter inventory turns as the cost of sales during the second quarter annualized and divided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (net inventories at the end of the second quarter) Tj ET Q q 0 0 0 rg BT 236.60 166.10 Td (. ) Tj ET Q q 0 0 0 rg BT 241.42 166.10 Td (This indicates how well we are managing our inventory levels, with higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (inventory turns resulting in more working capital availability and a higher return on our investments in inventory) Tj ET Q q 0 0 0 rg BT 501.47 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.29 154.10 Td (The more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (money we have tied up in inventory) Tj ET Q q 0 0 0 rg BT 193.20 142.10 Td (, the less money we have available for research and development, acquisitions, expansion, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (marketing 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 415.74 130.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.51 130.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.81 130.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.81 130.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (decreased from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.85 118.10 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.35 118.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.13 118.10 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.63 118.10 Td ( turns compared to the same quarter one year ago primarily due to the planned build-up of inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (levels in certain business units, primarily in microelectronics, to support increased demand and the unfavorable impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (foreign exchange rates.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (Capital Spending as a Per) Tj ET Q q 0 0 0 rg BT 160.39 70.10 Td (centage of Net Sales) 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 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 50.00 742.10 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 50.00 730.10 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 50.00 718.10 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 50.00 706.10 Td (assists management in measuring our cash flows, net of capital expenditures. Our capital spending percentage increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (5.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.83 694.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.27 694.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.10 694.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.48 694.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.24 694.10 Td ( quarter and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.78 694.10 Td (4.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.61 694.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.04 694.10 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.88 694.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.25 694.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.48 694.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.96 694.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.96 694.10 Td ( compared to the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (periods one year ago primarily due to higher investments to expand our manufacturing capacity in Gttingen, Germany) Tj ET Q q 0 0 0 rg BT 526.71 682.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (upgrade certain of our production facilities in California and New Jersey and purchases of production-related assets, partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 658.10 Td (fset by lower revenues in the second quarter and first six months of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 378.44 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 387.08 658.10 Td (e expect higher capital spending in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (remainder of fiscal 2016 to expand our manufacturing capacity in Gttingen, Germany and add optics fabrication capacity at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (our site in Richmond, California.) 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 50.00 622.10 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 50.00 610.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 129.19 610.10 Td ( as a Per) Tj ET Q q 0 0 0 rg BT 165.39 610.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 586.10 Td (e define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 165.00 586.10 Td ( as operating income adjusted for depreciation, amortization, stock-based compensation, major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (restructuring costs and certain other non-operating income and expense items, such as costs related to the acquisition of Rofin. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (Key initiatives to reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 235.23 562.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 398.53 562.10 Td (Asian manufacturing locations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (rationalizing our supply chain and continued leveraging of our infrastructure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 526.10 Td (e utilize a number of dif) Tj ET Q q 0 0 0 rg BT 154.81 526.10 Td (ferent financial measures, both GAAP) Tj ET Q q 0 0 0 rg BT 307.45 526.10 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 371.33 526.10 Td (, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 479.93 526.10 Td ( as a percentage of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 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 50.00 502.10 Td (planning future periods. ) Tj ET Q q 0 0 0 rg BT 148.13 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 156.77 502.10 Td (e consider the use of non-GAAP) Tj ET Q q 0 0 0 rg BT 286.65 502.10 Td ( financial measures helpful in assessing our current financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (performance and ongoing operations. ) Tj ET Q q 0 0 0 rg BT 201.71 490.10 Td (While we use non-GAAP) Tj ET Q q 0 0 0 rg BT 303.82 490.10 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 50.00 478.10 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 453.06 478.10 Td (, or superior to, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (information provided by GAAP) Tj ET Q q 0 0 0 rg BT 177.11 466.10 Td ( financial measures. ) Tj ET Q q 0 0 0 rg BT 259.12 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 267.76 466.10 Td (e provide adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 379.68 466.10 Td ( in order to enhance investors' understanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (of our ongoing operations. ) Tj ET Q q 0 0 0 rg BT 158.41 454.10 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 50.00 432.10 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 442.38 432.10 Td ( as a percentage of net sales:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 375.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 375.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 375.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 375.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 375.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 375.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 375.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 375.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 345.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 345.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 345.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 345.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 345.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 345.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 345.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 345.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 316.60 190.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 316.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 316.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 316.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 316.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 316.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 316.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 316.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 286.60 190.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 240.50 286.60 62.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 302.50 286.60 4.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 306.50 286.60 62.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 368.50 286.60 4.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.50 286.60 62.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.50 286.60 4.00 -28.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 286.60 62.00 -28.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 396.6 m 302.5 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 396.6 m 306.5 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 396.6 m 368.5 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 396.6 m 434.5 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 396.6 m 438.5 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 396.6 m 500.5 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 375.6 m 302.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 375.6 m 368.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 375.6 m 434.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 375.6 m 500.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 375.6 m 434.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 375.6 m 500.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 286.6 m 434.5 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 286.6 m 302.5 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 259.6 m 302.5 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240.5 257.6 m 302.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 286.6 m 368.5 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 259.6 m 368.5 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 257.6 m 368.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 259.6 m 434.5 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372.5 257.6 m 434.5 257.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 286.6 m 500.5 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 259.6 m 500.5 259.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 257.6 m 500.5 257.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 145.00 399.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 267.60 400.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.40 400.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 378.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.85 387.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 263.00 379.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.85 387.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.00 379.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.85 387.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.00 379.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.85 387.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.00 379.83 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 365.27 Td (Net income as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.50 365.28 Td (8.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 365.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 365.27 Td (9.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 365.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.50 365.28 Td (9.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 365.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 365.27 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 365.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 350.27 Td (Income tax expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.50 350.28 Td (3.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 350.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 350.27 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 350.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.50 350.28 Td (3.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 350.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 350.27 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 350.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 335.27 Td (Interest and other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.00 335.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 335.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.45 335.27 Td (\(0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 335.27 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.50 335.28 Td (0.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 335.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 335.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 335.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 321.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.50 321.28 Td (4.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 321.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 321.17 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 321.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.50 321.28 Td (4.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 321.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 321.17 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 321.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 306.27 Td (Costs related to acquisition of Rofin) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.50 306.28 Td (1.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 306.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.30 306.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 306.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.50 306.28 Td (0.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 306.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 306.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 306.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 291.27 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.50 291.28 Td (2.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 291.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.80 291.27 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 291.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 411.50 291.28 Td (2.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 291.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 291.27 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 291.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 273.27 Td (Adjusted EBITDA as a percentage of net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 263.27 Td (sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.50 263.28 Td (20.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 292.00 263.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.80 263.27 Td (17.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 263.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 406.50 263.28 Td (21.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.00 263.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 263.27 Td (18.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 263.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 223.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 116.50 211.10 Td ( EVENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.10 Td (On March 16, 2016, we entered into a definitive agreement to acquire Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 381.10 187.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.51 187.10 Td (echnologies, Inc. \("Rofin"\), one of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (world's leading developers and manufacturers of high-performance industrial laser sources and laser) Tj ET Q q 0 0 0 rg BT 450.62 175.10 Td (-based solutions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td (components. ) Tj ET Q q 0 0 0 rg BT 103.14 163.10 Td (The acquisition will be an all-cash transaction at a price of $32.50 per share of Rofin common stock for a total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (approximate of) Tj ET Q q 0 0 0 rg BT 110.63 151.10 Td (fer value of $942 million before fees and transaction costs. ) Tj ET Q q 0 0 0 rg BT 347.87 151.10 Td (The completion of the acquisition is subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.10 Td (customary closing conditions, including regulatory approvals, and is expected to close in six to nine months from the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.10 Td (the definitive agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.10 Td (On March 16, 2016, we entered into a debt commitment letter with Barclays Bank PLC \("Barclays"\) and on ) Tj ET Q q 0 0 0 rg BT 483.61 103.10 Td (April 5, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.10 Td (entered into an amended and restated debt commitment letter with Barclays and both Bank of ) Tj ET Q q 0 0 0 rg BT 425.72 91.10 Td (America, N.A. and Merrill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (L) Tj ET Q q 0 0 0 rg BT 55.56 79.10 Td (ynch, Pierce, Fenner & Smith Incorporated \(together) Tj ET Q q 0 0 0 rg BT 266.20 79.10 Td (, "BAML"\). Pursuant to the commitment letter) Tj ET Q q 0 0 0 rg BT 452.27 79.10 Td (, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.10 Td (Barclays and BAML) Tj ET Q q 0 0 0 rg BT 132.94 67.10 Td ( have committed to provide us with debt financing in an aggregate principal amount of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.79 67.10 Td ($850.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 55.10 Td ( to finance the acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 223.12 55.10 Td (The obligations of Barclays and BAML) Tj ET Q q 0 0 0 rg BT 381.88 55.10 Td ( under the commitment letter are subject to ) Tj ET Q endstream endobj 63 0 obj <>] /Rotate 0 /Contents 64 0 R>> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (certain conditions, including the consummation of the acquisition in accordance with the terms and conditions of the definitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (agreement and other customary closing obligations. ) 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 50 704.53505859375 m 178.5546875 704.53505859375 l s q 0 0 0 rg BT 50.00 706.10 Td (RESUL) Tj ET Q q 0 0 0 rg BT 82.43 706.10 Td (TS OF) Tj ET Q q 0 0 0 rg BT 110.67 706.10 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 147.43 706.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 109.82 670.10 Td (TED SUMMAR) Tj ET Q q 0 0 0 rg BT 178.64 670.10 Td (Y) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 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 50.00 634.10 Td (in our condensed consolidated statements of operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 396.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 589.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 559.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 559.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 559.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 559.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 559.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 559.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 559.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 559.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 559.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 530.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 530.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 530.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 530.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 530.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 530.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 530.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 530.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 530.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 500.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 500.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 500.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 500.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 500.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 500.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 470.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 470.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 470.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 470.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 470.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 470.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 440.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 440.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 440.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 440.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 440.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 440.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 410.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 410.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.00 410.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.00 410.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.00 410.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.00 410.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.00 410.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.00 410.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 545.00 410.60 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 253 610.6 m 323 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 610.6 m 397 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 610.6 m 471 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 610.6 m 475 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 610.6 m 545 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 610.6 m 323 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 589.6 m 323 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 610.6 m 397 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 589.6 m 397 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 589.6 m 471 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 589.6 m 545 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 589.6 m 323 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 589.6 m 397 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 589.6 m 471 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 589.6 m 545 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 559.6 m 323 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 559.6 m 397 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 559.6 m 471 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 471 559.6 m 475 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 559.6 m 545 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 485.6 m 323 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 485.6 m 397 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 485.6 m 471 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 485.6 m 545 485.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 470.6 m 323 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 470.6 m 397 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 470.6 m 471 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 470.6 m 545 470.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 440.6 m 323 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 440.6 m 397 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 440.6 m 471 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 440.6 m 545 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 410.6 m 323 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 410.6 m 397 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 410.6 m 471 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 410.6 m 545 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 396.6 m 323 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 394.6 m 323 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 396.6 m 397 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327 394.6 m 397 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 396.6 m 471 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 394.6 m 471 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 396.6 m 545 396.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 394.6 m 545 394.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 152.50 613.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.10 614.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.90 614.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 592.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.35 601.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.50 593.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.35 601.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 593.83 Td (2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.35 601.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.50 593.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.35 601.83 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.50 593.83 Td (2015) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 579.28 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 286.65 579.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 579.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 579.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 579.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.65 579.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 579.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 579.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 579.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 564.28 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 564.28 Td (55.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 564.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 564.27 Td (59.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 564.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 564.28 Td (55.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 564.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 564.27 Td (59.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 564.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 549.28 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 549.28 Td (44.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 549.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 549.27 Td (40.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 549.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 549.28 Td (44.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 549.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 549.27 Td (41.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 549.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 535.28 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 520.27 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 520.28 Td (10.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 520.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 520.27 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 520.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 520.28 Td (10.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 520.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 520.27 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 520.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 505.27 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 505.28 Td (20.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 505.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 505.27 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 505.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 505.28 Td (19.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 505.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 505.27 Td (19.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 505.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 490.27 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.65 490.28 Td (0.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 490.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 490.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 490.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 490.28 Td (0.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 490.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 490.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 490.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 475.27 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 475.28 Td (31.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 475.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 475.27 Td (30.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 475.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 475.28 Td (30.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 475.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 475.27 Td (29.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 475.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 460.28 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 460.28 Td (13.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 460.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 460.27 Td (10.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 460.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 460.28 Td (13.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 460.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 460.27 Td (11.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 460.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 445.28 Td (Other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 293.30 445.33 Td (\(0.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 445.28 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 445.27 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 445.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.30 445.33 Td (\(0.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 445.28 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 445.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 445.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 430.28 Td (Income before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 291.65 430.28 Td (12.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 430.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 430.27 Td (11.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 430.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.65 430.28 Td (13.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 430.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 430.27 Td (11.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 430.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 415.27 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.65 415.28 Td (3.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 415.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 415.27 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 415.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 415.28 Td (3.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 415.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 415.27 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 415.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 400.28 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.65 400.28 Td (8.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 400.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 400.27 Td (9.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 400.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.65 400.28 Td (9.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.50 400.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 400.27 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 400.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 372.10 Td (Net income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.75 372.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.52 372.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.82 372.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.82 372.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.37 372.10 Td ($17.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.26 372.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.09 372.10 Td ($0.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.59 372.10 Td ( per diluted share\) including $3.9 million of after) Tj ET Q q 0 0 0 rg BT 542.17 372.10 Td (-tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 360.10 Td (stock-related compensation expense, $1.4 million amortization of intangible assets and $2.3 million of after) Tj ET Q q 0 0 0 rg BT 480.24 360.10 Td (-tax costs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.10 Td (the acquisition of Rofin. Net income for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.46 348.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.22 348.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.53 348.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.53 348.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.08 348.10 Td ($18.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.97 348.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 348.10 Td ($0.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.30 348.10 Td ( per diluted share\) including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.10 Td ($3.5 million of after) Tj ET Q q 0 0 0 rg BT 130.34 336.10 Td (-tax stock-related compensation expense and $1.5 million amortization of intangible assets. Net income for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.10 Td (the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.43 324.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.43 324.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.98 324.10 Td ($38.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.87 324.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.70 324.10 Td ($1.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.20 324.10 Td ( per diluted share\) including $7.3 million of after) Tj ET Q q 0 0 0 rg BT 482.78 324.10 Td (-tax stock-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.10 Td (compensation expense, $2.9 million amortization of intangible assets, $2.3 million of after) Tj ET Q q 0 0 0 rg BT 411.67 312.10 Td (-tax costs related to the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.10 Td (Rofin and a benefit of $1.2 million related to the renewal of the federal research and development tax credits for fiscal 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.10 Td (Net income for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.46 288.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.46 288.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.01 288.10 Td ($35.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.90 288.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.73 288.10 Td ($1.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.23 288.10 Td ( per diluted share\) including $7.4 million of after) Tj ET Q q 0 0 0 rg BT 545.82 288.10 Td (-tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 276.10 Td (stock-related compensation expense, $3.1 million amortization of intangible assets and a benefit of $1.1 million related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.10 Td (renewal of the federal research and development tax credits for fiscal 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 252.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 240.10 Td (BACKLOG) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.10 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 50.00 204.10 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 50.00 192.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 192.10 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 50.00 180.10 Td (rate of cancellations or rescheduling will not increase in the future. ) Tj ET Q q 0 0 0 rg BT 319.72 180.10 Td (W) Tj ET Q q 0 0 0 rg BT 328.35 180.10 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 50.00 168.10 Td ($469.3 million at ) Tj ET Q q 0 0 0 rg BT 120.56 168.10 Td (April 2, 2016, including a significant concentration in the flat panel display market \(48%\) for customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.10 Td (which are primarily in ) Tj ET Q q 0 0 0 rg BT 141.08 156.10 Td (Asia. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 132.10 Td (NET) Tj ET Q q 0 0 0 rg BT 70.38 132.10 Td ( SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 108.10 Td (Market ) Tj ET Q q 0 0 0 rg BT 84.16 108.10 Td (Application) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 96.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 84.10 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 72.10 Td (by market application \(dollars in thousands\):) 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 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 679.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 679.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 679.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 679.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 649.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 649.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 649.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 649.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 649.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 649.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 649.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 649.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 619.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 619.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 619.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 619.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 619.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 619.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 619.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 619.50 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 414.5 735.5 m 418.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 735.5 m 488.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 735.5 m 492.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 735.5 m 562.5 735.5 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 270.5 722.5 m 340.5 722.5 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 340.5 722.5 m 344.5 722.5 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 344.5 722.5 m 414.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 722.5 m 488.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 722.5 m 492.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 722.5 m 562.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 693.5 m 340.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 693.5 m 414.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 693.5 m 488.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 693.5 m 562.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 619.5 m 340.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 619.5 m 414.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 619.5 m 488.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 619.5 m 562.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 619.5 m 340.5 619.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 605.5 m 340.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 603.5 m 340.5 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 605.5 m 414.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 603.5 m 414.5 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 605.5 m 488.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 603.5 m 488.5 603.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 605.5 m 562.5 605.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 603.5 m 562.5 603.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 739.73 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.85 726.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.85 726.73 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 697.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.15 713.73 Td (Per) Tj ET Q q 0 0 0 rg BT 371.99 713.73 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 705.73 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.65 697.73 Td ( net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 697.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 713.73 Td (Per) Tj ET Q q 0 0 0 rg BT 519.99 713.73 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 705.73 Td ( of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.65 697.73 Td ( net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 684.18 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 669.17 Td (Microelectronics) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 669.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 669.18 Td (97,724) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 669.18 Td (48.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 669.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 669.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 669.17 Td (101,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 669.17 Td (50.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 669.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 654.17 Td (OEM components and instrumentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 654.18 Td (41,800) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 654.18 Td (20.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 654.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 654.17 Td (43,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 654.17 Td (21.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 654.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 639.17 Td (Materials processing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 639.18 Td (28,024) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 639.18 Td (14.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 639.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 639.17 Td (29,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 639.17 Td (14.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 639.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 624.17 Td (Scientific and government programs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 624.18 Td (32,334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 624.18 Td (16.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 624.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 624.17 Td (28,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 624.17 Td (14.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 624.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 609.17 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 609.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 609.18 Td (199,882) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 609.18 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 609.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 609.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 609.17 Td (203,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 609.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 609.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 513.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 513.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 513.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 513.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 513.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 513.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 513.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 513.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 483.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 483.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 483.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 483.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 483.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 483.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 483.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 483.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 453.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 453.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 453.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 453.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 453.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 453.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 453.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 453.50 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 269.5 569.5 m 339.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 569.5 m 343.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 569.5 m 413.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 569.5 m 417.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 569.5 m 487.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 569.5 m 491.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 569.5 m 561.5 569.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 556.5 m 339.5 556.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 556.5 m 343.5 556.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 556.5 m 413.5 556.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 556.5 m 487.5 556.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 556.5 m 491.5 556.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 556.5 m 561.5 556.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 527.5 m 339.5 527.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 527.5 m 413.5 527.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 527.5 m 487.5 527.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 527.5 m 561.5 527.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 453.5 m 339.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 439.5 m 339.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 437.5 m 339.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 453.5 m 413.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 439.5 m 413.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 437.5 m 413.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 453.5 m 487.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 439.5 m 487.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 437.5 m 487.5 437.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 453.5 m 561.5 453.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 439.5 m 561.5 439.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 437.5 m 561.5 437.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.40 573.73 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.85 560.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.85 560.73 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.95 531.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.15 547.73 Td (Per) Tj ET Q q 0 0 0 rg BT 370.99 547.73 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.85 539.73 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.65 531.73 Td ( net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.95 531.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.15 547.73 Td (Per) Tj ET Q q 0 0 0 rg BT 518.99 547.73 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.85 539.73 Td ( of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.65 531.73 Td ( net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 518.18 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 503.17 Td (Microelectronics) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 503.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.15 503.18 Td (194,230) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 503.18 Td (49.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 503.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 503.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 503.17 Td (201,080) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 503.17 Td (49.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 503.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 488.17 Td (OEM components and instrumentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 488.18 Td (81,133) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 488.18 Td (20.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 488.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 488.17 Td (85,281) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 488.17 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 488.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 473.17 Td (Materials processing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 473.18 Td (51,058) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 473.18 Td (13.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 473.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 473.17 Td (58,110) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 473.17 Td (14.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 473.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 458.17 Td (Scientific and government programs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.15 458.18 Td (63,736) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 458.18 Td (16.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 458.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 458.17 Td (59,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 458.17 Td (14.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 458.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 443.17 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 443.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.15 443.18 Td (390,157) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 443.18 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 443.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 443.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 443.17 Td (404,336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 443.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 443.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.00 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 52.50 415.00 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.00 Td (Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 391.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.52 391.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.82 391.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.82 391.00 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.74 391.00 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.63 391.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.46 391.00 Td (1.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.29 391.00 Td (, compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.21 391.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.98 391.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 379.00 Td ( including decreases due to the unfavorable impact of foreign exchange rates. Sales decreases in the microelectronics, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.00 Td (OEM components and instrumentation and materials processing markets were partially of) Tj ET Q q 0 0 0 rg BT 409.17 367.00 Td (fset by increases in the scientific and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.00 Td (government programs market.) 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 decrease in the microelectronics market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.19 331.00 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.08 331.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.91 331.00 Td (4.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.74 331.00 Td (, was primarily due to lower shipments for advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 319.00 Td (packaging and solar panel manufacturing applications partially of) Tj ET Q q 0 0 0 rg BT 312.23 319.00 Td (fset by higher shipments for semiconductor applications; sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 307.00 Td (for flat panel display applications were essentially flat. Sales in the OEM components and instrumentation market decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.00 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 295.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 295.00 Td (5.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 295.00 Td (, primarily due to lower shipments for medical applications partially of) Tj ET Q q 0 0 0 rg BT 418.91 295.00 Td (fset by higher shipments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.00 Td (military and bio-instrumentation applications. ) Tj ET Q q 0 0 0 rg BT 235.62 283.00 Td (The decrease in the materials processing market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.08 283.00 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.98 283.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.81 283.00 Td (4.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.64 283.00 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.00 Td (primarily due to lower shipments for non-metal drilling, non-metal cutting and rapid prototyping applications partially of) Tj ET Q q 0 0 0 rg BT 534.16 271.00 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.00 Td (higher shipments for marking and metal cutting applications. Sales in the scientific and government programs market increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.00 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 247.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 247.00 Td (13.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.55 247.00 Td (, primarily due to higher demand for advanced research applications used by university and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.00 Td (research groups in Europe and the U.S.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 211.00 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 211.00 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 211.00 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.00 Td (Net sales for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.47 187.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.47 187.00 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.38 187.00 Td ($14.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.27 187.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.10 187.00 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.93 187.00 Td ( compared to the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 175.00 Td (, including decreases due to the unfavorable impact of foreign exchange rates. Sales decreases in the materials processing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.00 Td (microelectronics and OEM components and instrumentation markets were partially of) Tj ET Q q 0 0 0 rg BT 393.88 163.00 Td (fset by increases in the scientific and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.00 Td (government programs market. Sales in the material processing market decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 151.00 Td ($7.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.50 151.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.33 151.00 Td (12.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.16 151.00 Td (, primarily due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.00 Td (shipments for non-metal drilling, non-metal cutting and rapid prototyping applications partially of) Tj ET Q q 0 0 0 rg BT 441.96 139.00 Td (fset by higher shipments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.00 Td (marking and metal cutting applications. ) Tj ET Q q 0 0 0 rg BT 210.89 127.00 Td (The decrease in the microelectronics market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.07 127.00 Td ($6.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.97 127.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 127.00 Td (3.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.63 127.00 Td (, was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.00 Td (due to lower shipments for advanced packaging, solar panel production and micromaterials processing applications partially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.00 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 103.00 Td (fset by higher shipments for semiconductor applications; sales for flat panel display applications were essentially flat. ) Tj ET Q q 0 0 0 rg BT 530.89 103.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.00 Td (decrease in the OEM components and instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.76 91.00 Td ($4.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 91.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.48 91.00 Td (4.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.31 91.00 Td (, was due primarily to lower shipments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.00 Td (for medical and machine vision applications partially of) Tj ET Q q 0 0 0 rg BT 273.36 79.00 Td (fset by higher shipments for military and bio-instrumentation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 67.00 Td (applications. Sales in the scientific and government programs market increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.06 67.00 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.95 67.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.78 67.00 Td (6.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.61 67.00 Td (, primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 55.00 Td (demand for advanced research applications used by university and government research groups in Europe and the U.S.) 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 (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 50.00 730.10 Td (fluctuated and are in the future expected to fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 311.34 730.10 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 50.00 718.10 Td (manufacture these products and/or availability of supplies. ) Tj ET Q q 0 0 0 rg BT 286.04 718.10 Td (As a result, the timing to convert orders for these products to sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (will likely fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 180.86 706.10 Td (-to-quarter) Tj ET Q q 0 0 0 rg BT 223.07 706.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Segments) 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 (W) Tj ET Q q 0 0 0 rg BT 58.64 658.10 Td (e are or) Tj ET Q q 0 0 0 rg BT 88.43 658.10 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 50.00 646.10 Td (advanced-performance products lar) Tj ET Q q 0 0 0 rg BT 191.41 646.10 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 50.00 634.10 Td (components and instrumentation markets. CLC focuses on higher volume products that are of) Tj ET Q q 0 0 0 rg BT 424.46 634.10 Td (fered in set configurations. CLC) Tj ET Q q 0 0 0 rg BT 556.37 634.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 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 50.00 610.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 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 50.00 586.10 Td (by segment \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 506.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 506.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 506.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 506.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 506.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 476.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 476.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 476.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 476.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 476.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 476.60 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 270.5 562.6 m 340.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 562.6 m 344.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 562.6 m 414.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 562.6 m 418.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 562.6 m 488.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 562.6 m 492.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 562.6 m 562.5 562.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 549.6 m 340.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 549.6 m 344.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 549.6 m 414.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 549.6 m 488.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 549.6 m 492.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 549.6 m 562.5 549.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 520.6 m 340.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 520.6 m 414.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 520.6 m 488.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 520.6 m 562.5 520.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 476.6 m 340.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 462.6 m 340.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 460.6 m 340.5 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 476.6 m 414.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 462.6 m 414.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 460.6 m 414.5 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 476.6 m 488.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 462.6 m 488.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 460.6 m 488.5 460.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 476.6 m 562.5 476.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 462.6 m 562.5 462.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 460.6 m 562.5 460.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 566.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.85 553.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.85 553.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 524.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.15 540.83 Td (Per) Tj ET Q q 0 0 0 rg BT 371.99 540.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 532.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.65 524.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 524.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 540.83 Td (Per) Tj ET Q q 0 0 0 rg BT 519.99 540.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.85 532.83 Td (of total ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.65 524.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 511.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 496.27 Td (Specialty Lasers and Systems \(SLS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 496.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 496.28 Td (143,353) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 496.28 Td (71.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 496.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 496.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 496.27 Td (140,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 496.27 Td (68.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 496.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 481.27 Td (Commercial Lasers and Components \(CLC\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 481.28 Td (56,529) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 481.28 Td (28.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 481.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 481.27 Td (63,705) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 481.27 Td (31.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 481.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 466.27 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 466.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 466.28 Td (199,882) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 466.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 466.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 466.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 466.27 Td (203,721) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 466.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 466.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 370.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 370.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 370.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 370.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 370.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 370.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 370.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 370.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 340.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 340.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 340.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 340.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 340.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 340.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 340.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 340.60 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 269.5 426.6 m 339.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 426.6 m 343.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 426.6 m 413.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 426.6 m 417.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 426.6 m 487.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 426.6 m 491.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 426.6 m 561.5 426.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 413.6 m 339.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 413.6 m 343.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 413.6 m 413.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 413.6 m 487.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 413.6 m 491.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 413.6 m 561.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 384.6 m 339.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 384.6 m 413.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 384.6 m 487.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 384.6 m 561.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 340.6 m 339.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 340.6 m 413.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 340.6 m 487.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 340.6 m 561.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 340.6 m 339.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 326.6 m 339.5 326.6 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 343.5 340.6 m 413.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 326.6 m 413.5 326.6 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 417.5 340.6 m 487.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 326.6 m 487.5 326.6 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 491.5 340.6 m 561.5 340.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 326.6 m 561.5 326.6 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 BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.40 430.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.85 417.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.85 417.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.95 388.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.15 404.83 Td (Per) Tj ET Q q 0 0 0 rg BT 370.99 404.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.85 396.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.65 388.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.95 388.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.15 404.83 Td (Per) Tj ET Q q 0 0 0 rg BT 518.99 404.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 396.83 Td (of total ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.65 388.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 375.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 360.27 Td (Specialty Lasers and Systems \(SLS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 360.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.15 360.28 Td (279,304) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 360.28 Td (71.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 360.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 360.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 360.27 Td (285,107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 360.27 Td (70.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 360.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 345.27 Td (Commercial Lasers and Components \(CLC\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.15 345.28 Td (110,853) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.50 345.28 Td (28.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 345.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 345.27 Td (119,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 345.27 Td (29.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 345.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 330.27 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 330.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.15 330.28 Td (390,157) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 380.50 330.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 403.00 330.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 330.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 330.27 Td (404,336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 330.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 330.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 278.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.52 278.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.82 278.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.82 278.10 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.74 278.10 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.63 278.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.46 278.10 Td (1.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.29 278.10 Td (, compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.21 278.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.98 278.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 266.10 Td (, with decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.91 266.10 Td ($7.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.81 266.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.64 266.10 Td (1) Tj ET Q q 0 0 0 rg BT 216.26 266.10 Td (1.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.09 266.10 Td (, in our CLC segment partially of) Tj ET Q q 0 0 0 rg BT 369.95 266.10 Td (fset by increases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.36 266.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.25 266.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.08 266.10 Td (2.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.91 266.10 Td (, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (our SLS segment. Both the decrease and increase in CLC and SLS segment sales, respectively) Tj ET Q q 0 0 0 rg BT 426.48 254.10 Td (, included decreases due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (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 50.00 230.10 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 50.00 218.10 Td (The decrease in our CLC segment sales was primarily due to lower shipments for medical, materials processing and advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (packaging applications. ) Tj ET Q q 0 0 0 rg BT 146.73 206.10 Td (The increase in our SLS segment sales was primarily due to higher shipments for scientific and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (government research programs as well as higher shipments for semiconductor) Tj ET Q q 0 0 0 rg BT 361.45 194.10 Td (, military and bio-instrumentation applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 182.10 Td (fset by lower shipments for advanced packaging, medical and solar panel production applications.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 158.10 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 158.10 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (Net sales for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.47 134.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.47 134.10 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.38 134.10 Td ($14.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.27 134.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.10 134.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.93 134.10 Td (, compared to the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 122.10 Td (, with decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.91 122.10 Td ($8.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.81 122.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.64 122.10 Td (7.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.47 122.10 Td (, in our CLC segment and decreases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.92 122.10 Td ($5.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.81 122.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.64 122.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.47 122.10 Td (, in our SLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (segment. ) Tj ET Q q 0 0 0 rg BT 88.14 110.10 Td (The decreases in both SLS and CLC segment sales included decreases due to the unfavorable impact of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (exchange rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (The decrease in our CLC segment sales was primarily due to lower materials processing, medical and machine vision ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (application sales as well as lower sales for scientific and government research programs partially of) Tj ET Q q 0 0 0 rg BT 448.01 62.10 Td (fset by higher bio-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (instrumentation application sales. ) Tj ET Q q 0 0 0 rg BT 186.46 50.10 Td (The decrease in our SLS segment sales was primarily due to lower shipments for advanced ) 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 (packaging, medical and materials processing applications partially of) Tj ET Q q 0 0 0 rg BT 326.39 742.10 Td (fset by higher shipments for semiconductor applications, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (scientific and government research programs and military applications. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (GROSS PROFIT) 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 (Consolidated) 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 (Our gross profit rate increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.40 658.10 Td (44.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.23 658.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.72 658.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.49 658.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.79 658.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.79 658.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.23 658.10 Td (40.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.06 658.10 Td ( and increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.03 658.10 Td (44.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.86 658.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.30 658.10 Td (41.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.13 658.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.43 646.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.43 646.10 Td ( compared to the same periods one year ago.) 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 (3.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 622.10 Td ( second quarter increase in the gross profit rate was primarily due to favorable product mar) Tj ET Q q 0 0 0 rg BT 452.17 622.10 Td (gins \(3.2%\) as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (favorable mix for systems in the microelectronics market, particularly in flat panel display applications, favorable mix in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (OEM components and instrumentation and materials processing markets, the impact of higher volumes in certain business units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (and the favorable impact from foreign currency fluctuations partially of) Tj ET Q q 0 0 0 rg BT 336.09 586.10 Td (fset by the impact of lower service revenues in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (microelectronics market. ) Tj ET Q q 0 0 0 rg BT 151.35 574.10 Td (Also contributing to the increase in gross profit rate were lower warranty costs \(0.2%\) due to fewer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (warranty events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 538.10 Td (3.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 538.10 Td ( increase in the gross profit rate during the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.48 538.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.48 538.10 Td ( was primarily due to favorable product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (mar) Tj ET Q q 0 0 0 rg BT 65.37 526.10 Td (gins \(3.0%\) as a result of favorable mix for systems in the microelectronics market, particularly in flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (applications, the favorable impact from foreign currency fluctuations, favorable mix in the OEM components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (instrumentation and materials processing markets and the impact of higher volumes in certain business units. ) Tj ET Q q 0 0 0 rg BT 487.68 502.10 Td (Also contributing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (to the increase in gross profit rate were lower warranty costs \(0.2%\) due to fewer warranty events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (Our gross profit rate has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 272.81 466.10 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 50.00 454.10 Td (on volume orders, shipment volumes, our ability to manufacture advanced and more complex products, manufacturing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 442.10 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 50.00 430.10 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 50.00 418.10 Td (foreign currency fluctuations, particularly the recent volatility in the Euro and to a lesser extent, the Japanese ) Tj ET Q q 0 0 0 rg BT 488.08 418.10 Td (Y) Tj ET Q q 0 0 0 rg BT 494.30 418.10 Td (en and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (Korean ) Tj ET Q q 0 0 0 rg BT 81.75 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 90.39 406.10 Td (on.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 382.10 Td (Specialty Lasers and Systems) 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 gross profit rate in our SLS segment increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.06 358.10 Td (47.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.89 358.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.38 358.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 358.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.45 358.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.45 358.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.89 358.10 Td (44.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.72 358.10 Td ( and increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (47.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 346.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.27 346.10 Td (44.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.10 346.10 Td ( in the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.31 346.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.31 346.10 Td ( compared to the same periods one year ago.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 322.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 322.10 Td ( second quarter increase in the gross profit rate was primarily due to favorable product mar) Tj ET Q q 0 0 0 rg BT 452.17 322.10 Td (gins \(3.4%\) as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (favorable mix for systems in the microelectronics market, particularly in flat panel display applications, the impact of higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (volumes in certain business units and the favorable impact from foreign currency fluctuations partially of) Tj ET Q q 0 0 0 rg BT 470.80 298.10 Td (fset by the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (lower service revenues in the microelectronics market and unfavorable mix in the bio-instrumentation market. ) Tj ET Q q 0 0 0 rg BT 492.35 286.10 Td (Also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (contributing to the increase in gross profit rate were lower warranty costs \(0.1%\) due to fewer warranty events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 250.10 Td (3.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 250.10 Td ( increase in the gross profit rate during the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.48 250.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.48 250.10 Td ( was primarily due to favorable product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (mar) Tj ET Q q 0 0 0 rg BT 65.37 238.10 Td (gins \(3.3%\) as a result of favorable mix for systems in the microelectronics market, particularly in flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (applications, and the favorable impact from foreign currency fluctuations partially of) Tj ET Q q 0 0 0 rg BT 389.41 226.10 Td (fset by the impact of lower service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (revenues in the microelectronics and materials processing markets and unfavorable mix in the bio-instrumentation market. ) Tj ET Q q 0 0 0 rg BT 541.51 214.10 Td (Also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (contributing to the increase in gross profit rate were lower warranty costs \(0.3%\) due to fewer warranty events.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (Commer) Tj ET Q q 0 0 0 rg BT 87.58 178.10 Td (cial Lasers and Components) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 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 268.28 154.10 Td (36.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.11 154.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.60 154.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.37 154.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.67 154.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.67 154.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.11 154.10 Td (34.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.94 154.10 Td ( and increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (36.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 142.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.27 142.10 Td (34.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.10 142.10 Td ( in the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.31 142.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.31 142.10 Td ( compared to the same periods one year ago.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 118.10 Td (2.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 118.10 Td ( second quarter increase in the gross profit rate was primarily due to favorable product costs \(1.9%\) and lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td (warranty costs \(0.6%\) due to fewer warranty events partially of) Tj ET Q q 0 0 0 rg BT 303.06 106.10 Td (fset by higher other costs \(0.4%\) as a percentage of sales due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (higher inventory provisions in certain business units and higher freight costs. ) Tj ET Q q 0 0 0 rg BT 360.32 94.10 Td (The 1.9% product mar) Tj ET Q q 0 0 0 rg BT 450.11 94.10 Td (gin improvement results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (primarily from favorable mix in the OEM components and instrumentation and materials processing markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 58.10 Td (1.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 58.10 Td ( increase in the gross profit rate during the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.48 58.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.48 58.10 Td ( was primarily attributable to favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (product costs \(2.0%\) partially of) Tj ET Q q 0 0 0 rg BT 179.51 46.10 Td (fset by higher other costs \(0.1%\) as a percentage of sales due to higher inventory provisions in ) 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 (certain business units. ) Tj ET Q q 0 0 0 rg BT 140.36 742.10 Td (The 2.0% product mar) Tj ET Q q 0 0 0 rg BT 230.15 742.10 Td (gin improvement results primarily from favorable mix in the OEM components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (and instrumentation and materials processing markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 694.10 Td (TING EXPENSES:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 558.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 617.60 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 617.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 617.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 617.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 617.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 617.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 587.60 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 587.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 587.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.00 587.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.00 587.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.00 587.60 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 265 670.6 m 335 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 670.6 m 339 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 670.6 m 409 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 670.6 m 413 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 670.6 m 483 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 670.6 m 487 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 670.6 m 557 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 657.6 m 335 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 657.6 m 339 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 657.6 m 409 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 657.6 m 483 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483 657.6 m 487 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 657.6 m 557 657.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 632.6 m 335 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 632.6 m 409 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 632.6 m 483 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 632.6 m 557 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 572.6 m 335 572.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 572.6 m 409 572.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 572.6 m 483 572.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 572.6 m 557 572.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 558.6 m 335 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 556.6 m 335 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 558.6 m 409 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 556.6 m 409 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 558.6 m 483 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 556.6 m 483 556.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 558.6 m 557 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 556.6 m 557 556.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.10 674.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.35 661.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.35 661.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.45 636.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.35 644.83 Td (Per) Tj ET Q q 0 0 0 rg BT 362.19 644.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.35 636.83 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.45 636.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.35 644.83 Td (Per) Tj ET Q q 0 0 0 rg BT 510.19 644.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.35 636.83 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.70 621.83 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 607.27 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.50 607.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 607.28 Td (20,955) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 607.28 Td (10.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 607.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 607.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 607.27 Td (21,024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 607.27 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 607.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 592.27 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 592.28 Td (40,940) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 592.28 Td (20.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 592.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 592.27 Td (39,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 592.27 Td (19.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 592.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 577.27 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.15 577.28 Td (700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 577.28 Td (0.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 577.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 577.27 Td (666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 577.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 577.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 562.27 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.50 562.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 562.28 Td (62,595) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 562.28 Td (31.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 562.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 562.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 562.27 Td (61,172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 562.27 Td (30.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 562.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 53.50 469.60 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 469.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 469.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 469.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 469.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.50 439.60 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 439.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 439.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 439.60 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 265.5 522.6 m 335.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 522.6 m 339.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 522.6 m 409.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 522.6 m 413.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 522.6 m 483.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 522.6 m 487.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 522.6 m 557.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 522.6 m 335.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 509.6 m 335.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 522.6 m 339.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 509.6 m 339.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 522.6 m 409.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 509.6 m 409.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 522.6 m 483.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 509.6 m 483.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 522.6 m 487.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 509.6 m 487.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 522.6 m 557.5 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 509.6 m 557.5 509.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 484.6 m 335.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 484.6 m 409.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 484.6 m 483.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 484.6 m 557.5 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 424.6 m 409.5 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 424.6 m 557.5 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 424.6 m 335.5 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 410.6 m 335.5 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 408.6 m 335.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 424.6 m 409.5 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 410.6 m 409.5 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 408.6 m 409.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 424.6 m 483.5 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 410.6 m 483.5 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 408.6 m 483.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 424.6 m 557.5 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 410.6 m 557.5 410.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 408.6 m 557.5 408.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.40 526.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.85 513.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.85 513.83 Td (April 4, 2015) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.95 488.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.85 496.83 Td (Per) Tj ET Q q 0 0 0 rg BT 362.69 496.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.85 488.83 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.95 488.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.85 496.83 Td (Per) Tj ET Q q 0 0 0 rg BT 510.69 496.83 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.85 488.83 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.20 473.83 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 459.27 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.00 459.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 459.28 Td (40,095) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 459.28 Td (10.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 459.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 459.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 459.27 Td (40,197) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 459.27 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 459.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 444.27 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 444.28 Td (77,714) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 444.28 Td (19.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 444.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 444.27 Td (77,623) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 444.27 Td (19.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 444.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 429.27 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 429.28 Td (1,401) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 429.28 Td (0.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 429.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 429.27 Td (1,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 429.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 429.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 414.27 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.00 414.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 414.28 Td (119,210) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 414.28 Td (30.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 414.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 414.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 414.27 Td (119,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 414.27 Td (29.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 414.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 386.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 386.10 Td (ch and development) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 362.10 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 338.10 Td (Research and development \(R&D\) expenses decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.45 338.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.35 338.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.18 338.10 Td (0.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.01 338.10 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.33 338.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.10 338.10 Td ( fiscal quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 338.10 Td (April2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 326.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 326.10 Td ( compared to the same quarter one year ago.) Tj ET Q q 0 0 0 rg BT 249.18 326.10 Td (The decrease was primarily due to lower project spending of $0.4 million due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 314.10 Td (to the favorable impact of foreign exchange rates and $0.4 million lower char) Tj ET Q q 0 0 0 rg BT 359.42 314.10 Td (ges for increases in deferred compensation plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 302.10 Td (liabilities partially of) Tj ET Q q 0 0 0 rg BT 133.69 302.10 Td (fset by $0.7 million due to incremental spending from the acquisitions of ) Tj ET Q q 0 0 0 rg BT 427.62 302.10 Td (T) Tj ET Q q 0 0 0 rg BT 433.37 302.10 Td (insley and Raydiance in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 290.10 Td (fourth quarter of fiscal 2015. On a segment basis as compared to the prior year period, SLS research and development spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 278.10 Td (increased $0.9 million primarily due to the acquisitions of ) Tj ET Q q 0 0 0 rg BT 284.21 278.10 Td (T) Tj ET Q q 0 0 0 rg BT 289.97 278.10 Td (insley and Raydiance partially of) Tj ET Q q 0 0 0 rg BT 421.97 278.10 Td (fset by lower project spending due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 266.10 Td (to the favorable impact of foreign exchange rates net of lower customer reimbursements. CLC spending decreased $0.6 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 254.10 Td (primarily due to lower project spending and higher customer reimbursements. Corporate and other spending decreased $0.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (million primarily due to lower char) Tj ET Q q 0 0 0 rg BT 190.62 242.10 Td (ges for increases in deferred compensation plan liabilities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 218.10 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 218.10 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 218.10 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (R&D expenses decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.68 194.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.57 194.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.40 194.10 Td (0.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.23 194.10 Td (, during the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.50 194.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.11 194.10 Td ( compared to the same period one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (year ago. ) Tj ET Q q 0 0 0 rg BT 88.96 182.10 Td (The decrease for the first six months was primarily due to lower project spending of $1.3 million including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (favorable impact of foreign exchange rates and lower spending on labor net of lower customer reimbursements as well as $0.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 158.10 Td (million lower char) Tj ET Q q 0 0 0 rg BT 123.69 158.10 Td (ges for increases in deferred compensation plan liabilities. ) Tj ET Q q 0 0 0 rg BT 358.70 158.10 Td (The decreases were partially of) Tj ET Q q 0 0 0 rg BT 483.45 158.10 Td (fset by increases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td ($1.5 million due to incremental spending from the acquisitions of ) Tj ET Q q 0 0 0 rg BT 314.49 146.10 Td (T) Tj ET Q q 0 0 0 rg BT 320.25 146.10 Td (insley and Raydiance in the fourth quarter of fiscal 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (and $0.1 million higher stock-based compensation expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (On a segment basis as compared to the prior year period, SLS research and development spending increased $0.8 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (primarily due to the acquisitions of ) Tj ET Q q 0 0 0 rg BT 192.57 98.10 Td (T) Tj ET Q q 0 0 0 rg BT 198.33 98.10 Td (insley and Raydiance partially of) Tj ET Q q 0 0 0 rg BT 330.32 98.10 Td (fset by lower project spending including the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (impact of foreign exchange rates and lower spending net of lower customer reimbursements. CLC spending decreased $0.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (million primarily due to lower project spending including higher customer reimbursements. Corporate and other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (decreased $0.3 million due to lower char) Tj ET Q q 0 0 0 rg BT 212.82 62.10 Td (ges for increases in deferred compensation plan liabilities partially of) Tj ET Q q 0 0 0 rg BT 489.48 62.10 Td (fset by higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (stock-based compensation expense.) 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 50.00 730.10 Td (Selling, general and administrative) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (Selling, general and administrative \(SG&A\) expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.58 682.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.47 682.10 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.79 682.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.56 682.10 Td ( fiscal quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.86 682.10 Td (April2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 670.10 Td ( compared to the same quarter one year ago. ) Tj ET Q q 0 0 0 rg BT 249.18 670.10 Td (The increase was primarily due to $2.8 million higher consulting and legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (costs related to acquisitions, of which $3.6 million was related to the acquisition of Rofin, and $0.6 million higher stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (compensation expense due to lower estimated forfeitures. In addition, the increase included $0.2 million higher other variable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (spending including incremental spending from the acquisitions of ) Tj ET Q q 0 0 0 rg BT 314.77 634.10 Td (T) Tj ET Q q 0 0 0 rg BT 320.52 634.10 Td (insley and Raydiance in the fourth quarter of fiscal 2015 net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (of the favorable impact of foreign exchange rates. ) Tj ET Q q 0 0 0 rg BT 251.67 622.10 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 374.76 622.10 Td (fset by $2.1 million lower char) Tj ET Q q 0 0 0 rg BT 497.89 622.10 Td (ges for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (increases in deferred compensation plan liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (On a segment basis as compared to the prior year period, SLS segment expenses were flat with the impact due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (acquisitions of ) Tj ET Q q 0 0 0 rg BT 110.92 574.10 Td (T) Tj ET Q q 0 0 0 rg BT 116.68 574.10 Td (insley and Raydiance and higher payroll spending of) Tj ET Q q 0 0 0 rg BT 327.28 574.10 Td (fset by the favorable impact of foreign exchange rates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (lower other variable spending. CLC spending was flat with higher payroll spending of) Tj ET Q q 0 0 0 rg BT 394.47 562.10 Td (fset by the favorable impact of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (exchange rates. Spending for Corporate and other increased $1.4 million primarily due to higher consulting and legal costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (related to acquisitions and higher stock-based compensation expense partially of) Tj ET Q q 0 0 0 rg BT 371.67 538.10 Td (fset by lower char) Tj ET Q q 0 0 0 rg BT 443.40 538.10 Td (ges for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (compensation plan liabilities.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 502.10 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 502.10 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (SG&A) Tj ET Q q 0 0 0 rg BT 77.23 478.10 Td ( expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.58 478.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.48 478.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.31 478.10 Td (0.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.14 478.10 Td (, during the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.40 478.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.01 478.10 Td ( compared to the same period one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (year ago. ) Tj ET Q q 0 0 0 rg BT 88.96 466.10 Td (The increase for the first six months was primarily due to $2.8 million higher consulting and legal costs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (acquisitions, of which $3.6 million was related to the acquisition of Rofin, and $0.2 million higher other variable spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (including incremental spending from the acquisitions of ) Tj ET Q q 0 0 0 rg BT 276.16 442.10 Td (T) Tj ET Q q 0 0 0 rg BT 281.91 442.10 Td (insley and Raydiance in the fourth quarter of fiscal 2015 net of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (favorable impact of foreign exchange rates. ) Tj ET Q q 0 0 0 rg BT 226.12 430.10 Td (The increases were partially of) Tj ET Q q 0 0 0 rg BT 349.21 430.10 Td (fset by $1.8 million lower char) Tj ET Q q 0 0 0 rg BT 472.34 430.10 Td (ges for increases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (deferred compensation plan liabilities and $1.1 million lower payroll spending primarily due to the favorable impact of foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (exchange rates. On a segment basis as compared to the prior year period, SLS segment expenses decreased $0.2 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (primarily due to lower payroll and other variable spending resulting from the favorable impact of foreign exchange rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 382.10 Td (fset by the impact due to the acquisitions of ) Tj ET Q q 0 0 0 rg BT 270.69 382.10 Td (T) Tj ET Q q 0 0 0 rg BT 276.45 382.10 Td (insley and Raydiance. CLC spending decreased $0.5 million primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (due to lower payroll resulting from the favorable impact of foreign exchange rates. Spending for Corporate and other increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td ($0.8 million primarily due to) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 165.82 358.10 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 168.32 358.10 Td (higher consulting and legal costs related to acquisitions partially of) Tj ET Q q 0 0 0 rg BT 436.13 358.10 Td (fset by lower char) Tj ET Q q 0 0 0 rg BT 507.86 358.10 Td (ges for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (increases in deferred compensation plan liabilities.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (Amortization of intangible assets) 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 (Amortization of intangible assets was flat in both the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.12 298.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.54 298.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.49 298.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.10 298.10 Td ( compared to the same periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (last year) Tj ET Q q 0 0 0 rg BT 83.04 286.10 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 441.90 286.10 Td (fset by the completion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (amortization 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 50.00 262.10 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 50.00 250.10 Td (OTHER INCOME \(EXPENSE\) NET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (Other income, net of other expense, decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.42 226.10 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.31 226.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.75 226.10 Td ($3.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.64 226.10 Td ( during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.46 226.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.88 226.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.83 226.10 Td (April2, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 214.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 122.66 214.10 Td (, compared to the same periods one year ago. ) Tj ET Q q 0 0 0 rg BT 305.47 214.10 Td (The second fiscal quarter decrease was primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (losses, including expenses, on our deferred compensation plan assets \($2.5 million\) and higher net foreign exchange losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (\($1.3 million\). ) Tj ET Q q 0 0 0 rg BT 110.37 190.10 Td (The increase in net foreign exchange losses for the quarter was due to lower gains from favorable changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (foreign exchange rates, primarily the weakening of the Euro, coupled with the timing of placement of hedges that occurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (the second quarter of fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 185.61 166.10 Td (The decrease for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.44 166.10 Td (six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.44 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.39 166.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.00 166.10 Td ( was primarily due to higher losses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (including expenses, on our deferred compensation plan assets \($2.1 million\) and higher net foreign exchange losses \($1.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (million\) partially of) Tj ET Q q 0 0 0 rg BT 128.69 142.10 Td (fset by $0.2 million higher interest income. ) Tj ET Q q 0 0 0 rg BT 306.25 142.10 Td (The increase in net foreign exchange losses for the six months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 130.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.43 130.10 Td ( was due to higher unhedged exposures and lar) Tj ET Q q 0 0 0 rg BT 316.42 130.10 Td (ger realized losses on cash conversions due to the significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (movement of the Euro, Chinese RMB and Korean ) Tj ET Q q 0 0 0 rg BT 252.83 118.10 Td (W) Tj ET Q q 0 0 0 rg BT 261.47 118.10 Td (on against the U.S. dollar in first six months of fiscal 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (INCOME ) Tj ET Q q 0 0 0 rg BT 94.54 94.10 Td (T) Tj ET Q q 0 0 0 rg BT 100.47 94.10 Td (AXES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 75.63 70.10 Td (fective tax rate on income before income taxes for the second quarter of fiscal 2016 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.27 70.10 Td (26.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.10 70.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 490.84 70.10 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (on income before income taxes for the first six months of fiscal 2016 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.37 58.10 Td (25.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.20 58.10 Td ( were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.14 58.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.97 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.10 Td (primarily due to dif) Tj ET Q q 0 0 0 rg BT 127.86 46.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax 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 (including the Singapore tax exemption, the benefit of foreign tax credits and the benefit of federal research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (tax credits including renewal of the federal research and development credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 423.28 730.10 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 544.72 730.10 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (by deemed dividend inclusions under the Subpart F tax rules, stock-based compensation not deductible for tax purposes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (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 50.00 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 75.63 682.10 Td (fective tax rate on income before income taxes for the second quarter of fiscal 2015 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.27 682.10 Td (23.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.10 682.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 490.84 682.10 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (on income before income taxes for the first six months of fiscal 2015 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.37 670.10 Td (24.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.20 670.10 Td ( were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.14 670.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.97 670.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (primarily due to dif) Tj ET Q q 0 0 0 rg BT 127.86 658.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (including South Korea and Singapore tax exemptions, the benefit of foreign tax credits and the benefit of the federal research ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (and development tax credits including renewal of the federal research and development tax credits for fiscal 2014. ) Tj ET Q q 0 0 0 rg BT 509.08 634.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 145.06 622.10 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 50.00 610.10 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 50.00 574.10 Td (LIQUIDITY) Tj ET Q q 0 0 0 rg BT 104.09 574.10 Td ( ) Tj ET Q q 0 0 0 rg BT 106.04 574.10 Td (AND CAPIT) Tj ET Q q 0 0 0 rg BT 160.57 574.10 Td (AL) Tj ET Q q 0 0 0 rg BT 173.91 574.10 Td ( RESOURCES) 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 (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.95 550.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.56 550.10 Td (, we had assets classified as cash and cash equivalents and short-term investments, in an aggregate amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td ($361.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.89 538.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.09 538.10 Td ($325.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.99 538.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.20 538.10 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.91 538.10 Td (. ) Tj ET Q q 0 0 0 rg BT 306.36 538.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.31 538.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.91 538.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.17 538.10 Td ($323.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.06 538.10 Td ( of this cash and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (securities was heldin certain of our foreign subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.27 526.10 Td ($109.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.16 526.10 Td ( of which was denominated in currencies other than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (U.S. dollar) Tj ET Q q 0 0 0 rg BT 93.06 514.10 Td (. ) Tj ET Q q 0 0 0 rg BT 97.88 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 106.51 514.10 Td (e currently have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.68 514.10 Td ($308.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.57 514.10 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 50.00 502.10 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 50.00 490.10 Td (to support our domestic operations. If, however) Tj ET Q q 0 0 0 rg BT 239.56 490.10 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 50.00 478.10 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 460.29 478.10 Td (The amount of the taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 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 538.26 466.10 Td (W) Tj ET Q q 0 0 0 rg BT 546.89 466.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 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 50.00 442.10 Td (secondarily maximizing yield on these assets. ) Tj ET Q q 0 0 0 rg BT 235.05 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 243.69 442.10 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 50.00 430.10 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 50.00 418.10 Td (of these financial institutions or financial instruments fail or encounter dif) Tj ET Q q 0 0 0 rg BT 345.29 418.10 Td (ficulties. ) Tj ET Q q 0 0 0 rg BT 382.32 418.10 Td (T) Tj ET Q q 0 0 0 rg BT 387.73 418.10 Td (o date, we have not experienced any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 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 469.19 406.10 Td (, we can provide no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 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 50.00 382.10 Td (conditions in the financial markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 365.10 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 50.00 353.10 Td (million, $42.3 million and $62.7 million, respectively) Tj ET Q q 0 0 0 rg BT 263.77 353.10 Td (, of cash and securities heldin certain of our foreign subsidiaries to U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 341.10 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 475.74 341.10 Td (. ) Tj ET Q q 0 0 0 rg BT 480.19 341.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.14 341.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.75 341.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 329.10 Td (this subsidiary had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.50 329.10 Td ($203.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.39 329.10 Td ( of U.S. dollar denominated investments primarily in U.S. ) Tj ET Q q 0 0 0 rg BT 420.34 329.10 Td (T) Tj ET Q q 0 0 0 rg BT 426.10 329.10 Td (reasury Securities, corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 317.10 Td (notes and commercial paper) Tj ET Q q 0 0 0 rg BT 161.90 317.10 Td (. In ) Tj ET Q q 0 0 0 rg BT 177.18 317.10 Td (April 2016, we converted an additional $22.6 million of cash and securities held in certain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 305.10 Td (our foreign subsidiaries to U.S. dollars and invested those funds within a European subsidiary whose functional currency is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 293.10 Td (U.S. dollar) Tj ET Q q 0 0 0 rg BT 93.06 293.10 Td (. ) Tj ET Q q 0 0 0 rg BT 97.50 293.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 146.84 293.10 Td (, there is no translation expense arising from this entity holding U.S. dollar denominated investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 281.10 Td (The converted funds are not intended to be repatriated to the U.S. and no U.S. tax was triggered on the transfer of these funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 269.10 Td (to the European subsidiary) Tj ET Q q 0 0 0 rg BT 156.27 269.10 Td (. See ITEM 3. QUANTIT) Tj ET Q q 0 0 0 rg BT 258.78 269.10 Td (A) Tj ET Q q 0 0 0 rg BT 264.89 269.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 289.61 269.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 350.19 269.10 Td (A) Tj ET Q q 0 0 0 rg BT 356.30 269.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 450.75 269.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 485.01 269.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 529.56 269.10 Td ( RISK ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 257.10 Td (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 50.00 233.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.38 233.10 Td (ces and Uses of Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 221.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 209.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 96.56 209.10 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 50.00 197.10 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 50.00 185.10 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 50.00 173.10 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 50.00 161.10 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 50.00 149.10 Td (flows and the notes to condensed consolidated financial statements:) Tj ET Q endstream endobj 77 0 obj <>] /Rotate 0 /Contents 78 0 R>> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 612.00 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 701.50 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 701.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 701.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 701.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 671.50 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 671.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 671.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 671.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 641.50 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 641.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 641.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 641.50 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 364 735.5 m 454 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 735.5 m 458 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 735.5 m 548 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 714.5 m 454 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 735.5 m 548 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 714.5 m 548 714.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.90 739.73 Td (Six 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 395.35 726.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.50 718.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.35 726.73 Td (April 4,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.50 718.73 Td (2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 704.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.15 705.73 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 691.17 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.50 691.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 422.65 691.18 Td (45,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 691.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 691.17 Td (80,414) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 676.17 Td (Sales of shares under employee stock plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.65 676.18 Td (3,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 676.17 Td (3,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 661.17 Td (Repurchases of common stock) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 661.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.30 661.22 Td (\(25,009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 661.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 646.17 Td (Capital expenditures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.30 646.23 Td (\(16,256) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 646.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.30 646.22 Td (\(12,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 646.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 631.17 Td (Short-term borrowings, net of repayments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.65 631.18 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 631.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 616.17 Td (Debt issuance costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.30 616.23 Td (\(2,137) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 616.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 616.17 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 600.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 588.00 Td (Net cash provided by operating activities decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.03 588.00 Td ($34.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.92 588.00 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 588.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.53 588.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.01 588.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.01 588.00 Td ( compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (same period one year ago. ) Tj ET Q q 0 0 0 rg BT 157.00 576.00 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 50.00 564.00 Td (timing of shipments of lar) Tj ET Q q 0 0 0 rg BT 153.70 564.00 Td (ge systems from inventory and lower cash flows from accounts receivable. ) Tj ET Q q 0 0 0 rg BT 455.09 564.00 Td (W) Tj ET Q q 0 0 0 rg BT 463.73 564.00 Td (e believe that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 552.00 Td (existing cash, cash equivalents and short term investments combined with cash to be provided by operating activities, amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 540.00 Td (available under our lines of credit and the access to financing contemplated by the debt commitment letter from Barclays and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 528.00 Td (BAML) Tj ET Q q 0 0 0 rg BT 78.52 528.00 Td ( will be adequate to cover our working capital needs and planned capital expenditures for at least the next 12 months to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 516.00 Td (the extent such items are known or are reasonably determinable based on current business and market conditions. However) Tj ET Q q 0 0 0 rg BT 542.22 516.00 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 504.00 Td (may elect to finance certain of our capital expenditure requirements through borrowings under our bank credit facilities or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 492.00 Td (sources of capital. ) Tj ET Q q 0 0 0 rg BT 124.79 492.00 Td (W) Tj ET Q q 0 0 0 rg BT 133.43 492.00 Td (e continue to follow our strategy to further strengthen our financial position by using available cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 480.00 Td (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 50.00 468.00 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 456.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 456.00 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 50.00 444.00 Td (However) Tj ET Q q 0 0 0 rg BT 86.25 444.00 Td (, we cannot accurately predict the timing, size and success of our acquisition ef) Tj ET Q q 0 0 0 rg BT 402.34 444.00 Td (forts or our associated potential capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 432.00 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 526.35 432.00 Td (W) Tj ET Q q 0 0 0 rg BT 534.99 432.00 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 420.00 Td (expect to fund future acquisitions through additional borrowings \(as in our pending acquisition of Rofin\), existing cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 408.00 Td (balances and cash flows from operations. If required, we will consider the issuance of securities. ) Tj ET Q q 0 0 0 rg BT 438.02 408.00 Td (The extent to which we will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 396.00 Td (willing or able to use our common stock to make acquisitions will depend on its market value at the time and the willingness of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 384.00 Td (potential sellers to accept it as full or partial payment.) 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 50.00 372.00 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 360.00 Td (On March 16, 2016, we entered into a debt commitment letter with Barclays Bank PLC \("Barclays"\) and on ) Tj ET Q q 0 0 0 rg BT 483.61 360.00 Td (April 5, 2016, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 348.00 Td (entered into an amended and restated debt commitment letter with Barclays and both Bank of ) Tj ET Q q 0 0 0 rg BT 425.72 348.00 Td (America, N.A. and Merrill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 336.00 Td (L) Tj ET Q q 0 0 0 rg BT 55.56 336.00 Td (ynch, Pierce, Fenner & Smith Incorporated \(together) Tj ET Q q 0 0 0 rg BT 266.20 336.00 Td (, "BAML"\). Pursuant to the commitment letter) Tj ET Q q 0 0 0 rg BT 452.27 336.00 Td (, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 324.00 Td (Barclays and BAML) Tj ET Q q 0 0 0 rg BT 132.94 324.00 Td ( have committed to provide us with debt financing in an aggregate principal amount of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.79 324.00 Td ($850.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 312.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 312.00 Td ( to finance the acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 223.12 312.00 Td (The obligations of Barclays and BAML) Tj ET Q q 0 0 0 rg BT 381.88 312.00 Td ( under the commitment letter are subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 300.00 Td (certain conditions, including the consummation of the acquisition in accordance with the terms and conditions of the definitive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 288.00 Td (agreement and other customary closing obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 264.00 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 50.00 252.00 Td (totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.05 252.00 Td ($63.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.94 252.00 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.55 252.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.16 252.00 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.93 252.00 Td ($55.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.82 252.00 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 420.05 252.00 Td (These unsecured credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 240.00 Td (international facilities were used in Europe and Japan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.91 240.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.14 240.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.62 240.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.62 240.00 Td (. Our domestic line of credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 228.00 Td (consists of a $50 million unsecured revolving credit account, which expires on May 31, 2017 and is subject to covenants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 216.00 Td (related to financial ratios and tangible net worth. ) Tj ET Q q 0 0 0 rg BT 246.69 216.00 Td (W) Tj ET Q q 0 0 0 rg BT 255.33 216.00 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 449.99 216.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.59 216.00 Td (. ) Tj ET Q q 0 0 0 rg BT 508.04 216.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 204.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.61 204.00 Td (, we have drawn ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.64 204.00 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.53 204.00 Td ( and have used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.17 204.00 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.06 204.00 Td ( for letters of credit against our domestic line of credit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 180.00 Td (In fiscal 2015, under plans authorized by the Board of Directors, we repurchased and retired 1,302,323 shares of outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 168.00 Td (common stock under this plan at an average price of $57.59 per share for a total of $75.0 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 156.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 144.00 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 255.21 144.00 Td (4.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.71 144.00 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.16 144.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.77 144.00 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.47 144.00 Td (5.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.97 144.00 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.96 144.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.67 144.00 Td (. ) Tj ET Q q 0 0 0 rg BT 497.49 144.00 Td (The decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 132.00 Td (our ratio is primarily due to increases in accounts payable, income taxes payable, short-term borrowings and other current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 120.00 Td (liabilities partially of) Tj ET Q q 0 0 0 rg BT 133.69 120.00 Td (fset by increases in cash and short-term investments and inventories. Our cash and cash equivalents, short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 108.00 Td (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 96.00 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 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 720.50 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 720.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 720.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 720.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 690.50 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 370.50 690.50 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 690.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.50 690.50 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 370.5 733.5 m 460.5 733.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464.5 733.5 m 554.5 733.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 736.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.85 737.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.05 737.73 Td (October 3, 2015) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 723.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.65 724.73 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 710.17 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 373.00 710.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.15 710.18 Td (157,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.00 710.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 710.17 Td (130,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 695.17 Td (Short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.15 695.18 Td (203,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 695.17 Td (194,908) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 680.17 Td (Working capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.15 680.18 Td (575,325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 680.17 Td (530,093) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 664.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 652.00 Td (Contractual Obligations and Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 254.17 652.00 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 628.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 628.00 Td (e have no of) Tj ET Q q 0 0 0 rg BT 107.60 628.00 Td (f-balance sheet arrangements as defined under Regulation S-K of the Securities ) Tj ET Q q 0 0 0 rg BT 427.21 628.00 Td (Act of 1933. Information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 616.00 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 50.00 604.00 Td (suppliers and purchase obligations is provided in Item 7 Management) Tj ET Q q 0 0 0 rg BT 335.77 604.00 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 404.94 604.00 Td (Analysis of Financial Condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 592.00 Td (Results of Operations of our ) Tj ET Q q 0 0 0 rg BT 169.70 592.00 Td (Annual Report on Form 10-K for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.20 592.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.90 592.00 Td (. ) Tj ET Q q 0 0 0 rg BT 459.72 592.00 Td (There have been no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 580.00 Td (material changes in contractual obligations outside of the ordinary course of business, other than noted in "Mer) Tj ET Q q 0 0 0 rg BT 494.06 580.00 Td (ger) Tj ET Q q 0 0 0 rg BT 506.63 580.00 Td (-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 568.00 Td (Commitment and Fees" below) Tj ET Q q 0 0 0 rg BT 170.92 568.00 Td (, since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.96 568.00 Td (October3, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.67 568.00 Td (. Information regarding our other financial commitments at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.21 568.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.82 568.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 556.00 Td (is provided in the notes to the condensed consolidated financial statements in this report. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 532.00 Td (Merger) Tj ET Q q 0 0 0 rg BT 81.82 532.00 Td (-r) Tj ET Q q 0 0 0 rg BT 89.41 532.00 Td (elated Commitment and Fees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 508.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 508.00 Td (e have an agreement with a financial advisor) Tj ET Q q 0 0 0 rg BT 236.77 508.00 Td (, Barclays, in relation to the pending acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 469.59 508.00 Td (W) Tj ET Q q 0 0 0 rg BT 478.23 508.00 Td (e have agreed to pay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 496.00 Td (Barclays a fee of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.22 496.00 Td ($10.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.11 496.00 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.11 496.00 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.00 496.00 Td ( of which was paid upon delivery of the fairness opinion in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 484.00 Td (second quarter of fiscal 2016, and was recorded in the selling, general and administrative line of the condensed consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 472.00 Td (statements of operations, and the remaining portion of which will be paid upon, and subject to, consummation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 460.00 Td (acquisition. For our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.10 460.00 Td ($850.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.00 460.00 Td ( debt financing commitment with Barclays and BAML, we paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.99 460.00 Td ($2.137 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.88 460.00 Td ( of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 448.00 Td (issuance costs in the second quarter of fiscal 2016 and recorded it to other assets on our condensed consolidated balance sheets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 436.00 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 436.00 Td (e have also agreed to pay to Barclays and BAML) Tj ET Q q 0 0 0 rg BT 255.15 436.00 Td ( together approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.17 436.00 Td ($17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.06 436.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.50 436.00 Td ($7.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.39 436.00 Td ( for underwriting and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 424.00 Td (upfront fees, respectively) Tj ET Q q 0 0 0 rg BT 150.70 424.00 Td (, upon the close of the financing. In addition, the acquisition agreement contains certain termination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 412.00 Td (rights for Coherent and further provides that we, as applicable, may be required to pay a termination fee of $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.01 412.00 Td (65.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.91 412.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 400.00 Td (Rofin and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.22 400.00 Td ($2.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.11 400.00 Td ( to Barclays.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 376.00 Td (Changes in Financial Condition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.00 Td (Cash provided by operating activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.23 352.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.46 352.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.95 352.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.95 352.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 352.00 Td ($45.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.39 352.00 Td (, which included net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.00 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 340.00 Td ($38.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 340.00 Td (, depreciation and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.45 340.00 Td ($17.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.34 340.00 Td ( and stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.06 340.00 Td ($9.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.95 340.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 328.00 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 328.00 Td (fset by cash used by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.59 328.00 Td ($13.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.48 328.00 Td ( and net increases in deferred taxes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.74 328.00 Td ($5.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.00 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 316.00 Td (. Cash provided by operating activities during the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.84 316.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.84 316.00 Td ( was $80.4 million, which included net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.00 Td (income of $35.8 million, depreciation and amortization of $16.7 million, cash provided by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.00 Td ($1) Tj ET Q q 0 0 0 rg BT 59.63 292.00 Td (1.9 million, stock-based compensation expense of $9.2 million, net decreases in deferred taxes of $6.5 million and other net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.00 Td (of $0.3 million.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 256.00 Td (Cash used in investing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.70 256.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.92 256.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.41 256.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.41 256.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.96 256.00 Td ($21.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.85 256.00 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.72 256.00 Td ($16.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.62 256.00 Td ( net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 244.00 Td (used to acquire property and equipment and improve buildings net of proceeds from dispositions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.30 244.00 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.19 244.00 Td ( net purchases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.00 Td (of available-for) Tj ET Q q 0 0 0 rg BT 111.71 232.00 Td (-sale securities. Cash used in investing activities during the first six months of fiscal 2015 was $13.5 million, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.00 Td (which included $1) Tj ET Q q 0 0 0 rg BT 123.50 220.00 Td (1.2 million net used to acquire property and equipment and improve buildings net of proceeds from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.00 Td (dispositions and $2.3 million net purchases of available-for) Tj ET Q q 0 0 0 rg BT 286.97 208.00 Td (-sale securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.00 Td (Cash provided by financing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.23 184.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.46 184.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.95 184.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.95 184.00 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 184.00 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.39 184.00 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.26 184.00 Td ($5.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.15 184.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.00 Td (net short-term borrowings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.86 172.00 Td ($3.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.75 172.00 Td ( generated from our employee stock option and stock purchase plans partially of) Tj ET Q q 0 0 0 rg BT 543.58 172.00 Td (fset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.00 Td (by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 160.00 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.39 160.00 Td ( net settlement of restricted stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.29 160.00 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.18 160.00 Td ( of debt issuance costs. Cash used in financing activities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.00 Td (during the first six months of fiscal 2015 was $26.5 million, which included $25.0 million repurchases of common stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 136.00 Td ($5.2 million net settlement of restricted stock partially of) Tj ET Q q 0 0 0 rg BT 277.82 136.00 Td (fset by $3.7 million generated from our employee stock option and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.00 Td (stock purchase plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.00 Td (Changes in exchange rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.17 100.00 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.40 100.00 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.88 100.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.88 100.00 Td ( decreased our cash balances by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.82 100.00 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.71 100.00 Td (. Changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.00 Td (exchange rates during the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.67 88.00 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.67 88.00 Td ( increased our cash balances by $3.1 million.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.00 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 62.43505859375 m 225.771484375 62.43505859375 l s q 0 0 0 rg BT 50.00 64.00 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 64.00 Td ( ) Tj ET Q q 0 0 0 rg BT 93.44 64.00 Td (ACCOUNTING ST) Tj ET Q q 0 0 0 rg BT 176.88 64.00 Td (ANDARDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 52.00 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 50.00 742.10 Td (See Note 2. Recent ) Tj ET Q q 0 0 0 rg BT 133.03 742.10 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 50.00 730.10 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 485.50 730.10 Td (fects on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (condensed consolidated financial position, results of operations and cash flows.) 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 /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 84.99 598.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.60 598.25 Td (, the fair value of the portfolio, based on quoted market prices in active markets involving similar assets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (would decline by an immaterial amount due to their short-term maturities. ) Tj ET Q q 0 0 0 rg BT 348.63 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 357.27 586.25 Td (e have the ability to generally hold our fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (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 500.81 574.25 Td (fected to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (significant degree by the ef) Tj ET Q q 0 0 0 rg BT 158.66 562.25 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 505.38 562.25 Td (, we may sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (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 61.95 526.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.56 526.25 Td (, the fair value of our available-for) Tj ET Q q 0 0 0 rg BT 253.34 526.25 Td (-sale debt securities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.75 526.25 Td ($183.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 526.25 Td (, all of which was classified as short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (term investments. Gross unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 326.39 514.25 Td (-sale debt securities were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.68 514.25 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.57 514.25 Td ( and less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.22 514.25 Td ($0.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 502.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.55 502.25 Td (, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.72 502.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.33 502.25 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 RMB. ) Tj ET Q q 0 0 0 rg BT 505.85 430.25 Td (Additionally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (we have operations in dif) Tj ET Q q 0 0 0 rg BT 150.90 418.25 Td (ferent countries around the world with costs incurred in other local currencies, such as British Pound ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (Sterling, Singapore Dollars and Malaysian Ringgit. ) Tj ET Q q 0 0 0 rg BT 257.20 406.25 Td (As a result, our earnings, cash flows and cash balances are exposed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (fluctuations in foreign currency exchange rates. For example, we have significant manufacturing operations in Europe so that a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (weakening Euro is advantageous to the Company) Tj ET Q q 0 0 0 rg BT 250.51 382.25 Td (s financial results. ) Tj ET Q q 0 0 0 rg BT 325.31 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 333.95 382.25 Td (e attempt to limit these exposures through financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (market instruments. ) Tj ET Q q 0 0 0 rg BT 131.75 370.25 Td (W) Tj ET Q q 0 0 0 rg BT 140.39 370.25 Td (e utilize derivative instruments, primarily forward contracts with maturities of two months or less, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (manage our exposure associated with anticipated cash flows and net asset and liability positions denominated in foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (currencies. Gains and losses on the forward contracts are mitigated by gains and losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 524.15 346.25 Td (W) Tj ET Q q 0 0 0 rg BT 532.78 346.25 Td (e do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (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 61.95 154.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.56 154.25 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.82 154.25 Td ($323.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.71 154.25 Td ( of our cash, cash equivalents and short-term investments were held outside the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (U.S.in certain of our foreign operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.96 142.25 Td ($109.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.85 142.25 Td ( of which was denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 540.72 142.25 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 412.10 82.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.71 82.25 Td (. ) Tj ET Q q 0 0 0 rg BT 470.53 82.25 Td (The table presents the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.25 Td (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 88.32 46.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.93 46.25 Td ( rates.) 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 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 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 1.00 Tf ET q 0 0 0 rg BT 53.00 689.32 Td () Tj ET Q 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 484.05 690.83 Td (U.S.FairValue) 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 (1.0894) 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 (\(63,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 661.27 Td (\)) 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 (\(2,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 661.27 Td (\)) 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 (112.9137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 646.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 646.27 Td (33,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 646.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 646.27 Td (293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 631.27 Td (South Korean Won) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 631.27 Td (1,238.0000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 631.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 631.27 Td (15,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 631.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 631.27 Td (1,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 616.27 Td (Chinese RMB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 616.27 Td (6.5760) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 616.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 616.27 Td (10,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 616.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 616.27 Td (193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 601.27 Td (Singaporean Dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 601.27 Td (1.4010) 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 441.80 601.32 Td (\(4,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 601.27 Td (\)) 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 523.30 601.32 Td (\(167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 601.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 586.27 Td (Malaysian Ringgit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 586.27 Td (4.1720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 586.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 586.27 Td (2,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 586.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 586.27 Td (151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 556.27 Td (Non-Designated - For Euros:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 541.27 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 541.27 Td (117.5996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 541.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.65 541.27 Td (930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 541.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 541.27 Td (47) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (43) 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 352.69 682.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.29 682.25 Td ( \(Evaluation Date\). ) Tj ET Q q 0 0 0 rg BT 496.35 682.25 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 486.77 550.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.38 550.25 Td ( that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (have materially af) Tj ET Q q 0 0 0 rg BT 122.00 538.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 308.96 538.25 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 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 /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 50.00 706.25 Td () 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.25 Td (As we discuss more fully under the section entitled, RISKS RELA) Tj ET Q q 0 0 0 rg BT 314.74 516.25 Td (TED ) Tj ET Q q 0 0 0 rg BT 336.50 516.25 Td (T) Tj ET Q q 0 0 0 rg BT 342.43 516.25 Td (O ) Tj ET Q q 0 0 0 rg BT 351.97 516.25 Td (THE PROPOSED MERGER ) Tj ET Q q 0 0 0 rg BT 471.53 516.25 Td (WITH ROFIN, any of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.25 Td (our identified risks herein will likely be impacted by completing our acquisition of Rofin and integrating its operations.) 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 49.5 478.68505859375 m 297.9130859375 478.68505859375 l s q 0 0 0 rg BT 49.50 480.25 Td (BUSINESS ENVIRONMENT) Tj ET Q q 0 0 0 rg BT 177.41 480.25 Td ( ) Tj ET Q q 0 0 0 rg BT 179.35 480.25 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 248.18 480.25 Td (Y) Tj ET Q q 0 0 0 rg BT 255.03 480.25 Td ( ) Tj ET Q q 0 0 0 rg BT 257.35 480.25 Td (TRENDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 456.25 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 456.25 Td ( operating r) Tj ET Q q 0 0 0 rg BT 117.46 456.25 Td (esults, including net sales, net income \(loss\) and adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 398.89 456.25 Td ( in dollars and as a per) Tj ET Q q 0 0 0 rg BT 495.96 456.25 Td (centage of net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 444.25 Td (sales, as well as our) Tj ET Q q 0 0 0 rg BT 131.82 444.25 Td ( stock price have varied in the past, and our) Tj ET Q q 0 0 0 rg BT 318.31 444.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 342.85 444.25 Td (e operating r) Tj ET Q q 0 0 0 rg BT 397.65 444.25 Td (esults will continue to be subject to ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 432.25 Td (quarterly and annual fluctuations based upon numer) Tj ET Q q 0 0 0 rg BT 275.48 432.25 Td (ous factors, including those discussed in this Item 1A) Tj ET Q q 0 0 0 rg BT 499.68 432.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 420.25 Td (thr) Tj ET Q q 0 0 0 rg BT 62.65 420.25 Td (oughout this r) Tj ET Q q 0 0 0 rg BT 122.48 420.25 Td (eport. Our) Tj ET Q q 0 0 0 rg BT 167.85 420.25 Td ( stock price will continue to be subject to daily variations as well. Our) Tj ET Q q 0 0 0 rg BT 463.77 420.25 Td ( futur) Tj ET Q q 0 0 0 rg BT 488.31 420.25 Td (e operating ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 408.25 Td (r) Tj ET Q q 0 0 0 rg BT 53.76 408.25 Td (esults and stock price may not follow any past tr) Tj ET Q q 0 0 0 rg BT 259.41 408.25 Td (ends or) Tj ET Q q 0 0 0 rg BT 290.62 408.25 Td ( meet our) Tj ET Q q 0 0 0 rg BT 330.98 408.25 Td ( guidance and expectations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.25 Td (Our net sales and operating results, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 296.11 384.25 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 49.50 372.25 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 533.58 372.25 Td (W) Tj ET Q q 0 0 0 rg BT 542.22 372.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.25 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 521.38 360.25 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.25 Td (predict, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 336.25 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 (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 85.50 312.25 Td (we serve;) 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 67.50 288.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 288.25 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 67.50 276.25 Td () 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 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 85.50 252.25 Td (limited source components, in a timely manner) Tj ET Q q 0 0 0 rg BT 273.11 252.25 Td (, in the quantity) Tj ET Q q 0 0 0 rg BT 335.23 252.25 Td (, quality and prices desired;) 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 85.50 228.25 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 67.50 204.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 204.25 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 67.50 192.25 Td () 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 85.50 180.25 Td (rescheduling of shipments or cancellation or orders by our customers;) 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 67.50 156.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 156.25 Td (fluctuations in our product mix;) 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 67.50 132.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 132.25 Td (the ability of our customers' other suppliers to provide suf) Tj ET Q q 0 0 0 rg BT 316.80 132.25 Td (ficient material to support our customers' products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 120.25 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 (currency fluctuations and stability) Tj ET Q q 0 0 0 rg BT 221.20 108.25 Td (, in particular the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 368.83 108.25 Td (Y) Tj ET Q q 0 0 0 rg BT 375.05 108.25 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 461.79 108.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.43 108.25 Td (on, the Chinese RMB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 96.25 Td (and the US dollar as compared to other currencies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 84.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 72.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 72.25 Td (commodity pricing;) 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 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 /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 (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 85.50 730.10 Td (markets, pricing pressures and other competitive factors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 706.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (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 85.50 694.10 Td (defects;) 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 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 successfully expand our manufacturing capacity in Gttingen, Germany and add optics fabrication ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td (capacity at our site in Richmond, California;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 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 67.50 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (our reliance on contract manufacturing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td (the rate of market acceptance of our new products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (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 67.50 550.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.10 Td (expenses associated with acquisition-related activities;) 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 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 (seasonal sales trends;) 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 (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 67.50 478.10 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 (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 85.50 454.10 Td (products by us or our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.10 Td (our ability to control expenses;) 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 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 (the level of capital spending of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td () 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 (potential excess and/or obsolescence of our inventory;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 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 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 85.50 346.10 Td (and business;) 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 67.50 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 322.10 Td (costs related to acquisitions of technology or businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.10 Td () 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 85.50 298.10 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 67.50 286.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.10 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 67.50 262.10 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 (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 85.50 238.10 Td (universities;) 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 67.50 214.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 214.10 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 67.50 202.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 190.10 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 67.50 178.10 Td () 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 (changes in policy) Tj ET Q q 0 0 0 rg BT 154.83 166.10 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 85.50 154.10 Td (standards;) 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 (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 67.50 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 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 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 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 70.10 Td (laws;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 46.10 Td (impact of government economic policies on macroeconomic conditions;) 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 (costs and expenses from litigation;) 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 (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 85.50 694.10 Td (business;) 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 (government support of alternative ener) Tj ET Q q 0 0 0 rg BT 240.82 670.10 Td (gy industries, such as solar;) 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 (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 85.50 634.10 Td (and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (distraction of management related to acquisition or divestment activities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 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 49.50 574.10 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 476.43 574.10 Td (, the adverse impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 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 49.50 550.10 Td (the shortfall. ) Tj ET Q q 0 0 0 rg BT 102.36 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.00 550.10 Td (e also base our manufacturing on our forecasted product mix for the quarter) Tj ET Q q 0 0 0 rg BT 413.11 550.10 Td (. If the actual product mix varies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 406.21 538.10 Td (, which would result in delays in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (shipment of our products. ) Tj ET Q q 0 0 0 rg BT 154.21 526.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 203.55 526.10 Td (, variations in timing of sales, particularly for our higher priced, higher mar) Tj ET Q q 0 0 0 rg BT 504.67 526.10 Td (gin products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (can cause significant fluctuations in quarterly operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 502.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 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 383.63 490.10 Td (-to-quarter and year) Tj ET Q q 0 0 0 rg BT 462.83 490.10 Td (-to-year comparisons of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (our historical operating results may not be meaningful. ) Tj ET Q q 0 0 0 rg BT 271.02 478.10 Td (Y) Tj ET Q q 0 0 0 rg BT 277.24 478.10 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 49.50 466.10 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 49.50 454.10 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 49.50 442.10 Td (global equity markets have experienced significant price and volume fluctuations that have af) Tj ET Q q 0 0 0 rg BT 423.63 442.10 Td (fected the stock prices of many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (technology companies both in and outside our industry) Tj ET Q q 0 0 0 rg BT 268.54 430.10 Td (. ) Tj ET Q q 0 0 0 rg BT 273.36 430.10 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 49.50 418.10 Td (and the performance of particular companies subject to these stock price fluctuations. ) Tj ET Q q 0 0 0 rg BT 393.36 418.10 Td (These factors, as well as general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 394.10 Td (fect on the market price of our stock in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 382.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 370.10 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 49.50 358.10 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 49.50 346.10 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 299.88 346.10 Td (fect our business, particularly our ability to meet our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (customers' delivery requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td () 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 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 49.50 298.10 Td (limited source suppliers, both internal and external. In particular) Tj ET Q q 0 0 0 rg BT 306.24 298.10 Td (, from time-to-time our customers require us to ramp up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (production and/or accelerate delivery schedules of our products. Our key suppliers may not have the ability to increase their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (production in line with our customers) Tj ET Q q 0 0 0 rg BT 202.34 274.10 Td ( demands. ) Tj ET Q q 0 0 0 rg BT 245.21 274.10 Td (This can become acute during times of high growth in our customers) Tj ET Q q 0 0 0 rg BT 523.01 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (businesses. Our failure to timely receive these key components and materials would likely cause delays in the shipment of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (products, which would likely negatively impact both our customers and our business. Some of these suppliers are relatively ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (small private companies that may discontinue their operations at any time and which may be particularly susceptible to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (prevailing economic conditions. Some of our suppliers are located in regions which may be susceptible to natural disasters, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (such as the flooding in ) Tj ET Q q 0 0 0 rg BT 142.36 214.10 Td (Thailand and the earthquake, tsunami and resulting nuclear disaster in Japan and severe flooding and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (power loss in the Eastern part of the United States in recent years. Some may be vulnerable to man-made disasters, such as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (recent worldwide shortage of neon gas as a result of the conflict in Ukraine. ) Tj ET Q q 0 0 0 rg BT 355.05 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 363.68 190.10 Td (e typically purchase our components and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (materials through purchase orders or agreed upon terms and conditions and we do not have guaranteed supply arrangements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (with many of these suppliers. For certain long-lead time supplies or in order to lock-in pricing, we may be obligated to place ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (purchase orders which are not cancelable or otherwise assume liability for a lar) Tj ET Q q 0 0 0 rg BT 365.86 154.10 Td (ge amount of the ordered supplies, which limit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (our ability to adjust down our inventory liability in the event of market downturns or other customer cancellations or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (rescheduling of their purchase orders for our products. Some of our products, particularly in the flat panel display industry) Tj ET Q q 0 0 0 rg BT 538.16 130.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (require designs and specifications which are at the cutting-edge of available technologies. Our and our customers' designs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (specifications frequently change to meet rapidly evolving market demands. ) Tj ET Q q 0 0 0 rg BT 352.18 106.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 401.52 106.10 Td (, certain of our products require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (components and supplies which may be technologically dif) Tj ET Q q 0 0 0 rg BT 286.21 94.10 Td (ficult and unpredictable to manufacture. By their very nature, these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (types of components may only be available by a single supplier) Tj ET Q q 0 0 0 rg BT 302.78 82.10 Td (. ) Tj ET Q q 0 0 0 rg BT 307.60 82.10 Td (These characteristics further pressure the timely delivery of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (such components. ) Tj ET Q q 0 0 0 rg BT 123.47 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 132.11 70.10 Td (e may fail to obtain these supplies in a timely manner in the future. ) Tj ET Q q 0 0 0 rg BT 402.14 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 410.77 70.10 Td (e may experience dif) Tj ET Q q 0 0 0 rg BT 494.16 70.10 Td (ficulty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (identifying alternative sources of supply for certain components used in our products and may have to incur expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (management distraction in assisting our current and future suppliers to meet our and our customers' technical requirements. ) Tj ET Q q 0 0 0 rg BT 544.87 46.10 Td (W) Tj ET Q q 0 0 0 rg BT 553.50 46.10 Td (e ) 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 (would experience further delays while identifying, evaluating and testing the products of these potential alternative suppliers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (Furthermore, financial or other dif) Tj ET Q q 0 0 0 rg BT 186.77 730.10 Td (ficulties faced by these suppliers or significant changes in demand for these components or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (materials could limit their availability) Tj ET Q q 0 0 0 rg BT 199.92 718.10 Td (. ) Tj ET Q q 0 0 0 rg BT 204.74 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 213.38 718.10 Td (e continue to consolidate our supply base and move supplier locations. ) Tj ET Q q 0 0 0 rg BT 498.13 718.10 Td (When we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (transition locations we may increase our inventory of such products as a safety stock during the transition, which may cause ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (the amount of inventory reflected on our balance sheet to increase. ) Tj ET Q q 0 0 0 rg BT 317.73 694.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 367.63 694.10 Td (, many of our customers rely on sole source ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (suppliers. In the event of a disruption of our customers' supply chain, orders from our customers could decrease or be delayed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 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 49.50 646.10 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 49.50 634.10 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 49.50 622.10 Td (cancel orders. ) Tj ET Q q 0 0 0 rg BT 107.34 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 115.98 622.10 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 49.50 610.10 Td (components, crystals, semiconductor lasers, lasers and laser) Tj ET Q q 0 0 0 rg BT 288.40 610.10 Td (-based systems and recently acquired the capability to manufacture ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (certain lar) Tj ET Q q 0 0 0 rg BT 89.57 598.10 Td (ge format optics. Because we manufacture, package and test these components, products and systems at our own ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (facilities, and such components, products and systems are not readily available from other sources, any interruption in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (manufacturing would adversely af) Tj ET Q q 0 0 0 rg BT 186.21 574.10 Td (fect our business. Since many of our products have lengthy qualification periods, our ability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (to introduce multiple suppliers for parts may be limited. In addition, our failure to achieve adequate manufacturing yields of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (these items at our manufacturing facilities may materially and adversely af) Tj ET Q q 0 0 0 rg BT 348.09 550.10 Td (fect our operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 526.10 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 49.50 514.10 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 49.50 502.10 Td (our business and results of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 49.50 466.10 Td (product supply and demand, changing customer requirements and evolving industry standards. ) Tj ET Q q 0 0 0 rg BT 430.62 466.10 Td (The nature of this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 Td (material sales of our products to our customers in this market. ) Tj ET Q q 0 0 0 rg BT 298.89 442.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 348.79 442.10 Td (, our product of) Tj ET Q q 0 0 0 rg BT 410.82 442.10 Td (ferings may become obsolete given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 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 49.50 418.10 Td (acceptance, or the microelectronics market fails to grow) Tj ET Q q 0 0 0 rg BT 273.19 418.10 Td (, it would likely have a significant negative ef) Tj ET Q q 0 0 0 rg BT 456.01 418.10 Td (fect on our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (results of operations.) 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 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 49.50 370.10 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 49.50 358.10 Td (cancel orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 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 49.50 322.10 Td (annealing products. In the first six months of fiscal 2016, ) Tj ET Q q 0 0 0 rg BT 280.02 322.10 Td (Advanced Process Systems Corporation, an integrator in the flat panel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (display market based in South Korea, and Japanese Steel ) Tj ET Q q 0 0 0 rg BT 279.26 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 287.89 310.10 Td (orks, Ltd., an integrator in the flat panel display market based in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (Japan, have contributed more than 10% of our revenue. Given macroeconomic conditions, varying consumer demand and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (technical process limitations at manufacturers, our customers may seek to reschedule or cancel orders. ) Tj ET Q q 0 0 0 rg BT 460.83 286.10 Td (This was recently seen ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (with a requested expedited shipment of a Linebeam 1500 product for our third fiscal quarter of 2015, which delivery date was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (then changed at the customer) Tj ET Q q 0 0 0 rg BT 166.49 262.10 Td () Tj ET Q q 0 0 0 rg BT 169.27 262.10 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 496.22 262.10 Td (These lar) Tj ET Q q 0 0 0 rg BT 532.96 262.10 Td (ger flat ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (panel-related systems have lar) Tj ET Q q 0 0 0 rg BT 170.10 250.10 Td (ge average selling prices. ) Tj ET Q q 0 0 0 rg BT 273.11 250.10 Td (Any rescheduling or canceling of such orders by our customers will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (likely have a significant impact on our quarterly or annual net sales and results of operations and could negatively impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (inventory values and backlog. ) Tj ET Q q 0 0 0 rg BT 171.41 226.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 221.32 226.10 Td (, challenges in meeting evolving technological requirements for these complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (products by us and our suppliers could also result in delays in shipments, rescheduled or canceled orders by our customers. ) Tj ET Q q 0 0 0 rg BT 543.65 214.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (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 49.50 190.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.39 178.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.00 178.10 Td (, flat panel display systems represented 48% of our backlog. Since our backlog includes higher average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 498.61 166.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (financial results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 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 49.50 118.10 Td (customers, which could increase our costs and reduce our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 106.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 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 94.10 Td (The manufacture of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (lasers, laser products and systems involves a highly complex and precise process. ) Tj ET Q q 0 0 0 rg BT 377.20 82.10 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 70.10 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 58.10 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 58.10 Td (fect on our ability to achieve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (acceptable manufacturing yields and product reliability) Tj ET Q q 0 0 0 rg BT 269.60 46.10 Td (. ) Tj ET Q q 0 0 0 rg BT 274.42 46.10 Td (T) Tj ET Q q 0 0 0 rg BT 279.83 46.10 Td (o the extent that we do not achieve and maintain our projected yields ) 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 (or product reliability) Tj ET Q q 0 0 0 rg BT 131.60 742.10 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 49.50 730.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 730.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 86.33 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.97 730.10 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 49.50 718.10 Td (during the period of sale. ) Tj ET Q q 0 0 0 rg BT 152.07 718.10 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 49.50 706.10 Td (repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 229.32 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 234.14 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 242.78 706.10 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 49.50 694.10 Td (each product line. If actual return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 362.23 694.10 Td (fer significantly from our estimates, adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 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 372.82 682.10 Td (fect on our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 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 49.50 646.10 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 49.50 634.10 Td (may contain defects. ) Tj ET Q q 0 0 0 rg BT 133.91 634.10 Td (As a result, should problems occur) Tj ET Q q 0 0 0 rg BT 272.38 634.10 Td (, it may be dif) Tj ET Q q 0 0 0 rg BT 328.02 634.10 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 49.50 622.10 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 85.50 610.10 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 (loss of customers or orders;) 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 (increased costs of product returns and warranty expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 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 (damage to our brand reputation;) 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 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 (failure to attract new customers or achieve market acceptance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.10 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 (diversion of development, engineering and manufacturing resources; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 478.10 Td (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 49.50 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (Continued volatility in the advanced packaging and semiconductor manufacturing markets could adversely af) Tj ET Q q 0 0 0 rg BT 501.55 418.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 394.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 382.10 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 49.50 370.10 Td (applications and semiconductor equipment companies. ) Tj ET Q q 0 0 0 rg BT 270.93 370.10 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 49.50 358.10 Td (severe cyclical variations in product supply and demand, which have often severely af) Tj ET Q q 0 0 0 rg BT 393.91 358.10 Td (fected the demand for semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (manufacturing equipment, including laser) Tj ET Q q 0 0 0 rg BT 216.47 346.10 Td (-based tools and systems. ) Tj ET Q q 0 0 0 rg BT 320.45 346.10 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 49.50 334.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 334.10 Td (ficult to predict, and we may not be able to respond ef) Tj ET Q q 0 0 0 rg BT 276.29 334.10 Td (fectively to these cycles. ) Tj ET Q q 0 0 0 rg BT 376.90 334.10 Td (The continuing uncertainty in these markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (severely limits our ability to predict our business prospects or financial results in these markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 310.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (During industry downturns, our net sales from these markets may decline suddenly and significantly) Tj ET Q q 0 0 0 rg BT 450.43 298.10 Td (. Our ability to rapidly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 286.10 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 49.50 274.10 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 49.50 262.10 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 49.50 250.10 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 499.63 250.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 548.97 250.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (downturns in the semiconductor capital equipment market may materially harm our operating results. Conversely) Tj ET Q q 0 0 0 rg BT 502.62 238.10 Td (, when upturns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (in these markets occur) Tj ET Q q 0 0 0 rg BT 138.79 226.10 Td (, we must be able to rapidly and ef) Tj ET Q q 0 0 0 rg BT 276.62 226.10 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 49.50 214.10 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 49.50 202.10 Td (relationships with our customers may be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 178.10 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 49.50 166.10 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 49.50 154.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.43 142.10 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 49.50 130.10 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 49.50 118.10 Td (products. In particular) Tj ET Q q 0 0 0 rg BT 137.68 118.10 Td (, it is dif) Tj ET Q q 0 0 0 rg BT 170.83 118.10 Td (ficult to develop and implement strategy) Tj ET Q q 0 0 0 rg BT 332.08 118.10 Td (, sustainable business models and ef) Tj ET Q q 0 0 0 rg BT 476.32 118.10 Td (ficient operations, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (well as ef) Tj ET Q q 0 0 0 rg BT 87.63 106.10 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 94.10 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 94.10 Td (. Our ability to maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (research and development investments in our broad product of) Tj ET Q q 0 0 0 rg BT 299.24 82.10 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 70.10 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 58.10 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 46.10 Td (operating results. Current global economic conditions remain uncertain and challenging. ) Tj ET Q q 0 0 0 rg BT 405.33 46.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.96 46.10 Td (eakness in our end markets 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 49.50 742.10 Td (negatively impact our net sales, gross mar) Tj ET Q q 0 0 0 rg BT 217.33 742.10 Td (gin and operating expenses, and consequently have a material adverse ef) Tj ET Q q 0 0 0 rg BT 507.31 742.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 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 49.50 694.10 Td (activity) Tj ET Q q 0 0 0 rg BT 78.84 694.10 Td (.Should this uncertain financial policy recur) Tj ET Q q 0 0 0 rg BT 256.44 694.10 Td (, it would likely negatively impact global economic activity) Tj ET Q q 0 0 0 rg BT 494.34 694.10 Td (. ) Tj ET Q q 0 0 0 rg BT 501.29 694.10 Td (Any weakness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (in global economies would also likely have negative repercussions on U.S. and global credit and financial markets, and further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (exacerbate sovereign debt concerns in the European Union. ) Tj ET Q q 0 0 0 rg BT 291.63 670.10 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 49.50 658.10 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 488.61 658.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (The financial turmoil af) Tj ET Q q 0 0 0 rg BT 144.56 622.10 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 49.50 610.10 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 440.32 610.10 Td (There could be a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (follow-on ef) Tj ET Q q 0 0 0 rg BT 99.03 598.10 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 49.50 586.10 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 49.50 574.10 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 49.50 562.10 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 49.50 550.10 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 49.50 538.10 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 49.50 526.10 Td (instruments; impairment char) Tj ET Q q 0 0 0 rg BT 167.07 526.10 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 49.50 514.10 Td (cash balances; and changes in fair value of derivative instruments. ) Tj ET Q q 0 0 0 rg BT 316.72 514.10 Td (V) Tj ET Q q 0 0 0 rg BT 322.65 514.10 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 49.50 502.10 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 495.55 502.10 Td (fer significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 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 49.50 478.10 Td (increase the volatility of our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 466.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 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 49.50 430.10 Td (conditions make it dif) Tj ET Q q 0 0 0 rg BT 136.80 430.10 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 49.50 418.10 Td (such conditions persist, our business, financial condition and results of operations could suf) Tj ET Q q 0 0 0 rg BT 415.37 418.10 Td (fer) Tj ET Q q 0 0 0 rg BT 425.92 418.10 Td (. ) Tj ET Q q 0 0 0 rg BT 430.36 418.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 480.27 418.10 Td (, unstable economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 Td (business conduct. See PartI,Item4. CONTROLS ) Tj ET Q q 0 0 0 rg BT 256.42 394.10 Td (AND PROCEDURES.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td ( ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 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 49.50 358.10 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 49.50 346.10 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 49.50 334.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 322.10 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 49.50 310.10 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 49.50 298.10 Td (solvency of some financial institutions. ) Tj ET Q q 0 0 0 rg BT 208.74 298.10 Td (These financial institutions, including banks, have had dif) Tj ET Q q 0 0 0 rg BT 439.90 298.10 Td (ficulty timely performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (regular services and in some cases have failed or otherwise been lar) Tj ET Q q 0 0 0 rg BT 320.04 286.10 Td (gely taken over by governments. ) Tj ET Q q 0 0 0 rg BT 453.15 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.79 286.10 Td (e maintain our cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 49.50 262.10 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 49.50 250.10 Td (ability to timely access our cash deposited with such institutions, or) Tj ET Q q 0 0 0 rg BT 319.33 250.10 Td (, in extreme circumstances the failure of such institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 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 49.50 226.10 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 49.50 214.10 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 49.50 202.10 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 49.50 190.10 Td (accept our cash deposits will impact our ability to diversify our investment risk among institutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 178.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 166.10 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 49.50 154.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 49.50 130.10 Td (in their market values could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 267.83 130.10 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 49.50 118.10 Td (nature of our business, we have investments both domestically and internationally) Tj ET Q q 0 0 0 rg BT 376.83 118.10 Td (. ) Tj ET Q q 0 0 0 rg BT 381.65 118.10 Td (There has recently been growing pressure on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 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 94.10 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 82.10 Td (nations. ) Tj ET Q q 0 0 0 rg BT 82.83 82.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 132.74 82.10 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 70.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 70.10 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 58.10 Td (pricing of these investments can be negatively impacted by liquidity) Tj ET Q q 0 0 0 rg BT 321.83 58.10 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 46.10 Td (factors. ) Tj ET Q q 0 0 0 rg BT 81.16 46.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 131.06 46.10 Td (, liquidity issues or political actions by sovereign nations could result in decreased values for our ) 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 (investments in certain government securities. ) Tj ET Q q 0 0 0 rg BT 232.23 742.10 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 49.50 730.10 Td (investments could decline or become materially impaired, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 439.72 730.10 Td (fect on our financial condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (and operating results. See Item3. Quantitative and Qualitative Disclosures about Market Risk.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (Our future success depends on our ability to increase our sales volumes and decrease our costs to of) Tj ET Q q 0 0 0 rg BT 460.72 694.10 Td (fset potential declines in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (the average selling prices \(ASPs\) of our products and, if we are unable to realize greater sales volumes and lower costs, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (our operating results may suf) Tj ET Q q 0 0 0 rg BT 170.45 670.10 Td (fer) Tj ET Q q 0 0 0 rg BT 181.56 670.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 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 49.50 634.10 Td (systems and related accessories, as well as our ability to identify) Tj ET Q q 0 0 0 rg BT 306.28 634.10 Td (, in advance, emer) Tj ET Q q 0 0 0 rg BT 379.11 634.10 Td (ging markets for laser) Tj ET Q q 0 0 0 rg BT 466.38 634.10 Td (-based systems. ) Tj ET Q q 0 0 0 rg BT 531.47 634.10 Td (W) Tj ET Q q 0 0 0 rg BT 540.11 634.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (cannot assure you that we will be able to successfully identify) Tj ET Q q 0 0 0 rg BT 296.56 622.10 Td (, on a timely basis, new high-growth markets in the future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 610.10 Td (, we cannot assure you that new markets will develop for our products or our customers' products, or that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (technology or pricing will enable such markets to develop. Future demand for our products is uncertain and will depend to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (great degree on continued technological development and the introduction of new or enhanced products. If this does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (continue, sales of our products may decline and our business will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 550.10 Td (e have in the past experienced decreases in the ) Tj ET Q q 0 0 0 rg BT 246.11 550.10 Td (ASPs of some of our products. ) Tj ET Q q 0 0 0 rg BT 370.83 550.10 Td (As competing products become more widely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (available, the ) Tj ET Q q 0 0 0 rg BT 104.75 538.10 Td (ASPs of our products may decrease. If we are unable to of) Tj ET Q q 0 0 0 rg BT 337.83 538.10 Td (fset any decrease in our ) Tj ET Q q 0 0 0 rg BT 434.18 538.10 Td (ASPs by increasing our sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (volumes, our net sales will decline. In addition, to maintain our gross mar) Tj ET Q q 0 0 0 rg BT 343.98 526.10 Td (gins, we must continue to reduce the cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (manufacturing our products while maintaining their high quality) Tj ET Q q 0 0 0 rg BT 306.29 514.10 Td (. From time to time, our products, like many complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (technological products, may fail in greater frequency than anticipated. ) Tj ET Q q 0 0 0 rg BT 332.26 502.10 Td (This can lead to further char) Tj ET Q q 0 0 0 rg BT 445.08 502.10 Td (ges, which can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (higher costs, lower gross mar) Tj ET Q q 0 0 0 rg BT 166.79 490.10 Td (gins and lower operating results. Furthermore, as ) Tj ET Q q 0 0 0 rg BT 364.81 490.10 Td (ASPs of our current products decline, we must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (develop and introduce new products and product enhancements with higher mar) Tj ET Q q 0 0 0 rg BT 369.77 478.10 Td (gins. If we cannot maintain our gross mar) Tj ET Q q 0 0 0 rg BT 536.22 478.10 Td (gins, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (our operating results could be seriously harmed, particularly if the ) Tj ET Q q 0 0 0 rg BT 315.81 466.10 Td (ASPs of our products decrease significantly) Tj ET Q q 0 0 0 rg BT 490.40 466.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (Our future success depends on our ability to develop and successfully introduce new and enhanced products that meet the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (needs of our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 530.81 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 539.45 406.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 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 49.50 382.10 Td (products. Demand for our products could be significantly diminished by disrupting technologies or products that replace them ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (or render them obsolete. Furthermore, the new and enhanced products in certain markets generally continue to be smaller in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (size and have lower ) Tj ET Q q 0 0 0 rg BT 130.58 358.10 Td (ASPs, and therefore, we have to sell more units to maintain revenue levels. ) Tj ET Q q 0 0 0 rg BT 432.72 358.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.06 358.10 Td (, we must continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (to invest in research and development in order to develop competitive products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 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 49.50 310.10 Td (Introduction of new products and product enhancements will require that we ef) Tj ET Q q 0 0 0 rg BT 365.60 310.10 Td (fectively transfer production processes from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (research and development to manufacturing and coordinate our ef) Tj ET Q q 0 0 0 rg BT 312.54 298.10 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 49.50 286.10 Td (rapidly) Tj ET Q q 0 0 0 rg BT 77.18 286.10 Td (. If we fail to transfer production processes ef) Tj ET Q q 0 0 0 rg BT 258.87 286.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 293.20 286.10 Td (, develop product enhancements or introduce new products in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 274.10 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 49.50 262.10 Td (harmed.) 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 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 49.50 226.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 214.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.61 202.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.03 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.98 202.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.58 202.10 Td (, 73% of our net sales were derived from customers outside of the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (States. For fiscal 2015, fiscal 2014 and fiscal 2013, 73%, 74%, and 77%, respectively) Tj ET Q q 0 0 0 rg BT 391.27 190.10 Td (, of our net sales were derived from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (customers outside of the United States. ) Tj ET Q q 0 0 0 rg BT 210.40 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 219.04 178.10 Td (e anticipate that foreign sales, particularly in ) Tj ET Q q 0 0 0 rg BT 398.97 178.10 Td (Asia, will continue to account for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (significant portion of our net sales in the foreseeable future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 142.10 Td ( global economic slowdown or a natural disaster could have a negative ef) Tj ET Q q 0 0 0 rg BT 349.22 142.10 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 49.50 130.10 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 412.00 130.10 Td (Thailand in recent years. Such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 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 421.69 118.10 Td (fect the overall level of business in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (such countries. Our foreign sales are primarily through our direct sales force. ) Tj ET Q q 0 0 0 rg BT 359.40 106.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 409.30 106.10 Td (, some foreign sales are made through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 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 82.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 70.10 Td (longer accounts receivable collection periods;) 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 67.50 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 46.10 Td (the impact of recessions and other economic conditions in economies outside the United States;) 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 /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 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 (unexpected changes in regulatory requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 718.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 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 (certification requirements;) 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 (environmental regulations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td (reduced protection for intellectual property rights in some countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td (potentially adverse tax consequences;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (political and economic instability;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td (import/export regulations, tarif) Tj ET Q q 0 0 0 rg BT 208.90 586.10 Td (fs and trade barriers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (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 67.50 550.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.10 Td (cultural and management dif) Tj ET Q q 0 0 0 rg BT 200.00 538.10 Td (ferences;) 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 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 (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 67.50 490.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 490.10 Td (preference for locally produced products; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 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 (shipping and other logistics complications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 454.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (Our business could also be impacted by international conflicts, terrorist and military activity) Tj ET Q q 0 0 0 rg BT 417.92 442.10 Td (, civil unrest and pandemic illness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 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 49.50 418.10 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 72.00 406.10 Td () 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 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 508.33 394.10 Td (fect the sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 458.10 382.10 Td (While we use forward ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 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 49.50 358.10 Td (economic risks of foreign currency fluctuations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 334.10 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 387.71 334.10 Td (fect our competitive advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 322.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (Maintenance of intellectual property rights and the protection thereof is important to our business. ) Tj ET Q q 0 0 0 rg BT 443.93 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.57 310.10 Td (e rely on a combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 49.50 286.10 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 387.84 286.10 Td (ficiently protect our intellectual property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 49.50 262.10 Td (technology or design around any patents that may be issued to us. ) Tj ET Q q 0 0 0 rg BT 314.54 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 323.18 262.10 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 49.50 250.10 Td (prevent the misappropriation of our intellectual property) Tj ET Q q 0 0 0 rg BT 274.33 250.10 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 49.50 238.10 Td (proprietary rights as fully as in the United States. Further) Tj ET Q q 0 0 0 rg BT 277.39 238.10 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 49.50 226.10 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 49.50 214.10 Td (management's attention. ) Tj ET Q q 0 0 0 rg BT 148.22 214.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 198.12 214.10 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 49.50 202.10 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 49.50 190.10 Td (upon since these applications are often not publicly available until a patent is issued or published.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 166.10 Td (e may) Tj ET Q q 0 0 0 rg BT 81.43 166.10 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 49.50 154.10 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 49.50 142.10 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 529.44 142.10 Td (Adverse ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 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 72.00 118.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 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 94.10 Td (intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 160.40 94.10 Td (This has been seen in our industry) Tj ET Q q 0 0 0 rg BT 296.39 94.10 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 82.10 Td (between IMRA) Tj ET Q q 0 0 0 rg BT 110.88 82.10 Td ( ) Tj ET Q q 0 0 0 rg BT 112.83 82.10 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 70.10 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 58.10 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 46.10 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 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 49.50 742.10 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 49.50 730.10 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 49.50 718.10 Td (to indemnify our customers against third-party infringement claims relating to our products. ) Tj ET Q q 0 0 0 rg BT 419.51 718.10 Td (These claims and any resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 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 507.55 706.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 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 49.50 682.10 Td (time and attention. ) Tj ET Q q 0 0 0 rg BT 126.15 682.10 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 306.00 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 3.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.25 658.10 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 67.50 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td (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 530.26 634.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.10 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 67.50 610.10 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 (redesign the products that use the technology) Tj ET Q q 0 0 0 rg BT 265.36 598.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 49.50 562.10 Td (and our business may be seriously harmed. ) Tj ET Q q 0 0 0 rg BT 223.73 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 232.37 562.10 Td (e do not have insurance to cover potential claims of this type.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 550.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 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 49.50 502.10 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 49.50 490.10 Td (impairment at least annually) Tj ET Q q 0 0 0 rg BT 162.42 490.10 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 49.50 478.10 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 49.50 466.10 Td (market capitalization or future cash flows projections. ) Tj ET Q q 0 0 0 rg BT 267.21 466.10 Td (A) Tj ET Q q 0 0 0 rg BT 273.88 466.10 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 49.50 454.10 Td (conditions, particularly if such change has the ef) Tj ET Q q 0 0 0 rg BT 243.14 454.10 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 49.50 442.10 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 49.50 430.10 Td (in an impairment char) Tj ET Q q 0 0 0 rg BT 137.34 430.10 Td (ge. ) Tj ET Q q 0 0 0 rg BT 151.23 430.10 Td (Any such material char) Tj ET Q q 0 0 0 rg BT 244.07 430.10 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 49.50 418.10 Td (material negative impact on our financial and operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 406.10 Td () Tj ET Q BT /F4 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 57.65 394.10 Td (e depend on skilled personnel to operate our business ef) Tj ET Q q 0 0 0 rg BT 287.20 394.10 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 49.50 382.10 Td (retain existing or hire additional personnel when needed, our ability to develop and sell our products could be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 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 49.50 346.10 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 498.93 346.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 524.48 346.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 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 402.82 334.10 Td (ficult to retain key employees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (management at a reasonable cost. ) Tj ET Q q 0 0 0 rg BT 185.93 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.56 322.10 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 49.50 310.10 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 543.86 310.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (our growth and our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 286.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (Our future success depends upon the continued services of our executive of) Tj ET Q q 0 0 0 rg BT 351.17 274.10 Td (ficers and other key engineering, sales, marketing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (manufacturing and support personnel, any of whom may leave and our ability to ef) Tj ET Q q 0 0 0 rg BT 380.89 262.10 Td (fectively transition to their successors. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (inability to retain or to ef) Tj ET Q q 0 0 0 rg BT 149.57 250.10 Td (fectively transition to their successors could harm our business and our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 238.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 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 427.95 226.10 Td (fsetting net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 214.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (Customers often view the purchase of our products as a significant and strategic decision. ) Tj ET Q q 0 0 0 rg BT 409.68 202.10 Td (As a result, customers typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (expend significant ef) Tj ET Q q 0 0 0 rg BT 133.18 190.10 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 49.50 178.10 Td (in a lengthy initial sales cycle. ) Tj ET Q q 0 0 0 rg BT 172.89 178.10 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 49.50 166.10 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 49.50 154.10 Td (needs. ) Tj ET Q q 0 0 0 rg BT 77.09 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.73 154.10 Td (e may also expend significant management ef) Tj ET Q q 0 0 0 rg BT 268.25 154.10 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 49.50 142.10 Td (components or materials prior to receiving an order) Tj ET Q q 0 0 0 rg BT 254.71 142.10 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 49.50 130.10 Td (our products. ) Tj ET Q q 0 0 0 rg BT 104.22 130.10 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 49.50 118.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 118.10 Td (fset such expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 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 82.10 Td (levels, reduced gross margins or the loss of market share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 70.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 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 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.06 58.10 Td (e compete against a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 46.10 Td (ge public and private companies, including CVI Melles Griot, GSI Group,Inc.,IPG Photonics Corporation, Lumentum ) 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 (Holdings Inc., Newport Corporation, Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 249.29 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 254.70 742.10 Td (echnologies,Inc., and ) Tj ET Q q 0 0 0 rg BT 344.49 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 350.25 742.10 Td (rumpfGmbH, as well as other smaller companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (Some of our competitors are lar) Tj ET Q q 0 0 0 rg BT 176.22 730.10 Td (ge companies that have significant financial, technical, marketing and other resources. ) Tj ET Q q 0 0 0 rg BT 523.68 730.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 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 49.50 706.10 Td (products. Some of our competitors are much better positioned than we are to acquire other companies in order to gain new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (technologies or products that may displace our product lines. ) Tj ET Q q 0 0 0 rg BT 295.00 694.10 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 49.50 682.10 Td (advantage. ) Tj ET Q q 0 0 0 rg BT 94.48 682.10 Td (Any business combinations or mer) Tj ET Q q 0 0 0 rg BT 233.17 682.10 Td (gers among our competitors, forming lar) Tj ET Q q 0 0 0 rg BT 395.17 682.10 Td (ger companies with greater resources, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (could result in increased competition, price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 320.89 670.10 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 49.50 658.10 Td (and adversely af) Tj ET Q q 0 0 0 rg BT 114.84 658.10 Td (fect our business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.25 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 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 49.50 622.10 Td (new companies in the future. ) Tj ET Q q 0 0 0 rg BT 167.62 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.25 622.10 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 49.50 610.10 Td (committed to the products of) Tj ET Q q 0 0 0 rg BT 164.85 610.10 Td (fered by these competitors. Further) Tj ET Q q 0 0 0 rg BT 304.69 610.10 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 49.50 598.10 Td (and produce products for their own use which are competitive to our products. ) Tj ET Q q 0 0 0 rg BT 364.97 598.10 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 49.50 586.10 Td (that competitive pressures may result in price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 329.78 586.10 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 49.50 574.10 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 49.50 550.10 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 49.50 538.10 Td (incur significant delays in shipments, which could result in a loss of customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 514.10 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 49.50 502.10 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 49.50 490.10 Td (required to obtain the necessary components and materials. ) Tj ET Q q 0 0 0 rg BT 288.41 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.04 490.10 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 49.50 478.10 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 49.50 466.10 Td (specific supplier requirements, the size of the order) Tj ET Q q 0 0 0 rg BT 254.02 466.10 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 49.50 454.10 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 49.50 442.10 Td (overestimate our component and material requirements, we may have excess inventory) Tj ET Q q 0 0 0 rg BT 396.78 442.10 Td (, which would increase our costs. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (underestimate our component and material requirements, we may have inadequate inventory) Tj ET Q q 0 0 0 rg BT 418.99 430.10 Td (, which could interrupt and delay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (delivery of our products to our customers. ) Tj ET Q q 0 0 0 rg BT 219.47 418.10 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 49.50 406.10 Td (operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 49.50 370.10 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 72.00 358.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 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 49.50 334.10 Td (complex turnkey products, including some performed at international sites located in ) Tj ET Q q 0 0 0 rg BT 391.08 334.10 Td (Asia and Eastern Europe. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 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 523.88 322.10 Td (The cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 310.10 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 49.50 298.10 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 49.50 286.10 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 49.50 274.10 Td (to meet our cost, quality) Tj ET Q q 0 0 0 rg BT 145.77 274.10 Td (, performance, and availability standards. ) Tj ET Q q 0 0 0 rg BT 313.31 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.95 274.10 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 49.50 262.10 Td (product volumes that are high enough to achieve suf) Tj ET Q q 0 0 0 rg BT 258.70 262.10 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 49.50 250.10 Td (increased costs or be required to take ownership of the inventory) Tj ET Q q 0 0 0 rg BT 307.65 250.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.10 250.10 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 49.50 238.10 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 450.65 238.10 Td (, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (impact our financial condition or results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (If we fail to ef) Tj ET Q q 0 0 0 rg BT 107.08 202.10 Td (fectively manage our growth or) Tj ET Q q 0 0 0 rg BT 235.41 202.10 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 291.14 202.10 Td (, our spending during downturns, our business could be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (disrupted, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 178.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 49.50 154.10 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 49.50 142.10 Td (strain. ) Tj ET Q q 0 0 0 rg BT 76.54 142.10 Td (The failure to ef) Tj ET Q q 0 0 0 rg BT 141.04 142.10 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 49.50 130.10 Td (successfully of) Tj ET Q q 0 0 0 rg BT 109.03 130.10 Td (fer our products and implement our business plan in evolving markets requires an ef) Tj ET Q q 0 0 0 rg BT 445.70 130.10 Td (fective planning and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (management process. In economic downturns, we must ef) Tj ET Q q 0 0 0 rg BT 281.20 118.10 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 49.50 106.10 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 536.99 106.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (failure to ef) Tj ET Q q 0 0 0 rg BT 95.96 94.10 Td (fectively manage our spending and operations could disrupt our business and harm our operating results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 82.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.46 70.10 Td (, acquisitions have been an important element of our strategy) Tj ET Q q 0 0 0 rg BT 348.76 70.10 Td (. However) Tj ET Q q 0 0 0 rg BT 389.87 70.10 Td (, we may not find suitable acquisition ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 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 58.10 Td (Any acquisitions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (we make could disrupt our business and harm our financial condition.) 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 /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 742.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 730.10 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 49.50 718.10 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 49.50 706.10 Td (acquisitions, we could:) 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 (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 67.50 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td (pay cash that would decrease our working capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td (incur debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (assume liabilities; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td (incur expenses related to impairment of goodwill and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 562.10 Td (Acquisitions also involve numerous risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.10 Td (problems combining the acquired operations, systems, technologies or products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td () 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 (an inability to realize expected operating ef) Tj ET Q q 0 0 0 rg BT 258.57 514.10 Td (ficiencies or product integration benefits;) 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 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 (dif) Tj ET Q q 0 0 0 rg BT 96.43 490.10 Td (ficulties in coordinating and integrating geographically separated personnel, or) Tj ET Q q 0 0 0 rg BT 411.42 490.10 Td (ganizations, systems and facilities;) 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 (dif) Tj ET Q q 0 0 0 rg BT 96.43 466.10 Td (ficulties integrating business cultures;) 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 (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 85.50 430.10 Td (company;) 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 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 (diversion of management's attention from our core businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td () 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 (adverse ef) Tj ET Q q 0 0 0 rg BT 126.13 382.10 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 67.50 370.10 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 (potential loss of key employees, particularly those of the purchased or) Tj ET Q q 0 0 0 rg BT 365.51 358.10 Td (ganizations;) 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 (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 67.50 322.10 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 (the failure to complete acquisitions even after signing definitive agreements which, among other things, would result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 298.10 Td (in the expensing of potentially significant professional fees and other char) Tj ET Q q 0 0 0 rg BT 381.34 298.10 Td (ges in the period in which the acquisition or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td (negotiations are terminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 262.10 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 49.50 250.10 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 49.50 238.10 Td (transactions, which may harm our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 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 49.50 202.10 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 49.50 190.10 Td (operating results will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 49.50 154.10 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 49.50 142.10 Td (rapid change, it is dif) Tj ET Q q 0 0 0 rg BT 134.02 142.10 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 49.50 130.10 Td (will depend on, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 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 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 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 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 58.10 Td (our ability to accurately predict and develop our products to meet industry standards.) Tj ET Q endstream endobj 111 0 obj <>] /Rotate 0 /Contents 112 0 R>> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.61 742.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.03 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.98 742.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.58 742.10 Td (, our research and development costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.74 742.10 Td ($21.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.63 742.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.46 742.10 Td (10.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.29 742.10 Td ( of net sales\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 730.10 Td ($40.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 730.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.16 730.10 Td (10.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.99 730.10 Td ( of net sales\), respectively) Tj ET Q q 0 0 0 rg BT 255.47 730.10 Td (. For our fiscal years 2015, 2014 and 2013, our research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (costs were $81.5 million \(10.2% of net sales\), $79.1 million \(10.0% of net sales\) and $82.8 million \(10.2% of net sales\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 706.10 Td (. ) Tj ET Q q 0 0 0 rg BT 101.98 706.10 Td (W) Tj ET Q q 0 0 0 rg BT 110.62 706.10 Td (e cannot assure you that our expenditures for research and development will result in the introduction of new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (products or) Tj ET Q q 0 0 0 rg BT 94.37 694.10 Td (, if such products are introduced, that those products will achieve suf) Tj ET Q q 0 0 0 rg BT 369.39 694.10 Td (ficient market acceptance or to generate sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 682.10 Td (fset the costs of development. Our failure to address rapid technological changes in our markets could adversely af) Tj ET Q q 0 0 0 rg BT 516.20 682.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (business and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 646.10 Td (e 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 458.87 646.10 Td (fect on our business, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 622.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 610.10 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 516.83 610.10 Td (, death or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (commercial losses occur from the use of our products. ) Tj ET Q q 0 0 0 rg BT 268.70 598.10 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 49.50 586.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 586.10 Td (ficers' policies, litigation can be expensive, lengthy) Tj ET Q q 0 0 0 rg BT 261.52 586.10 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 49.50 574.10 Td (impact of indemnification obligations for individuals named in any such lawsuits. ) Tj ET Q q 0 0 0 rg BT 378.70 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 387.34 574.10 Td (e may not, however) Tj ET Q q 0 0 0 rg BT 465.80 574.10 Td (, be able to secure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (insurance coverage on terms acceptable to us in the future. Moreover) Tj ET Q q 0 0 0 rg BT 325.37 562.10 Td (, the results of complex legal proceedings are dif) Tj ET Q q 0 0 0 rg BT 519.85 562.10 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (predict. ) Tj ET Q q 0 0 0 rg BT 81.71 550.10 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 49.50 538.10 Td (be defective, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 232.00 538.10 Td (fect on our business, operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 526.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 514.10 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 49.50 502.10 Td (damage or liability resulting from accidental environmental contamination or injury) Tj ET Q q 0 0 0 rg BT 396.66 502.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 49.50 466.10 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 49.50 454.10 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 509.35 454.10 Td (Also, if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 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 49.50 430.10 Td (it could release highly toxic emissions. ) Tj ET Q q 0 0 0 rg BT 207.35 430.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.98 430.10 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 49.50 418.10 Td (comply with all federal, state and of) Tj ET Q q 0 0 0 rg BT 193.44 418.10 Td (fshore regulations and standards. However) Tj ET Q q 0 0 0 rg BT 363.82 418.10 Td (, the risk of accidental environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 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 49.50 382.10 Td (resources of our business which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 278.41 382.10 Td (fect on our financial results or our business as a whole.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (Compliance or the failure to comply with current and future environmental regulations could cause us significant expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 334.10 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 541.38 334.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 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 49.50 310.10 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 49.50 298.10 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 49.50 286.10 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 49.50 274.10 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 49.50 262.10 Td (management of historical waste.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 250.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (From time to time new regulations are enacted, and it is dif) Tj ET Q q 0 0 0 rg BT 285.92 238.10 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 49.50 226.10 Td (enforced. ) Tj ET Q q 0 0 0 rg BT 89.29 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.93 226.10 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 477.04 226.10 Td (These regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (include, for example, the Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 253.33 214.10 Td (Authorization and Restriction of Chemical substances \(REACH\), the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 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 49.50 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 190.10 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 49.50 178.10 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 49.50 166.10 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 49.50 154.10 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 49.50 142.10 Td (by requiring the use of dif) Tj ET Q q 0 0 0 rg BT 153.46 142.10 Td (ferent types of materials. ) Tj ET Q q 0 0 0 rg BT 255.18 142.10 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 49.50 130.10 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 484.72 130.10 Td (fects. ) Tj ET Q q 0 0 0 rg BT 508.42 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.06 130.10 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 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 49.50 106.10 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 94.10 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 82.10 Td (or expenses associated with our operations. ) Tj ET Q q 0 0 0 rg BT 225.11 82.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.74 82.10 Td (e are not currently aware of any such material costs or expenses. ) Tj ET Q q 0 0 0 rg BT 493.73 82.10 Td (The SEC has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 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 58.10 Td (Congo and adjoining countries and procedures regarding a manufacturer's ef) Tj ET Q q 0 0 0 rg BT 355.18 58.10 Td (forts to prevent the sourcing of such minerals. ) Tj ET Q q 0 0 0 rg BT 541.34 58.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 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 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 /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 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 49.50 718.10 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 49.50 706.10 Td (conduct business in the United States and foreign countries.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (Our and our customers' operations would be seriously harmed if our logistics or facilities or those of our suppliers, our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (customers' suppliers or our contract manufacturers were to experience catastrophic loss.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 658.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 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 49.50 634.10 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 482.85 634.10 Td (, pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (illnesses, ener) Tj ET Q q 0 0 0 rg BT 105.41 622.10 Td (gy shortages, theft of assets, other natural disasters or terrorist activity) Tj ET Q q 0 0 0 rg BT 385.24 622.10 Td (. ) Tj ET Q q 0 0 0 rg BT 389.69 622.10 Td (A) Tj ET Q q 0 0 0 rg BT 396.36 622.10 Td ( substantial portion of our research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 49.50 598.10 Td (earthquake faults in Santa Clara, California, an area with a history of seismic events. ) Tj ET Q q 0 0 0 rg BT 389.67 598.10 Td (Any such loss or detrimental impact to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 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 49.50 574.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 574.10 Td (ge expenses to repair or replace the facility) Tj ET Q q 0 0 0 rg BT 231.08 574.10 Td (. ) Tj ET Q q 0 0 0 rg BT 235.90 574.10 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 49.50 562.10 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 494.17 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 502.81 562.10 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (this decision is consistent with decisions reached by numerous other companies located nearby) Tj ET Q q 0 0 0 rg BT 428.20 550.10 Td (. ) Tj ET Q q 0 0 0 rg BT 433.02 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.65 550.10 Td (e cannot assure you that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 49.50 514.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 62.65 514.10 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 49.50 502.10 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 49.50 490.10 Td (access is obtained to a customer's data or our data or our information technology systems, we may incur significant legal ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (and financial exposure and liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (Like many modern multinational corporations, we maintain a global information technology system, including software ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (products licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 198.63 442.10 Td (Any system, network or Internet failures, misuse by system users, the hacking into or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (disruption caused by the unauthorized access by third parties or loss of license rights could disrupt our ability to timely and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (accurately manufacture and ship products or to report our financial information in compliance with the timelines mandated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (the SEC. ) Tj ET Q q 0 0 0 rg BT 89.50 406.10 Td (Any such failure, misuse, hacking, disruptions or loss would likely cause a diversion of management's attention from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (the underlying business and could harm our operations. In addition, a significant failure of our global information technology ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (system could adversely af) Tj ET Q q 0 0 0 rg BT 152.90 382.10 Td (fect our ability to complete an evaluation of our internal controls and attestation activities pursuant to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 370.10 Td (Act of 2002. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 344.70 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 49.50 324.70 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 49.50 312.70 Td (system. ) Tj ET Q q 0 0 0 rg BT 82.10 312.70 Td (While our system is designed with access security) Tj ET Q q 0 0 0 rg BT 281.68 312.70 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 49.50 300.70 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 49.50 288.70 Td (and possible liability) Tj ET Q q 0 0 0 rg BT 132.18 288.70 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 49.50 276.70 Td (by computer hackers, employee error) Tj ET Q q 0 0 0 rg BT 198.20 276.70 Td (, malfeasance or otherwise. ) Tj ET Q q 0 0 0 rg BT 309.27 276.70 Td (Additionally) Tj ET Q q 0 0 0 rg BT 359.17 276.70 Td (, third parties may attempt to fraudulently induce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.70 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 49.50 252.70 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 49.50 240.70 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 49.50 228.70 Td (frequently and generally are not recognized until launched against a tar) Tj ET Q q 0 0 0 rg BT 333.64 228.70 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 49.50 216.70 Td (to implement adequate preventative measures. ) Tj ET Q q 0 0 0 rg BT 236.65 216.70 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 49.50 204.70 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 471.34 204.70 Td (Additionally) Tj ET Q q 0 0 0 rg BT 521.24 204.70 Td (, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.70 Td (actions could result in significant costs associated with loss of our intellectual property) Tj ET Q q 0 0 0 rg BT 395.99 192.70 Td (, impairment of our ability to conduct our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.70 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 49.50 168.70 Td (actions, paying damages or taking other remedial steps. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 144.70 Td (Changes in tax rates, tax liabilities or tax accounting rulescould af) Tj ET Q q 0 0 0 rg BT 326.58 144.70 Td (fect future results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.70 Td (As a global company) Tj ET Q q 0 0 0 rg BT 133.55 120.70 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 49.50 108.70 Td (judgment is required to determine our worldwide tax liabilities. ) Tj ET Q q 0 0 0 rg BT 305.00 108.70 Td (A) Tj ET Q q 0 0 0 rg BT 311.67 108.70 Td ( number of factors may af) Tj ET Q q 0 0 0 rg BT 415.06 108.70 Td (fect our future ef) Tj ET Q q 0 0 0 rg BT 482.34 108.70 Td (fective tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.70 Td (including, but not limited to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 72.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 72.70 Td (changes in the composition of earnings in countries or states with dif) Tj ET Q q 0 0 0 rg BT 360.54 72.70 Td (fering tax rates;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 48.70 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 48.70 Td (changes in the valuations of our deferred tax assets and liabilities;) Tj ET Q endstream endobj 115 0 obj <>] /Rotate 0 /Contents 116 0 R>> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (57) 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 (the resolution of issues arising from tax audits with various tax authorities, and in particular) Tj ET Q q 0 0 0 rg BT 451.96 730.10 Td (, the outcome of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 718.10 Td (German tax audits of our tax returns for fiscal years 2006 - 2014, the U.S. tax audit of our tax return for fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 706.10 Td (2013 and the Japan tax audit of our tax returns for fiscal years 2013 - 2015;) 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 (changes in our global structure that involve acquisitions or an increased investment in technology outside of the United ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 670.10 Td (States to 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 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 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 67.50 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.10 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 85.50 610.10 Td (acquisitions;) 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 (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 85.50 574.10 Td (jurisdictions;) 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 (changes in available tax credits;) 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 share-based compensation;) 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 (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 85.50 490.10 Td (project being conducted by the Or) Tj ET Q q 0 0 0 rg BT 221.66 490.10 Td (ganization for Economic Co-operation and Development \(OECD\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 466.10 Td (changes in generally accepted accounting principles; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 442.10 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 49.50 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 418.10 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 49.50 406.10 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 49.50 394.10 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 49.50 382.10 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 49.50 370.10 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 49.50 358.10 Td (earnings. ) Tj ET Q q 0 0 0 rg BT 88.20 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 96.83 358.10 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 49.50 346.10 Td (determine the adequacy of our provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 284.98 346.10 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 49.50 334.10 Td (no assurance that any final determination will not be materially dif) Tj ET Q q 0 0 0 rg BT 315.90 334.10 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 49.50 322.10 Td (tax provisions and accruals, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 323.11 322.10 Td (fect our operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 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 49.50 286.10 Td (regarding compliance matters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 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 456.14 262.10 Td (ganizations such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 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 49.50 238.10 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 49.50 226.10 Td (members and impose civil and criminal penalties for companies and their chief executive of) Tj ET Q q 0 0 0 rg BT 416.69 226.10 Td (ficers, chief financial of) Tj ET Q q 0 0 0 rg BT 512.01 226.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (directors for securities law violations. ) Tj ET Q q 0 0 0 rg BT 202.61 214.10 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 49.50 202.10 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 49.50 190.10 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 49.50 178.10 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 49.50 166.10 Td (standards are subject to varying interpretations in many cases. ) Tj ET Q q 0 0 0 rg BT 299.43 166.10 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 49.50 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 154.10 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 49.50 142.10 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 49.50 130.10 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 49.50 118.10 Td (our ef) Tj ET Q q 0 0 0 rg BT 72.92 118.10 Td (forts to comply with new or changed laws, regulations and standards dif) Tj ET Q q 0 0 0 rg BT 361.00 118.10 Td (fer from the activities intended by regulatory or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (governing bodies due to ambiguities related to practice, our reputation may also be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 94.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (Governmental regulations, including duties, af) Tj ET Q q 0 0 0 rg BT 242.12 82.10 Td (fecting the import or export of products could negatively af) Tj ET Q q 0 0 0 rg BT 484.42 82.10 Td (fect our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 70.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 298.70 58.10 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 46.10 Td (some of those which we sell. In particular) Tj ET Q q 0 0 0 rg BT 216.27 46.10 Td (, given our worldwide operations, we pay duties on certain products when they are ) Tj ET Q endstream endobj 117 0 obj <>] /Rotate 0 /Contents 118 0 R>> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (subsidiaries. ) Tj ET Q q 0 0 0 rg BT 101.54 730.10 Td (These products can be subject to a duty on the product value. ) Tj ET Q q 0 0 0 rg BT 347.85 730.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 397.76 730.10 Td (, the United States and various foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (governments have imposed tarif) Tj ET Q q 0 0 0 rg BT 177.89 718.10 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 49.50 706.10 Td (technologies, especially encryption technology) Tj ET Q q 0 0 0 rg BT 236.57 706.10 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 49.50 694.10 Td (encryption technology) Tj ET Q q 0 0 0 rg BT 138.55 694.10 Td (, such as requiring the escrow and governmental recovery of private encryption keys. Governmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 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 49.50 670.10 Td (approval for our products, could harm our international and domestic sales and adversely af) Tj ET Q q 0 0 0 rg BT 415.87 670.10 Td (fect our net sales. From time to time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (our duty calculations and payments are audited by government agencies. For example, we were audited in South Korea for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (customs duties and value-added-tax for the period March 2009 to March 2014. ) Tj ET Q q 0 0 0 rg BT 366.73 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 375.37 646.10 Td (e were liable for additional payments, duties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (taxes and penalties of $1.6 million, which we paid in the second quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 398.58 634.10 Td (Any future assessments could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 622.10 Td (fect on our business or financial position, results of operations, or cash flows. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (In addition, compliance with the directives of the Directorate of Defense ) Tj ET Q q 0 0 0 rg BT 341.99 598.10 Td (T) Tj ET Q q 0 0 0 rg BT 347.74 598.10 Td (rade Controls \(DDTC\) may result in substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (expenses and diversion of management. ) Tj ET Q q 0 0 0 rg BT 211.12 586.10 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 49.50 574.10 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 407.55 574.10 Td (fect on our business or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (position, results of operations, or cash flows.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (Failure to maintain ef) Tj ET Q q 0 0 0 rg BT 140.72 538.10 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 49.50 526.10 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 422.11 526.10 Td (fect our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 514.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (The SEC, as directed by Section404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 290.28 502.10 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 49.50 490.10 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 49.50 478.10 Td (assessment by management of the ef) Tj ET Q q 0 0 0 rg BT 195.66 478.10 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 49.50 466.10 Td (registered public accounting firm must attest to and report on the ef) Tj ET Q q 0 0 0 rg BT 318.96 466.10 Td (fectiveness of our internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 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 49.50 430.10 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 49.50 418.10 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 49.50 394.10 Td (Provisions of our charter documents and Delaware law) Tj ET Q q 0 0 0 rg BT 276.65 394.10 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 49.50 382.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 382.10 Td (fects that could prevent or delay a change in control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 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 436.14 358.10 Td (ger or acquisition or make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (removal of incumbent directors or of) Tj ET Q q 0 0 0 rg BT 196.77 346.10 Td (ficers more dif) Tj ET Q q 0 0 0 rg BT 255.45 346.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 281.38 346.10 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 49.50 334.10 Td (common stock at a premium over the market price. ) Tj ET Q q 0 0 0 rg BT 255.92 334.10 Td (These provisions include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 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 (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 67.50 298.10 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 (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 67.50 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 262.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 262.10 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 85.50 250.10 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 49.50 238.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 226.10 Td (e are subject to Section203 of the Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 339.32 226.10 Td (, which prohibits a publicly-held Delaware corporation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (from engaging in a mer) Tj ET Q q 0 0 0 rg BT 143.18 214.10 Td (ger) Tj ET Q q 0 0 0 rg BT 155.54 214.10 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 49.50 202.10 Td (following the date such person became an interested stockholder) Tj ET Q q 0 0 0 rg BT 307.35 202.10 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 49.50 190.10 Td (as otherwise provided. ) Tj ET Q q 0 0 0 rg BT 142.07 190.10 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 49.50 178.10 Td (mer) Tj ET Q q 0 0 0 rg BT 64.87 178.10 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 49.50 166.10 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 49.50 154.10 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 49.50 142.10 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 49.50 130.10 Td (which may discourage potential acquirers or result in a lower stock price.) 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 99.13505859375005 m 339.470703125 99.13505859375005 l s q 0 0 0 rg BT 49.50 100.70 Td (RISKS RELA) Tj ET Q q 0 0 0 rg BT 109.06 100.70 Td (TED ) Tj ET Q q 0 0 0 rg BT 131.94 100.70 Td (T) Tj ET Q q 0 0 0 rg BT 138.43 100.70 Td (O ) Tj ET Q q 0 0 0 rg BT 148.52 100.70 Td (THE PROPOSED MERGER ) Tj ET Q q 0 0 0 rg BT 276.41 100.70 Td (WITH ROFIN) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 71.30 Td (If we are unable to complete our contemplated merger with Rofin, our expected financial results and the market value of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 59.30 Td (our common stock could be adversely af) Tj ET Q q 0 0 0 rg BT 214.30 59.30 Td (fected.) Tj ET Q endstream endobj 119 0 obj <>] /Rotate 0 /Contents 120 0 R>> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (Consummation of the mer) Tj ET Q q 0 0 0 rg BT 154.03 742.10 Td (ger with Rofin is subject to customary conditions to closing, including the receipt of required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (regulatory approvals. If any condition to the mer) Tj ET Q q 0 0 0 rg BT 243.70 730.10 Td (ger is not satisfied or waived, the mer) Tj ET Q q 0 0 0 rg BT 394.04 730.10 Td (ger may not be completed. ) Tj ET Q q 0 0 0 rg BT 502.71 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 511.35 730.10 Td (e and Rofin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (may also terminate the mer) Tj ET Q q 0 0 0 rg BT 158.17 718.10 Td (ger agreement under certain circumstances. ) Tj ET Q q 0 0 0 rg BT 334.01 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 339.42 718.10 Td (o the extent the mer) Tj ET Q q 0 0 0 rg BT 418.65 718.10 Td (ger is not completed for any reason, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (we would have devoted substantial resources and management attention to the transaction without realizing the accompanying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (benefits expected by our management, and our financial condition and results of operations and the market value of our stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (may be adversely af) Tj ET Q q 0 0 0 rg BT 129.56 682.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 158.43 682.10 Td (Additional risks and uncertainties associated with the mer) Tj ET Q q 0 0 0 rg BT 389.58 682.10 Td (ger include:) 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 (the failure to consummate the mer) Tj ET Q q 0 0 0 rg BT 222.21 658.10 Td (ger may result in negative publicity and a negative impression of us in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (investment community;) 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 (we and Rofin may become subject to costly litigation related to the mer) Tj ET Q q 0 0 0 rg BT 371.35 622.10 Td (ger) Tj ET Q q 0 0 0 rg BT 383.72 622.10 Td (, and may be subject to additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 Td (proceedings in the future;) 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 (required regulatory approvals from governmental entities may delay the mer) Tj ET Q q 0 0 0 rg BT 391.04 586.10 Td (ger or result in the imposition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.10 Td (conditions that could cause the abandonment of the mer) Tj ET Q q 0 0 0 rg BT 308.59 574.10 Td (ger;) 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 (the mer) Tj ET Q q 0 0 0 rg BT 115.58 550.10 Td (ger agreement may be terminated in circumstances that would require us to pay Rofin a termination fee of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.10 Td ($65.0 million and a termination fee to Barclays of $2.4 million;) 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 (our ability to attract, recruit, retain and motivate current and prospective employees who may be uncertain about their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.10 Td (future roles and relationships with us following the completion of the mer) Tj ET Q q 0 0 0 rg BT 380.53 502.10 Td (ger may be adversely af) Tj ET Q q 0 0 0 rg BT 475.86 502.10 Td (fected;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 478.10 Td (the increase in our leverage and debt service obligations as a result of the incurrence of additional financing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 466.10 Td (connection with the mer) Tj ET Q q 0 0 0 rg BT 182.23 466.10 Td (ger may adversely af) Tj ET Q q 0 0 0 rg BT 265.62 466.10 Td (fect the combined company) Tj ET Q q 0 0 0 rg BT 379.19 466.10 Td (s financial condition, results of operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 454.10 Td (and earnings per share; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.10 Td (the attention of our employees and management may be diverted due to activities related to the mer) Tj ET Q q 0 0 0 rg BT 482.96 430.10 Td (ger; and disruptions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.10 Td (from the mer) Tj ET Q q 0 0 0 rg BT 137.52 418.10 Td (ger) Tj ET Q q 0 0 0 rg BT 149.89 418.10 Td (, whether completed or not, may harm our relationships with our employees, customers, distributors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 406.10 Td (suppliers or other business partners, and may result in a loss of or a substantial decrease in purchases by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 394.10 Td (customers.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (Even if the Rofin merger is consummated, we may not be able to integrate the business of Rofin successfully with our own ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (or realize the anticipated benefits of the merger) Tj ET Q q 0 0 0 rg BT 243.65 358.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (The mer) Tj ET Q q 0 0 0 rg BT 82.91 334.10 Td (ger involves the combination of two companies that currently operate as independent multinational public companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (The combined company will be required to devote significant management attention and resources to integrating our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (practices with those of Rofin. Potential dif) Tj ET Q q 0 0 0 rg BT 219.01 310.10 Td (ficulties that the combined company may encounter as part of the integration process ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (include the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.10 Td (the inability to successfully combine our business with Rofin in a manner that permits the combined company to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 262.10 Td (achieve the full syner) Tj ET Q q 0 0 0 rg BT 171.12 262.10 Td (gies and other benefits anticipated to result from the mer) Tj ET Q q 0 0 0 rg BT 397.25 262.10 Td (ger;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 238.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 238.10 Td (complexities associated with managing the combined businesses, including dif) Tj ET Q q 0 0 0 rg BT 399.98 238.10 Td (ficulty addressing possible dif) Tj ET Q q 0 0 0 rg BT 520.06 238.10 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 Td (in corporate cultures and management philosophies and the challenge of integrating complex systems, technology) Tj ET Q q 0 0 0 rg BT 540.28 226.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 214.10 Td (networks and other assets of each of the companies in a seamless manner; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 190.10 Td (potential unknown liabilities and unforeseen increased expenses or delays associated with the mer) Tj ET Q q 0 0 0 rg BT 477.42 190.10 Td (ger) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (In addition, we have operated and, until the completion of the mer) Tj ET Q q 0 0 0 rg BT 313.96 166.10 Td (ger will continue to operate, independently) Tj ET Q q 0 0 0 rg BT 484.92 166.10 Td (. It is possible that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (the integration process could result in:) 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 (diversion of the attention of our management; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 106.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 Td (the disruption of, or the loss of momentum in, our ongoing business or inconsistencies in standards, controls, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 94.10 Td (procedures or policies, any of which could adversely af) Tj ET Q q 0 0 0 rg BT 306.63 94.10 Td (fect our ability to maintain relationships with customers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 Td (suppliers, employees and other constituencies or our ability to achieve the anticipated benefits of the mer) Tj ET Q q 0 0 0 rg BT 505.18 82.10 Td (ger) Tj ET Q q 0 0 0 rg BT 517.55 82.10 Td (, or could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 70.10 Td (reduce our earnings or otherwise adversely af) Tj ET Q q 0 0 0 rg BT 267.46 70.10 Td (fect the business and financial results of the combined company) Tj ET Q q 0 0 0 rg BT 522.57 70.10 Td (. ) Tj ET Q endstream endobj 121 0 obj <>] /Rotate 0 /Contents 122 0 R>> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (60) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (The future results of the combined company will suf) Tj ET Q q 0 0 0 rg BT 264.33 742.25 Td (fer if the combined company does not ef) Tj ET Q q 0 0 0 rg BT 428.85 742.25 Td (fectively manage its expanded ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 Td (operations following the merger) Tj ET Q q 0 0 0 rg BT 180.90 730.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.25 Td (Following the mer) Tj ET Q q 0 0 0 rg BT 123.20 706.25 Td (ger) Tj ET Q q 0 0 0 rg BT 135.57 706.25 Td (, the size of the business of the combined company will increase significantly beyond the current size of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (either our or Rofin) Tj ET Q q 0 0 0 rg BT 126.98 694.25 Td (s business. ) Tj ET Q q 0 0 0 rg BT 172.08 694.25 Td (The combined company) Tj ET Q q 0 0 0 rg BT 271.50 694.25 Td (s future success depends, in part, upon its ability to manage this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (expanded business, which will pose substantial challenges for management, including challenges related to the management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (and monitoring of new operations and associated increased costs and complexity) Tj ET Q q 0 0 0 rg BT 372.09 670.25 Td (. ) Tj ET Q q 0 0 0 rg BT 376.91 670.25 Td (There can be no assurances that the combined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.25 Td (company will be successful or that it will realize the expected syner) Tj ET Q q 0 0 0 rg BT 320.06 658.25 Td (gies and benefits currently anticipated from the mer) Tj ET Q q 0 0 0 rg BT 526.74 658.25 Td (ger) Tj ET Q q 0 0 0 rg BT 538.96 658.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 634.25 Td (The combined company is expected to incur substantial expenses related to the merger with and the integration of Rofin.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 610.25 Td (e have and expect to continue to incur substantial expenses in connection with the mer) Tj ET Q q 0 0 0 rg BT 403.41 610.25 Td (ger and the integration of Rofin. ) Tj ET Q q 0 0 0 rg BT 534.58 610.25 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.25 Td (are a lar) Tj ET Q q 0 0 0 rg BT 81.51 598.25 Td (ge number of processes, policies, procedures, operations, technologies and systems that may need to be integrated, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.25 Td (including purchasing, accounting and finance, sales, payroll, pricing, marketing and employee benefits. ) Tj ET Q q 0 0 0 rg BT 465.30 586.25 Td (While we have assumed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.25 Td (that a certain level of expenses will be incurred, there are many factors beyond our or their control that could af) Tj ET Q q 0 0 0 rg BT 494.97 574.25 Td (fect the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.25 Td (amount or the timing of the integration expenses. Moreover) Tj ET Q q 0 0 0 rg BT 287.65 562.25 Td (, many of the expenses that will be incurred are, by their nature, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 550.25 Td (ficult to estimate accurately) Tj ET Q q 0 0 0 rg BT 170.56 550.25 Td (. ) Tj ET Q q 0 0 0 rg BT 175.38 550.25 Td (These expenses could, particularly in the near term, exceed the savings that the combined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.25 Td (company expects to achieve from the elimination of duplicative expenses and the realization of economies of scale and cost ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (savings. ) Tj ET Q q 0 0 0 rg BT 84.32 526.25 Td (These integration expenses could result in the combined company taking significant char) Tj ET Q q 0 0 0 rg BT 439.87 526.25 Td (ges against earnings following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (the completion of the mer) Tj ET Q q 0 0 0 rg BT 152.62 514.25 Td (ger) Tj ET Q q 0 0 0 rg BT 164.99 514.25 Td (, and the amount and timing of such char) Tj ET Q q 0 0 0 rg BT 328.38 514.25 Td (ges are uncertain at present.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (Charges to earnings resulting from the application of the purchase method of accounting to the Rofin acquisition may ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.25 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.46 478.25 Td (fect our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (In accordance with generally accepted accounting principles, we will account for the Rofin acquisition using the purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (method of accounting, which will result in char) Tj ET Q q 0 0 0 rg BT 238.71 442.25 Td (ges to earnings that could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 447.61 442.25 Td (fect on the market value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.25 Td (our common stock following completion of the acquisition. Under the purchase method of accounting, we will allocate the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.25 Td (purchase price of Rofin) Tj ET Q q 0 0 0 rg BT 146.41 418.25 Td (s net tangible and identifiable intangible assets based upon their estimated fair values at the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (date. ) Tj ET Q q 0 0 0 rg BT 70.97 406.25 Td (The excess of the purchase price over net tangible and identifiable intangible assets will be recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 525.36 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 534.00 406.25 Td (e will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (incur additional depreciation and amortization expense over the useful lives of certain of the net tangible and intangible assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (acquired in connection with the acquisition. In addition, to the extent the value of goodwill or intangible assets with indefinite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (lives becomes impaired, we may be required to incur material char) Tj ET Q q 0 0 0 rg BT 316.16 370.25 Td (ges relating to the impairment of those assets. ) Tj ET Q q 0 0 0 rg BT 501.21 370.25 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (depreciation, amortization and potential impairment char) Tj ET Q q 0 0 0 rg BT 277.01 358.25 Td (ges could have a material impact on our results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 334.25 Td (There can be no assurance that we will be able to secure the financing we intend to use to pay the cash portion of the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 322.25 Td (consideration for the acquisition of Rofin. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 298.25 Td (e have entered into a debt commitment letter with Barclays Bank PLC \("Barclays"\) and both Bank of ) Tj ET Q q 0 0 0 rg BT 464.80 298.25 Td (America, N.A. and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.25 Td (Merrill L) Tj ET Q q 0 0 0 rg BT 85.88 286.25 Td (ynch, Pierce, Fenner & Smith Incorporated \(together) Tj ET Q q 0 0 0 rg BT 296.53 286.25 Td (, "BAML"\), pursuant to which, among other things, Barclays and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (BAML) Tj ET Q q 0 0 0 rg BT 78.02 274.25 Td ( have committed to provide us with debt financing in an aggregate principal amount of up to $850.0 million to finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (the acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 149.03 262.25 Td (The obligations of Barclays and BAML) Tj ET Q q 0 0 0 rg BT 307.79 262.25 Td ( under the commitment letter are subject to certain conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (including the consummation of the acquisition in accordance with the terms and conditions of the definitive agreement and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (other customary closing obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 214.25 Td (e intend to fund the acquisition consideration, the repayment of certain indebtedness of the combined companies and related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (fees and expenses with a combination of the combined companies) Tj ET Q q 0 0 0 rg BT 316.17 202.25 Td ( balance sheet cash and proceeds of approximately $850.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (million under the term loan and the revolving credit agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (The availability of the term loan and revolving credit agreement will be subject to certain conditions. ) Tj ET Q q 0 0 0 rg BT 455.57 166.25 Td (Therefore, no assurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (can be given that the financing pursuant to the term loan and revolving credit agreement described above will be available. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (obligation to complete the mer) Tj ET Q q 0 0 0 rg BT 172.06 142.25 Td (ger is subject to a financing contingency) Tj ET Q q 0 0 0 rg BT 333.03 142.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (In the event that the term loan and revolving credit is not available, other financing may not be available on acceptable terms, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (a timely manner) Tj ET Q q 0 0 0 rg BT 114.08 106.25 Td (, or at all. If we are unable to secure alternative financing, the mer) Tj ET Q q 0 0 0 rg BT 377.66 106.25 Td (ger may not be completed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 82.25 Td (Our indebtedness following completion of the merger will be substantially greater than our indebtedness on a stand-alone ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 70.25 Td (basis and greater than our or Rofin's combined indebtedness existing prior to the merger) Tj ET Q q 0 0 0 rg BT 414.82 70.25 Td (. This increased level of ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 58.25 Td (indebtedness could adversely af) Tj ET Q q 0 0 0 rg BT 179.02 58.25 Td (fect us, including by decreasing our business flexibility) Tj ET Q q 0 0 0 rg BT 404.77 58.25 Td (, and will increase our borrowing ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 46.25 Td (costs.) Tj ET Q endstream endobj 123 0 obj <>] /Rotate 0 /Contents 124 0 R>> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (Our substantially increased indebtedness and higher debt-to-equity ratio following completion of the mer) Tj ET Q q 0 0 0 rg BT 469.76 730.10 Td (ger in comparison to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (that prior to the mer) Tj ET Q q 0 0 0 rg BT 129.29 718.10 Td (ger will have the ef) Tj ET Q q 0 0 0 rg BT 206.30 718.10 Td (fect, among other things, of reducing our flexibility to respond to changing business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (economic conditions and will increase our borrowing costs. In addition, the amount of cash required to service our increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (indebtedness levels and thus the demands on our cash resources will be greater than the amount of cash flows required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (service our indebtedness or that of Rofin individually prior to the mer) Tj ET Q q 0 0 0 rg BT 327.86 682.10 Td (ger) Tj ET Q q 0 0 0 rg BT 340.08 682.10 Td (. ) Tj ET Q q 0 0 0 rg BT 344.90 682.10 Td (The increased levels of indebtedness could also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (reduce funds available for our investments in product development as well as capital expenditures, dividends, share repurchases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (and other activities and may create competitive disadvantages for us relative to other companies with lower debt levels.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (ITEM 6. EXHIBITS) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 599.60 51.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 599.60 19.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 599.60 442.00 -13.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 571.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 571.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 571.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 531.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 531.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 531.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 491.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 491.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 491.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 451.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 451.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 451.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 411.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 411.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 411.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 371.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 371.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 371.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 331.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 331.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 331.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 291.60 51.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 291.60 19.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 291.60 442.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 251.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 251.60 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 251.60 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 221.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 221.60 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 221.60 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 191.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 191.60 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 191.60 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 161.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 161.60 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 161.60 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 131.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 131.60 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 131.60 442.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 101.60 51.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 101.50 101.60 19.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 120.50 101.60 442.00 -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 50.5 586.6 m 101.5 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 120.5 586.6 m 562.5 586.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 53.00 590.83 Td (ExhibitNo.) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 110.50 589.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.20 590.83 Td (Description) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 577.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 576.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 577.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 562.17 Td (2.1+) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 562.17 Td (Mer) Tj ET Q q 0 0 0 rg BT 139.48 562.17 Td (ger ) Tj ET Q q 0 0 0 rg BT 154.20 562.17 Td (Agreement, dated as of March 16, 2016, by and among the Company) Tj ET Q q 0 0 0 rg BT 430.14 562.17 Td (, Rembrandt Mer) Tj ET Q q 0 0 0 rg BT 498.56 562.17 Td (ger Sub Corp. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 552.17 Td (and Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 189.47 552.17 Td (T) Tj ET Q q 0 0 0 rg BT 194.88 552.17 Td (echnologies Inc. \(Previously filed as Exhibit 2.1 to Form 8-K filed on March 16, 2016\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 522.17 Td (10.1+) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 522.17 Td (Commitment Letter by and among the Company and Barclays Bank PLC, dated as of March 16, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 512.17 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed on March 16, 2016\)) Tj ET Q BT /F1 10.00 Tf ET 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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 (May 11, 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 (May 11, 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 (KEVIN PALATNIK) 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 (Kevin Palatnik) 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 129 0 obj <>] /Rotate 0 /Contents 130 0 R>> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 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Letter by and among the Company and Barclays Bank PLC, dated as of March 16, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 632.32 Td (\(Previously filed as Exhibit 10.1 to Form 8-K filed on March 16, 2016\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 602.32 Td (10.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 602.32 Td (Amended and Restated Commitment Letter by and among the Company) Tj ET Q q 0 0 0 rg BT 412.01 602.32 Td (, Barclays Bank PLC, Merrill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 592.32 Td (L) Tj ET Q q 0 0 0 rg BT 128.56 592.32 Td (ynch, Pierce, Fenner & Smith Incorporated and Bank of ) Tj ET Q q 0 0 0 rg BT 354.33 592.32 Td (America, N.A., dated as of ) Tj ET Q q 0 0 0 rg BT 463.46 592.32 Td (April 5, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 560.93 Td (10.3) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 70.50 560.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 562.32 Td (T) Tj ET Q q 0 0 0 rg BT 128.76 562.32 Td (ransition Service ) Tj ET Q q 0 0 0 rg BT 198.19 562.32 Td (Agreement, dated February 22, 2016, between the Company and Helene Simonet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 522.32 Td (31.1) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 509.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 522.32 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 123.00 512.32 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 53.00 497.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 496.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 497.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 482.32 Td (31.2) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 469.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 482.32 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 123.00 472.32 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 53.00 457.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 456.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 457.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 442.32 Td (32.1) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 429.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 442.32 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 123.00 432.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 417.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 416.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 417.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 402.32 Td (32.2) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 104.00 389.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 402.32 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 123.00 392.32 Td (Section906 of the Sarbanes-Oxley Act of 2002.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 362.32 Td (101.INS*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 362.32 Td (XBRL Instance Document) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 333.32 Td (101.SCH*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 329.42 Td (XBRL Taxonomy Extension Schema) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 300.32 Td (101.CAL*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 299.42 Td (XBRL Taxonomy Extension Calculation Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 270.32 Td (101.DEF*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 269.42 Td (XBRL Taxonomy Extension Definition Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 240.32 Td (101.LAB*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 239.42 Td (XBRL Taxonomy Extension Label Linkbase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 210.32 Td (101.PRE*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 209.42 Td (XBRL Taxonomy Extension Presentation Linkbase) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 180.32 Td (+) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 180.32 Td (These exhibits were previously filed with the Commission as indicated and are incorporated herein by reference.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 165.32 Td (*) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 165.32 Td (In accordance with Rule406T of RegulationS-T, the information in these exhibits is furnished and deemed not) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 155.32 Td (filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 145.32 Td (is deemed not filed for purposes of section 18 of the Exchange Act of 1934, and otherwise is not subject to liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 135.32 Td (under these sections.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 52.00 118.93 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 119.42 Td (Identifies management contract or compensatory plans or arrangements required to be filed as an exhibit.) 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