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117.00 555.32 Td (Condensed Consolidated Balance Sheets) 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 559.00 554.51 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 53.00 548.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 97.00 541.51 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 135 540.9833984375 m 272.75390625 540.9833984375 l s q 0 0 1 rg BT 135.00 542.32 Td (April 1, 2017 and October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 529.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 529.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.00 529.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.00 529.32 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 53.00 522.56 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 97.00 515.51 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 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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 (30) Tj ET Q 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 (47) Tj ET Q 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 (49) Tj ET Q 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 (50) Tj ET Q 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 (50) Tj ET Q 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 (68) Tj ET Q 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 (69) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL endstream endobj 9 0 obj <>] /Rotate 0 /Contents 10 0 R>> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able 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 (, and in Management) Tj ET Q q 0 0 0 rg BT 512.47 658.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (Discussion and ) Tj ET Q q 0 0 0 rg BT 112.78 646.25 Td (Analysis of Financial Condition and Results of Operations. Forward-looking statements also include the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (assumptions underlying or relating to any of the foregoing statements. ) Tj ET Q q 0 0 0 rg BT 332.45 634.25 Td (Actual results of Coherent,Inc. \(referred to herein as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (Company) Tj ET Q q 0 0 0 rg BT 88.24 622.25 Td (, we, our or Coherent\) may dif) Tj ET Q q 0 0 0 rg BT 209.69 622.25 Td (fer significantly from those anticipated in these forward-looking statements as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (of various factors, including those discussed in the sections captioned Our Strategy) Tj ET Q q 0 0 0 rg BT 385.94 610.25 Td (, Risk Factors, Key Performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (Indicators, as well as any other cautionary language in this quarterly report. ) Tj ET Q q 0 0 0 rg BT 358.23 598.25 Td (All forward-looking statements included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (document are based on information available to us on the date hereof. ) Tj ET Q q 0 0 0 rg BT 331.11 586.25 Td (W) Tj ET Q q 0 0 0 rg BT 339.75 586.25 Td (e undertake no obligation to update these forward-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (looking statements as a result of events or circumstances or to reflect the occurrence of unanticipated events or non-occurrence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (of anticipated events. ) 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 (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. FINANCIAL) Tj ET Q q 0 0 0 rg BT 147.79 718.25 Td ( ST) Tj ET Q q 0 0 0 rg BT 161.78 718.25 Td (A) Tj ET Q q 0 0 0 rg BT 168.26 718.25 Td (TEMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 218.95 694.25 Td (COHERENT) Tj ET Q q 0 0 0 rg BT 275.44 694.25 Td (,INC. ) Tj ET Q q 0 0 0 rg BT 303.22 694.25 Td (AND SUBSIDIARIES) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.00 682.25 Td (CONDENSED CONSOLIDA) Tj ET Q q 0 0 0 rg BT 284.11 682.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 318.66 682.25 Td (A) Tj ET Q q 0 0 0 rg BT 325.14 682.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 390.06 682.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 426.82 682.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.20 670.25 Td (\() Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.53 670.25 Td (Unaudited; in thousands, except per shar) Tj ET Q q 0 0 0 rg BT 378.69 670.25 Td (e data\)) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 613.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 613.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 613.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 613.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 613.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 613.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 613.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 613.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 583.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 583.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 583.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 583.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 583.75 4.00 -15.00 re f /GS0 gs 0.8 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 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 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 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 55.50 464.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 464.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 464.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 464.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 464.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 464.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 464.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 464.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 435.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 435.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 435.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 435.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 435.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 435.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 435.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 435.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 405.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 405.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 405.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 405.75 60.00 -15.00 re f /GS0 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 55.50 375.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 375.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 375.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 375.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 375.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 375.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 375.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 375.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 346.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 346.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 346.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 346.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 346.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 346.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 346.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 346.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 318.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 318.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 318.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 318.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 318.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 318.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 318.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 318.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 290.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 290.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 290.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 290.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 290.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 290.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 290.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 290.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 251.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 251.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 251.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 251.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 251.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 251.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 251.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 251.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 223.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 223.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 223.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 223.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 223.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 223.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 223.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 223.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 194.75 250.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 194.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 194.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 194.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 194.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 194.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 194.75 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 194.75 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 154.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 154.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 154.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 154.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 154.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 154.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 154.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 154.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 55.50 126.75 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 126.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 126.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 369.50 126.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 126.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 433.50 126.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 126.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 497.50 126.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 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 305.5 494.75 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 369.5 494.75 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 305.5 479.75 m 365.5 479.75 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 369.5 479.75 m 429.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 479.75 m 493.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 479.75 m 557.5 479.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 479.75 m 365.5 479.75 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 369.5 405.75 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 305.5 390.75 m 365.5 390.75 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 369.5 390.75 m 429.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 390.75 m 493.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 390.75 m 557.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 390.75 m 493.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 390.75 m 557.5 390.75 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 369.5 360.75 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 497.5 360.75 m 557.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 346.75 m 365.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 346.75 m 429.5 346.75 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 497.5 360.75 m 557.5 360.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 332.75 m 365.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 332.75 m 429.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 346.75 m 493.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 332.75 m 493.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 346.75 m 557.5 346.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 332.75 m 557.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 332.75 m 365.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 319.75 m 365.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 317.75 m 365.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 332.75 m 429.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 319.75 m 429.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369.5 317.75 m 429.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 332.75 m 493.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 319.75 m 493.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 317.75 m 493.5 317.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 332.75 m 557.5 332.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 319.75 m 557.5 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 497.5 317.75 m 557.5 317.75 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 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.00 617.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.85 625.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.00 617.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.85 625.98 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.00 617.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 625.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 519.00 617.98 Td (2016) 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 ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 603.43 Td (422,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 603.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 603.42 Td (199,882) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 603.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 603.43 Td (768,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 603.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 603.42 Td (390,157) 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 (243,318) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 588.42 Td (111,283) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 588.43 Td (447,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 588.42 Td (217,660) 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 329.15 573.43 Td (179,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 573.42 Td (88,599) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 573.43 Td (321,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 573.42 Td (172,497) 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 (30,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 544.42 Td (20,955) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 544.43 Td (57,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 544.42 Td (40,095) 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 (72,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 529.42 Td (40,940) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 529.43 Td (146,219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 529.42 Td (77,714) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 514.42 Td (Gain from business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 351.65 514.43 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 514.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 514.48 Td (\(5,416) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 514.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 514.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 499.42 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.15 499.43 Td (5,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 499.42 Td (700) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.15 499.43 Td (9,317) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 499.42 Td (1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 484.42 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.15 484.43 Td (108,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 484.42 Td (62,595) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 484.43 Td (207,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 484.42 Td (119,210) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 469.43 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 469.43 Td (71,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 469.42 Td (26,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 469.43 Td (113,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 469.42 Td (53,287) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 455.43 Td (Other income \(expense\):) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 453.47 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 440.42 Td (Interest income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.65 440.43 Td (135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 440.42 Td (263) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 474.65 440.43 Td (278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 440.42 Td (503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 425.42 Td (Interest expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.80 425.48 Td (\(8,998) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 425.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.30 425.47 Td (\(30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 425.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.80 425.48 Td (\(16,962) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 425.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 425.47 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 425.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 410.42 Td (Othernet) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 335.80 410.48 Td (\(1,392) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 410.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 410.47 Td (\(2,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 410.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 410.43 Td (11,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 410.47 Td (\(2,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 410.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 395.42 Td (Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.80 395.48 Td (\(10,255) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 395.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.80 395.47 Td (\(1,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 395.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 463.80 395.48 Td (\(5,083) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 395.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 395.47 Td (\(2,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 395.42 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 380.43 Td (Income from continuing operations before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 380.43 Td (60,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 380.42 Td (24,224) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.15 380.43 Td (108,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 380.42 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 365.42 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 365.43 Td (18,646) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 365.42 Td (6,443) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 365.43 Td (35,320) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 365.42 Td (13,218) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 351.43 Td (Net income from continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 351.43 Td (42,188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 351.32 Td (17,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 351.43 Td (72,886) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 351.32 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 337.32 Td (Loss from discontinued operations, net of income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 343.30 337.48 Td (\(343) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 337.43 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 415.65 337.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.30 337.48 Td (\(633) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 337.43 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 543.65 337.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 323.43 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 323.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 323.43 Td (41,845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 323.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 323.32 Td (17,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 323.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 323.43 Td (72,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 323.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 323.32 Td (38,067) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 295.43 Td (Basic net income per share:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 281.32 Td (Income per share from continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 281.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 281.43 Td (1.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 281.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 281.32 Td (0.74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 281.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 281.43 Td (2.98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 281.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 281.32 Td (1.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 266.42 Td (Loss per share from discontinued operations, net of income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 256.42 Td (taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 256.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.80 256.48 Td (\(0.01) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 256.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 256.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 256.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 256.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.80 256.48 Td (\(0.03) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 256.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 256.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 256.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 242.43 Td (Net income per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 242.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 242.43 Td (1.71) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 242.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 242.32 Td (0.74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 242.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 242.43 Td (2.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 242.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 242.32 Td (1.58) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 214.43 Td (Diluted net income per share:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 212.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 426.00 212.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 199.42 Td (Income per share from continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 199.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 199.43 Td (1.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 199.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 199.42 Td (0.73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 199.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 199.43 Td (2.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 199.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 199.42 Td (1.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 184.42 Td (Loss per share from discontinued operations, net of income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 174.42 Td (taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 174.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 340.80 174.48 Td (\(0.01) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 361.65 174.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 174.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 174.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 174.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.80 174.48 Td (\(0.03) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 489.65 174.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 174.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.65 174.42 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 159.43 Td (Net income per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.00 159.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.15 159.43 Td (1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.00 159.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.15 159.42 Td (0.73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 436.00 159.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.15 159.43 Td (2.93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.00 159.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 159.42 Td (1.57) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 58.00 131.43 Td (Shares used in computation:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 362.00 129.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 426.00 129.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 116.42 Td (Basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 116.43 Td (24,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 116.42 Td (24,137) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 116.43 Td (24,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 116.42 Td (24,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 101.42 Td (Diluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 334.15 101.43 Td (24,757) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 101.42 Td (24,362) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.15 101.43 Td (24,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 101.42 Td (24,299) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.00 85.25 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 156.65 73.25 Td (See ) Tj ET Q q 0 0 0 rg BT 172.85 73.25 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) Tj ET Q endstream endobj 13 0 obj <>] /Rotate 0 /Contents 14 0 R>> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 31.60 Td (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 122.10 718.10 Td (CONDENSED CONSOLIDA) Tj ET Q q 0 0 0 rg BT 247.21 718.10 Td (TED ST) Tj ET Q q 0 0 0 rg BT 281.76 718.10 Td (A) Tj ET Q q 0 0 0 rg BT 288.24 718.10 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 353.16 718.10 Td ( COMPREHENSIVE INCOME) 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 77.00 649.60 224.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 649.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 649.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 649.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 649.60 4.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 649.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 649.60 5.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 649.60 55.00 -12.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 622.60 224.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 622.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 622.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 622.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 622.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 622.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 622.60 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 622.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 592.60 224.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 592.60 55.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 592.60 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 592.60 55.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 592.60 4.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 592.60 55.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 592.60 5.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 592.60 55.00 -31.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 536.60 224.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 536.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 536.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 536.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 536.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 536.60 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 536.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 77.00 506.60 224.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.00 506.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 360.00 506.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 415.00 506.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 419.00 506.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.00 506.60 5.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 479.00 506.60 55.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 670.6 m 356 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 670.6 m 360 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 670.6 m 415 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 670.6 m 474 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474 670.6 m 479 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 670.6 m 534 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 649.6 m 356 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 649.6 m 415 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 649.6 m 474 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 649.6 m 534 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 521.6 m 356 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 506.6 m 356 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 521.6 m 415 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 506.6 m 415 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 521.6 m 474 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 506.6 m 474 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 521.6 m 534 521.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 506.6 m 534 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 506.6 m 356 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 492.6 m 356 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 490.6 m 356 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 506.6 m 415 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 492.6 m 415 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 490.6 m 415 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 506.6 m 474 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 492.6 m 474 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 490.6 m 474 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 506.6 m 534 506.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 492.6 m 534 492.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479 490.6 m 534 490.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 674.17 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.10 674.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.40 674.83 Td (Six Months Ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 654.27 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.85 661.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.00 653.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.85 661.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.00 653.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.85 661.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.00 653.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.85 661.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.00 653.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 627.27 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 627.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.65 627.28 Td (41,845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.65 627.27 Td (17,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.50 627.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 627.28 Td (72,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 627.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 627.27 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 612.27 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 227.23 616.80 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 612.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 597.27 Td ( ) Tj ET Q q 0 0 0 rg BT 84.32 597.27 Td (T) Tj ET Q q 0 0 0 rg BT 90.08 597.27 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 229.49 601.80 Td (\(2\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.65 597.28 Td (1,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.65 597.27 Td (13,568) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.30 597.33 Td (\(4,078) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.15 597.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 597.27 Td (5,062) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 583.12 Td ( Net gain \(loss\) on derivative instruments, net of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 573.12 Td (taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 102.55 577.65 Td (\(3\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.15 566.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 566.27 Td (2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.15 566.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 566.32 Td (\(28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 566.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 551.27 Td (Changes in unrealized gains \(losses\) on available-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 541.27 Td (for) Tj ET Q q 0 0 0 rg BT 95.46 541.27 Td (-sale 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 208.19 545.80 Td (\(4\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 342.15 541.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 541.27 Td (2,325) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.30 541.33 Td (\(3,334) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.15 541.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 541.27 Td (2,463) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 527.17 Td (Defined benefit pension plans, net of taxes ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 257.28 531.70 Td (\(5\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 337.15 526.28 Td (158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 526.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.15 526.28 Td (534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 526.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 511.27 Td ( Other comprehensive loss, net of tax) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 329.65 511.28 Td (1,575) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.65 511.27 Td (15,895) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.30 511.33 Td (\(6,878) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.15 511.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 511.27 Td (7,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 496.27 Td (Comprehensive income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.50 496.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.65 496.28 Td (43,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.50 496.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.65 496.27 Td (33,676) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 421.50 496.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 442.65 496.28 Td (65,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.50 496.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.65 496.27 Td (45,564) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 468.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 468.10 Td (Reclassification adjustments were not significant during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.38 468.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.80 468.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.75 468.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.36 468.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.25 468.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.86 468.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 444.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 444.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.91 444.10 Td (ax expenses \(benefits\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.09 444.10 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.09 444.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.53 444.10 Td ($\(326\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.19 444.10 Td ( were provided on translation adjustments during the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 432.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.11 432.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 178.77 432.10 Td (. ) Tj ET Q q 0 0 0 rg BT 186.09 432.10 Td (T) Tj ET Q q 0 0 0 rg BT 191.50 432.10 Td (ax expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.87 432.10 Td ($465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.87 432.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.30 432.10 Td ($1) Tj ET Q q 0 0 0 rg BT 301.93 432.10 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.93 432.10 Td ( were provided on translation adjustments during the three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 420.10 Td (and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.38 420.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.99 420.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 267.65 420.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 396.10 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 396.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.91 396.10 Td (ax expenses \(benefits\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.09 396.10 Td ($1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.09 396.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.53 396.10 Td ($\(17\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.19 396.10 Td ( were provided on net gain \(loss\) on derivative instruments during the three and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 384.10 Td (six months ended and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.38 384.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.99 384.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 267.65 384.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 360.10 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 360.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.91 360.10 Td (ax expenses \(benefits\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.09 360.10 Td ($0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.09 360.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.53 360.10 Td ($\(1,878\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.69 360.10 Td ( were provided on changes in unrealized gains \(losses\) on available-for) Tj ET Q q 0 0 0 rg BT 527.83 360.10 Td (-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 348.10 Td (securities for the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.01 348.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.62 348.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 359.28 348.10 Td (. ) Tj ET Q q 0 0 0 rg BT 364.10 348.10 Td (T) Tj ET Q q 0 0 0 rg BT 369.51 348.10 Td (ax expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.87 348.10 Td ($1,357) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.37 348.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.81 348.10 Td ($1,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.31 348.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 336.10 Td (provided on changes in unrealized gains \(losses\) on available-for) Tj ET Q q 0 0 0 rg BT 332.21 336.10 Td (-sale securities for the three and six months ended and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 324.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.11 324.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 178.77 324.10 Td (.) 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Td (Restricted cash) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 632.43 Td (1,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 632.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 617.42 Td (Short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 617.43 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 617.42 Td (45,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 602.42 Td (Accounts receivablenet of allowances of $6,860 and $2,420, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 602.43 Td (252,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 602.42 Td (165,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 587.42 Td (Inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 587.43 Td (388,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 587.42 Td (212,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 572.42 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 572.43 Td (73,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 572.42 Td (37,073) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 557.42 Td (Assets held-for-sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 557.43 Td (65,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 557.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 542.42 Td (Total current assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.65 542.43 Td (1,214,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 542.42 Td (815,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 527.42 Td (Property and equipment, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 527.43 Td (256,024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 527.42 Td (127,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 512.42 Td (Goodwill) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 512.43 Td (360,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 512.42 Td (101,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 497.42 Td (Intangible assets, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 497.43 Td (206,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 497.42 Td (13,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 482.42 Td (Non-current restricted cash) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 482.43 Td (11,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 482.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 467.42 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 467.43 Td (125,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 467.42 Td (102,734) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 452.42 Td (Total assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 452.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.65 452.43 Td (2,175,340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 452.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 452.42 Td (1,161,148) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 125.10 423.43 Td (LIABILITIES AND STOCKHOLDERS EQUITY) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 421.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 421.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 408.42 Td (Current liabilities:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 406.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 406.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 393.42 Td (Short-term borrowings and current-portion of long-term obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 393.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 461.15 393.43 Td (5,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 393.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 393.42 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 378.42 Td (Accounts payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 378.43 Td (73,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 378.42 Td (45,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 363.42 Td (Income taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 456.15 363.43 Td (60,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 363.42 Td (19,870) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 348.42 Td (Other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 348.43 Td (231,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 348.42 Td (116,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 333.42 Td (Total current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 333.43 Td (370,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 333.42 Td (201,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 318.42 Td (Long-term obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 318.43 Td (660,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 318.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 303.42 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 303.43 Td (168,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 303.42 Td (48,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 288.42 Td (Commitments and contingencies \(Note 11\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 273.42 Td (Stockholders equity:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 271.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 271.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 258.42 Td (Common stock, Authorized500,000 shares, par value $.01 per share:) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 484.00 256.47 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 256.51 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 243.42 Td (Outstanding24,578 shares and 24,324 shares, respectively) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 468.65 243.43 Td (244) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 243.42 Td (242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 228.42 Td (Additional paid-in capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 228.43 Td (151,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 228.42 Td (151,298) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 213.42 Td (Accumulated other comprehensive loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.80 213.48 Td (\(12,178) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 483.65 213.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 213.47 Td (\(5,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 213.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.00 198.42 Td (Retained earnings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 198.43 Td (836,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 198.42 Td (764,588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 183.42 Td (Total stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 451.15 183.43 Td (976,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 183.42 Td (910,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 168.42 Td (Total liabilities and stockholders equity) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.00 168.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 443.65 168.43 Td (2,175,340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 168.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 168.42 Td (1,161,148) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 140.25 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 140.25 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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0.9333333333333333 1 rg /GS0 gs 487.50 293.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 293.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 273.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 273.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 273.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 273.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 253.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 253.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 253.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 253.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 233.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 233.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 233.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 233.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 213.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 213.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 213.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 213.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 49.50 193.75 368.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 193.75 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 193.75 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 193.75 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 417.5 463.75 m 487.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 463.75 m 561.5 463.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 373.75 m 561.5 373.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 373.75 m 487.5 373.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 373.75 m 561.5 373.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 263.75 m 487.5 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 263.75 m 561.5 263.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 253.75 m 487.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 243.75 m 487.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 253.75 m 561.5 253.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 243.75 m 561.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 243.75 m 491.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 243.75 m 561.5 243.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 223.75 m 487.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 214.75 m 487.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 212.75 m 487.5 212.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 223.75 m 561.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 214.75 m 561.5 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 212.75 m 561.5 212.75 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 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 677.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.85 685.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 677.98 Td (2016) 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 ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 655.88 Td (72,253) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 655.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 655.75 Td (38,067) 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 (19,958) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 635.75 Td (12,883) 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 462.30 625.88 Td (28,851) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 625.75 Td (4,169) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 615.75 Td (Gain on business combination) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 615.88 Td (\(5,416) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 615.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 615.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 605.75 Td (Deferred income taxes) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 605.88 Td (\(5,620) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 605.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 605.75 Td (\(5,653) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 605.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 595.75 Td (Amortization of debt issuance cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 595.88 Td (1,707) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 595.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 585.75 Td (Stock-based compensation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 585.88 Td (12,186) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 585.75 Td (9,132) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 575.75 Td (Non-cash restructuring charges) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 575.88 Td (4,313) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 575.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 565.75 Td (Other non-cash \(income\) expenses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.30 565.88 Td (567) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 547.60 565.75 Td (\(12) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 565.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 555.75 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 70.00 545.75 Td (Accounts receivable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 545.88 Td (\(2,798) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 545.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 545.75 Td (\(5,333) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 545.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 535.75 Td (Inventories) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 535.88 Td (4,962) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 535.75 Td (\(21,063) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 535.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 525.75 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 525.88 Td (\(3,634) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 525.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 525.75 Td (\(4,857) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 525.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 515.75 Td (Other long-term assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 515.88 Td (\(2,292) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 515.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 515.75 Td (1,984) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 505.75 Td (Accounts payable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 505.88 Td (8,672) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 505.75 Td (7,516) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 495.75 Td (Income taxes payable/receivable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 495.88 Td (12,854) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 495.75 Td (5,979) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 485.75 Td (Other current liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 485.88 Td (47,046) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 485.75 Td (3,821) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 70.00 475.75 Td (Other long-term liabilities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 475.88 Td (2,051) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 475.75 Td (\(1,079) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 475.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 465.75 Td (Cash flows from discontinued operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 465.88 Td (\(1,301) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 465.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 465.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 455.75 Td (Net cash provided by operating activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 455.88 Td (194,359) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 455.75 Td (45,554) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 435.88 Td (Cash flows from investing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 425.75 Td (Purchases of property and equipment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 425.88 Td (\(29,543) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 425.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 425.75 Td (\(16,256) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 425.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 415.75 Td (Proceeds from dispositions of property and equipment) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.30 415.88 Td (144) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 546.30 415.75 Td (180) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 405.75 Td (Purchases of available-for-sale securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.30 405.88 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 405.75 Td (\(84,629) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 405.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 395.75 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 462.30 395.88 Td (25,108) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 395.75 Td (79,470) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 385.75 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.60 385.88 Td (\(740,481) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 385.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 385.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 375.75 Td (Cash flows from discontinued operations) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.60 375.88 Td (\(316) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 375.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 375.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 365.75 Td (Net cash used in investing activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 455.60 365.88 Td (\(745,088) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 365.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 365.75 Td (\(21,235) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 365.75 Td (\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 345.88 Td (Cash flows from financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 335.75 Td (Short-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 335.88 Td (6,930) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 335.75 Td (34,792) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 325.75 Td (Repayments of short-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 325.88 Td (\(28,700) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 325.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 533.60 325.75 Td (\(29,792) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 325.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 315.75 Td (Proceeds from long-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 315.88 Td (740,685) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 315.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 305.75 Td (Repayments of long-term borrowings) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 305.88 Td (\(36,349) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 305.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 305.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 295.75 Td (Cash paid to subsidiaries' minority shareholders) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.60 295.88 Td (\(816) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 295.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 295.75 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 285.75 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 466.30 285.88 Td (3,866) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 285.75 Td (3,686) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 275.75 Td (Net settlement of restricted common stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 275.88 Td (\(15,675) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 275.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 275.75 Td (\(5,344) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 275.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 265.75 Td (Debt issuance costs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.60 265.88 Td (\(25,892) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 265.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 537.60 265.75 Td (\(2,137) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 558.30 265.75 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 58.00 255.75 Td (Net cash provided by financing activities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 255.88 Td (644,049) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 255.75 Td (1,205) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 245.88 Td (Effect of exchange rate changes on cash, cash equivalents and restricted cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.60 245.88 Td (\(1,617) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 245.88 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 245.75 Td (1,045) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 235.88 Td (Net increase in cash, cash equivalents and restricted cash) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 235.88 Td (91,703) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 536.30 235.75 Td (26,569) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 225.88 Td (Cash, cash equivalents and restricted cash, beginning of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 225.88 Td (354,347) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 225.75 Td (130,607) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 215.88 Td (Cash, cash equivalents and restricted cash, end of period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 215.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.30 215.88 Td (446,050) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 215.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 532.30 215.75 Td (157,176) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.00 195.88 Td (Noncash investing and financing activities:) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 185.75 Td ( Unpaid property and equipment purchases) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 185.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.30 185.88 Td (2,722) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 185.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 540.30 185.75 Td (3,800) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 175.75 Td ( Use of previously owned equity shares in acquisition) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.00 175.88 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.30 175.88 Td (20,685) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 494.00 175.75 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 550.30 175.75 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 151.45 Td (The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the condensed consolidated balance ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 140.65 Td (sheets that sum to the total of the same amounts shown in the condensed consolidated statements of cash flows.) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 99.15 366.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 99.15 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 99.15 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 99.15 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 79.15 366.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 79.15 70.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 79.15 4.00 -10.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 79.15 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 416.5 109.14999999999998 m 486.5 109.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 109.14999999999998 m 560.5 109.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 79.14999999999998 m 486.5 79.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 70.14999999999998 m 486.5 70.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 68.14999999999998 m 486.5 68.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 79.14999999999998 m 560.5 79.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 70.14999999999998 m 560.5 70.14999999999998 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 68.14999999999998 m 560.5 68.14999999999998 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 111.87 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.85 121.38 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.00 113.38 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 121.38 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 517.00 113.38 Td (2016) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 101.15 Td (Cash and cash equivalents) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 101.28 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.30 101.28 Td (432,980) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.00 101.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.30 101.15 Td (157,176) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 91.15 Td (Restricted cash, current) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.30 91.28 Td (1,284) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.30 91.15 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 81.15 Td (Restricted cash, non-current) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.30 81.28 Td (11,786) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 549.30 81.15 Td () Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 53.00 71.15 Td (Total Cash, Cash equivalents, and restricted cash shown in the condensed consolidated statement of cash flows) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 71.28 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.30 71.28 Td (446,050) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 493.00 71.15 Td ($) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 531.30 71.15 Td (157,176) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 154.15 57.65 Td (See ) Tj ET Q q 0 0 0 rg BT 170.35 57.65 Td (Accompanying Notes to Condensed Consolidated Financial Statements.) 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 (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 condensed consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.25 Td (financial statements and notes thereto filed by Coherent, Inc. on Form10-K for the fiscal year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.59 610.25 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 610.25 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.25 Td (the opinion of management, all adjustments necessary for a fair presentation of financial condition and results of operation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.25 Td (as of and for the periods presented have been made and include only normal recurring adjustments. Interim results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (operations are not necessarily indicative of results to be expected for the year or any other interim periods. Our fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.25 Td (ends on the Saturday closest to September30 and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.62 562.25 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.39 562.25 Td ( fiscal quarters include 13 weeks of operations in each fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.25 Td (year presented. Fiscal year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.12 550.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.12 550.25 Td ( and 2016 both include 52 weeks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.25 Td (The consolidated financial statements include the accounts of Coherent,Inc. and its direct and indirect subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.25 Td (\(collectively) Tj ET Q q 0 0 0 rg BT 117.33 514.25 Td (, the "Company", "we", "our", "us" or "Coherent"\). Intercompany balances and transactions have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.25 Td (eliminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.25 Td (On November 7, 2016, we acquired Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 263.05 478.25 Td (T) Tj ET Q q 0 0 0 rg BT 268.46 478.25 Td (echnologies, Inc. and its direct and indirect subsidiaries \("Rofin"\). ) Tj ET Q q 0 0 0 rg BT 535.26 478.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.25 Td (significant accounting policies of Rofin have been aligned to conform to those of Coherent, and the consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.25 Td (statements include the results of Rofin as of the acquisition date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.25 Td (The preparation of consolidated financial statements in conformity with Generally ) Tj ET Q q 0 0 0 rg BT 399.01 430.25 Td (Accepted ) Tj ET Q q 0 0 0 rg BT 438.71 430.25 Td (Accounting Principles ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.25 Td (\("GAAP"\) requires management to make estimates and assumptions that af) Tj ET Q q 0 0 0 rg BT 368.96 418.25 Td (fect the reported amounts of assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.25 Td (liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.25 Td (reported amounts of revenues and expenses during the reporting period. ) Tj ET Q q 0 0 0 rg BT 357.08 394.25 Td (Actual results could dif) Tj ET Q q 0 0 0 rg BT 450.49 394.25 Td (fer from those estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.25 Td (As a result of the acquisition of Rofin in the first quarter of fiscal 2017, we reor) Tj ET Q q 0 0 0 rg BT 385.79 370.25 Td (ganized our prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 370.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 370.25 Td ( reporting segments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.25 Td (\(Specialty Laser Systems and Commercial Lasers and Components\) into two new reporting segments for the combined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 346.25 Td (company based upon the or) Tj ET Q q 0 0 0 rg BT 177.79 346.25 Td (ganizational structure of the combined company and how the chief operating decision maker ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.25 Td (\("CODM"\) receives and utilizes information provided to allocate resources and make decisions: OEM Laser Sources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.25 Td (\(OLS\) and Industrial Lasers & Systems \(ILS\). ) Tj ET Q q 0 0 0 rg BT 272.39 322.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 321.73 322.25 Td (, our segment information was restated retroactively in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.25 Td (first quarter of fiscal 2017. Rofin's operating results have primarily been included in our Industrial Lasers & Systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.25 Td (segment.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (2. RECENT) Tj ET Q q 0 0 0 rg BT 108.49 262.25 Td ( ) Tj ET Q q 0 0 0 rg BT 110.44 262.25 Td (ACCOUNTING ST) Tj ET Q q 0 0 0 rg BT 193.88 262.25 Td (ANDARDS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 238.25 Td (Adoption of New ) Tj ET Q q 0 0 0 rg BT 141.67 238.25 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 203.43 238.25 Td (onouncement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.25 Td (In November 2016, the F) Tj ET Q q 0 0 0 rg BT 167.57 214.25 Td (ASB issued amended guidance that require a statement of cash flows to explain the change during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 202.25 Td (the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.25 Td (equivalents. ) Tj ET Q q 0 0 0 rg BT 117.86 190.25 Td (Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.25 Td (with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.25 Td (statement of cash flows. ) Tj ET Q q 0 0 0 rg BT 166.46 166.25 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 299.28 166.25 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q q 0 0 0 rg BT 530.42 166.25 Td (W) Tj ET Q q 0 0 0 rg BT 539.05 166.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 154.25 Td (elected to early adopt the standard in the first quarter of fiscal 2017 on a retrospective basis with no impact on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 142.25 Td (condensed consolidated financial statements and disclosures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.25 Td (In ) Tj ET Q q 0 0 0 rg BT 77.78 118.25 Td (April 2015, the F) Tj ET Q q 0 0 0 rg BT 145.92 118.25 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 67.50 106.25 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 94.25 Td (carrying amount of that debt liability) Tj ET Q q 0 0 0 rg BT 214.31 94.25 Td (, consistent with debt discounts. ) Tj ET Q q 0 0 0 rg BT 344.40 94.25 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 82.25 Td (issuance costs are not af) Tj ET Q q 0 0 0 rg BT 163.95 82.25 Td (fected by the amended guidance. ) Tj ET Q q 0 0 0 rg BT 297.60 82.25 Td (The new standard became ef) Tj ET Q q 0 0 0 rg BT 411.80 82.25 Td (fective for our fiscal year beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.25 Td (October 2, 2016. ) Tj ET Q q 0 0 0 rg BT 137.03 70.25 Td (W) Tj ET Q q 0 0 0 rg BT 145.66 70.25 Td (e elected to early adopt the standard in the second quarter of fiscal 2016 and had recorded debt issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 58.25 Td (costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.83 58.25 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.72 58.25 Td ( in other assets for the debt commitment we entered into in the second quarter of fiscal 2016 because ) Tj ET Q endstream endobj 21 0 obj <>] /Rotate 0 /Contents 22 0 R>> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 33.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 740.10 Td (the debt was not outstanding as of October 1, 2016. ) Tj ET Q q 0 0 0 rg BT 275.62 740.10 Td (The debt issuance costs related to the term loan facility were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 728.10 Td (reclassified to debt in the first quarter of fiscal 2017 when we drew down the debt.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 704.10 Td (Recently Issued ) Tj ET Q q 0 0 0 rg BT 136.39 704.10 Td (Accounting Pr) Tj ET Q q 0 0 0 rg BT 198.15 704.10 Td (onouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 680.10 Td (In January 2017, the F) Tj ET Q q 0 0 0 rg BT 156.46 680.10 Td (ASB issued amended guidance that simplifies the subsequent measurement of goodwill by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 668.10 Td (eliminating Step 2 from the goodwill impairment test. Under the existing guidance, when computing the implied fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 656.10 Td (of goodwill under Step 2, an entity is required to perform procedures to determine the fair value at the impairment testing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 644.10 Td (date of its assets and liabilities following the procedure that would be required in determining the fair value of assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 632.10 Td (acquired and liabilities assumed in a business combination. Under the amendments in this update, an entity should simply ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 620.10 Td (perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 608.10 Td (amount. ) Tj ET Q q 0 0 0 rg BT 101.94 608.10 Td (An entity should recognize an impairment char) Tj ET Q q 0 0 0 rg BT 290.03 608.10 Td (ge for the amount by which the carrying amount exceeds the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 596.10 Td (reporting unit's fair value. ) Tj ET Q q 0 0 0 rg BT 173.26 596.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 306.08 596.10 Td (fective for our fiscal year beginning October 2, 2021. ) Tj ET Q q 0 0 0 rg BT 521.66 596.10 Td (W) Tj ET Q q 0 0 0 rg BT 530.29 596.10 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 584.10 Td (currently assessing the impact of this amended guidance and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 560.10 Td (In October 2016, the F) Tj ET Q q 0 0 0 rg BT 157.57 560.10 Td (ASB issued amended guidance that improves the accounting for the income tax consequences of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 548.10 Td (intra-entity transfers of assets other than inventory) Tj ET Q q 0 0 0 rg BT 268.46 548.10 Td (. Under the new guidance, an entity should recognize the income tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 536.10 Td (consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ) Tj ET Q q 0 0 0 rg BT 458.84 536.10 Td (The new standard will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 524.10 Td (become ef) Tj ET Q q 0 0 0 rg BT 108.68 524.10 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q q 0 0 0 rg BT 339.81 524.10 Td (W) Tj ET Q q 0 0 0 rg BT 348.45 524.10 Td (e are currently assessing the impact of this amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 512.10 Td (guidance and the timing of adoption.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 488.10 Td (In March 2016, the F) Tj ET Q q 0 0 0 rg BT 151.46 488.10 Td (ASB issued amended guidance that simplifies several aspects of the accounting for employee share-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 476.10 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 67.50 464.10 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 67.50 452.10 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 460.22 452.10 Td (This change eliminates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 440.10 Td (the notion of the ) Tj ET Q q 0 0 0 rg BT 135.27 440.10 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 67.50 428.10 Td (deficiencies. ) Tj ET Q q 0 0 0 rg BT 120.07 428.10 Td (The new standard will become ef) Tj ET Q q 0 0 0 rg BT 252.89 428.10 Td (fective for our fiscal year beginning October 1, 2017. ) Tj ET Q q 0 0 0 rg BT 468.47 428.10 Td (W) Tj ET Q q 0 0 0 rg BT 477.10 428.10 Td (e are currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 416.10 Td (assessing the impact of this amended guidance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 392.10 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 143.70 392.10 Td (ASB amended the ) Tj ET Q q 0 0 0 rg BT 218.41 392.10 Td (Accounting Standards Codification and created a new ) Tj ET Q q 0 0 0 rg BT 436.21 392.10 Td (T) Tj ET Q q 0 0 0 rg BT 441.62 392.10 Td (opic 606, "Revenue from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 380.10 Td (Contracts with Customers". In May 2016, accounting guidance was issued to clarify the not yet ef) Tj ET Q q 0 0 0 rg BT 458.81 380.10 Td (fective revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 368.10 Td (recognition guidance issued in May 2014. ) Tj ET Q q 0 0 0 rg BT 237.56 368.10 Td (This additional guidance does not change the core principle of the revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 356.10 Td (recognition guidance issued in May 2014, rather) Tj ET Q q 0 0 0 rg BT 260.66 356.10 Td (, it provides clarification of accounting for collections of sales taxes as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 344.10 Td (well as recognition of revenue \(i\) associated with contract modifications, \(ii\) for noncash consideration, and \(iii\) based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 332.10 Td (the collectability of the consideration from the customer) Tj ET Q q 0 0 0 rg BT 291.60 332.10 Td (. ) Tj ET Q q 0 0 0 rg BT 296.42 332.10 Td (The guidance also specifies when a contract should be considered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 320.10 Td (completed for purposes of applying the transition guidance. ) Tj ET Q q 0 0 0 rg BT 316.97 320.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 342.60 320.10 Td (fective date and transition requirements for this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 308.10 Td (guidance are the same as the ef) Tj ET Q q 0 0 0 rg BT 191.70 308.10 Td (fective date and transition requirements for the guidance previously issued in 2014, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 296.10 Td (ef) Tj ET Q q 0 0 0 rg BT 75.09 296.10 Td (fective for our fiscal year beginning September 30, 2018. ) Tj ET Q q 0 0 0 rg BT 306.22 296.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.86 296.10 Td (e are currently evaluating the new guidance and do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 284.10 Td (expect the guidance to have a material impact on our financial statements. ) Tj ET Q q 0 0 0 rg BT 365.81 284.10 Td (W) Tj ET Q q 0 0 0 rg BT 374.45 284.10 Td (e have not decided upon the method of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 272.10 Td (adoption.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 248.10 Td (3. ) Tj ET Q q 0 0 0 rg BT 68.00 248.10 Td (BUSINESS COMBINA) Tj ET Q q 0 0 0 rg BT 167.56 248.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 228.10 Td (Fiscal 2017 ) Tj ET Q q 0 0 0 rg BT 117.44 228.10 Td (Acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 208.10 Td (Rofin) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 191.10 Td (On November 7, 2016, we completed our previously announced acquisition of Rofin pursuant to the Mer) Tj ET Q q 0 0 0 rg BT 488.00 191.10 Td (ger ) Tj ET Q q 0 0 0 rg BT 502.72 191.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 179.10 Td (dated March 16, 2016. Rofin is one of the world's leading developers and manufacturers of high-performance industrial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 167.10 Td (laser sources and laser) Tj ET Q q 0 0 0 rg BT 157.48 167.10 Td (-based solutions and components. Rofin has primarily been included in our Industrial Lasers & ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 155.10 Td (Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 131.10 Td (As a condition of the acquisition, we are required to divest ourselves of Rofin) Tj ET Q q 0 0 0 rg BT 381.26 131.10 Td (s low power CO2 laser business based in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 119.10 Td (Hull, United Kingdom, and will report this business separately as a discontinued operation until it is divested \(See Note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 107.10 Td (18\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 83.10 Td (Due to the timing of the acquisition, the total purchase consideration has been allocated to the tangible and identifiable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 71.10 Td (intangible assets acquired and liabilities assumed based on a preliminary valuation analysis. ) Tj ET Q q 0 0 0 rg BT 437.44 71.10 Td (These preliminary values may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 59.10 Td (change in future reporting periods upon finalization of the valuation, which will occur no later than the third quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 47.10 Td (fiscal 2017.) 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 301.00 31.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (The total preliminary purchase consideration allocated to net assets acquired was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.53 730.10 Td ($936.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.42 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (consisted of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 707.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 707.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 677.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 677.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 647.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 647.60 100.00 -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 407.5 677.6 m 507.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 677.6 m 507.5 677.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 632.6 m 507.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 632.6 m 507.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 618.6 m 507.5 618.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 616.6 m 507.5 616.6 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 697.27 Td (Cash consideration to Rofin's shareholders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 697.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 697.27 Td (904,491) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 682.27 Td (Cash settlement paid for Rofin employee stock options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 682.27 Td (15,290) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 667.27 Td (Total cash payments to Rofin shareholders and option holders) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 667.27 Td (919,781) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 652.27 Td (Add: fair value of previously owned Rofin shares) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 652.27 Td (20,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 637.27 Td (Less: post-merger stock compensation expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 637.32 Td (\(4,152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 637.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 622.27 Td (Total purchase price to allocate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 622.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 622.27 Td (936,314) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 594.10 Td (The acquisition was an all-cash transaction at a price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.36 594.10 Td ($32.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.86 594.10 Td ( per share of Rofin common stock. ) Tj ET Q q 0 0 0 rg BT 460.75 594.10 Td (W) Tj ET Q q 0 0 0 rg BT 469.39 594.10 Td (e funded the payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 582.10 Td (of the aggregate consideration with a combination of our available cash on hand and the proceeds from the Euro ) Tj ET Q q 0 0 0 rg BT 519.05 582.10 Td (T) Tj ET Q q 0 0 0 rg BT 524.46 582.10 Td (erm ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 570.10 Td (Loan described in Note 9. ) Tj ET Q q 0 0 0 rg BT 173.90 570.10 Td (The total payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.98 570.10 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.87 570.10 Td ( due to the cancellation of options held by employees of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 558.10 Td (Rofin was allocated between total estimated mer) Tj ET Q q 0 0 0 rg BT 262.19 558.10 Td (ger consideration of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.67 558.10 Td ($1) Tj ET Q q 0 0 0 rg BT 354.29 558.10 Td (1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.19 558.10 Td ( and post-mer) Tj ET Q q 0 0 0 rg BT 452.99 558.10 Td (ger stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 546.10 Td (compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.58 546.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.47 546.10 Td ( based on the portion of the total service period of the underlying options that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 534.10 Td (not been completed by the mer) Tj ET Q q 0 0 0 rg BT 191.39 534.10 Td (ger date. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 510.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 510.10 Td (e recognized a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.42 510.10 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.32 510.10 Td ( in the first quarter of fiscal 2017 on the increase in fair value from the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 498.10 Td (purchase for the shares we already owned.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 474.10 Td (Under the acquisition method of accounting, the total estimated acquisition consideration is allocated to the acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 462.10 Td (tangible and intangible assets and assumed liabilities of Rofin based on their fair values as of the acquisition date. ) Tj ET Q q 0 0 0 rg BT 524.55 462.10 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 450.10 Td (excess of the acquisition consideration over the fair value of assets acquired and liabilities assumed is allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 438.10 Td (goodwill. ) Tj ET Q q 0 0 0 rg BT 108.38 438.10 Td (W) Tj ET Q q 0 0 0 rg BT 117.01 438.10 Td (e expect that all such goodwill will not be deductible for tax purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 414.10 Td (Our preliminary allocation of the purchase price is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 395.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 395.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 365.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 365.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 335.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 335.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 305.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 305.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 275.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 275.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 245.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 245.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 215.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 215.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 185.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 185.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 155.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 155.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 125.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 125.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 121.50 95.60 286.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 95.60 100.00 -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 407.5 80.60000000000002 m 507.5 80.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 80.60000000000002 m 507.5 80.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 66.60000000000002 m 507.5 66.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 64.60000000000002 m 507.5 64.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 385.27 Td (Cash, cash equivalents and short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 385.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 385.27 Td (163,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 370.27 Td (Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 370.27 Td (90,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 355.27 Td (Inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 355.27 Td (191,159) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 340.27 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 340.27 Td (20,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 325.27 Td (Assets held-for-sale, current) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 325.27 Td (63,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 310.27 Td (Property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 310.27 Td (126,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 295.27 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 295.27 Td (28,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 280.27 Td (Intangible assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 265.27 Td ( Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 265.27 Td (169,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 250.27 Td ( In-process research and development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 250.27 Td (6,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 235.27 Td ( Backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 235.27 Td (5,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 220.27 Td ( Customer relationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 220.27 Td (39,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 205.27 Td ( Trademarks) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 205.27 Td (5,699) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 190.27 Td ( Patents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 190.27 Td (300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 175.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 175.27 Td (265,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 160.27 Td (Current portion of long-term obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 160.32 Td (\(3,633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 160.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 145.27 Td (Current liabilities held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.80 145.32 Td (\(7,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 145.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 130.27 Td (Accounts payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 130.32 Td (\(21,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 130.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 115.27 Td (Other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 115.32 Td (\(70,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 115.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 100.27 Td (Long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.80 100.32 Td (\(11,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 100.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 85.27 Td (Other long-term liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.80 85.32 Td (\(125,539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 85.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 70.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 70.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 70.27 Td (936,314) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 46.10 Td (The fair value write-up of acquired finished goods and work-in-process inventory was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.11 46.10 Td ($26.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.01 46.10 Td (, which will be ) 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 301.15 31.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 31.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (amortized over the expected period during which the acquired inventory is sold, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.23 742.10 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.23 742.10 Td ( months. ) Tj ET Q q 0 0 0 rg BT 442.62 742.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 491.96 742.10 Td (, for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.84 742.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.93 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.88 730.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.49 730.10 Td (, we recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.13 730.10 Td ($13.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.02 730.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.46 730.10 Td ($21.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.35 730.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 447.01 730.10 Td (, of incremental cost of sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (associated with the fair value write-up of inventory acquired in the mer) Tj ET Q q 0 0 0 rg BT 352.44 718.10 Td (ger with Rofin.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (The fair value write-up of acquired property) Tj ET Q q 0 0 0 rg BT 243.94 694.10 Td (, plant and equipment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.91 694.10 Td ($36.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 694.10 Td ( will be amortized over the useful lives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (of the assets. Property) Tj ET Q q 0 0 0 rg BT 155.67 682.10 Td (, plant and equipment is valued at its value-in-use, unless there was a known plan to dispose of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (asset.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (The acquired existing technology) Tj ET Q q 0 0 0 rg BT 200.92 646.10 Td (, backlog, trademarks and patents are being amortized on a straight-line basis, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (approximates the economic use of the asset, over their estimated useful lives of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.35 634.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.35 634.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.12 634.10 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.12 634.10 Td ( years, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.72 634.10 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.72 634.10 Td ( months, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.67 634.10 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.67 634.10 Td ( years, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.21 634.10 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.21 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (years, respectively) Tj ET Q q 0 0 0 rg BT 141.76 622.10 Td (. Customer relationships are being amortized on an accelerated basis utilizing free cash flows over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (periods ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.92 610.10 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.92 610.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.70 610.10 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.70 610.10 Td ( years. ) Tj ET Q q 0 0 0 rg BT 211.12 610.10 Td (The useful lives of in-process research and development will be defined in the future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (upon further evaluation of the status of these applications. ) Tj ET Q q 0 0 0 rg BT 302.20 598.10 Td (The fair value of the acquired intangibles was determined using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td (the income approach. In performing these valuations, the key underlying probability-adjusted assumptions of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td (discounted cash flows were projected revenues, gross mar) Tj ET Q q 0 0 0 rg BT 299.96 574.10 Td (gin expectations and operating cost estimates. ) Tj ET Q q 0 0 0 rg BT 485.56 574.10 Td (The valuations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td (were based on the information that was available as of the acquisition date and the expectations and assumptions that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.10 Td (been deemed reasonable by our management. ) Tj ET Q q 0 0 0 rg BT 252.46 550.10 Td (There are inherent uncertainties and management judgment required in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td (determinations. ) Tj ET Q q 0 0 0 rg BT 132.25 538.10 Td (This acquisition resulted in a purchase price that exceeded the estimated fair value of tangible and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td (intangible assets, which was allocated to goodwill.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 502.10 Td (e ) Tj ET Q q 0 0 0 rg BT 83.59 502.10 Td (believe ) Tj ET Q q 0 0 0 rg BT 114.98 502.10 Td (the ) Tj ET Q q 0 0 0 rg BT 129.71 502.10 Td (amount ) Tj ET Q q 0 0 0 rg BT 162.22 502.10 Td (of ) Tj ET Q q 0 0 0 rg BT 173.06 502.10 Td (goodwill ) Tj ET Q q 0 0 0 rg BT 211.13 502.10 Td (relative ) Tj ET Q q 0 0 0 rg BT 243.63 502.10 Td (to ) Tj ET Q q 0 0 0 rg BT 253.92 502.10 Td (identifiable ) Tj ET Q q 0 0 0 rg BT 301.97 502.10 Td (intangible ) Tj ET Q q 0 0 0 rg BT 344.48 502.10 Td (assets ) Tj ET Q q 0 0 0 rg BT 370.32 502.10 Td (relates ) Tj ET Q q 0 0 0 rg BT 398.93 502.10 Td (to ) Tj ET Q q 0 0 0 rg BT 409.23 502.10 Td (several ) Tj ET Q q 0 0 0 rg BT 440.06 502.10 Td (factors ) Tj ET Q q 0 0 0 rg BT 469.78 502.10 Td (including: ) Tj ET Q q 0 0 0 rg BT 512.84 502.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 527.02 502.10 Td (potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (buyer) Tj ET Q q 0 0 0 rg BT 90.57 490.10 Td (-specific ) Tj ET Q q 0 0 0 rg BT 127.93 490.10 Td (syner) Tj ET Q q 0 0 0 rg BT 149.41 490.10 Td (gies ) Tj ET Q q 0 0 0 rg BT 168.45 490.10 Td (related ) Tj ET Q q 0 0 0 rg BT 198.59 490.10 Td (to ) Tj ET Q q 0 0 0 rg BT 209.30 490.10 Td (market ) Tj ET Q q 0 0 0 rg BT 240.00 490.10 Td (opportunities ) Tj ET Q q 0 0 0 rg BT 295.71 490.10 Td (for ) Tj ET Q q 0 0 0 rg BT 310.31 490.10 Td (a ) Tj ET Q q 0 0 0 rg BT 317.68 490.10 Td (combined ) Tj ET Q q 0 0 0 rg BT 360.05 490.10 Td (product ) Tj ET Q q 0 0 0 rg BT 393.54 490.10 Td (of) Tj ET Q q 0 0 0 rg BT 401.69 490.10 Td (fering; ) Tj ET Q q 0 0 0 rg BT 431.28 490.10 Td (and ) Tj ET Q q 0 0 0 rg BT 448.65 490.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 463.25 490.10 Td (potential ) Tj ET Q q 0 0 0 rg BT 501.17 490.10 Td (to ) Tj ET Q q 0 0 0 rg BT 511.89 490.10 Td (leverage ) Tj ET Q q 0 0 0 rg BT 548.69 490.10 Td (our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (sales ) Tj ET Q q 0 0 0 rg BT 89.94 478.10 Td (force ) Tj ET Q q 0 0 0 rg BT 112.98 478.10 Td (to ) Tj ET Q q 0 0 0 rg BT 123.25 478.10 Td (attract ) Tj ET Q q 0 0 0 rg BT 150.73 478.10 Td (new ) Tj ET Q q 0 0 0 rg BT 169.89 478.10 Td (customers ) Tj ET Q q 0 0 0 rg BT 212.94 478.10 Td (and ) Tj ET Q q 0 0 0 rg BT 229.88 478.10 Td (revenue ) Tj ET Q q 0 0 0 rg BT 264.03 478.10 Td (and ) Tj ET Q q 0 0 0 rg BT 280.96 478.10 Td (cross ) Tj ET Q q 0 0 0 rg BT 304.02 478.10 Td (sell ) Tj ET Q q 0 0 0 rg BT 320.40 478.10 Td (to ) Tj ET Q q 0 0 0 rg BT 330.68 478.10 Td (existing ) Tj ET Q q 0 0 0 rg BT 364.85 478.10 Td (customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.10 Td (In-process research and development \(IPR&D\) consists of two projects that have not yet reached technological ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (feasibility) Tj ET Q q 0 0 0 rg BT 107.34 442.10 Td (. ) Tj ET Q q 0 0 0 rg BT 111.79 442.10 Td (Acquired IPR&D assets are initially recognized at fair value and are classified as indefinite-lived assets until the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (successful completion or abandonment of the associated research and development ef) Tj ET Q q 0 0 0 rg BT 409.91 430.10 Td (forts. ) Tj ET Q q 0 0 0 rg BT 433.06 430.10 Td (The value assigned to IPR&D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (was determined by considering the value of the products under development to the overall development plan, estimating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.10 Td (the resulting net cash flows from the projects when completed and discounting the net cash flows to their present value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.10 Td (During the development period, these assets will not be amortized as char) Tj ET Q q 0 0 0 rg BT 362.73 394.10 Td (ges to earnings; instead these assets will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (subject to periodic impairment testing. Upon successful completion of the development process for the acquired IPR&D ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (projects, the assets would then be considered finite-lived intangible assets and amortization of the assets will commence. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (The projects have not been completed as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.49 358.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.10 358.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 334.10 Td (e expensed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.28 334.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.17 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.61 334.10 Td ($17.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.50 334.10 Td ( of acquisition-related costs as selling, general and administrative expenses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.10 Td (our consolidated statements of operations in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.56 322.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.98 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.93 322.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.54 322.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 479.20 322.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.10 Td (The results of this acquisition were included in our consolidated operations beginning on November 7, 2016. ) Tj ET Q q 0 0 0 rg BT 505.50 298.10 Td (The amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 286.10 Td (of continuing Rofin net sales and net loss from continuing operations included in our condensed consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 Td (operations for the three months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.29 274.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.90 274.10 Td ( was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.71 274.10 Td ($1) Tj ET Q q 0 0 0 rg BT 365.34 274.10 Td (10.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.23 274.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.67 274.10 Td ($17.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.56 274.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 540.22 274.10 Td (. ) Tj ET Q q 0 0 0 rg BT 545.04 274.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.10 Td (amount of continuing Rofin net sales and net loss from continuing operations included in our condensed consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (statements of operations for the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.52 250.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.13 250.10 Td ( was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.94 250.10 Td ($185.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.83 250.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.27 250.10 Td ($29.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.16 250.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 238.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 68 212.76699218750002 m 207.4189453125 212.76699218750002 l s q 0 0 0 rg BT 68.00 214.10 Td (Unaudited Pro Forma Information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (The following unaudited pro forma financial information presents our combined results of operations as if the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 178.10 Td (of Rofin and the related issuance of our Euro ) Tj ET Q q 0 0 0 rg BT 250.26 178.10 Td (T) Tj ET Q q 0 0 0 rg BT 255.67 178.10 Td (erm Loan had occurred on October 4, 2015. ) Tj ET Q q 0 0 0 rg BT 433.21 178.10 Td (The unaudited pro forma ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 166.10 Td (financial information is not necessarily indicative of what our condensed consolidated results of operations actually would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 154.10 Td (have been had the acquisition been completed on October 4, 2015. In addition, the unaudited pro forma financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td (information does not attempt to project the future results of operations of the combined company) Tj ET Q q 0 0 0 rg BT 455.03 142.10 Td (. ) Tj ET Q q 0 0 0 rg BT 459.85 142.10 Td (The actual results may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 130.10 Td (dif) Tj ET Q q 0 0 0 rg BT 78.93 130.10 Td (fer significantly from the pro forma results presented here due to many factors.) 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 (12) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 719.50 135.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.50 719.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 719.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 719.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 719.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 719.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 719.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 719.50 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 689.50 135.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.50 689.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 689.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 689.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 689.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 689.50 72.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 100.50 659.50 135.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 235.50 659.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 305.50 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 309.50 659.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 659.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 452.50 659.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 659.50 72.00 -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 235.5 737.5 m 305.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305.5 737.5 m 309.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 737.5 m 378.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 737.5 m 452.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 737.5 m 456.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 737.5 m 528.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235.5 737.5 m 305.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 235.5 719.5 m 305.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 737.5 m 378.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309.5 719.5 m 378.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 737.5 m 452.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 719.5 m 452.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 737.5 m 528.5 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 719.5 m 528.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382.5 719.5 m 452.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 719.5 m 528.5 719.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 270.10 740.58 Td (Thr) Tj ET Q q 0 0 0 rg BT 283.29 740.58 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.40 740.58 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 103.00 723.73 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.85 729.58 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 262.00 721.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.35 729.58 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.50 721.63 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.85 729.58 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 409.00 721.63 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.85 729.58 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.00 721.63 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 709.17 Td (Total net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 709.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.15 709.17 Td (432,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 709.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.15 709.17 Td (308,898) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.00 709.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 709.17 Td (822,814) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 709.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 709.17 Td (609,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 694.17 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.15 694.17 Td (55,519) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.80 694.22 Td (\(6,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 694.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.00 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 694.17 Td (94,702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 694.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.80 694.22 Td (\(38,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 694.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 679.17 Td (Net income \(loss\) per share:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 664.17 Td (Basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 664.17 Td (2.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.80 664.22 Td (\(0.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 664.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 664.17 Td (3.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 664.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.80 664.22 Td (\(1.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 664.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 649.17 Td (Diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 649.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 649.17 Td (2.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 649.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.80 649.22 Td (\(0.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 649.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.00 649.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 649.17 Td (3.83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 649.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.80 649.22 Td (\(1.59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 649.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 628.00 Td (The unaudited pro forma financial information above includes the net income of Rofin) Tj ET Q q 0 0 0 rg BT 417.34 628.00 Td (s low power CO2 laser business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 616.00 Td (based in Hull, United Kingdom, which is recorded as a discontinued operation in the three and six months ended ) Tj ET Q q 0 0 0 rg BT 520.40 616.00 Td (April 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 604.00 Td (2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 580.00 Td (The unaudited pro forma financial information above reflects the following material adjustments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 556.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 556.00 Td (Incremental amortization and depreciation expense related to the estimated fair value of identifiable intangible assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 544.00 Td (and property) Tj ET Q q 0 0 0 rg BT 136.17 544.00 Td (, plant and equipment from the purchase price allocation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 532.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 532.00 Td (The exclusion of amortization of inventory step-up to its estimated fair value from the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 520.00 Td (April 1, 2017 and the addition of the amortization to the three and six months ended ) Tj ET Q q 0 0 0 rg BT 423.98 520.00 Td (April 2, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 508.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 508.00 Td (The exclusion of revenue adjustments as a result of the reduction in customer deposits and deferred revenue related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 496.00 Td (its estimated fair value from the three and six months ended ) Tj ET Q q 0 0 0 rg BT 327.32 496.00 Td (April 1, 2017 and the addition of these adjustments to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 484.00 Td (three and six months ended ) Tj ET Q q 0 0 0 rg BT 197.37 484.00 Td (April 2, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 472.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 472.00 Td (Incremental interest expense and amortization of debt issuance costs related to our Euro ) Tj ET Q q 0 0 0 rg BT 439.86 472.00 Td (T) Tj ET Q q 0 0 0 rg BT 445.27 472.00 Td (erm Loan and Revolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 460.00 Td (Credit ) Tj ET Q q 0 0 0 rg BT 112.94 460.00 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 448.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 448.00 Td (The exclusion of acquisition costs incurred by both Coherent and Rofin from the three and six months ended ) Tj ET Q q 0 0 0 rg BT 522.57 448.00 Td (April 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 436.00 Td (2017 and the addition of these costs to the three and six months ended ) Tj ET Q q 0 0 0 rg BT 368.17 436.00 Td (April 2, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 424.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 424.00 Td (The exclusion of a stock-based compensation char) Tj ET Q q 0 0 0 rg BT 287.42 424.00 Td (ge related to the acceleration of Rofin options from the six months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 412.00 Td (ended ) Tj ET Q q 0 0 0 rg BT 111.83 412.00 Td (April 1, 2017 and the addition of this char) Tj ET Q q 0 0 0 rg BT 279.67 412.00 Td (ge to the six months ended ) Tj ET Q q 0 0 0 rg BT 388.54 412.00 Td (April 2, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 400.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 400.00 Td (The exclusion of a gain on business combination for our previously owned shares of Rofin from the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 388.00 Td (April 1, 2017 and the addition of this gain to the six months ended ) Tj ET Q q 0 0 0 rg BT 353.47 388.00 Td (April 2, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 376.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 376.00 Td (The exclusion of a foreign exchange gain on forward contracts related to our debt commitment and debt issuance from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 364.00 Td (the six months ended ) Tj ET Q q 0 0 0 rg BT 172.66 364.00 Td (April 1, 2017 and the addition of this gain to the six months ended ) Tj ET Q q 0 0 0 rg BT 440.13 364.00 Td (April 2, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 352.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 352.00 Td (The estimated tax impact of the above adjustments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 316.00 Td (4.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 57.50 316.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 316.00 Td (F) Tj ET Q q 0 0 0 rg BT 75.37 316.00 Td (AIR ) Tj ET Q q 0 0 0 rg BT 96.02 316.00 Td (V) Tj ET Q q 0 0 0 rg BT 101.95 316.00 Td (ALUES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 292.00 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 292.00 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 68.00 280.00 Td (period. ) Tj ET Q q 0 0 0 rg BT 98.37 280.00 Td (W) Tj ET Q q 0 0 0 rg BT 107.00 280.00 Td (e recognize transfers between levels within the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 374.28 280.00 Td (, if any) Tj ET Q q 0 0 0 rg BT 401.68 280.00 Td (, at the end of each quarter) Tj ET Q q 0 0 0 rg BT 507.46 280.00 Td (. ) Tj ET Q q 0 0 0 rg BT 512.28 280.00 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 268.00 Td (no transfers between levels during the periods presented. ) Tj ET Q q 0 0 0 rg BT 297.10 268.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.99 268.00 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 268.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.04 268.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.74 268.00 Td (, we did not have any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 256.00 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 68.00 232.00 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 302.37 232.00 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.98 232.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.42 232.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.12 232.00 Td ( are summarized below \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 220.00 Td (thousands\):) Tj ET Q endstream endobj 29 0 obj <>] /Rotate 0 /Contents 30 0 R>> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (13) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 672.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 672.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 672.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 672.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 672.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 672.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 672.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 672.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 642.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 642.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 642.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 642.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 642.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 642.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 642.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 642.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 612.50 158.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 612.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 612.50 47.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 612.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 612.50 60.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 612.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 612.50 49.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 612.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 612.50 47.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 612.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 612.50 60.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 612.50 4.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 612.50 49.00 -26.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 571.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 571.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 571.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 571.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 571.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 571.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 571.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 571.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 571.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 571.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 571.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 571.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 571.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 541.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 541.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 541.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 541.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 541.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 541.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 541.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 541.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 541.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 541.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 541.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 541.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 541.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 500.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 500.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 500.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 500.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 500.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 500.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 500.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 500.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 67.50 470.50 158.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 225.50 470.50 4.00 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gs 0.8 0.9333333333333333 1 rg /GS0 gs 229.50 440.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 276.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 280.50 440.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 440.50 49.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 393.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 440.50 47.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 444.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 448.50 440.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 508.50 440.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 512.50 440.50 49.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 698.5 m 229.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 698.5 m 276.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 698.5 m 280.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 698.5 m 340.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 698.5 m 344.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 698.5 m 393.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 698.5 m 444.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 698.5 m 448.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 698.5 m 508.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 698.5 m 512.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 698.5 m 561.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 225.5 685.5 m 229.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 698.5 m 276.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 685.5 m 276.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 698.5 m 280.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 276.5 685.5 m 280.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 698.5 m 340.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 685.5 m 340.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 698.5 m 344.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 685.5 m 344.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 698.5 m 393.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 685.5 m 393.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 698.5 m 444.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 685.5 m 444.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 698.5 m 448.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 685.5 m 448.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 698.5 m 508.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 685.5 m 508.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 698.5 m 512.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508.5 685.5 m 512.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 698.5 m 561.5 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 685.5 m 561.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 685.5 m 444.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444.5 685.5 m 448.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 685.5 m 508.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 685.5 m 561.5 685.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 500.5 m 276.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 486.5 m 276.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 484.5 m 276.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 500.5 m 340.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 486.5 m 340.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 484.5 m 340.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 500.5 m 393.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 486.5 m 393.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 484.5 m 393.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 500.5 m 444.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 486.5 m 444.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 484.5 m 444.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 500.5 m 508.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 486.5 m 508.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 484.5 m 508.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 500.5 m 561.5 500.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 486.5 m 561.5 486.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 484.5 m 561.5 484.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 425.5 m 276.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 411.5 m 276.5 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 229.5 409.5 m 276.5 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 425.5 m 340.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 411.5 m 340.5 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280.5 409.5 m 340.5 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 425.5 m 393.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 411.5 m 393.5 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 409.5 m 393.5 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 425.5 m 444.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 411.5 m 444.5 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397.5 409.5 m 444.5 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 425.5 m 508.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 411.5 m 508.5 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 409.5 m 508.5 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 425.5 m 561.5 425.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 411.5 m 561.5 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512.5 409.5 m 561.5 409.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.00 701.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 235.00 710.73 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.65 702.73 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.85 734.73 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.65 726.73 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.65 718.73 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.85 710.73 Td (for) Tj ET Q q 0 0 0 rg BT 298.92 710.73 Td (Identical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.30 702.73 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.05 726.73 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.35 718.73 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.90 710.73 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.35 702.73 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.00 710.73 Td (Aggregate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.65 702.73 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.85 734.73 Td (QuotedPrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.65 726.73 Td (in) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.65 718.73 Td (ActiveMarkets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 456.85 710.73 Td (forIdentical) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.30 702.73 Td (Assets) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.05 726.73 Td (Significant) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.35 718.73 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.90 710.73 Td (Observable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.35 702.73 Td (Inputs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.85 689.73 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.05 689.73 Td (October 1, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 146.00 675.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.00 676.73 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 676.73 Td (\(Level2\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 463.00 676.73 Td (\(Level1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.50 676.73 Td (\(Level2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 662.17 Td (Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 647.17 Td (Cash equivalents:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 632.17 Td (Money market fund deposits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 632.17 Td (63,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 632.17 Td (63,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 632.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.10 632.17 Td (237,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 632.17 Td (237,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 632.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 632.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 617.17 Td (Short-term investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 601.17 Td (U.S. ) Tj ET Q q 0 0 0 rg BT 102.10 601.17 Td (T) Tj ET Q q 0 0 0 rg BT 107.86 601.17 Td (reasury and agency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 591.17 Td (obligations ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 128.94 595.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.65 591.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 591.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 591.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 591.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 591.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 591.17 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 576.17 Td (Commercial paper ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 158.64 580.70 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.65 576.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 576.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 576.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.10 576.17 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 576.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 576.17 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 561.17 Td (Equity securities ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 151.43 565.70 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.65 561.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 561.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 561.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.10 561.17 Td (20,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 561.17 Td (20,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 561.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 546.17 Td (Prepaid and other assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 531.17 Td (Foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 191.68 535.70 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.65 531.17 Td (790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 531.17 Td (790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 531.17 Td (889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 531.17 Td (889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 515.17 Td (Mutual funds Deferred comp ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 505.17 Td (and supplemental plan ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 174.48 509.70 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 505.17 Td (14,953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 505.17 Td (14,953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 505.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.10 505.17 Td (14,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.15 505.17 Td (14,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 505.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 490.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 490.17 Td (79,126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 490.17 Td (78,211) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 490.17 Td (915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.10 490.17 Td (298,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 490.17 Td (272,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 490.17 Td (26,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 460.17 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 445.17 Td (Other current liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 430.17 Td (Foreign currency contracts ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 191.68 434.70 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.30 430.17 Td (\(787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.65 430.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.30 430.22 Td (\(787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 430.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.80 430.22 Td (\(3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.65 430.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.65 430.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 430.22 Td (\(3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 430.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 415.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.10 415.17 Td (78,339) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.00 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 415.17 Td (78,211) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 415.17 Td (128) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.00 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.10 415.17 Td (294,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.00 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.15 415.17 Td (272,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.00 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 415.17 Td (22,913) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 375.00 Td (___________________________________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 363.00 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.50 363.00 Td (V) Tj ET Q q 0 0 0 rg BT 78.61 363.00 Td (aluations are based upon quoted market prices.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 339.00 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.50 339.00 Td (V) Tj ET Q q 0 0 0 rg BT 78.61 339.00 Td (aluations are based upon quoted market prices in active markets involving similar assets. ) Tj ET Q q 0 0 0 rg BT 436.11 339.00 Td (The market inputs used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 327.00 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 72.50 315.00 Td (sources with reasonable levels of price transparency) Tj ET Q q 0 0 0 rg BT 280.10 315.00 Td (. Pricing sources include industry standard data providers, security ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 303.00 Td (master files from lar) Tj ET Q q 0 0 0 rg BT 153.68 303.00 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 72.50 291.00 Td (algorithm to determine a daily market value. ) Tj ET Q q 0 0 0 rg BT 252.81 291.00 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 72.50 279.00 Td (security) Tj ET Q q 0 0 0 rg BT 103.51 279.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 255.00 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.50 255.00 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 510.75 255.00 Td (-the-counter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 243.00 Td (environment with a relatively high level of price transparency) Tj ET Q q 0 0 0 rg BT 318.98 243.00 Td (. ) Tj ET Q q 0 0 0 rg BT 323.80 243.00 Td (The market participants usually are lar) Tj ET Q q 0 0 0 rg BT 477.72 243.00 Td (ge commercial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 231.00 Td (banks. Our foreign currency contracts) Tj ET Q q 0 0 0 rg BT 226.42 231.00 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 72.50 219.00 Td (public data sources and do not involve management judgment. ) Tj ET Q q 0 0 0 rg BT 324.66 219.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.61 219.00 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.22 219.00 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 207.00 Td ($790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.50 207.00 Td ( non-designated forward contracts; other current liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.63 207.00 Td ($787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.63 207.00 Td ( non-designated forward contracts. ) Tj ET Q q 0 0 0 rg BT 520.42 207.00 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 195.00 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.21 195.00 Td (, prepaid expenses and other assets include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.04 195.00 Td ($889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.04 195.00 Td ( non-designated forward contracts; other current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 183.00 Td (liabilities include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.15 183.00 Td ($3,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.65 183.00 Td ( non-designated forward contracts. See Note 6, "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 513.69 183.00 Td (Activities". ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.00 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.50 159.00 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 72.50 147.00 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 435.50 147.00 Td (-the-counter markets and listed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 135.00 Td (securities for which no sale was reported on that date are stated as the last quoted bid price. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 51.00 111.00 Td (5.) Tj ET Q BT /F2 3.00 Tf ET q 0 0 0 rg BT 58.50 111.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.25 111.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.75 111.00 Td (SHOR) Tj ET Q q 0 0 0 rg BT 98.74 111.00 Td (T) Tj ET Q q 0 0 0 rg BT 104.49 111.00 Td (-TERM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.82 111.00 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 140.32 111.00 Td (INVESTMENTS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 99.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 87.00 Td (W) Tj ET Q q 0 0 0 rg BT 77.64 87.00 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 75.00 Td (equivalents. Investments classified as available-for) Tj ET Q q 0 0 0 rg BT 272.34 75.00 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 63.00 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 63.00 Td ( equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 51.00 Td (until realized. Interest and amortization of premiums and discounts for debt securities are included in interest income. ) 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 (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 742.10 Td (Gains and losses on securities sold are determined based on the specific identification method and are included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 730.10 Td (income \(expense\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 706.10 Td (Cash, cash equivalents and short-term investments consist of the following \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 694.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 649.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 649.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 649.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 649.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 649.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 649.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 649.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 649.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 619.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 619.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 619.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 619.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 619.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 619.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 619.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 619.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 589.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 589.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 589.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 589.60 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 269.5 670.6 m 339.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 670.6 m 343.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 670.6 m 413.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 670.6 m 417.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 670.6 m 487.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 670.6 m 491.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 670.6 m 561.5 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 649.6 m 339.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 649.6 m 413.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 649.6 m 487.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 649.6 m 561.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 649.6 m 339.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 635.6 m 339.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 633.6 m 339.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 649.6 m 413.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 635.6 m 413.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 633.6 m 413.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 649.6 m 487.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 635.6 m 487.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 633.6 m 487.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 649.6 m 561.5 649.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 635.6 m 561.5 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 633.6 m 561.5 633.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 574.6 m 339.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 560.6 m 339.5 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 558.6 m 339.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 574.6 m 413.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 560.6 m 413.5 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 558.6 m 413.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 574.6 m 487.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 560.6 m 487.5 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 558.6 m 487.5 558.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 574.6 m 561.5 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 560.6 m 561.5 560.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 558.6 m 561.5 558.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 673.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.85 674.83 Td (April 1, 2017) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 652.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 653.83 Td (CostBasis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 661.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 373.03 661.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.95 653.83 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 661.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 447.03 661.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.85 653.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 653.83 Td (FairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 640.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 639.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 639.27 Td (432,980) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 639.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 639.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 639.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 639.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 639.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 639.27 Td (432,980) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 72.00 622.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 622.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 622.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 609.27 Td (Short-term investments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 607.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 607.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 607.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 607.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 594.27 Td (Available-for-sale securities:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 592.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 592.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 592.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 592.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 580.17 Td (U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 579.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 579.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 579.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 579.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 579.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 579.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 579.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 579.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 564.27 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 564.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 564.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 564.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 564.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 564.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 564.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 564.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 564.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.75 548.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 503.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 503.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 503.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 503.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 503.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 503.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 503.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 503.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 473.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 473.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 473.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 473.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 473.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 473.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 473.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 473.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 443.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 443.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 443.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 443.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 443.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 443.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 413.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 413.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 343.50 413.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 413.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 413.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 491.50 413.60 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 269.5 524.6 m 339.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 524.6 m 343.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 524.6 m 413.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 524.6 m 417.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 524.6 m 487.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 524.6 m 491.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 524.6 m 561.5 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 503.6 m 339.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 503.6 m 413.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 503.6 m 487.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 503.6 m 561.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 503.6 m 339.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 489.6 m 339.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 487.6 m 339.5 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 503.6 m 413.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 489.6 m 413.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 487.6 m 413.5 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 503.6 m 487.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 489.6 m 487.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 487.6 m 487.5 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 503.6 m 561.5 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 489.6 m 561.5 489.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 487.6 m 561.5 487.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 398.6 m 339.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 398.6 m 413.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 398.6 m 487.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 398.6 m 561.5 398.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 398.6 m 339.5 398.6 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 269.5 382.6 m 339.5 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 398.6 m 413.5 398.6 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 343.5 382.6 m 413.5 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 398.6 m 487.5 398.6 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 417.5 382.6 m 487.5 382.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 398.6 m 561.5 398.6 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 491.5 382.6 m 561.5 382.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 527.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.05 528.83 Td (October 1, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 506.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.30 507.83 Td (CostBasis) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.40 515.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 373.03 515.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.95 507.83 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.40 515.83 Td (Unr) Tj ET Q q 0 0 0 rg BT 447.03 515.83 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.85 507.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 507.83 Td (FairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.17 Td (Cash and cash equivalents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 493.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 493.27 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 493.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 493.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 493.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 493.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 493.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 493.27 Td (354,347) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 72.00 476.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 476.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 476.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 463.27 Td (Short-term investments:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 461.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 461.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 461.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 461.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.00 448.27 Td (Available-for-sale securities:) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 336.00 446.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 410.00 446.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 484.00 446.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 558.00 446.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 434.17 Td (Commercial paper) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 433.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 433.27 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 433.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 433.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 433.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 433.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 433.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 433.27 Td (24,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 418.27 Td ( U.S. Treasury and agency obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 418.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 418.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 418.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 418.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 404.17 Td (Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 403.27 Td (15,269) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 403.27 Td (5,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 403.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 403.27 Td (20,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 388.27 Td (Total short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 388.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 388.27 Td (40,393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 388.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 388.27 Td (5,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 388.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 388.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 388.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 388.27 Td (45,606) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 360.10 Td (None of the unrealized losses as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.35 360.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.96 360.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.29 360.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.99 360.10 Td ( were considered to be other) Tj ET Q q 0 0 0 rg BT 454.80 360.10 Td (-than-temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 348.10 Td (impairments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 324.10 Td (The amortized cost and estimated fair value of available-for) Tj ET Q q 0 0 0 rg BT 308.14 324.10 Td (-sale investments in debt securities as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 324.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.76 324.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 312.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.71 312.10 Td ( classified as short-term investments on our condensed consolidated balance sheet were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 300.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 69.50 261.60 180.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 249.50 261.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 319.50 261.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 323.50 261.60 80.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 403.50 261.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 407.50 261.60 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 477.50 261.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 261.60 80.00 -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 249.5 276.6 m 319.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319.5 276.6 m 323.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 276.6 m 403.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 276.6 m 477.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 276.6 m 481.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 276.6 m 561.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 276.6 m 403.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 276.6 m 561.5 276.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 261.6 m 319.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 237.60000000000002 m 319.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249.5 235.60000000000002 m 319.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 261.6 m 403.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 237.60000000000002 m 403.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323.5 235.60000000000002 m 403.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 261.6 m 477.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 237.60000000000002 m 477.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407.5 235.60000000000002 m 477.5 235.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 261.6 m 561.5 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 237.60000000000002 m 561.5 237.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 235.60000000000002 m 561.5 235.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 279.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.85 280.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.05 280.83 Td (October 1, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 72.00 264.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 257.00 265.83 Td (AmortizedCost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.80 265.83 Td (EstimatedFair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.00 265.83 Td (AmortizedCost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.80 265.83 Td (EstimatedFairValue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 252.17 Td (Investments in available-for-sale debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 242.17 Td (securities due in less than one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.65 241.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 241.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 241.27 Td (25,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 241.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 241.27 Td (25,124) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 225.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 213.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 213.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.97 213.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.91 213.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.52 213.10 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.13 213.10 Td ($0.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.03 213.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.46 213.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.36 213.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 201.10 Td (respectively from the sale of available-for) Tj ET Q q 0 0 0 rg BT 236.22 201.10 Td (-sale securities and realized no gross gains or losses. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.93 201.10 Td (three and six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 189.10 Td (months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.83 189.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.77 189.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.38 189.10 Td (, we received proceeds totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.99 189.10 Td ($13.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.88 189.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.32 189.10 Td ($28.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.21 189.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 486.88 189.10 Td (, from the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 177.10 Td (available-for) Tj ET Q q 0 0 0 rg BT 119.88 177.10 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 327.87 177.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.76 177.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.20 177.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.09 177.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 497.75 177.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.00 165.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 153.10 Td (6.DERIV) Tj ET Q q 0 0 0 rg BT 97.94 153.10 Td (A) Tj ET Q q 0 0 0 rg BT 104.42 153.10 Td (TIVE INSTRUMENTS ) Tj ET Q q 0 0 0 rg BT 206.67 153.10 Td (AND HEDGING ) Tj ET Q q 0 0 0 rg BT 281.12 153.10 Td (ACTIVITIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 129.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 129.10 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 67.50 117.10 Td (and sell our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 259.78 117.10 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 519.58 117.10 Td (, we do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 105.10 Td (generate revenues in other currencies, primarily the Euro, Japanese ) Tj ET Q q 0 0 0 rg BT 337.84 105.10 Td (Y) Tj ET Q q 0 0 0 rg BT 344.06 105.10 Td (en, South Korean ) Tj ET Q q 0 0 0 rg BT 416.09 105.10 Td (W) Tj ET Q q 0 0 0 rg BT 424.73 105.10 Td (on and Chinese Renminbi \(RMB\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 93.10 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 93.10 Td (W) Tj ET Q q 0 0 0 rg BT 550.78 93.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 81.10 Td (attempt to limit these exposures through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 350.03 81.10 Td (W) Tj ET Q q 0 0 0 rg BT 358.67 81.10 Td (e utilize derivative instruments, primarily forward ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 69.10 Td (contracts with maturities of four 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 57.10 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 45.10 Td (gains and losses on the underlying instruments. ) Tj ET Q q 0 0 0 rg BT 258.96 45.10 Td (W) Tj ET Q q 0 0 0 rg BT 267.60 45.10 Td (e do not use derivative financial instruments for speculative or trading ) 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 33.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 740.10 Td (purposes. ) Tj ET Q q 0 0 0 rg BT 107.87 740.10 Td (The credit risk amounts represent the Company) Tj ET Q q 0 0 0 rg BT 300.60 740.10 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 67.50 728.10 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 67.50 716.10 Td (based on then-current currency rates at each respective date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 704.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 692.10 Td (Non-Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 668.10 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 67.50 656.10 Td (maximum maturity of four months, are as follows \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 330.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 613.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 613.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 613.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 613.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 613.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 613.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 613.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 613.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 583.60 193.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 583.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 583.60 67.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 583.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 583.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 583.60 68.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 554.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 554.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 554.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 554.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 554.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 524.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 524.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 524.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 524.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 524.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 494.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 494.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 494.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 494.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 494.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 464.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 464.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 464.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 464.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 464.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 434.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 434.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 434.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 434.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 434.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 434.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 434.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 434.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 404.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 404.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 404.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 404.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 404.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 404.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 404.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 404.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 374.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 374.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 374.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 374.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 374.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 374.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 344.60 193.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 263.50 344.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 331.50 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 344.60 67.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 402.50 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 344.60 68.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 474.50 344.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 478.50 344.60 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 263.5 632.6 m 331.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 632.6 m 335.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 632.6 m 402.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 632.6 m 474.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 474.5 632.6 m 478.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 632.6 m 546.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 263.5 613.6 m 331.5 613.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 632.6 m 402.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 613.6 m 402.5 613.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 613.6 m 474.5 613.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 632.6 m 546.5 632.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 613.6 m 546.5 613.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 73.00 635.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.80 636.83 Td (U.S.NotionalContractValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.05 636.83 Td (U.S. FairValue) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 73.00 616.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.85 617.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.55 617.83 Td (October 1, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.85 617.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.05 617.83 Td (October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 604.17 Td (Euro currency hedge contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 328.00 601.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 399.00 601.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 471.00 601.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 543.00 601.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 589.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 588.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.15 588.28 Td (102,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 588.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 588.27 Td (91,108) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 588.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.65 588.28 Td (778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 588.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 588.27 Td (162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 574.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 574.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.65 574.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 574.22 Td (\(750,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 574.17 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 574.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.65 574.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 574.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 574.22 Td (\(2,234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 574.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 545.17 Td (Japanese Yen currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 530.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 529.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.65 529.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 529.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 529.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 529.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 460.65 529.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 529.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 529.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 515.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 514.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.80 514.33 Td (\(15,600) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 514.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 514.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.80 514.32 Td (\(36,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 514.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 514.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.30 514.33 Td (\(72) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 514.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 514.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.30 514.32 Td (\(343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 514.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 485.17 Td (South Korean Won currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 470.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 469.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.15 469.28 Td (15,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 469.27 Td (31,248) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 469.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.30 469.33 Td (\(380) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 469.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 469.27 Td (413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 455.17 Td ( Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 454.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 296.80 454.33 Td (\(36,018) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 454.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.80 454.32 Td (\(37,929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 454.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 454.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.30 454.33 Td (\(310) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 454.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.30 454.32 Td (\(152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 454.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 425.17 Td (Chinese RMB currency hedge contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 410.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 409.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.65 409.28 Td (518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 409.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 409.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 409.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.65 409.28 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 409.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 409.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 395.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 394.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.80 394.33 Td (\(9,211) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 394.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 394.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.80 394.32 Td (\(25,237) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 394.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 394.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.30 394.33 Td (\(12) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 394.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 394.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.30 394.32 Td (\(91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 394.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 365.17 Td (Other foreign currency hedge contracts) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 328.00 362.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 399.00 362.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 471.00 362.36 Td () Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 543.00 362.36 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 350.17 Td (Purchase) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 349.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.15 349.28 Td (5,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 349.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 349.27 Td (6,033) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 349.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 465.65 349.28 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 349.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.30 349.32 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 349.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 335.17 Td (Sell) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 266.00 334.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.80 334.33 Td (\(2,068) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 327.65 334.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.00 334.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.80 334.32 Td (\(1,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 334.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 334.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 457.30 334.33 Td (\(13) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 470.65 334.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 334.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 334.27 Td (38) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 306.10 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 67.50 294.10 Td (in our Condensed Consolidated Balance Sheets \(See Note 4\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 270.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 270.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.47 270.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.41 270.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.02 270.10 Td (, we recognized a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.38 270.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.27 270.10 Td ( and a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.19 270.10 Td ($9.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.08 270.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 258.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.16 258.10 Td (, in other income \(expense\) for derivative instruments not designated as hedging instruments. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.89 258.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 246.10 Td (and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 246.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.38 246.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.99 246.10 Td (, we recognized a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.34 246.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.23 246.10 Td ( and a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 246.10 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.39 246.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 517.06 246.10 Td (, in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 234.10 Td (income \(expense\) for derivative instruments not designated as hedging instruments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 210.10 Td (Designated Derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 186.10 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 67.50 174.10 Td (enter into contracts for specific future transactions. Cash flow hedges are evaluated for ef) Tj ET Q q 0 0 0 rg BT 424.39 174.10 Td (fectiveness quarterly) Tj ET Q q 0 0 0 rg BT 506.76 174.10 Td (. ) Tj ET Q q 0 0 0 rg BT 511.58 174.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 162.10 Td (ef) Tj ET Q q 0 0 0 rg BT 75.09 162.10 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 67.50 150.10 Td (reclassified into earnings when the underlying transaction af) Tj ET Q q 0 0 0 rg BT 308.63 150.10 Td (fects earnings. ) Tj ET Q q 0 0 0 rg BT 368.70 150.10 Td (W) Tj ET Q q 0 0 0 rg BT 377.34 150.10 Td (e had no cash flow hedges outstanding at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 138.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.11 138.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.44 138.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.15 138.10 Td (. Changes in the fair value of currency forward contracts due to changes in time value are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 126.10 Td (excluded from the assessment of ef) Tj ET Q q 0 0 0 rg BT 208.11 126.10 Td (fectiveness and recognized in other income \(expense\) as incurred. ) Tj ET Q q 0 0 0 rg BT 473.92 126.10 Td (W) Tj ET Q q 0 0 0 rg BT 482.56 126.10 Td (e classify the cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 114.10 Td (flows from the foreign exchange forward contracts that are accounted for as cash flow hedges in the same section as the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 102.10 Td (underlying item, primarily within cash flows from operating activities since we do not designate our cash flow hedges as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 90.10 Td (investing or financing activities. ) 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 33.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 728.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 728.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.47 728.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.41 728.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.02 728.10 Td (, we recorded losses in OCI and in other income \(expense\) related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.10 Td (the accounting for derivatives designated as cash flow hedges. ) Tj ET Q q 0 0 0 rg BT 318.90 716.10 Td (These losses were not material. During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.18 716.10 Td (three and six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 704.10 Td (months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.33 704.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.27 704.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.88 704.10 Td (, we did not have any activities related to designated cash flow hedges.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 680.10 Td (Master Netting ) Tj ET Q q 0 0 0 rg BT 130.09 680.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 656.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.91 656.10 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 67.50 644.10 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 516.62 644.10 Td (W) Tj ET Q q 0 0 0 rg BT 525.25 644.10 Td (e present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 632.10 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 67.50 620.10 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 67.50 608.10 Td (The impact of netting derivative assets and liabilities is not material to our financial position for any of the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 596.10 Td (presented. Our derivative contracts do not contain any credit risk related contingent features and do not require collateral or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 584.10 Td (other security to be furnished by us or the counterparties.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 548.10 Td (7. GOODWILL) Tj ET Q q 0 0 0 rg BT 124.74 548.10 Td ( ) Tj ET Q q 0 0 0 rg BT 126.68 548.10 Td (AND INT) Tj ET Q q 0 0 0 rg BT 167.89 548.10 Td (ANGIBLE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.01 548.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 216.51 548.10 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.76 548.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 524.10 Td (During the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.49 524.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.10 524.10 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 68.00 512.10 Td (review goodwill for potential impairment. ) Tj ET Q q 0 0 0 rg BT 238.33 512.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.97 512.10 Td (e will conduct our annual goodwill testing during the fourth fiscal quarter) Tj ET Q q 0 0 0 rg BT 540.51 512.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 500.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 488.10 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 390.13 488.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.84 488.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.07 488.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.68 488.10 Td ( are as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 476.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 436.60 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 436.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 436.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 436.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 436.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 436.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 406.60 280.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 348.50 406.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 406.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 417.50 406.60 65.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 482.50 406.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 406.60 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 348.5 436.6 m 413.5 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 436.6 m 482.5 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 436.6 m 551.5 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 436.6 m 413.5 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 436.6 m 482.5 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 436.6 m 551.5 436.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 391.6 m 413.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 391.6 m 482.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 391.6 m 551.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 391.6 m 413.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 377.6 m 413.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348.5 375.6 m 413.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 391.6 m 482.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 377.6 m 482.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 375.6 m 482.5 375.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 391.6 m 551.5 391.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 377.6 m 551.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 375.6 m 551.5 375.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 439.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.20 448.83 Td (OEM Laser) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.20 440.83 Td (Sources) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.05 448.83 Td (Industrial Lasers) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.35 440.83 Td (& Systems) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.75 440.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 426.27 Td (Balance as of October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 426.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 426.27 Td (97,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 426.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 426.27 Td (4,443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 426.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 426.27 Td (101,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 411.27 Td (Additions \(see Note 3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 411.27 Td (1,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 411.27 Td (264,188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 411.27 Td (265,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 396.27 Td (Translation adjustments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 396.32 Td (\(3,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 396.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 396.32 Td (\(3,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 396.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 396.32 Td (\(6,491) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 396.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 381.27 Td (Balance as of April 1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.00 381.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 381.27 Td (95,280) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 381.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 381.27 Td (265,296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 381.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 381.27 Td (360,576) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 365.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 353.10 Td (Components of our amortizable intangible assets are as follows \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 341.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 288.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 288.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 288.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 288.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 288.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 288.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 288.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 288.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 288.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 288.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 288.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 288.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 258.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 258.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 258.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 258.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 258.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 258.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 258.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 258.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 258.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 258.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 258.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 258.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 228.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 228.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 228.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 228.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 228.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 228.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 228.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 228.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 228.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 228.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 228.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 228.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 198.60 150.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 218.50 198.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 198.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 274.50 198.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 326.50 198.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 330.50 198.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.50 198.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.50 198.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 198.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 198.60 52.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.50 198.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 498.50 198.60 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 218.5 317.6 m 270.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 317.6 m 274.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 317.6 m 326.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326.5 317.6 m 330.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 317.6 m 382.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 317.6 m 438.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 317.6 m 442.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 317.6 m 494.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 317.6 m 498.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 317.6 m 550.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 288.6 m 270.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 317.6 m 326.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 288.6 m 326.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 288.6 m 382.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 288.6 m 438.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 317.6 m 494.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 288.6 m 494.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 317.6 m 550.5 317.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 288.6 m 550.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 288.6 m 270.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 288.6 m 326.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 288.6 m 382.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 288.6 m 438.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 288.6 m 494.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 288.6 m 550.5 288.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 198.60000000000002 m 270.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 198.60000000000002 m 326.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 198.60000000000002 m 382.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 198.60000000000002 m 438.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 198.60000000000002 m 494.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 198.60000000000002 m 550.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 198.60000000000002 m 270.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 184.60000000000002 m 270.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 218.5 182.60000000000002 m 270.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 198.60000000000002 m 326.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 184.60000000000002 m 326.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 182.60000000000002 m 326.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 198.60000000000002 m 382.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 184.60000000000002 m 382.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330.5 182.60000000000002 m 382.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 198.60000000000002 m 438.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 184.60000000000002 m 438.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 182.60000000000002 m 438.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 198.60000000000002 m 494.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 184.60000000000002 m 494.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 182.60000000000002 m 494.5 182.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 198.60000000000002 m 550.5 198.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 184.60000000000002 m 550.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 182.60000000000002 m 550.5 182.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 320.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.85 321.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.05 321.83 Td (October 1, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 291.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.05 308.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 243.68 308.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 228.20 300.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.95 292.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.30 300.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.10 292.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.00 292.83 Td (Net) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.05 308.83 Td (Gr) Tj ET Q q 0 0 0 rg BT 411.68 308.83 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.20 300.83 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.95 292.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.30 300.83 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 445.10 292.83 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 292.83 Td (Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 279.17 Td (Existing technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.00 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.10 278.27 Td (193,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 278.27 Td (\(38,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 278.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.10 278.27 Td (155,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 278.27 Td (70,664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 278.32 Td (\(61,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 278.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 278.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 278.27 Td (9,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 264.17 Td (Patents) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.65 263.27 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.30 263.27 Td (\(22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 263.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 263.27 Td (286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 263.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 263.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 263.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 249.17 Td (Customer relationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.15 248.27 Td (47,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.80 248.27 Td (\(8,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 248.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 248.27 Td (38,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 248.27 Td (15,968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 248.32 Td (\(11,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 248.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 248.27 Td (4,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 234.17 Td (Trade Name) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 233.27 Td (5,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.30 233.27 Td (\(826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 233.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 233.27 Td (4,856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 233.27 Td (384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 233.32 Td (\(351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 233.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 233.27 Td (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 219.17 Td (Order backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 218.27 Td (5,493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.80 218.27 Td (\(4,564) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 218.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.65 218.27 Td (929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 218.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 218.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 218.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 203.27 Td (In-process research& development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.15 203.27 Td (5,887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.65 203.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 203.27 Td (5,887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 203.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 203.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 203.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 188.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.00 188.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.10 188.27 Td (258,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 188.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.80 188.27 Td (\(52,314) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 188.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.00 188.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.10 188.27 Td (206,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.00 188.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 188.27 Td (87,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 188.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.80 188.32 Td (\(73,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 188.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.00 188.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 188.27 Td (13,874) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 160.10 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 68.00 136.10 Td (Amortization expense for intangible assets for the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.83 136.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.44 136.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.32 136.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.93 136.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.48 136.10 Td ($28.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.38 136.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 124.10 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.89 124.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 169.55 124.10 Td (. ) Tj ET Q q 0 0 0 rg BT 174.37 124.10 Td (The change in the accumulated amortization also includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.73 124.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.62 124.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.06 124.10 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.95 124.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 112.10 Td (foreign exchange impact for the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.16 112.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.77 112.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.66 112.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.27 112.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 448.93 112.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 88.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.95 88.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.56 88.10 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 88.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.02 88.10 Td (, the next five succeeding fiscal years and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 76.10 Td (all fiscal years thereafter are as follows \(in thousands\): ) 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 (17) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 719.50 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 719.50 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 689.50 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 689.50 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 659.50 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 659.50 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 629.50 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 468.50 629.50 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 468.5 719.5 m 550.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 719.5 m 550.5 719.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 614.5 m 550.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 614.5 m 550.5 614.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 600.5 m 550.5 600.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 598.5 m 550.5 598.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 722.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.65 739.73 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 486.10 731.73 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.75 723.73 Td (Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 709.17 Td (2017 \(remainder\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 709.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 709.17 Td (29,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 694.17 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 694.17 Td (52,957) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 679.17 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 679.17 Td (49,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 664.17 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 664.17 Td (43,158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 649.17 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 649.17 Td (12,943) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 634.17 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 634.17 Td (3,196) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 619.17 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 619.17 Td (15,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 604.17 Td (Total \(including IPR&D\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.00 604.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 604.17 Td (206,506) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 576.00 Td (8. BALANCE SHEET) Tj ET Q q 0 0 0 rg BT 154.57 576.00 Td ( DET) Tj ET Q q 0 0 0 rg BT 176.88 576.00 Td (AILS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 564.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 552.00 Td (Inventories consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 520.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 520.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 520.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 520.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 490.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 490.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 490.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 490.50 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 406.5 520.5 m 476.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 520.5 m 550.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 520.5 m 476.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 520.5 m 550.5 520.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 475.5 m 476.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 475.5 m 550.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 475.5 m 476.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 461.5 m 476.5 461.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 459.5 m 476.5 459.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 475.5 m 550.5 475.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 461.5 m 550.5 461.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 459.5 m 550.5 459.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 523.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 532.73 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 524.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 532.73 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 524.73 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 510.17 Td (Purchased parts and assemblies) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 510.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 510.18 Td (116,085) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 510.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 510.17 Td (56,824) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 495.17 Td (Work-in-process) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 495.18 Td (134,241) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 495.17 Td (88,391) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 480.17 Td (Finished goods) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 480.18 Td (137,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 480.17 Td (67,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 465.17 Td (Total inventories) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 465.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 465.18 Td (388,242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 465.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 465.17 Td (212,898) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 449.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 437.00 Td (Prepaid expenses and other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 405.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 405.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 405.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 405.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 375.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 375.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 375.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 375.50 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 406.5 405.5 m 476.5 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 405.5 m 550.5 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 405.5 m 476.5 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 405.5 m 550.5 405.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 360.5 m 476.5 360.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 360.5 m 550.5 360.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 360.5 m 476.5 360.5 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 406.5 344.5 m 476.5 344.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 360.5 m 550.5 360.5 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 480.5 344.5 m 550.5 344.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 408.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 417.73 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 409.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 417.73 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 409.73 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 395.17 Td (Prepaid and refundable income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 395.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 395.18 Td (34,633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 395.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 395.17 Td (12,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 380.17 Td (Other taxes receivable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 380.18 Td (12,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 380.17 Td (10,538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 365.17 Td (Prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 365.18 Td (26,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 365.17 Td (14,120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 350.17 Td (Total prepaid expenses and other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 350.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 350.18 Td (73,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 350.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 350.17 Td (37,073) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 334.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.00 Td (Other assets consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 290.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 290.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 290.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 290.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 260.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 260.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 260.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 260.50 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 406.5 290.5 m 476.5 290.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 290.5 m 550.5 290.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 290.5 m 476.5 290.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 290.5 m 550.5 290.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 245.5 m 476.5 245.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 245.5 m 550.5 245.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 245.5 m 476.5 245.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 231.5 m 476.5 231.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 229.5 m 476.5 229.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 245.5 m 550.5 245.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 231.5 m 550.5 231.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 229.5 m 550.5 229.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 293.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 302.73 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 294.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 302.73 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 294.73 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 280.17 Td (Assets related to deferred compensation arrangements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 280.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 280.18 Td (28,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 280.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 280.17 Td (26,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 265.17 Td (Deferred tax assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 265.18 Td (82,725) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 265.17 Td (67,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 250.17 Td (Other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 250.18 Td (14,233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 250.17 Td (9,221) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 235.17 Td (Total other assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 235.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 235.18 Td (125,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 235.17 Td (102,734) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 207.00 Td (Other current liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 175.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 175.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 175.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 175.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 145.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 145.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 145.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 145.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 115.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 115.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 115.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 115.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 85.50 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 85.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 85.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 85.50 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 406.5 175.5 m 476.5 175.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 175.5 m 550.5 175.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 175.5 m 476.5 175.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 175.5 m 550.5 175.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 85.5 m 476.5 85.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 85.5 m 550.5 85.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 85.5 m 476.5 85.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 71.5 m 476.5 71.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 69.5 m 476.5 69.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 85.5 m 550.5 85.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 71.5 m 550.5 71.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 69.5 m 550.5 69.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 178.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 187.73 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 179.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 187.73 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 179.73 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 165.17 Td (Accrued payroll and benefits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 165.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 165.18 Td (61,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 165.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 165.17 Td (47,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 150.17 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 150.18 Td (77,791) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 150.17 Td (33,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 135.17 Td (Warranty reserve) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 135.18 Td (30,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 135.17 Td (15,949) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 120.17 Td (Accrued expenses and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 120.18 Td (32,068) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 120.17 Td (18,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 105.17 Td (Current liabilities held for sale) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 105.18 Td (7,454) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 105.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 90.17 Td (Customer deposits) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 90.18 Td (21,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 90.17 Td (1,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 75.17 Td (Total other current liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 75.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 75.18 Td (231,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 75.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 75.17 Td (116,442) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 59.00 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 (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 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 295.99 742.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.22 742.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.71 742.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.71 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.14 742.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.14 742.10 Td ( were as follows \(in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 685.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 685.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 685.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 685.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 655.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 655.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 655.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 655.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 625.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 625.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 625.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 625.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 706.6 m 476.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 706.6 m 480.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 706.6 m 550.5 706.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 685.6 m 476.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 685.6 m 550.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 685.6 m 476.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 476.5 685.6 m 480.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 685.6 m 550.5 685.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 610.6 m 476.5 610.6 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 550.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 610.6 m 476.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 596.6 m 476.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 594.6 m 476.5 594.6 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 550.5 610.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 596.6 m 550.5 596.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 594.6 m 550.5 594.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 709.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 446.40 710.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 688.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 697.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 689.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.85 697.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 689.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 675.27 Td (Beginning balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 675.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 675.28 Td (15,949) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 675.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 675.27 Td (15,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 660.27 Td (Additions related to current period sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 660.28 Td (16,135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 660.27 Td (10,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 645.27 Td (Warranty costs incurred in the current period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 441.80 645.33 Td (\(15,105) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.65 645.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 645.32 Td (\(10,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 645.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 630.27 Td (Accruals resulting from acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 630.28 Td (14,314) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 630.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 615.27 Td (Adjustments to accruals related to foreign exchange and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 454.30 615.33 Td (\(507) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 472.65 615.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 615.32 Td (\(55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.65 615.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 600.27 Td (Ending balance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 600.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 600.28 Td (30,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 600.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 600.27 Td (14,972) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 584.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 572.10 Td (Other long-term liabilities consist of the following \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 540.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 540.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 540.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 540.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 510.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 510.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 510.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 510.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 480.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 480.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 480.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 480.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 450.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 406.50 450.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 476.50 450.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.50 450.60 70.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 540.6 m 476.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 540.6 m 550.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 540.6 m 476.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 540.6 m 550.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 435.6 m 476.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 435.6 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 406.5 435.6 m 476.5 435.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 421.6 m 476.5 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406.5 419.6 m 476.5 419.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 435.6 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 480.5 421.6 m 550.5 421.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 419.6 m 550.5 419.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 543.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.85 552.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 544.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.05 552.83 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 544.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 530.27 Td (Long-term taxes payable) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 530.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 530.28 Td (27,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 530.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 530.27 Td (2,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 515.27 Td (Deferred compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 515.28 Td (30,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 515.27 Td (28,313) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 500.27 Td (Deferred tax liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 500.28 Td (59,360) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 500.27 Td (1,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 485.27 Td (Deferred revenue) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 485.28 Td (3,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 485.27 Td (4,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 470.27 Td (Asset retirement obligations liability) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 470.28 Td (4,884) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 470.27 Td (2,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 455.27 Td (Defined benefit plan liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 455.28 Td (40,023) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 455.27 Td (8,123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 440.27 Td (Other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 440.28 Td (2,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 440.27 Td (1,106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 425.27 Td (Total other long-term liabilities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 409.00 425.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.15 425.28 Td (168,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 425.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 425.27 Td (48,826) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (9. BORROWINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 373.10 Td (On November 4, 2016, we repaid the outstanding balance, plus accrued interest, on our former domestic line of credit and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 361.10 Td (terminated the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.98 361.10 Td ($50.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.87 361.10 Td ( credit facility with Union Bank of California. ) Tj ET Q q 0 0 0 rg BT 368.03 361.10 Td (W) Tj ET Q q 0 0 0 rg BT 376.67 361.10 Td (e assumed two term loans having an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 349.10 Td (aggregated principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.73 349.10 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.62 349.10 Td ( as of November 7, 2016 and several lines of credit totaling approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 337.10 Td ($18.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 337.10 Td ( with the completion of the Rofin acquisition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 313.10 Td (On November 7, 2016, we entered into the Credit ) Tj ET Q q 0 0 0 rg BT 268.23 313.10 Td (Agreement by and among us, Coherent Holding GmbH, as borrower \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 301.10 Td (Borrower\), and certain of our direct and indirect subsidiaries from time to time party thereto, as guarantors, the lenders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 289.10 Td (from time to time party thereto, Barclays Bank PLC, as administrative agent and an L/C Issuer) Tj ET Q q 0 0 0 rg BT 446.12 289.10 Td (, Bank of ) Tj ET Q q 0 0 0 rg BT 485.00 289.10 Td (America, N.A., as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 277.10 Td (an L/C Issuer) Tj ET Q q 0 0 0 rg BT 121.48 277.10 Td (, and MUFG Union Bank, N.A., as an L/C Issuer) Tj ET Q q 0 0 0 rg BT 317.02 277.10 Td (. ) Tj ET Q q 0 0 0 rg BT 321.84 277.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 366.83 277.10 Td (Agreement provides for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.79 277.10 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.68 277.10 Td ( Euro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 265.10 Td (senior secured term loan facility \(the "Euro ) Tj ET Q q 0 0 0 rg BT 243.22 265.10 Td (T) Tj ET Q q 0 0 0 rg BT 248.63 265.10 Td (erm Loan"\) and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.02 265.10 Td ($100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.91 265.10 Td ( senior secured revolving credit facility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 253.10 Td (\("Revolving Credit Facility"\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.75 253.10 Td ($30.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.64 253.10 Td ( letter of credit sublimit and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.44 253.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.33 253.10 Td ( swing line sublimit. ) Tj ET Q q 0 0 0 rg BT 527.32 253.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 241.10 Td (Borrower may increase the aggregate revolving commitments or borrow incremental term loans in an aggregate principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 229.10 Td (amount not to exceed the sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.02 229.10 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.91 229.10 Td ( and an amount that would not cause the senior secured net leverage ratio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 217.10 Td (to be greater than 2.75 to 1.00, subject to certain conditions, including obtaining additional commitments from the lenders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 205.10 Td (then party to the Credit ) Tj ET Q q 0 0 0 rg BT 162.70 205.10 Td (Agreement or new lenders. On November 7, 2016, the Borrower borrowed the full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.38 205.10 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.27 205.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 193.10 Td (Euros under the Euro ) Tj ET Q q 0 0 0 rg BT 155.57 193.10 Td (T) Tj ET Q q 0 0 0 rg BT 160.98 193.10 Td (erm Loan and its proceeds were used to finance the acquisition of Rofin and pay related fees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 181.10 Td (expenses. On November 7, 2016, we also used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.13 181.10 Td (10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.02 181.10 Td ( Euro of the capacity under the Revolving Credit Facility for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 169.10 Td (the issuance of a letter of credit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 145.10 Td (The terms of the Credit ) Tj ET Q q 0 0 0 rg BT 163.25 145.10 Td (Agreement require Borrower to prepay the term loans in certain circumstances, including from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 133.10 Td (excess cash flow beyond a threshold amount, from the receipt of proceeds from certain dispositions or from the incurrence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 121.10 Td (of certain indebtedness, and from extraordinary receipts resulting in net cash proceeds in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.52 121.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.42 121.10 Td ( in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 109.10 Td (fiscal year) Tj ET Q q 0 0 0 rg BT 108.81 109.10 Td (. ) Tj ET Q q 0 0 0 rg BT 113.63 109.10 Td (The Borrower has the right to prepay loans under the Credit ) Tj ET Q q 0 0 0 rg BT 354.95 109.10 Td (Agreement in whole or in part at any time without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 97.10 Td (premium or penalty) Tj ET Q q 0 0 0 rg BT 146.22 97.10 Td (, subject to customary breakage costs. Revolving loans may be borrowed, repaid and reborrowed until ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 85.10 Td (the fifth anniversary of the Closing Date, at which time all outstanding revolving loans must be repaid. ) Tj ET Q q 0 0 0 rg BT 481.33 85.10 Td (The Euro ) Tj ET Q q 0 0 0 rg BT 521.14 85.10 Td (T) Tj ET Q q 0 0 0 rg BT 526.55 85.10 Td (erm ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 73.10 Td (Loan matures on the seventh anniversary of the Closing Date, at which time all outstanding principal and accrued and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 61.10 Td (unpaid interest on the Euro ) Tj ET Q q 0 0 0 rg BT 178.63 61.10 Td (T) Tj ET Q q 0 0 0 rg BT 184.04 61.10 Td (erm Loan must be repaid. ) 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 (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (On March 31, 2017, we made a voluntary principal payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.21 742.10 Td (30.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.71 742.10 Td ( million Euros on the Euro ) Tj ET Q q 0 0 0 rg BT 449.40 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 454.81 742.10 Td (erm Loan. ) Tj ET Q q 0 0 0 rg BT 500.35 742.10 Td (As of ) Tj ET Q q 0 0 0 rg BT 524.25 742.10 Td (April 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (2017, the outstanding principal amount of the Euro ) Tj ET Q q 0 0 0 rg BT 274.72 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 280.13 730.10 Td (erm Loan was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.28 730.10 Td (636.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.78 730.10 Td ( million Euros. ) Tj ET Q q 0 0 0 rg BT 423.45 730.10 Td (As of ) Tj ET Q q 0 0 0 rg BT 447.34 730.10 Td (April 1, 2017, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (outstanding principal amount of the Revolving Credit Facility was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.01 718.10 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.51 718.10 Td ( million Euro. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (Loans under the Credit ) Tj ET Q q 0 0 0 rg BT 161.87 694.10 Td (Agreement bear interest, at the Borrower) Tj ET Q q 0 0 0 rg BT 326.06 694.10 Td () Tj ET Q q 0 0 0 rg BT 328.83 694.10 Td (s option, at a rate equal to either \(i\)\(x\) in the case of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (calculations with respect to U.S. Dollars or certain other alternative currencies, the London interbank of) Tj ET Q q 0 0 0 rg BT 482.95 682.10 Td (fered rate \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (LIBOR\) or \(y\) in the case of calculations with respect to the Euro, the euro interbank of) Tj ET Q q 0 0 0 rg BT 427.41 670.10 Td (fered rate \("EURIBOR" and, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (together with LIBOR, the "Eurocurrency Rate"\) or \(ii\) a base rate \(the Base Rate\) equal to the highest of \(x\) the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (funds rate, plus 0.50%, \(y\) the prime rate then in ef) Tj ET Q q 0 0 0 rg BT 272.48 646.10 Td (fect and \(z\) the Eurocurrency Rate for loans denominated in U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (dollars applicable to a one-month interest period, plus 1.0%, in each case, plus an applicable mar) Tj ET Q q 0 0 0 rg BT 455.19 634.10 Td (gin. ) Tj ET Q q 0 0 0 rg BT 472.79 634.10 Td (The applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (mar) Tj ET Q q 0 0 0 rg BT 83.37 622.10 Td (gin for Euro ) Tj ET Q q 0 0 0 rg BT 134.56 622.10 Td (T) Tj ET Q q 0 0 0 rg BT 139.97 622.10 Td (erm Loan borrowed as Eurocurrency Rate loans, is 3.50% initially) Tj ET Q q 0 0 0 rg BT 404.52 622.10 Td (, and following the first anniversary of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.10 Td (the Closing Date ranges from 3.50% to 3.00% depending on the consolidated total gross leverage ratio at the time of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.10 Td (determination. For Euro ) Tj ET Q q 0 0 0 rg BT 166.69 598.10 Td (T) Tj ET Q q 0 0 0 rg BT 172.10 598.10 Td (erm Loan borrowed as Base Rate Loans, the applicable mar) Tj ET Q q 0 0 0 rg BT 410.71 598.10 Td (gin initially is 2.50%, and following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.10 Td (the first anniversary of the Closing Date ranges from 2.50% to 2.00% depending upon the consolidated total gross leverage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.10 Td (ratio at the time of determination. ) Tj ET Q q 0 0 0 rg BT 204.72 574.10 Td (The applicable mar) Tj ET Q q 0 0 0 rg BT 281.72 574.10 Td (gin for revolving loans borrowed as Eurocurrency Rate Loans, ranges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 562.10 Td (from 4.25% to 3.75%, and for revolving loans borrowed as Base Rate Loans, ranges from 3.25% to 2.75%, in each case, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 550.10 Td (based on the consolidated total gross leverage ratio at the time of determination. Interest on Base Rate Loans is payable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 538.10 Td (quarterly in arrears. Interest on Eurocurrency Rate Loans is payable at the end of the applicable interest period \(or at three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 526.10 Td (month intervals if the interest period exceeds three months\). Interest periods for Eurocurrency Rate loans may be, at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td (Borrower) Tj ET Q q 0 0 0 rg BT 106.69 514.10 Td () Tj ET Q q 0 0 0 rg BT 109.47 514.10 Td (s option, one, two, three or six months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (Refer Note 19 "Subsequent Events" for discussion of ) Tj ET Q q 0 0 0 rg BT 282.24 490.10 Td (Amendment No. 1 and ) Tj ET Q q 0 0 0 rg BT 375.66 490.10 Td (W) Tj ET Q q 0 0 0 rg BT 384.29 490.10 Td (aiver to the Credit ) Tj ET Q q 0 0 0 rg BT 458.72 490.10 Td (Agreement entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (on May 8, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 112.99 454.10 Td (Agreement requires the Borrower to make scheduled quarterly payments on the Euro ) Tj ET Q q 0 0 0 rg BT 455.47 454.10 Td (T) Tj ET Q q 0 0 0 rg BT 460.88 454.10 Td (erm Loan of 0.25% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (the original principal amount of the Euro ) Tj ET Q q 0 0 0 rg BT 234.16 442.10 Td (T) Tj ET Q q 0 0 0 rg BT 239.57 442.10 Td (erm Loan, with any remaining principal payable at maturity) Tj ET Q q 0 0 0 rg BT 478.01 442.10 Td (. ) Tj ET Q q 0 0 0 rg BT 482.46 442.10 Td (A) Tj ET Q q 0 0 0 rg BT 489.13 442.10 Td ( commitment fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (accrues on any unused portion of the revolving loan commitments under the Credit ) Tj ET Q q 0 0 0 rg BT 402.09 430.10 Td (Agreement at a rate of 0.375% or 0.5% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (depending on the consolidated total gross leverage ratio at any time of determination. ) Tj ET Q q 0 0 0 rg BT 411.60 418.10 Td (The Borrower is also obligated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 406.10 Td (pay other customary fees for a credit facility of this size and type. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 382.10 Td (On the Closing Date, we and certain of our direct and indirect subsidiaries, as guarantors, provided an unconditional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (guaranty of all obligations of the Borrower and the other loan parties arising under the Credit ) Tj ET Q q 0 0 0 rg BT 442.34 370.10 Td (Agreement, the other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (documents and under swap contracts and treasury management agreements with the lenders or their af) Tj ET Q q 0 0 0 rg BT 476.56 358.10 Td (filiates \(with certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 346.10 Td (limited exceptions\). ) Tj ET Q q 0 0 0 rg BT 149.74 346.10 Td (The Borrower and the guarantors have also granted security interests in substantially all of their assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td (to secure such obligations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 112.99 310.10 Td (Agreement contains customary af) Tj ET Q q 0 0 0 rg BT 247.48 310.10 Td (firmative covenants, including covenants regarding the payment of taxes and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.10 Td (other obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 286.10 Td (and negative covenants, including covenants limiting the ability of us and our subsidiaries to, among other things, incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 Td (debt, grant liens, make investments, make certain restricted payments, transact with af) Tj ET Q q 0 0 0 rg BT 412.42 274.10 Td (filiates, and sell assets. ) Tj ET Q q 0 0 0 rg BT 506.11 274.10 Td (The Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.10 Td (Agreement also requires us and our subsidiaries to maintain a senior secured net leverage ratio as of the last day of each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (fiscal quarter of less of than or equal to 3.50 to 1.00. ) Tj ET Q q 0 0 0 rg BT 279.71 250.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 324.70 250.10 Td (Agreement contains customary events of default that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (include, among other things, payment defaults, cross defaults with certain other indebtedness, violation of covenants, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (inaccuracy of representations and warranties in any material respect, change in control of us and the Borrower) Tj ET Q q 0 0 0 rg BT 508.25 226.10 Td (, judgment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 214.10 Td (defaults, and bankruptcy and insolvency events. If an event of default exists, the lenders may require the immediate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 202.10 Td (payment of all Obligations, as defined in the Credit ) Tj ET Q q 0 0 0 rg BT 275.18 202.10 Td (Agreement, and may exercise certain other rights and remedies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (provided for under the Credit ) Tj ET Q q 0 0 0 rg BT 187.14 190.10 Td (Agreement, the other loan documents and applicable law) Tj ET Q q 0 0 0 rg BT 414.18 190.10 Td (. ) Tj ET Q q 0 0 0 rg BT 419.00 190.10 Td (The acceleration of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 178.10 Td (obligations is automatic upon the occurrence of a bankruptcy and insolvency event of default. ) Tj ET Q q 0 0 0 rg BT 445.20 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 453.83 178.10 Td (e were in compliance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 166.10 Td (all covenants at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.15 166.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.75 166.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 142.10 Td (e incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.39 142.10 Td ($28.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.28 142.10 Td ( of debt issuance costs related to the Euro ) Tj ET Q q 0 0 0 rg BT 341.66 142.10 Td (T) Tj ET Q q 0 0 0 rg BT 347.07 142.10 Td (erm Loan, which are included in short-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 130.10 Td (borrowings and current portion of long-term obligations and long-term obligations in the condensed consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 118.10 Td (sheets and will be amortized to interest expense over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.26 118.10 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.03 118.10 Td ( year life of the Euro ) Tj ET Q q 0 0 0 rg BT 404.36 118.10 Td (T) Tj ET Q q 0 0 0 rg BT 409.77 118.10 Td (erm Loan using the ef) Tj ET Q q 0 0 0 rg BT 497.34 118.10 Td (fective interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 106.10 Td (method. ) Tj ET Q q 0 0 0 rg BT 102.81 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.45 106.10 Td (e incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.21 106.10 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.10 106.10 Td ( of debt issuance costs in connection with the Revolving Credit Facility which were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 94.10 Td (capitalized and included in prepaid expenses and other assets and other assets in the condensed consolidated balance sheets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.10 Td (and will be amortized to interest expense using the straight-line method over the contractual term of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.09 82.10 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.64 82.10 Td ( years of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 70.10 Td (Revolving Credit Facility) Tj ET Q q 0 0 0 rg BT 169.56 70.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 46.10 Td (For the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.48 46.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.08 46.10 Td (, we recognized interest expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.08 46.10 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.97 46.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.91 46.10 Td ($12.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 46.10 Td (, ) Tj ET Q endstream endobj 43 0 obj <>] /Rotate 0 /Contents 44 0 R>> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 742.10 Td (, in relation to the Euro ) Tj ET Q q 0 0 0 rg BT 213.23 742.10 Td (T) Tj ET Q q 0 0 0 rg BT 218.64 742.10 Td (erm Loan and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.68 742.10 Td ($1.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.57 742.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.01 742.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.90 742.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 446.56 742.10 Td (, amortization of debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (issuance costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td (Additional sources of cash available to us were international currency lines of credit and bank credit facilities totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td ($30.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.89 694.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 694.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.11 694.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.88 694.10 Td ($24.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.77 694.10 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 405.00 694.10 Td (These unsecured international credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (facilities were used in Europe and Japan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.88 682.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.10 682.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.59 682.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.59 682.10 Td (. ) Tj ET Q q 0 0 0 rg BT 399.04 682.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.93 682.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.54 682.10 Td (, we had utilized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.89 670.10 Td ( of the international credit facilities as guarantees in Europe.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (Short-term ) Tj ET Q q 0 0 0 rg BT 113.83 646.10 Td (borrowings ) Tj ET Q q 0 0 0 rg BT 161.88 646.10 Td (and ) Tj ET Q q 0 0 0 rg BT 178.82 646.10 Td (current ) Tj ET Q q 0 0 0 rg BT 209.63 646.10 Td (portion ) Tj ET Q q 0 0 0 rg BT 241.02 646.10 Td (of ) Tj ET Q q 0 0 0 rg BT 251.85 646.10 Td (long-term ) Tj ET Q q 0 0 0 rg BT 293.78 646.10 Td (obligations ) Tj ET Q q 0 0 0 rg BT 340.72 646.10 Td (consist ) Tj ET Q q 0 0 0 rg BT 371.00 646.10 Td (of ) Tj ET Q q 0 0 0 rg BT 381.83 646.10 Td (the ) Tj ET Q q 0 0 0 rg BT 396.55 646.10 Td (following ) Tj ET Q q 0 0 0 rg BT 437.94 646.10 Td (\(in ) Tj ET Q q 0 0 0 rg BT 451.54 646.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 614.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 614.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 614.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 614.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 584.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 584.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 584.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 584.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 554.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 554.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 554.60 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 411.5 614.6 m 481.5 614.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 614.6 m 555.5 614.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 554.6 m 481.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 540.6 m 481.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 538.6 m 481.5 538.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 554.6 m 555.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 540.6 m 555.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 538.6 m 555.5 538.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 76.00 617.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.85 626.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.00 618.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.05 626.83 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 618.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 604.27 Td (Current portion of Euro Term Loan \(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 604.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.15 604.28 Td (3,457) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 604.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 604.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 589.27 Td (1.3% Term loan due 2024) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.15 589.28 Td (1,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 589.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 574.27 Td (1.0% State of Connecticut term loan due 2023) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 462.65 574.28 Td (369) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 574.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 559.27 Td (Line of credit borrowings) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.65 559.28 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 559.27 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 544.27 Td (Total short-term borrowings and current portion of long-term obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 544.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.15 544.28 Td (5,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 544.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 544.27 Td (20,000) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 528.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 82.16 528.10 Td (Net ) Tj ET Q q 0 0 0 rg BT 99.10 528.10 Td (of ) Tj ET Q q 0 0 0 rg BT 109.93 528.10 Td (debt ) Tj ET Q q 0 0 0 rg BT 129.65 528.10 Td (issuance ) Tj ET Q q 0 0 0 rg BT 166.02 528.10 Td (costs ) Tj ET Q q 0 0 0 rg BT 188.52 528.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.35 528.10 Td ($3.7 ) Tj ET Q q 0 0 0 rg BT 219.35 528.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.24 528.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 504.10 Td (Long-term ) Tj ET Q q 0 0 0 rg BT 113.26 504.10 Td (obligations ) Tj ET Q q 0 0 0 rg BT 160.21 504.10 Td (consist ) Tj ET Q q 0 0 0 rg BT 190.49 504.10 Td (of ) Tj ET Q q 0 0 0 rg BT 201.32 504.10 Td (the ) Tj ET Q q 0 0 0 rg BT 216.03 504.10 Td (following ) Tj ET Q q 0 0 0 rg BT 257.42 504.10 Td (\(in ) Tj ET Q q 0 0 0 rg BT 271.03 504.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 472.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 472.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 472.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 472.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 442.60 338.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 411.50 442.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 481.50 442.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 485.50 442.60 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 411.5 472.6 m 481.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 472.6 m 555.5 472.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 427.6 m 481.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 427.6 m 481.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 413.6 m 481.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411.5 411.6 m 481.5 411.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 427.6 m 555.5 427.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 413.6 m 555.5 413.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 411.6 m 555.5 411.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 76.00 475.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.85 484.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.00 476.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.05 484.83 Td (October 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.00 476.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 462.27 Td (Euro Term Loan due 2024 \(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 462.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 462.28 Td (649,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 462.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 462.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 447.27 Td (1.3% Term loan due 2024) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.15 447.28 Td (8,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 447.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 432.27 Td (1.0% State of Connecticut term loan due 2023) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 455.15 432.28 Td (1,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 432.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 417.27 Td (Total long-term obligations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.00 417.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 445.15 417.28 Td (660,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 417.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 417.27 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 401.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 82.16 401.10 Td (Net ) Tj ET Q q 0 0 0 rg BT 99.10 401.10 Td (of ) Tj ET Q q 0 0 0 rg BT 109.93 401.10 Td (debt ) Tj ET Q q 0 0 0 rg BT 129.65 401.10 Td (issuance ) Tj ET Q q 0 0 0 rg BT 166.02 401.10 Td (costs ) Tj ET Q q 0 0 0 rg BT 188.52 401.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.35 401.10 Td ($23.4 ) Tj ET Q q 0 0 0 rg BT 224.35 401.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.24 401.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 377.10 Td (Contractual maturities of our debt obligations as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.07 377.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.68 377.10 Td ( are as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 351.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 351.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 321.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 321.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 291.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 291.60 82.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 73.50 261.60 400.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 473.50 261.60 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 473.5 351.6 m 555.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 351.6 m 555.5 351.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 246.60000000000002 m 555.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 246.60000000000002 m 555.5 246.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 232.60000000000002 m 555.5 232.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473.5 230.60000000000002 m 555.5 230.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 76.00 354.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 499.95 355.83 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 341.27 Td (2017 \(remainder\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.00 341.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 341.27 Td (4,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 326.27 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 326.27 Td (8,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 311.27 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 311.27 Td (8,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 296.27 Td (2020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 296.27 Td (8,870) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 281.27 Td (2021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 281.27 Td (8,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 266.27 Td (2022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 266.27 Td (8,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 251.27 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 251.27 Td (643,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 236.27 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.00 236.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 236.27 Td (692,354) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 208.10 Td (10.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 208.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 208.10 Td (ST) Tj ET Q q 0 0 0 rg BT 79.05 208.10 Td (OCK-BASED COMPENSA) Tj ET Q q 0 0 0 rg BT 197.48 208.10 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 184.10 Td (Fair) Tj ET Q q 0 0 0 rg BT 85.64 184.10 Td ( ) Tj ET Q q 0 0 0 rg BT 87.96 184.10 Td (V) Tj ET Q q 0 0 0 rg BT 94.27 184.10 Td (alue of Stock Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 172.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 160.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 160.10 Td (e recognize compensation expense for all share based payment awards based on the fair value of such awards. ) Tj ET Q q 0 0 0 rg BT 518.28 160.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 148.10 Td (expense is recognized on a straight-line basis over the respective requisite service period of the awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 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 33.60 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 740.25 Td (Determining Fair) Tj ET Q q 0 0 0 rg BT 142.02 740.25 Td ( ) Tj ET Q q 0 0 0 rg BT 144.34 740.25 Td (V) Tj ET Q q 0 0 0 rg BT 150.64 740.25 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 728.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.25 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 448.22 716.25 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.64 716.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 704.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.11 704.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.00 704.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.60 704.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 246.26 704.25 Td (,were estimated using the following weighted-average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 644.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 644.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 644.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 644.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.00 644.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 644.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 644.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 644.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 644.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 614.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 614.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 614.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 614.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.00 614.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 614.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 614.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 614.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 614.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 584.75 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 584.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.00 584.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 584.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 336.00 584.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 584.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.00 584.75 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 584.75 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 464.00 584.75 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 678.75 m 332 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 678.75 m 336 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 678.75 m 396 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 678.75 m 400 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 678.75 m 460 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 678.75 m 464 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 678.75 m 524 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 665.75 m 332 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 665.75 m 336 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 665.75 m 396 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 665.75 m 460 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 678.75 m 464 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 665.75 m 464 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 678.75 m 524 678.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 665.75 m 524 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 665.75 m 332 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 644.75 m 332 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 665.75 m 336 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 665.75 m 396 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 644.75 m 396 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 665.75 m 460 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 644.75 m 460 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 665.75 m 464 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 665.75 m 524 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 644.75 m 524 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 644.75 m 332 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 644.75 m 396 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 644.75 m 460 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 644.75 m 464 644.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 644.75 m 524 644.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 344.55 682.98 Td (EmployeeStockPurchasePlan) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 297.10 669.98 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.90 669.98 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 288.35 656.98 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.50 648.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.35 656.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 357.50 648.98 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.35 656.98 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.50 648.98 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.35 656.98 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.50 648.98 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 634.42 Td (Expected life in years) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 316.00 634.43 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.00 634.42 Td (0.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.00 634.43 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.00 634.42 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 619.42 Td (Expected volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 619.43 Td (25.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.50 619.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 619.42 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 619.42 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 619.43 Td (28.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.50 619.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 619.42 Td (27.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 619.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 604.42 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.00 604.43 Td (0.50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.50 604.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 604.42 Td (0.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 604.42 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.00 604.43 Td (0.48) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.50 604.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 604.42 Td (0.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 604.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 589.42 Td (Expected dividend yield) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 311.50 589.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 321.50 589.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 589.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 589.42 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 439.50 589.43 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 449.50 589.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 589.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 589.42 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 574.42 Td (Weighted average fair value per share) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.50 574.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.00 574.43 Td (22.64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.50 574.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.65 574.42 Td (12.50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.50 574.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.00 574.43 Td (23.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.50 574.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 574.42 Td (12.89) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 546.25 Td (There were no stock options granted during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.11 546.25 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.53 546.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.48 546.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.09 546.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.97 546.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.58 546.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 522.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 522.25 Td (e grant performance restricted stock units to of) Tj ET Q q 0 0 0 rg BT 262.83 522.25 Td (ficers and certain employees. ) Tj ET Q q 0 0 0 rg BT 384.26 522.25 Td (The performance restricted stock unit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 510.25 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 542.31 510.25 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.75 510.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 498.25 Td (share of our common stock to be issued after the applicable award vesting period. ) Tj ET Q q 0 0 0 rg BT 396.38 498.25 Td (The final number of units awarded, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 486.25 Td (any) Tj ET Q q 0 0 0 rg BT 81.29 486.25 Td (, for these performance grants will be determined as of the vesting dates, based upon our total shareholder return over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 474.25 Td (the performance period compared to the Russell 2000 Index and could range from no units to a maximum of twice the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 462.25 Td (initial award units. ) Tj ET Q q 0 0 0 rg BT 144.53 462.25 Td (The weighted average fair value for these performance units was determined using a Monte Carlo ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 450.25 Td (simulation model incorporating the following weighted average assumptions:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 409.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 409.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 409.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 409.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 409.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 381.75 250.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 381.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 322.00 381.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 382.00 381.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 386.00 381.75 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 424.75 m 322 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 424.75 m 382 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 424.75 m 446 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 424.75 m 322 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 409.75 m 322 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 424.75 m 382 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 409.75 m 382 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 424.75 m 446 424.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 409.75 m 446 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 409.75 m 322 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 409.75 m 382 409.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 409.75 m 446 409.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.90 428.98 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.35 413.98 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.35 413.98 Td (April 2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 400.32 Td (Risk-free interest rate) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 359.00 400.43 Td (1.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.50 400.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 400.32 Td (1.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 400.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 386.32 Td (Volatility) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.00 386.43 Td (31.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 371.50 386.43 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 386.32 Td (27.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 386.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 372.32 Td (Weighted average fair value) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 346.00 372.43 Td ($163.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.00 372.32 Td ($74.48) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 344.25 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 344.25 Td (e recognize the estimated cost of these awards, as determined under the simulation model, over the related service period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 332.25 Td (of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.59 332.25 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.59 332.25 Td ( years, with no adjustment in future periods based upon the actual shareholder return over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 320.25 Td (performance period.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 308.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 296.25 Td (Stock Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 284.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 272.25 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 67.50 260.25 Td (consolidated statements of operations for the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.48 260.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.09 260.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.98 260.25 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.59 260.25 Td ( \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 218.75 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 218.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 218.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 218.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 218.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 218.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 218.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 218.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 190.75 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 190.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 190.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 190.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 190.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 190.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 190.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 190.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 162.75 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 162.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 162.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 162.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 162.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 162.75 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 162.75 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 162.75 60.00 -14.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 249.75 m 328 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 237.75 m 328 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 249.75 m 332 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 237.75 m 332 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 249.75 m 392 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 237.75 m 392 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 249.75 m 396 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 249.75 m 456 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 237.75 m 456 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 249.75 m 460 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 237.75 m 460 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 249.75 m 520 249.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 237.75 m 520 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 237.75 m 328 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 218.75 m 328 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 237.75 m 332 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 237.75 m 392 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 218.75 m 392 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 237.75 m 456 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 218.75 m 456 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 237.75 m 460 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 218.75 m 460 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 237.75 m 520 237.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 218.75 m 520 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 218.75 m 328 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 218.75 m 392 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 218.75 m 396 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 218.75 m 456 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 218.75 m 460 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 218.75 m 520 218.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 162.75 m 328 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 162.75 m 392 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 162.75 m 396 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 162.75 m 456 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 162.75 m 460 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 162.75 m 520 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 162.75 m 328 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 149.75 m 328 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 147.75 m 328 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 162.75 m 392 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 149.75 m 392 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 147.75 m 392 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 162.75 m 396 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 149.75 m 396 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 147.75 m 396 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 162.75 m 456 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 149.75 m 456 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 147.75 m 456 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 162.75 m 460 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 149.75 m 460 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 147.75 m 460 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 162.75 m 520 162.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 149.75 m 520 149.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 147.75 m 520 147.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.10 241.83 Td (Thr) Tj ET Q q 0 0 0 rg BT 306.29 241.83 Td (ee Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.90 241.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.35 229.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.50 221.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.35 229.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 353.50 221.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.35 229.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.50 221.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.35 229.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.50 221.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 209.32 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 209.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 209.43 Td (778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 209.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 209.32 Td (594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 209.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 209.32 Td (1,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 209.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 209.32 Td (1,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 195.32 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 195.43 Td (597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 195.32 Td (610) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 195.32 Td (1,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 195.32 Td (1,036) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 181.32 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.65 181.43 Td (5,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 181.32 Td (4,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 181.32 Td (12,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 181.32 Td (6,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 167.32 Td (Income tax benefit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.30 167.48 Td (\(1,815) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.15 167.43 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 167.37 Td (\(1,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 167.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.30 167.37 Td (\(3,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 167.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.30 167.37 Td (\(1,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.15 167.32 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 270.50 153.43 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 301.65 153.43 Td (4,868) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 153.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 153.32 Td (3,876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.50 153.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 153.32 Td (13,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 153.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 153.32 Td (7,270) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 125.25 Td (As a result of our acquisition of Rofin on November 7, 2016, we made a payment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.14 125.25 Td ($15.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.04 125.25 Td ( due to the cancellation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 113.25 Td (of options held by employees of Rofin. ) Tj ET Q q 0 0 0 rg BT 226.19 113.25 Td (The payment was allocated between total estimated mer) Tj ET Q q 0 0 0 rg BT 450.08 113.25 Td (ger consideration of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.55 113.25 Td ($1) Tj ET Q q 0 0 0 rg BT 542.18 113.25 Td (1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 101.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.39 101.25 Td ( and post-mer) Tj ET Q q 0 0 0 rg BT 151.20 101.25 Td (ger stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.75 101.25 Td ($4.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.64 101.25 Td (, recorded in the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.06 101.25 Td (April1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 89.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.50 89.25 Td (, based on the portion of the total service period of the underlying options that have not been completed by the mer) Tj ET Q q 0 0 0 rg BT 546.64 89.25 Td (ger ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 77.25 Td (date. ) 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 33.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 740.10 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.05 740.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.47 740.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.41 740.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.02 740.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.02 740.10 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.91 740.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.35 740.10 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.24 740.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 452.91 740.10 Td (, was capitalized into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 728.10 Td (inventory for all stock plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.70 728.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.59 728.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.03 728.10 Td ($1.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.92 728.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 354.58 728.10 Td (, was amortized to cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.71 728.10 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.60 728.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 716.10 Td (remained in inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.47 716.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.08 716.10 Td (.During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.63 716.10 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.04 716.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.99 716.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.60 716.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.60 716.10 Td ($0.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.49 716.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.93 716.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.82 716.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 704.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.16 704.10 Td (, was capitalized into inventory for all stock plans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.27 704.10 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.16 704.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.60 704.10 Td ($1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.49 704.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 489.16 704.10 Td (, was amortized to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 692.10 Td (cost of sales and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.82 692.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.71 692.10 Td ( remained in inventory at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.18 692.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.79 692.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 680.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 668.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.45 668.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.06 668.10 Td (, the total compensation cost related to unvested stock-based awards granted to employees under our stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 656.10 Td (plans but not yet recognized was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.05 656.10 Td ($43.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.95 656.10 Td (, net of estimated forfeitures of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.29 656.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.18 656.10 Td (. ) Tj ET Q q 0 0 0 rg BT 495.00 656.10 Td (This cost will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 644.10 Td (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 402.65 644.10 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.15 644.10 Td ( years and will be adjusted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 632.10 Td (subsequent changes in estimated forfeitures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 608.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.45 608.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.06 608.10 Td (, total compensation cost related to options to purchase common shares under the ESPP) Tj ET Q q 0 0 0 rg BT 482.62 608.10 Td ( but not yet vested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 596.10 Td (was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.81 596.10 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.70 596.10 Td (, which will be recognized over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.98 596.10 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.65 596.10 Td ( month of) Tj ET Q q 0 0 0 rg BT 388.36 596.10 Td (fering period.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 572.10 Td (Stock ) Tj ET Q q 0 0 0 rg BT 93.34 572.10 Td (A) Tj ET Q q 0 0 0 rg BT 99.82 572.10 Td (wards ) Tj ET Q q 0 0 0 rg BT 127.88 572.10 Td (Activity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 548.10 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 503.47 548.10 Td (first six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 536.10 Td (months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.95 536.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.43 536.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.43 536.10 Td ( \(in thousands, except per share amounts\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 466.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 466.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 466.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 466.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 466.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 466.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 466.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 466.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 436.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 436.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 436.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 436.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 436.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 436.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 436.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 436.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.00 406.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.00 406.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.00 406.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.00 406.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.00 406.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.00 406.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.00 406.60 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 505.6 m 328 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 505.6 m 332 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 505.6 m 392 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 505.6 m 456 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 505.6 m 460 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 505.6 m 520 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 466.6 m 328 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332 466.6 m 392 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 466.6 m 456 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 466.6 m 520 466.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 406.6 m 328 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 392.6 m 328 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268 390.6 m 328 390.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 406.6 m 456 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 392.6 m 456 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 390.6 m 456 390.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 280.35 517.68 Td (Time Based Restricted Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.35 509.68 Td (Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.15 517.68 Td (Performance Restricted Stock) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.35 509.68 Td (Units) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.00 478.83 Td (Number) Tj ET Q q 0 0 0 rg BT 307.30 478.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.00 470.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 302.30 470.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.25 494.83 Td (W) Tj ET Q q 0 0 0 rg BT 352.81 494.83 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 347.55 486.83 Td (A) Tj ET Q q 0 0 0 rg BT 352.73 486.83 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.05 478.83 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.65 470.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 358.17 470.83 Td ( ) Tj ET Q q 0 0 0 rg BT 360.02 470.83 Td (V) Tj ET Q q 0 0 0 rg BT 365.06 470.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.00 478.83 Td (Number) Tj ET Q q 0 0 0 rg BT 435.30 478.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.00 470.83 Td (Shar) Tj ET Q q 0 0 0 rg BT 430.30 470.83 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.25 494.83 Td (Weighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.55 486.83 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 470.05 478.83 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.65 470.83 Td (Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 456.27 Td (Nonvested stock at October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 456.27 Td (459) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 456.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 456.27 Td (66.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 456.27 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 456.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 456.27 Td (74.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 441.27 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 441.27 Td (184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 441.27 Td (130.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 441.27 Td (115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 441.27 Td (163.17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 426.27 Td (V) Tj ET Q q 0 0 0 rg BT 76.61 426.27 Td (ested ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 99.66 430.80 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.80 426.32 Td (\(228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 426.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 426.27 Td (66.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.80 426.32 Td (\(104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 426.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 426.27 Td (77.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 411.27 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.80 411.32 Td (\(11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.15 411.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 411.27 Td (72.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.80 411.32 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 411.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 411.27 Td (70.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 396.27 Td (Nonvested stock at April 1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 396.27 Td (404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.50 396.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 396.27 Td (118.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 396.27 Td (176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 396.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 396.27 Td (105.34) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (__________________________________________) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.50 349.50 Td (\(1\) ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 85.50 349.50 Td (Service-based restricted stock units vested during each fiscal year) Tj ET Q q 0 0 0 rg BT 295.20 349.50 Td (. Performance-based awards and units included at ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 456.03 349.50 Td (100%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 474.70 349.50 Td ( of tar) Tj ET Q q 0 0 0 rg BT 493.65 349.50 Td (get goal; under the ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.50 339.90 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 236.32 339.90 Td (0%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 246.98 339.90 Td ( and ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 262.53 339.90 Td (200%) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 281.20 339.90 Td ( of the award.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 308.70 Td (1) Tj ET Q q 0 0 0 rg BT 54.45 308.70 Td (1.) Tj ET Q BT /F2 3.00 Tf ET q 0 0 0 rg BT 61.95 308.70 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.70 308.70 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.20 308.70 Td (COMMITMENTS ) Tj ET Q q 0 0 0 rg BT 150.15 308.70 Td (AND CONTINGENCIES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 284.70 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 284.70 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 510.05 284.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 272.70 Td (employment or intellectual property claims, including, but not limited to, the matters described below) Tj ET Q q 0 0 0 rg BT 473.92 272.70 Td (. On May 14, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 260.70 Td (IMRA) Tj ET Q q 0 0 0 rg BT 93.56 260.70 Td ( ) Tj ET Q q 0 0 0 rg BT 95.51 260.70 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 68.00 248.70 Td (Dsseldorf, Germany) Tj ET Q q 0 0 0 rg BT 153.44 248.70 Td (, captioned In re IMRA) Tj ET Q q 0 0 0 rg BT 246.47 248.70 Td ( ) Tj ET Q q 0 0 0 rg BT 248.42 248.70 Td (America Inc. versus Coherent Kaiserslautern GmbH et. al. 4b O 38/13. ) Tj ET Q q 0 0 0 rg BT 534.55 248.70 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 236.70 Td (complaint alleges that the use of certain of the Company) Tj ET Q q 0 0 0 rg BT 296.54 236.70 Td (s lasers infringes upon EP) Tj ET Q q 0 0 0 rg BT 400.05 236.70 Td ( Patent No. 754,103, entitled Method ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 224.70 Td (For Controlling Configuration of Laser Induced Breakdown and ) Tj ET Q q 0 0 0 rg BT 326.84 224.70 Td (Ablation, issued November 5, 1997. ) Tj ET Q q 0 0 0 rg BT 478.30 224.70 Td (The patent, now ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 212.70 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 425.80 212.70 Td (The complaint seeks unspecified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 200.70 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 68.00 188.70 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 68.00 176.70 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 68.00 164.70 Td (October 1, 2015, the Federal Patent Court ruled that the German portion of the Patent was invalid. Imra has appealed this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 152.70 Td (decision to the Federal Court of Justice, the highest civil jurisdiction court in Germany) Tj ET Q q 0 0 0 rg BT 413.94 152.70 Td (. ) Tj ET Q q 0 0 0 rg BT 418.76 152.70 Td (The infringement action is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 140.70 Td (currently stayed pending the outcome of such appeal. Management has made an accrual with respect to this matter and has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 128.70 Td (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 68.00 116.70 Td (amounts already accrued is not reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 282.93 116.70 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 68.00 104.70 Td (ultimately have a material adverse ef) Tj ET Q q 0 0 0 rg BT 215.25 104.70 Td (fect on our consolidated financial position, results of operations or cash flows, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 92.70 Td (adverse result in one or more matters could negatively af) Tj ET Q q 0 0 0 rg BT 295.24 92.70 Td (fect our results in the period in which they occur) Tj ET Q q 0 0 0 rg BT 488.79 92.70 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 68.70 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 317.20 68.70 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 56.70 Td (sell. From time to time our duty calculations and payments are audited by government agencies. During the second quarter ) 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 (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (of fiscal 2016, we concluded an audit in South Korea for customs duties and value added tax for the period March 2009 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (March 2014. ) Tj ET Q q 0 0 0 rg BT 121.42 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 130.06 730.10 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 730.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.60 730.10 Td ( related to this matter in the second quarter of fiscal 2016 and have no remaining accrual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (at October 1, 2016. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (On November 7, 2016, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 260.45 694.10 Td (Agreement with Barclays, BAML) Tj ET Q q 0 0 0 rg BT 396.16 694.10 Td ( and MUFG. See Note 9 "Borrowings" ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (for further discussion of the issuance of the financing. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (12. EARNINGS PER SHARE) 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 (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 67.50 610.10 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 67.50 598.10 Td (shares outstanding during the period increased by the ef) Tj ET Q q 0 0 0 rg BT 290.59 598.10 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 67.50 586.10 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 67.50 574.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.10 Td (The following table presents information necessary to calculate basic and diluted earnings per share \(in thousands, except ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td (per share data\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 498.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 498.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 498.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 498.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 498.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 498.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 498.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 498.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 468.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 468.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 468.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 468.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 468.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 468.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 468.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 468.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 438.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 438.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 438.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 438.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 438.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 438.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 438.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 438.60 56.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 408.60 250.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 318.00 408.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 408.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 408.60 54.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 431.00 408.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 408.60 55.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.00 408.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 494.00 408.60 56.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 524.6 m 373 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 524.6 m 377 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 524.6 m 431 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 524.6 m 490 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 524.6 m 550 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 524.6 m 373 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 498.6 m 373 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 524.6 m 431 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 498.6 m 431 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 524.6 m 490 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 498.6 m 490 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 524.6 m 494 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 524.6 m 550 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 498.6 m 550 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 498.6 m 373 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 498.6 m 431 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 498.6 m 490 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 498.6 m 494 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 498.6 m 550 498.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 468.6 m 373 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 468.6 m 431 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 468.6 m 490 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 468.6 m 550 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 468.6 m 373 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 454.6 m 373 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 452.6 m 373 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 468.6 m 431 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 454.6 m 431 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 452.6 m 431 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 468.6 m 490 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 454.6 m 490 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 452.6 m 490 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 468.6 m 550 468.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 454.6 m 550 454.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 452.6 m 550 452.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 408.6 m 490 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 408.6 m 550 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 408.6 m 373 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 394.6 m 373 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 392.6 m 373 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 408.6 m 431 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 394.6 m 431 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 392.6 m 431 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 408.6 m 490 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 394.6 m 490 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435 392.6 m 490 392.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 408.6 m 550 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 394.6 m 550 394.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 392.6 m 550 392.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 527.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.60 528.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.40 528.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 501.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.85 510.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.00 502.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.35 510.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.50 502.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.85 510.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.00 502.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.35 510.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.50 502.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 488.27 Td (Weighted average shares outstanding basic) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 488.28 Td (24,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 488.27 Td (24,137) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 488.28 Td (24,422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 488.27 Td (24,066) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 473.27 Td (Dilutive effect of employee stock awards) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 354.15 473.28 Td (261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 473.27 Td (225) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 471.15 473.28 Td (278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 473.27 Td (233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 458.27 Td (Weighted average shares outstandingdiluted) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 458.28 Td (24,757) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 458.27 Td (24,362) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 458.28 Td (24,700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 458.27 Td (24,299) Tj ET Q BT /F2 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 70.50 435.05 167.03 -8.93 re f /GS0 gs q 0 0 0 rg BT 70.50 428.28 Td (Net income fr) Tj ET Q q 0 0 0 rg BT 128.63 428.28 Td (om continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.50 428.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 428.28 Td (42,188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.50 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 428.27 Td (17,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 428.28 Td (72,886) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 428.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 428.27 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 414.17 Td (Loss from discontinued operations, net of income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 350.80 413.33 Td (\(343) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 369.15 413.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.15 413.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 467.80 413.33 Td (\(633) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 486.15 413.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 413.27 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.50 398.28 Td (Net income) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 320.50 398.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 341.65 398.28 Td (41,845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.50 398.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 398.27 Td (17,781) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 437.50 398.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 458.65 398.28 Td (72,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 398.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 398.27 Td (38,067) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 Td (A) Tj ET Q q 0 0 0 rg BT 74.17 370.10 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.77 370.10 Td (0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.77 370.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 370.10 Td (7,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.71 370.10 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 522.92 370.10 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 358.10 Td (months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.33 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.27 358.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.88 358.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.77 358.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.38 358.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 304.04 358.10 Td (, as their ef) Tj ET Q q 0 0 0 rg BT 348.28 358.10 Td (fect was anti-dilutive. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td (A) Tj ET Q q 0 0 0 rg BT 74.17 334.10 Td ( total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.77 334.10 Td (2,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.27 334.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.71 334.10 Td (9,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.21 334.10 Td ( potentially dilutive securities have been excluded from the diluted share calculation for the six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.10 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.27 322.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.88 322.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.77 322.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.38 322.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 304.04 322.10 Td (, as their ef) Tj ET Q q 0 0 0 rg BT 348.28 322.10 Td (fect was anti-dilutive. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (13.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 62.50 286.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 286.10 Td (OTHER INCOME \(EXPENSE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.10 Td (Other income \(expense\) is as follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 217.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 217.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 217.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 217.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 217.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 217.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.50 177.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 268.50 177.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 328.50 177.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 332.50 177.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 392.50 177.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 396.50 177.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 456.50 177.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 460.50 177.60 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 238.60000000000002 m 328.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.5 238.60000000000002 m 332.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 238.60000000000002 m 392.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 238.60000000000002 m 456.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 238.60000000000002 m 520.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 217.60000000000002 m 328.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 217.60000000000002 m 392.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 238.60000000000002 m 456.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 217.60000000000002 m 456.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456.5 238.60000000000002 m 460.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 238.60000000000002 m 520.5 238.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 217.60000000000002 m 520.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 217.60000000000002 m 328.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 217.60000000000002 m 392.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 217.60000000000002 m 456.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 217.60000000000002 m 520.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 162.60000000000002 m 328.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 162.60000000000002 m 392.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 162.60000000000002 m 456.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 162.60000000000002 m 520.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 148.60000000000002 m 328.5 148.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 268.5 146.60000000000002 m 328.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 148.60000000000002 m 392.5 148.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.5 146.60000000000002 m 392.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 162.60000000000002 m 456.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 148.60000000000002 m 456.5 148.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 146.60000000000002 m 456.5 146.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 162.60000000000002 m 520.5 162.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 148.60000000000002 m 520.5 148.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460.5 146.60000000000002 m 520.5 146.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 241.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.60 242.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.40 242.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 71.00 220.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 284.85 229.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.00 221.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.85 229.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.00 221.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.85 229.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.00 221.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.85 229.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 482.00 221.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 207.27 Td (Foreign exchange gain \(loss\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.00 207.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.80 207.33 Td (\(2,732) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.65 207.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.00 207.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.30 207.32 Td (\(198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 207.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 207.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 207.28 Td (10,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 207.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 207.32 Td (\(1,520) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 207.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 192.27 Td (Gain \(loss\) on deferred compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 182.27 Td (investments, net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 182.28 Td (1,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 182.32 Td (\(1,877) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 182.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 430.15 182.28 Td (1,695) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 182.32 Td (\(1,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 182.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 167.27 Td (Other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 306.30 167.33 Td (\(407) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.65 167.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.65 167.27 Td (62) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 434.30 167.33 Td (\(461) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 452.65 167.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 167.27 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.00 152.27 Td (Other - net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 271.00 152.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.80 152.33 Td (\(1,392) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 324.65 152.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.00 152.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.80 152.32 Td (\(2,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.65 152.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 152.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 425.15 152.28 Td (11,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 152.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.80 152.32 Td (\(2,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 152.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 124.10 Td (14.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.00 124.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 124.10 Td (INCOME) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.72 124.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 112.22 124.10 Td (T) Tj ET Q q 0 0 0 rg BT 118.15 124.10 Td (AXES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 100.10 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 502.10 100.10 Td (fective tax rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 88.10 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 88.10 Td (fective tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 76.10 Td (for the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.24 76.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.85 76.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.28 76.10 Td (30.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.11 76.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.55 76.10 Td (32.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.38 76.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 410.04 76.10 Td (.Our ef) Tj ET Q q 0 0 0 rg BT 440.68 76.10 Td (fective tax rates for three and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 64.10 Td (six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.94 64.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.55 64.10 Td ( were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.49 64.10 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.82 64.10 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 442.18 64.10 Td (ferences related to the benefit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 52.10 Td (of income subject to foreign tax rates that are lower than U.S. tax rates including the Singapore tax exemption, the benefit ) 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 (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (of foreign tax credits and the benefit of federal research and development tax credits. ) Tj ET Q q 0 0 0 rg BT 410.17 742.10 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 531.61 742.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (Rofin transaction costs not deductible for tax purposes, tax costs of Rofin restructuring, ) Tj ET Q q 0 0 0 rg BT 419.88 730.10 Td (ASC 740-10 \(formerly FIN48\) tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (liabilities for transfer pricing, 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 68.00 706.10 Td (deductibility of compensation under IRC Section 162\(m\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 93.63 682.10 Td (fective tax rate on income before income taxes for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.87 682.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.64 682.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.94 682.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.94 682.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.27 682.10 Td (26.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.10 682.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 508.84 682.10 Td (fective tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.10 Td (rate 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 374.86 670.10 Td (25.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.69 670.10 Td ( were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.83 658.10 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 174.19 658.10 Td (ferences related to the benefit of income subject to foreign tax rates that are lower than U.S. tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.10 Td (rates including the Singapore tax exemption, the benefit of foreign tax credits and the benefit of federal research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.10 Td (development tax credits including renewal of the federal research and development tax credits for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 510.14 634.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.10 Td (amounts are partially of) Tj ET Q q 0 0 0 rg BT 163.06 622.10 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 68.00 610.10 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 68.00 586.10 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 68.00 574.10 Td (involves judgment. ) Tj ET Q q 0 0 0 rg BT 146.98 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 155.62 574.10 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 68.00 562.10 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 68.00 550.10 Td (in each jurisdiction. ) Tj ET Q q 0 0 0 rg BT 149.46 550.10 Td (The estimates used could dif) Tj ET Q q 0 0 0 rg BT 263.70 550.10 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 68.00 538.10 Td (results in future periods. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 514.10 Td (e had U.S. federal deferred tax assets related to research and development credits, foreign tax credits and other tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 502.10 Td (attributes that can be used to of) Tj ET Q q 0 0 0 rg BT 192.78 502.10 Td (fset federal taxable income in future periods. ) Tj ET Q q 0 0 0 rg BT 374.19 502.10 Td (These credit carryforwards will expire if they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 490.10 Td (are not used within certain time periods. ) Tj ET Q q 0 0 0 rg BT 230.73 490.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.63 490.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.23 490.10 Td (, management determined that there is suf) Tj ET Q q 0 0 0 rg BT 475.50 490.10 Td (ficient positive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 478.10 Td (evidence to conclude that it is more likely than not suf) Tj ET Q q 0 0 0 rg BT 284.98 478.10 Td (ficient taxable income will exist in the future allowing us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 466.10 Td (recognize these deferred tax assets. It is possible that some or all these attributes could ultimately expire unused. If facts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 454.10 Td (and circumstances change in the future, management may determine at that time a valuation allowance is necessary) Tj ET Q q 0 0 0 rg BT 529.11 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 533.56 454.10 Td (A) Tj ET Q q 0 0 0 rg BT 540.23 454.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 442.10 Td (valuation allowance would materially increase our tax expense in the period applied and would adversely af) Tj ET Q q 0 0 0 rg BT 499.61 442.10 Td (fect our results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 430.10 Td (of operations and statement of financial condition. Changes in our underlying facts or circumstances, such as the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 418.10 Td (the Rofin acquisition, will be continually assessed and we will re-evaluate its position accordingly) Tj ET Q q 0 0 0 rg BT 460.04 418.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 394.10 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 68.00 382.10 Td (jurisdictions. For U.S. federal income tax purposes, all years prior to 201) Tj ET Q q 0 0 0 rg BT 359.51 382.10 Td (1 are closed. ) Tj ET Q q 0 0 0 rg BT 412.09 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 420.72 382.10 Td (e agreed to extend the statutes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 370.10 Td (limitations for its fiscal 201) Tj ET Q q 0 0 0 rg BT 178.17 370.10 Td (1 and 2012 U.S. federal tax returns to June 30, 2018 due to an ongoing ) Tj ET Q q 0 0 0 rg BT 463.12 370.10 Td (Advanced Pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 358.10 Td (Agreement \(AP) Tj ET Q q 0 0 0 rg BT 134.56 358.10 Td (A\) between the U.S. and South Korea. ) Tj ET Q q 0 0 0 rg BT 294.89 358.10 Td (The rollback period of this ) Tj ET Q q 0 0 0 rg BT 403.47 358.10 Td (AP) Tj ET Q q 0 0 0 rg BT 415.34 358.10 Td (A) Tj ET Q q 0 0 0 rg BT 422.01 358.10 Td ( may be resolved by the tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 346.10 Td (authorities in South Korea and the U.S. through a Mutual ) Tj ET Q q 0 0 0 rg BT 299.08 346.10 Td (Agreement Procedure \(MAP\). In March 2016, the Internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.10 Td (Revenue Service \(IRS\) issued an audit notice and Information Documentation Requests \(IDRs\) for fiscal 2013. ) Tj ET Q q 0 0 0 rg BT 514.93 334.10 Td (The audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 322.10 Td (is currently in progress and the statute of limitation was extended to June 30, 2018. In our major foreign jurisdictions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.10 Td (our major state jurisdictions, the years prior to 201) Tj ET Q q 0 0 0 rg BT 270.08 310.10 Td (1 and 2012, respectively) Tj ET Q q 0 0 0 rg BT 367.18 310.10 Td (, are closed to examination. Earlier years in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 298.10 Td (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 68.00 286.10 Td (years. In July 2015 and March 2016, Coherent Kaiserslautern GmbH \(formerly Lumera Laser GmbH\) received tax audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 274.10 Td (notices for the fiscal years 2010 to 2014. ) Tj ET Q q 0 0 0 rg BT 233.05 274.10 Td (The audit began in ) Tj ET Q q 0 0 0 rg BT 309.70 274.10 Td (August 2015. ) Tj ET Q q 0 0 0 rg BT 365.91 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 374.55 274.10 Td (e acquired the shares of Lumera Laser GmbH ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 262.10 Td (in December 2012 and, pursuant to the terms of the acquisition agreement, we should not have responsibility for any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 250.10 Td (assessments related to the pre-acquisition period. In June, 2016, Coherent Holding GmbH and Coherent Deutschland ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 238.10 Td (GmbH each received a tax audit notice for the fiscal years 201) Tj ET Q q 0 0 0 rg BT 317.24 238.10 Td (1 to 2014. ) Tj ET Q q 0 0 0 rg BT 359.84 238.10 Td (The audit began ) Tj ET Q q 0 0 0 rg BT 426.21 238.10 Td (August 2016. Coherent GmbH, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 226.10 Td (Coherent LaserSystems GmbH & Co. KG and Coherent Germany GmbH received audit notices for the period that they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 214.10 Td (were in existence during the fiscal years 201) Tj ET Q q 0 0 0 rg BT 245.62 214.10 Td (1 through 2014. ) Tj ET Q q 0 0 0 rg BT 311.54 214.10 Td (The audit work began in January 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.64 190.10 Td (e regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 178.10 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 68.00 154.10 Td (The following table summarizes the activity related to the Company's gross unrecognized tax benefits for the six months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 142.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.83 142.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.43 142.10 Td ( \(amounts in thousands\):) 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 (25) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 733.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 733.50 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 703.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 703.50 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 673.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 673.50 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 643.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 643.50 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 613.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 613.50 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 583.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 583.50 80.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 174.50 553.50 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 553.50 80.00 -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 374.5 733.5 m 454.5 733.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 733.5 m 454.5 733.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 718.5 m 454.5 718.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 718.5 m 454.5 718.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 553.5 m 454.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 553.5 m 454.5 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 539.5 m 454.5 539.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 537.5 m 454.5 537.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.40 737.73 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.85 722.73 Td (April 1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 708.17 Td (Balance as of the beginning of the year) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.00 708.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.15 708.18 Td (20,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 693.17 Td (Increase related to acquisitions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.15 693.18 Td (22,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 678.17 Td (Tax positions related to current year:) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.00 678.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 663.17 Td ( Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 435.65 663.18 Td (815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 648.17 Td ( Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 648.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 633.17 Td (Tax positions related to prior year:) Tj ET Q BT /F2 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 377.00 639.95 2.50 -8.93 re f /GS0 gs q 0 0 0 rg BT 377.00 633.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 618.17 Td ( Additions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.15 618.18 Td (3,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 603.17 Td ( Reductions) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 603.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 588.17 Td (Settlements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 588.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 573.17 Td (Lapses in statutes of limitations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 440.65 573.18 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 558.17 Td (Foreign currency revaluation adjustment) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 432.30 558.23 Td (\(594) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.65 558.18 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 543.17 Td (Balance as of end of period) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 377.00 543.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.15 543.18 Td (46,374) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 515.00 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.89 515.00 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 515.00 Td (, the total amount of gross interest and penalties accrued was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.24 515.00 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.13 515.00 Td (, mostly due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 503.00 Td (the Rofin acquisition, and it is classified as long-term taxes payable in the consolidated balance sheet.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 479.00 Td (15. DEFINED BENEFIT) Tj ET Q q 0 0 0 rg BT 158.73 479.00 Td ( PLANS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 467.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 455.00 Td (As a result of the Rofin acquisition, we have assumed all assets and liabilities of Rofin) Tj ET Q q 0 0 0 rg BT 416.82 455.00 Td (s defined benefit plans for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 443.00 Td (Rofin-Sinar Laser) Tj ET Q q 0 0 0 rg BT 139.52 443.00 Td (, GmbH \("RSL"\) and Rofin-Sinar Inc. \("RS Inc."\) employees.) Tj ET Q q 0 0 0 rg BT 389.24 443.00 Td (The U.S. plan began in fiscal year 1995 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 431.00 Td (and is funded. ) Tj ET Q q 0 0 0 rg BT 126.33 431.00 Td (Any new employees hired after January 1, 2007, are not eligible for the RS Inc. pension plan. ) Tj ET Q q 0 0 0 rg BT 502.06 431.00 Td (As is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 419.00 Td (customary practice with German companies, the German pension plan is unfunded.) Tj ET Q q 0 0 0 rg BT 403.18 419.00 Td (Any new employees hired after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 407.00 Td (acquisition of Rofin-Baasel Lasertechnik in 2000 are not eligible for the RSL) Tj ET Q q 0 0 0 rg BT 376.72 407.00 Td ( pension plan. ) Tj ET Q q 0 0 0 rg BT 434.86 407.00 Td (The measurement date of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 395.00 Td (pension plans is September 30.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 371.00 Td (Ef) Tj ET Q q 0 0 0 rg BT 77.26 371.00 Td (fective January 1, 2012, the RS Inc. defined benefit plan was amended to exclude highly compensated employees, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 359.00 Td (defined by the Internal Revenue Service, from receiving future years of service under the RS Inc. defined benefit plan. ) Tj ET Q q 0 0 0 rg BT 543.93 359.00 Td (A) Tj ET Q q 0 0 0 rg BT 550.60 359.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 347.00 Td (non-qualified defined benefit plan was created to replace the benefits lost by the employees that were otherwise excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 335.00 Td (from the qualified defined benefit plan. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 311.00 Td (In addition, we have defined benefit plans in Coherent Korea, Coherent Japan, and Coherent Italy) Tj ET Q q 0 0 0 rg BT 458.05 311.00 Td (, covering all full-time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 299.00 Td (employees with at least one year of service, and a defined benefit plan in Coherent Germany covering two individuals. ) Tj ET Q q 0 0 0 rg BT 544.24 299.00 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 287.00 Td (is the customary practice with European and ) Tj ET Q q 0 0 0 rg BT 247.66 287.00 Td (Asian companies, the plans are unfunded. ) Tj ET Q q 0 0 0 rg BT 416.88 287.00 Td (W) Tj ET Q q 0 0 0 rg BT 425.51 287.00 Td (e have elected to recognize all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 275.00 Td (actuarial gains and losses on these plans immediately) Tj ET Q q 0 0 0 rg BT 280.35 275.00 Td (, as incurred. ) Tj ET Q q 0 0 0 rg BT 334.31 275.00 Td (The measurement date of these defined benefit plans is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 263.00 Td (September 30.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 239.00 Td (For financial reporting purposes, the calculation of net periodic pension costs is based upon a number of actuarial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 227.00 Td (assumptions including a discount rate for plan obligations, an assumed rate of return on pension assets and an assumed rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 215.00 Td (of compensation increase for employees covered by the plan. ) Tj ET Q q 0 0 0 rg BT 314.58 215.00 Td (All of these assumptions were based upon management's ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 203.00 Td (judgment, considering all known trends and uncertainties. ) Tj ET Q q 0 0 0 rg BT 301.56 203.00 Td (Actual results that dif) Tj ET Q q 0 0 0 rg BT 387.75 203.00 Td (fer from these assumptions would impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 191.00 Td (future expense recognition and the cash funding requirements of our defined benefit plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 167.00 Td (Components of net periodic cost were as follows for the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.98 167.00 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.59 167.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.47 167.00 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.08 167.00 Td (:) Tj ET Q endstream endobj 55 0 obj <>] /Rotate 0 /Contents 56 0 R>> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (26) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 104.50 714.50 154.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 714.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 714.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.50 714.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 714.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 714.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 714.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 714.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 104.50 684.50 154.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 684.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 684.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.50 684.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 684.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 684.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 684.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 684.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 104.50 654.50 154.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 654.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.50 654.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 654.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 654.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 654.50 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 104.50 624.50 154.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 258.50 624.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 317.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 321.50 624.50 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 379.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 383.50 624.50 59.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 624.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 446.50 624.50 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 258.5 735.5 m 317.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 317.5 735.5 m 321.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 735.5 m 379.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 735.5 m 442.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 735.5 m 506.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 735.5 m 317.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 714.5 m 317.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 735.5 m 379.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 714.5 m 379.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 735.5 m 442.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 714.5 m 442.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 735.5 m 446.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 714.5 m 446.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 735.5 m 506.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 714.5 m 506.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 714.5 m 317.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 714.5 m 379.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 714.5 m 442.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 714.5 m 446.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 714.5 m 506.5 714.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 624.5 m 379.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 624.5 m 442.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 624.5 m 506.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 624.5 m 317.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 610.5 m 317.5 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 258.5 608.5 m 317.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 624.5 m 379.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 610.5 m 379.5 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321.5 608.5 m 379.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 624.5 m 442.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 610.5 m 442.5 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 383.5 608.5 m 442.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 624.5 m 446.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 610.5 m 446.5 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 608.5 m 446.5 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 624.5 m 506.5 624.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 610.5 m 506.5 610.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 608.5 m 506.5 608.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 107.00 738.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.10 739.73 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.90 739.73 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 107.00 717.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 274.35 726.73 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.50 718.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.85 726.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.00 718.73 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.35 726.73 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.50 718.73 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.85 726.73 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.00 718.73 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 704.62 Td (Service cost) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.00 704.73 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 704.73 Td (458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.00 704.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 704.62 Td (148) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 704.73 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.65 704.73 Td (843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.00 704.62 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 704.62 Td (291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 689.62 Td (Interest cost) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 689.73 Td (262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 689.62 Td (21) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.65 689.73 Td (450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 689.62 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 674.62 Td (Expected return on plan assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.30 674.73 Td (\(184) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 313.65 674.73 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 674.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.30 674.78 Td (\(306) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 438.65 674.73 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 674.62 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 659.62 Td (Amortization of prior service cost) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 659.73 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 659.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.65 659.18 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 659.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 644.62 Td (Amortization of prior net \(gain\) loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 644.73 Td (139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 644.62 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.65 644.18 Td (231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 644.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 629.62 Td (Recognized net actuarial loss) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 629.73 Td (228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 629.62 Td (166) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.65 629.73 Td (458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 629.62 Td (288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 614.62 Td (Net periodic pension cost) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 261.00 614.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 614.18 Td (922) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.65 614.17 Td (335) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 614.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 416.15 614.18 Td (1,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.00 614.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 614.17 Td (614) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 574.00 Td (16. SEGMENT) Tj ET Q q 0 0 0 rg BT 116.83 574.00 Td ( INFORMA) Tj ET Q q 0 0 0 rg BT 167.47 574.00 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.00 Td (As a result of the acquisition of Rofin in the first quarter of fiscal 2017, we reor) Tj ET Q q 0 0 0 rg BT 385.29 550.00 Td (ganized our prior two reporting segments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 538.00 Td (\(Specialty Laser Systems and Commercial Lasers and Components\) into two new reporting segments for the combined ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.00 Td (company based upon the or) Tj ET Q q 0 0 0 rg BT 177.29 526.00 Td (ganizational structure of the combined company and how the chief operating decision maker ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 514.00 Td (\("CODM"\) receives and utilizes information provided to allocate resources and make decisions: OEM Laser Sources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.00 Td (\(OLS\) and Industrial Lasers & Systems \(ILS\). ) Tj ET Q q 0 0 0 rg BT 271.89 502.00 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 321.23 502.00 Td (, our segment information was restated retroactively in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 490.00 Td (first quarter of fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 176.73 490.00 Td (This segmentation reflects the go-to-market strategies and syner) Tj ET Q q 0 0 0 rg BT 432.85 490.00 Td (gies for our broad portfolio of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 478.00 Td (laser technologies and products. ) Tj ET Q q 0 0 0 rg BT 198.12 478.00 Td (While both segments deliver cost-ef) Tj ET Q q 0 0 0 rg BT 342.33 478.00 Td (fective, highly reliable photonics solutions, the OLS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 466.00 Td (business segment is focused on high performance laser sources and complex optical sub-systems, typically used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.00 Td (microelectronics manufacturing, medical diagnostics and therapeutic medical applications, as well as in scientific research. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.00 Td (Our ILS business segment delivers high performance laser sources, sub-systems and tools primarily used for industrial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.00 Td (laser materials processing, serving important end markets like automotive, machine tool, consumer goods and medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.00 Td (device manufacturing. Rofin has primarily been included in our Industrial Lasers & Systems segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.00 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 394.00 Td (e have identified OLS and ILS as operating segments for which discrete financial information is available. Both units ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 382.00 Td (have dedicated engineering, manufacturing, product business management and product line management functions. ) Tj ET Q q 0 0 0 rg BT 530.96 382.00 Td (A) Tj ET Q q 0 0 0 rg BT 537.63 382.00 Td ( small ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.00 Td (portion of our outside revenue is attributable to projects and recently developed products for which a segment has not yet ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 358.00 Td (been determined. ) Tj ET Q q 0 0 0 rg BT 138.68 358.00 Td (The associated direct and indirect costs are presented in the category of Corporate and other) Tj ET Q q 0 0 0 rg BT 505.90 358.00 Td (, along with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.00 Td (other corporate costs as described below) Tj ET Q q 0 0 0 rg BT 228.74 346.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.00 Td (Our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 163.12 322.00 Td (ficer has been identified as the CODM as he assesses the performance of the segments and decides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 310.00 Td (how to allocate resources to the segments. Income from operations is the measure of profit and loss that our CODM uses to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.00 Td (assess performance and make decisions. ) Tj ET Q q 0 0 0 rg BT 230.22 298.00 Td (As assets are not a measure used to assess the performance of the company by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 286.00 Td (CODM, asset information is not tracked or compiled by segment and is not available to be reported in our disclosures. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 274.00 Td (Income from operations represents the net sales less the cost of sales and direct operating expenses incurred within the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 262.00 Td (operating segments as well as allocated expenses such as shared sales and manufacturing costs. ) Tj ET Q q 0 0 0 rg BT 450.81 262.00 Td (W) Tj ET Q q 0 0 0 rg BT 459.45 262.00 Td (e do not allocate to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 250.00 Td (operating segments certain operating expenses which we manage separately at the corporate level. ) Tj ET Q q 0 0 0 rg BT 462.71 250.00 Td (These unallocated costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 238.00 Td (include stock-based compensation and corporate functions \(certain research and development, management, finance, legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.00 Td (and human resources\) and are included in the results below under Corporate and other in the reconciliation of operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 214.00 Td (results. Management does not consider unallocated Corporate and other costs in its measurement of segment performance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.00 Td (The following table provides net sales and income from continuing operations for our operating segments and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 178.00 Td (reconciliation of our total income from continuing operations to income from continuing operations before income taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.00 Td (\(in thousands\):) 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 33.60 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 740.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 695.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 695.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 695.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 695.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 695.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 695.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 695.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 695.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 695.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 665.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 665.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 665.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 665.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 665.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 665.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 665.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 665.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 665.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 596.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 596.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 596.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 596.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 596.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 596.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 596.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 596.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 596.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 566.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 566.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 566.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 566.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 566.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 566.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 566.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 566.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 566.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 68.00 526.60 160.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 228.00 526.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 288.00 526.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 292.00 526.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 526.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 356.00 526.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.00 526.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 420.00 526.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 480.00 526.60 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 228 716.6 m 288 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 716.6 m 292 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 716.6 m 352 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 716.6 m 416 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 716.6 m 480 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 716.6 m 288 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 695.6 m 288 695.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 288 716.6 m 292 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 716.6 m 352 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 695.6 m 352 695.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 716.6 m 416 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 695.6 m 416 695.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 716.6 m 420 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 716.6 m 480 716.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 695.6 m 480 695.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 650.6 m 288 650.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 650.6 m 352 650.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 650.6 m 416 650.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 650.6 m 480 650.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 636.6 m 288 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 634.6 m 288 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 636.6 m 352 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 634.6 m 352 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 650.6 m 416 650.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 636.6 m 416 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 634.6 m 416 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 650.6 m 480 650.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 636.6 m 480 636.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 634.6 m 480 634.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 551.6 m 352 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 551.6 m 416 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 551.6 m 480 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 551.6 m 288 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 551.6 m 416 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 551.6 m 480 551.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 511.6 m 416 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 511.6 m 480 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 511.6 m 288 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 486.6 m 288 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 484.6 m 288 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 511.6 m 352 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 486.6 m 352 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 484.6 m 352 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 511.6 m 416 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 486.6 m 416 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 484.6 m 416 484.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 511.6 m 480 511.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 486.6 m 480 486.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420 484.6 m 480 484.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 70.50 719.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.10 720.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.90 720.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 70.50 699.83 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.35 707.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 249.50 699.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.35 707.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 313.50 699.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.35 707.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.50 699.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.35 707.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 441.50 699.83 Td (2016) 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 70.5 683.9333984375 m 109.6552734375 683.9333984375 l s q 0 0 0 rg BT 70.50 685.27 Td (Net sales:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 670.27 Td (OEM Laser Sources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.50 670.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.65 670.28 Td (277,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.50 670.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.65 670.27 Td (167,042) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.50 670.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 670.28 Td (515,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 670.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 670.27 Td (325,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 655.27 Td (Industrial Lasers & Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.65 655.28 Td (145,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 655.27 Td (32,840) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 655.28 Td (253,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 655.27 Td (64,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 640.27 Td (Total net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.50 640.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.65 640.28 Td (422,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.50 640.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.65 640.27 Td (199,882) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.50 640.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 640.28 Td (768,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 640.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 640.27 Td (390,157) 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 70.5 609.9333984375 m 192.4189453125 609.9333984375 l s q 0 0 0 rg BT 70.50 611.27 Td (Income \(loss\) from continuing) 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 70.5 599.9333984375 m 114.93359375 599.9333984375 l s q 0 0 0 rg BT 70.50 601.27 Td (operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 586.27 Td (OEM Laser Sources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.50 586.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.65 586.28 Td (102,870) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.50 586.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 586.27 Td (42,743) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.50 586.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 586.28 Td (186,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 586.27 Td (83,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 571.27 Td (Industrial Lasers & Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.30 571.28 Td (\(11,571) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.15 571.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.30 571.32 Td (\(3,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 571.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.30 571.33 Td (\(28,079) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 571.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.30 571.32 Td (\(6,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 571.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 556.27 Td (Corporate and other) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.30 556.28 Td (\(20,210) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.15 556.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.30 556.32 Td (\(13,215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 556.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.30 556.33 Td (\(45,092) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 556.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.30 556.32 Td (\(23,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 556.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 541.27 Td (Total income from continuing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 531.27 Td (operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.65 531.28 Td (71,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 531.27 Td (26,004) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 531.28 Td (113,289) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 531.27 Td (53,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 516.27 Td ( Total other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 253.30 516.28 Td (\(10,255) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.15 516.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.30 516.32 Td (\(1,780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 516.27 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.30 516.33 Td (\(5,083) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 516.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.30 516.32 Td (\(2,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 516.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 500.27 Td (Income from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 490.27 Td (before income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 230.50 490.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.65 490.28 Td (60,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.50 490.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 490.27 Td (24,224) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 358.50 490.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.65 490.28 Td (108,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 490.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 490.27 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td ( Major) Tj ET Q q 0 0 0 rg BT 94.03 462.10 Td ( Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 438.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 438.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.01 438.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.45 438.10 Td ( customer during the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.80 438.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.41 438.10 Td ( that accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.60 438.10 Td (23.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.43 438.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.87 438.10 Td (23.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.70 438.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 426.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.16 426.10 Td (, of net sales. ) Tj ET Q q 0 0 0 rg BT 169.97 426.10 Td (The same customer accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.41 426.10 Td (10.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.24 426.10 Td ( of net sales for the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.04 426.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 426.10 Td (. ) Tj ET Q q 0 0 0 rg BT 542.47 426.10 Td (W) Tj ET Q q 0 0 0 rg BT 551.11 426.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 414.10 Td (had another customer during the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.77 414.10 Td (April2, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.38 414.10 Td ( that accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.57 414.10 Td (17.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.40 414.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.84 414.10 Td (17.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.67 414.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 402.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.16 402.10 Td (, of net sales. ) Tj ET Q q 0 0 0 rg BT 169.97 402.10 Td (The customers purchased primarily from our OLS segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 378.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.14 378.10 Td (e had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.01 378.10 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.45 378.10 Td ( customer that accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.80 378.10 Td (18.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.63 378.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.06 378.10 Td (18.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.89 378.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 354.56 378.10 Td (, of accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.62 378.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.22 378.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 366.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 366.10 Td (. ) Tj ET Q q 0 0 0 rg BT 137.03 366.10 Td (W) Tj ET Q q 0 0 0 rg BT 145.66 366.10 Td (e had another customer that accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.87 366.10 Td (18.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.70 366.10 Td ( of accounts receivable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.81 366.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.52 366.10 Td (. ) Tj ET Q q 0 0 0 rg BT 515.34 366.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 354.10 Td (customers purchased primarily from our OLS segment. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 318.10 Td (17. RESTRUCTURING CHARGES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 294.10 Td (In the first quarter of fiscal 2017, we began the implementation of planned restructuring activities in connection with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 282.10 Td (acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 152.81 282.10 Td (These activities primarily relate to the exit from our high power fiber laser product line, change of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 270.10 Td (control payments to Rofin of) Tj ET Q q 0 0 0 rg BT 183.36 270.10 Td (ficers and re-grouping of our production lines due to segment reor) Tj ET Q q 0 0 0 rg BT 447.54 270.10 Td (ganization, resulting in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 258.10 Td (char) Tj ET Q q 0 0 0 rg BT 85.03 258.10 Td (ges primarily for employee termination and other exit related costs associated with the write-of) Tj ET Q q 0 0 0 rg BT 465.00 258.10 Td (f of property and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 246.10 Td (equipment and inventory) Tj ET Q q 0 0 0 rg BT 167.33 246.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 229.10 Td (The following table presents our current liability as accrued on our balance sheets for restructuring char) Tj ET Q q 0 0 0 rg BT 482.38 229.10 Td (ges. ) Tj ET Q q 0 0 0 rg BT 500.53 229.10 Td (The table sets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 217.10 Td (forth an analysis of the components of the restructuring char) Tj ET Q q 0 0 0 rg BT 309.13 217.10 Td (ges and payments and other deductions made against the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 205.10 Td (accrual for the first six months of fiscal 2017 \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 149.60 176.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 149.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 149.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 149.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 149.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 149.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 149.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 149.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 119.60 176.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 119.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 119.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 119.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 119.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 119.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 119.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 119.60 63.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 96.50 89.60 176.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 272.50 89.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 334.50 89.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 89.60 62.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 400.50 89.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 404.50 89.60 61.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 465.50 89.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 469.50 89.60 63.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 164.60000000000002 m 334.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 164.60000000000002 m 400.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 164.60000000000002 m 465.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 164.60000000000002 m 532.5 164.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 119.60000000000002 m 334.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 119.60000000000002 m 400.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 119.60000000000002 m 465.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 119.60000000000002 m 532.5 119.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 74.60000000000002 m 334.5 74.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 60.60000000000002 m 334.5 60.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272.5 58.60000000000002 m 334.5 58.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 74.60000000000002 m 400.5 74.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 60.60000000000002 m 400.5 60.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 58.60000000000002 m 400.5 58.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 74.60000000000002 m 465.5 74.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 60.60000000000002 m 465.5 60.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404.5 58.60000000000002 m 465.5 58.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 74.60000000000002 m 532.5 74.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 60.60000000000002 m 532.5 60.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 58.60000000000002 m 532.5 58.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.65 176.83 Td (Severance) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.85 168.83 Td (Related) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.00 176.83 Td (Asset Write) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.65 168.83 Td (Offs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.35 168.83 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 491.75 168.83 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 154.27 Td (Balances, October 1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.00 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 154.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 154.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 154.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.00 154.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 154.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 139.27 Td (Provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 139.27 Td (2,703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 139.27 Td (4,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 139.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 139.27 Td (7,062) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 124.27 Td (Payments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 124.27 Td (\(344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 124.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.80 124.32 Td (\(4,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 124.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 124.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.80 124.32 Td (\(4,703) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 124.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 109.27 Td (Balances, December 31, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 109.27 Td (2,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 109.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 109.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 109.27 Td (2,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 94.27 Td (Provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.65 94.27 Td (319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.30 94.32 Td (\(45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 94.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 94.27 Td (283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.65 94.27 Td (557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 79.27 Td (Payments and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 79.27 Td (\(892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 79.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 79.27 Td (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.30 79.32 Td (\(104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 79.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.30 79.32 Td (\(951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 79.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 64.27 Td (Balances, April 1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.00 64.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.15 64.27 Td (1,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.00 64.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.65 64.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.00 64.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 64.27 Td (179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.00 64.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 64.27 Td (1,965) Tj ET Q BT /F1 10.00 Tf ET 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 (28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 742.10 Td (The current year severance related costs are primarily comprised of severance pay for employees being terminated due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 730.10 Td (the transition of activities out of Rofin. ) Tj ET Q q 0 0 0 rg BT 225.75 730.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.70 730.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.31 730.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.31 730.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.20 730.10 Td ( of accrued restructuring costs were included in other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.10 Td (current liabilities. By segment, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.53 718.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.42 718.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.86 718.10 Td ($7.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.75 718.10 Td ( of restructuring costs were incurred in the ILS segment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.89 706.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.33 706.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.22 706.10 Td ( were incurred in the OLS segment in the three and six months ended ) Tj ET Q q 0 0 0 rg BT 464.04 706.10 Td (April, 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 115.66 694.10 Td (. Restructuring char) Tj ET Q q 0 0 0 rg BT 194.62 694.10 Td (ges are recorded in cost of sales, research and development and selling, general and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.10 Td (administrative expenses in our condensed consolidated statements of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 653.10 Td (18. DISCONTINUED OPERA) Tj ET Q q 0 0 0 rg BT 182.05 653.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 68.00 629.10 Td (Discontinued ) Tj ET Q q 0 0 0 rg BT 126.62 629.10 Td (Operations ) Tj ET Q q 0 0 0 rg BT 176.90 629.10 Td (and ) Tj ET Q q 0 0 0 rg BT 194.97 629.10 Td (Assets ) Tj ET Q q 0 0 0 rg BT 224.14 629.10 Td (Held ) Tj ET Q q 0 0 0 rg BT 247.19 629.10 Td (for) Tj ET Q q 0 0 0 rg BT 259.78 629.10 Td ( ) Tj ET Q q 0 0 0 rg BT 262.28 629.10 Td (Sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 605.10 Td (Discontinued operations are comprised of Rofin) Tj ET Q q 0 0 0 rg BT 263.23 605.10 Td (s low power CO2 laser business based in Hull, United Kingdom, that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 593.10 Td (acquired as part of our acquisition of Rofin. ) Tj ET Q q 0 0 0 rg BT 244.90 593.10 Td (As a condition of the acquisition, we are required to divest ourselves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 581.10 Td (Rofin) Tj ET Q q 0 0 0 rg BT 93.56 581.10 Td (s low power CO2 laser business and will report this business separately as a discontinued operation until it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 569.10 Td (divested. Management is actively marketing this business for sale. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 545.10 Td (For financial statement purposes, the results of operations for this discontinued business have been segregated from those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 533.10 Td (of the continuing operations and are presented in our condensed consolidated financial statements as discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 521.10 Td (operations and the net assets of the remaining discontinued business have been presented as current assets and current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 509.10 Td (liabilities held for sale.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 485.10 Td (The ) Tj ET Q q 0 0 0 rg BT 86.05 485.10 Td (results ) Tj ET Q q 0 0 0 rg BT 114.66 485.10 Td (of ) Tj ET Q q 0 0 0 rg BT 125.49 485.10 Td (discontinued ) Tj ET Q q 0 0 0 rg BT 179.09 485.10 Td (operations ) Tj ET Q q 0 0 0 rg BT 223.24 485.10 Td (for ) Tj ET Q q 0 0 0 rg BT 237.40 485.10 Td (the ) Tj ET Q q 0 0 0 rg BT 252.12 485.10 Td (three ) Tj ET Q q 0 0 0 rg BT 274.61 485.10 Td (and ) Tj ET Q q 0 0 0 rg BT 291.54 485.10 Td (six ) Tj ET Q q 0 0 0 rg BT 305.71 485.10 Td (months ) Tj ET Q q 0 0 0 rg BT 337.66 485.10 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.49 485.10 Td (April1, ) Tj ET Q q 0 0 0 rg BT 397.10 485.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.10 485.10 Td ( ) Tj ET Q q 0 0 0 rg BT 419.60 485.10 Td (are ) Tj ET Q q 0 0 0 rg BT 434.30 485.10 Td (as ) Tj ET Q q 0 0 0 rg BT 445.13 485.10 Td (follows ) Tj ET Q q 0 0 0 rg BT 477.63 485.10 Td (\(in ) Tj ET Q q 0 0 0 rg BT 491.24 485.10 Td (thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 107.00 428.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 428.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 428.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 428.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 107.00 398.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 398.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 398.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 398.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 107.00 368.60 245.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 352.00 368.60 83.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 435.00 368.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 439.00 368.60 83.00 -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 352 447.6 m 435 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 447.6 m 522 447.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 428.6 m 435 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 428.6 m 522 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 428.6 m 522 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 353.6 m 435 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 353.6 m 522 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 353.6 m 435 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 339.6 m 435 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 337.6 m 435 337.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 353.6 m 522 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 339.6 m 522 339.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 337.6 m 522 337.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.60 451.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.40 451.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.85 439.68 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.00 431.68 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.85 439.68 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.00 431.68 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 418.27 Td (Net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.50 418.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 418.27 Td (7,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 418.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 418.27 Td (12,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 403.27 Td (Cost of sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 403.27 Td (5,879) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 403.27 Td (8,988) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 388.27 Td (Operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 388.27 Td (2,607) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 388.27 Td (4,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 373.27 Td (Other expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.80 373.32 Td (\(50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 373.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 373.27 Td (168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 358.27 Td (Income tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.80 358.32 Td (\(228) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 358.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 358.32 Td (\(300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 358.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 343.27 Td (Net loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.50 343.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.80 343.32 Td (\(343) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.15 343.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 343.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.80 343.32 Td (\(633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.15 343.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 315.10 Td (Current assets and current liabilities classified as held for sale as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.47 315.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.08 315.10 Td ( related to discontinued operations are as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 303.10 Td (follows \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 114.50 280.60 300.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 280.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 114.50 250.60 300.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 250.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 114.50 220.60 300.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 220.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 114.50 190.60 300.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 190.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 114.50 160.60 300.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 160.60 100.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 114.50 130.60 300.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 130.60 100.00 -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 414.5 190.60000000000002 m 514.5 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 190.60000000000002 m 514.5 190.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 176.60000000000002 m 514.5 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 174.60000000000002 m 514.5 174.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 130.60000000000002 m 514.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 130.60000000000002 m 514.5 130.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 116.60000000000002 m 514.5 116.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 114.60000000000002 m 514.5 114.60000000000002 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 270.27 Td (Accounts receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.00 270.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 270.27 Td (5,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 255.27 Td (Inventories) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 255.27 Td (4,916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 240.27 Td (Prepaid expenses and other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 240.27 Td (414) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 225.27 Td (Property and equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 225.27 Td (9,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 210.27 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 210.27 Td (33,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 195.27 Td (Intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 195.27 Td (11,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 180.27 Td (Total current assets held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.00 180.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 180.27 Td (65,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 150.27 Td (Accounts payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.00 150.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 150.27 Td (1,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 135.27 Td (Other current liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 135.27 Td (5,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 120.27 Td (Total current liabilities held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.00 120.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 120.27 Td (7,454) Tj ET Q BT /F1 10.00 Tf ET 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 (29) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (19. SUBSEQUENT) Tj ET Q q 0 0 0 rg BT 134.57 742.25 Td ( EVENT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 718.25 Td (On May 8, 2017, we entered into ) Tj ET Q q 0 0 0 rg BT 202.14 718.25 Td (Amendment No. 1 and ) Tj ET Q q 0 0 0 rg BT 295.55 718.25 Td (W) Tj ET Q q 0 0 0 rg BT 304.19 718.25 Td (aiver \(the "Repricing ) Tj ET Q q 0 0 0 rg BT 390.19 718.25 Td (Amendment"\) to the Credit ) Tj ET Q q 0 0 0 rg BT 501.47 718.25 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 706.25 Td (dated as of November 7, 2016 \(the Credit ) Tj ET Q q 0 0 0 rg BT 240.45 706.25 Td (Agreement\) by and among Coherent Holding GmbH, as borrower \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 694.25 Td (Borrower\), and certain of our direct and indirect subsidiaries from time to time party thereto, as guarantors, the lenders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 682.25 Td (from time to time party thereto, Barclays Bank PLC, as administrative agent and an L/C Issuer) Tj ET Q q 0 0 0 rg BT 446.12 682.25 Td (, Bank of ) Tj ET Q q 0 0 0 rg BT 485.00 682.25 Td (America, N.A., as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.25 Td (an L/C Issuer) Tj ET Q q 0 0 0 rg BT 121.48 670.25 Td (, and MUFG Union Bank, N.A., as an L/C Issuer) Tj ET Q q 0 0 0 rg BT 317.02 670.25 Td (. ) Tj ET Q q 0 0 0 rg BT 321.84 670.25 Td (The Repricing ) Tj ET Q q 0 0 0 rg BT 381.27 670.25 Td (Amendment amends the Credit ) Tj ET Q q 0 0 0 rg BT 507.91 670.25 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 658.25 Td (to, among other things, reduce the applicable interest rate mar) Tj ET Q q 0 0 0 rg BT 315.23 658.25 Td (gins with respect to the Euro ) Tj ET Q q 0 0 0 rg BT 432.24 658.25 Td (T) Tj ET Q q 0 0 0 rg BT 437.65 658.25 Td (erm Loans to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.92 658.25 Td (1.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.75 658.25 Td ( for Euro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 73.41 646.25 Td (erm Loans maintained as base rate loans and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.46 646.25 Td (2.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.29 646.25 Td ( for Euro ) Tj ET Q q 0 0 0 rg BT 318.70 646.25 Td (T) Tj ET Q q 0 0 0 rg BT 324.11 646.25 Td (erm Loans maintained as eurocurrency rate loans, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 634.25 Td (stepdowns to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 634.25 Td (1.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.83 634.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.27 634.25 Td (2.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.10 634.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 246.76 634.25 Td (, available after May 8, 2018 if the consolidated total gross leverage ratio for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 622.25 Td (Coherent and its restricted subsidiaries is less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.85 622.25 Td (1.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.35 622.25 Td (:1.00 and extends the period during which a prepayment premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 610.25 Td (may be required for a Repricing ) Tj ET Q q 0 0 0 rg BT 198.32 610.25 Td (T) Tj ET Q q 0 0 0 rg BT 204.08 610.25 Td (ransaction until six months after the ef) Tj ET Q q 0 0 0 rg BT 357.75 610.25 Td (fective date of the Repricing ) Tj ET Q q 0 0 0 rg BT 473.53 610.25 Td (Amendment. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 598.25 Td (connection with the execution of the Repricing ) Tj ET Q q 0 0 0 rg BT 257.67 598.25 Td (Amendment, we paid arrangement fees of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.14 598.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.03 598.25 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 586.25 Td (well as certain fees and expenses of the administrative agent and the Lenders, in accordance with the terms of the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 574.25 Td (Agreement. ) 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 (30) 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, laser) Tj ET Q q 0 0 0 rg BT 284.75 658.25 Td (-based technologies and laser) Tj ET Q q 0 0 0 rg BT 402.00 658.25 Td (-based system solutions in a broad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (range of commercial, industrial and scientific applications. ) Tj ET Q q 0 0 0 rg BT 287.24 646.25 Td (W) Tj ET Q q 0 0 0 rg BT 295.87 646.25 Td (e design, manufacture, service and market lasers and related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (accessories for a diverse group of customers. Since inception in 1966, we have grown through internal expansion and through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (strategic acquisitions of complementary businesses, technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 395.09 622.25 Td (, manufacturing processes and product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.25 Td (of) Tj ET Q q 0 0 0 rg BT 58.15 610.25 Td (ferings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (As a result of the acquisition of Rofin in the first quarter of fiscal 2017 \(see discussion below\), we reor) Tj ET Q q 0 0 0 rg BT 460.83 586.25 Td (ganized our prior two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (reporting segments \(Specialty Laser Systems and Commercial Lasers and Components\) into two new reporting segments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (the combined company: OEM Laser Sources \(OLS\) and Industrial Lasers & Systems \(ILS\). ) Tj ET Q q 0 0 0 rg BT 436.94 562.25 Td (This segmentation reflects the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (go-to-market strategies and syner) Tj ET Q q 0 0 0 rg BT 183.38 550.25 Td (gies for our broad portfolio of laser technologies and products. ) Tj ET Q q 0 0 0 rg BT 436.19 550.25 Td (While both segments deliver ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (cost-ef) Tj ET Q q 0 0 0 rg BT 77.03 538.25 Td (fective, highly reliable photonics solutions, the OLS business segment is focused on high performance laser sources and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (complex optical sub-systems typically used in microelectronics manufacturing, medical diagnostics and therapeutic medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (applications, as well as in scientific research. Our ILS business segment delivers high performance laser sources, sub-systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (and tools primarily used for industrial laser materials processing, serving important end markets like automotive, machine tool, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (consumer goods and medical device manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 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 50.00 454.25 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 50.00 442.25 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 50.00 430.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 430.25 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 50.00 418.25 Td (These unallocated costs include stock-based compensation and corporate functions \(certain advanced research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (development, management, finance, legal and human resources\) and are included in Corporate and other) Tj ET Q q 0 0 0 rg BT 467.62 406.25 Td (. Management does not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 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 50.00 370.25 Td (MARKET) Tj ET Q q 0 0 0 rg BT 94.82 370.25 Td ( ) Tj ET Q q 0 0 0 rg BT 96.77 370.25 Td (APPLICA) Tj ET Q q 0 0 0 rg BT 140.47 370.25 Td (TIONS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (Our products address a broad range of applications that we group into the following markets: Microelectronics, Materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (Processing, OEM Components and Instrumentation and Scientific Research in academia and government.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (OUR STRA) Tj ET Q q 0 0 0 rg BT 100.65 310.25 Td (TEGY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 298.25 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 50.00 286.25 Td (on our core expertise in lasers and optical technologies. In pursuit of our strategy) Tj ET Q q 0 0 0 rg BT 373.14 286.25 Td (, we intend to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 265.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 265.25 Td (Leverage our) Tj ET Q q 0 0 0 rg BT 142.74 265.25 Td ( technology portfolio and application engineering to lead the pr) Tj ET Q q 0 0 0 rg BT 411.73 265.25 Td (oliferation of photonics into ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 253.25 Td (br) Tj ET Q q 0 0 0 rg BT 95.82 253.25 Td (oader) Tj ET Q q 0 0 0 rg BT 120.08 253.25 Td ( markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.57 253.25 Td (W) Tj ET Q q 0 0 0 rg BT 176.21 253.25 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 86.00 241.25 Td (engineering can be used to of) Tj ET Q q 0 0 0 rg BT 203.28 241.25 Td (fer innovative solutions and gain access to new markets. ) Tj ET Q q 0 0 0 rg BT 430.81 241.25 Td (W) Tj ET Q q 0 0 0 rg BT 439.45 241.25 Td (e plan to utilize our expertise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 229.25 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 68.00 208.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 208.25 Td (Str) Tj ET Q q 0 0 0 rg BT 99.15 208.25 Td (eamline our) Tj ET Q q 0 0 0 rg BT 149.79 208.25 Td ( manufacturing structur) Tj ET Q q 0 0 0 rg BT 253.50 208.25 Td (e and impr) Tj ET Q q 0 0 0 rg BT 299.98 208.25 Td (ove our) Tj ET Q q 0 0 0 rg BT 331.74 208.25 Td ( cost structur) Tj ET Q q 0 0 0 rg BT 388.21 208.25 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 208.25 Td (W) Tj ET Q q 0 0 0 rg BT 411.29 208.25 Td (e will focus on optimizing the mix of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 196.25 Td (products that we manufacture internally and externally) Tj ET Q q 0 0 0 rg BT 304.15 196.25 Td (. ) Tj ET Q q 0 0 0 rg BT 308.97 196.25 Td (W) Tj ET Q q 0 0 0 rg BT 317.61 196.25 Td (e will utilize vertical integration where our internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 184.25 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 86.00 172.25 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 68.00 151.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 151.25 Td (Focus on long-term impr) Tj ET Q q 0 0 0 rg BT 192.20 151.25 Td (ovement of adjusted EBITDA, in dollars and as a per) Tj ET Q q 0 0 0 rg BT 418.71 151.25 Td (centage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.07 151.25 Td (W) Tj ET Q q 0 0 0 rg BT 518.71 151.25 Td (e define ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 139.25 Td (adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 157.93 139.25 Td ( as operating income adjusted for depreciation, amortization, stock compensation expenses, major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 127.25 Td (restructuring costs and certain other non-operating income and expense items. Key initiatives to reach our goals for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 115.25 Td (EBITDA) Tj ET Q q 0 0 0 rg BT 122.11 115.25 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 285.41 115.25 Td (Asian manufacturing locations, rationalizing our supply chain and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 103.25 Td (continued leveraging of our infrastructure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 82.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 82.25 Td (Optimize our) Tj ET Q q 0 0 0 rg BT 142.75 82.25 Td ( leadership position in existing markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.71 82.25 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 70.25 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 58.25 Td (substantial portion of our revenues. ) Tj ET Q q 0 0 0 rg BT 229.68 58.25 Td (W) Tj ET Q q 0 0 0 rg BT 238.31 58.25 Td (e plan to optimize our financial returns from these markets.) 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 (31) 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 (Maintain and develop additional str) Tj ET Q q 0 0 0 rg BT 239.18 742.10 Td (ong collaborative customer) Tj ET Q q 0 0 0 rg BT 354.53 742.10 Td ( and industry r) Tj ET Q q 0 0 0 rg BT 418.53 742.10 Td (elationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.11 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 487.74 742.10 Td (e believe that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 730.10 Td (Coherent brand name and reputation for product quality) Tj ET Q q 0 0 0 rg BT 308.89 730.10 Td (, technical performance and customer satisfaction will help us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 718.10 Td (to further develop our loyal customer base. ) Tj ET Q q 0 0 0 rg BT 260.21 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 268.85 718.10 Td (e plan to maintain our current customer relationships and develop new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 706.10 Td (ones with customers who are industry leaders and work together with these customers to design and develop ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 694.10 Td (innovative product systems and solutions as they develop new technologies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 673.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 86.00 673.10 Td (Develop and acquir) Tj ET Q q 0 0 0 rg BT 169.16 673.10 Td (e new technologies and market shar) Tj ET Q q 0 0 0 rg BT 321.47 673.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.91 673.10 Td (W) Tj ET Q q 0 0 0 rg BT 344.54 673.10 Td (e will continue to enhance our market position ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 661.10 Td (through our existing technologies and develop new technologies through our internal research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 649.10 Td (ef) Tj ET Q q 0 0 0 rg BT 93.59 649.10 Td (forts, as well as through the acquisition of additional complementary technologies, intellectual property) Tj ET Q q 0 0 0 rg BT 506.71 649.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 637.10 Td (manufacturing processes and product of) Tj ET Q q 0 0 0 rg BT 245.77 637.10 Td (ferings.) 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, business combinations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 493.10 Td (accounting for long-lived assets \(including goodwill and intangible assets\), inventory valuation, warranty reserves, stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 481.10 Td (compensation and accounting for income taxes. See Item 7. "Management's Discussion and ) Tj ET Q q 0 0 0 rg BT 418.01 481.10 Td (Analysis of Financial Condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 469.10 Td (and Results of Operations" in our ) Tj ET Q q 0 0 0 rg BT 185.73 469.10 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 407.34 469.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 469.10 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 /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 445.10 Td (Starting in the three months ended December 31, 2016, we assessed business combinations to be one of our critical accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 433.10 Td (policies. ) Tj ET Q q 0 0 0 rg BT 85.92 433.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.56 433.10 Td (e include the results of operations of the businesses that we acquire as of the respective dates of acquisition. ) Tj ET Q q 0 0 0 rg BT 527.58 433.10 Td (W) Tj ET Q q 0 0 0 rg BT 536.22 433.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 421.10 Td (allocate the fair value of the purchase price of our business acquisitions to the tangible assets acquired, liabilities assumed, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 409.10 Td (intangible assets acquired, based on their estimated fair values. ) Tj ET Q q 0 0 0 rg BT 303.90 409.10 Td (The excess of the purchase price over the fair values of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 397.10 Td (identifiable assets and liabilities is recorded as goodwill. ) Tj ET Q q 0 0 0 rg BT 278.00 397.10 Td (Additional information existing as of the acquisition date, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 385.10 Td (unknown to us at that time, may become known during the remainder of the measurement period, not to exceed 12 months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 373.10 Td (from the acquisition date, which may result in changes to the amounts and allocations recorded.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 349.10 Td (KEY) Tj ET Q q 0 0 0 rg BT 71.30 349.10 Td ( PERFORMANCE INDICA) Tj ET Q q 0 0 0 rg BT 191.11 349.10 Td (T) Tj ET Q q 0 0 0 rg BT 197.60 349.10 Td (ORS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 337.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 325.10 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 50.00 313.10 Td (to assess our financial performance. Some of the indicators are non-GAAP) Tj ET Q q 0 0 0 rg BT 348.71 313.10 Td ( measures and should not be considered as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 301.10 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 50.00 289.10 Td (generally accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 217.43 289.10 Td (As previously announced during our first quarter earnings call held on February 7, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 277.10 Td (2017, management has determined that we will no longer present non-GAAP) Tj ET Q q 0 0 0 rg BT 358.72 277.10 Td ( bookings data. ) Tj ET Q q 0 0 0 rg BT 421.87 277.10 Td (W) Tj ET Q q 0 0 0 rg BT 430.50 277.10 Td (e are one of the few companies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 265.10 Td (in the industry that has provided bookings information, which we believe puts us at a competitive disadvantage. In addition, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 253.10 Td (bookings volatility has and will continue to be high by virtue of the excimer laser annealing \("ELA"\) business where high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 241.10 Td (average selling prices can cause lar) Tj ET Q q 0 0 0 rg BT 190.58 241.10 Td (ge swings in bookings; these swings are not indicative of the long-term potential of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 229.10 Td (business. ) Tj ET Q q 0 0 0 rg BT 88.71 229.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.35 229.10 Td (e believe this change will put more focus on our key performance metrics discussed below) Tj ET Q q 0 0 0 rg BT 458.81 229.10 Td (. ) Tj ET Q q 0 0 0 rg BT 463.26 229.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 512.59 229.10 Td (, beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 217.10 Td (with this quarterly report, we are no longer providing bookings, book-to-bill ratio and related disclosure in our MD&A.) 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 (32) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 688.50 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 688.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 688.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 688.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 688.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 688.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 688.50 4.00 -15.00 re f /GS0 gs 0.8 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0 rg BT 305.60 739.73 Td (Three Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 453.00 738.22 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 527.00 738.22 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 719.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.85 720.73 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.85 720.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.85 720.73 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.85 720.73 Td (%Change) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 706.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.20 708.58 Td (\(Dollarsinthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 693.17 Td (Net salesOEM Laser Sources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 693.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.50 693.18 Td (277,144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 693.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 693.17 Td (167,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 693.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 693.17 Td (110,102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 693.17 Td (65.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 693.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 678.17 Td (Net salesIndustrial Lasers & Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 678.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.50 678.18 Td (145,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 678.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 678.17 Td (32,840) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 678.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.75 678.17 Td (112,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 678.17 Td (343.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 678.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 663.17 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 653.17 Td (OEM Laser Sources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 653.18 Td (53.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 653.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 653.17 Td (48.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 653.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 653.17 Td (5.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 653.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 653.17 Td (12.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 653.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 638.17 Td (Gross profit as a percentage of net salesIndustrial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 628.17 Td (Lasers & Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 628.18 Td (21.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 628.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 628.17 Td (27.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 628.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.45 628.17 Td (\(6.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 628.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 628.17 Td (\(23.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 628.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 613.17 Td (Research and development as a percentage of net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 603.17 Td (sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.50 603.18 Td (7.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 603.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 603.17 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 603.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.45 603.17 Td (\(3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 603.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 603.17 Td (\(31.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 603.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 588.17 Td (Income from continuing operations before income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 578.17 Td (taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 578.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.50 578.18 Td (60,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 578.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 578.17 Td (24,224) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 578.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.80 578.17 Td (36,610) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 578.17 Td (151.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 578.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 563.17 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 563.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.50 563.18 Td (111,718) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 563.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.15 563.17 Td (31,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 563.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.80 563.17 Td (80,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.80 563.17 Td (257.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 563.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 548.17 Td (Days sales outstanding in receivables) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 548.18 Td (53.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 548.17 Td (67.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.45 548.17 Td (\(13.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 548.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 548.17 Td (\(20.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 548.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 533.17 Td (Annualized first quarter inventory turns) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.50 533.18 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 533.17 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 533.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.30 533.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 533.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 518.17 Td (Capital spending as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 317.50 518.18 Td (3.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 518.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 518.17 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 518.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.45 518.17 Td (\(2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.30 518.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.45 518.17 Td (\(42.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.30 518.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 503.17 Td (Net income from continuing operations as a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 493.17 Td (percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 493.18 Td (10.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 493.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 493.17 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 493.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 493.17 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 493.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 493.17 Td (12.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 493.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 478.17 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 312.50 478.18 Td (29.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 330.00 478.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 478.17 Td (20.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 478.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.80 478.17 Td (8.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 478.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.80 478.17 Td (40.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 478.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 462.00 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 391.50 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 391.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 391.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 391.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 391.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 391.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 391.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 391.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 351.50 219.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 351.50 69.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 351.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 351.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 351.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 351.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 351.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 351.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 301.50 219.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 301.50 69.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 301.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 301.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 301.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 301.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 301.50 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 301.50 70.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 261.50 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 261.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 261.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 261.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 261.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 261.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 261.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 261.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 221.50 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 221.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 221.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 221.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 221.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 221.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 221.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 221.50 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 269.5 438.5 m 338.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 438.5 m 342.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 438.5 m 412.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 438.5 m 338.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 419.5 m 338.5 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 438.5 m 342.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 438.5 m 412.5 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 419.5 m 412.5 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 419.5 m 486.5 419.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 419.5 m 560.5 419.5 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 441.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.90 442.73 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 451.00 441.22 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 525.00 441.22 Td () Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 422.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.35 423.73 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.85 423.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.85 423.73 Td (Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.85 423.73 Td (%Change) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 409.22 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.70 411.58 Td (\(Dollarsinthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 396.17 Td (Net salesOEM Laser Sources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 396.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 396.18 Td (515,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 396.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.15 396.17 Td (325,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 396.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.75 396.17 Td (190,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 396.17 Td (58.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 396.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 381.17 Td (Net salesIndustrial Lasers & Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 381.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 381.18 Td (253,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 381.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 381.17 Td (64,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 381.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.75 381.17 Td (188,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.80 381.17 Td (293.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 381.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 366.17 Td (Gross profit as a percentage of net sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 356.17 Td (OEM Laser Sources) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.50 356.18 Td (53.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.00 356.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 356.17 Td (47.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 356.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.80 356.17 Td (5.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 356.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 356.17 Td (10.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 356.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 341.17 Td (Gross profit as a percentage of net salesIndustrial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 331.17 Td (Lasers & Systems) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.50 331.18 Td (19.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.00 331.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 331.17 Td (27.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 331.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.45 331.17 Td (\(7.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.30 331.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.45 331.17 Td (\(28.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.30 331.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 316.17 Td (Research and development as a percentage of net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 306.17 Td (sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.50 306.18 Td (7.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.00 306.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 306.17 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 306.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.45 306.17 Td (\(2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.30 306.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.45 306.17 Td (\(27.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.30 306.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 291.17 Td (Income from continuing operations before income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 281.17 Td (taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 281.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 281.18 Td (108,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 281.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 281.17 Td (51,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 281.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 281.17 Td (56,921) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.80 281.17 Td (111.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 281.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 266.17 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 266.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 295.50 266.18 Td (194,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.00 266.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.15 266.17 Td (45,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 266.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.75 266.17 Td (148,805) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.80 266.17 Td (326.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 266.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 251.17 Td (Capital spending as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.50 251.18 Td (3.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.00 251.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 251.17 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 251.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.45 251.17 Td (\(0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.30 251.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.45 251.17 Td (\(9.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.30 251.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 236.17 Td (Net income from continuing operations as a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 226.17 Td (percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 315.50 226.18 Td (9.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.00 226.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 226.17 Td (9.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 226.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.45 226.17 Td (\(0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.30 226.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.45 226.17 Td (\(3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.30 226.17 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 211.17 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.50 211.18 Td (28.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 328.00 211.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 211.17 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 211.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.80 211.17 Td (7.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 211.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.80 211.17 Td (37.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 211.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 183.00 Td (Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 171.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.00 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 422.36 159.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.13 159.00 Td ( quarter of fiscal 2017 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.00 Td (increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.25 147.00 Td (65.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.08 147.00 Td ( in our OLS segment and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.10 147.00 Td (343.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.93 147.00 Td ( in our ILS segment from the same quarter one year ago. Net sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.00 Td (for the first six months of fiscal 2017 increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.34 135.00 Td (58.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.17 135.00 Td ( in our OLS segment and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.19 135.00 Td (293.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.02 135.00 Td ( in our ILS segment from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.00 Td (same period one year ago. For both periods, the majority of the increase in the ILS segment was due to Rofin net sales since the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.00 Td (acquisition on November 7, 2016. For a description of the reasons for changes in net sales refer to the Results of Operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 99.00 Td (section of this quarterly report.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 75.00 Td (Gr) Tj ET Q q 0 0 0 rg BT 62.04 75.00 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 87.69 75.00 Td (ofit as a Per) Tj ET Q q 0 0 0 rg BT 138.32 75.00 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 63.00 Td () 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 (33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 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 50.00 730.10 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 255.21 730.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.98 730.10 Td ( quarter increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.83 730.10 Td (53.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.66 730.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.09 730.10 Td (48.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.92 730.10 Td ( in our OLS segment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.19 718.10 Td (21.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.02 718.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.46 718.10 Td (27.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.29 718.10 Td ( in our ILS segment from the same quarter one year ago. Gross profit percentage in the first six ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (months increased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.48 706.10 Td (53.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.31 706.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.75 706.10 Td (47.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.58 706.10 Td ( in our OLS segment and decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.54 706.10 Td (19.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.37 706.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.80 706.10 Td (27.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.63 706.10 Td ( in our ILS segment from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 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 50.00 682.10 Td (section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 658.10 Td (ch and Development as a Per) Tj ET Q q 0 0 0 rg BT 202.67 658.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 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 50.00 622.10 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 50.00 610.10 Td (managing our business as investing in new technologies is a key to future growth.R&D percentage decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.83 610.10 Td (7.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.66 610.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (10.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 598.10 Td ( in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.44 598.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.21 598.10 Td ( fiscal quarter and decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.81 598.10 Td (7.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.64 598.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.08 598.10 Td (10.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.91 598.10 Td ( for the first six months of fiscal 2017 compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 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 50.00 574.10 Td (section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (Net Cash Pr) Tj ET Q q 0 0 0 rg BT 102.03 550.10 Td (ovided by Operating ) Tj ET Q q 0 0 0 rg BT 191.77 550.10 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (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 50.00 514.10 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 50.00 502.10 Td (expenses and inventory purchases to run our business.) Tj ET Q q 0 0 0 rg BT 268.94 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 277.58 502.10 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 50.00 490.10 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 50.00 478.10 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 423.80 478.10 Td (Activities refer to the Liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (and Capital Resources section of this quarterly report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (Days Sales Outstanding in Receivables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 418.10 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 50.00 406.10 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 50.00 394.10 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 50.00 382.10 Td (capital availability) Tj ET Q q 0 0 0 rg BT 123.49 382.10 Td (.) Tj ET Q q 0 0 0 rg BT 128.31 382.10 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 50.00 370.10 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 50.00 358.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.77 358.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.07 358.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.07 358.10 Td ( decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.76 358.10 Td (53.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.26 358.10 Td ( days from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.53 358.10 Td (67.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.03 358.10 Td ( days compared to the same quarter one year ago primarily due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (to higher sales of ELA) Tj ET Q q 0 0 0 rg BT 139.98 346.10 Td ( tool used in the flat panel display market in ) Tj ET Q q 0 0 0 rg BT 317.72 346.10 Td (Asia and the timing of collections of those receivables, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (lower sales and receivables in Japan which typically has a higher DSO and improved collections of older receivables in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (U.S. and Europe partially of) Tj ET Q q 0 0 0 rg BT 162.57 322.10 Td (fset by the impact of the acquisition of Rofin, which has historically had higher DSOs than those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (previously reported by us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (Annualized Second Quarter) Tj ET Q q 0 0 0 rg BT 169.27 286.10 Td ( Inventory ) Tj ET Q q 0 0 0 rg BT 216.31 286.10 Td (T) Tj ET Q q 0 0 0 rg BT 222.06 286.10 Td (urns) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 262.10 Td (e calculate annualized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.41 262.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.18 262.10 Td ( quarter inventory turns as the cost of sales during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.07 262.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.84 262.10 Td ( quarter annualized and divided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (net inventories at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.57 250.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.34 250.10 Td ( quarter) Tj ET Q q 0 0 0 rg BT 236.60 250.10 Td (. ) Tj ET Q q 0 0 0 rg BT 241.42 250.10 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 50.00 238.10 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 501.47 238.10 Td (. ) Tj ET Q q 0 0 0 rg BT 506.29 238.10 Td (The more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (money we have tied up in inventory) Tj ET Q q 0 0 0 rg BT 193.20 226.10 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 50.00 214.10 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 415.74 214.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.51 214.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.81 214.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.81 214.10 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (equivalent to the same quarter a year ago at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.31 202.10 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.81 202.10 Td ( turns. Improvements in the turns due to higher shipments of lar) Tj ET Q q 0 0 0 rg BT 493.58 202.10 Td (ge ELA) Tj ET Q q 0 0 0 rg BT 524.41 202.10 Td ( tools ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (used in the flat panel display market were of) Tj ET Q q 0 0 0 rg BT 227.53 190.10 Td (fset by the impact of the acquisition of Rofin in the first quarter of fiscal 2017 due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (to Rofin's historically lower inventory turns rate.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (Capital Spending as a Per) Tj ET Q q 0 0 0 rg BT 160.39 154.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 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 50.00 118.10 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 50.00 106.10 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 94.10 Td (assists us in measuring our cash flows, net of capital expenditures. Our capital spending percentage decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 94.10 Td (3.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.63 94.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (second quarter of fiscal 2017 from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.51 82.10 Td (5.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.34 82.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.71 82.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.48 82.10 Td ( quarter of fiscal 2016, and decreased to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.92 82.10 Td (3.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.75 82.10 Td ( for the first six months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (fiscal 2017 from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.59 70.10 Td (4.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.42 70.10 Td ( for the first six months of fiscal 2016, primarily due to the impact of higher revenues in the second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (quarter and first six months of fiscal 2017 partially of) Tj ET Q q 0 0 0 rg BT 263.94 58.10 Td (fset by investments to expand our manufacturing capacity in Gttingen, ) 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 (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Germany) Tj ET Q q 0 0 0 rg BT 86.56 742.10 Td (, the acquisition of Rofin in the first quarter of fiscal 2017, the upgrade of certain of our production facilities in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (California and higher purchases of production-related assets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 129.19 706.10 Td ( as a Per) Tj ET Q q 0 0 0 rg BT 165.39 706.10 Td (centage of Net Sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 682.10 Td (e define adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 165.00 682.10 Td ( as operating income adjusted for depreciation, amortization, stock compensation expenses, major ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 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 50.00 658.10 Td (Key initiatives to reach our goals for EBITDA) Tj ET Q q 0 0 0 rg BT 235.23 658.10 Td ( improvements include utilization of our ) Tj ET Q q 0 0 0 rg BT 398.53 658.10 Td (Asian manufacturing locations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 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 50.00 622.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 622.10 Td (e utilize a number of dif) Tj ET Q q 0 0 0 rg BT 154.81 622.10 Td (ferent financial measures, both GAAP) Tj ET Q q 0 0 0 rg BT 307.45 622.10 Td ( and non-GAAP) Tj ET Q q 0 0 0 rg BT 371.33 622.10 Td (, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 479.93 622.10 Td ( as a percentage of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 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 50.00 598.10 Td (planning future periods. ) Tj ET Q q 0 0 0 rg BT 148.13 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 156.77 598.10 Td (e consider the use of non-GAAP) Tj ET Q q 0 0 0 rg BT 286.65 598.10 Td ( financial measures helpful in assessing our current financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (performance and ongoing operations. ) Tj ET Q q 0 0 0 rg BT 201.71 586.10 Td (While we use non-GAAP) Tj ET Q q 0 0 0 rg BT 303.82 586.10 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 50.00 574.10 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 453.06 574.10 Td (, or superior to, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (information provided by GAAP) Tj ET Q q 0 0 0 rg BT 177.11 562.10 Td ( financial measures. ) Tj ET Q q 0 0 0 rg BT 259.12 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 267.76 562.10 Td (e provide adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 379.68 562.10 Td ( in order to enhance investors' understanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (of our ongoing operations. ) Tj ET Q q 0 0 0 rg BT 158.41 550.10 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 50.00 528.10 Td (Below is the reconciliation of our net income from continuing operations as a percentage of net sales to our adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 553.75 528.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 516.10 Td (as a percentage of net sales:) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 459.60 200.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 459.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 459.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 459.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 459.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 459.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 459.60 4.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 459.60 60.00 -25.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 419.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 419.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 419.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 419.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 419.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 419.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 419.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 419.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 390.60 200.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 390.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 390.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 390.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 390.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 390.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 390.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 390.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 361.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 361.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 361.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 361.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 361.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 361.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 331.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 250.50 331.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 310.50 331.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 314.50 331.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 374.50 331.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 378.50 331.60 60.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.50 331.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 442.50 331.60 60.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 480.6 m 310.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 480.6 m 314.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 480.6 m 374.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 480.6 m 378.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 480.6 m 438.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 480.6 m 442.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 480.6 m 502.5 480.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 459.6 m 310.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 459.6 m 374.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 459.6 m 378.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 459.6 m 438.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 459.6 m 502.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 459.6 m 438.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 459.6 m 502.5 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 316.6 m 438.5 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 316.6 m 502.5 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 316.6 m 310.5 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 295.6 m 310.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250.5 293.6 m 310.5 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 316.6 m 374.5 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 295.6 m 374.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314.5 293.6 m 374.5 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 316.6 m 438.5 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 295.6 m 438.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 293.6 m 438.5 293.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 316.6 m 502.5 316.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 295.6 m 502.5 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 293.6 m 502.5 293.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 150.00 483.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.60 484.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.40 484.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 53.00 462.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 266.85 471.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.00 463.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.85 471.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.00 463.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 394.85 471.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.00 463.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.85 471.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 463.83 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 449.27 Td (Net income from continuing operations as a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 439.27 Td (percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.50 439.28 Td (10.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 439.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 439.27 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 439.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 439.28 Td (9.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 439.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 439.27 Td (9.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 439.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 424.27 Td (Income tax expense) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 424.28 Td (4.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 424.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 424.27 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 424.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 424.28 Td (4.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 424.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 424.27 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 424.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 409.27 Td (Interest and other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 409.28 Td (2.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 409.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 409.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 409.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 409.28 Td (0.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 409.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 409.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 409.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 395.17 Td (Depreciation and amortization) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 395.28 Td (6.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 395.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 395.17 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 395.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 395.28 Td (6.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 395.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 395.17 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 395.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 381.17 Td (Restructuring charges) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 381.28 Td (0.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 381.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 381.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 381.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 381.28 Td (1.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 381.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 381.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 381.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 366.27 Td (Purchase accounting step up) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 366.28 Td (3.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 366.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 366.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 366.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 366.28 Td (2.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 366.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 366.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 366.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 351.27 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 290.00 351.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 351.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 351.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 351.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 408.80 351.33 Td (\(0.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 424.65 351.28 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 351.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 351.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 336.27 Td (Costs related to acquisition of Rofin) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 336.28 Td (0.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 336.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 336.27 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 336.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 336.28 Td (2.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 336.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 336.27 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 336.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 321.27 Td (Stock-based compensation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.50 321.28 Td (1.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 321.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 321.27 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 321.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 412.15 321.28 Td (2.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 321.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 321.27 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 321.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 299.27 Td (Adjusted EBITDA as a percentage of net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 282.50 299.28 Td (29.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.00 299.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 299.27 Td (20.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 299.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.15 299.28 Td (28.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 428.00 299.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 299.27 Td (21.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 299.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 257.53505859375 m 159.013671875 257.53505859375 l s q 0 0 0 rg BT 50.00 259.10 Td (SIGNIFICANT) Tj ET Q q 0 0 0 rg BT 116.50 259.10 Td ( EVENTS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 242.10 Td (Acquisition and r) Tj ET Q q 0 0 0 rg BT 124.28 242.10 Td (elated financing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 225.10 Td (On November7, 2016, we completed our previously announced acquisition of Rofin pursuant to the Mer) Tj ET Q q 0 0 0 rg BT 470.00 225.10 Td (ger ) Tj ET Q q 0 0 0 rg BT 484.72 225.10 Td (Agreement dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 213.10 Td (March 16, 2016. Rofin is one of the world's leading developers and manufacturers of high-performance industrial laser sources ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 201.10 Td (and laser) Tj ET Q q 0 0 0 rg BT 85.62 201.10 Td (-based solutions and components. ) Tj ET Q q 0 0 0 rg BT 222.54 201.10 Td (As a condition of the acquisition, we are required to divest ourselves of Rofin) Tj ET Q q 0 0 0 rg BT 535.80 201.10 Td (s low ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 189.10 Td (power CO2 laser business based in Hull, United Kingdom, and will report this business separately as a discontinued operation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 177.10 Td (until it is divested. ) Tj ET Q q 0 0 0 rg BT 126.21 177.10 Td (The acquisition was an all-cash transaction at a price of $32.50 per share of Rofin common stock. ) Tj ET Q q 0 0 0 rg BT 518.96 177.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 165.10 Td (aggregate consideration paid by us to the former Rofin stockholders was approximately $904.5 million, excluding related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 153.10 Td (transaction fees and expenses. ) Tj ET Q q 0 0 0 rg BT 172.83 153.10 Td (W) Tj ET Q q 0 0 0 rg BT 181.46 153.10 Td (e also paid $15.3 million due to the cancellation of options held by employees of Rofin. ) Tj ET Q q 0 0 0 rg BT 534.55 153.10 Td (W) Tj ET Q q 0 0 0 rg BT 543.18 153.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 141.10 Td (funded the payment of the aggregate consideration with a combination of our available cash on hand and the proceeds from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 129.10 Td (Euro ) Tj ET Q q 0 0 0 rg BT 71.76 129.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.17 129.10 Td (erm Loan described below) Tj ET Q q 0 0 0 rg BT 182.87 129.10 Td (. See Note 3. Business Combinations in the Notes to Condensed Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 117.10 Td (Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 93.10 Td (On November7, 2016, we entered into a Credit ) Tj ET Q q 0 0 0 rg BT 242.45 93.10 Td (Agreement \(the Credit ) Tj ET Q q 0 0 0 rg BT 338.80 93.10 Td (Agreement\) with Barclays Bank PLC \("Barclays"\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 81.10 Td (Bank of ) Tj ET Q q 0 0 0 rg BT 83.89 81.10 Td (America, N.A. \("BAML"\) and MUFG Union Bank, N.A. \("MUFG"\). ) Tj ET Q q 0 0 0 rg BT 363.90 81.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 408.89 81.10 Td (Agreement provided for a 670.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 69.10 Td (million Euro senior secured term loan facility \(the Euro ) Tj ET Q q 0 0 0 rg BT 278.91 69.10 Td (T) Tj ET Q q 0 0 0 rg BT 284.32 69.10 Td (erm Loan\) and a $100.0 million senior secured revolving credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 57.10 Td (facility) Tj ET Q q 0 0 0 rg BT 77.67 57.10 Td (. On November7, 2016, the Euro ) Tj ET Q q 0 0 0 rg BT 213.57 57.10 Td (T) Tj ET Q q 0 0 0 rg BT 218.98 57.10 Td (erm Loan was drawn in full and its proceeds were used to finance the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 45.10 Td (Rofin and pay related fees and expenses. ) Tj ET Q q 0 0 0 rg BT 214.94 45.10 Td (Also, on November7, 2016, we used 10.0 million Euro of the capacity under the ) 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 (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (revolving credit facility for the issuance of a letter of credit. See Note 9. Borrowings in the Notes to Condensed Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Financial Statements. Refer Note 19 "Subsequent Events" for discussion of ) Tj ET Q q 0 0 0 rg BT 355.34 730.10 Td (Amendment No. 1 and ) Tj ET Q q 0 0 0 rg BT 448.75 730.10 Td (W) Tj ET Q q 0 0 0 rg BT 457.39 730.10 Td (aiver to the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (Agreement entered into on May 8, 2017.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (In relation to the acquisition of Rofin, we paid Barclays, our financial advisor) Tj ET Q q 0 0 0 rg BT 360.07 694.10 Td (, a fee of approximately $9.5 million, $1.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (of which was paid upon delivery of the fairness opinion in the second quarter of fiscal 2016, and the remaining portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (which was paid upon consummation of the acquisition in the first quarter of fiscal 2017; these fees were recorded in selling, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (general and administrative expense in our consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 374.44 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 383.08 658.10 Td (e also paid Barclays, BAML) Tj ET Q q 0 0 0 rg BT 496.85 658.10 Td ( and MUFG ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (together approximately $17.0 million and $5.6 million for underwriting and upfront fees, respectively) Tj ET Q q 0 0 0 rg BT 456.20 646.10 Td (, upon the close of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (financing on November 7, 2016; these fees are recorded as debt issuance costs on our consolidated balance sheets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (As a result of the acquisition of Rofin in the first quarter of fiscal 2017, we reor) Tj ET Q q 0 0 0 rg BT 367.79 610.10 Td (ganized into two new reporting segments for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (combined company based upon our or) Tj ET Q q 0 0 0 rg BT 202.84 598.10 Td (ganizational structure and how our Chief Operating Decision Maker receives and utilizes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (information provided to allocate resources and make decisions: OLS and ILS. ) Tj ET Q q 0 0 0 rg BT 363.62 586.10 Td (This segmentation reflects the go-to-market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (strategies and syner) Tj ET Q q 0 0 0 rg BT 128.68 574.10 Td (gies for our broad portfolio of laser technologies and products. ) Tj ET Q q 0 0 0 rg BT 381.49 574.10 Td (While both segments deliver cost-ef) Tj ET Q q 0 0 0 rg BT 525.71 574.10 Td (fective, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (highly reliable photonics solutions, the OLS business segment, is focused on high performance laser sources and complex ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (optical sub-systems, typically used in microelectronics manufacturing, medical diagnostics and therapeutic medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (applications, as well as in scientific research. Our ILS business segment delivers high performance laser sources, sub-systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (and tools primarily used for industrial laser materials processing, serving important end markets like automotive, machine tool, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (consumer goods and medical device manufacturing.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 488.53505859375 m 178.5546875 488.53505859375 l s q 0 0 0 rg BT 50.00 490.10 Td (RESUL) Tj ET Q q 0 0 0 rg BT 82.43 490.10 Td (TS OF) Tj ET Q q 0 0 0 rg BT 110.67 490.10 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 147.43 490.10 Td (TIONS) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 109.82 466.10 Td (TED SUMMAR) Tj ET Q q 0 0 0 rg BT 178.64 466.10 Td (Y) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (The 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 50.00 430.10 Td (in our condensed consolidated statements of operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 167.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 385.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 385.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 385.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 385.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 385.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 385.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 385.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 385.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 355.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 355.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 355.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 355.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 355.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 355.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 355.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 355.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 326.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 326.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 326.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 326.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 326.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 326.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 326.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 326.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 296.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 296.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 296.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 296.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 296.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 296.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 296.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 296.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 266.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 266.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 266.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 266.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 266.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 266.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 266.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 266.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 236.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 236.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 236.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 236.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 236.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 236.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 236.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 236.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 196.60 200.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 253.00 196.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 311.00 196.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 315.00 196.60 57.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 372.00 196.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 376.00 196.60 58.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 434.00 196.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 438.00 196.60 58.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 406.6 m 311 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 311 406.6 m 315 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 406.6 m 372 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 406.6 m 434 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 406.6 m 438 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 406.6 m 496 406.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 385.6 m 311 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 385.6 m 372 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 385.6 m 376 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 385.6 m 434 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 385.6 m 496 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 385.6 m 311 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 385.6 m 372 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 385.6 m 376 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 385.6 m 434 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 385.6 m 438 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 385.6 m 496 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 355.6 m 311 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 355.6 m 372 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 355.6 m 376 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 355.6 m 434 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 355.6 m 438 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 355.6 m 496 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 266.6 m 311 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 266.6 m 372 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 266.6 m 376 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 266.6 m 434 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 266.6 m 438 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 266.6 m 496 266.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 251.60000000000002 m 311 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 251.60000000000002 m 372 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 251.60000000000002 m 376 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 251.60000000000002 m 434 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 251.60000000000002 m 438 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 251.60000000000002 m 496 251.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 221.60000000000002 m 311 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 221.60000000000002 m 372 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 221.60000000000002 m 376 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 221.60000000000002 m 434 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 221.60000000000002 m 438 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 221.60000000000002 m 496 221.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 181.60000000000002 m 311 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 181.60000000000002 m 372 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 181.60000000000002 m 376 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 181.60000000000002 m 434 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 181.60000000000002 m 438 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 181.60000000000002 m 496 181.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 167.60000000000002 m 311 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 165.60000000000002 m 311 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 167.60000000000002 m 372 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 165.60000000000002 m 372 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 167.60000000000002 m 376 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 165.60000000000002 m 376 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 167.60000000000002 m 434 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 165.60000000000002 m 434 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 167.60000000000002 m 438 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 165.60000000000002 m 438 165.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 167.60000000000002 m 496 167.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 165.60000000000002 m 496 165.60000000000002 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 152.50 409.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 275.60 410.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.90 410.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 388.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 268.35 397.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 273.50 389.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.85 397.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.00 389.83 Td (2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.35 397.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 389.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 453.35 397.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.50 389.83 Td (2016) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 375.28 Td (Net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.65 375.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 375.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.25 375.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 375.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 375.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 375.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.25 375.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 375.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 360.28 Td (Cost of sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 360.28 Td (57.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 360.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 360.27 Td (55.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 360.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 360.28 Td (58.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 360.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 360.27 Td (55.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 360.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 345.28 Td (Gross profit) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 345.28 Td (42.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 345.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 345.27 Td (44.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 345.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 345.28 Td (41.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 345.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 345.27 Td (44.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 345.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 331.28 Td (Operating expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 316.27 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.65 316.28 Td (7.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 316.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 316.27 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 316.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.65 316.28 Td (7.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 316.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 316.27 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 316.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 301.27 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 301.28 Td (17.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 301.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 301.27 Td (20.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 301.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 301.28 Td (19.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 301.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 301.27 Td (19.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 301.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 286.27 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.15 286.28 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 286.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.80 286.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 286.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 286.33 Td (\(0.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 286.28 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.80 286.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 286.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 271.27 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.65 271.28 Td (1.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 271.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.30 271.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 271.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.65 271.28 Td (1.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 271.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 271.27 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 271.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 256.27 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 256.28 Td (25.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 256.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 256.27 Td (31.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 256.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 256.28 Td (27.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 256.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 256.27 Td (30.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 256.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 241.28 Td (Income from operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 241.28 Td (16.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 241.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 241.27 Td (13.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 241.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 241.28 Td (14.8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 241.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 241.27 Td (13.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 241.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 226.28 Td (Other income \(expense\), net) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 281.30 226.28 Td (\(2.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 297.15 226.28 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.95 226.27 Td (\(0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.80 226.27 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.30 226.33 Td (\(0.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 420.15 226.28 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.95 226.27 Td (\(0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 226.27 Td (\)%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 211.28 Td (Income from continuing operations before) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 201.28 Td (income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 201.28 Td (14.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 201.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.25 201.27 Td (12.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 201.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.65 201.28 Td (14.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 201.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.25 201.27 Td (13.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 201.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 186.27 Td (Provision for income taxes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 284.65 186.28 Td (4.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 186.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.30 186.27 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 186.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.65 186.28 Td (4.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 186.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 186.27 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 186.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 55.50 171.28 Td (Net income from continuing operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 279.65 171.28 Td (10.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 300.50 171.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.30 171.27 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 171.27 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 407.65 171.28 Td (9.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 423.50 171.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 171.27 Td (9.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 171.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 143.10 Td (Net income from continuing operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.12 143.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.88 143.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.19 143.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.19 143.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.74 143.10 Td ($42.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.63 143.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.46 143.10 Td ($1.70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.96 143.10 Td ( per diluted share\)) 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 530.43 143.10 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 50.00 131.10 Td (including $12.6 million after) Tj ET Q q 0 0 0 rg BT 164.78 131.10 Td (-tax amortization of intangible assets, $9.4 million after) Tj ET Q q 0 0 0 rg BT 387.02 131.10 Td (-tax amortization of purchase accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 119.10 Td (inventory step up, $4.9 million of after) Tj ET Q q 0 0 0 rg BT 204.77 119.10 Td (-tax stock-based compensation expense, $2.7 million of after tax costs related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 107.10 Td (acquisition of Rofin and $0.4 million of after) Tj ET Q q 0 0 0 rg BT 229.77 107.10 Td (-tax restructuring costs. Net income from continuing operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.52 107.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.29 107.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 95.10 Td (quarter of fiscal 2016 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.35 95.10 Td ($17.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.24 95.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.07 95.10 Td ($0.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.57 95.10 Td ( per diluted share\) including $3.9 million of after) Tj ET Q q 0 0 0 rg BT 434.16 95.10 Td (-tax stock-based compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 83.10 Td (expense, $1.4 million after) Tj ET Q q 0 0 0 rg BT 156.71 83.10 Td (-tax amortization of intangible assets and $2.3 million of after tax costs related to our acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 71.10 Td (Rofin. Net income from continuing operations for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.61 71.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.61 71.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.16 71.10 Td ($72.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.05 71.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.88 71.10 Td ($2.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.38 71.10 Td ( per diluted share\)) 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 561.85 71.10 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 59.10 Td (including $20.3 million after) Tj ET Q q 0 0 0 rg BT 164.78 59.10 Td (-tax amortization of intangible assets, $17.2 million of after tax costs related to our acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 47.10 Td (Rofin, $15.9 million after) Tj ET Q q 0 0 0 rg BT 152.29 47.10 Td (-tax amortization of purchase accounting inventory step up, $13.0 million of after) Tj ET Q q 0 0 0 rg BT 478.38 47.10 Td (-tax stock-based ) 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 (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (compensation expense, $5.0 million of after) Tj ET Q q 0 0 0 rg BT 225.59 742.10 Td (-tax restructuring costs, $1.8 million after) Tj ET Q q 0 0 0 rg BT 391.73 742.10 Td (-tax interest expense on the commitment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (of our term loan to finance the acquisition of Rofin, a $3.4 million after) Tj ET Q q 0 0 0 rg BT 335.56 730.10 Td (-tax gain on our sale of owned Rofin shares and $7.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (million after) Tj ET Q q 0 0 0 rg BT 99.51 718.10 Td (-tax foreign exchange gain on forward contracts associated with our foreign exchange risk related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (commitment of our Euro ) Tj ET Q q 0 0 0 rg BT 151.46 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 156.88 706.10 Td (erm Loan and the issuance of the Euro ) Tj ET Q q 0 0 0 rg BT 313.31 706.10 Td (T) Tj ET Q q 0 0 0 rg BT 318.72 706.10 Td (erm Loan to finance the acquisition of Rofin. Net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (for the first six months of fiscal 2016 was $38.1 million \($1.57 per diluted share\) including $7.3 million of after) Tj ET Q q 0 0 0 rg BT 496.94 694.10 Td (-tax stock-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (based compensation expense, $2.9 million after) Tj ET Q q 0 0 0 rg BT 240.02 682.10 Td (-tax amortization of intangible assets, $2.3 million of after) Tj ET Q q 0 0 0 rg BT 473.10 682.10 Td (-tax costs related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (the acquisition of Rofin and a benefit of $1.2 million related to the renewal of the federal research and development tax credits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (for fiscal 2015. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (NET) Tj ET Q q 0 0 0 rg BT 70.38 634.10 Td ( SALES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (Market ) Tj ET Q q 0 0 0 rg BT 84.16 610.10 Td (Application) 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 (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 50.00 574.10 Td (by market application \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 494.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 464.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 464.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 464.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 464.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 464.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 434.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 434.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 434.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 434.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 434.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 434.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 434.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 434.60 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 270.5 550.6 m 340.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 550.6 m 344.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 550.6 m 414.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 550.6 m 418.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 550.6 m 488.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 550.6 m 492.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 550.6 m 562.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 550.6 m 340.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 537.6 m 340.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 550.6 m 344.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 537.6 m 344.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 550.6 m 414.5 550.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 537.6 m 414.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 537.6 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 488.5 537.6 m 492.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 537.6 m 562.5 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 508.6 m 340.5 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 508.6 m 414.5 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 508.6 m 488.5 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 508.6 m 562.5 508.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 434.6 m 340.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 434.6 m 414.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 434.6 m 488.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 434.6 m 562.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 434.6 m 340.5 434.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 420.6 m 340.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 418.6 m 340.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 420.6 m 414.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 418.6 m 414.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 420.6 m 488.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 418.6 m 488.5 418.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 420.6 m 562.5 420.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 418.6 m 562.5 418.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 554.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.85 541.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.85 541.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 512.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.15 528.83 Td (Per) Tj ET Q q 0 0 0 rg BT 371.99 528.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 520.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.65 512.83 Td ( net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 512.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 528.83 Td (Per) Tj ET Q q 0 0 0 rg BT 519.99 528.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.85 520.83 Td ( of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.65 512.83 Td ( net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 499.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 484.27 Td (Microelectronics) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 484.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 484.28 Td (210,882) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 484.28 Td (49.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 484.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 484.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 484.27 Td (97,724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 484.27 Td (48.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 484.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 469.27 Td (OEM components and instrumentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 469.28 Td (55,017) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 469.28 Td (13.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 469.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 469.27 Td (41,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 469.27 Td (20.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 469.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 454.27 Td (Materials processing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 454.28 Td (127,531) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 454.28 Td (30.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 454.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 454.27 Td (28,024) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 454.27 Td (14.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 454.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 439.27 Td (Scientific and government programs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 439.28 Td (29,403) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 391.50 439.28 Td (6.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 439.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 439.27 Td (32,334) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 439.27 Td (16.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 439.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 424.27 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 424.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 424.28 Td (422,833) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 424.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 424.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 424.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 424.27 Td (199,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 424.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 424.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 328.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 328.60 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 328.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 328.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 328.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 328.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 328.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 328.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 298.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 298.60 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 298.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 298.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 298.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 298.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 298.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 298.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 268.60 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 268.60 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 268.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 268.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 268.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 268.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 268.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 268.60 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 269.5 384.6 m 338.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 384.6 m 342.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 384.6 m 412.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 384.6 m 416.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 384.6 m 486.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 384.6 m 490.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 384.6 m 560.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 384.6 m 338.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 371.6 m 338.5 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 384.6 m 342.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 371.6 m 342.5 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 384.6 m 412.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 371.6 m 412.5 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 384.6 m 416.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 384.6 m 486.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 371.6 m 486.5 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 384.6 m 490.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 371.6 m 490.5 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 384.6 m 560.5 384.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 371.6 m 560.5 371.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 342.6 m 338.5 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 342.6 m 412.5 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 342.6 m 486.5 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 342.6 m 560.5 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 268.6 m 338.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 268.6 m 412.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 268.6 m 486.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 268.6 m 560.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 268.6 m 338.5 268.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 254.60000000000002 m 338.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 252.60000000000002 m 338.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 254.60000000000002 m 412.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 252.60000000000002 m 412.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 254.60000000000002 m 486.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 252.60000000000002 m 486.5 252.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 254.60000000000002 m 560.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 252.60000000000002 m 560.5 252.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.90 388.83 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.35 375.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.85 375.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.45 346.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.15 362.83 Td (Per) Tj ET Q q 0 0 0 rg BT 369.99 362.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.85 354.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.65 346.83 Td ( net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.95 346.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.15 362.83 Td (Per) Tj ET Q q 0 0 0 rg BT 517.99 362.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 354.83 Td ( of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.65 346.83 Td ( net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 333.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 318.27 Td (Microelectronics) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 318.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 318.28 Td (386,656) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 318.28 Td (50.3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 318.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 318.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 318.27 Td (194,230) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 318.27 Td (49.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 318.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 303.27 Td (OEM components and instrumentation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 303.28 Td (101,589) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 303.28 Td (13.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 303.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 303.27 Td (81,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 303.27 Td (20.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 303.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 288.27 Td (Materials processing) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 288.28 Td (222,174) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 288.28 Td (28.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 288.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 288.27 Td (51,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 288.27 Td (13.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 288.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 273.27 Td (Scientific and government programs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 307.15 273.28 Td (58,487) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 389.50 273.28 Td (7.6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 273.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 273.27 Td (63,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 273.27 Td (16.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 273.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 258.27 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 258.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 258.28 Td (768,906) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.50 258.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 258.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 258.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 258.27 Td (390,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 258.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 258.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 230.10 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 206.10 Td (Net sales in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.87 206.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.64 206.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.94 206.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.94 206.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.38 206.10 Td ($1) Tj ET Q q 0 0 0 rg BT 279.00 206.10 Td (10.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.90 206.10 Td ( of Rofin net sales, primarily in the materials processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 194.10 Td (market. Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.52 194.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.29 194.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.59 194.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.59 194.10 Td ( increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.84 194.10 Td ($223.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.73 194.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.56 194.10 Td (1) Tj ET Q q 0 0 0 rg BT 401.19 194.10 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.52 194.10 Td (, compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.44 194.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.21 194.10 Td ( quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 182.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 182.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 182.10 Td (, with significant increases in the microelectronics and materials processing markets, a smaller increase in the OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 170.10 Td (components and instrumentation market and a decrease in the scientific and government programs market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 146.10 Td (The increase in the microelectronics market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.53 146.10 Td ($1) Tj ET Q q 0 0 0 rg BT 248.15 146.10 Td (13.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.05 146.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.88 146.10 Td (1) Tj ET Q q 0 0 0 rg BT 317.50 146.10 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.83 146.10 Td (, was primarily due to higher shipments related to ELA) Tj ET Q q 0 0 0 rg BT 555.79 146.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 134.10 Td (tools used in the flat panel display market and higher shipments related to advanced packaging applications partially of) Tj ET Q q 0 0 0 rg BT 526.06 134.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 122.10 Td (lower shipments for micro materials processing applications. ) Tj ET Q q 0 0 0 rg BT 295.87 122.10 Td (W) Tj ET Q q 0 0 0 rg BT 304.51 122.10 Td (e expect continued growth in the microelectronics market with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 110.10 Td (flat panel display demand at the high end of our model, continued growth in the semiconductor capital equipment market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 98.10 Td (through the remainder of calendar 2017 and continued recovery in the advanced packaging market. Sales in the materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 86.10 Td (processing market increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.79 86.10 Td ($99.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.68 86.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.51 86.10 Td (355%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.84 86.10 Td (, primarily due to Rofin net sales and higher shipments for marking, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 74.10 Td (engraving, automotive and other materials processing applications. Based on strong materials processing orders received in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 62.10 Td (second quarter of fiscal 2017, we expect continued growth in multiple materials processing applications including automotive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 50.10 Td (and machine tooling, medical device manufacturing, consumer goods manufacturing for packaging, converting and marking ) 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 (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (and additive manufacturing; we also expect continued steady progress in high power fiber lasers. ) Tj ET Q q 0 0 0 rg BT 439.98 742.10 Td (The increase in the OEM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (components and instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.13 730.10 Td ($13.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.02 730.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.85 730.10 Td (32%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.18 730.10 Td (, was due primarily to higher shipments for military) Tj ET Q q 0 0 0 rg BT 518.43 730.10 Td (, medical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (and bio-instrumentation applications, with much of the increase in military and medical applications due to the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Rofin. In OEM Components and instrumentation applications, we are seeing record demand from instrumentation customers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (cytometry) Tj ET Q q 0 0 0 rg BT 89.89 694.10 Td (, higher demand for medical aesthetic and sur) Tj ET Q q 0 0 0 rg BT 271.87 694.10 Td (gical applications, and several near) Tj ET Q q 0 0 0 rg BT 411.88 694.10 Td (-term opportunities, including lar) Tj ET Q q 0 0 0 rg BT 544.45 694.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (format optics for ground-based astronomy) Tj ET Q q 0 0 0 rg BT 218.20 682.10 Td (, semiconductor lasers in aesthetic sur) Tj ET Q q 0 0 0 rg BT 369.64 682.10 Td (gery and fiber) Tj ET Q q 0 0 0 rg BT 425.32 682.10 Td (, and diodes and fiber lasers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (aerospace and defense. Sales in the scientific and government programs market decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.79 670.10 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.68 670.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.51 670.10 Td (9.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.34 670.10 Td (, due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (demand for advanced research applications used by university and government research groups, particularly in the U.S. ) Tj ET Q q 0 0 0 rg BT 529.94 658.10 Td (W) Tj ET Q q 0 0 0 rg BT 538.57 658.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (expect demand in the scientific and government programs market to continue to fluctuate from quarter to quarter) Tj ET Q q 0 0 0 rg BT 500.40 646.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 622.10 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 622.10 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (Net sales in the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.58 598.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.58 598.10 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.02 598.10 Td ($185.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.91 598.10 Td ( of Rofin net sales since the acquisition on November 7, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (2016, primarily in the materials processing market. Net sales for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.36 586.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.36 586.10 Td ( increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.61 586.10 Td ($378.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.50 586.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 574.10 Td (97.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.66 574.10 Td (, compared to the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.29 574.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.29 574.10 Td (, with significant increases in the microelectronics and materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (processing markets, a smaller increase in the OEM components and instrumentation market and a decrease in the scientific and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (government programs market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (The increase in the microelectronics market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.53 526.10 Td ($192.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.42 526.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.25 526.10 Td (99.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.08 526.10 Td (, was primarily due to higher shipments related to ELA) Tj ET Q q 0 0 0 rg BT 559.03 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (tools used in the flat panel display market and higher shipments related to advanced packaging and semiconductor applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 502.10 Td (fset by lower shipments for micro materials processing applications. Sales in the material processing market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.25 490.10 Td ($171.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.15 490.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.98 490.10 Td (335.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.81 490.10 Td (, primarily due to Rofin net sales and higher shipments for automotive and other materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (processing applications. ) Tj ET Q q 0 0 0 rg BT 148.41 478.10 Td (The increase in the OEM components and instrumentation market of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.55 478.10 Td ($20.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.44 478.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.27 478.10 Td (25.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.10 478.10 Td (, was due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (primarily to higher shipments for military) Tj ET Q q 0 0 0 rg BT 216.26 466.10 Td (, medical and bio-instrumentation applications, with much of the increase in military ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (and medical applications due to the acquisition of Rofin. Sales in the scientific and government programs market decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td ($5.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 442.10 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 442.10 Td (8.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 442.10 Td (, primarily due to lower demand for advanced research applications used by university and government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (research groups in the U.S. and Europe. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 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 50.00 394.10 Td (fluctuated and are in the future expected to fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 311.34 394.10 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 50.00 382.10 Td (manufacture these products and/or availability of critical component parts and supplies.) Tj ET Q q 0 0 0 rg BT 402.11 382.10 Td (As a result, the timing to convert orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (for these products to net sales will likely fluctuate from quarter) Tj ET Q q 0 0 0 rg BT 301.94 370.10 Td (-to-quarter) Tj ET Q q 0 0 0 rg BT 344.15 370.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (Segments ) 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 are or) Tj ET Q q 0 0 0 rg BT 88.43 322.10 Td (ganized into two reportable operating segments: OLS and ILS. ) Tj ET Q q 0 0 0 rg BT 341.52 322.10 Td (While both segments deliver cost-ef) Tj ET Q q 0 0 0 rg BT 485.74 322.10 Td (fective, highly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (reliable photonics solutions, OLS is focused on high performance laser sources and complex optical sub-systems, typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (used in microelectronics manufacturing, medical diagnostics and therapeutic medical applications, as well as in scientific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (research. ILS delivers high performance laser sources, sub-systems and tools primarily used for industrial laser materials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (processing, serving important end markets like automotive, machine tool, consumer goods and medical device manufacturing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 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 50.00 250.10 Td (by segment \(dollars in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 170.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 170.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 170.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 170.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 170.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 170.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 170.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 170.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 140.60 220.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 270.50 140.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 340.50 140.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 344.50 140.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 414.50 140.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 418.50 140.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 488.50 140.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 492.50 140.60 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 270.5 226.60000000000002 m 340.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 226.60000000000002 m 344.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 226.60000000000002 m 414.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414.5 226.60000000000002 m 418.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 226.60000000000002 m 488.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 226.60000000000002 m 492.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 226.60000000000002 m 562.5 226.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 213.60000000000002 m 340.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 340.5 213.60000000000002 m 344.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 213.60000000000002 m 414.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 213.60000000000002 m 488.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 488.5 213.60000000000002 m 492.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 213.60000000000002 m 562.5 213.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 184.60000000000002 m 340.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 184.60000000000002 m 414.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 184.60000000000002 m 488.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 184.60000000000002 m 562.5 184.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 140.60000000000002 m 340.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 140.60000000000002 m 488.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 140.60000000000002 m 340.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 126.60000000000002 m 340.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 124.60000000000002 m 340.5 124.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 140.60000000000002 m 414.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 126.60000000000002 m 414.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 124.60000000000002 m 414.5 124.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 140.60000000000002 m 488.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 126.60000000000002 m 488.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418.5 124.60000000000002 m 488.5 124.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 140.60000000000002 m 562.5 140.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 126.60000000000002 m 562.5 126.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 492.5 124.60000000000002 m 562.5 124.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.60 230.83 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.85 217.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.85 217.83 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.95 188.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.15 204.83 Td (Per) Tj ET Q q 0 0 0 rg BT 371.99 204.83 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.85 196.83 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.65 188.83 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.95 188.83 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.15 204.83 Td (Per) Tj ET Q q 0 0 0 rg BT 519.99 204.83 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.85 196.83 Td (of total ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.65 188.83 Td (net sales) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 53.00 175.28 Td (Consolidated:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 160.27 Td (OEM Laser Sources \(OLS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 160.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 160.28 Td (277,144) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 160.28 Td (65.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 160.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 160.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 160.27 Td (167,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 160.27 Td (83.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 160.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 145.27 Td (Industrial Lasers & Systems \(ILS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 145.28 Td (145,689) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.50 145.28 Td (34.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 145.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 145.27 Td (32,840) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 145.27 Td (16.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 145.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 130.27 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.00 130.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 130.28 Td (422,833) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.50 130.28 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 404.00 130.28 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.00 130.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 130.27 Td (199,882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 130.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.65 130.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET 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 (38) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 679.50 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 679.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 679.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 679.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 679.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 679.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 649.50 219.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 269.50 649.50 69.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 338.50 649.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 342.50 649.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 412.50 649.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 416.50 649.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 486.50 649.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 490.50 649.50 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 269.5 735.5 m 338.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 735.5 m 342.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 735.5 m 412.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 735.5 m 416.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 735.5 m 486.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 735.5 m 490.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 735.5 m 560.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 735.5 m 338.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 722.5 m 338.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 735.5 m 342.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338.5 722.5 m 342.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 735.5 m 412.5 735.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 722.5 m 412.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 722.5 m 486.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 722.5 m 490.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 722.5 m 560.5 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 693.5 m 338.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 693.5 m 412.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 693.5 m 486.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 693.5 m 560.5 693.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 649.5 m 338.5 649.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 635.5 m 338.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 269.5 633.5 m 338.5 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 649.5 m 412.5 649.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 635.5 m 412.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342.5 633.5 m 412.5 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 649.5 m 486.5 649.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 635.5 m 486.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.5 633.5 m 486.5 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 649.5 m 560.5 649.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 635.5 m 560.5 635.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 633.5 m 560.5 633.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.90 739.73 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.35 726.73 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.85 726.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.45 697.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.15 713.73 Td (Per) Tj ET Q q 0 0 0 rg BT 369.99 713.73 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.85 705.73 Td (of total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.65 697.73 Td (net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.95 697.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.15 713.73 Td (Per) Tj ET Q q 0 0 0 rg BT 517.99 713.73 Td (centage ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.85 705.73 Td (of total ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.65 697.73 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 (OEM Laser Sources \(OLS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 669.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 669.18 Td (515,880) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 669.18 Td (67.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 669.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 669.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 669.17 Td (325,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 669.17 Td (83.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 669.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 654.17 Td (Industrial Lasers & Systems \(ILS\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 654.18 Td (253,026) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 384.50 654.18 Td (32.9) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 654.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 654.17 Td (64,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 654.17 Td (16.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 654.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 639.17 Td ( Total) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 272.00 639.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 302.15 639.18 Td (768,906) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.50 639.18 Td (100.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 402.00 639.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.00 639.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 639.17 Td (390,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 639.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.65 639.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 611.00 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 587.00 Td (Net sales for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.75 587.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.52 587.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.82 587.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.82 587.00 Td ( increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.08 587.00 Td ($223.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.97 587.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.80 587.00 Td (1) Tj ET Q q 0 0 0 rg BT 368.43 587.00 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.76 587.00 Td (, compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.68 587.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.45 587.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 575.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 575.00 Td (, with increases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.25 575.00 Td ($1) Tj ET Q q 0 0 0 rg BT 154.88 575.00 Td (12.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.77 575.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.60 575.00 Td (344%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.93 575.00 Td (, in our ILS segment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.31 575.00 Td ($1) Tj ET Q q 0 0 0 rg BT 353.94 575.00 Td (10.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.83 575.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.66 575.00 Td (66%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.99 575.00 Td (, in our OLS segment. Net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 563.00 Td (sales in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.93 563.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.70 563.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 563.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 563.00 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.44 563.00 Td ($1) Tj ET Q q 0 0 0 rg BT 262.07 563.00 Td (10.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.96 563.00 Td ( of Rofin net sales, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.00 563.00 Td ($108.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.89 563.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.33 563.00 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.22 563.00 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 551.00 Td (ILS and OLS segments, respectively) Tj ET Q q 0 0 0 rg BT 195.71 551.00 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 50.00 539.00 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 50.00 527.00 Td (The increase in our ILS segment sales was primarily due to higher shipments for materials processing and OEM components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 515.00 Td (and instrumentation applications due to the acquisition of Rofin as well as higher shipments to the flat panel display and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 503.00 Td (advanced packaging markets. ) Tj ET Q q 0 0 0 rg BT 170.32 503.00 Td (The increase in our OLS segment sales was primarily due to higher shipments of ELA) Tj ET Q q 0 0 0 rg BT 514.69 503.00 Td ( tools used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 491.00 Td (in the flat panel display market and higher service revenue as well as higher shipments for materials processing and advanced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 479.00 Td (packaging applications partially of) Tj ET Q q 0 0 0 rg BT 188.38 479.00 Td (fset by lower shipments for scientific and government programs. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 455.00 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 455.00 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 455.00 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 431.00 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 217.47 431.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.47 431.00 Td ( increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.72 431.00 Td ($378.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.61 431.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.44 431.00 Td (97.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.27 431.00 Td (, compared to the first six months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 419.00 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 419.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 419.00 Td (, with increases of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.41 419.00 Td ($190.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.30 419.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.13 419.00 Td (58.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.96 419.00 Td (, in our OLS segment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.22 419.00 Td ($188.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.12 419.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.95 419.00 Td (293.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.78 419.00 Td (, in our ILS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.00 Td (segment. Net sales in the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.91 407.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.91 407.00 Td ( included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.34 407.00 Td ($185.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.23 407.00 Td ( of Rofin net sales, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.28 407.00 Td ($182.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.17 407.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 395.00 Td ($2.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.89 395.00 Td ( in the ILS and OLS segments, respectively) Tj ET Q q 0 0 0 rg BT 272.09 395.00 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.00 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 371.00 Td (The increase in our OLS segment sales was primarily due to higher shipments of ELA) Tj ET Q q 0 0 0 rg BT 394.37 371.00 Td ( tools used in the flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 359.00 Td (market and higher service revenue as well as higher shipments for advanced packaging and materials processing applications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 347.00 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 347.00 Td (fset by lower shipments for scientific and government programs. ) Tj ET Q q 0 0 0 rg BT 354.83 347.00 Td (The increase in our ILS segment sales was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 335.00 Td (primarily due to higher shipments for materials processing and OEM components and instrumentation applications due to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 323.00 Td (acquisition of Rofin as well as higher shipments to the flat panel display and advanced packaging markets.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 299.00 Td (GROSS PROFIT) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 287.00 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 275.00 Td (Consolidated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 251.00 Td (Our gross profit rate decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.28 251.00 Td (1.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.11 251.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.89 251.00 Td (42.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.72 251.00 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.21 251.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.98 251.00 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.28 251.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.28 251.00 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.72 251.00 Td (44.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.55 251.00 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.05 251.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.82 251.00 Td ( quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 239.00 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 239.00 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 239.00 Td ( and decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.01 239.00 Td (2.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.84 239.00 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.62 239.00 Td (41.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.45 239.00 Td ( in the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 239.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 239.00 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.09 239.00 Td (44.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.92 239.00 Td ( in the same period one year ago.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 215.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 215.00 Td (1.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 215.00 Td ( second quarter decrease in the gross profit rate was primarily due to the impact of purchase accounting adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 203.00 Td (\(5.8%\) for amortization of inventory step up and amortization of intangibles related to the acquisition of Rofin in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 191.00 Td (quarter of fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 140.25 191.00 Td (Also contributing to the decrease was the impact of the acquisition of Rofin before considering purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 179.00 Td (accounting adjustments \(3.4%\) due to Rofin) Tj ET Q q 0 0 0 rg BT 229.41 179.00 Td (s historical mar) Tj ET Q q 0 0 0 rg BT 290.88 179.00 Td (gins that are lower than Coherent) Tj ET Q q 0 0 0 rg BT 426.67 179.00 Td (s historical mar) Tj ET Q q 0 0 0 rg BT 488.14 179.00 Td (gins. ) Tj ET Q q 0 0 0 rg BT 509.63 179.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 167.00 Td (decreases due to the acquisition of Rofin were partially of) Tj ET Q q 0 0 0 rg BT 281.13 167.00 Td (fset by improvements in mar) Tj ET Q q 0 0 0 rg BT 395.92 167.00 Td (gins of Coherent historical products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 155.00 Td (\(7.4%\) primarily due to favorable mix in flat panel display applications for both system sales and service, the favorable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 143.00 Td (leverage of manufacturing costs on higher volumes as well as lower warranty costs due both to lower warranty events and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 131.00 Td (impact of significantly higher net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 107.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 107.00 Td (2.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 107.00 Td ( decrease 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 364.64 107.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.64 107.00 Td ( was primarily due to the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 95.00 Td (purchase accounting adjustments \(5.4%\) for amortization of inventory step up and amortization of intangibles related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 83.00 Td (acquisition of Rofin in the first quarter of fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 266.34 83.00 Td (Also contributing to the decrease was the impact of the acquisition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 71.00 Td (Rofin before considering purchase accounting adjustments \(2.4%\) due to Rofin) Tj ET Q q 0 0 0 rg BT 369.92 71.00 Td (s historical mar) Tj ET Q q 0 0 0 rg BT 431.39 71.00 Td (gins that are lower than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 59.00 Td (Coherent) Tj ET Q q 0 0 0 rg BT 89.43 59.00 Td (s historical mar) Tj ET Q q 0 0 0 rg BT 150.90 59.00 Td (gins. ) Tj ET Q q 0 0 0 rg BT 172.39 59.00 Td (The decreases were partially of) Tj ET Q q 0 0 0 rg BT 297.14 59.00 Td (fset by improvements in mar) Tj ET Q q 0 0 0 rg BT 411.94 59.00 Td (gins of Coherent historical products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 47.00 Td (\(5.4%\) primarily due to the favorable leverage of manufacturing costs on higher volumes and favorable mix in flat panel ) 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 (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (display applications for both system sales and service as well as lower warranty costs due to lower warranty events and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (impact of significantly higher net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Our gross profit rate has been and will continue to be af) Tj ET Q q 0 0 0 rg BT 272.81 706.10 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 50.00 694.10 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 50.00 682.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.59 682.10 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 50.00 670.10 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 50.00 658.10 Td (foreign currency fluctuations, particularly the recent weakening of the Euro and to a lesser extent, the Japanese ) Tj ET Q q 0 0 0 rg BT 495.83 658.10 Td (Y) Tj ET Q q 0 0 0 rg BT 502.06 658.10 Td (en and South ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Korean ) Tj ET Q q 0 0 0 rg BT 81.75 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 90.39 646.10 Td (on.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (OEM Laser) Tj ET Q q 0 0 0 rg BT 100.64 622.10 Td ( Sour) Tj ET Q q 0 0 0 rg BT 123.53 622.10 Td (ces) 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 gross profit rate in our OLS segment increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.94 598.10 Td (5.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.77 598.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.55 598.10 Td (53.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.38 598.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.88 598.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.64 598.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.94 598.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.94 598.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.38 598.10 Td (48.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.21 598.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (second quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 170.89 586.10 Td (The gross profit rate in our OLS segment increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.83 586.10 Td (5.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.66 586.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.44 586.10 Td (53.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.27 586.10 Td ( in the first six months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 574.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 574.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.59 574.10 Td (47.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.42 574.10 Td ( in the same period one year ago.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 550.10 Td (5.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 550.10 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 452.17 550.10 Td (gins \(4.0%\) as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (favorable mix within flat panel display applications for both systems and service as well as leverage of manufacturing costs on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (higher volumes and the favorable impact of the weaker Euro and lower warranty and installation costs \(1.2%\) as a percentage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (of revenue due to lower warranty events in certain business units and the impact of higher sales. ) Tj ET Q q 0 0 0 rg BT 436.00 514.10 Td (Also contributing to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (increase in gross profit rate were lower other costs \(0.4%\) due to lower inventory provisions and duty costs in certain business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (units as well as the impact of higher sales and lower intangibles amortization \(0.3%\) as a percentage of sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 466.10 Td (5.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 466.10 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 360.48 466.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.48 466.10 Td ( was primarily due to favorable product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (mar) Tj ET Q q 0 0 0 rg BT 65.37 454.10 Td (gins \(3.6%\) as a result of higher leverage of manufacturing costs on higher volumes, favorable mix within flat panel display ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (applications for both systems and service as well as and the favorable impact of the weaker Euro and lower warranty and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (installation costs \(0.7%\) as a percentage of revenue due to lower warranty events in certain business units and the impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (higher sales. ) Tj ET Q q 0 0 0 rg BT 101.93 418.10 Td (Also contributing to the increase in gross profit rate were lower other costs \(0.6%\) due to lower inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (provisions and duty costs in certain business units as well as the impact of higher sales and lower intangibles amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (\(0.3%\) as a percentage of sales.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (Industrial Lasers & Systems) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (The gross profit rate in our ILS segment decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.71 346.10 Td (6.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.54 346.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.32 346.10 Td (21.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.15 346.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.64 346.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.41 346.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.71 346.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.71 346.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 346.10 Td (27.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.98 346.10 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (second quarter of fiscal 2016. ) Tj ET Q q 0 0 0 rg BT 170.89 334.10 Td (The gross profit rate in our ILS segment decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.60 334.10 Td (7.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.43 334.10 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.21 334.10 Td (19.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.04 334.10 Td ( in the first six months of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 322.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.16 322.10 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.59 322.10 Td (27.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.42 322.10 Td ( in the same period one year ago.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 298.10 Td (6.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 298.10 Td ( second quarter decrease in the gross profit rate was primarily due to the impact of purchase accounting adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (\(15.7%\) for amortization of inventory step up and amortization of intangibles related to the acquisition of Rofin in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (quarter of fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 140.62 274.10 Td (The decreases in gross profit rate were partially of) Tj ET Q q 0 0 0 rg BT 341.46 274.10 Td (fset by the favorable impact of Rofin's mar) Tj ET Q q 0 0 0 rg BT 512.75 274.10 Td (gins before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (considering purchase accounting adjustments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.05 238.10 Td (7.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.88 238.10 Td ( decrease 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 362.14 238.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.14 238.10 Td ( was primarily due to the impact of purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (accounting adjustments \(15.4%\) for amortization of inventory step up and amortization of intangibles related to the acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (of Rofin in the first quarter of fiscal 2017 and restructuring costs \(1.4%\) related to the implementation of planned restructuring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (activities in connection with the acquisition of Rofin, which is primarily related to the exit from our preexisting high power ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (fiber laser product line. ) Tj ET Q q 0 0 0 rg BT 145.62 190.10 Td (The decreases in gross profit rate were partially of) Tj ET Q q 0 0 0 rg BT 346.46 190.10 Td (fset by the favorable impact of Rofin's mar) Tj ET Q q 0 0 0 rg BT 517.75 190.10 Td (gins ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (before considering purchase accounting adjustments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (OPERA) Tj ET Q q 0 0 0 rg BT 84.26 142.10 Td (TING EXPENSES:) 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 (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 623.00 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 682.50 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.00 682.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.00 682.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.00 682.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.00 682.50 4.00 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697.5 m 483 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 697.5 m 557 697.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 637.5 m 335 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 637.5 m 409 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 637.5 m 483 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 637.5 m 557 637.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 623.5 m 335 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 621.5 m 335 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 623.5 m 409 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 621.5 m 409 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 623.5 m 483 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413 621.5 m 483 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 623.5 m 557 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 621.5 m 557 621.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.10 739.73 Td (Three Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.35 726.73 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.35 726.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.45 701.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.35 709.73 Td (Per) Tj ET Q q 0 0 0 rg BT 362.19 709.73 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.35 701.73 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.45 701.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.35 709.73 Td (Per) Tj ET Q q 0 0 0 rg BT 510.19 709.73 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.35 701.73 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.70 686.73 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 672.17 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.50 672.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 672.18 Td (30,536) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 672.18 Td (7.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 672.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 672.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 672.17 Td (20,955) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 672.17 Td (10.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 672.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 657.17 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 303.65 657.18 Td (72,451) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 657.18 Td (17.1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 657.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 657.17 Td (40,940) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 657.17 Td (20.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 657.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 642.17 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 308.65 642.18 Td (5,439) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 386.00 642.18 Td (1.4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 642.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 642.17 Td (700) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 642.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 642.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 627.17 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 267.50 627.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 298.65 627.18 Td (108,426) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 381.00 627.18 Td (25.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 398.50 627.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 627.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.65 627.17 Td (62,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 627.17 Td (31.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 627.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0.8 0.9333333333333333 1 rg /GS0 gs 53.50 534.50 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 534.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 534.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 534.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 534.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 534.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 534.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 534.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.50 504.50 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 504.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 504.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 504.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 504.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 504.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 504.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 504.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.50 474.50 212.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 265.50 474.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 335.50 474.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 339.50 474.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 409.50 474.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 413.50 474.50 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 483.50 474.50 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 487.50 474.50 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 265.5 587.5 m 335.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 587.5 m 339.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 587.5 m 409.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 587.5 m 413.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 587.5 m 483.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 587.5 m 487.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 587.5 m 557.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 587.5 m 335.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 574.5 m 335.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 587.5 m 339.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 574.5 m 339.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 587.5 m 409.5 587.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 574.5 m 409.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 574.5 m 483.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 483.5 574.5 m 487.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 574.5 m 557.5 574.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 549.5 m 335.5 549.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 549.5 m 409.5 549.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 549.5 m 483.5 549.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 549.5 m 557.5 549.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 474.5 m 335.5 474.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 474.5 m 409.5 474.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 474.5 m 483.5 474.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 474.5 m 557.5 474.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 460.5 m 335.5 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265.5 458.5 m 335.5 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 460.5 m 409.5 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 458.5 m 409.5 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 460.5 m 483.5 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 458.5 m 483.5 458.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 460.5 m 557.5 460.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 458.5 m 557.5 458.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 379.40 591.73 Td (Six Months Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.85 578.73 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.85 578.73 Td (April 2, 2016) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.95 553.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.85 561.73 Td (Per) Tj ET Q q 0 0 0 rg BT 362.69 561.73 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.85 553.73 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.95 553.73 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.85 561.73 Td (Per) Tj ET Q q 0 0 0 rg BT 510.69 561.73 Td (centage of ) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.85 553.73 Td (total net sales) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.20 538.73 Td (\(Dollars in thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 524.17 Td (Research and development) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.00 524.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 304.15 524.18 Td (57,620) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.15 524.18 Td (7.5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 524.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 524.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 524.17 Td (40,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 524.17 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 524.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 509.17 Td (Selling, general and administrative) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 509.18 Td (146,219) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.15 509.18 Td (19.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 509.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 509.17 Td (77,714) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 509.17 Td (19.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 494.17 Td (Gain on business combination) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 305.80 494.23 Td (\(5,416) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 331.65 494.18 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 379.80 494.23 Td (\(0.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 395.65 494.18 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 494.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 494.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 494.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 479.17 Td (Amortization of intangible assets) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 309.15 479.18 Td (9,317) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 383.15 479.18 Td (1.2) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 479.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 479.17 Td (1,401) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 479.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 479.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.00 464.17 Td (Total operating expenses) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 268.00 464.18 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 299.15 464.18 Td (207,740) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 378.15 464.18 Td (27.0) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 399.00 464.18 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 464.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 464.17 Td (119,210) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 464.17 Td (30.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.65 464.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 436.00 Td (Resear) Tj ET Q q 0 0 0 rg BT 79.25 436.00 Td (ch and development) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 412.00 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 388.00 Td (Research and development \(R&D\) expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.79 388.00 Td ($9.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.69 388.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.52 388.00 Td (46%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.85 388.00 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.17 388.00 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.94 388.00 Td ( fiscal quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.24 388.00 Td (April1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 376.00 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 376.00 Td ( compared to the same quarter one year ago.) Tj ET Q q 0 0 0 rg BT 249.18 376.00 Td (The increase was primarily due to Rofin R&D expenses \($8.4 million\) as they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 364.00 Td (were acquired on November 7, 2016, $0.6 million higher project spending including higher variable compensation, higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 352.00 Td (spending on materials and lower customer reimbursements and $0.6 million higher char) Tj ET Q q 0 0 0 rg BT 401.40 352.00 Td (ges for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 340.00 Td (compensation plan liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 316.00 Td (On a segment basis as compared to the prior year period, OLS research and development spending increased $1.9 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 304.00 Td (primarily due to higher net spending on projects. ILS spending increased $6.7 million primarily due to the acquisition of Rofin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 292.00 Td (partially of) Tj ET Q q 0 0 0 rg BT 93.97 292.00 Td (fset by lower project spending. Corporate and other spending increased $1.0 million due to higher char) Tj ET Q q 0 0 0 rg BT 505.06 292.00 Td (ges for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 280.00 Td (increases in deferred compensation plan liabilities and higher project spending in the advanced research business unit.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 256.00 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 256.00 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 256.00 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 232.00 Td (R&D expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.02 232.00 Td ($17.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.91 232.00 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.74 232.00 Td (43.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.57 232.00 Td (, during the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.84 232.00 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.45 232.00 Td ( compared to the same period one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 220.00 Td (year ago. ) Tj ET Q q 0 0 0 rg BT 88.96 220.00 Td (The increase for the six months was primarily due to Rofin R&D expenses \($13.5 million, including $0.7 million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 208.00 Td (restructuring costs for severance\) since the acquisition on November 7, 2016, $1.9 million higher project spending including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 196.00 Td (higher variable compensation, higher spending on materials and lower customer reimbursements as well as $0.9 million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 184.00 Td (restructuring costs related to the exit from our historical Coherent high power fiber laser product line in the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 172.00 Td (fiscal 2017. ) Tj ET Q q 0 0 0 rg BT 98.97 172.00 Td (There were also increases of $0.7 million for higher stock-based compensation expense including $0.5 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 160.00 Td (related to a char) Tj ET Q q 0 0 0 rg BT 113.95 160.00 Td (ge recorded in the first quarter of fiscal 2017 due to the acceleration of Rofin options and $0.5 million higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 148.00 Td (char) Tj ET Q q 0 0 0 rg BT 67.03 148.00 Td (ges for increases in deferred compensation plan liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 124.00 Td (On a segment basis as compared to the prior year period, OLS research and development spending increased $3.5 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 112.00 Td (primarily due to higher net spending on projects. ILS spending increased $12.3 million primarily due to the acquisition of Rofin ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 100.00 Td (and restructuring costs partially of) Tj ET Q q 0 0 0 rg BT 187.00 100.00 Td (fset by lower project spending. Corporate and other spending increased $1.7 million due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 88.00 Td (higher stock-based compensation expense, higher char) Tj ET Q q 0 0 0 rg BT 268.08 88.00 Td (ges for increases in deferred compensation plan liabilities and higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 76.00 Td (project spending in the advanced research business unit.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 52.00 Td (Selling, general and administrative) 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 (41) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td (Quarterly) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.25 Td (Selling, general and administrative \(SG&A\) expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.58 706.25 Td ($31.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.47 706.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.30 706.25 Td (77%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.63 706.25 Td (, during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.95 706.25 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.72 706.25 Td ( fiscal quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 694.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.43 694.25 Td ( compared to the same quarter one year ago.) Tj ET Q q 0 0 0 rg BT 308.62 694.25 Td (The increase was primarily due to the addition of Rofin SG&A) Tj ET Q q 0 0 0 rg BT 560.23 694.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (expenses \($21.1 million\) following the acquisition in the first quarter of fiscal 2017, $4.4 million higher other spending on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.25 Td (legal, consulting and infrastructure related to integration activities as well other variable spending in support of higher sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.25 Td ($2.9 million higher char) Tj ET Q q 0 0 0 rg BT 146.46 658.25 Td (ges for increases in deferred compensation plan liabilities and $2.7 million due to higher payroll ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.25 Td (spending for variable compensation, commissions and salaries and benefits. SG&A) Tj ET Q q 0 0 0 rg BT 382.99 646.25 Td ( expenses also increased as a result of $1.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.25 Td (million higher stock-based compensation expense due to higher expense for new grants and decreased $0.7 million due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.25 Td (lower financial advisory) Tj ET Q q 0 0 0 rg BT 146.54 622.25 Td (, consulting and legal costs related to the acquisition of Rofin.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.25 Td (On a segment basis as compared to the prior year period, OLS segment expenses increased $7.4 million primarily due to higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.25 Td (payroll and other variable spending as well as spending relating to the acquisition of a Rofin business unit. ILS spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.25 Td (increased $18.4 million primarily due to the acquisition of Rofin and higher payroll spending. Corporate and other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.25 Td (increased $5.7 million primarily due to higher char) Tj ET Q q 0 0 0 rg BT 253.65 562.25 Td (ges for increases in deferred compensation plan liabilities, higher other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.25 Td (spending on legal, consulting and infrastructure related to integration activities, higher payroll spending and higher stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (compensation expense partially of) Tj ET Q q 0 0 0 rg BT 186.72 538.25 Td (fset by lower financial advisory) Tj ET Q q 0 0 0 rg BT 312.70 538.25 Td (, consulting and legal costs related to the acquisition of Rofin) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 557.92 538.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 514.25 Td (Y) Tj ET Q q 0 0 0 rg BT 54.64 514.25 Td (ear) Tj ET Q q 0 0 0 rg BT 67.77 514.25 Td (-to-date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (SG&A) Tj ET Q q 0 0 0 rg BT 77.23 490.25 Td ( expenses increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.58 490.25 Td ($68.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.48 490.25 Td (, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.31 490.25 Td (88.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.14 490.25 Td (, during the six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.40 490.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.01 490.25 Td ( compared to the same period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (one year ago. ) Tj ET Q q 0 0 0 rg BT 105.90 478.25 Td (The increase for the first six months was primarily due to the addition of Rofin SG&A) Tj ET Q q 0 0 0 rg BT 451.12 478.25 Td ( expenses \($34.6 million\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (following the acquisition in the first quarter of fiscal 2017, $13.4 million higher financial advisory) Tj ET Q q 0 0 0 rg BT 442.60 466.25 Td (, consulting and legal costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (related to the acquisition of Rofin and $6.4 million higher payroll spending for variable compensation, commissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 Td (salaries and benefits. SG&A) Tj ET Q q 0 0 0 rg BT 163.31 442.25 Td ( expense also increased due to $6.1 million higher stock-based compensation expense, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td ($3.4 million related to a char) Tj ET Q q 0 0 0 rg BT 165.34 430.25 Td (ge recorded in the first quarter of fiscal 2017 due to the acceleration of Rofin options, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.25 Td (higher expense for new grants, $5.1 million higher other spending on legal, consulting and infrastructure related to integration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (activities as well other variable spending in support of higher sales and $2.9 million higher char) Tj ET Q q 0 0 0 rg BT 432.50 406.25 Td (ges for increases in deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.25 Td (compensation plan liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (On a segment basis as compared to the prior year period, OLS segment expenses increased $1) Tj ET Q q 0 0 0 rg BT 425.63 370.25 Td (1.5 million primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (higher payroll and other variable spending as well as spending relating to the acquisition of a Rofin business unit. ILS spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (increased $32.5 million primarily due to the acquisition of Rofin and higher payroll spending. Corporate and other spending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (increased $24.5 million primarily due to higher financial advisory) Tj ET Q q 0 0 0 rg BT 312.89 334.25 Td (, consulting and legal costs related to the acquisition of Rofin, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (higher stock-based compensation expense, higher char) Tj ET Q q 0 0 0 rg BT 268.08 322.25 Td (ges for increases in deferred compensation plan liabilities and higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (payroll spending.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (Gain on business combination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 Td (On November 7, 2016, we acquired Rofin at a price of $32.50 per share of Rofin common stock \(See Note 3 "Business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.25 Td (Combinations"\). ) Tj ET Q q 0 0 0 rg BT 118.34 250.25 Td (W) Tj ET Q q 0 0 0 rg BT 126.98 250.25 Td (e recognized a gain of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.77 250.25 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.66 250.25 Td ( in the first quarter of fiscal 2017 on the increase in fair value from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (date of purchase for the shares we already owned.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 214.25 Td (Amortization of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (Amortization of intangible assets increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.22 190.25 Td ($4.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.12 190.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.55 190.25 Td ($7.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.45 190.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.94 190.25 Td (three and six months ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.36 190.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.31 190.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.92 190.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 178.25 Td (, compared to the same periods last year) Tj ET Q q 0 0 0 rg BT 257.61 178.25 Td (. ) Tj ET Q q 0 0 0 rg BT 262.43 178.25 Td (The increases were primarily due to the acquisition of Rofin in the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (quarter of fiscal 2017.) 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 50.00 154.25 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 50.00 142.25 Td (OTHER INCOME \(EXPENSE\) NET) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.25 Td (Other income \(expense\), net, changed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.60 118.25 Td ($8.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.49 118.25 Td ( to other expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.86 118.25 Td ($10.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.75 118.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.24 118.25 Td (second quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.83 118.25 Td ( of fiscal 2017 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (from other expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.52 106.25 Td ($1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.41 106.25 Td ( in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.91 106.25 Td (second quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.49 106.25 Td ( of fiscal 2016. Other income \(expense\), net, changed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.58 106.25 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.47 106.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.25 Td (to other expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.86 94.25 Td ($5.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.75 94.25 Td ( in the first six months of fiscal 2017 from other expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.98 94.25 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.88 94.25 Td ( in the first six months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (of fiscal 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 Td (The second fiscal quarter increase in net other expense was primarily due to $9.0 million higher interest expense due to interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 46.25 Td (on the Euro ) Tj ET Q q 0 0 0 rg BT 98.97 46.25 Td (T) Tj ET Q q 0 0 0 rg BT 104.38 46.25 Td (erm Loan to fund the acquisition of Rofin as well as amortization of debt issuance costs related to the Euro ) Tj ET Q q 0 0 0 rg BT 534.09 46.25 Td (T) Tj ET Q q 0 0 0 rg BT 539.50 46.25 Td (erm ) Tj ET Q endstream endobj 87 0 obj <>] /Rotate 0 /Contents 88 0 R>> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Loan and $2.5 million higher foreign exchange losses primarily due to the impact of changing rates on cash conversions. ) Tj ET Q q 0 0 0 rg BT 535.52 742.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (increases in expense were partially of) Tj ET Q q 0 0 0 rg BT 200.03 730.10 Td (fset by $3.6 million higher gains, net of expenses, on our deferred compensation plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (The increase for the first six months of fiscal 2017 in net other expense was primarily due to higher interest expense of $16.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (million partially of) Tj ET Q q 0 0 0 rg BT 125.36 682.10 Td (fset by $1) Tj ET Q q 0 0 0 rg BT 164.43 682.10 Td (1.9 million higher foreign exchange gains and $2.7 million higher gains, net of expenses, on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (deferred compensation plan assets. Interest expense increased due to interest on the Euro ) Tj ET Q q 0 0 0 rg BT 407.47 670.10 Td (T) Tj ET Q q 0 0 0 rg BT 412.88 670.10 Td (erm Loan and interest on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (commitment of the Euro ) Tj ET Q q 0 0 0 rg BT 150.35 658.10 Td (T) Tj ET Q q 0 0 0 rg BT 155.76 658.10 Td (erm Loan to fund the acquisition of Rofin as well as amortization of debt issuance costs related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Euro ) Tj ET Q q 0 0 0 rg BT 71.76 646.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.17 646.10 Td (erm Loan. ) Tj ET Q q 0 0 0 rg BT 120.58 646.10 Td (The higher foreign exchange gains were primarily due to a gain of $1) Tj ET Q q 0 0 0 rg BT 397.89 646.10 Td (1.3 million on forward contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (associated with our foreign exchange risk related to the commitment of our Euro ) Tj ET Q q 0 0 0 rg BT 375.00 634.10 Td (T) Tj ET Q q 0 0 0 rg BT 380.41 634.10 Td (erm Loan and the issuance of the Euro ) Tj ET Q q 0 0 0 rg BT 536.84 634.10 Td (T) Tj ET Q q 0 0 0 rg BT 542.25 634.10 Td (erm ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (Loan to finance the acquisition of Rofin. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (INCOME ) Tj ET Q q 0 0 0 rg BT 94.54 598.10 Td (T) Tj ET Q q 0 0 0 rg BT 100.47 598.10 Td (AXES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.64 598.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 75.63 574.10 Td (fective tax rate on income from continuing operations before income taxes for the second quarter of fiscal 2017 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (30.7% and the ef) Tj ET Q q 0 0 0 rg BT 117.57 562.10 Td (fective tax rate on income from continuing operations before income taxes for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (2017 of 32.6% were lower than the statutory rate of 35.0% primarily due to dif) Tj ET Q q 0 0 0 rg BT 365.29 550.10 Td (ferences related to the benefit of income subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (to foreign tax rates that are lower than U.S. tax rates including the Singapore tax exemption, the benefit of foreign tax credits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (and the benefit of federal research and development tax credits. ) Tj ET Q q 0 0 0 rg BT 306.09 526.10 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 427.53 526.10 Td (fset by Rofin transaction costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td (not deductible for tax purposes, tax costs of Rofin restructuring, ) Tj ET Q q 0 0 0 rg BT 307.72 514.10 Td (ASC 740-10 \(formerly FIN48\) tax liabilities for transfer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (pricing, stock-based compensation not deductible for tax purposes and limitations on the deductibility of compensation under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (IRC Section 162\(m\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 75.63 466.10 Td (fective tax rate on income from continuing operations before income taxes for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.23 466.10 Td (second) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.00 466.10 Td ( quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.30 466.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.30 466.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.63 466.10 Td (26.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.46 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (and the ef) Tj ET Q q 0 0 0 rg BT 89.24 454.10 Td (fective tax rate on income from continuing operations before income taxes for the first six months of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.55 454.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.55 454.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (25.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.83 442.10 Td ( were lower than the statutory rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.77 442.10 Td (35.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.60 442.10 Td ( primarily due to dif) Tj ET Q q 0 0 0 rg BT 331.96 442.10 Td (ferences related to the benefit of income subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (foreign tax rates that are lower than U.S. tax rates including the Singapore tax exemption, the benefit of foreign tax credits and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (the benefit of federal research and development tax credits including renewal of the federal research and development credits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (for fiscal 2015. ) Tj ET Q q 0 0 0 rg BT 113.13 406.10 Td (These amounts are partially of) Tj ET Q q 0 0 0 rg BT 234.58 406.10 Td (fset by deemed dividend inclusions under the Subpart F tax rules, stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (compensation not 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 50.00 370.10 Td (LIQUIDITY) Tj ET Q q 0 0 0 rg BT 104.09 370.10 Td ( ) Tj ET Q q 0 0 0 rg BT 106.04 370.10 Td (AND CAPIT) Tj ET Q q 0 0 0 rg BT 160.57 370.10 Td (AL) Tj ET Q q 0 0 0 rg BT 173.91 370.10 Td ( RESOURCES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.95 346.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.56 346.10 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 50.00 334.10 Td ($433.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.89 334.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.09 334.10 Td ($400.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.99 334.10 Td ( at October 1, 2016. Our cash and cash equivalents and short-term investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.93 322.10 Td ($181.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.83 322.10 Td ( of cash at Rofin entities. In addition, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.07 322.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.68 322.10 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.78 322.10 Td ($13.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.67 322.10 Td ( of restricted cash. ) Tj ET Q q 0 0 0 rg BT 524.92 322.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.61 310.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.87 310.10 Td ($305.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.76 310.10 Td ( of our cash and securities was heldin certain of our foreign subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.39 310.10 Td ($280.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 298.10 Td ( of which was denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 345.76 298.10 Td (. ) Tj ET Q q 0 0 0 rg BT 350.21 298.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.16 298.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.77 298.10 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.12 298.10 Td ($305.0 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 286.10 Td ( of cash held by foreign subsidiaries where we intend to permanently reinvest our accumulated earnings in these entities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (and our current plans do not demonstrate a need for these funds to support our domestic operations. If, however) Tj ET Q q 0 0 0 rg BT 496.14 274.10 Td (, a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (these funds are needed for and distributed to our operations in the United States,we may be subject to additional U.S.income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (taxes and foreign withholding taxes. ) Tj ET Q q 0 0 0 rg BT 197.19 250.10 Td (An exception to U.S. taxation may be the repatriation of foreign funds that had been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (previously taxed in the U.S. as Subpart F income. ) Tj ET Q q 0 0 0 rg BT 250.90 238.10 Td (The amount of the U.S. and foreign taxes due would depend on the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (and manner of repatriation, as well as the location from where the funds are repatriated. ) Tj ET Q q 0 0 0 rg BT 402.73 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 411.37 226.10 Td (e actively monitor the third-party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (depository institutions that hold these assets, primarily focusing on the safety of principal and secondarily maximizing yield on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (these assets. ) Tj ET Q q 0 0 0 rg BT 101.20 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 109.83 202.10 Td (e diversify our cash and cash equivalents and investments among various financial institutions, money market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (funds, sovereign debt and other securities in order to reduce our exposure should any one of these financial institutions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (financial instruments fail or encounter dif) Tj ET Q q 0 0 0 rg BT 216.15 178.10 Td (ficulties. ) Tj ET Q q 0 0 0 rg BT 253.18 178.10 Td (T) Tj ET Q q 0 0 0 rg BT 258.59 178.10 Td (o date, we have not experienced any material loss or lack of access to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (invested cash, cash equivalents or short-term investments. However) Tj ET Q q 0 0 0 rg BT 320.91 166.10 Td (, we can provide no assurances that access to our invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (cash, cash equivalents or short-term investments will not be impacted by adverse conditions in the financial markets. In the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (quarter of fiscal 2017, we spent a significant portion of our foreign funds on the Rofin acquisition. ) Tj ET Q q 0 0 0 rg BT 445.56 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 454.20 142.10 Td (e did not repatriate foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.10 Td (funds to our domestic operations to fund this acquisition. ) Tj ET Q q 0 0 0 rg BT 280.35 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 288.98 130.10 Td (e expect to have adequate foreign funds in the future to service the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (acquisition debt and do not anticipate any repatriation of foreign funds to operate our domestic business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (In fiscal 2016, 2015 and 2014, we converted a total of $160.6 million of cash and securities held in certain of our foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (subsidiaries to U.S. dollars and invested those funds within a European subsidiary whose functional currency is the U.S. dollar) Tj ET Q q 0 0 0 rg BT 556.02 82.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (In the first quarter of fiscal 2017, we used these funds to purchase Rofin and pay related acquisition expenses. ) Tj ET Q q 0 0 0 rg BT 492.19 70.10 Td (The converted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (funds were not repatriated to the U.S. and no U.S. tax was triggered on the transfer of these funds to the European subsidiary) Tj ET Q q 0 0 0 rg BT 548.66 58.10 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 (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (See ITEM 3. QUANTIT) Tj ET Q q 0 0 0 rg BT 147.51 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 153.62 742.10 Td (TIVE ) Tj ET Q q 0 0 0 rg BT 178.34 742.10 Td (AND QUALIT) Tj ET Q q 0 0 0 rg BT 238.92 742.10 Td (A) Tj ET Q q 0 0 0 rg BT 245.03 742.10 Td (TIVE DISCLOSURES ) Tj ET Q q 0 0 0 rg BT 339.48 742.10 Td (ABOUT) Tj ET Q q 0 0 0 rg BT 373.75 742.10 Td ( MARKET) Tj ET Q q 0 0 0 rg BT 418.29 742.10 Td ( RISK below for more information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (about risks and trends related to foreign currencies.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (Sour) Tj ET Q q 0 0 0 rg BT 70.38 706.10 Td (ces and Uses of Cash) 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 (Historically) Tj ET Q q 0 0 0 rg BT 96.56 682.10 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 50.00 670.10 Td (include proceeds from our Euro ) Tj ET Q q 0 0 0 rg BT 179.50 670.10 Td (T) Tj ET Q q 0 0 0 rg BT 184.91 670.10 Td (erm Loan used to finance the acquisition of Rofin, proceeds received from the sale of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (stock through our employee stock purchase plan as well as borrowings under our domestic line of credit. Our historical uses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (cash have primarily been for the repurchase of our common stock, acquisitions of businesses and technologies, capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (expenditures and debt issuance costs. Supplemental information pertaining to our historical sources and uses of cash is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (presented as follows and should be read in conjunction with our condensed consolidated statements of cash flows and the notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (to condensed consolidated financial statements:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 463.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 552.60 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 552.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 552.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 552.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 522.60 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 522.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 522.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 522.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 492.60 311.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 364.00 492.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 454.00 492.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 458.00 492.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 586.6 m 454 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 586.6 m 458 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 586.6 m 548 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 565.6 m 454 565.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 586.6 m 548 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 565.6 m 548 565.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 589.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.90 590.83 Td (Six Months Ended) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 568.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.35 577.83 Td (April 1,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.50 569.83 Td (2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 489.35 577.83 Td (April 2,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.50 569.83 Td (2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 555.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.15 556.83 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 542.27 Td (Net cash provided by operating activities) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 366.50 542.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.65 542.28 Td (194,359) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 542.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.65 542.27 Td (45,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 527.27 Td (Sales of shares under employee stock plans) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 427.65 527.28 Td (3,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 527.27 Td (3,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 512.27 Td (Borrowings, net of repayments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 417.65 512.28 Td (682,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.65 512.27 Td (5,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 497.27 Td (Acquisition of businesses, net of cash acquired) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 414.30 497.33 Td (\(740,481) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 497.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.15 497.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 482.27 Td (Debt issuance costs) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.30 482.33 Td (\(25,892) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 482.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.30 482.32 Td (\(2,137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 482.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 467.27 Td (Capital expenditures) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 419.30 467.33 Td (\(29,543) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 450.15 467.28 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.30 467.32 Td (\(16,256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 467.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 451.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 439.10 Td (Net cash provided by operating activities increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.37 439.10 Td ($148.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.26 439.10 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.64 439.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.87 439.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.35 439.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.35 439.10 Td ( compared to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 427.10 Td (same period one year ago. ) Tj ET Q q 0 0 0 rg BT 157.00 427.10 Td (The increase in cash provided by operating activities was primarily due to higher cash flows due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 415.10 Td (higher non-cash expenses for amortization, stock-based compensation and depreciation, higher net income, higher deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 403.10 Td (revenue and accounts payable balances and higher cash flows from the timing of shipments of lar) Tj ET Q q 0 0 0 rg BT 439.41 403.10 Td (ge systems from inventory) Tj ET Q q 0 0 0 rg BT 545.14 403.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 391.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 391.10 Td (e believe that our existing cash, cash equivalents and short term investments combined with cash to be provided by operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 379.10 Td (activities and amounts available under our revolving credit facility will be adequate to cover our working capital needs and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 367.10 Td (planned capital expenditures for at least the next 12 months to the extent such items are known or are reasonably determinable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 355.10 Td (based on current business and market conditions. However) Tj ET Q q 0 0 0 rg BT 285.09 355.10 Td (, we may elect to finance certain of our capital expenditure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 343.10 Td (requirements through other sources of capital. ) Tj ET Q q 0 0 0 rg BT 236.15 343.10 Td (W) Tj ET Q q 0 0 0 rg BT 244.79 343.10 Td (e continue to follow our strategy to further strengthen our financial position by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 331.10 Td (using available cash flow to fund operations. ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 319.10 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 50.00 307.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 307.10 Td (e intend to continue to consider acquisition opportunities at valuations we believe are reasonable based upon market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 295.10 Td (conditions. However) Tj ET Q q 0 0 0 rg BT 132.92 295.10 Td (, we cannot accurately predict the timing, size and success of our acquisition ef) Tj ET Q q 0 0 0 rg BT 449.01 295.10 Td (forts or our associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 283.10 Td (potential capital commitments. Furthermore, we cannot assure you that we will be able to acquire businesses on terms ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 271.10 Td (acceptable to us. ) Tj ET Q q 0 0 0 rg BT 118.68 271.10 Td (W) Tj ET Q q 0 0 0 rg BT 127.31 271.10 Td (e expect to fund future acquisitions through additional borrowings \(as in our acquisition of Rofin\), existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 259.10 Td (cash balances and cash flows from operations. If required, we will consider the issuance of securities. ) Tj ET Q q 0 0 0 rg BT 458.29 259.10 Td (The extent to which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 247.10 Td (will be willing or able to use our common stock to make acquisitions will depend on its market value at the time and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 235.10 Td (willingness of potential sellers to accept it as full or partial payment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 211.10 Td (On November 7, 2016, we entered into the Credit ) Tj ET Q q 0 0 0 rg BT 250.23 211.10 Td (Agreement by and among us, Coherent Holding GmbH, as borrower \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 199.10 Td (Borrower\), and certain of our direct and indirect subsidiaries from time to time party thereto, as guarantors, the lenders from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 187.10 Td (time to time party thereto, Barclays, as administrative agent and an L/C Issuer) Tj ET Q q 0 0 0 rg BT 361.73 187.10 Td (, BAML) Tj ET Q q 0 0 0 rg BT 395.25 187.10 Td ( as an L/C Issuer) Tj ET Q q 0 0 0 rg BT 462.06 187.10 Td (, and MUFG as an L/C ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 175.10 Td (Issuer) Tj ET Q q 0 0 0 rg BT 73.33 175.10 Td (. ) Tj ET Q q 0 0 0 rg BT 78.15 175.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 123.14 175.10 Td (Agreement provides for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.10 175.10 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.99 175.10 Td ( Euro senior secured term loan facility \(the "Euro ) Tj ET Q q 0 0 0 rg BT 481.66 175.10 Td (T) Tj ET Q q 0 0 0 rg BT 487.07 175.10 Td (erm Loan"\) and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 163.10 Td ($100.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.89 163.10 Td ( senior secured revolving credit facility \("Revolving Credit Facility"\) with a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.03 163.10 Td ($30.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.92 163.10 Td ( letter of credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 151.10 Td (sublimit and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.16 151.10 Td ($10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.05 151.10 Td ( swing line sublimit. ) Tj ET Q q 0 0 0 rg BT 247.04 151.10 Td (The Borrower may increase the aggregate revolving commitments or borrow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 139.10 Td (incremental term loans in an aggregate principal amount not to exceed the sum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.77 139.10 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.67 139.10 Td ( and an amount that would not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 127.10 Td (cause the senior secured net leverage ratio to be greater than 2.75 to 1.00, subject to certain conditions, including obtaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 115.10 Td (additional commitments from the lenders then party to the Credit ) Tj ET Q q 0 0 0 rg BT 312.16 115.10 Td (Agreement or new lenders. On November 7, 2016, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 103.10 Td (Borrower borrowed the full ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.74 103.10 Td (670.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.64 103.10 Td ( Euros under the Euro ) Tj ET Q q 0 0 0 rg BT 306.71 103.10 Td (T) Tj ET Q q 0 0 0 rg BT 312.12 103.10 Td (erm Loan and its proceeds were used to finance the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 91.10 Td (acquisition of Rofin and pay related fees and expenses. On November 7, 2016, we also used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.73 91.10 Td (10.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.62 91.10 Td ( Euro of the capacity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 79.10 Td (under the Revolving Credit Facility for the issuance of a letter of credit.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 336.86 79.10 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 (44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (Loans under the Credit ) Tj ET Q q 0 0 0 rg BT 143.87 742.10 Td (Agreement bear interest, at the Borrower) Tj ET Q q 0 0 0 rg BT 308.06 742.10 Td () Tj ET Q q 0 0 0 rg BT 310.83 742.10 Td (s option, at a rate equal to either \(i\)\(x\) in the case of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (calculations with respect to U.S. Dollars or certain other alternative currencies, the London interbank of) Tj ET Q q 0 0 0 rg BT 464.95 730.10 Td (fered rate \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (LIBOR\) or \(y\) in the case of calculations with respect to the Euro, the euro interbank of) Tj ET Q q 0 0 0 rg BT 409.41 718.10 Td (fered rate \("EURIBOR" and, together ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (with LIBOR, the "Eurocurrency Rate"\) or \(ii\) a base rate \(the Base Rate\) equal to the highest of \(x\) the federal funds rate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (plus 0.50%, \(y\) the prime rate then in ef) Tj ET Q q 0 0 0 rg BT 209.77 694.10 Td (fect and \(z\) the Eurocurrency Rate for loans denominated in U.S. dollars applicable to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (one-month interest period, plus 1.0%, in each case, plus an applicable mar) Tj ET Q q 0 0 0 rg BT 346.67 682.10 Td (gin. ) Tj ET Q q 0 0 0 rg BT 364.27 682.10 Td (The applicable mar) Tj ET Q q 0 0 0 rg BT 441.27 682.10 Td (gin for Euro ) Tj ET Q q 0 0 0 rg BT 492.47 682.10 Td (T) Tj ET Q q 0 0 0 rg BT 497.88 682.10 Td (erm Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (borrowed as Eurocurrency Rate loans, is 3.50% initially) Tj ET Q q 0 0 0 rg BT 273.46 670.10 Td (, and following the first anniversary of the Closing Date ranges from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (3.50% to 3.00% depending on the consolidated total gross leverage ratio at the time of determination. For Euro ) Tj ET Q q 0 0 0 rg BT 496.65 658.10 Td (T) Tj ET Q q 0 0 0 rg BT 502.06 658.10 Td (erm Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (borrowed as Base Rate Loans, the applicable mar) Tj ET Q q 0 0 0 rg BT 247.52 646.10 Td (gin initially is 2.50%, and following the first anniversary of the Closing Date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (ranges from 2.50% to 2.00% depending upon the consolidated total gross leverage ratio at the time of determination. ) Tj ET Q q 0 0 0 rg BT 518.86 634.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (applicable mar) Tj ET Q q 0 0 0 rg BT 108.96 622.10 Td (gin for revolving loans borrowed as Eurocurrency Rate Loans, ranges from 4.25% to 3.75%, and for revolving ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (loans borrowed as Base Rate Loans, ranges from 3.25% to 2.75%, in each case, based on the consolidated total gross leverage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (ratio at the time of determination. Interest on Base Rate Loans is payable quarterly in arrears. Interest on Eurocurrency Rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (Loans is payable at the end of the applicable interest period \(or at three month intervals if the interest period exceeds three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (months\). Interest periods for Eurocurrency Rate loans may be, at the Borrower) Tj ET Q q 0 0 0 rg BT 364.99 574.10 Td () Tj ET Q q 0 0 0 rg BT 367.77 574.10 Td (s option, one, two, three or six months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 550.10 Td (On March 31, 2017, we made a voluntary principal payment of 30.0 million Euros on the Euro ) Tj ET Q q 0 0 0 rg BT 431.40 550.10 Td (T) Tj ET Q q 0 0 0 rg BT 436.81 550.10 Td (erm Loan. ) Tj ET Q q 0 0 0 rg BT 482.35 550.10 Td (As of ) Tj ET Q q 0 0 0 rg BT 506.25 550.10 Td (April 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (2017, the outstanding principal amount of the Euro ) Tj ET Q q 0 0 0 rg BT 256.72 538.10 Td (T) Tj ET Q q 0 0 0 rg BT 262.13 538.10 Td (erm Loan was 636.7 million Euros. ) Tj ET Q q 0 0 0 rg BT 405.45 538.10 Td (As of ) Tj ET Q q 0 0 0 rg BT 429.34 538.10 Td (April 1, 2017, the outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (principal amount of the Revolving Credit Facility was 10.0 million Euro. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (On May 8, 2017, we entered into ) Tj ET Q q 0 0 0 rg BT 184.14 502.10 Td (Amendment No. 1 and ) Tj ET Q q 0 0 0 rg BT 277.55 502.10 Td (W) Tj ET Q q 0 0 0 rg BT 286.19 502.10 Td (aiver \(the Repricing ) Tj ET Q q 0 0 0 rg BT 372.54 502.10 Td (Amendment\) to the Credit ) Tj ET Q q 0 0 0 rg BT 484.18 502.10 Td (Agreement dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.10 Td (as of November 7, 2016 \(the Credit ) Tj ET Q q 0 0 0 rg BT 198.30 490.10 Td (Agreement\) by and among Coherent Holding GmbH, as borrower \(the Borrower\), and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (certain of our direct and indirect subsidiaries from time to time party thereto, as guarantors, the lenders from time to time party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.10 Td (thereto, Barclays Bank PLC, as administrative agent and an L/C Issuer) Tj ET Q q 0 0 0 rg BT 332.30 466.10 Td (, Bank of ) Tj ET Q q 0 0 0 rg BT 371.19 466.10 Td (America, N.A., as an L/C Issuer) Tj ET Q q 0 0 0 rg BT 499.37 466.10 Td (, and MUFG ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.10 Td (Union Bank, N.A., as an L/C Issuer) Tj ET Q q 0 0 0 rg BT 192.21 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 197.03 454.10 Td (The Repricing ) Tj ET Q q 0 0 0 rg BT 256.46 454.10 Td (Amendment amends the Credit ) Tj ET Q q 0 0 0 rg BT 383.10 454.10 Td (Agreement to, among other things, reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.10 Td (the applicable interest rate mar) Tj ET Q q 0 0 0 rg BT 173.09 442.10 Td (gins with respect to the Euro ) Tj ET Q q 0 0 0 rg BT 290.11 442.10 Td (T) Tj ET Q q 0 0 0 rg BT 295.52 442.10 Td (erm Loans to 1.25% for Euro ) Tj ET Q q 0 0 0 rg BT 415.03 442.10 Td (T) Tj ET Q q 0 0 0 rg BT 420.44 442.10 Td (erm Loans maintained as base rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 430.10 Td (loans and 2.25% for Euro ) Tj ET Q q 0 0 0 rg BT 154.79 430.10 Td (T) Tj ET Q q 0 0 0 rg BT 160.21 430.10 Td (erm Loans maintained as eurocurrency rate loans, with stepdowns to 1.00% and 2.00%, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 418.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.66 418.10 Td (, available after May 8, 2018 if the consolidated total gross leverage ratio for Coherent and its restricted subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.10 Td (is less than 1.50:1.00 and extends the period during which a prepayment premium may be required for a Repricing ) Tj ET Q q 0 0 0 rg BT 510.53 406.10 Td (T) Tj ET Q q 0 0 0 rg BT 516.28 406.10 Td (ransaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 394.10 Td (until six months after the ef) Tj ET Q q 0 0 0 rg BT 160.07 394.10 Td (fective date of the Repricing ) Tj ET Q q 0 0 0 rg BT 275.86 394.10 Td (Amendment. In connection with the execution of the Repricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.10 Td (Amendment, we paid arrangement fees of approximately $0.5 million, as well as certain fees and expenses of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.10 Td (administrative agent and the Lenders, in accordance with the terms of the Credit ) Tj ET Q q 0 0 0 rg BT 372.67 370.10 Td (Agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 94.99 346.10 Td (Agreement requires the Borrower to make scheduled quarterly payments on the Euro ) Tj ET Q q 0 0 0 rg BT 437.47 346.10 Td (T) Tj ET Q q 0 0 0 rg BT 442.88 346.10 Td (erm Loan of 0.25% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.10 Td (original principal amount of the Euro ) Tj ET Q q 0 0 0 rg BT 201.45 334.10 Td (T) Tj ET Q q 0 0 0 rg BT 206.86 334.10 Td (erm Loan, with any remaining principal payable at maturity) Tj ET Q q 0 0 0 rg BT 445.29 334.10 Td (. ) Tj ET Q q 0 0 0 rg BT 449.74 334.10 Td (A) Tj ET Q q 0 0 0 rg BT 456.41 334.10 Td ( commitment fee accrues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.10 Td (on any unused portion of the revolving loan commitments under the Credit ) Tj ET Q q 0 0 0 rg BT 351.61 322.10 Td (Agreement at a rate of 0.375% or 0.5% depending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.10 Td (on the consolidated total gross leverage ratio at any time of determination. ) Tj ET Q q 0 0 0 rg BT 349.45 310.10 Td (The Borrower is also obligated to pay other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.10 Td (customary fees for a credit facility of this size and type.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 94.99 274.10 Td (Agreement contains customary af) Tj ET Q q 0 0 0 rg BT 229.48 274.10 Td (firmative covenants, including covenants regarding the payment of taxes and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.10 Td (obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 250.10 Td (negative covenants, including covenants limiting the ability of us and our subsidiaries to, among other things, incur debt, grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.10 Td (liens, make investments, make certain restricted payments, transact with af) Tj ET Q q 0 0 0 rg BT 349.16 238.10 Td (filiates, and sell assets.) Tj ET Q q 0 0 0 rg BT 442.85 238.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 487.84 238.10 Td (Agreement also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.10 Td (requires us and our subsidiaries to maintain a senior secured net leverage ratio as of the last day of each fiscal quarter of less of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 214.10 Td (than or equal to 3.50 to 1.00. ) Tj ET Q q 0 0 0 rg BT 167.58 214.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 212.57 214.10 Td (Agreement contains customary events of default that include, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.10 Td (payment defaults, cross defaults with certain other indebtedness, violation of covenants, inaccuracy of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.10 Td (warranties in any material respect, change in control of us and the Borrower) Tj ET Q q 0 0 0 rg BT 353.65 190.10 Td (, judgment defaults, and bankruptcy and insolvency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.10 Td (events. If an event of default exists, the lenders may require the immediate payment of all Obligations, as defined in the Credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.10 Td (Agreement, and may exercise certain other rights and remedies provided for under the Credit ) Tj ET Q q 0 0 0 rg BT 424.03 166.10 Td (Agreement, the other loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.10 Td (documents and applicable law) Tj ET Q q 0 0 0 rg BT 170.14 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 174.96 154.10 Td (The acceleration of such obligations is automatic upon the occurrence of a bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.10 Td (insolvency event of default. ) Tj ET Q q 0 0 0 rg BT 163.39 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 172.03 142.10 Td (e were in compliance with all covenants at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.19 142.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.80 142.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 118.10 Td (The aggregate consideration paid by us to the former Rofin stockholders in the first quarter of fiscal 2017 was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.10 Td ($904.5 million, excluding related transaction fees and expenses. ) Tj ET Q q 0 0 0 rg BT 308.35 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 316.99 106.10 Td (e also paid $15.3 million due to the cancellation of options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 94.10 Td (held by employees of Rofin. ) Tj ET Q q 0 0 0 rg BT 165.91 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 174.55 94.10 Td (e paid $5.2 million of debt issuance costs in fiscal 2016 and incurred approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.96 94.10 Td ($25.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 82.10 Td ( of debt issuance costs in the first six months of fiscal 2017. In the fourth quarter of fiscal 2016, and the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 70.10 Td (fiscal 2017, we recorded an interest char) Tj ET Q q 0 0 0 rg BT 211.69 70.10 Td (ge of $1.1 million and $2.7 million, respectively) Tj ET Q q 0 0 0 rg BT 404.34 70.10 Td (, in other income \(expense\) in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.10 Td (consolidated statement of operations related to the debt financing commitment. In the first six months of fiscal 2017, we made ) 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 (45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 742.10 Td (debt principal payments $35.6 million, including a voluntary prepayment of $32.0 million, recorded interest expense on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Euro ) Tj ET Q q 0 0 0 rg BT 71.76 730.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.17 730.10 Td (erm Loan of $12.2 million and recorded $1.7 million amortization of debt issuance costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (In relation to the acquisition of Rofin, we paid Barclays, our financial advisor) Tj ET Q q 0 0 0 rg BT 360.07 706.10 Td (, a fee of approximately $9.5 million, $1.0 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (of which was paid upon delivery of the fairness opinion in the second quarter of fiscal 2016, and the remaining portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td (which was paid upon consummation of the acquisition in the first quarter of fiscal 2017; these fees were recorded as SG&A) Tj ET Q q 0 0 0 rg BT 544.31 682.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (expense. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 Td (Additional sources of cash available to us were international currency lines of credit and bank credit facilities totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.16 646.10 Td ($30.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 634.10 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.50 634.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.11 634.10 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.88 634.10 Td ($24.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.77 634.10 Td ( was unused and available. ) Tj ET Q q 0 0 0 rg BT 362.00 634.10 Td (These unsecured international credit facilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (were used in Europe and Japan during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.95 622.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.17 622.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.66 622.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.66 622.10 Td (. ) Tj ET Q q 0 0 0 rg BT 344.11 622.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.00 622.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.61 622.10 Td (, we had utilized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.20 622.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.09 622.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (the international credit facilities as guarantees in Europe. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 586.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.95 586.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.56 586.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.56 586.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.45 586.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.89 586.10 Td ($1) Tj ET Q q 0 0 0 rg BT 198.52 586.10 Td (1.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.41 586.10 Td ( of cash collateralized primarily for domestic and international guarantees was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td (restricted and classified as current and non-current restricted cash, respectively) Tj ET Q q 0 0 0 rg BT 364.77 574.10 Td (, on our condensed consolidated balance sheet.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 50.00 562.10 Td () Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 550.10 Td (Our ratio of current assets to current liabilities was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.21 550.10 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.71 550.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.16 550.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.77 550.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.47 550.10 Td (4.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.97 550.10 Td (:1 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.96 550.10 Td (October1, 2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.67 550.10 Td (. ) Tj ET Q q 0 0 0 rg BT 497.49 550.10 Td (The decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td (our ratio is primarily due to the use of cash in our acquisition of Rofin partially of) Tj ET Q q 0 0 0 rg BT 376.97 538.10 Td (fset by the impact of Rofin's current assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.10 Td (and current liabilities. Our cash and cash equivalents, short-term investments and working capital are as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 443.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 487.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 487.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 487.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 487.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 53.00 457.60 320.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 373.00 457.60 90.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 463.00 457.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 467.00 457.60 90.00 -15.00 re f /GS0 gs 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 500.6 m 463 500.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 500.6 m 557 500.6 l s BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 503.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.35 504.83 Td (April 1, 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.55 504.83 Td (October 1, 2016) Tj ET Q BT /F2 1.00 Tf ET q 0 0 0 rg BT 55.50 490.32 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.15 491.83 Td (\(inthousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 477.27 Td (Cash and cash equivalents) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 375.50 477.28 Td ($) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.65 477.28 Td (432,980) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 477.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 477.27 Td (354,347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 462.27 Td (Short-term investments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 444.15 462.28 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 462.27 Td (45,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 55.50 447.27 Td (Working capital) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 426.65 447.28 Td (844,652) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 447.27 Td (614,145) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.00 431.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 419.10 Td (Contractual Obligations and Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 254.17 419.10 Td (Arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 407.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 395.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 395.10 Td (e have no of) Tj ET Q q 0 0 0 rg BT 107.60 395.10 Td (f-balance sheet arrangements as defined under Regulation S-K of the Securities ) Tj ET Q q 0 0 0 rg BT 427.21 395.10 Td (Act of 1933. ) Tj ET Q q 0 0 0 rg BT 479.80 395.10 Td (The following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 383.10 Td (summarizes our contractual obligations at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.12 383.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.73 383.10 Td ( and the ef) Tj ET Q q 0 0 0 rg BT 314.47 383.10 Td (fect such obligations are expected to have on our liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 371.10 Td (and cash flow in future periods \(in thousands\):) Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 57.50 328.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 328.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 328.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 328.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 328.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 328.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 328.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 328.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 328.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 328.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 57.50 300.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 300.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 300.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 300.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 300.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 300.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 300.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 300.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 300.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 300.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 57.50 272.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 272.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 272.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 272.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 272.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 272.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 272.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 272.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 272.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 272.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 57.50 244.60 180.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 237.50 244.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 297.50 244.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 301.50 244.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 361.50 244.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 365.50 244.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 425.50 244.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 429.50 244.60 60.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 489.50 244.60 4.00 -14.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 493.50 244.60 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 237.5 328.6 m 297.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 328.6 m 361.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 328.6 m 425.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 328.6 m 489.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 328.6 m 553.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 328.6 m 361.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 328.6 m 425.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 328.6 m 489.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 328.6 m 553.5 328.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 244.60000000000002 m 361.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 244.60000000000002 m 425.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 244.60000000000002 m 489.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 244.60000000000002 m 553.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 244.60000000000002 m 297.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 231.60000000000002 m 297.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 237.5 229.60000000000002 m 297.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 244.60000000000002 m 361.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 231.60000000000002 m 361.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301.5 229.60000000000002 m 361.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 244.60000000000002 m 425.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 231.60000000000002 m 425.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 229.60000000000002 m 425.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 244.60000000000002 m 489.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 231.60000000000002 m 489.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 429.5 229.60000000000002 m 489.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 244.60000000000002 m 553.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 231.60000000000002 m 553.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 493.5 229.60000000000002 m 553.5 229.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 258.25 332.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 314.65 340.68 Td (Less than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.50 332.68 Td (1year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.55 332.83 Td (1 to 3years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.55 332.83 Td (3 to 5years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.95 340.68 Td (Mor) Tj ET Q q 0 0 0 rg BT 519.91 340.68 Td (e than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.85 332.68 Td (5years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 319.17 Td (Operating lease payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.15 319.17 Td (51,014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.15 319.17 Td (14,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 319.17 Td (21,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 319.17 Td (9,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 319.17 Td (6,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 305.17 Td (Asset retirement obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.15 305.17 Td (5,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.65 305.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 305.17 Td (2,541) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 305.17 Td (411) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 305.17 Td (2,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 291.17 Td (Debt principal, interest and fees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.15 291.17 Td (878,707) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.15 291.17 Td (18,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 291.17 Td (112,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 291.17 Td (73,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 291.17 Td (673,666) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 277.17 Td (Pension obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.15 277.17 Td (39,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.15 277.17 Td (1,147) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 277.17 Td (3,229) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.15 277.17 Td (4,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 277.17 Td (31,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 263.17 Td (Purchase commitments for inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.15 263.17 Td (138,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 263.17 Td (133,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 263.17 Td (5,029) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 263.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 263.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 249.17 Td (Purchase obligations-other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.15 249.17 Td (13,619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.15 249.17 Td (11,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 249.17 Td (1,080) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 249.17 Td (874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.65 249.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 235.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.60 235.17 Td (1,126,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 235.17 Td (179,477) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 235.17 Td (146,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 235.17 Td (88,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 235.17 Td (713,349) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 207.10 Td (Because of the uncertainty as to the timing of such payments, we have excluded cash payments related to our contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 195.10 Td (obligations for our deferred compensation plans aggregating $31.3 million at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 195.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.26 195.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 171.10 Td (Changes in Financial Condition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 159.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 147.10 Td (Cash provided by operating activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.23 147.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.46 147.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.95 147.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.95 147.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 147.10 Td ($194.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.39 147.10 Td (, which included net income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 135.10 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.83 135.10 Td ($72.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.72 135.10 Td (, cash provided by operating assets and liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.12 135.10 Td ($66.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.01 135.10 Td ( \(primarily increases in deferred income, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 123.10 Td (accounts payable, taxes payable\), depreciation and amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.77 123.10 Td ($50.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.67 123.10 Td (, stock-based compensation expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.95 123.10 Td ($12.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 111.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 111.10 Td (, non-cash restructuring char) Tj ET Q q 0 0 0 rg BT 193.11 111.10 Td (ges of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.77 111.10 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.66 111.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.10 111.10 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.99 111.10 Td ( other partially of) Tj ET Q q 0 0 0 rg BT 406.51 111.10 Td (fset by net increases in deferred tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 99.10 Td (assets of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.66 99.10 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 99.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.27 99.10 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.16 99.10 Td ( gain on business combination and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.70 99.10 Td ($1.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.59 99.10 Td ( net cash flows used by discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 87.10 Td (operations. Cash provided by operating activities during the first six months of fiscal 2016 was $45.6 million, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 75.10 Td (net income of $38.1 million, depreciation and amortization of $17.1 million and stock-based compensation expense of $9.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 63.10 Td (million partially of) Tj ET Q q 0 0 0 rg BT 125.36 63.10 Td (fset by cash used by operating assets and liabilities of $13.0 million and net increases in deferred taxes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 51.10 Td ($5.7 million.) 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 (46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (Cash used in investing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.70 730.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.92 730.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.41 730.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.41 730.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.96 730.10 Td ($745.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.85 730.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.72 730.10 Td ($740.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.62 730.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (net of cash acquired to purchase Rofin, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.83 718.10 Td ($29.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.72 718.10 Td ( used to acquire property and equipment, purchase and upgrade buildings, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 706.10 Td (net of proceeds from dispositions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.75 706.10 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.64 706.10 Td ( net cash flows used by discontinued operations partially of) Tj ET Q q 0 0 0 rg BT 488.91 706.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.34 706.10 Td ($25.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 694.10 Td ( net sales of available-for) Tj ET Q q 0 0 0 rg BT 179.76 694.10 Td (-sale securities. Cash used in investing activities during the first six months of fiscal 2016 was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.10 Td ($21.2 million, which included $16.1 million net used to acquire property and equipment and improve buildings net of proceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td (from dispositions and $5.1 million net purchases of available-for) Tj ET Q q 0 0 0 rg BT 308.91 670.10 Td (-sale securities. ) 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 (Cash provided by financing activities during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.23 646.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.46 646.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.95 646.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.95 646.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.50 646.10 Td ($644.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.39 646.10 Td (, which included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.26 646.10 Td ($682.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 634.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 634.10 Td ( net borrowings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.10 634.10 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.99 634.10 Td ( generated from our employee stock option and purchase plans partially of) Tj ET Q q 0 0 0 rg BT 507.21 634.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 634.10 Td ($25.9 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 622.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.89 622.10 Td ( debt issuance costs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.49 622.10 Td ($15.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.38 622.10 Td ( outflows due to net settlement of restricted stock and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.99 622.10 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.88 622.10 Td ( payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 610.10 Td (subsidiary minority shareholders. Cash provided by financing activities during the first six months of fiscal 2016 was $1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 598.10 Td (million, which included $5.0 million net short-term borrowings and $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 50.00 586.10 Td (stock purchase plans partially of) Tj ET Q q 0 0 0 rg BT 179.22 586.10 Td (fset by $5.4 million net settlement of restricted stock and $2.1 million of debt issuance costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 574.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 562.10 Td (Changes in exchange rates during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.17 562.10 Td (first six months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.40 562.10 Td ( of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.88 562.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.88 562.10 Td ( resulted in a decrease in cash balances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.97 562.10 Td ($1.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.86 562.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.9333333333333333 0.15294117647058825 0.1411764705882353 rg BT 542.36 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 50.00 550.10 Td (Changes in exchange rates during the first six months of fiscal 2016 increased our cash balances by $1.0 million.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.10 Td () Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 50 524.53505859375 m 225.771484375 524.53505859375 l s q 0 0 0 rg BT 50.00 526.10 Td (RECENT) Tj ET Q q 0 0 0 rg BT 91.49 526.10 Td ( ) Tj ET Q q 0 0 0 rg BT 93.44 526.10 Td (ACCOUNTING ST) Tj ET Q q 0 0 0 rg BT 176.88 526.10 Td (ANDARDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.10 Td (See Note 2. Recent ) Tj ET Q q 0 0 0 rg BT 133.03 502.10 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 50.00 490.10 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 485.50 490.10 Td (fects on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.10 Td (condensed consolidated financial position, results of operations and cash flows.) 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 (47) 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 (April1, 2017) 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 (April1, 2017) 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 ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 526.25 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. ) Tj ET Q q 0 0 0 rg BT 123.42 514.25 Td (There were no gross unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 381.73 514.25 Td (-sale debt securities at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.26 514.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.86 514.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 490.25 Td (e are exposed to market risks related to fluctuations in interest rates related to our ) Tj ET Q q 0 0 0 rg BT 386.40 490.25 Td (T) Tj ET Q q 0 0 0 rg BT 391.81 490.25 Td (erm Loan Facility) Tj ET Q q 0 0 0 rg BT 462.80 490.25 Td (. ) Tj ET Q q 0 0 0 rg BT 467.25 490.25 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.14 490.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.75 490.25 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 478.25 Td (owed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.16 478.25 Td ($680.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.05 478.25 Td ( on this loan with an interest rate of 4.25%. ) Tj ET Q q 0 0 0 rg BT 307.83 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 316.47 478.25 Td (e performed a sensitivity analysis on the outstanding portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td (of our debt obligation as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.54 466.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.15 466.25 Td (. Should the current average interest rate increase or decrease by 10%, the resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td (annual increase or decrease to interest expense would be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.77 454.25 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.66 454.25 Td ( as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.27 454.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.88 454.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 430.25 Td (For) Tj ET Q q 0 0 0 rg BT 65.37 430.25 Td (eign curr) Tj ET Q q 0 0 0 rg BT 104.34 430.25 Td (ency exchange risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 406.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 406.25 Td (e 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 50.00 394.25 Td (our products in various global markets. ) Tj ET Q q 0 0 0 rg BT 208.96 394.25 Td (The majority of our sales are transacted in U.S. dollars. However) Tj ET Q q 0 0 0 rg BT 468.75 394.25 Td (, we do generate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 382.25 Td (revenues in other currencies, primarily the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 298.70 382.25 Td (Y) Tj ET Q q 0 0 0 rg BT 304.92 382.25 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 391.66 382.25 Td (W) Tj ET Q q 0 0 0 rg BT 400.30 382.25 Td (on and the Chinese Renminbi. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 370.25 Td (Additionally we have operations in dif) Tj ET Q q 0 0 0 rg BT 203.95 370.25 Td (ferent countries around the world with costs incurred in other local currencies, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 Td (British Pound Sterling, Singapore Dollars and Malaysian Ringgit. ) Tj ET Q q 0 0 0 rg BT 314.99 358.25 Td (As a result, our earnings, cash flows and cash balances are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 346.25 Td (exposed to fluctuations in foreign currency exchange rates. For example, we have significant manufacturing operations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 334.25 Td (Europe so that a weakening Euro is advantageous to the Company) Tj ET Q q 0 0 0 rg BT 317.71 334.25 Td (s financial results. ) Tj ET Q q 0 0 0 rg BT 392.51 334.25 Td (W) Tj ET Q q 0 0 0 rg BT 401.15 334.25 Td (e attempt to limit these exposures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 322.25 Td (through financial market instruments. ) Tj ET Q q 0 0 0 rg BT 202.84 322.25 Td (W) Tj ET Q q 0 0 0 rg BT 211.47 322.25 Td (e utilize derivative instruments, primarily forward contracts with maturities of four ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 310.25 Td (months or less, to manage our exposure associated with anticipated cash flows and net asset and liability positions denominated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 298.25 Td (in foreign currencies. Gains and losses on the forward contracts are mitigated by gains and losses on the underlying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 286.25 Td (instruments. ) Tj ET Q q 0 0 0 rg BT 101.48 286.25 Td (W) Tj ET Q q 0 0 0 rg BT 110.12 286.25 Td (e do not use derivative financial instruments for trading purposes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 274.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 262.25 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 50.00 250.25 Td (transactions generally expected to occur within the next 12months. ) Tj ET Q q 0 0 0 rg BT 322.24 250.25 Td (These cash flow hedges are designated for hedge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 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 50.00 226.25 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 50.00 214.25 Td (earnings. See Note 6 "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 287.08 214.25 Td (Activities".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 190.25 Td (On ) Tj ET Q q 0 0 0 rg BT 64.17 190.25 Td (August 1, 2016, we purchased forward contracts totaling 670.0 million Euro, with a value date of November 30, 2016, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 178.25 Td (limit our foreign exchange risk related to the commitment of our Euro ) Tj ET Q q 0 0 0 rg BT 332.51 178.25 Td (T) Tj ET Q q 0 0 0 rg BT 337.92 178.25 Td (erm Loan \(denominated in Euros\) in an amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 Td (Euro equivalent of $750.0 million to finance the U.S. dollar payment for the acquisition of Rofin. In the fourth quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 154.25 Td (2016, we recognized an unrealized loss of $2.2 million on these forward contracts. In the first quarter of fiscal 2017, we settled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 142.25 Td (these forward contracts at a net gain of $9.1 million, resulting in a realized gain of $1) Tj ET Q q 0 0 0 rg BT 390.63 142.25 Td (1.3 million in the first quarter of fiscal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 130.25 Td (2017. See Note 6 "Derivative Instruments and Hedging ) Tj ET Q q 0 0 0 rg BT 273.20 130.25 Td (Activities".) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 106.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.64 106.25 Td (e do not anticipate any material adverse ef) Tj ET Q q 0 0 0 rg BT 227.54 106.25 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 94.25 Td (flows resulting from the use of these instruments. ) Tj ET Q q 0 0 0 rg BT 250.06 94.25 Td (There can be no assurance that these strategies will be ef) Tj ET Q q 0 0 0 rg BT 476.45 94.25 Td (fective or that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 82.25 Td (transaction losses can be minimized or forecasted accurately) Tj ET Q q 0 0 0 rg BT 291.19 82.25 Td (. ) Tj ET Q q 0 0 0 rg BT 296.01 82.25 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 70.25 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 70.25 Td (ficulties or is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 58.25 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 46.25 Td (economic environment, the risk of failure of a financial party remains high.) 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 (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.95 730.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.56 730.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.82 730.10 Td ($305.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.71 730.10 Td ( of our cash, cash equivalents and short-term investments were heldoutside the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 718.10 Td (U.S. in certain of our foreign operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.96 718.10 Td ($280.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.85 718.10 Td ( of which was denominated in currencies other than the U.S. dollar) Tj ET Q q 0 0 0 rg BT 540.72 718.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.67 694.10 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 50.00 682.10 Td (of operations, cash flows or financial position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 670.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 658.10 Td (The following table provides information about our foreign exchange forward contracts at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.10 658.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.71 658.10 Td (. ) Tj ET Q q 0 0 0 rg BT 470.53 658.10 Td (The table presents the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 646.10 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 50.00 634.10 Td (exchange rate as of the contract maturity date and fair value. ) Tj ET Q q 0 0 0 rg BT 294.15 634.10 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 50.00 622.10 Td (valued at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.32 622.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.93 622.10 Td ( rates.) 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 (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 50.00 586.10 Td () Tj ET Q 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 554.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 554.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 554.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 554.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 554.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 524.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 524.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 524.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 524.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 524.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 494.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 494.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 494.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 50.50 464.60 277.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 327.50 464.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 397.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 401.50 464.60 70.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 471.50 464.60 4.00 -15.00 re f /GS0 gs 0.8 0.9333333333333333 1 rg /GS0 gs 475.50 464.60 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 327.5 554.6 m 397.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 554.6 m 471.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 554.6 m 545.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 327.5 554.6 m 397.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 554.6 m 471.5 554.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.5 554.6 m 545.5 554.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 331.75 566.83 Td (A) Tj ET Q q 0 0 0 rg BT 336.93 566.83 Td (verageContract) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.00 558.83 Td (Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.20 566.83 Td (U.S.Notional) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.10 558.83 Td (Contract) Tj ET Q q 0 0 0 rg BT 442.61 558.83 Td (V) Tj ET Q q 0 0 0 rg BT 447.65 558.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.85 566.83 Td (U.S.) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.15 558.83 Td (Fair) Tj ET Q q 0 0 0 rg BT 506.67 558.83 Td () Tj ET Q q 0 0 0 rg BT 508.52 558.83 Td (V) Tj ET Q q 0 0 0 rg BT 513.56 558.83 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 544.27 Td (Non-Designated - For US Dollars) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 529.27 Td (Euro) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 529.27 Td (1.0604) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 529.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 529.32 Td (\(102,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 529.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 529.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 529.27 Td (778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 514.27 Td (Japanese Yen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 514.27 Td (111.8689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 514.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 514.27 Td (15,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 514.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 514.32 Td (\(72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 514.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 499.27 Td (South Korean Won) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.65 499.27 Td (1,156.4845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 499.27 Td (20,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 499.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 499.32 Td (\(690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 499.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 484.27 Td (Chinese Renminbi) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 484.27 Td (6.8950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 484.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 484.27 Td (8,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 484.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 484.32 Td (\(9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 484.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 469.27 Td (Singapore Dollar) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 469.27 Td (1.4000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.80 469.32 Td (\(5,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 469.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 469.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 469.27 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 53.00 454.27 Td (Malaysian Ringgit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.15 454.27 Td (4.4621) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 454.27 Td (2,068) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.00 454.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 454.32 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 454.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET 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 (49) 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 (April1, 2017) 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 (In November 2016, we completed the acquisition of Rofin-Sinar ) Tj ET Q q 0 0 0 rg BT 310.31 550.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.72 550.25 Td (echnologies, Inc. \(Rofin\). ) Tj ET Q q 0 0 0 rg BT 431.89 550.25 Td (W) Tj ET Q q 0 0 0 rg BT 440.53 550.25 Td (e are in the process of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 538.25 Td (integrating Rofin into our systems and control environment as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.07 538.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.68 538.25 Td (. ) Tj ET Q q 0 0 0 rg BT 372.00 538.25 Td (W) Tj ET Q q 0 0 0 rg BT 380.63 538.25 Td (e believe that we have taken the necessary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 526.25 Td (steps to monitor and maintain appropriate internal control over financial reporting during this integration. Other than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 514.25 Td (impact of this business acquisition, there has been no change in our internal control over financial reporting that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 502.25 Td (materially af) Tj ET Q q 0 0 0 rg BT 100.63 502.25 Td (fected, or are reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 287.58 502.25 Td (fect, our internal control over financial reporting during the three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 490.25 Td (months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.77 490.25 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.38 490.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 466.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 466.25 Td (Inher) Tj ET Q q 0 0 0 rg BT 76.21 466.25 Td (ent Limitations over) Tj ET Q q 0 0 0 rg BT 162.69 466.25 Td ( Internal Contr) Tj ET Q q 0 0 0 rg BT 228.06 466.25 Td (ol) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 454.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 442.25 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 50.00 430.25 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 50.00 418.25 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 50.00 406.25 Td (or detect misstatements. ) Tj ET Q q 0 0 0 rg BT 148.31 406.25 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 309.47 406.25 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 50.00 394.25 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 50.00 382.25 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 50.00 370.25 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 557.32 370.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 358.25 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 50.00 346.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 334.25 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 334.25 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 95.00 322.25 Td (dispositions of our assets;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 310.25 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 310.25 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 95.00 298.25 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 95.00 286.25 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 68.00 274.25 Td (\(iii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.00 274.25 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 95.00 262.25 Td (disposition of our assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 307.26 262.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 238.25 Td (Management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 240.87 238.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 353.43 238.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 371.34 238.25 Td (, does not expect that our internal controls will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 226.25 Td (prevent or detect all errors and all fraud. ) Tj ET Q q 0 0 0 rg BT 212.98 226.25 Td (A) Tj ET Q q 0 0 0 rg BT 219.65 226.25 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 50.00 214.25 Td (reasonable, not absolute, assurance that the objectives of the control system are met. Further) Tj ET Q q 0 0 0 rg BT 418.37 214.25 Td (, the design of a control system ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 202.25 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 50.00 190.25 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 50.00 178.25 Td (all control issues and instances of fraud, if any) Tj ET Q q 0 0 0 rg BT 235.13 178.25 Td (, have been detected. ) Tj ET Q q 0 0 0 rg BT 320.64 178.25 Td (Also, any evaluation of the ef) Tj ET Q q 0 0 0 rg BT 438.76 178.25 Td (fectiveness of controls in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 166.25 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 50.00 154.25 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 50.00 142.25 Td () 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 (50) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 742.25 Td (P) Tj ET Q q 0 0 0 rg BT 55.37 742.25 Td (AR) Tj ET Q q 0 0 0 rg BT 69.46 742.25 Td (T) Tj ET Q q 0 0 0 rg BT 75.95 742.25 Td (II. OTHER INFORMA) Tj ET Q q 0 0 0 rg BT 177.99 742.25 Td (TION) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 730.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 718.25 Td (ITEM 1. LEGAL) Tj ET Q q 0 0 0 rg BT 123.63 718.25 Td ( PROCEEDINGS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 694.25 Td (Information with respect to this item may be found in Note 1) Tj ET Q q 0 0 0 rg BT 293.19 694.25 Td (1 to our condensed consolidated financial statements in Part I, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 682.25 Td (Item 1 of this report and is incorporated herein by reference.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (ITEM 1A. RISK F) Tj ET Q q 0 0 0 rg BT 128.21 648.25 Td (ACT) Tj ET Q q 0 0 0 rg BT 149.14 648.25 Td (ORS) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (Y) Tj ET Q q 0 0 0 rg BT 54.14 624.25 Td (ou should car) Tj ET Q q 0 0 0 rg BT 108.77 624.25 Td (efully consider the followings risks when considering an investment in our Common Stock. These risks could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 612.25 Td (materially affect our business, r) Tj ET Q q 0 0 0 rg BT 176.62 612.25 Td (esults of operations or financial condition, cause the trading price of our Common Stock to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 600.25 Td (decline materially or cause our actual r) Tj ET Q q 0 0 0 rg BT 208.54 600.25 Td (esults to differ materially fr) Tj ET Q q 0 0 0 rg BT 318.17 600.25 Td (om those expected or those expr) Tj ET Q q 0 0 0 rg BT 446.37 600.25 Td (essed in any forwar) Tj ET Q q 0 0 0 rg BT 524.60 600.25 Td (d-) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (looking statements made by us. These risks ar) Tj ET Q q 0 0 0 rg BT 234.94 588.25 Td (e not exclusive, and additional risks to which we ar) Tj ET Q q 0 0 0 rg BT 440.10 588.25 Td (e subject include, but ar) Tj ET Q q 0 0 0 rg BT 536.10 588.25 Td (e not ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 576.25 Td (limited to, the factors mentioned under Forwar) Tj ET Q q 0 0 0 rg BT 243.28 576.25 Td (d-Looking Statements and the risk of our businesses described elsewher) Tj ET Q q 0 0 0 rg BT 535.94 576.25 Td (e in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 564.25 Td (this annual r) Tj ET Q q 0 0 0 rg BT 100.25 564.25 Td (eport. ) Tj ET Q q 0 0 0 rg BT 126.17 564.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 175.06 564.25 Td (, these risks and uncertainties described her) Tj ET Q q 0 0 0 rg BT 351.05 564.25 Td (ein ar) Tj ET Q q 0 0 0 rg BT 374.29 564.25 Td (e not the only ones facing us. Other events ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 552.25 Td (that we do not curr) Tj ET Q q 0 0 0 rg BT 125.79 552.25 Td (ently anticipate or that we curr) Tj ET Q q 0 0 0 rg BT 250.13 552.25 Td (ently deem immaterial also may affect our business, r) Tj ET Q q 0 0 0 rg BT 463.89 552.25 Td (esults of operations or ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 540.25 Td (financial condition.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 49.5 501.28505859375 m 282.5224609375 501.28505859375 l s q 0 0 0 rg BT 49.50 502.85 Td (RISKS RELA) Tj ET Q q 0 0 0 rg BT 109.06 502.85 Td (TED ) Tj ET Q q 0 0 0 rg BT 131.94 502.85 Td (T) Tj ET Q q 0 0 0 rg BT 138.43 502.85 Td (O ) Tj ET Q q 0 0 0 rg BT 148.52 502.85 Td (THE MERGER ) Tj ET Q q 0 0 0 rg BT 219.46 502.85 Td (WITH ROFIN) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 482.85 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 482.85 Td (e may not be able to integrate the business of Rofin successfully with our own or realize the anticipated benefits of the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 470.85 Td (merger) Tj ET Q q 0 0 0 rg BT 78.39 470.85 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.85 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 450.85 Td (e will be required to devote significant management attention and resources to integrating our business practices with those of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.85 Td (Rofin. Potential dif) Tj ET Q q 0 0 0 rg BT 126.26 438.85 Td (ficulties that we may encounter as part of the integration process include the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.85 Td (the inability to successfully combine our business with Rofin in a manner that permits the combined company to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 406.85 Td (achieve the full syner) Tj ET Q q 0 0 0 rg BT 171.12 406.85 Td (gies and other benefits anticipated to result from the mer) Tj ET Q q 0 0 0 rg BT 397.25 406.85 Td (ger;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 386.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 386.85 Td (complexities associated with managing the combined businesses, including dif) Tj ET Q q 0 0 0 rg BT 399.98 386.85 Td (ficulty addressing possible dif) Tj ET Q q 0 0 0 rg BT 520.06 386.85 Td (ferences ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 374.85 Td (in corporate cultures and management philosophies and the challenge of integrating products, services, complex and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 362.85 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 362.85 Td (ferent information technology systems \(including dif) Tj ET Q q 0 0 0 rg BT 307.59 362.85 Td (ferent Enterprise Management Systems\), control and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 350.85 Td (compliance processes, technology) Tj ET Q q 0 0 0 rg BT 221.19 350.85 Td (, networks and other assets of each of the companies in a cohesive manner; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 330.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 330.85 Td (potential unknown liabilities and unforeseen increased expenses or delays related to the mer) Tj ET Q q 0 0 0 rg BT 453.53 330.85 Td (ger and the integration of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 318.85 Td (Rofin, including as a result of the requirement for holding separate Rofin) Tj ET Q q 0 0 0 rg BT 380.42 318.85 Td (s business located in Hull, England.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.85 Td (In addition, we have operated independently prior to the mer) Tj ET Q q 0 0 0 rg BT 292.01 298.85 Td (ger and it is possible that the integration process following the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.85 Td (mer) Tj ET Q q 0 0 0 rg BT 64.87 286.85 Td (ger could result in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 266.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.85 Td (diversion of the attention of our management; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 246.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 246.85 Td (the disruption of, or the loss of momentum in, our business or inconsistencies in standards, controls, procedures or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 234.85 Td (policies, any of which could adversely af) Tj ET Q q 0 0 0 rg BT 249.43 234.85 Td (fect our ability to maintain relationships with customers, suppliers, employees ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 222.85 Td (and other constituencies or our ability to achieve the anticipated benefits of the mer) Tj ET Q q 0 0 0 rg BT 418.81 222.85 Td (ger) Tj ET Q q 0 0 0 rg BT 431.18 222.85 Td (, or could reduce our earnings or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 210.85 Td (otherwise adversely af) Tj ET Q q 0 0 0 rg BT 175.28 210.85 Td (fect our business and financial results. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 190.85 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 190.85 Td (In addition, prior to the mer) Tj ET Q q 0 0 0 rg BT 196.40 190.85 Td (ger) Tj ET Q q 0 0 0 rg BT 208.77 190.85 Td (, Rofin) Tj ET Q q 0 0 0 rg BT 239.33 190.85 Td (s business faced risks and uncertainties, including those faced by our business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 178.85 Td (and identified below) Tj ET Q q 0 0 0 rg BT 167.05 178.85 Td (. Rofin) Tj ET Q q 0 0 0 rg BT 197.60 178.85 Td (s business may not meet future expectations due to these factors despite our integration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 166.85 Td (ef) Tj ET Q q 0 0 0 rg BT 93.09 166.85 Td (forts.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 146.85 Td (Our future results will suf) Tj ET Q q 0 0 0 rg BT 156.58 146.85 Td (fer if we do not ef) Tj ET Q q 0 0 0 rg BT 228.88 146.85 Td (fectively manage our expanded operations following the merger) Tj ET Q q 0 0 0 rg BT 490.81 146.85 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.85 Td (Following the mer) Tj ET Q q 0 0 0 rg BT 123.20 126.85 Td (ger) Tj ET Q q 0 0 0 rg BT 135.57 126.85 Td (, the size and complexity of the business of the combined company has increased significantly) Tj ET Q q 0 0 0 rg BT 511.76 126.85 Td (. Our future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.85 Td (success depends, in part, upon our ability to manage this expanded business, which will pose substantial challenges for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.85 Td (management, including challenges related to the management and monitoring of new operations and associated increased costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.85 Td (and complexity) Tj ET Q q 0 0 0 rg BT 110.78 90.85 Td (. ) Tj ET Q q 0 0 0 rg BT 115.60 90.85 Td (There can be no assurances that we will be successful or that we will realize the expected syner) Tj ET Q q 0 0 0 rg BT 496.65 90.85 Td (gies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.85 Td (benefits anticipated from the mer) Tj ET Q q 0 0 0 rg BT 182.04 78.85 Td (ger) Tj ET Q q 0 0 0 rg BT 194.26 78.85 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 58.85 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 58.85 Td (e have incurred and will continue to incur substantial expenses related to the merger with and the integration of Rofin.) Tj ET Q 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 (51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 742.10 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 403.41 742.10 Td (ger and the integration of Rofin. ) Tj ET Q q 0 0 0 rg BT 534.58 742.10 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (are a lar) Tj ET Q q 0 0 0 rg BT 81.51 730.10 Td (ge number of processes, policies, procedures, operations, technologies and systems that will need to be integrated, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (including purchasing, accounting and finance, sales, payroll, pricing, marketing and employee benefits. ) Tj ET Q q 0 0 0 rg BT 465.30 718.10 Td (While we have assumed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (that a certain level of expenses will be incurred, there are many factors beyond our control that could af) Tj ET Q q 0 0 0 rg BT 463.32 706.10 Td (fect the total amount or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (the timing of the integration expenses. Moreover) Tj ET Q q 0 0 0 rg BT 244.32 694.10 Td (, many of the expenses that will be incurred are, by their nature, dif) Tj ET Q q 0 0 0 rg BT 512.94 694.10 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (estimate accurately) Tj ET Q q 0 0 0 rg BT 125.75 682.10 Td (. ) Tj ET Q q 0 0 0 rg BT 130.57 682.10 Td (These expenses could, particularly in the near term, exceed the savings we expect to achieve from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (elimination of duplicative expenses and the realization of economies of scale and cost savings. ) Tj ET Q q 0 0 0 rg BT 430.03 670.10 Td (These integration expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (could result in significant char) Tj ET Q q 0 0 0 rg BT 170.95 658.10 Td (ges to earnings which we cannot currently quantify) Tj ET Q q 0 0 0 rg BT 374.96 658.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 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 49.50 626.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 98.46 626.10 Td (fect our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (In accordance with generally accepted accounting principles, we have accounted for the Rofin acquisition using the purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (method of accounting, which will result in char) Tj ET Q q 0 0 0 rg BT 238.71 594.10 Td (ges to earnings that could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 447.61 594.10 Td (fect on the market value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 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 49.50 570.10 Td (purchase price of Rofin) Tj ET Q q 0 0 0 rg BT 146.41 570.10 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 49.50 558.10 Td (date. ) Tj ET Q q 0 0 0 rg BT 70.97 558.10 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 525.36 558.10 Td (W) Tj ET Q q 0 0 0 rg BT 534.00 558.10 Td (e will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 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 49.50 534.10 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 49.50 522.10 Td (lives becomes impaired, we may be required to incur material char) Tj ET Q q 0 0 0 rg BT 316.16 522.10 Td (ges relating to the impairment of those assets. ) Tj ET Q q 0 0 0 rg BT 501.21 522.10 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (depreciation, amortization and potential impairment char) Tj ET Q q 0 0 0 rg BT 277.01 510.10 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 49.50 490.10 Td (Our indebtedness following the merger is substantially greater than our indebtedness prior to the merger) Tj ET Q q 0 0 0 rg BT 479.55 490.10 Td (. This increased ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (level of indebtedness could adversely af) Tj ET Q q 0 0 0 rg BT 211.22 478.10 Td (fect us, including by decreasing our business flexibility) Tj ET Q q 0 0 0 rg BT 436.97 478.10 Td (, and will increase our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (borrowing costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.10 Td (In November 2016 we entered into the Credit ) Tj ET Q q 0 0 0 rg BT 233.34 446.10 Td (Agreement which provided for a 670 million Euro term loan, all of which was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (drawn, and a $100 million revolving credit facility) Tj ET Q q 0 0 0 rg BT 251.02 434.10 Td (, under which a 10 million Euro letter of credit has been issued. In May 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (we entered into ) Tj ET Q q 0 0 0 rg BT 113.09 422.10 Td (Amendment No. 1 and ) Tj ET Q q 0 0 0 rg BT 206.50 422.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.14 422.10 Td (aiver to the credit agreement, which amended certain provisions of the credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (agreement. Due to principal payments made in the first six months of fiscal 2017, as of the time of the amendment, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (outstanding principal of the Euro ) Tj ET Q q 0 0 0 rg BT 184.01 398.10 Td (T) Tj ET Q q 0 0 0 rg BT 189.42 398.10 Td (erm Loan was decreased to 636.7 million Euros. See item 1. FINANCIAL) Tj ET Q q 0 0 0 rg BT 486.21 398.10 Td ( ST) Tj ET Q q 0 0 0 rg BT 499.58 398.10 Td (A) Tj ET Q q 0 0 0 rg BT 505.69 398.10 Td (TEMENTS. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (Note 19, Subsequent Event for a discussion of ) Tj ET Q q 0 0 0 rg BT 245.30 386.10 Td (Amendment No. 1 and ) Tj ET Q q 0 0 0 rg BT 338.71 386.10 Td (W) Tj ET Q q 0 0 0 rg BT 347.35 386.10 Td (aiver to the Credit ) Tj ET Q q 0 0 0 rg BT 421.77 386.10 Td (Agreement entered into on May 8, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (2017. ) Tj ET Q q 0 0 0 rg BT 74.32 374.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.96 374.10 Td (e may incur additional indebtedness in the future by accessing the revolving credit facility under the Credit ) Tj ET Q q 0 0 0 rg BT 512.55 374.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (and/or entering into new financing arrangements. Our ability to pay interest and repay the principal of our current indebtedness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (is dependent upon our ability to manage our business operations and the ongoing interest rate environment. ) Tj ET Q q 0 0 0 rg BT 480.61 350.10 Td (There can be no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (assurance that we will be able to manage any of these risks successfully) Tj ET Q q 0 0 0 rg BT 335.98 338.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 94.49 318.10 Td (Agreement contains customary af) Tj ET Q q 0 0 0 rg BT 228.98 318.10 Td (firmative covenants, including covenants regarding the payment of taxes and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (obligations, maintenance of insurance, reporting requirements and compliance with applicable laws and regulations, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (negative covenants, including covenants limiting the ability of us and our subsidiaries to, among other things, incur debt, grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (liens, make investments, make certain restricted payments, transact with af) Tj ET Q q 0 0 0 rg BT 348.66 282.10 Td (filiates, and sell assets. ) Tj ET Q q 0 0 0 rg BT 442.35 282.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 487.34 282.10 Td (Agreement also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (requires us and our subsidiaries to maintain a senior secured net leverage ratio as of the last day of each fiscal quarter of less of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (than or equal to 3.50 to 1.00.) Tj ET Q q 0 0 0 rg BT 169.58 258.10 Td (The Credit ) Tj ET Q q 0 0 0 rg BT 214.57 258.10 Td (Agreement contains customary events of default that include, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (payment defaults, cross defaults with certain other indebtedness, violation of covenants, inaccuracy of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (warranties in any material respect, change in control of the Company and the Borrower) Tj ET Q q 0 0 0 rg BT 397.86 234.10 Td (, judgment defaults, and bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (insolvency events.If an event of default exists, the lenders may require the immediate payment of all Obligations, as defined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (the Credit ) Tj ET Q q 0 0 0 rg BT 91.16 210.10 Td (Agreement, and may exercise certain other rights and remedies provided for under the Credit ) Tj ET Q q 0 0 0 rg BT 465.19 210.10 Td (Agreement, the other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (loan documents and applicable law) Tj ET Q q 0 0 0 rg BT 189.36 198.10 Td (. ) Tj ET Q q 0 0 0 rg BT 194.18 198.10 Td (The acceleration of such obligations is automatic upon the occurrence of a bankruptcy and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (insolvency event of default. ) Tj ET Q q 0 0 0 rg BT 162.89 186.10 Td (There can be no assurance that we will have suf) Tj ET Q q 0 0 0 rg BT 354.02 186.10 Td (ficient financial resources or we will be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (arrange financing to repay our borrowings at such time. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 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 469.76 154.10 Td (ger in comparison to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (that prior to the mer) Tj ET Q q 0 0 0 rg BT 129.29 142.10 Td (ger will have the ef) Tj ET Q q 0 0 0 rg BT 206.30 142.10 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 49.50 130.10 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 49.50 118.10 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 49.50 106.10 Td (service our indebtedness or that of Rofin individually prior to the mer) Tj ET Q q 0 0 0 rg BT 327.86 106.10 Td (ger) Tj ET Q q 0 0 0 rg BT 340.08 106.10 Td (. ) Tj ET Q q 0 0 0 rg BT 344.90 106.10 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 94.10 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 82.10 Td (and other activities and may create competitive disadvantages for us relative to other companies with lower debt levels.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 62.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 62.10 Td (e may not be able to divest the Rofin business located in Hull, England on favorable terms.) 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 (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (On October26, 2016, the European Commission approved under the EU Mer) Tj ET Q q 0 0 0 rg BT 359.53 742.10 Td (ger Regulation our acquisition of Rofin, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (conditional on the divestment of Rofin) Tj ET Q q 0 0 0 rg BT 206.98 730.10 Td (s low power CO) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 272.25 728.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.50 730.10 Td ( laser business based in Hull, United Kingdom \(the Hull Business\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (after the closing of the acquisition.) Tj ET Q q 0 0 0 rg BT 190.67 718.10 Td (W) Tj ET Q q 0 0 0 rg BT 199.30 718.10 Td (e are required to hold the Hull Business separate until such time as it is divested. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (fiscal years 2013 through 2015, the Hull Business had annual revenues of approximately 23-25 million British Pound Sterling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (and, accordingly) Tj ET Q q 0 0 0 rg BT 115.49 694.10 Td (, we will not have the revenue from the Hull Business once it is sold. If we are unable to successfully timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (divest the Hull Business or if the European Commission does not approve a proposed sale thereof, then a divestiture trustee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (may be appointed by the European Commission and the terms for any sale of the Hull Business will be at the discretion of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (trustee. During the period of time in which we are holding the Hull Business separate, the conditions for such structure may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (a distraction on certain members of our senior management team.) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 49.5 624.53505859375 m 297.9130859375 624.53505859375 l s q 0 0 0 rg BT 49.50 626.10 Td (BUSINESS ENVIRONMENT) Tj ET Q q 0 0 0 rg BT 177.41 626.10 Td ( ) Tj ET Q q 0 0 0 rg BT 179.35 626.10 Td (AND INDUSTR) Tj ET Q q 0 0 0 rg BT 248.18 626.10 Td (Y) Tj ET Q q 0 0 0 rg BT 255.03 626.10 Td ( ) Tj ET Q q 0 0 0 rg BT 257.35 626.10 Td (TRENDS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 602.10 Td (Our) Tj ET Q q 0 0 0 rg BT 67.10 602.10 Td ( operating r) Tj ET Q q 0 0 0 rg BT 117.46 602.10 Td (esults, including net sales, net income \(loss\) and adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 398.89 602.10 Td ( in dollars and as a per) Tj ET Q q 0 0 0 rg BT 495.96 602.10 Td (centage of net ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 590.10 Td (sales, as well as our) Tj ET Q q 0 0 0 rg BT 131.82 590.10 Td ( stock price have varied in the past, and our) Tj ET Q q 0 0 0 rg BT 318.31 590.10 Td ( futur) Tj ET Q q 0 0 0 rg BT 342.85 590.10 Td (e operating r) Tj ET Q q 0 0 0 rg BT 397.65 590.10 Td (esults, including those r) Tj ET Q q 0 0 0 rg BT 498.04 590.10 Td (esults fr) Tj ET Q q 0 0 0 rg BT 532.02 590.10 Td (om the ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 578.10 Td (newly acquir) Tj ET Q q 0 0 0 rg BT 104.60 578.10 Td (ed Rofin business, will continue to be subject to quarterly and annual fluctuations based upon numer) Tj ET Q q 0 0 0 rg BT 534.49 578.10 Td (ous ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 566.10 Td (factors, including those discussed in this Item 1A) Tj ET Q q 0 0 0 rg BT 256.75 566.10 Td ( and thr) Tj ET Q q 0 0 0 rg BT 291.02 566.10 Td (oughout this r) Tj ET Q q 0 0 0 rg BT 350.85 566.10 Td (eport. Our) Tj ET Q q 0 0 0 rg BT 396.22 566.10 Td ( stock price will continue to be subject ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 554.10 Td (to daily variations as well. Our) Tj ET Q q 0 0 0 rg BT 180.43 554.10 Td ( futur) Tj ET Q q 0 0 0 rg BT 204.97 554.10 Td (e operating r) Tj ET Q q 0 0 0 rg BT 259.78 554.10 Td (esults and stock price may not follow any past tr) Tj ET Q q 0 0 0 rg BT 465.43 554.10 Td (ends or) Tj ET Q q 0 0 0 rg BT 496.64 554.10 Td ( meet our) Tj ET Q q 0 0 0 rg BT 537.00 554.10 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 542.10 Td (guidance and expectations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.10 Td (Our net sales and operating results, such as adjusted EBITDA) Tj ET Q q 0 0 0 rg BT 296.11 518.10 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 49.50 506.10 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 533.58 506.10 Td (W) Tj ET Q q 0 0 0 rg BT 542.22 506.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.10 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 521.38 494.10 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (predict, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 470.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 458.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 458.10 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 85.50 446.10 Td (we serve;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 434.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 422.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 422.10 Td (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 67.50 410.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 398.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 398.10 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 85.50 386.10 Td (limited source components, in a timely manner) Tj ET Q q 0 0 0 rg BT 273.11 386.10 Td (, in the quantity) Tj ET Q q 0 0 0 rg BT 335.23 386.10 Td (, quality and prices desired;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 362.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 362.10 Td (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 67.50 338.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.10 Td (the concentration of a significant amount of our backlog, and resultant net sales, with a few customers in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.10 Td (Microelectronics market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 314.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 302.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.10 Td (rescheduling of shipments or cancellation of orders by our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 278.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 278.10 Td (fluctuations in our product mix;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 266.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 254.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 254.10 Td (the ability of our customers' other suppliers to provide suf) Tj ET Q q 0 0 0 rg BT 316.80 254.10 Td (ficient material to support our customers' products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 242.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 230.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 230.10 Td (currency fluctuations and stability) Tj ET Q q 0 0 0 rg BT 221.20 230.10 Td (, in particular the Euro, the Japanese ) Tj ET Q q 0 0 0 rg BT 368.83 230.10 Td (Y) Tj ET Q q 0 0 0 rg BT 375.05 230.10 Td (en, the South Korean ) Tj ET Q q 0 0 0 rg BT 461.79 230.10 Td (W) Tj ET Q q 0 0 0 rg BT 470.43 230.10 Td (on, the Chinese RMB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 218.10 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 67.50 206.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 194.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 194.10 Td (commodity pricing;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 182.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 170.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 170.10 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 85.50 158.10 Td (markets, pricing pressures and other competitive factors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 146.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 134.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 134.10 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 85.50 122.10 Td (defects;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 98.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 98.10 Td (our ability to manage our manufacturing capacity and that of our suppliers, including our ability to successfully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 86.10 Td (expand our manufacturing capacity in Gttingen, Germany and add optics fabrication capacity at our site in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 74.10 Td (Richmond, California;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 50.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 50.10 Td (our ability to successfully internally transfer products as part of our integration ef) Tj ET Q q 0 0 0 rg BT 410.78 50.10 Td (forts;) 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 (53) 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 (our reliance on contract manufacturing;) 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 reliance in part upon the ability of our OEM customers to develop and sell systems that incorporate our laser ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 694.10 Td (products;) 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 customers' ability to manage their susceptibility to adverse economic conditions;) 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 rate of market acceptance of our new products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 622.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.10 Td (the ability of our customers to pay for our products;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 610.10 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 (expenses associated with acquisition-related activities;) 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 (seasonal sales trends;) 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 (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 67.50 538.10 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 (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 85.50 514.10 Td (products by us or our competitors;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.10 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 (our ability to control expenses;) 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 (the level of capital spending of our customers;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.10 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 (potential excess and/or obsolescence of our inventory;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.10 Td (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 85.50 406.10 Td (and business;) 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 (costs related to acquisitions of technology or businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.10 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 (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 67.50 346.10 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 (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 67.50 322.10 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 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 85.50 298.10 Td (universities;) 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 (continued government spending on defense-related and scientific research projects where we are a subcontractor;) 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 (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 67.50 238.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 226.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 Td (changes in policy) Tj ET Q q 0 0 0 rg BT 154.83 226.10 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 85.50 214.10 Td (standards;) 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 (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 67.50 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 166.10 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 67.50 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 Td (managing our 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 85.50 130.10 Td (laws;) 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 (impact of government economic policies on macroeconomic conditions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 82.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 Td (costs and expenses from litigation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 58.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 58.10 Td (costs 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 46.10 Td (business;) 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 (54) 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 (government support of alternative ener) Tj ET Q q 0 0 0 rg BT 240.82 730.10 Td (gy industries, such as solar;) 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 (negative impacts related to the recent Brexit vote by the United Kingdom, particularly with regard to sales from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 694.10 Td (Glasgow) Tj ET Q q 0 0 0 rg BT 120.40 694.10 Td (, Scotland facility to other jurisdictions and purchases of supplies from outside the United Kingdom by such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (facility; ) 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 (the future impact of legislation, rulemaking, and changes in accounting, tax, defense procurement, trade or export ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (policies; and) 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 (distraction of management related to acquisition, integration or divestment activities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 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 49.50 586.10 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 476.43 586.10 Td (, the adverse impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 49.50 562.10 Td (the shortfall. ) Tj ET Q q 0 0 0 rg BT 102.36 562.10 Td (W) Tj ET Q q 0 0 0 rg BT 111.00 562.10 Td (e also base our manufacturing on our forecasted product mix for the quarter) Tj ET Q q 0 0 0 rg BT 413.11 562.10 Td (. If the actual product mix varies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 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 406.21 550.10 Td (, which would result in delays in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (shipment of our products. ) Tj ET Q q 0 0 0 rg BT 154.21 538.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 203.55 538.10 Td (, variations in timing of sales, particularly for our higher priced, higher mar) Tj ET Q q 0 0 0 rg BT 504.67 538.10 Td (gin products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (can cause significant fluctuations in quarterly operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 514.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 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 383.63 502.10 Td (-to-quarter and year) Tj ET Q q 0 0 0 rg BT 462.83 502.10 Td (-to-year comparisons of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (our historical operating results may not be meaningful. ) Tj ET Q q 0 0 0 rg BT 271.02 490.10 Td (Y) Tj ET Q q 0 0 0 rg BT 277.24 490.10 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 49.50 478.10 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 49.50 466.10 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 49.50 454.10 Td (global equity markets have experienced significant price and volume fluctuations that have af) Tj ET Q q 0 0 0 rg BT 423.63 454.10 Td (fected the stock prices of many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (technology companies both in and outside our industry) Tj ET Q q 0 0 0 rg BT 268.54 442.10 Td (. ) Tj ET Q q 0 0 0 rg BT 273.36 442.10 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 49.50 430.10 Td (and the performance of particular companies subject to these stock price fluctuations. ) Tj ET Q q 0 0 0 rg BT 393.36 430.10 Td (These factors, as well as general ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 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 49.50 406.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 406.10 Td (fect on the market price of our stock in the future.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 382.10 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 49.50 370.10 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 49.50 358.10 Td (supply shortages or price fluctuations that could adversely af) Tj ET Q q 0 0 0 rg BT 299.88 358.10 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 49.50 346.10 Td (customers' delivery requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 322.10 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 49.50 310.10 Td (limited source suppliers, both internal and external. In particular) Tj ET Q q 0 0 0 rg BT 306.24 310.10 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 49.50 298.10 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 49.50 286.10 Td (production in line with our customers) Tj ET Q q 0 0 0 rg BT 202.34 286.10 Td ( demands. ) Tj ET Q q 0 0 0 rg BT 245.21 286.10 Td (This can become acute during times of high growth in our customers) Tj ET Q q 0 0 0 rg BT 523.01 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 49.50 262.10 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 49.50 250.10 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 49.50 238.10 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 49.50 226.10 Td (such as the flooding in ) Tj ET Q q 0 0 0 rg BT 142.36 226.10 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 49.50 214.10 Td (power loss in the Eastern part of the United States in recent years. ) Tj ET Q q 0 0 0 rg BT 315.35 214.10 Td (W) Tj ET Q q 0 0 0 rg BT 323.99 214.10 Td (e typically purchase our components and materials through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (purchase orders or agreed upon terms and conditions and we do not have guaranteed supply arrangements with many of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (suppliers. For certain long-lead time supplies or in order to lock-in pricing, we may be obligated to place purchase orders which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (are not cancelable or otherwise assume liability for a lar) Tj ET Q q 0 0 0 rg BT 273.39 178.10 Td (ge amount of the ordered supplies, which limit our ability to adjust ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (down our inventory liability in the event of market downturns or other customer cancellations or rescheduling of their purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (orders for our products. Some of our products, particularly in the flat panel display industry) Tj ET Q q 0 0 0 rg BT 414.88 154.10 Td (, require designs and specifications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (which are at the cutting-edge of available technologies. Our and our customers' designs and specifications frequently change to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (meet rapidly evolving market demands. ) Tj ET Q q 0 0 0 rg BT 210.01 130.10 Td (Accordingly certain of our products require components and supplies which may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (technologically dif) Tj ET Q q 0 0 0 rg BT 124.57 118.10 Td (ficult and unpredictable to manufacture. By their very nature, these types of components may only be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (available by a single supplier) Tj ET Q q 0 0 0 rg BT 165.58 106.10 Td (. ) Tj ET Q q 0 0 0 rg BT 170.40 106.10 Td (These characteristics further pressure the timely delivery of such components. ) Tj ET Q q 0 0 0 rg BT 484.83 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 493.46 106.10 Td (e may fail to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (obtain these supplies in a timely manner in the future. ) Tj ET Q q 0 0 0 rg BT 266.77 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 275.40 94.10 Td (e may experience dif) Tj ET Q q 0 0 0 rg BT 358.79 94.10 Td (ficulty identifying alternative sources of supply ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (for certain components used in our products and may have to incur expenses and management distraction in assisting our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (current and future suppliers to meet our and our customers' technical requirements. ) Tj ET Q q 0 0 0 rg BT 383.51 70.10 Td (W) Tj ET Q q 0 0 0 rg BT 392.15 70.10 Td (e would experience further delays while ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (identifying, evaluating and testing the products of these potential alternative suppliers. Furthermore, financial or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 46.10 Td (ficulties faced by these suppliers or significant changes in demand for these components or materials could limit their ) 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 (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (availability) Tj ET Q q 0 0 0 rg BT 93.84 742.10 Td (. ) Tj ET Q q 0 0 0 rg BT 98.66 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.29 742.10 Td (e continue to consolidate our supply base and move supplier locations. ) Tj ET Q q 0 0 0 rg BT 392.05 742.10 Td (When we transition locations we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (increase our inventory of such products as a safety stock during the transition, which may cause the amount of inventory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (reflected on our balance sheet to increase. ) Tj ET Q q 0 0 0 rg BT 218.86 718.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 268.76 718.10 Td (, many of our customers rely on sole source suppliers. In the event of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (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 49.50 682.10 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 49.50 670.10 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 49.50 658.10 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 49.50 646.10 Td (cancel orders. ) Tj ET Q q 0 0 0 rg BT 107.34 646.10 Td (W) Tj ET Q q 0 0 0 rg BT 115.98 646.10 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 49.50 634.10 Td (components, crystals, semiconductor lasers, fiber) Tj ET Q q 0 0 0 rg BT 245.99 634.10 Td (, lasers and laser) Tj ET Q q 0 0 0 rg BT 311.87 634.10 Td (-based systems and recently acquired the capability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (manufacture certain lar) Tj ET Q q 0 0 0 rg BT 142.04 622.10 Td (ge format optics. Because we manufacture, package and test these components, products and systems at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (our own facilities, and such components, products and systems are not readily available from other sources, any interruption in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (manufacturing would adversely af) Tj ET Q q 0 0 0 rg BT 186.21 598.10 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 49.50 586.10 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 49.50 574.10 Td (these items at our manufacturing facilities may materially and adversely af) Tj ET Q q 0 0 0 rg BT 348.09 574.10 Td (fect our operating results and financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 550.10 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 49.50 538.10 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 49.50 526.10 Td (our business and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 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 49.50 490.10 Td (product supply and demand, changing customer requirements and evolving industry standards. ) Tj ET Q q 0 0 0 rg BT 430.62 490.10 Td (The nature of this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 49.50 466.10 Td (material sales of our products to our customers in this market. ) Tj ET Q q 0 0 0 rg BT 298.89 466.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 348.79 466.10 Td (, our product of) Tj ET Q q 0 0 0 rg BT 410.82 466.10 Td (ferings may become obsolete given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 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 49.50 442.10 Td (acceptance, or the microelectronics market fails to grow) Tj ET Q q 0 0 0 rg BT 273.19 442.10 Td (, it would likely have a significant negative ef) Tj ET Q q 0 0 0 rg BT 456.01 442.10 Td (fect on our business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 406.10 Td (e 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 49.50 394.10 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 49.50 382.10 Td (cancel orders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 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 49.50 346.10 Td (annealing products. In the first and second quarters of fiscal 2017, ) Tj ET Q q 0 0 0 rg BT 318.31 346.10 Td (Advanced Process Systems Corporation, an integrator in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (flat panel display market based in South Korea, contributed more than 10% of our revenue. Given macroeconomic conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (varying consumer demand and technical process limitations at manufacturers, our customers may seek to reschedule or cancel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (orders. ) Tj ET Q q 0 0 0 rg BT 79.31 310.10 Td (These lar) Tj ET Q q 0 0 0 rg BT 116.05 310.10 Td (ger flat panel-related systems have lar) Tj ET Q q 0 0 0 rg BT 267.75 310.10 Td (ge average selling prices. ) Tj ET Q q 0 0 0 rg BT 370.76 310.10 Td (Any rescheduling or canceling of such orders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (by our customers will likely have a significant impact on our quarterly or annual net sales and results of operations and could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (negatively impact inventory values and backlog. ) Tj ET Q q 0 0 0 rg BT 245.28 286.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 295.18 286.10 Td (, challenges in meeting evolving technological requirements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (these complex products by us and our suppliers could also result in delays in shipments, rescheduled or canceled orders by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (customers. ) Tj ET Q q 0 0 0 rg BT 94.87 262.10 Td (This could negatively impact our backlog, timing of net sales and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.39 238.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.00 238.10 Td (, flat panel display systems represented 60% of our backlog. Since our backlog includes higher average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 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 498.61 226.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (financial results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 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 49.50 178.10 Td (customers, which could increase our costs and reduce our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (Lasers and laser systems are inherently complex in design and require ongoing regular maintenance. ) Tj ET Q q 0 0 0 rg BT 453.35 154.10 Td (The manufacture of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (lasers, laser products and systems involves a highly complex and precise process. ) Tj ET Q q 0 0 0 rg BT 377.20 142.10 Td (As a result of the technological complexity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (our products, in particular our excimer laser annealing tools \(ELA\) used in the flat panel display market, changes in our or our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (suppliers' manufacturing processes or the inadvertent use of defective materials by us or our suppliers could result in a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 90.13 106.10 Td (fect on our ability to achieve acceptable manufacturing yields and product reliability) Tj ET Q q 0 0 0 rg BT 427.40 106.10 Td (. ) Tj ET Q q 0 0 0 rg BT 432.22 106.10 Td (T) Tj ET Q q 0 0 0 rg BT 437.63 106.10 Td (o the extent that we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (achieve and maintain our projected yields or product reliability) Tj ET Q q 0 0 0 rg BT 300.98 94.10 Td (, our business, operating results, financial condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (customer relationships would be adversely af) Tj ET Q q 0 0 0 rg BT 230.10 82.10 Td (fected. ) Tj ET Q q 0 0 0 rg BT 259.34 82.10 Td (W) Tj ET Q q 0 0 0 rg BT 267.98 82.10 Td (e provide warranties on a majority of our product sales, and reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (estimated warranty costs are recorded during the period of sale. ) Tj ET Q q 0 0 0 rg BT 305.61 70.10 Td (The determination of such reserves requires us to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (estimates of failure rates and expected costs to repair or replace the products under warranty) Tj ET Q q 0 0 0 rg BT 417.58 58.10 Td (. ) Tj ET Q q 0 0 0 rg BT 422.40 58.10 Td (W) Tj ET Q q 0 0 0 rg BT 431.04 58.10 Td (e typically establish warranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (reserves based on historical warranty costs for each product line. If actual return rates and/or repair and replacement costs dif) Tj ET Q q 0 0 0 rg BT 549.67 46.10 Td (fer ) 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 (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (significantly from our estimates, adjustments to cost of sales may be required in future periods which could have an adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 730.10 Td (fect on our results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 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 49.50 694.10 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 49.50 682.10 Td (may contain defects. ) Tj ET Q q 0 0 0 rg BT 133.91 682.10 Td (As a result, should problems occur) Tj ET Q q 0 0 0 rg BT 272.38 682.10 Td (, it may be dif) Tj ET Q q 0 0 0 rg BT 328.02 682.10 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 49.50 670.10 Td (unable to identify and fix defects or other problems, we could experience, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.10 Td (loss of customers or orders;) 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 (increased costs of product returns and warranty expenses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 598.10 Td (damage to our brand reputation;) 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 (failure to attract new customers or achieve market acceptance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td (diversion of development, engineering and manufacturing resources; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 526.10 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 49.50 502.10 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 49.50 490.10 Td (operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (Continued volatility in the advanced packaging and semiconductor manufacturing markets could adversely af) Tj ET Q q 0 0 0 rg BT 501.55 466.10 Td (fect our ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (business, financial condition and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 430.10 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 49.50 418.10 Td (applications and semiconductor equipment companies. ) Tj ET Q q 0 0 0 rg BT 270.93 418.10 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 49.50 406.10 Td (severe cyclical variations in product supply and demand, which have often severely af) Tj ET Q q 0 0 0 rg BT 393.91 406.10 Td (fected the demand for semiconductor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (manufacturing equipment, including laser) Tj ET Q q 0 0 0 rg BT 216.47 394.10 Td (-based tools and systems. ) Tj ET Q q 0 0 0 rg BT 320.45 394.10 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 49.50 382.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 382.10 Td (ficult to predict, and we may not be able to respond ef) Tj ET Q q 0 0 0 rg BT 276.29 382.10 Td (fectively to these cycles. ) Tj ET Q q 0 0 0 rg BT 376.90 382.10 Td (The continuing uncertainty in these markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (severely limits our ability to predict our business prospects or financial results in these markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (During industry downturns, our net sales from these markets may decline suddenly and significantly) Tj ET Q q 0 0 0 rg BT 450.43 346.10 Td (. Our ability to rapidly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 334.10 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 49.50 322.10 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 49.50 310.10 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 49.50 298.10 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 499.63 298.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 548.97 298.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (downturns in the semiconductor capital equipment market may materially harm our operating results. Conversely) Tj ET Q q 0 0 0 rg BT 502.62 286.10 Td (, when upturns ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (in these markets occur) Tj ET Q q 0 0 0 rg BT 138.79 274.10 Td (, we must be able to rapidly and ef) Tj ET Q q 0 0 0 rg BT 276.62 274.10 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 49.50 262.10 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 49.50 250.10 Td (relationships with our customers may be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 226.10 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 49.50 214.10 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 49.50 190.10 Td (V) Tj ET Q q 0 0 0 rg BT 55.43 190.10 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 49.50 178.10 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 49.50 166.10 Td (products. In particular) Tj ET Q q 0 0 0 rg BT 137.68 166.10 Td (, it is dif) Tj ET Q q 0 0 0 rg BT 170.83 166.10 Td (ficult to develop and implement strategy) Tj ET Q q 0 0 0 rg BT 332.08 166.10 Td (, sustainable business models and ef) Tj ET Q q 0 0 0 rg BT 476.32 166.10 Td (ficient operations, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (well as ef) Tj ET Q q 0 0 0 rg BT 87.63 154.10 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 49.50 142.10 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 425.45 142.10 Td (. Our ability to maintain our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (research and development investments in our broad product of) Tj ET Q q 0 0 0 rg BT 299.24 130.10 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 49.50 118.10 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 49.50 106.10 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 94.10 Td (operating results. Current global economic conditions remain uncertain and challenging. ) Tj ET Q q 0 0 0 rg BT 405.33 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.96 94.10 Td (eakness in our end markets could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (negatively impact our net sales, gross mar) Tj ET Q q 0 0 0 rg BT 217.33 82.10 Td (gin and operating expenses, and consequently have a material adverse ef) Tj ET Q q 0 0 0 rg BT 507.31 82.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (business, financial condition and results of operations.) 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 (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (Uncertainty in global fiscal policy has likely had an adverse impact on global financial markets and overall economic activity in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (recent years.Should this uncertain financial policy recur) Tj ET Q q 0 0 0 rg BT 275.13 730.10 Td (, it would likely negatively impact global economic activity) Tj ET Q q 0 0 0 rg BT 513.03 730.10 Td (. ) Tj ET Q q 0 0 0 rg BT 519.97 730.10 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (weakness in global economies would also likely have negative repercussions on U.S. and global credit and financial markets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (and further exacerbate sovereign debt concerns in the European Union. ) Tj ET Q q 0 0 0 rg BT 338.27 706.10 Td (All of these factors would likely adversely impact the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (global demand for our products and the performance of our investments, and would likely have a material adverse ef) Tj ET Q q 0 0 0 rg BT 516.10 694.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (The financial turmoil that has af) Tj ET Q q 0 0 0 rg BT 177.88 658.10 Td (fected the banking system and financial markets in recent years could result in tighter credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (markets, and lower levels of liquidity in some financial markets. ) Tj ET Q q 0 0 0 rg BT 309.25 646.10 Td (There could be a number of follow-on ef) Tj ET Q q 0 0 0 rg BT 472.06 646.10 Td (fects from a tightened ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (credit environment on our business, including the insolvency of key suppliers or their inability to obtain credit to finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 Td (development and/or manufacture products resulting in product delays; inability of customers to obtain credit to finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (purchases of our products and/or customer insolvencies; and failure of financial institutions negatively impacting our treasury ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (functions. In the event our customers are unable to obtain credit or otherwise pay for our shipped products it could significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (impact our ability to collect on our outstanding accounts receivable. Other income and expense also could vary materially from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (expectations depending on gains or losses realized on the sale or exchange of financial instruments; impairment char) Tj ET Q q 0 0 0 rg BT 515.83 574.10 Td (ges ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (resulting from revaluations of debt and equity securities and other investments; interest rates; cash balances; and changes in fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (value of derivative instruments. ) Tj ET Q q 0 0 0 rg BT 178.45 550.10 Td (V) Tj ET Q q 0 0 0 rg BT 184.38 550.10 Td (olatility in the financial markets and any overall economic uncertainty increase the risk that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (the actual amounts realized in the future on our financial instruments could dif) Tj ET Q q 0 0 0 rg BT 363.11 538.10 Td (fer significantly from the fair values currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (assigned to them. Uncertainty about current global economic conditions could also continue to increase the volatility of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 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 49.50 478.10 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 49.50 466.10 Td (conditions make it dif) Tj ET Q q 0 0 0 rg BT 136.80 466.10 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 49.50 454.10 Td (such conditions persist, our business, financial condition and results of operations could suf) Tj ET Q q 0 0 0 rg BT 415.37 454.10 Td (fer) Tj ET Q q 0 0 0 rg BT 425.92 454.10 Td (. ) Tj ET Q q 0 0 0 rg BT 430.36 454.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 480.27 454.10 Td (, unstable economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 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 49.50 430.10 Td (business conduct. See PartI,Item4. CONTROLS ) Tj ET Q q 0 0 0 rg BT 256.42 430.10 Td (AND PROCEDURES.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 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 49.50 382.10 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 49.50 358.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 358.10 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 49.50 346.10 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 49.50 334.10 Td (solvency of some financial institutions. ) Tj ET Q q 0 0 0 rg BT 208.74 334.10 Td (These financial institutions, including banks, have had dif) Tj ET Q q 0 0 0 rg BT 439.90 334.10 Td (ficulty timely performing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (regular services and in some cases have failed or otherwise been lar) Tj ET Q q 0 0 0 rg BT 320.04 322.10 Td (gely taken over by governments. ) Tj ET Q q 0 0 0 rg BT 453.15 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 461.79 322.10 Td (e maintain our cash, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 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 49.50 298.10 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 49.50 286.10 Td (ability to timely access our cash deposited with such institutions, or) Tj ET Q q 0 0 0 rg BT 319.33 286.10 Td (, in extreme circumstances the failure of such institutions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 49.50 262.10 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 49.50 250.10 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 49.50 238.10 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 49.50 226.10 Td (accept our cash deposits will impact our ability to diversify our investment risk among institutions.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 202.10 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 49.50 178.10 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 49.50 166.10 Td (in their market values could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 267.83 166.10 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 49.50 154.10 Td (nature of our business, we have investments both domestically and internationally) Tj ET Q q 0 0 0 rg BT 376.83 154.10 Td (. ) Tj ET Q q 0 0 0 rg BT 381.65 154.10 Td (There has recently been growing pressure on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 49.50 130.10 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 49.50 118.10 Td (nations. ) Tj ET Q q 0 0 0 rg BT 82.83 118.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 132.74 118.10 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 49.50 106.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 106.10 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 94.10 Td (pricing of these investments can be negatively impacted by liquidity) Tj ET Q q 0 0 0 rg BT 321.83 94.10 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 82.10 Td (factors. ) Tj ET Q q 0 0 0 rg BT 81.16 82.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 131.06 82.10 Td (, liquidity issues or political actions by sovereign nations could result in decreased values for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (investments in certain government securities. ) Tj ET Q q 0 0 0 rg BT 232.23 70.10 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 58.10 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 58.10 Td (fect on our financial condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (and operating results. See Item3. Quantitative and Qualitative Disclosures about Market Risk.) 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 (58) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 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 460.72 730.10 Td (fset potential declines in ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 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 49.50 706.10 Td (our operating results may suf) Tj ET Q q 0 0 0 rg BT 170.45 706.10 Td (fer) Tj ET Q q 0 0 0 rg BT 181.56 706.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 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 49.50 670.10 Td (systems and related accessories, as well as our ability to identify) Tj ET Q q 0 0 0 rg BT 306.28 670.10 Td (, in advance, emer) Tj ET Q q 0 0 0 rg BT 379.11 670.10 Td (ging markets for laser) Tj ET Q q 0 0 0 rg BT 466.38 670.10 Td (-based systems. ) Tj ET Q q 0 0 0 rg BT 531.47 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 540.11 670.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (cannot assure you that we will be able to successfully identify) Tj ET Q q 0 0 0 rg BT 296.56 658.10 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 49.50 646.10 Td (Moreover) Tj ET Q q 0 0 0 rg BT 88.53 646.10 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 49.50 634.10 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 49.50 622.10 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 49.50 610.10 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 49.50 586.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 586.10 Td (e have in the past experienced decreases in the ) Tj ET Q q 0 0 0 rg BT 246.11 586.10 Td (ASPs of some of our products. ) Tj ET Q q 0 0 0 rg BT 370.83 586.10 Td (As competing products become more widely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (available, the ) Tj ET Q q 0 0 0 rg BT 104.75 574.10 Td (ASPs of our products may decrease. If we are unable to of) Tj ET Q q 0 0 0 rg BT 337.83 574.10 Td (fset any decrease in our ) Tj ET Q q 0 0 0 rg BT 434.18 574.10 Td (ASPs by increasing our sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (volumes, our net sales will decline. In addition, to maintain our gross mar) Tj ET Q q 0 0 0 rg BT 343.98 562.10 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 49.50 550.10 Td (manufacturing our products while maintaining their high quality) Tj ET Q q 0 0 0 rg BT 306.29 550.10 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 49.50 538.10 Td (technological products, may fail in greater frequency than anticipated. ) Tj ET Q q 0 0 0 rg BT 332.26 538.10 Td (This can lead to further char) Tj ET Q q 0 0 0 rg BT 445.08 538.10 Td (ges, which can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (higher costs, lower gross mar) Tj ET Q q 0 0 0 rg BT 166.79 526.10 Td (gins and lower operating results. Furthermore, as ) Tj ET Q q 0 0 0 rg BT 364.81 526.10 Td (ASPs of our current products decline, we must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (develop and introduce new products and product enhancements with higher mar) Tj ET Q q 0 0 0 rg BT 369.77 514.10 Td (gins. If we cannot maintain our gross mar) Tj ET Q q 0 0 0 rg BT 536.22 514.10 Td (gins, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (our operating results could be seriously harmed, particularly if the ) Tj ET Q q 0 0 0 rg BT 315.81 502.10 Td (ASPs of our products decrease significantly) Tj ET Q q 0 0 0 rg BT 490.40 502.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 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 49.50 466.10 Td (needs of our customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 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 530.81 442.10 Td (W) Tj ET Q q 0 0 0 rg BT 539.45 442.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 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 49.50 418.10 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 49.50 406.10 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 49.50 394.10 Td (size and have lower ) Tj ET Q q 0 0 0 rg BT 130.58 394.10 Td (ASPs, and therefore, we have to sell more units to maintain revenue levels. ) Tj ET Q q 0 0 0 rg BT 432.72 394.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 482.06 394.10 Td (, we must continue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 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 49.50 358.10 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 49.50 346.10 Td (Introduction of new products and product enhancements will require that we ef) Tj ET Q q 0 0 0 rg BT 365.60 346.10 Td (fectively transfer production processes from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (research and development to manufacturing and coordinate our ef) Tj ET Q q 0 0 0 rg BT 312.54 334.10 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 49.50 322.10 Td (rapidly) Tj ET Q q 0 0 0 rg BT 77.18 322.10 Td (. If we fail to transfer production processes ef) Tj ET Q q 0 0 0 rg BT 258.87 322.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 293.20 322.10 Td (, develop product enhancements or introduce new products in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 310.10 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 49.50 298.10 Td (harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 274.10 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 49.50 262.10 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (For both the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.25 238.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.86 238.10 Td (, 81% 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 49.50 226.10 Td (States. For fiscal 2016, fiscal 2015 and fiscal 2014, 76%, 73%, and 74%, respectively) Tj ET Q q 0 0 0 rg BT 391.27 226.10 Td (, of our net sales were derived from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (customers outside of the United States. ) Tj ET Q q 0 0 0 rg BT 207.53 214.10 Td (A) Tj ET Q q 0 0 0 rg BT 214.20 214.10 Td ( majority of Rofin) Tj ET Q q 0 0 0 rg BT 289.47 214.10 Td (s sales have also been to customers outside of the United States in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (recent years. ) Tj ET Q q 0 0 0 rg BT 102.34 202.10 Td (W) Tj ET Q q 0 0 0 rg BT 110.98 202.10 Td (e anticipate that foreign sales, particularly in ) Tj ET Q q 0 0 0 rg BT 290.91 202.10 Td (Asia, will continue to account for a significant portion of our net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (sales in the foreseeable future. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (A) Tj ET Q q 0 0 0 rg BT 56.17 166.10 Td ( global economic slowdown or a natural disaster could have a negative ef) Tj ET Q q 0 0 0 rg BT 349.22 166.10 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 49.50 154.10 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 412.00 154.10 Td (Thailand in recent years. Such a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 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 421.69 142.10 Td (fect the overall level of business in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (such countries. Our foreign sales are primarily through our direct sales force. ) Tj ET Q q 0 0 0 rg BT 359.40 130.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 409.30 130.10 Td (, some foreign sales are made through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 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 94.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 94.10 Td (longer accounts receivable collection periods;) 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 (the impact of recessions and other economic conditions in economies outside the United States;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 46.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 46.10 Td (unexpected changes in regulatory requirements;) 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 (59) 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 (certification requirements;) 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 (environmental regulations;) 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 (reduced protection for intellectual property rights in some countries;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 658.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 658.10 Td (potentially adverse tax consequences;) 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 (political and economic instability;) 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 (import/export regulations, tarif) Tj ET Q q 0 0 0 rg BT 208.90 610.10 Td (fs and trade barriers;) 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 (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 67.50 562.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (less than favorable contract terms;) 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 (reduced ability to enforce contractual obligations;) 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 (cultural and management dif) Tj ET Q q 0 0 0 rg BT 200.00 514.10 Td (ferences;) 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 (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 67.50 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 466.10 Td (preference for locally produced products; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 442.10 Td (shipping and other logistics complications.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (Our business could also be impacted by international conflicts, terrorist and military activity) Tj ET Q q 0 0 0 rg BT 417.92 418.10 Td (, civil unrest and pandemic illness ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 Td (supplies or limit our ability to timely service our installed base of products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 370.10 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 508.33 370.10 Td (fect the sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 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 458.10 358.10 Td (While we use forward ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 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 49.50 334.10 Td (economic risks of foreign currency fluctuations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 310.10 Td (e may not be able to protect our proprietary technology which could adversely af) Tj ET Q q 0 0 0 rg BT 387.71 310.10 Td (fect our competitive advantage.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (Maintenance of intellectual property rights and the protection thereof is important to our business. ) Tj ET Q q 0 0 0 rg BT 443.93 286.10 Td (W) Tj ET Q q 0 0 0 rg BT 452.57 286.10 Td (e rely on a combination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 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 49.50 262.10 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 387.84 262.10 Td (ficiently protect our intellectual property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 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 49.50 238.10 Td (technology or design around any patents that may be issued to us. ) Tj ET Q q 0 0 0 rg BT 314.54 238.10 Td (W) Tj ET Q q 0 0 0 rg BT 323.18 238.10 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 49.50 226.10 Td (prevent the misappropriation of our intellectual property) Tj ET Q q 0 0 0 rg BT 274.33 226.10 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 49.50 214.10 Td (proprietary rights as fully as in the United States. Further) Tj ET Q q 0 0 0 rg BT 277.39 214.10 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 49.50 202.10 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 49.50 190.10 Td (management's attention. ) Tj ET Q q 0 0 0 rg BT 148.22 190.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 198.12 190.10 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 49.50 178.10 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 49.50 166.10 Td (upon since these applications are often not publicly available until a patent is issued or published.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 142.10 Td (e may) Tj ET Q q 0 0 0 rg BT 81.43 142.10 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 49.50 130.10 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 49.50 118.10 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 529.44 118.10 Td (Adverse ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (resolution of litigation may harm our operating results or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 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 70.10 Td (intellectual property rights. ) Tj ET Q q 0 0 0 rg BT 160.40 70.10 Td (This has been seen in our industry) Tj ET Q q 0 0 0 rg BT 296.39 70.10 Td (, for example in the concluded patent-related litigation between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (IMRA) Tj ET Q q 0 0 0 rg BT 75.06 58.10 Td ( ) Tj ET Q q 0 0 0 rg BT 77.01 58.10 Td (America,Inc. \("Imra"\) and IPG Photonics Corporation and in Imra's litigation against two of our German subsidiaries. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 46.10 Td (From time to time, like many other technology companies, we have received communications from other parties asserting the ) 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 (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (existence of patent rights, copyrights, trademark rights or other intellectual property rights which such third parties believe may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (cover certain of our products, processes, technologies or information. In the future, we may be a party to litigation to protect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (intellectual property or as a result of an alleged infringement of others' intellectual property whether through direct claims or by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (way of indemnification claims of our customers, as, in some cases, we contractually agree to indemnify our customers against ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (third-party infringement claims relating to our products. ) Tj ET Q q 0 0 0 rg BT 275.93 694.10 Td (These claims and any resulting lawsuit, if successful, could subject us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (to significant liability for damages or invalidation of our proprietary rights. ) Tj ET Q q 0 0 0 rg BT 352.02 682.10 Td (These lawsuits, regardless of their success, would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (likely be time-consuming and expensive to resolve and would divert management time and attention. ) Tj ET Q q 0 0 0 rg BT 455.78 670.10 Td (Any potential intellectual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (property litigation could also force us to do one or more of the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 634.10 Td ( ) Tj ET Q BT /F1 3.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.25 634.10 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 67.50 610.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 610.10 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 530.26 610.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 598.10 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 67.50 574.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.10 Td (redesign the products that use the technology) Tj ET Q q 0 0 0 rg BT 265.36 574.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 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 49.50 538.10 Td (and our business may be seriously harmed. ) Tj ET Q q 0 0 0 rg BT 223.73 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 232.37 538.10 Td (e do not have insurance to cover potential claims of this type.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (If our goodwill or intangible assets become impaired, we may be required to record a significant charge to earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.10 Td (Under accounting principles generally accepted in the United States, we review our intangible assets for impairment when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (events or changes in circumstances indicate the carrying value may not be recoverable. Goodwill is required to be tested for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (impairment at least annually) Tj ET Q q 0 0 0 rg BT 162.42 466.10 Td (. Factors that may be considered in determining whether a change in circumstances indicating that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.10 Td (the carrying value of our goodwill or other intangible assets may not be recoverable include declines in our stock price and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (market capitalization or future cash flows projections. ) Tj ET Q q 0 0 0 rg BT 267.21 442.10 Td (A) Tj ET Q q 0 0 0 rg BT 273.88 442.10 Td ( decline in our stock price, or any other adverse change in market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (conditions, particularly if such change has the ef) Tj ET Q q 0 0 0 rg BT 243.14 430.10 Td (fect of changing one of the critical assumptions or estimates we used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (calculate the estimated fair value of our reporting units, could result in a change to the estimation of fair value that could result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (in an impairment char) Tj ET Q q 0 0 0 rg BT 137.34 406.10 Td (ge. ) Tj ET Q q 0 0 0 rg BT 151.23 406.10 Td (Any such material char) Tj ET Q q 0 0 0 rg BT 244.07 406.10 Td (ges, whether related to goodwill or purchased intangible assets, may have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (material negative impact on our financial and operating results.) Tj ET Q BT /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 skilled personnel to operate our business ef) Tj ET Q q 0 0 0 rg BT 287.20 370.10 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 49.50 358.10 Td (retain existing or hire additional personnel when needed, our ability to develop and sell our products could be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 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 49.50 322.10 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 498.93 322.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 524.48 322.10 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 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 402.82 310.10 Td (ficult to retain key employees and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (management at a reasonable cost. ) Tj ET Q q 0 0 0 rg BT 185.93 298.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.56 298.10 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 49.50 286.10 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 543.86 286.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (our growth and our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (Our future success depends upon the continued services of our executive of) Tj ET Q q 0 0 0 rg BT 351.17 250.10 Td (ficers and other key engineering, sales, marketing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (manufacturing and support personnel, any of whom may leave and our ability to ef) Tj ET Q q 0 0 0 rg BT 380.89 238.10 Td (fectively transition to their successors. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (inability to retain or to ef) Tj ET Q q 0 0 0 rg BT 149.57 226.10 Td (fectively transition to their successors could harm our business and our results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 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 427.95 202.10 Td (fsetting net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (Customers often view the purchase of our products as a significant and strategic decision. ) Tj ET Q q 0 0 0 rg BT 409.68 178.10 Td (As a result, customers typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (expend significant ef) Tj ET Q q 0 0 0 rg BT 133.18 166.10 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 49.50 154.10 Td (in a lengthy initial sales cycle. ) Tj ET Q q 0 0 0 rg BT 172.89 154.10 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 49.50 142.10 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 49.50 130.10 Td (needs. ) Tj ET Q q 0 0 0 rg BT 77.09 130.10 Td (W) Tj ET Q q 0 0 0 rg BT 85.73 130.10 Td (e may also expend significant management ef) Tj ET Q q 0 0 0 rg BT 268.25 130.10 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 49.50 118.10 Td (components or materials prior to receiving an order) Tj ET Q q 0 0 0 rg BT 254.71 118.10 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 49.50 106.10 Td (our products. ) Tj ET Q q 0 0 0 rg BT 104.22 106.10 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 94.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 94.10 Td (fset such expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 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 58.10 Td (levels, reduced gross margins or the loss of market share.) Tj ET Q endstream endobj 125 0 obj <>] /Rotate 0 /Contents 126 0 R>> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (Competition in the various photonics markets in which we provide products is very intense. ) Tj ET Q q 0 0 0 rg BT 418.42 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 427.06 742.10 Td (e compete against a number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 730.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 730.10 Td (ge public and private companies, including CVI Melles Griot, NovantaInc.,IPG Photonics Corporation, Lumentum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (Holdings Inc., MKS Instruments, Inc. and ) Tj ET Q q 0 0 0 rg BT 219.86 718.10 Td (T) Tj ET Q q 0 0 0 rg BT 225.61 718.10 Td (rumpfGmbH, as well as other smaller companies. Some of our competitors are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 706.10 Td (ge companies that have significant financial, technical, marketing and other resources. ) Tj ET Q q 0 0 0 rg BT 407.33 706.10 Td (These competitors may be able to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (devote greater resources than we can to the development, promotion, sale and support of their products. Some of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (competitors are much better positioned than we are to acquire other companies in order to gain new technologies or products ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (that may displace our product lines. ) Tj ET Q q 0 0 0 rg BT 194.19 670.10 Td (Any of these acquisitions could give our competitors a strategic advantage. ) Tj ET Q q 0 0 0 rg BT 496.33 670.10 Td (Any business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 658.10 Td (combinations or mer) Tj ET Q q 0 0 0 rg BT 132.08 658.10 Td (gers among our competitors, forming lar) Tj ET Q q 0 0 0 rg BT 294.08 658.10 Td (ger companies with greater resources, could result in increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (competition, price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 220.92 646.10 Td (gins or loss of market share, any of which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 523.98 646.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (business, results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 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 49.50 598.10 Td (new companies in the future. ) Tj ET Q q 0 0 0 rg BT 167.62 598.10 Td (W) Tj ET Q q 0 0 0 rg BT 176.25 598.10 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 49.50 586.10 Td (committed to the products of) Tj ET Q q 0 0 0 rg BT 164.85 586.10 Td (fered by these competitors. Further) Tj ET Q q 0 0 0 rg BT 304.69 586.10 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 49.50 574.10 Td (and produce products for their own use which are competitive to our products. Such vertical integration could reduce the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (market opportunity for our products. ) Tj ET Q q 0 0 0 rg BT 197.81 562.10 Td (As a result of the foregoing factors, we expect that competitive pressures may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 Td (price reductions, reduced mar) Tj ET Q q 0 0 0 rg BT 168.15 550.10 Td (gins, loss of sales and loss of market share. In addition, in markets where there are a limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 Td (number of customers, competition is particularly intense.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 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 49.50 502.10 Td (incur significant delays in shipments, which could result in a loss of customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 478.10 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 49.50 466.10 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 49.50 454.10 Td (required to obtain the necessary components and materials. ) Tj ET Q q 0 0 0 rg BT 288.41 454.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.04 454.10 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 49.50 442.10 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 49.50 430.10 Td (specific supplier requirements, the size of the order) Tj ET Q q 0 0 0 rg BT 254.02 430.10 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 49.50 418.10 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 49.50 406.10 Td (overestimate our component and material requirements, we may have excess inventory) Tj ET Q q 0 0 0 rg BT 396.78 406.10 Td (, which would increase our costs. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (underestimate our component and material requirements, we may have inadequate inventory) Tj ET Q q 0 0 0 rg BT 418.99 394.10 Td (, which could interrupt and delay ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (delivery of our products to our customers. ) Tj ET Q q 0 0 0 rg BT 219.47 382.10 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 49.50 370.10 Td (operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 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 49.50 334.10 Td (our decreased control over the performance and timing of certain aspects of our manufacturing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 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 49.50 298.10 Td (complex turnkey products, including some performed at international sites located in ) Tj ET Q q 0 0 0 rg BT 391.08 298.10 Td (Asia and Eastern Europe. Our ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 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 523.88 286.10 Td (The cost, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 274.10 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 49.50 262.10 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 49.50 250.10 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 49.50 238.10 Td (to meet our cost, quality) Tj ET Q q 0 0 0 rg BT 145.77 238.10 Td (, performance, and availability standards. ) Tj ET Q q 0 0 0 rg BT 313.31 238.10 Td (W) Tj ET Q q 0 0 0 rg BT 321.95 238.10 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 49.50 226.10 Td (product volumes that are high enough to achieve suf) Tj ET Q q 0 0 0 rg BT 258.70 226.10 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 49.50 214.10 Td (increased costs or be required to take ownership of the inventory) Tj ET Q q 0 0 0 rg BT 307.65 214.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.10 214.10 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 49.50 202.10 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 450.65 202.10 Td (, which could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (impact our financial condition or results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (If we fail to ef) Tj ET Q q 0 0 0 rg BT 107.08 166.10 Td (fectively manage our growth or) Tj ET Q q 0 0 0 rg BT 235.41 166.10 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 291.14 166.10 Td (, our spending during downturns, our business could be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (disrupted, which could harm our operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 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 49.50 118.10 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 49.50 106.10 Td (strain. ) Tj ET Q q 0 0 0 rg BT 76.54 106.10 Td (The failure to ef) Tj ET Q q 0 0 0 rg BT 141.04 106.10 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 94.10 Td (successfully of) Tj ET Q q 0 0 0 rg BT 109.03 94.10 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 94.10 Td (fective planning and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (management process. In economic downturns, we must ef) Tj ET Q q 0 0 0 rg BT 281.20 82.10 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 70.10 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 70.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 58.10 Td (failure to ef) Tj ET Q q 0 0 0 rg BT 95.96 58.10 Td (fectively manage our spending and operations could disrupt our business and harm our operating results.) Tj ET Q endstream endobj 127 0 obj <>] /Rotate 0 /Contents 128 0 R>> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (62) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 742.25 Td (Historically) Tj ET Q q 0 0 0 rg BT 97.46 742.25 Td (, acquisitions have been an important element of our strategy) Tj ET Q q 0 0 0 rg BT 348.76 742.25 Td (. However) Tj ET Q q 0 0 0 rg BT 389.87 742.25 Td (, we may not find suitable acquisition ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 730.25 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 490.25 730.25 Td (Any acquisitions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 718.25 Td (we make could disrupt our business and harm our financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 694.25 Td (e have in the past made strategic acquisitions of other corporations and entities, including Rofin in November 2016, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.25 Td (asset purchases, and we continue to evaluate potential strategic acquisitions of complementary companies, products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.25 Td (technologies. In the event of any future acquisitions, we could:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 646.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 646.25 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 67.50 622.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 622.25 Td (pay cash that would decrease our working capital;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 598.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 598.25 Td (incur debt;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.25 Td (assume liabilities; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 550.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.25 Td (incur expenses related to impairment of goodwill and amortization.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 526.25 Td (Acquisitions also involve numerous risks, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.25 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 67.50 478.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 478.25 Td (an inability to realize expected operating ef) Tj ET Q q 0 0 0 rg BT 258.57 478.25 Td (ficiencies or product integration benefits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 454.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 454.25 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 454.25 Td (ficulties in coordinating and integrating geographically separated personnel, or) Tj ET Q q 0 0 0 rg BT 411.42 454.25 Td (ganizations, systems and facilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.25 Td (dif) Tj ET Q q 0 0 0 rg BT 96.43 430.25 Td (ficulties integrating business cultures;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 406.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 406.25 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 85.50 394.25 Td (company;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 370.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 370.25 Td (diversion of management's attention from our core businesses;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 346.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 346.25 Td (adverse ef) Tj ET Q q 0 0 0 rg BT 126.13 346.25 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 67.50 322.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 322.25 Td (potential loss of key employees, particularly those of the purchased or) Tj ET Q q 0 0 0 rg BT 365.51 322.25 Td (ganizations;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 298.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 298.25 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 67.50 274.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.25 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 85.50 262.25 Td (in the expensing of potentially significant professional fees and other char) Tj ET Q q 0 0 0 rg BT 381.34 262.25 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 85.50 250.25 Td (negotiations are terminated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.25 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 226.25 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 49.50 214.25 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 49.50 202.25 Td (transactions, which may harm our business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 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 49.50 166.25 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 49.50 154.25 Td (operating results will be harmed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 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 49.50 118.25 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 49.50 106.25 Td (rapid change, it is dif) Tj ET Q q 0 0 0 rg BT 134.02 106.25 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 94.25 Td (will depend on, among other things:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 70.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 70.25 Td (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 46.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 46.25 Td (the education of potential end-user customers about the benefits of lasers and laser systems; and) Tj ET Q endstream endobj 129 0 obj <>] /Rotate 0 /Contents 130 0 R>> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (63) 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 (our ability to accurately predict and develop our products to meet industry standards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 Td (For the three and six months ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.98 706.10 Td (April1, 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.58 706.10 Td (, our research and development costs were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.74 706.10 Td ($30.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.63 706.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.46 706.10 Td (7.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.29 706.10 Td ( of net sales\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 694.10 Td ($57.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 694.10 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.16 694.10 Td (7.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.99 694.10 Td ( of net sales\), respectively) Tj ET Q q 0 0 0 rg BT 250.47 694.10 Td (. For our fiscal years 2016, 2015 and 2014, our research and development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 682.10 Td (costs were $81.8 million \(9.5% of net sales\), $81.5 million \(10.2% of net sales\) and $79.1 million \(10.0% of net sales\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 670.10 Td (. ) Tj ET Q q 0 0 0 rg BT 101.98 670.10 Td (W) Tj ET Q q 0 0 0 rg BT 110.62 670.10 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 49.50 658.10 Td (products or) Tj ET Q q 0 0 0 rg BT 94.37 658.10 Td (, if such products are introduced, that those products will achieve suf) Tj ET Q q 0 0 0 rg BT 369.39 658.10 Td (ficient market acceptance or to generate sales to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 646.10 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 516.20 646.10 Td (fect our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.10 Td (business and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 610.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 610.10 Td (e 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 458.87 610.10 Td (fect on our business, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (operating results, or financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 574.10 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 516.83 574.10 Td (, death or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.10 Td (commercial losses occur from the use of our products. ) Tj ET Q q 0 0 0 rg BT 268.70 562.10 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 49.50 550.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 550.10 Td (ficers' policies, litigation can be expensive, lengthy) Tj ET Q q 0 0 0 rg BT 261.52 550.10 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 49.50 538.10 Td (impact of indemnification obligations for individuals named in any such lawsuits. ) Tj ET Q q 0 0 0 rg BT 378.70 538.10 Td (W) Tj ET Q q 0 0 0 rg BT 387.34 538.10 Td (e may not, however) Tj ET Q q 0 0 0 rg BT 465.80 538.10 Td (, be able to secure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.10 Td (insurance coverage on terms acceptable to us in the future. Moreover) Tj ET Q q 0 0 0 rg BT 325.37 526.10 Td (, the results of complex legal proceedings are dif) Tj ET Q q 0 0 0 rg BT 519.85 526.10 Td (ficult to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (predict. ) Tj ET Q q 0 0 0 rg BT 81.71 514.10 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 49.50 502.10 Td (be defective, could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 232.00 502.10 Td (fect on our business, operating results, or financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 478.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 478.10 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 49.50 466.10 Td (damage or liability resulting from accidental environmental contamination or injury) Tj ET Q q 0 0 0 rg BT 396.66 466.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 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 49.50 430.10 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 49.50 418.10 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 509.35 418.10 Td (Also, if a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 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 49.50 394.10 Td (it could release highly toxic emissions. ) Tj ET Q q 0 0 0 rg BT 207.35 394.10 Td (W) Tj ET Q q 0 0 0 rg BT 215.98 394.10 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 49.50 382.10 Td (comply with all federal, state and of) Tj ET Q q 0 0 0 rg BT 193.44 382.10 Td (fshore regulations and standards. However) Tj ET Q q 0 0 0 rg BT 363.82 382.10 Td (, the risk of accidental environmental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 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 49.50 358.10 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 49.50 346.10 Td (resources of our business which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 278.41 346.10 Td (fect on our financial results or our business as a whole.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (Compliance or the failure to comply with current and future environmental regulations could cause us significant expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 298.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 298.10 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 541.38 298.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 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 49.50 274.10 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 49.50 262.10 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 49.50 250.10 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 49.50 238.10 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 49.50 226.10 Td (management of historical waste.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (From time to time new regulations are enacted, and it is dif) Tj ET Q q 0 0 0 rg BT 285.92 202.10 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 49.50 190.10 Td (enforced. ) Tj ET Q q 0 0 0 rg BT 89.29 190.10 Td (W) Tj ET Q q 0 0 0 rg BT 97.93 190.10 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 477.04 190.10 Td (These regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (include, for example, the Registration, Evaluation, ) Tj ET Q q 0 0 0 rg BT 253.33 178.10 Td (Authorization and Restriction of Chemical substances \(REACH\), the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 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 49.50 154.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 154.10 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 49.50 142.10 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 49.50 130.10 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 49.50 118.10 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 49.50 106.10 Td (by requiring the use of dif) Tj ET Q q 0 0 0 rg BT 153.46 106.10 Td (ferent types of materials. ) Tj ET Q q 0 0 0 rg BT 255.18 106.10 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 94.10 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 94.10 Td (fects. ) Tj ET Q q 0 0 0 rg BT 508.42 94.10 Td (W) Tj ET Q q 0 0 0 rg BT 517.06 94.10 Td (e believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 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 70.10 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 58.10 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 46.10 Td (or expenses associated with our operations. ) Tj ET Q q 0 0 0 rg BT 225.11 46.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.74 46.10 Td (e are not currently aware of any such material costs or expenses. ) Tj ET Q q 0 0 0 rg BT 493.73 46.10 Td (The SEC has ) Tj ET Q endstream endobj 131 0 obj <>] /Rotate 0 /Contents 132 0 R>> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 Td (Congo and adjoining countries and procedures regarding a manufacturer's ef) Tj ET Q q 0 0 0 rg BT 355.18 730.10 Td (forts to prevent the sourcing of such minerals. ) Tj ET Q q 0 0 0 rg BT 541.34 730.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 718.10 Td (implementation of such rules has required us to incur additional expense and internal resources and may continue to do so in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 706.10 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 49.50 694.10 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 49.50 682.10 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 49.50 670.10 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 49.50 646.10 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 49.50 634.10 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 49.50 610.10 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 49.50 598.10 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 482.85 598.10 Td (, pandemic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.10 Td (illnesses, ener) Tj ET Q q 0 0 0 rg BT 105.41 586.10 Td (gy shortages, theft of assets, other natural disasters or terrorist activity) Tj ET Q q 0 0 0 rg BT 385.24 586.10 Td (. ) Tj ET Q q 0 0 0 rg BT 389.69 586.10 Td (A) Tj ET Q q 0 0 0 rg BT 396.36 586.10 Td ( substantial portion of our research and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.10 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 49.50 562.10 Td (earthquake faults in Santa Clara, California, an area with a history of seismic events. ) Tj ET Q q 0 0 0 rg BT 389.67 562.10 Td (Any such loss or detrimental impact to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.10 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 49.50 538.10 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 538.10 Td (ge expenses to repair or replace the facility) Tj ET Q q 0 0 0 rg BT 231.08 538.10 Td (. ) Tj ET Q q 0 0 0 rg BT 235.90 538.10 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 49.50 526.10 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 494.17 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 502.81 526.10 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 Td (this decision is consistent with decisions reached by numerous other companies located nearby) Tj ET Q q 0 0 0 rg BT 428.20 514.10 Td (. ) Tj ET Q q 0 0 0 rg BT 433.02 514.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.65 514.10 Td (e cannot assure you that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 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 49.50 478.10 Td (Dif) Tj ET Q q 0 0 0 rg BT 62.65 478.10 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 49.50 466.10 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 49.50 454.10 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 49.50 442.10 Td (and financial exposure and liabilities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 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 49.50 406.10 Td (products licensed from third parties. ) Tj ET Q q 0 0 0 rg BT 198.63 406.10 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 49.50 394.10 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 49.50 382.10 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 49.50 370.10 Td (the SEC. ) Tj ET Q q 0 0 0 rg BT 89.50 370.10 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 49.50 358.10 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 49.50 346.10 Td (system could adversely af) Tj ET Q q 0 0 0 rg BT 152.90 346.10 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 49.50 334.10 Td (Section 404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 190.86 334.10 Td (Act of 2002.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 308.70 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 49.50 288.70 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 49.50 276.70 Td (system. ) Tj ET Q q 0 0 0 rg BT 82.10 276.70 Td (While our system is designed with access security) Tj ET Q q 0 0 0 rg BT 281.68 276.70 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 49.50 264.70 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 49.50 252.70 Td (and possible liability) Tj ET Q q 0 0 0 rg BT 132.18 252.70 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 49.50 240.70 Td (by computer hackers, employee error) Tj ET Q q 0 0 0 rg BT 198.20 240.70 Td (, malfeasance or otherwise. ) Tj ET Q q 0 0 0 rg BT 309.27 240.70 Td (Additionally) Tj ET Q q 0 0 0 rg BT 359.17 240.70 Td (, third parties may attempt to fraudulently induce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.70 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 49.50 216.70 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 49.50 204.70 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 49.50 192.70 Td (frequently and generally are not recognized until launched against a tar) Tj ET Q q 0 0 0 rg BT 333.64 192.70 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 49.50 180.70 Td (to implement adequate preventative measures. ) Tj ET Q q 0 0 0 rg BT 236.65 180.70 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 49.50 168.70 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 471.34 168.70 Td (Additionally) Tj ET Q q 0 0 0 rg BT 521.24 168.70 Td (, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.70 Td (actions could result in significant costs associated with loss of our intellectual property) Tj ET Q q 0 0 0 rg BT 395.99 156.70 Td (, impairment of our ability to conduct our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.70 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 49.50 132.70 Td (actions, paying damages or taking other remedial steps.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 108.70 Td (Changes in tax rates, tax liabilities or tax accounting rulescould af) Tj ET Q q 0 0 0 rg BT 326.58 108.70 Td (fect future results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.70 Td (As a global company) Tj ET Q q 0 0 0 rg BT 133.55 88.70 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 76.70 Td (judgment is required to determine our worldwide tax liabilities. ) Tj ET Q q 0 0 0 rg BT 305.00 76.70 Td (A) Tj ET Q q 0 0 0 rg BT 311.67 76.70 Td ( number of factors may af) Tj ET Q q 0 0 0 rg BT 415.06 76.70 Td (fect our future ef) Tj ET Q q 0 0 0 rg BT 482.34 76.70 Td (fective tax rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 64.70 Td (including, but not limited to:) Tj ET Q endstream endobj 133 0 obj <>] /Rotate 0 /Contents 134 0 R>> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 742.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 742.10 Td (changes in our current and future global structure based on the Rofin acquisition and restructuring that involved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 730.10 Td (significant movement of U.S. and foreign entities and our ability to maintain favorable tax treatment as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 718.10 Td (various Rofin restructuring ef) Tj ET Q q 0 0 0 rg BT 203.90 718.10 Td (forts and business activities; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 694.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 694.10 Td (change in the assessment of the ability to recognize our deferred tax assets and change in the valuation of our deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 682.10 Td (tax liabilities;) 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 outcome of discussions with various tax authorities regarding intercompany transfer pricing arrangements;) 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 (changes that involve other acquisitions or restructuring 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 85.50 622.10 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 67.50 598.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 598.10 Td (changes in the composition of earnings in countries or states with dif) Tj ET Q q 0 0 0 rg BT 360.54 598.10 Td (fering tax rates;) 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 (the resolution of issues arising from tax audits with various tax authorities, and in particular) Tj ET Q q 0 0 0 rg BT 451.96 574.10 Td (, the outcome of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.10 Td (German tax audits of our tax returns for fiscal years 201) Tj ET Q q 0 0 0 rg BT 309.50 562.10 Td (1 - 2014 and 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 85.50 550.10 Td (2013;) 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 (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 67.50 502.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.10 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 85.50 490.10 Td (acquisitions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 466.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 466.10 Td (our ability to meet the eligibility requirements for tax holidays of limited time tax-advantage status;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 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 (changes in available tax credits;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 418.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.10 Td (changes in share-based compensation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 394.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 394.10 Td (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 85.50 382.10 Td (project being conducted by the Or) Tj ET Q q 0 0 0 rg BT 221.66 382.10 Td (ganization for Economic Co-operation and Development \(OECD\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 358.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 358.10 Td (changes in generally accepted accounting principles; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 334.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 334.10 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 49.50 314.10 Td (As indicated above, we are engaged in discussions with various tax authorities regarding the appropriate level of profitability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (for Coherent entities and this may result in changes to our worldwide tax liabilities. In addition, we are subject to regular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (examination of our income tax returns by the Internal Revenue Service \(IRS\) and other tax authorities. From time to time the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (United States, foreign and state governments make substantive changes to tax rulesand the application of rulesto companies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (including various announcements from the United States government potentially impacting our ability to defer taxes on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.10 Td (international earnings. ) Tj ET Q q 0 0 0 rg BT 141.23 254.10 Td (W) Tj ET Q q 0 0 0 rg BT 149.87 254.10 Td (e regularly assess the likelihood of favorable or unfavorable outcomes resulting from these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.10 Td (examinations to determine the adequacy of our provision for income taxes. ) Tj ET Q q 0 0 0 rg BT 351.08 242.10 Td (Although we believe our tax estimates are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (reasonable, there can be no assurance that any final determination will not be materially dif) Tj ET Q q 0 0 0 rg BT 414.46 230.10 Td (ferent than the treatment reflected in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (our historical income tax provisions and accruals, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 410.59 218.10 Td (fect our operating results and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (financial condition.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 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 49.50 174.10 Td (regarding compliance matters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 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 456.14 150.10 Td (ganizations such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 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 49.50 126.10 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 49.50 114.10 Td (members and impose civil and criminal penalties for companies and their chief executive of) Tj ET Q q 0 0 0 rg BT 416.69 114.10 Td (ficers, chief financial of) Tj ET Q q 0 0 0 rg BT 512.01 114.10 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.10 Td (directors for securities law violations. ) Tj ET Q q 0 0 0 rg BT 202.61 102.10 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 90.10 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 78.10 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 66.10 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 54.10 Td (standards are subject to varying interpretations in many cases. ) Tj ET Q q 0 0 0 rg BT 299.43 54.10 Td (As a result, their application in practice may evolve over time. ) Tj ET Q endstream endobj 135 0 obj <>] /Rotate 0 /Contents 136 0 R>> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 742.10 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 49.50 730.10 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 49.50 718.10 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 49.50 706.10 Td (our ef) Tj ET Q q 0 0 0 rg BT 72.92 706.10 Td (forts to comply with new or changed laws, regulations and standards dif) Tj ET Q q 0 0 0 rg BT 361.00 706.10 Td (fer from the activities intended by regulatory or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 694.10 Td (governing bodies due to ambiguities related to practice, our reputation may also be harmed.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 670.10 Td (Governmental regulations, including duties, af) Tj ET Q q 0 0 0 rg BT 242.12 670.10 Td (fecting the import or export of products could negatively af) Tj ET Q q 0 0 0 rg BT 484.42 670.10 Td (fect our net sales.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 646.10 Td (The United States and many foreign governments impose tarif) Tj ET Q q 0 0 0 rg BT 298.70 646.10 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 49.50 634.10 Td (some of those which we sell. In particular) Tj ET Q q 0 0 0 rg BT 216.27 634.10 Td (, given our worldwide operations, we pay duties on certain products when they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.10 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 49.50 610.10 Td (subsidiaries. ) Tj ET Q q 0 0 0 rg BT 101.54 610.10 Td (These products can be subject to a duty on the product value. ) Tj ET Q q 0 0 0 rg BT 347.85 610.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 397.76 610.10 Td (, the United States and various foreign ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.10 Td (governments have imposed tarif) Tj ET Q q 0 0 0 rg BT 177.89 598.10 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 49.50 586.10 Td (technologies, especially encryption technology) Tj ET Q q 0 0 0 rg BT 236.57 586.10 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 49.50 574.10 Td (encryption technology) Tj ET Q q 0 0 0 rg BT 138.55 574.10 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 49.50 562.10 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 49.50 550.10 Td (approval for our products, could harm our international and domestic sales and adversely af) Tj ET Q q 0 0 0 rg BT 415.87 550.10 Td (fect our net sales. From time to time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 538.10 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 49.50 526.10 Td (customs duties and value-added-tax for the period March 2009 to March 2014. ) Tj ET Q q 0 0 0 rg BT 366.73 526.10 Td (W) Tj ET Q q 0 0 0 rg BT 375.37 526.10 Td (e were liable for additional payments, duties, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.10 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 398.58 514.10 Td (Any future assessments could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 502.10 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 49.50 478.10 Td (In addition, compliance with the directives of the Directorate of Defense ) Tj ET Q q 0 0 0 rg BT 341.99 478.10 Td (T) Tj ET Q q 0 0 0 rg BT 347.74 478.10 Td (rade Controls \(DDTC\) may result in substantial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.10 Td (expenses and diversion of management. ) Tj ET Q q 0 0 0 rg BT 211.12 466.10 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 49.50 454.10 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 407.55 454.10 Td (fect on our business or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.10 Td (position, results of operations, or cash flows.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (Failure to maintain ef) Tj ET Q q 0 0 0 rg BT 140.72 418.10 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 49.50 406.10 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 422.11 406.10 Td (fect our stock price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (The SEC, as directed by Section404 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 290.28 382.10 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 49.50 370.10 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 49.50 358.10 Td (assessment by management of the ef) Tj ET Q q 0 0 0 rg BT 195.66 358.10 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 49.50 346.10 Td (registered public accounting firm must attest to and report on the ef) Tj ET Q q 0 0 0 rg BT 318.96 346.10 Td (fectiveness of our internal control over financial reporting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 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 49.50 322.10 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 49.50 310.10 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 49.50 298.10 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 49.50 274.10 Td (Provisions of our charter documents and Delaware law) Tj ET Q q 0 0 0 rg BT 276.65 274.10 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 49.50 262.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 262.10 Td (fects that could prevent or delay a change in control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 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 436.14 238.10 Td (ger or acquisition or make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (removal of incumbent directors or of) Tj ET Q q 0 0 0 rg BT 196.77 226.10 Td (ficers more dif) Tj ET Q q 0 0 0 rg BT 255.45 226.10 Td (ficult. ) Tj ET Q q 0 0 0 rg BT 281.38 226.10 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 49.50 214.10 Td (common stock at a premium over the market price. ) Tj ET Q q 0 0 0 rg BT 255.92 214.10 Td (These provisions include:) 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 (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 67.50 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 166.10 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 67.50 142.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 142.10 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 85.50 130.10 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 49.50 106.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 106.10 Td (e are subject to Section203 of the Delaware General Corporation Law) Tj ET Q q 0 0 0 rg BT 339.32 106.10 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 94.10 Td (from engaging in a mer) Tj ET Q q 0 0 0 rg BT 143.18 94.10 Td (ger) Tj ET Q q 0 0 0 rg BT 155.54 94.10 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 82.10 Td (following the date such person became an interested stockholder) Tj ET Q q 0 0 0 rg BT 307.35 82.10 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 70.10 Td (as otherwise provided. ) Tj ET Q q 0 0 0 rg BT 142.07 70.10 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 58.10 Td (mer) Tj ET Q q 0 0 0 rg BT 64.87 58.10 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 46.10 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 endstream endobj 137 0 obj <>] /Rotate 0 /Contents 138 0 R>> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 742.10 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 49.50 730.10 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 49.50 718.10 Td (which may discourage potential acquirers or result in a lower stock price.) Tj ET Q endstream endobj 139 0 obj <>] /Rotate 0 /Contents 140 0 R>> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 31.60 Td (68) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 50.00 730.10 Td (ITEM 6. 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Tj ET Q BT /F1 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 10, 2017) 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 10, 2017) 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 143 0 obj <>] /Rotate 0 /Contents 144 0 R>> endobj 144 0 obj <> stream BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 50 771.2669921875 m 120.9521484375 771.2669921875 l s q 0 0 1 rg BT 50.00 772.60 Td (T) Tj ET Q q 0 0 1 rg BT 55.41 772.60 Td (able of Contents) Tj ET Q BT /F1 10.00 Tf ET 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