Maxim Integrated Products Inc. (MXIM, Financial) filed Annual Report for the period ended 2011-06-25.
Maxim Integrated Products Inc. has a market cap of $6.39 billion; its shares were traded at around $22.13 with a P/E ratio of 12.57 and P/S ratio of 3.2. The dividend yield of Maxim Integrated Products Inc. stocks is 3.89%.
The Company estimates potential future returns and sales allowances related to current period product revenue. Management analyzes historical returns, changes in customer demand and acceptance of products when evaluating the adequacy of returns and sales allowances. Estimates made by us may differ from actual returns and sales allowances. These differences may materially impact reported revenue and amounts ultimately collected on accounts receivable. Historically, such differences have not been material. At June 25, 2011 and June 26, 2010, the Company had $16.0 million and $15.0 million accrued for returns and allowances against accounts receivable, respectively. During fiscal years 2011 and 2010, the Company recorded $74.5 million and $67.5 million for estimated returns and allowances against revenues, respectively. These amounts were offset by $73.5 million and $62.8 million actual returns and allowances given during fiscal years 2011 and 2010, respectively.
Inventories are stated at the lower of (i) standard cost, which approximates actual cost on a first-in-first-out basis, or (ii) market value. Our standard cost revision policy is to continuously monitor manufacturing variances and periodically revise standard costs. Because of the cyclical nature of the market, inventory levels, obsolescence of technology, and product life cycles, we generally write-down inventories to net realizable value based on 12 months forecasted product demand. Actual demand and market conditions may be lower than those projected by us. This difference could have a material adverse effect on our gross margin should inventory write-downs beyond those initially recorded become necessary. Alternatively, should actual demand and market conditions be more favorable than those estimated by us, gross margin could be favorably impacted. Historically, such differences have not been material. During fiscal years 2011, 2010 and 2009, we had inventory write-downs of $13.8 million, $3.7 million and $38.6 million, respectively.
We evaluate the recoverability of property, plant and equipment in accordance with ASC ("Accounting Standards Codification") No. 360, Accounting for the Property, Plant, and Equipment ("ASC No. 360"). We perform periodic reviews to determine whether facts and circumstances exist that would indicate that the carrying amounts of property, plant and equipment might not be fully recoverable. If facts and circumstances indicate that the carrying amount of property, plant and equipment might not be fully recoverable, we compare projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives against their respective carrying amounts. In the event that the projected undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets. Evaluation of impairment of property, plant and equipment requires estimates in the forecast of future operating results that are used in the preparation of the expected future undiscounted cash flows. Actual future operating results and the remaining economic lives of our property, plant and equipment could differ from our estimates used in assessing the recoverability of these assets. These differences could result in impairment charges, which could have a material adverse impact on our results of operations. We recorded impairment charges of $0.0 million, $8.3 million and $51.1 million during fiscal years 2011, 2010 and 2009, respectively.
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Maxim Integrated Products Inc. has a market cap of $6.39 billion; its shares were traded at around $22.13 with a P/E ratio of 12.57 and P/S ratio of 3.2. The dividend yield of Maxim Integrated Products Inc. stocks is 3.89%.
Highlight of Business Operations:
During fiscal year 2011, the Company repurchased approximately 10.9 million shares of its common stock for $231.0 million. As of June 25, 2011, the Company had remaining authorization of $93.8 million for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company's common stock and general market and business conditions.The Company estimates potential future returns and sales allowances related to current period product revenue. Management analyzes historical returns, changes in customer demand and acceptance of products when evaluating the adequacy of returns and sales allowances. Estimates made by us may differ from actual returns and sales allowances. These differences may materially impact reported revenue and amounts ultimately collected on accounts receivable. Historically, such differences have not been material. At June 25, 2011 and June 26, 2010, the Company had $16.0 million and $15.0 million accrued for returns and allowances against accounts receivable, respectively. During fiscal years 2011 and 2010, the Company recorded $74.5 million and $67.5 million for estimated returns and allowances against revenues, respectively. These amounts were offset by $73.5 million and $62.8 million actual returns and allowances given during fiscal years 2011 and 2010, respectively.
Inventories are stated at the lower of (i) standard cost, which approximates actual cost on a first-in-first-out basis, or (ii) market value. Our standard cost revision policy is to continuously monitor manufacturing variances and periodically revise standard costs. Because of the cyclical nature of the market, inventory levels, obsolescence of technology, and product life cycles, we generally write-down inventories to net realizable value based on 12 months forecasted product demand. Actual demand and market conditions may be lower than those projected by us. This difference could have a material adverse effect on our gross margin should inventory write-downs beyond those initially recorded become necessary. Alternatively, should actual demand and market conditions be more favorable than those estimated by us, gross margin could be favorably impacted. Historically, such differences have not been material. During fiscal years 2011, 2010 and 2009, we had inventory write-downs of $13.8 million, $3.7 million and $38.6 million, respectively.
We evaluate the recoverability of property, plant and equipment in accordance with ASC ("Accounting Standards Codification") No. 360, Accounting for the Property, Plant, and Equipment ("ASC No. 360"). We perform periodic reviews to determine whether facts and circumstances exist that would indicate that the carrying amounts of property, plant and equipment might not be fully recoverable. If facts and circumstances indicate that the carrying amount of property, plant and equipment might not be fully recoverable, we compare projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives against their respective carrying amounts. In the event that the projected undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are written down to their estimated fair values based on the expected discounted future cash flows attributable to the assets. Evaluation of impairment of property, plant and equipment requires estimates in the forecast of future operating results that are used in the preparation of the expected future undiscounted cash flows. Actual future operating results and the remaining economic lives of our property, plant and equipment could differ from our estimates used in assessing the recoverability of these assets. These differences could result in impairment charges, which could have a material adverse impact on our results of operations. We recorded impairment charges of $0.0 million, $8.3 million and $51.1 million during fiscal years 2011, 2010 and 2009, respectively.
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