01—Abstract
Summary
Summary of the 10-K/A filed January 25, 2019. Cited figures are marked; the original filing is the authoritative source.
This Part III section of Skyworks Solutions, Inc.'s annual report on Form 10-K for fiscal year 2018 (year ended September 28, 2018) covers governance, executive compensation, security ownership, and fees rather than financial results.
It lists the Board of Directors and executive officers as of January 15, 2019, including David J. Aldrich as Chairman, Liam K. Griffin as President and Chief Executive Officer, and Kris Sennesael as Senior Vice President and Chief Financial Officer.
Board members are identified as independent under Nasdaq rules, with a majority of the board classed as independent. Compensation disclosures show Griffin's total fiscal 2018 compensation at $9,342,113,a and the CEO-to-median-employee pay ratio at approximately 447 times, based on a median employee total compensation of $20,881. The short-term incentive award for named executive officers was 89.2% of target, with revenue at 93.3% and non-GAAP operating income at 85.1% of target.
Stockholders approved named executive officer compensation with approximately 93%b of votes cast at the 2018 Annual Meeting. As of January 15, 2019, there were 174,059,816 shares outstanding.
The Vanguard Group, Inc. held 10.71%, BlackRock, Inc. held 7.59%, and Capital Research Global Investors held 6.40%. KPMG LLP's total fiscal 2018 fees were $2,758,090,c of which audit fees were $2,479,090.
02—Key points
Key Highlights
- CEO Liam K. Griffin's total fiscal 2018 compensation was $9,342,113, per the Summary Compensation Table.
- CEO-to-median-employee pay ratio of approximately 447 times, using a median employee total compensation of $20,881.
- Named executive officer short-term incentive awards equaled 89.2% of target, with revenue at 93.3% and non-GAAP operating income at 85.1% of target.
- Approximately 93% of votes cast at the 2018 Annual Meeting approved named executive officer compensation.
- 174,059,816 shares of common stock were issued and outstanding as of January 15, 2019.
- Largest reported beneficial owners were The Vanguard Group, Inc. (10.71%), BlackRock, Inc. (7.59%), and Capital Research Global Investors (6.40%).
- KPMG LLP total fees for fiscal 2018 were $2,758,090, with audit fees of $2,479,090 (89.9% of total).
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2018, Skyworks Solutions kept $0.24.
- Revenue$3.87B100.0%
- Cost of revenue−$1.92B49.6%
- Gross profit$1.95B50.4%
- Operating costs−$631.4M16.3%
- Operating income$1.32B34.1%
- Interest, other & tax−$400.9M10.4%
- Net income$918.4M23.7%
Where FY2018 revenue went
$3.87B- Cost of revenue: $1.92B, 50% of revenue
- Net income: $918.4M, 24% of revenue
- R&D: $404.5M, 10% of revenue
- SG&A: $207.8M, 5.4% of revenue
- Interest, other & tax: $400.9M, 10% of revenue
Kept 24% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2018filed January 25, 2019Financial Statements
FY2018 against FY2017
| Line item | FY2018FY2017 | Change |
|---|---|---|
| Revenue | $3.87B$3.65B | +5.9% |
| Cost of Revenue | $1.92B$1.81B | +6.0% |
| Gross Profit | $1.95B$1.84B | +5.9% |
| R&D Expenses | $404.50M$355.20M | +13.9% |
| SG&A Expenses | $207.80M$204.60M | +1.6% |
| Operating Expenses | $631.40M$588.00M | +7.4% |
| Operating Income | $1.32B$1.25B | +5.2% |
| Net Income | $918.40M$1.01B | −9.1% |
| EPS (Basic) | $5.06$5.48 | −7.7% |
| EPS (Diluted) | $5.01$5.41 | −7.4% |
| Shares Outstanding (Basic) | 181.30M184.30M | −1.6% |
| Shares Outstanding (Diluted) | 183.20M186.70M | −1.9% |
05—Questions
Frequently Asked Questions
Who leads Skyworks' board and management?
David J. Aldrich serves as Chairman of the Board, David J. McLachlan as Lead Independent Director, and Liam K. Griffin as President, Chief Executive Officer and Director. Kris Sennesael is Senior Vice President and Chief Financial Officer.
How was executive pay tied to performance in fiscal 2018?
Short-term incentives were based equally on revenue and non-GAAP earnings per share, later changed to non-GAAP operating income. Actual revenue and non-GAAP operating income reached 93.3% and 85.1% of target, resulting in awards equal to 89.2% of target. Long-term awards were 40% RSUs and 60% performance share awards.
What changes affected executive pay metrics in fiscal 2018?
In January 2018 the Compensation Committee replaced the non-GAAP EPS metric with non-GAAP operating income, citing the favorable impact of the Tax Act and the new stock repurchase program on EPS.
Who are the largest stockholders?
As of January 15, 2019, The Vanguard Group, Inc. held 18,647,000 shares (10.71%), BlackRock, Inc. held 13,206,360 shares (7.59%), and Capital Research Global Investors held 11,131,443 shares (6.40%).
What did the company pay its independent auditor?
KPMG LLP billed total fees of $2,758,090 for fiscal 2018, including audit fees of $2,479,090, tax fees of $240,500, and all other fees of $38,500. The Audit Committee preapproved all services.
06—Continue