Business Context and Reporting Period
Company: Skyworks Solutions, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: August 3, 2016
Event Date: August 1, 2016
This filing reports the completion of a "Subsequent Acquisition" related to a joint venture formed in 2014 with Panasonic Corporation regarding SAW and TC SAW filter products (the "Filter Business").
Key Financial Metrics
- Acquisition Cost: $76.5 million paid to Panasonic Corporation.
- Funding Source: Cash on hand.
- Ownership Stake: Skyworks acquired the remaining 34% interest in FilterCo, resulting in 100% ownership.
- Consolidation Impact: No impact on consolidated financial statements, as FilterCo operations were already consolidated since the Initial Acquisition in August 2014.
Material Changes
The primary material change is the transition from a 66% ownership stake to 100% ownership of Skyworks Panasonic Filter Solutions Japan Co., Ltd. (FilterCo). This transaction finalizes the terms of the stock purchase agreement originally entered into in July 2014.
Outlook and Management Commentary
Management indicates that the Subsequent Acquisition is not expected to impact Skyworks' consolidated financial statements moving forward. The operations of FilterCo have been fully consolidated with Skyworks' financial statements since the date of the Initial Acquisition in 2014.
Investor Verification Checklist
- Verify the $76.5 million cash outflow in the company's cash flow statement for the period ending August 1, 2016.
- Confirm that FilterCo's financial results were already included in Skyworks' consolidated reports prior to this date.
- Review the original July 2014 and August 2014 8-K filings for the full terms of the joint venture agreement.
- Check for any press releases (Exhibit 99.1) referenced in the filing for additional strategic context.