Xilinx
Annual Report 2017

Plain-text annual report

XILINX INC FORM 10-K (Annual Report) Filed 05/15/17 for the Period Ending 04/01/17 Address Telephone CIK Symbol SIC Code Industry Sector Fiscal Year 2100 LOGIC DR SAN JOSE, CA 95124 4085597778 0000743988 XLNX 3674 - Semiconductors and Related Devices Semiconductors Technology 04/01 http://www.edgar-online.com © Copyright 2017, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. Table of Contents United StatesSecurities and Exchange CommissionWashington, D.C. 20549FORM 10-K(Mark One)þAnnual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended April 1, 2017oTransition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from ___________ to ____________.Commission File Number 000-18548Xilinx, Inc.(Exact name of registrant as specified in its charter)Delaware 77-0188631(State or other jurisdiction of (I.R.S. Employerincorporation or organization) Identification No.) 2100 Logic Drive, San Jose, CA 95124(Address of principal executive offices) (Zip Code)(Registrant's telephone number, including area code) (408) 559-7778Securities registered pursuant to Section 12(b) of the Act:Title of each class Name of each exchange on which registeredCommon stock, $0.01 par value The NASDAQ Global Select MarketSecurities registered pursuant to Section 12(g) of the Act: NoneIndicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES þ NO oIndicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES o NO þIndicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES þ NOoIndicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted andposted pursuant to Rule 405 of Regulation S-T (§ 232.405) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post suchfiles). YES þ NO oIndicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of theregistrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þIndicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growthcompany. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.Large accelerated filer þ Accelerated filer o Non-accelerated filer o Smaller reporting company o Emerging growth company o If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financialaccounting standards provided pursuant to Section 13(a) of the Exchange Act. o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). YES o NO þThe aggregate market value of the voting stock held by non-affiliates of the registrant based upon the closing price of the registrant's common stock on October 1, 2016 asreported on the NASDAQ Global Select Market was approximately $10,876,652,000 . Shares of common stock held by each executive officer and director and by each personwho owns 5% or more of the outstanding common stock have been excluded in that such persons may be deemed affiliates. This determination of affiliate status is notnecessarily a conclusive determination for other purposes.As of April 21, 2017 , the registrant had approximately 248,050,000 shares of Common Stock outstanding.DOCUMENTS INCORPORATED BY REFERENCEParts of the Proxy Statement for the Registrant's Annual Meeting of Stockholders to be held on August 9, 2017 are incorporated by reference into Part III of this Annual Reporton Form 10-K. Table of ContentsXilinx, Inc.Form 10-KFor the Fiscal Year Ended April 1, 2017TABLE OF CONTENTS PART I3Item 1. Business3Item 1A. Risk Factors14Item 1B. Unresolved Staff Comments24Item 2. Properties24Item 3. Legal Proceedings24Item 4. Mine Safety Disclosures24 PART II25Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities25Item 6. Selected Financial Data27Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations28Item 7A. Quantitative and Qualitative Disclosures about Market Risk39Item 8. Financial Statements and Supplementary Data41Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure77Item 9A. Controls and Procedures78Item 9B. Other Information78 PART III79Item 10. Directors, Executive Officers and Corporate Governance79Item 11. Executive Compensation79Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters79Item 13. Certain Relationships and Related Transactions, and Director Independence80Item 14. Principal Accounting Fees and Services80 PART IV81Item 15. Exhibits and Financial Statement Schedules81Signatures84 2Table of ContentsPART IFORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be found throughout this Annual Report and particularly in Items 1. "Business" and 3. "Legal Proceedings" which contain discussionsconcerning our development efforts, strategy, new product introductions, backlog and litigation. Forward-looking statements involve numerous known andunknown risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied. Such risks include, but are notlimited to, those discussed throughout this document as well as in Item 1A. "Risk Factors." Often, forward-looking statements can be identified by the use offorward-looking words, such as "may," "will," "could," "should," "expect," "believe," "anticipate," "estimate," "continue," "plan," "intend," "project" and othersimilar terminology, or the negative of such terms. We disclaim any responsibility to update or revise any forward-looking statement provided in this AnnualReport or in any of our other communications for any reason.ITEM 1.BUSINESSXilinx, Inc. (Xilinx, the Company or we) designs and develops programmable devices and associated technologies, including:•integrated circuits (ICs) in the form of programmable logic devices (PLDs), including programmable System on Chips (SoCs) and three-dimensional ICs(3D ICs);•software design tools to program the PLDs;•software development environments and embedded platforms;•targeted reference designs;•printed circuit boards; and•intellectual property (IP), which consists of Xilinx and various third-party verification and IP cores.In addition to its programmable platforms, Xilinx provides design services, customer training, field engineering and technical support.Our PLDs include field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs) that our customers program to perform desired logicfunctions, and programmable SoCs, which combine industry standard ARM processor-based systems with programmable logic in a single device. We also designand develop 3D ICs, which consist of a combination of FPGAs, transceivers and a wide memory interface in a single package to exceed the capacity andbandwidth of monolithic devices. Our product portfolio is designed to provide high integration and quick time-to-market for electronic equipment manufacturers insub-segments such as wireline and data center, wireless, aerospace and defense, test and measurement, industrial, scientific and medical, automotive, audio, videoand broadcast and consumer.We sell our products and services through independent domestic and foreign distributors and through direct sales to original equipment manufacturers (OEMs) andelectronic manufacturing service providers (EMS). Sales are generated by these independent distributors, independent sales representative or our direct salesorganization.Xilinx was founded and incorporated in California in February 1984. In April 1990, the Company was reincorporated in Delaware. Our corporate facilities andexecutive offices are located at 2100 Logic Drive, San Jose, California 95124, and our website address is www.xilinx.com.Industry OverviewThere are three principal types of ICs used in most digital electronic systems: processors, which generally are utilized for control and computing tasks; memorydevices, which are used for storing program instructions and data; and logic devices, which generally are used to manage the interchange and manipulation ofdigital signals within a system. Xilinx designs and develops PLDs, a type of logic device. Alternatives to PLDs may include application specific integrated circuits(ASICs) and application specific standard products (ASSPs). PLDs, ASICs and ASSPs may be utilized in many of the same types of electronic systems. However,differences in unit pricing, development cost, product performance, reliability, power consumption, capacity, features and functionality, ease of use and time-to-market determine which devices are best-suited for specific applications.3Table of ContentsPLDs have key competitive advantages over ASICs and ASSPs, including:•Faster time-to-market and increased design flexibility. Both of these advantages are enabled by Xilinx desktop software which allows users to implementand revise their designs quickly. In contrast, ASICs and ASSPs require significant development time and offer limited, if any, flexibility to make designchanges.•PLDs are standard components. This means that the same device can be sold to many different users for a myriad of applications. In sharp contrast,ASICs and ASSPs are customized for an individual user or a specific application.PLDs are generally disadvantaged in terms of relative device size when compared to chips that are designed to perform a fixed function in a single or small set ofapplications. ASICs and ASSPs tend to be smaller than PLDs performing the same fixed function, resulting in a lower unit cost. However, there is a high fixed costassociated with ASIC and ASSP development that is not applicable to PLD customers. This fixed cost of ASIC and ASSP development is expected to significantlyincrease on next generation technology nodes. From a total cost of development perspective, ASICs and ASSPs have generally been more cost effective when usedin high-volume production, and PLDs have generally been more cost effective when used in low- to mid-volume production. However, we expect PLDs to be ableto address higher volume applications and gain market share from ASIC and ASSP suppliers as the fixed cost of ASIC and ASSP development increases on nextgeneration technology nodes.An overview of typical PLD end market applications for our products is shown in the following table:End Markets Sub-Segments Applications Communications & Data Center Wireless • 3G/4G/5G Base Stations • Wireless Backhaul Wireline and Data Center • Enterprise Routers and Switches • Metro Optical Networks • Data Centers • High Performance Computing Industrial, Aerospace & Defense Industrial, Scientific and Medical • Factory Automation • Medical Imaging • Machine Vision • Augmented Reality Test and Measurement • Semiconductor Test and Measurement Equipment • ASIC Emulation and Prototyping Aerospace and Defense • Secure Communications • Avionics • Electronic Warfare and Surveillance Broadcast, Consumer & Consumer • Digital Televisions Automotive • Multifunction Printers Automotive • Driver Assistance Systems • Driver Information Systems • Infotainment Systems Audio, Video and Broadcast • Post Production Equipment • Broadcast Cameras 4Table of ContentsStrategy and CompetitionOur strategy for growth is the displacement of ASICs and ASSPs in the development of next generation electronic systems. The costs and risks associated withapplication-specific devices can only be justified for high-volume or highly-specialized commodity products. Programmable platforms, alternatively, are becomingcritical for our customers to meet increasingly stringent product requirements - cost, power, performance and density - in a business environment characterized byincreased complexity, shrinking market windows, rapidly changing market demands, capped engineering budgets, escalating ASIC and ASSP engineering costsand increased economic and development risk.With every new generation of FPGAs, our strategy is to increase the performance, density and system-level functionality and integration, while driving down costand power consumption at each manufacturing process node. This enables us to provide simpler, smarter programmable platforms and design methodologiesallowing our customers to focus on innovation and differentiation of their products.Our PLDs compete in the logic IC industry, an industry that is intensely competitive and characterized by rapid technological change, increasing levels ofintegration, product obsolescence and continuous price erosion. We expect continued competition from our primary PLD competitors such as Intel Corporation(Intel), Lattice Semiconductor Corporation (Lattice) and Microsemi Corporation (Microsemi), and from ASSP vendors such as Broadcom Corporation(Broadcom), Marvell Technology Group, Ltd. (Marvell) and Texas Instruments Incorporated (Texas Instruments), as well as from companies such as NVIDIAwith whom we traditionally have not participated in competing markets. In addition, we expect continued competition from the ASIC market, which has beenongoing since the inception of FPGAs. Other competitors include manufacturers of:•high-density programmable logic products characterized by FPGA-type architectures;•high-volume and low-cost FPGAs as programmable replacements for ASICs and ASSPs;•ASICs and ASSPs with incremental amounts of embedded programmable logic;•high-speed, low-density CPLDs;•high-performance digital signal processing (DSP) devices;•products with embedded processors;•products with embedded multi-gigabit transceivers; and•other new or emerging programmable logic products.We believe that important competitive factors in the logic IC industry include:•product pricing;•time-to-market;•product performance, reliability, quality, power consumption and density;•field upgradability;•adaptability of products to specific applications;•ease of use and functionality of software design tools;•availability and functionality of predefined IP;•inventory and supply chain management;•access to leading-edge process technology and assembly capacity;•ability to provide timely customer service and support; and•access to advanced packaging technology.Silicon Product OverviewA brief overview of the silicon product offerings is listed in the table below. These products comprise the majority of our revenues. Additionally, some of our moremature product families have been excluded from the table, although they continue to generate revenues. We operate and track our results in one operating segmentfor financial reporting purposes.5Table of ContentsProduct FamiliesPLDsDate IntroducedVirtex UltraScale+January 2016Kintex UltraScale+December 2015Zynq UltraScale+September 2015Virtex UltraScaleMay 2014Kintex UltraScaleNovember 2013Zynq-7000March 2011Virtex-7June 2010Kintex-7June 2010Artix-7June 2010Virtex-6February 2009Spartan-6February 2009Virtex-5May 2006See information under the caption "Results of Operations - Net Revenues" in Item 7. "Management's Discussion and Analysis of Financial Condition and Resultsof Operations" for information about our revenues from our product families. See also "Note 15. Segment Information" to our consolidated financial statementsincluded in Item 8. "Financial Information and Supplementary Data" for information regarding segments.UltraScale+ Product FamiliesThe UltraScale+ portfolio consists of three product families, and is manufactured using Taiwan Semiconductor Manufacturing Company Limited's (TSMC) 16nanometer (nm) FinFET+ process. The UltraScale+ portfolio includes FPGAs, 3D IC technology, and Multi- Processing System on a Chip (MPSoCs) products,combining new memory, 3D on 3D and multiprocessing SoC technologies.•The Zynq UltraScale+ product family represents the Company's second generation Programmable SoC family. This new family combines seven userprogrammable processors cores including a 64-bit quad-core ARM Cortex A53 Application Processing Unit, a 32-bit dual-core ARM Cortex R5 RealTime Processing Unit, and an ARM Mali 400 Graphics Processing Unit. These devices enable the development of next generation embedded vision,automotive, industrial Internet of things (IoT) and communication systems by providing significant increases in system level performance/watt and any-to-any connectivity with the security and safety required for next generation systems.•Kintex UltraScale+ devices provide a strong price/performance watt balance in a FinFET node, delivering a very cost-effective solution for high-endcapabilities including transceiver and memory interface line rates, as well as 100G connectivity cores. These devices are ideal for both packet processingand DSP-intensive functions, and are well suited for applications ranging from wireless technology to high-speed wired networking and data center.•Virtex UltraScale+ devices, which include industry-leading capabilities such as 32G Transceivers, Peripheral Component Interconnect Express (PCIe)Gen 4 integrated cores, and UltraRam on-chip memory technology, provide the required performance and integration needed for next generation datacenter, 400G and terabit wireline, test and measurement, and aerospace and defense applications.6Table of ContentsUltraScale Product FamiliesThese devices deliver an ASIC-class advantage, based on the UltraScale architecture and utilizing TSMC's 20SoC gate density process. These devices deliver nextgeneration routing, ASIC-like clocking, and enhancements to logic and fabric to eliminate interconnect bottlenecks while supporting consistent device utilization.•Kintex UltraScale FPGAs represent the Company's second generation mid-range FPGA family. These devices offer high price-performance at the lowestpower. Kintex UltraScale devices are designed to meet the requirements for the growing number of key applications including next generation wirelineand wireless communications and ultra-high definition displays and equipment.•Virtex UltraScale devices provide advanced levels of performance, system integration and bandwidth on a single chip. The largest family memberdelivers 4.4M logic cells, more than doubling Xilinx's industry's highest capacity device and delivering 50M equivalent ASIC gates. Virtex UltraScaledevices are expected to be used in the industry's most challenging applications including: 400G communication applications, high performancecomputing, surveillance and reconnaissance systems, and ASIC emulation and prototyping.28nm Product FamiliesThe 28nm product families are fabricated on a high-K metal gate, high performance and low power 28nm process technology. These product families are based ona scalable and optimized architecture, which enables design, IP portability and re-use across all families as well as provides designers the ability to achieve theappropriate combination of I/O support, performance, feature quantities, packaging and power consumption to address a wide range of applications. The 28nmproduct families include:•Virtex-7 FPGAs, including 3D ICs, are optimized for applications requiring the highest capacity, performance, DSP and serial connectivity withtransceivers operating up to 28G. Target applications include 400G and 100G line cards, high-performance computing and test and measurementapplications.•Kintex-7 FPGAs represent Xilinx's first mid-range FPGA family. These devices maximize price-performance and performance per watt. Targetapplications include wireless LTE infrastructure, video display technology and medical imaging.•Artix-7 FPGAs offer the lowest power and system cost at higher performance than alternative high volume FPGAs. These devices are targeted to highvolume applications such as handheld portable ultrasound devices, multi-function printers and software defined radios.•The Zynq-7000 family is the first family of Xilinx programmable SoCs. This new class of product combines an industry-standard ARM dual-core Cortex-A9 MPCore processing system with Xilinx 28nm architecture. There are five devices in the Zynq-7000 SoC family that allow designers to target costsensitive as well as high-performance applications from a single platform using industry-standard tools. These devices are designed to enable incrementalmarket opportunities in applications such as industrial motor control, driver assistance and smart surveillance systems, and smart heterogeneous wirelessnetworks.•Spartan-7 FPGAs offer the best performance and power consumption in their class, along with small form factor packaging to meet the most stringentrequirements. These devices are ideally suited for industrial, consumer, and automotive applications including any-to-any connectivity, sensor fusion, andembedded vision.40nm and 45nm Product FamiliesThe Virtex-6 FPGA family consists of 13 devices and is the sixth generation in the Virtex series of FPGAs. Virtex-6 FPGAs are fabricated on a high-performance40nm process technology. There are three Virtex-6 families, and each is optimized to deliver different feature mixes to address a variety of markets.The Spartan-6 FPGA family, is fabricated on a low-power 45nm process technology. The Spartan-6 family is the PLD industry's only 45nm high-volume FPGAfamily, consisting of 11 devices in two product families.Other Product FamiliesPrior generation Virtex families include Virtex-5, Virtex-4, Virtex-II Pro, Virtex-II and the original Virtex family. Spartan family FPGAs include Spartan-3FPGAs, the Spartan-3E family and the Spartan-3A family. Prior generation Spartan families include Spartan-IIE, Spartan-II, Spartan XL and the original Spartanfamily.7Table of ContentsCPLDs operate on the lowest end of the programmable logic density spectrum. CPLDs are single-chip, nonvolatile solutions characterized by instant-on anduniversal interconnect. CPLDs combine the advantages of ultra-low power consumption with the benefits of high performance and low cost. Prior generations ofCPLDs include the CoolRunner and XC9500 product families.EasyPath FPGAs EasyPath FPGAs offer customers a fast, simple method of cost-reducing FPGA designs. EasyPath FPGAs use the same production masks and fabrication processas standard FPGAs and are tested to a specific customer application to improve yield and lower costs. As a result, EasyPath FPGAs provide customers withsignificant cost reduction when compared to the standard FPGA devices without the conversion risk, engineering effort, or the additional time required to move toan ASIC. The latest generation of EasyPath FPGAs and EasyPath-7 FPGAs provide lower total product cost of ownership for cost-reducing high performanceFPGAs.Design Platforms and ServicesProgrammable PlatformsWe offer three types of programmable platforms that support our customers' designs and reduce their development efforts:The Base Platform is the delivery vehicle for all of our new silicon offerings used to develop and run customer-specific software applications and hardwaredesigns. Released at launch, the Base Platform is comprised of: FPGA silicon; Vivado Design Suite design environment; integration support for optional third-party synthesis, simulation and signal integrity tools; reference designs; development boards and IP.The Domain-Specific Platform targets one of the three primary Xilinx FPGA user profiles: the embedded processing developer; the DSP developer; or thelogic/connectivity developer. It accomplishes this by augmenting the Base Platform with a targeted set of integrated technologies, including: higher-level designmethodologies and tools; domain-specific IP including embedded, mixed signal, video, DSP and connectivity; domain-specific development hardware andreference designs; and operating systems and software.The Market-Specific Platform enables software or hardware developers to quickly build and run their specific application or solution. Built for specific marketssuch as automotive, consumer, aerospace and defense, communications, audio, video and broadcast, industrial, or scientific and medical, the Market-SpecificPlatform integrates both the Base and Domain-Specific Platforms with higher targeted applications elements such as IP, reference designs and boards optimized fora particular market.Design ToolsTo accommodate the various design methodologies and design flows employed by the wide range of our customers' user profiles such as system designers,algorithm designers, software coders and logic designers, we provide the appropriate design environment tailored to each user profile for design creation, designimplementation and design verification. In April 2012, Xilinx introduced the next-generation Vivado Design Suite designed to improve developer productivityresulting in faster design integration and implementation. The Vivado Design Suite hallmarks include an easy-to-use IP-centric design flow and significantimprovement in run times. The standards-based Vivado tools include high-level synthesis to provide a more direct flow in retargeting DSPs and general purposeprocessor designs into our FPGAs, IP Integrator to rapidly stitch together cores at higher levels of abstraction, and a new analytical place-and-route engine whichsignificantly improves run times. The Vivado Design Suite supports Xilinx 7 series FPGAs and Zynq-7000, our programmable SoCs, as well as the Ultrascale andUltrascale+ product generations.The previous generation tool suite, the ISE Design Suite, supports Xilinx 7 series FPGAs, programmable SoCs and all previous generation FPGAs, enablingcustomers to transition to the Vivado Design Suite when the timing is right for their design needs. Both the Vivado Design Suite and ISE Design Suite operate witha wide range of third-party Electronic Design Automation software point-tools offerings.In early 2015, Xilinx also introduced the SDx development environment, which has significantly expanded the Xilinx user base to include the broad community ofsystems and software engineers in both existing and new markets. This innovative development environment also enables end user and third party platformdevelopers to rapidly define, integrate and verify system level solutions and provide their end customers with a customized programming environment. The SDxfamily includes the SDNet environment, which enables the easy creation of high-performance packet processing systems with high level user definedspecifications and compilation to highly optimized FPGAs; the SDAccel environment for OpenCL, C and C++ software designers focusing on data centeracceleration applications; and the SDSoC environment for All Programmable SoCs and MPSoCs.8Table of ContentsIntellectual PropertyXilinx and various third parties offer hundreds of no charge and fee-bearing IP core licenses covering Ethernet, memory controllers, Interlaken and PCIe interfaces,as well as an abundance of domain-specific IP in the areas of embedded, DSP and connectivity, and market-specific IP cores. In addition, our products andtechnology leverage industry standards such as ARM AMBA AXI-4 interconnect technology, IP-XACT and IEEE P1735 encryption to facilitate plug-and-playFPGA design and take advantage of the large ecosystem of ARM IP developers.Development Boards, Kits and Configuration ProductsIn addition to the broad selection of legacy development boards presently offered, we have introduced a new unified board strategy that enables the creation of astandardized and coordinated set of base boards available both from Xilinx and our ecosystem vendors, all utilizing the industry-standard extensions that enablecustomization for market specific applications. Adopting this standard for all of our base boards enables the creation of a scalable and extensible deliverymechanism for all Xilinx programmable platforms.We also offer comprehensive development kits including hardware, design tools, IP and reference designs that are designed to streamline and accelerate thedevelopment of domain-specific and market-specific applications.Finally, Xilinx offers a range of configuration products including one-time programmable and in-system programmable storage devices to configure XilinxFPGAs. These programmable read-only memory (PROM) products support all of our FPGA devices.Third-Party AlliancesXilinx and certain third parties have developed and continue to offer a robust ecosystem of IP, boards, tools, services and support through the Xilinx allianceprogram. Xilinx also works with these third parties to promote our programmable platforms through third-party tools, IP, software, boards and design services.In May of 2016, Xilinx led the formation of the very broad Cache Coherent Interconnect Acceleration (CCIX) consortium with the singular goal of bringing a highperformance, open acceleration framework to the data center market. As of March of 2017, this consortium had approximately 30 members, ranging from siliconproviders to a rich ecosystem of partners including design, verification, software and system vendors.Engineering ServicesXilinx engineering services provide customers with engineering resources to augment their design teams and to provide expert design-specific advice. Xilinxtailors its engineering services to the needs of its customers, ranging from hands-on training to full design creation and implementation.Research and DevelopmentOur research and development (R&D) activities are primarily directed towards the design of new ICs and the development of new software design automationtools for hardware and embedded software, the design of logic IP, the adoption of advanced semiconductor manufacturing processes for ongoing cost reductions,performance and signal integrity improvements and lowering PLD power consumption.As a result of our R&D efforts, we have introduced a number of new products during the past several years including the Virtex, Kintex and Zynq UltraScale+,Virtex & Kintex UltraScale and Artix, Kintex, Virtex & Zynq 7 Series program families. We have enhanced our IP core offerings and introduced our nextgeneration software design suite (Vivado) optimized for SDSoC, SDAccel and SDNet application development. Through process technology collaboration withour foundry suppliers along with strategic investment in EDA tools and improved design techniques, we have been the first PLD Company to ship 45nm high-volume, 28nm, 20nm and 16nm FPGA devices. Additionally, our investment in R&D has allowed us to ship the industry's first 28nm and 16nm devices withembedded ARM technology as well as the industry's first 3D IC devices on the 28nm and 20nm process nodes.We believe technical leadership and innovation are essential to our future success, and we continue to invest in our technology. In fiscal 2017 , 2016 and 2015 , ourR&D expenses were $601.4 million , $533.9 million and $525.7 million , respectively.9Table of ContentsSales and DistributionWe sell our products to OEMs, EMS and to electronic components distributors who resell these products to OEMs and EMS.We use a dedicated global sales and marketing organization, and to a lesser extent, independent sales representatives, to generate sales. In general, we focus ourdirect demand creation efforts on a limited number of key accounts. Distributors and independent sales representatives create demand within the balance of ourcustomer base in defined territories. Distributors also provide inventory, value-added services and logistics for a wide range of our OEM customers.Whether Xilinx, the distributor, or the independent sales representative identifies the sales opportunity, a local distributor will process and fulfill the majority of allcustomer orders. In such situations, distributors are the sellers of the products and as such they bear most legal and financial risks generally related to the sale ofcommercial goods, including such risks as credit loss, inventory shrinkage, theft and foreign currency fluctuations, but excluding certain indemnity and warrantyliabilities.In accordance with our distribution agreements and industry practice, we have granted our authorized distributors the contractual right to return certain amounts ofunsold product on a periodic basis and also receive price adjustments for unsold product in the case of a change in list prices subsequent to the initial sale. Revenuerecognition on shipments to distributors worldwide is deferred until the products are sold to the distributors' end customers.Avnet, Inc. (Avnet) distributes the substantial majority of our products worldwide. As of April 1, 2017 and April 2, 2016 , Avnet accounted for 59% and 75% ,respectively, of our total net accounts receivable. Resale of product through Avnet accounted for 44% , 50% and 43% of our worldwide net revenues in fiscal 2017, 2016 and 2015 , respectively. We also use other regional distributors throughout the world. We believe distributors provide a cost-effective means of reaching abroad range of customers while providing efficient logistics services. Since PLDs are standard products, they do not carry many of the inventory risks posed byASICs. From time to time, we may add or terminate distributors in specific geographies, or move customers to a direct support or fulfillment model as we deemappropriate given our strategies, the level of distributor business activity and distributor performance and financial condition. See "Note 2. Summary of SignificantAccounting Policies and Concentrations of Risk" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data," forinformation about concentrations of credit risk and "Note 15. Segment Information" for information about our revenues from external customers and domestic andinternational operations.No end customer accounted for more than 10% of our net revenues in fiscal 2017 , 2016 or 2015 .BacklogAs of April 1, 2017 , our backlog from OEM customers and backlog from end customers reported by our distributors scheduled for delivery within the next threemonths was $356.0 million, compared to $289.0 million as of April 2, 2016 . Orders from end customers to our distributors are subject to changes in deliveryschedules or to cancellation without significant penalty. As a result, backlog from both OEM customers and end customers reported by our distributors as of anyparticular period may not be a reliable indicator of revenue for any future period.Wafer FabricationAs a fabless semiconductor company, we do not manufacture wafers used for our IC products or PROMs. Rather, we purchase our wafers from independentfoundries including TSMC, United Microelectronics Corporation (UMC) and Samsung Electronics Co., Ltd. (Samsung). TSMC manufactures the wafers for ournewest products.Precise terms with respect to the volume and timing of wafer production and the pricing of wafers produced by the semiconductor foundries are determined byperiodic negotiations with each wafer foundry.Our strategy is to focus our resources on market development and creating new ICs and software design tools rather than on wafer fabrication. We continuouslyevaluate opportunities to enhance foundry relationships and/or obtain additional capacity from our main suppliers as well as other suppliers of wafers manufacturedwith leading-edge process technologies, and we adjust loadings at particular foundries to meet our business needs. Sort, Assembly and TestWafers are sorted by the foundry or independent sort subcontractors. Sorted die are assembled by subcontractors. During the assembly process, the wafers areseparated into individual die, which are then assembled into various package types. Following10Table of Contentsassembly, the packaged units are generally tested by independent test subcontractors or by Xilinx personnel. We purchase most of our assembly services fromSiliconware Precision Industries Ltd. and most of our test services from King Yuan Electronics Company in Taiwan.Quality CertificationXilinx has achieved and currently maintains quality management system certification to TL9000/ISO9001 for our facilities in San Jose, California; Longmont,Colorado; Singapore; and Hyderabad, India. In addition, Xilinx achieved and currently maintains ISO 14001 and OHSAS 18001 environmental health and safetymanagement system certifications in the San Jose and Singapore locations.Intellectual Property and LicensesWhile our various proprietary intellectual property rights (including patents, copyrights, trade secrets, and trademarks) are important to our success, we believe ourbusiness as a whole is not materially dependent on any particular patent or license, or any particular group of patents or licenses. As of April 1, 2017 , we held over4,000 issued patents, which vary in duration, and over 500 pending patent applications relating to our proprietary technology in various jurisdictions around theworld. We maintain an active program of filing for additional patents in the areas of, but not limited to, circuits, software, IC architecture, IP cores, system design,testing methodologies and other technologies relating to our products and business. We licensed portions of our patent portfolio to certain external parties andobtained patent licenses from certain third-parties as well.We have acquired various licenses from third parties to certain technologies that are implemented in IP cores or embedded in our devices, such as processors.These licenses support our continuing ability to make and sell our products. We have also acquired various licenses to certain third-party proprietary software,open-source software, and related technologies, such as compilers, for our design tools. Continued use of such software and technology is important to theoperation of the design tools upon which customers depend.We maintain the Xilinx trade name and trademarks, including the following trademarks that are registered in the U.S. and other countries: Xilinx, the Xilinx logo,Artix, CoolRunner, ISE, Kintex, Spartan, Virtex, Vivado, and Zynq. Maintaining these trademarks, and the goodwill associated with them, is important to ourbusiness. We have also obtained the rights to use certain trademarks owned by consortiums and other trademark owners that are related to our products andbusiness.We intend to continue to protect our intellectual property vigorously. We believe that failure to enforce our intellectual property rights or failure to protect ourtrade secrets effectively could have an adverse effect on our financial condition and results of operations. We incurred, and in the future we may continue to incur,litigation expenses to defend against claims of infringement and to enforce our intellectual property rights against third parties. However, any such litigation mayor may not be successful.Corporate ResponsibilityXilinx places a high level of importance on corporate responsibility. Through senior-level sponsorship, regular environmental, health and safety assessments andcompany-wide performance targets, we strive to achieve a culture that emphasizes contribution to local and global communities through a number of keyinitiatives:CompanyWe strive to meet or exceed industry and regulatory standards for ethical business practices, product responsibility, and supplier management. All of Xilinx'sdirectors, officers and employees are required to comply not only with the letter of the laws, rules and regulations that govern the conduct of our business, but alsowith the spirit of those laws.EnvironmentWe continually monitor regulatory requirement and resource trends in order to identify, manage and control activities that have an environmental impact. We focuson the conservations of energy and natural resource, reducing the solid and chemical waste of our operations, avoiding and preventing pollution and minimizingour overall environmental impact with regards to the communities around us and consistent with global climate change efforts.11Table of ContentsCommunityWe are committed to growing strategic relationships with a wide range of local organizations and programs that are designed to develop and strengthencommunities located around the world. Xilinx develops local community relationships at key sites through funding and involvement that encourages activeparticipation, teamwork, and volunteerism. Xilinx supports opportunities initiated by its employees and that involve participation and empowerment of itsemployees. We are committed to charitable giving programs that work towards systemic change and measurable results.WorkplaceWe provide a safe and healthy work environment for all employees. Employee diversity and inclusion are embraced and opportunities for training, growth, andadvancement are strongly encouraged. The Xilinx Code of Social Responsibility outlines standards to ensure that working conditions at Xilinx are safe and thatworkers are treated with respect, fairness and dignity.EmployeesAs of April 1, 2017 , we had 3,831 employees compared to 3,458 as of the end of the prior fiscal year. None of our employees are represented by a labor union. Wehave not experienced any work stoppages and believe we maintain good employee relations.Executive Officers of the RegistrantCertain information regarding the executive officers and persons chosen to become executive officers of Xilinx as of May 15, 2017 is set forth below:Name Age PositionMoshe N. Gavrielov 62 President and Chief Executive Officer (CEO)Lorenzo A. Flores 52 Senior Vice President and Chief Financial Officer (CFO)Steven L. Glaser 55 Senior Vice President, Corporate Strategy and MarketingScott R. Hover-Smoot 62 Senior Vice President, General Counsel and SecretaryVictor Peng 57 Chief Operating OfficerKrishna Rangasayee 48 Executive Vice President of Global SalesVincent L. Tong 55 Executive Vice President, Global Operations and QualityThere are no family relationships among the executive officers of the Company or the Board of Directors.Moshe N. Gavrielov joined the Company in January 2008 as President and CEO and was appointed to the Board of Directors in February 2008. Prior to joiningthe Company, Mr. Gavrielov served at Cadence Design Systems, Inc., an electronic design automation company, as Executive Vice President and GeneralManager of the Verification Division from April 2005 through November 2007. Mr. Gavrielov served as CEO of Verisity Ltd., an electronic design automationcompany, from March 1998 to April 2005 before its acquisition by Cadence Design Systems, Inc. Prior to joining Verisity, Mr. Gavrielov spent nearly 10 years atLSI Corporation (formerly LSI Logic Corporation), a semiconductor manufacturer, in a variety of executive management positions, including Executive VicePresident of the Products Group, Senior Vice President and General Manager of International Marketing and Sales and Senior Vice President and General Managerof LSI Logic Europe plc. Additionally, Mr. Gavrielov held various engineering and engineering management positions at Digital Equipment Corporation andNational Semiconductor Corporation.Lorenzo A. Flores joined the Company in September 2008 and currently serves as Senior Vice President and CFO, a position he has held since May 2016. FromJuly 2012 to May 2016, Mr. Flores served as Corporate Vice President of Finance and Corporate Controller. From September 2008 to June 2012 he served as VicePresident of Finance and Corporate Controller. Prior to joining the Company, Mr. Flores was Assistant Vice President of Financial Planning and Analysis atCognizant Technology Solutions, served as CFO of a venture funded startup, and spent ten years at Intel Corporation, a semiconductor chip maker, serving in avariety of positions, including Controller, Intel Architecture CPUs and Controller, Telecommunications and Embedded Group. 12Table of ContentsSteven L. Glaser joined the Company in January 2011 and currently serves as Senior Vice President, Corporate Strategy and Marketing, a position he has heldsince April 2012. From January 2011 to April 2012, he served as Corporate Vice President, Strategic Planning. Prior to joining the Company, Mr. Glaser heldvarious senior positions in Cadence Design Systems between April 2005 and January 2011, including Corporate Vice President of Strategic Development andCorporate Vice President of Marketing for the Verification Division. From June 2003 to April 2005, he served as Senior Vice President of Marketing at VerisityLtd. Prior to that, Mr. Glaser held various senior business and technical positions at companies in the semiconductor and electronic design automation industries.Scott R. Hover-Smoot joined the Company in October 2007 and currently serves as Senior Vice President, General Counsel and Secretary, a position he has heldsince May 2014. From October 2007 to May 2014, Mr. Hover-Smoot served as Corporate Vice President, General Counsel and Secretary. From November 2001 toOctober 2007, Mr. Hover-Smoot served as Regional Counsel and Director of Legal Operations with TSMC, an independent semiconductor foundry. He served asVice President and General Counsel of California Micro Devices Corporation, a provider of application-specific protection devices and display electronics devicesfrom June 1994 to November 2001. Prior to joining California Micro Devices Corporation, Mr. Hover-Smoot spent over 20 years working in law firms includingBerliner-Cohen, Flehr, Hohbach, Test, Albritton & Herbert and Lyon & Lyon.Victor Peng joined the Company in April 2008 and currently serves as Chief Operating Officer, a position he has held since April 2017. From July 2014 to April2017, he served as Executive Vice President and General Manager of Products. From May 2013 through April 2014, Mr. Peng served as Senior Vice President andGeneral Manager of the Programmable Platforms Group. From May 2012 through April 2013, he served as Senior Vice President of the Programmable PlatformsGroup. From November 2008 through April 2012, he served as Senior Vice President of the Programmable Platforms Development Group. Prior to joining theCompany, Mr. Peng served as Corporate Vice President, Graphics Products Group at Advanced Micro Devices (AMD), a provider of processing solutions, fromNovember 2005 to April 2008. Prior to joining AMD, Mr. Peng served in a variety of executive engineering positions at companies in the semiconductor andprocessor industries. Krishna Rangasayee joined the Company in July 1999 and currently serves as Executive Vice President of Global Sales, a position he has held since April 2017. From January 2015 to April 2017, Mr. Rangasayee served as Senior Vice President and General Manager, Global Sales and Markets. From October 2013 toJanuary 2015, he served as Senior Vice President and General Manager, Market Segments and Communications Business Unit. From April 2012 to October 2013,he served as Senior Vice President and General Manager, Communications Business Unit. Prior to that, he served in a number of key roles, including as CorporateVice President and General Manager, Communications Unit, Vice President of Strategic Planning and Senior Director of Vertical Markets and Partnerships. Priorto joining Xilinx, Mr. Rangasayee held various positions at Altera, a provider of programmable logic solutions, and Cypress Semiconductor, a semiconductorcompany.Vincent L. Tong joined the Company in May 1990 and currently serves as Executive Vice President, Global Operations & Quality, a position he has held sinceMay 2016. From January 2015 to May 2016, Mr. Tong served as Senior Vice President, Global Operations and Quality. He also has served as Executive Leader,Asia Pacific since October 2011. Mr. Tong previously served as Senior Vice President, Worldwide Quality and New Product Introductions from June 2008 toJanuary 2015. He has also served as Vice President, Worldwide Quality and Reliability from August 2006 to June 2008 and prior to that as Vice President ofProduct Technology from May 2001 to July 2006. Prior to joining the Company, Mr. Tong served in a variety of engineering and management positions atMonolithic Memories, a producer of logic devices, and AMD. He holds seven U.S. patents.Additional InformationWe make available, via a link through our investor relations website located at www.investor.xilinx.com, access to our Annual Report on Form 10-K, quarterlyreports on Form 10-Q, current reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the U.S. SecuritiesExchange Act of 1934, as amended (Exchange Act) as soon as reasonably practicable after they are electronically filed with or furnished to the Securities andExchange Commission (SEC). All such filings on our investor relations website are available free of charge. Printed copies of these documents are also available tostockholders without charge, upon written request directed to Xilinx, Inc., Attn: Investor Relations, 2100 Logic Drive, San Jose, CA 95124. Further, a copy of thisAnnual Report on Form 10-K is located at the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information on the operation of thePublic Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and informationstatements and other information regarding our filings at http://www.sec.gov. The content on any website referred to in this filing is not incorporated by referenceinto this filing unless expressly noted otherwise.Additional information required by this Item 1 is incorporated by reference to the section captioned "Net Revenues - Net Revenues by Geography" in Item 7."Management's Discussion and Analysis of Financial Condition and Results of Operations" and to "Note13Table of Contents15. Segment Information" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data."This annual report includes trademarks and service marks of Xilinx and other companies that are unregistered and registered in the U.S. and other countries.ITEM 1A.RISK FACTORSThe following risk factors and other information included in this Annual Report on Form 10-K should be carefully considered. The risks and uncertaintiesdescribed below are not the only risks to the Company. Additional risks and uncertainties not presently known to the Company, or that the Company's managementcurrently deems immaterial, also may impair its business operations. If any of the risks described below were to occur, our business, financial condition, operatingresults and cash flows could be materially adversely affected.Our success depends on our ability to develop and introduce new products and failure to do so would have a material adverse impact on our financialcondition and results of operations.Our success depends in large part on our ability to develop and introduce new products that address customer requirements and compete effectively on the basis ofprice, density, functionality, power consumption and performance. Consolidation in our industry may increasingly mean that our competitors have greaterresources, or other synergies, that provide them with a competitive advantage in those regards. The success of new product introductions is dependent upon severalfactors, including:•timely completion of new product designs;•ability to generate new design opportunities and design wins;•availability of specialized field application engineering resources supporting demand creation and customer adoption of new products;•ability to utilize advanced manufacturing process technologies on circuit geometries of 28nm and smaller;•achieving acceptable yields;•ability to obtain adequate production capacity from our wafer foundries and assembly and test subcontractors;•ability to obtain advanced packaging;•availability of supporting software design tools;•utilization of predefined IP logic;•customer acceptance of advanced features in our new products;•ability of our customers to complete their product designs and bring them to market; and•market acceptance of our customers' products.Our product development efforts may not be successful, our new products may not achieve industry acceptance and we may not achieve the necessary volume ofproduction that would lead to further per unit cost reductions. Revenues relating to our mature products are expected to decline in the future, which is normal forour product life cycles. As a result, we may be increasingly dependent on revenues derived from design wins for our newer products as well as anticipated costreductions in the manufacture of our current products. We rely primarily on obtaining yield improvements and corresponding cost reductions in the manufacture ofexisting products, and on introducing new products that incorporate advanced features and other price/performance factors that enable us to increase revenueswhile maintaining consistent margins. To the extent that such cost reductions and new product introductions do not occur in a timely manner, or to the extent thatour products do not achieve market acceptance at prices with higher margins, our financial condition and results of operations could be materially adverselyaffected. We rely on independent foundries for the manufacture of all of our products and a manufacturing problem or insufficient foundry capacity couldadversely affect our operations.Most of our wafers are manufactured in Taiwan by UMC and, for our newest products, by TSMC. In addition, we also have wafers manufactured in South Koreaby Samsung Electronics Co., Ltd. Terms with respect to the volume and timing of wafer production and the pricing of wafers produced by the semiconductorfoundries are determined by periodic negotiations between us and these wafer foundries, which usually result in short-term agreements that do not provide forlong-term supply or allocation commitments. We are dependent on these foundries to supply the substantial majority of our wafers. We rely on UMC, TSMC andour other foundries to produce wafers with competitive performance attributes. Therefore, the foundries, particularly TSMC who manufactures our newestproducts, must be able to transition to advanced manufacturing process technologies and increased wafer sizes, produce wafers at acceptable yields and deliverthem in a timely manner. Furthermore, we cannot guarantee that the foundries that supply our wafers will offer us competitive pricing terms or other commercialterms important to our business.14Table of ContentsWe cannot guarantee that our foundries will not experience manufacturing problems, including delays in the realization of advanced manufacturing processtechnologies or difficulties due to limitations of new and existing process technologies. Furthermore, we cannot guarantee the foundries will be able to manufacturesufficient quantities of our products or that they will continue to manufacture a product for the full life of the product. In addition, weak economic conditions mayadversely impact the financial health and viability of the foundries and result in their insolvency or their inability to meet their commitments to us. For example,we may experience supply shortages due to the difficulties foundries may encounter if they must rapidly increase their production capacities from low utilizationlevels to high utilization levels because of an unexpected increase in demand. We may also experience supply shortages due to very strong demand for ourproducts and a surge in demand for semiconductors in general, which may lead to tightening of foundry capacity across the industry. The insolvency of a foundryor any significant manufacturing problem or insufficient foundry capacity would disrupt our operations and negatively impact our financial condition and results ofoperations.Earthquakes and other natural disasters could disrupt our operations and have a material adverse effect on our financial condition and results ofoperations.The independent foundries, upon which we rely to manufacture our products, as well as our California and Singapore facilities, are located in regions that aresubject to earthquakes and other natural disasters. UMC's and TSMC's foundries in Taiwan and our assembly and test partners in other regions as well as many ofour operations in California are centered in areas that have been seismically active in the recent past and some areas have been affected by other natural disasterssuch as typhoons. Any catastrophic event in these locations will disrupt our operations, including our manufacturing activities, and our insurance may not coverlosses resulting from such disruptions of our operations. This type of disruption could result in our inability to manufacture or ship products, thereby materiallyadversely affecting our financial condition and results of operations. For example, as a result of the March 2011 earthquake in Japan, production at the Seikofoundry at Sakata was halted temporarily, impacting production of some of our older devices. In addition, suppliers of wafers and substrates were forced to haltproduction temporarily. Disruption of operations at these foundries for any reason, including other natural disasters such as typhoons, tsunamis, volcano eruptions,fires or floods, as well as disruptions in access to adequate supplies of electricity, natural gas or water could cause delays in shipments of our products, and couldhave a material adverse effect on our results of operations. Furthermore, natural disasters can also indirectly impact us. For example, our customers' supply ofother complimentary products may be disrupted by a natural disaster and may cause them to delay orders of our products. More vertically-integrated competitorsmay be less exposed to some or all of these and other risks.General negative economic conditions and any related deterioration in the global business environment could have a material adverse effect on ourbusiness, operating results and financial condition.As a result of the 2008 global financial crisis, global consumer confidence eroded amidst concerns over declining asset values, inflation, volatility in energy costs,geopolitical issues, the availability and cost of credit, rising unemployment, and the stability and solvency of financial institutions, financial markets, businessesand sovereign nations, among other concerns. These concerns slowed global economic growth and resulted in recessions in numerous countries, including many ofthose in North America, Europe and Asia. The financial condition of certain sovereign nations, particularly in Europe, is of continuing concern as the sovereigndebt crisis remains unresolved. These weak economic conditions resulted in reduced customer demand and had a negative impact on our results of operations insome parts of fiscal 2012 and fiscal 2013. If weak economic conditions return, there may be a number of negative effects on our business, including customers orpotential customers reducing or delaying orders, the insolvency of key suppliers, potentially causing production delays, the inability of customers to obtain credit,and the insolvency of one or more customers. Any of these effects could impact our ability to effectively manage inventory levels and collect receivables andultimately decrease our net revenues and profitability.The semiconductor industry is characterized by cyclical market patterns and a significant industry downturn could adversely affect our operating results.The semiconductor industry is highly cyclical and our financial performance has been affected by downturns in the industry. Down cycles are generallycharacterized by price erosion and weaker demand for our products. Weaker demand for our products resulting from economic conditions in the end markets weserve and reduced capital spending by our customers can result, and in the past has resulted, in excess and obsolete inventories and corresponding inventory write-downs. We attempt to identify changes in market conditions as soon as possible; however, the dynamics of the market in which we operate make prediction of andtimely reaction to such events difficult. Due to these and other factors, our past results are not reliable predictors of our future results.15Table of ContentsThe nature of our business makes our revenues difficult to predict which could have an adverse impact on our business.In addition to the challenging market conditions we may face, we have limited visibility into the demand for our products, particularly new products, becausedemand for our products depends upon our products being designed into our end customers' products and those products achieving market acceptance. Due to thecomplexity of our customers' designs, the design to volume production process for our customers requires a substantial amount of time, frequently longer than ayear. In addition to this, other factors may affect our end customers' demand for our products, including, but not limited to, end customer program delays and theability of end customers to secure other complementary products. We also are dependent upon "turns," orders received and turned for shipment in the same quarter.These factors make it difficult for us to forecast future sales and project quarterly revenues. The difficulty in forecasting future sales impairs our ability to projectour inventory requirements, which could result, and in the past has resulted, in inventory write-downs or failure to meet customer product demands in a timelymanner. In addition, difficulty in forecasting revenues compromises our ability to provide forward-looking revenue and earnings guidance.If we are not able to compete successfully in our industry, our financial results and future prospects will be adversely affected.Our PLDs compete in the IC industry, an industry that is intensely competitive, continues to consolidate, and is characterized by rapid technological change,increasing levels of integration, product obsolescence and continuous price erosion. We expect increased competition from our primary PLD competitors, Intel,Lattice and Microsemi, and from new market entrants. In addition, competition from the ASIC market and from the ASSP market continues. We believe thatimportant competitive factors in the logic IC industry include:•product pricing;•time-to-market;•product performance, reliability, quality, power consumption and density;•field upgradeability;•adaptability of products to specific applications;•ease of use and functionality of software design tools;•availability and functionality of predefined IP logic;•inventory and supply chain management;•access to leading-edge process technology and assembly capacity;•ability to provide timely customer service and support; and•access to advanced packaging technology.Our strategy for expansion in the logic market includes continued introduction of new product architectures that address high-volume, low-cost and low-powerapplications as well as high-performance, high-density applications. However, we may not be successful in executing this strategy. In addition, we anticipatecontinued pressure from our customers to reduce prices, which may outpace our ability to lower the cost for established products.Other competitors include manufacturers of:•high-density programmable logic products characterized by FPGA type architectures;•high-volume and low-cost FPGAs as programmable replacements for ASICs and ASSPs;•ASICs and ASSPs with incremental amounts of embedded programmable logic;•high-speed, low-density complex programmable logic devices;•high-performance digital signal processing devices;•products with embedded processors;•products with embedded multi-gigabit transceivers; and•other new or emerging programmable logic products.Several companies have introduced products that compete with ours or have announced their intention to sell PLD products. To the extent that our efforts tocompete are not successful, our financial condition and results of operations could be materially adversely affected.The benefits of programmable logic have attracted a number of competitors to this segment. We recognize that different applications require differentprogrammable technologies, and we are developing architectures, processes and products to meet these varying customer needs. Recognizing the increasingimportance of standard software solutions, we have developed common software design tools that support the full range of our IC products. We believe thatautomation and ease of design are significant competitive factors in this segment.16Table of ContentsWe could also face competition from our licensees. In the past we have granted limited rights to other companies with respect to certain aspects of our oldertechnology, and we may do so in the future. Granting such rights may enable these companies to manufacture and market products that may be competitive withsome of our older products.Increased costs of wafers and materials, or shortages in wafers and materials, could adversely impact our gross margins and lead to reduced revenues.If greater demand for wafers is not offset by an increase in foundry capacity, market demand for wafers or production and assembly materials increases, or if asupplier of our wafers or other materials ceases or suspends operations, our supply of wafers and other materials could become limited. Such shortages raise thelikelihood of potential wafer price increases, wafer shortages or shortages in materials at production and test facilities, resulting in potential inability to addresscustomer product demands in a timely manner. For example, when certain suppliers were forced to temporarily halt production as the result of a natural disaster,this resulted in a tightening of supply for those materials. Such shortages of wafers and materials as well as increases in wafer or materials prices could adverselyaffect our gross margins and would adversely affect our ability to meet customer demands and lead to reduced revenue.We depend on distributors, primarily Avnet, to generate a significant portion of our sales and complete order fulfillment.Resale of product through Avnet accounted for 44% of our worldwide net revenues in fiscal 2017 and as of April 1, 2017 , Avnet accounted for 59% of our totalnet accounts receivable. Any adverse change to our relationship with Avnet or our remaining distributors could have a material impact on our business.Furthermore, if a key distributor materially defaults on a contract or otherwise fails to perform, our business and financial results would suffer. In addition, we aresubject to concentrations of credit risk in our trade accounts receivable, which includes accounts of our distributors. A significant reduction of effort by adistributor to sell our products or a material change in our relationship with one or more distributors may reduce our access to certain end customers and adverselyaffect our ability to sell our products.In addition, the financial health of our distributors and our continuing relationships with them are important to our success. Unpredictable economic conditionsmay adversely impact the financial health of some of these distributors, particularly our smaller distributors. This could result in the insolvency of certaindistributors, the inability of distributors to obtain credit to finance the purchase of our products, or cause distributors to delay payment of their obligations to us andincrease our credit risk exposure. Our business could be harmed if the financial health of these distributors impairs their performance and we are unable to securealternate distributors.We are dependent on independent subcontractors for most of our assembly and test services, and unavailability or disruption of these services couldnegatively impact our financial condition and results of operations.We are dependent on subcontractors to provide semiconductor assembly, substrate, test and shipment services. Any prolonged inability to obtain wafers withcompetitive performance and cost attributes, adequate yields or timely delivery, any disruption in assembly, test or shipment services, delays in stabilizingmanufacturing processes and ramping up volume for new products, transitions to new service providers or any other circumstance that would require us to seekalternative sources of supply, could delay shipments and have a material adverse effect on our ability to meet customer demands. In addition, unpredictableeconomic conditions may adversely impact the financial health and viability of these subcontractors and result in their insolvency or their inability to meet theircommitments to us. These factors would result in reduced net revenues and could negatively impact our financial condition and results of operations.A number of factors, including our inventory strategy, can impact our gross margins.A number of factors, including yield, wafer pricing, product mix, market acceptance of our new products, competitive pricing dynamics, licensing costs,geographic and/or market segment pricing strategies can cause our gross margins to fluctuate. In addition, forecasting our gross margins is difficult because asignificant portion of our business is based on turns within the same quarter.While our overall inventory levels fluctuate over time, the inventory of newer product lines may be higher than other products due to a planned increase in safetystock in anticipation of future revenue growth. In the event demand does not materialize, we may be subject to incremental obsolescence costs. In addition, futureproduct cost reductions could have an increased impact on our inventory valuation, which would then impact our operating results.17Table of ContentsReductions in the average selling prices of our products could have a negative impact on our gross margins.The average selling prices of our products generally decline as the products mature. We seek to offset the decrease in selling prices through yield improvement,manufacturing cost reductions and increased unit sales. We also continue to develop higher value products or product features that increase, or slow the decline of,the average selling price of our products. However, there is no guarantee that our ongoing efforts will be successful or that they will keep pace with the decline inselling prices of our products, which could ultimately lead to a decline in revenues and have a negative effect on our gross margins.Because of our international business and operations, we are vulnerable to the economic conditions of the countries in which we operate and currencyfluctuations could have a material adverse effect on our business and negatively impact our financial condition and results of operations.In addition to our U.S. operations, we also have significant international operations, including foreign sales offices to support our international customers anddistributors, our regional headquarters in Ireland and Singapore and an R&D site in India. Our international operations have grown because we have establishedcertain operations and administrative functions outside the U.S. Sales and operations outside of the U.S. subject us to the risks associated with conducting businessin foreign economic and regulatory environments. Our financial condition and results of operations could be adversely affected by unfavorable economicconditions in countries in which we do significant business or by changes in foreign currency exchange rates affecting those countries. We derive over one-half ofour revenues from international sales, primarily in the Asia Pacific region, Europe and Japan. Past economic weaknesses in these markets adversely affectedrevenues. Sales to all direct OEMs and distributors are denominated in U.S. dollars. While the recent movements of the Euro and Yen exchange rates against theU.S. dollar had no material impact to our business, increased volatility could impact our European and Japanese customers. Currency instability and volatility anddisruptions in the credit and capital markets including as a result of the United Kingdom referendum on June 23, 2016, in which voters approved an exit from theEuropean Union (commonly referred to as "Brexit") may increase credit risks for some of our customers and may impair our customers' ability to repay existingobligations. Increased currency volatility could also positively or negatively impact our foreign-currency-denominated costs, assets and liabilities. In addition, anydevaluation of the U.S. dollar relative to other foreign currencies may increase the operating expenses of our foreign subsidiaries adversely affecting our results ofoperations. Furthermore, because we are increasingly dependent on the global economy, instability in worldwide economic environments occasioned, for example,directly or indirectly by political instability (such as due to Brexit), terrorist activity, U.S. or other military actions, and international sanctions or other diplomaticactions (potentially including sanctions adopted or under consideration by the U.S. or European Union with respect to Russia or Russian individuals or businesses),could adversely impact economic activity and lead to a contraction of capital spending by our customers generally or in specific regions. Any or all of these factorscould adversely affect our financial condition and results of operations in the future.We are subject to the risks associated with conducting business operations outside of the U.S. which could adversely affect our business.In addition to international sales and support operations and development activities, we purchase our wafers from foreign foundries, have our commercial productsassembled, packaged and tested by subcontractors located outside the U.S. and utilize third party warehouse operators to store and manage inventory levels forcertain of our products. All of these activities are subject to the uncertainties associated with international business operations, including global laws andregulations, trade barriers, economic sanctions, tax regulations, import and export regulations, duties and tariffs and other trade restrictions, changes in tradepolicies, anti-corruption laws, foreign governmental regulations, potential vulnerability of and reduced protection for IP, longer receivable collection periods anddisruptions or delays in production or shipments, any of which could have a material adverse effect on our business, financial condition and/or operating results.For example, on March 8, 2016, the U.S. Department of Commerce added ZTE Corporation (ZTE) to its "Entity List" and placed certain export restrictions on ZTEand its suppliers. Although interim relief was provided until the U.S. Department of Commerce and ZTE reached a settlement effective on March 29, 2017, whichremoved ZTE from the "Entity List," had ZTE not been removed, the restrictions could have caused a material adverse effect on our business, financial conditionand/or operating results. Additional factors that could adversely affect us due to our international operations include rising oil prices and increased costs of naturalresources. Moreover, our financial condition and results of operations could be affected in the event of political conflicts or economic crises in countries where ourmain wafer providers, warehouses, end customers and contract manufacturers who provide assembly and test services worldwide, are located. Adverse change tothe circumstances or conditions of our international business operations, including instability and uncertainty as a result of Brexit, could have a material adverseeffect on our business.18Table of ContentsWe are exposed to fluctuations in interest rates and changes in credit rating and in the market values of our portfolio investments which could have amaterial adverse impact on our financial condition and results of operations.Our cash, short-term and long-term investments represent significant assets that may be subject to fluctuating or even negative returns depending upon interest ratemovements, changes in credit rating and financial market conditions. Global credit market disruptions and economic slowdown and uncertainty have in the pastnegatively impacted the values of various types of investment and non-investment grade securities. The global credit and capital markets may again experiencesignificant volatility and disruption due to instability in the global financial system, uncertainty related to global economic conditions and concerns regardingsovereign financial stability.Therefore, there is a risk that we may incur other-than-temporary impairment charges for certain types of investments should credit market conditions deteriorateor the underlying assets fail to perform as anticipated. Our future investment income may fall short of expectations due to changes in interest rates or if the declinein fair values of our debt securities is judged to be other than temporary. Furthermore, we may suffer losses in principal if we are forced to sell securities that havedeclined in market value due to changes in interest rates or financial market conditions.Our failure to protect and defend our IP could impair our ability to compete effectively.We rely upon patent, copyright, trade secret, mask work and trademark laws to protect our IP. We cannot provide assurance that such IP rights can be successfullyasserted in the future or will not be invalidated, violated, circumvented or challenged. From time to time, third parties, including our competitors, have assertedagainst us patent, copyright and other IP rights to technologies that are important to us. Third parties may attempt to misappropriate our IP through electronic orother means or assert infringement claims against our indemnities or us in the future. Such assertions by third parties may result in costly litigation, indemnityclaims or other legal actions, and we may not prevail in such matters or be able to license any valid and infringed patents from third parties on commerciallyreasonable terms. This could result in the loss of our ability to import and sell our products or require us to pay costly royalties to third parties in connection withsales of our products. Any infringement claim, indemnification claim, or impairment or loss of use of our IP could materially adversely affect our financialcondition and results of operations.Our ability to design and introduce new products in a timely manner is dependent upon third-party IP.In the design and development of new products and product enhancements, we rely on third-party intellectual property such as software development tools andhardware testing tools. Furthermore, certain product features may rely on intellectual property acquired from third parties. The design requirements necessary tomeet future consumer demands for more features and greater functionality from semiconductor products may exceed the capabilities of the third-party intellectualproperty or development tools that are available to us. If the third-party intellectual property that we use becomes unavailable or fails to produce designs that meetconsumer demands, our business could be adversely affected.We rely on information technology (IT) systems, and failure of these systems to function properly or unauthorized access to our systems could result inbusiness disruption.We rely in part on various IT systems to manage our operations, including financial reporting, and we regularly evaluate these systems and make changes toimprove them as necessary. Consequently, we periodically implement new, or upgrade or enhance existing, operational and IT systems, procedures and controls.Any delay in the implementation of, or disruption in the transition to, new or enhanced systems, procedures or controls, could harm our ability to record and reportfinancial and management information on a timely and accurate basis. These systems are also subject to power and telecommunication outages or other generalsystem failures. Failure of our IT systems or difficulties in managing them could result in business disruption. We also may be subject to unauthorized access toour IT systems through a security breach or cyber attack. We experience cyber attacks of varying degrees on an ongoing basis. In the past there have been attemptsby third parties to penetrate and/or infect our network and systems with malicious software in an effort to gain access to our network and systems. Third partiesmay continue to attempt to fraudulently induce employees, users, or customers to disclose sensitive information in order to gain access to our network systems. Weseek to detect and investigate any security incidents and prevent their recurrence, but in some cases, we might be unaware of an incident or its magnitude andeffects. Because the techniques used to obtain unauthorized access to and sabotage our systems change frequently, we may be unable to anticipate these techniquesor to implement adequate protections. Our business could be significantly harmed, and we could be subject to third party claims in the event of such a securitybreach. Our IT systems are also linked to the IT systems of customers, suppliers, and distribution partners and those links provide critical information we use tomanage our operations, including information used for financial reporting. The IT systems of our customers, suppliers, and distribution partners and the linksbetween our IT systems and our customers are subject to the same risks as that of our IT systems.19Table of ContentsIf we are unable to maintain effective internal controls, our stock price could be adversely affected.We are subject to the ongoing internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002 (the Act). Our controls necessary for continuedcompliance with the Act may not operate effectively at all times and may result in a material weakness disclosure. The identification of material weaknesses ininternal control, if any, could indicate a lack of proper controls to generate accurate financial statements and could cause investors to lose confidence and our stockprice to drop.We compete with others to attract and retain key personnel, and any loss of, or inability to attract, such personnel would harm us.We depend on the efforts and abilities of certain key members of management and other technical personnel. Our future success depends, in part, upon our abilityto retain such personnel and attract and retain other highly qualified personnel, particularly product engineers. Competition for such personnel is intense and wemay not be successful in hiring or retaining new or existing qualified personnel. Changes to the U.S. immigration laws may also impact the availability of qualifiedpersonnel. From time to time we have effected restructurings which eliminate a number of positions. Even if such personnel are not directly affected by therestructuring effort, such terminations can have a negative impact on morale and our ability to attract and hire new qualified personnel in the future. If we loseexisting qualified personnel or are unable to hire new qualified personnel, as needed, our business, financial condition and results of operations could be seriouslyharmed.Unfavorable results of legal proceedings could adversely affect our financial condition and operating results.From time to time we are subject to various legal proceedings and claims that arise out of the ordinary conduct of our business. The amount of damages alleged incertain legal claims may be significant. For example, in December 2013, we entered into a Settlement and License Agreement with PACT XPP Technologies, AG(PACT) in which the parties agreed to dismiss with prejudice all outstanding patent litigation among us, Avnet and PACT. As part of the settlement, we agreed topay PACT a lump sum of $33.5 million. Certain other claims involving the Company are not yet resolved, including those that are discussed under "Item 3. LegalProceedings" included in Part I of this Form 10-K, and additional claims may arise in the future. Results of legal proceedings cannot be predicted with certainty.Regardless of its merit, litigation may be both time-consuming and disruptive to our operations and cause significant expense and diversion of managementattention and we may enter into material settlements to avoid these risks. Should we fail to prevail in certain matters, or should several of these matters be resolvedagainst us in the same reporting period, we may be faced with significant monetary damages or injunctive relief against us that would materially and adverselyaffect a portion of our business and might materially and adversely affect our financial condition and operating results.Our products could have defects which could result in reduced revenues and claims against us.We develop complex and evolving products that include both hardware and software. Despite our testing efforts and those of our subcontractors, defects may befound in existing or new products. These defects may cause us to incur significant warranty, support and repair or replacement costs, divert the attention of ourengineering personnel from our product development efforts and harm our relationships with customers. Subject to certain terms and conditions, we have agreed tocompensate certain customers for limited specified costs they actually incur in the event our hardware products experience epidemic failure. As a result, epidemicfailure and other performance problems could result in claims against us, the delay or loss of market acceptance of our products and would likely harm ourbusiness. Our customers could also seek damages from us for their losses.In addition, we could be subject to product liability claims. A product liability claim brought against us, even if unsuccessful, would likely be time-consuming andcostly to defend. Product liability risks are particularly significant with respect to aerospace, automotive and medical applications because of the risk of seriousharm to users of these products. Any product liability claim, whether or not determined in our favor, could result in significant expense, divert the efforts of ourtechnical and management personnel, and harm our business.20Table of ContentsIn preparing our financial statements, we make good faith estimates and judgments that may change or turn out to be erroneous.In preparing our financial statements in conformity with accounting principles generally accepted in the U.S., we must make estimates and judgments in applyingour most critical accounting policies. Those estimates and judgments have a significant impact on the results we report in our consolidated financial statements.The most difficult estimates and subjective judgments that we make concern valuation of marketable and non-marketable securities, revenue recognition,inventories, long-lived assets including acquisition-related intangibles, goodwill, taxes and stock-based compensation. We base our estimates on historicalexperience, input from outside experts and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form thebasis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We also have other key accountingpolicies that are not as subjective, and therefore, their application would not require us to make estimates or judgments that are as difficult, but which neverthelesscould significantly affect our financial reporting. Actual results may differ materially from these estimates. If these estimates or their related assumptions change,our operating results for the periods in which we revise our estimates or assumptions could be adversely and perhaps materially affected.Our failure to comply with the requirements of the Export Administration Regulations (EAR) and the International Traffic and Arms Regulations(ITAR) could have a material adverse effect on our financial condition and results of operations.Our FPGAs and related technologies are subject to EAR, which are administered by the U.S. Department of Commerce. In addition, we may, from time to time,receive technical data from third parties that is subject to the ITAR, which are administered by the U.S. Department of State. EAR and ITAR govern the export andre-export of these FPGAs, the transfer of related technologies, whether in the U.S. or abroad, and the provision of services. We are required to maintain an internalcompliance program and security infrastructure to meet EAR and ITAR requirements.An inability to obtain the required export licenses, or to predict when they will be granted, increases the difficulties of forecasting shipments. In addition, securityor compliance program failures that could result in penalties or a loss of export privileges, as well as stringent licensing restrictions that may make our productsless attractive to overseas customers, could have a material adverse effect on our business, financial condition and/or operating results.Our inability to effectively control the sale of our products on the gray market could have a material adverse effect on us.We market and sell our products directly to OEMs and through authorized third-party distributors which helps to ensure that products delivered to our customersare authentic and properly handled. From time to time, customers may purchase products bearing our name from the unauthorized "gray market." These partsmay be counterfeit, salvaged or re-marked parts, or parts that have been altered, mishandled, or damaged. Gray market products result in shadow inventory that isnot visible to us, thus making it difficult to forecast supply or demand. Also, when gray market products enter the market, we and our authorized distributors maycompete with brokers of these discounted products, which can adversely affect demand for our products and negatively impact our margins. In addition, ourreputation with customers may be negatively impacted when gray market products bearing our name fail or are found to be substandard.The conflict minerals provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act could result in additional costs and liabilities.In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, the SEC established disclosure and reporting requirements for thosecompanies who use "conflict" minerals mined from the Democratic Republic of Congo and adjoining countries in their products, regardless of whether suchproducts are manufactured by third parties. These requirements could affect the sourcing and availability of minerals used in the manufacture of oursemiconductor products. The costs associated with complying with the disclosure requirements include those for due diligence in regard to the sources of anyconflict minerals used in our products, remediation and other changes to products, processes, or sources of supply as a consequence of such verification activities.We may face reputational challenges if we are unable to sufficiently verify the origins for all minerals used in our products through the due diligence process weimplement. Moreover, we may encounter challenges to satisfy those customers who require that all of the components of our products are certified as conflict free.21Table of ContentsExposure to greater than anticipated income tax liabilities, changes in tax rules and regulations, changes in interpretation of tax rules and regulations, orunfavorable assessments from tax audits could affect our effective tax rates, financial condition and results of operations.We are a U.S.-based multinational company subject to tax in multiple U.S. and foreign tax jurisdictions. Our income tax obligations could be affected by manyfactors, including but not limited to changes to our corporate operating structure, intercompany arrangements and tax planning strategies. A significant portion ofour earnings are earned by our subsidiaries outside the U.S. In addition to providing for U.S. income taxes on earnings from the U.S., we provide for U.S. incometaxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are considered permanently reinvested outside the U.S. While we do not anticipatechanging our intention regarding permanently reinvested earnings, if certain foreign earnings previously treated as permanently reinvested are repatriated, therelated U.S. tax on such repatriated earnings could negatively impact our effective tax rates, financial condition and results of operations.Our income tax expense is computed based on tax rates at the time of the respective financial period. Our future effective tax rates, financial condition and resultsfrom operations could be unfavorably affected by changes in the tax rates in jurisdictions where our income is earned, by changes in the tax rules and regulations orthe interpretation of tax rules and regulations in the jurisdictions in which we do business or by changes in the valuation of our deferred tax assets. Notably, thecurrent U.S. administration and certain members of Congress have made public statements indicating that corporate tax reform is a priority. Changes to U.S. taxlaws could materially affect the tax treatment of our domestic and foreign earnings.In addition, we are subject to examinations of our income tax returns by domestic and foreign tax authorities. We regularly assess the likelihood of outcomesresulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from thecurrent examinations. There can be no assurance that the final determination of any of these examinations will not have an adverse effect on our effective tax rates,financial position and results of operations.Our 2.625% Senior Convertible Debenture (2017 Convertible Notes) mature on June 15, 2017, which could have a material effect on our liquidity.The 2017 Convertible Notes have conditional conversion features which were triggered in fiscal 2013 and entitled holders of the 2017 Convertible Notes to convertthe 2017 Convertible Notes at any time during specified periods at their option. As a result of this, we were required under applicable accounting rules to reclassifyall or a portion of the outstanding principal of the 2017 Convertible Notes as a current rather than long-term liability. In addition, we were required to increase thenumber of shares used in our net income per share calculations to reflect the potentially dilutive impact of the conversion.During fiscal 2017, we received conversion requests from certain holders of the 2017 Convertible Notes and paid cash of $142.1 million. The remaining balance ofthe 2017 Convertible Notes of $457.9 million will mature on June 15, 2017. At maturity, we will be required to settle any converted principal through the paymentof cash, which could adversely affect our liquidity. Considerable amounts of our common shares are available for issuance under our equity incentive plans and 2017 Convertible Notes, and significantissuances in the future may adversely impact the market price of our common shares.As of April 1, 2017 we had 2.00 billion authorized common shares, of which 248.0 million shares were outstanding. In addition, 27.8 million common shares werereserved for issuance pursuant to our equity incentive plans and Employee Stock Purchase Plan (ESPP), 15.9 million common shares were reserved for issuanceupon conversion or maturity of the 2017 Convertible Notes and 20.8 million common shares were reserved for issuance upon exercise of warrants. The availabilityof substantial amounts of our common shares resulting from the exercise or settlement of equity awards outstanding under our equity incentive plans or theconversion or maturity of convertible debenture using common shares, which would be dilutive to existing stockholders, could adversely affect the prevailingmarket price of our common shares and could impair our ability to raise additional capital through the sale of equity securities.We have indebtedness that could adversely affect our financial condition and prevent us from fulfilling our debt obligations.The aggregate amount of our consolidated indebtedness as of April 1, 2017 was $1.46 billion (principal amount), which consists of $500.0 million in aggregateprincipal amount of our 2.125% Notes due 2019 (2019 Notes), $500.0 million in aggregate principal amount of our 3.000% Notes due 2021 (2021 Notes) and$457.9 million in aggregate principal amount of our 2017 Convertible Notes. We also may incur additional indebtedness in the future. Our indebtedness may:22Table of Contents•make it difficult for us to satisfy our financial obligations, including making scheduled principal and interest payments on the debentures and our otherindebtedness;•limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions or other general corporate purposes;•limit our ability to use our cash flow or obtain additional financing for future working capital, capital expenditures, acquisitions or other generalbusiness purposes;•require us to use a portion of our cash flow from operations to make debt service payments;•limit our flexibility to plan for, or react to, changes in our business and industry;•place us at a competitive disadvantage compared to our less leveraged competitors;•increase our vulnerability to the impact of adverse economic and industry conditions; and•require us to repatriate off-shore cash to the U.S. at unfavorable tax rates.Our ability to meet our debt service obligations will depend on our future performance, which will be subject to financial, business and other factors affecting ouroperations, many of which are beyond our control.The agreements governing the 2019 Notes and 2021 Notes contain covenants that may adversely affect our ability to operate our business.The indentures governing the 2019 Notes and 2021 Notes contain various covenants limiting our and our subsidiaries' ability to, among other things:•create certain liens on principal property or the capital stock of certain subsidiaries;•enter into certain sale and leaseback transactions with respect to principal property; and•consolidate or merge with, or convey, transfer or lease all or substantially all our assets, taken as a whole, to, another person.A failure to comply with these covenants and other provisions in these indentures could result in events of default under the indentures, which could permitacceleration of the 2019 Notes and the 2021 Notes. Any required repayment as a result of such acceleration could have a material adverse effect on our business,results of operations, financial condition or cash flows.The call options and warrant transactions related to our 2017 Convertible Notes may affect the value of the debenture and our common stock.To hedge against potential dilution upon conversion of the 2017 Convertible Notes, we purchased call options on our common stock from the hedge counterparties.We also sold warrants to the hedge counterparties, which could separately have a dilutive effect on our earnings per share to the extent that the market price pershare of our common stock exceeds the applicable strike price of the warrants of $40.89 per share. Such dilutive effects could be exacerbated, or we couldexperience other adverse effects, if a hedge counterparty becomes subject to insolvency proceedings or otherwise fails to deliver common shares they may owe usunder those hedges.As the hedge counterparties and their respective affiliates modify hedge positions, they may enter or unwind various derivatives with respect to our common stockand/or purchase or sell our common stock in secondary market transactions. This activity also could affect the market price of our common stock and/or debenture,which could affect the ability of the holders of the debenture to convert and the number of shares and value of the consideration that will be received by the holdersof the debenture upon conversion.Acquisitions and strategic investments present risks, and we may not realize the goals that were contemplated at the time of a transaction.In the past, we have acquired technology companies whose products complement our products. We also have made a number of strategic investments in othertechnology companies. We may make similar acquisitions and strategic investments in the future. Acquisitions and strategic investments present risks, including:•our ongoing business may be disrupted and our management's attention may be diverted by investment, acquisition, transition or integration activities;•an acquisition or strategic investment may not further our business strategy as we expected, and we may not integrate an acquired company ortechnology as successfully as we expected;•our operating results or financial condition may be adversely impacted by claims or liabilities that we assume from an acquired company or technologyor that are otherwise related to an acquisition;23Table of Contents•we may have difficulty incorporating acquired technologies or products with our existing product lines;•we may have higher than anticipated costs in continuing support and development of acquired products, and in general and administrative functionsthat support such products;•our strategic investments may not perform as expected; and•we may experience unexpected changes in how we are required to account for our acquisitions and strategic investments pursuant to U.S. GAAP.The occurrence of any of these risks could have a material adverse effect on our business, results of operations, financial condition or cash flows, particularly in thecase of a larger acquisition or several concurrent acquisitions or strategic investments.ITEM 1B.UNRESOLVED STAFF COMMENTSNot applicable.ITEM 2.PROPERTIESOur corporate offices, which include the administrative, sales, customer support, marketing, R&D and manufacturing and testing groups, are located in San Jose,California. This main site consists of adjacent buildings providing 588,000 square feet of space, which we own. We also own one parcel of land totalingapproximately 84 acres in South San Jose near our corporate facility. At present, we do not have any plans to develop the land.We own a 228,000 square foot facility in the metropolitan area of Dublin, Ireland, which serves as our regional headquarters in Europe. The Irish facility isprimarily used for service and support for our customers in Europe, R&D, marketing and IT support. We own a 222,000 square foot facility in Singapore, which serves as our Asia Pacific regional headquarters. We own the building but the land is subject to a 30-year lease expiring in November 2035. The Singapore facility is primarily used for manufacturing support and testing of our products and services for ourcustomers in Asia Pacific/Japan, coordination and management of certain third parties in our supply chain and R&D. Excess space in the facility is leased to atenant under long-term lease agreement. We own a 130,000 square foot facility in Longmont, Colorado. The Longmont facility serves as a primary location and data center for our software efforts in theareas of R&D, manufacturing and quality control. In addition, we own a 200,000 square foot facility and 40 acres of land adjacent to the Longmont facility forfuture expansion. The facility is partially leased to tenants under long-term lease agreements and partially used by us.We lease office facilities for our engineering design centers in Hyderabad, India; Albuquerque, New Mexico; Edinburgh, Scotland; Ottawa, Canada; Beijing,China; Belfast, Northern Ireland; Cork, Ireland and Gothenberg, Sweden. We also lease sales offices in various locations throughout North America, which includethe metropolitan areas of Chicago, Dallas, Detroit, Nashua, Raleigh, San Diego as well as international sales offices located in the metropolitan areas of Bangalore,Beijing, Chengdu, Brussels, Helsinki, Hong Kong, London, Milan, Munich, Nanjing, Osaka, Paris, Seoul, Shanghai, Shenzhen, Stockholm, Taichung, Taipei, TelAviv, Tokyo and Xi'an.ITEM 3.LEGAL PROCEEDINGSFor information regarding our legal proceedings, see "Note 16. Litigation Settlements and Contingencies" to our consolidated financial statements, included inItem 8. "Financial Statements and Supplementary Data", which is incorporated herein by reference.ITEM 4.MINE SAFETY DISCLOSURESNot applicable.24Table of ContentsPART IIITEM 5.MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OFEQUITY SECURITIESOur common stock trades on the NASDAQ Global Select Market under the symbol XLNX. As of May 4, 2017, there were approximately 500 stockholders ofrecord. Since many holders' shares are listed under their brokerage firms' names, the actual number of stockholders is estimated by us to be approximately 175,000.The following table sets forth the high and low closing sale prices, for the periods indicated, for our common stock as reported by the NASDAQ Global SelectMarket: Fiscal 2017 Fiscal 2016 High Low High LowFirst Quarter$47.45 $42.92 $48.33 $41.85Second Quarter54.46 45.48 44.16 38.78Third Quarter61.24 49.61 50.24 40.66Fourth Quarter60.32 57.37 50.27 41.91Dividends Declared Per Common ShareThe following table presents the quarterly dividends declared on our common stock for the periods indicated: Fiscal 2017 Fiscal 2016First Quarter$0.33 $0.31Second Quarter0.33 0.31Third Quarter0.33 0.31Fourth Quarter0.33 0.31On April 25, 2017, our Board of Directors declared a cash dividend of $0.35 per common share for the first quarter of fiscal 2018 . The dividend is payable on June1, 2017 to stockholders of record as of May 16, 2017.Securities Authorized for Issuance Under Equity Compensation PlansSee "Equity Compensation Plan Information," included in Item 12. "Security Ownership of Certain Beneficial Owners and Management and Related StockholderMatters" in Part III of this Form 10-K for information regarding our equity compensation plans.Issuer Purchases of Equity SecuritiesThe following table summarizes the Company's repurchase of its common stock during the fourth quarter of fiscal 2017 . Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly AnnouncedProgram Approximate Dollar Value ofShares that May Yet BePurchased Under the Program(1)(In thousands, except per share amounts) Period January 1, 2017 to February 4, 2017 428 $58.36 428 $765,201February 5, 2017 to March 4, 2017 608 $58.47 608 $729,667March 5, 2017 to April 1, 2017 813 $58.47 813 $682,133Total for Quarter 1,849 $58.45 1,849 (1) In November 2014, the Board authorized the repurchase of $800.0 million of the Company's common stock (2014 Repurchase Program). In May 2016, the Board authorized the repurchaseof up to $1.00 billion of the Company's common stock and debentures (2016 Repurchase Program). The 2014 and 2016 Repurchase25Table of ContentsPrograms have no stated expiration date. Through April 1, 2017 , the Company had used all of the $800.0 million authorized under the 2014 Repurchase Program and $317.9 million of the$1.00 billion authorized under the 2016 Repurchase Program, leaving a balance of $682.1 million available for future repurchases. The Company's current policy is to retire all repurchasedshares, and consequently, no treasury shares were held as of April 1, 2017 and April 2, 2016 .See "Note 13. Stockholders' Equity" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data" for informationregarding our stock repurchase plans.Company Stock Price PerformanceThe following graph shows a comparison of cumulative total return for our common stock, the Standard & Poor's 500 Stock Index (S&P 500 Index), and theStandard & Poor's 500 Semiconductors Index (S&P 500 Semiconductors Index). The graph covers the period from March 30, 2012, the last trading day before ourfiscal 2012, to March 31, 2017, the last trading day of our fiscal 2017. The graph and table assume that $100 was invested on March 30, 2012 in our commonstock, the S&P 500 Index and the S&P 500 Semiconductors Index and that all dividends were reinvested.Company / Index03/30/12 03/28/13 03/28/14 03/27/15 04/01/16 03/31/17Xilinx, Inc.100.00 107.37 154.97 125.16 144.76 180.65S&P 500 Index100.00 113.96 137.77 156.00 160.35 186.71S&P 500 Semiconductors Index100.00 90.39 116.32 147.23 151.03 207.24Note: Stock price performance and indexed returns for our common stock are historical and are not indicators of future price performance or future investmentreturns.26Table of ContentsITEM 6.SELECTED FINANCIAL DATAConsolidated Statement of Income DataFive years ended April 1, 2017(In thousands, except per share amounts) April 1, 2017 April 2, 2016 March 28, 2015(1) March 29, 2014(2) March 30, 2013Net revenues $2,349,330 $2,213,881 $2,377,344 $2,382,531 $2,168,652Operating income 699,394 669,881 755,078 748,927 580,732Income before income taxes 691,080 636,825 740,076 709,526 547,006Provision for income taxes 68,568 85,958 91,860 79,138 59,470Net income 622,512 550,867 648,216 630,388 487,536 Net income per common share: Basic $2.47 $2.14 $2.44 $2.37 $1.86Diluted $2.32 $2.05 $2.35 $2.19 $1.79Shares used in per share calculations: Basic 252,301 257,184 265,480 266,431 261,652Diluted 268,813 268,667 276,123 287,396 272,573Cash dividends per common share $1.32$1.24 $1.16 $1.00 $0.88(1)Fiscal 2015 consolidated statement of income data included restructuring charges of $24,491.(2)Fiscal 2014 consolidated statement of income data included litigation charges of $9,410 and loss on extinguishment of convertible debentures of $9,848.Consolidated Balance Sheet DataFive years ended April 1, 2017(In thousands) 2017 2016 (3) 2015 (3) 2014 (3) 2013 (3)Working capital $2,982,920 $2,972,261 $2,971,259 $2,077,488 $1,909,180Total assets 4,740,532 4,819,269 4,892,146 5,029,176 4,718,055Long-term debt 995,247 993,639 992,058 990,281 911,271Other long-term liabilities 339,050 278,446 304,479 266,438 456,701Stockholders' equity 2,507,633 2,589,893 2,611,594 2,752,682 2,963,296(3)Fiscal 2013-2016 Consolidated Balance Sheet Data have been restated as a result of the adoption of authoritative guidance issued in April 2015 that requires debt issuance costs related to arecognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the debt. See "Note 2. Summary of Significant Accounting Policies andConcentration of Risk" to our consolidated financial statements included in Item 8. "Financial Information and Supplementary Data" for information regarding this.27Table of ContentsITEM 7.MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSThis discussion and analysis of financial condition and results of operations should be read in conjunction with our consolidated financial statements andaccompanying notes included in Item 8. "Financial Statements and Supplementary Data."Cautionary StatementThe statements in this Management's Discussion and Analysis that are forward-looking, within the meaning of the Private Securities Litigation Reform Act of 1995,involve numerous risks and uncertainties and are based on current expectations. The reader should not place undue reliance on these forward-looking statements.Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons, including those risks discussed under "RiskFactors" and elsewhere in this document. Often, forward-looking statements can be identified by the use of forward-looking words, such as "anticipates,""believes," "continue," "could," "estimates," "expects," "intends," "may," "plans," "projects," "should," "will," "would" and other similar terminology, or thenegative of such terms. We disclaim any responsibility to update or revise any forward-looking statement provided in this Management's Discussion and Analysisfor any reason.Nature of OperationsWe design and develop programmable devices and associated technologies, including ICs in the form of PLDs, software design tools and predefined systemfunctions delivered as IP. In addition to our programmable platforms, we provide design services, customer training, field engineering and technical support. OurPLDs include FPGAs, CPLDs and programmable SoCs. These devices are standard products that our customers program to perform desired logic functions. Ourproducts are designed to provide high integration and quick time-to-market for electronic equipment manufacturers in end markets such as Communication & DataCenter, Industrial, Aerospace & Defense, and Broadcast, Consumer & Automotive. We sell our products globally through independent domestic and foreigndistributors and through direct sales to OEMs by selected independent sales representative firms and by a direct sales management organization.Critical Accounting Policies and EstimatesThe methods, estimates and judgments we use in applying our most critical accounting policies have a significant impact on the results we report in ourconsolidated financial statements. The SEC has defined critical accounting policies as those that are most important to the portrayal of our financial condition andresults of operations and require us to make our most difficult and subjective judgments, often as a result of the need to make estimates of matters that areinherently uncertain. Based on this definition, our critical accounting policies include: valuation of marketable securities, which impacts losses on debt and equitysecurities when we record impairments; revenue recognition, which impacts the recording of revenues; and valuation of inventories, which impacts cost ofrevenues and gross margin. Our critical accounting policies also include: the assessment of impairment of long-lived assets which impacts their valuation; theassessment of the recoverability of goodwill, which impacts goodwill impairment; accounting for income taxes, which impacts the provision or benefit recognizedfor income taxes, as well as, the valuation of deferred tax assets recorded on our consolidated balance sheet; and valuation and recognition of stock-basedcompensation, which impacts gross margin, R&D expenses, and selling, general and administrative (SG&A) expenses. Below, we discuss these policies further, aswell as the estimates and judgments involved. We also have other key accounting policies that are not as subjective, and therefore, their application would notrequire us to make estimates or judgments that are as difficult, but which nevertheless could significantly affect our financial reporting.Valuation of Marketable SecuritiesOur short-term and long-term investments include marketable debt securities. As of April 1, 2017 , we had marketable debt securities with a fair value of $3.07billion .We determine the fair values for marketable debt securities using industry standard pricing services, data providers and other third-party sources and by internallyperforming valuation testing and analyses. See "Note 3. Fair Value Measurements" to our consolidated financial statements, included in Item 8. "FinancialStatements and Supplementary Data," for details of the valuation methodologies. In determining if and when a decline in value below the adjusted cost ofmarketable debt and equity securities is other than temporary, we evaluate on an ongoing basis the market conditions, trends of earnings, financial condition, creditratings, any underlying collateral and other key measures for our investments. We did not record any other-than-temporary impairment for marketable debt orequity securities in fiscal 2017 , 2016 or 2015 .28Table of ContentsRevenue RecognitionSales to distributors are made under agreements providing distributor price adjustments and rights of return under certain circumstances. Revenue and costsrelating to distributor sales are deferred until products are sold by the distributors to the distributors' end customers. For fiscal 2017 , approximately 52% of our netrevenues were from products sold to distributors for subsequent resale to OEMs or their subcontract manufacturers. Revenue recognition depends on notificationfrom the distributor that product has been sold to the distributor's end customer. Also reported by the distributor are product resale price, quantity and end customershipment information, as well as inventory on hand. Reported distributor inventory on hand is reconciled to deferred revenue balances monthly. We maintainsystem controls to validate distributor data and to verify that the reported information is accurate. Deferred income on shipments to distributors reflects theestimated effects of distributor price adjustments and the estimated amount of gross margin expected to be realized when distributors sell through productpurchased from us. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typically upon shipment fromXilinx at which point we have a legally enforceable right to collection under normal payment terms.As of April 1, 2017 , we had $74.2 million of deferred revenue and $19.6 million of deferred cost of revenues recognized as a net $54.6 million of deferred incomeon shipments to distributors. As of April 2, 2016 , we had $70.9 million of deferred revenue and $19.1 million of deferred cost of revenues recognized as a net $51.8 million of deferred income on shipments to distributors. The deferred income on shipments to distributors that will ultimately be recognized in ourconsolidated statement of income will be different than the amount shown on the consolidated balance sheet due to actual price adjustments issued to thedistributors when the product is sold to their end customers.Revenue from sales to our direct customers is recognized upon shipment provided that persuasive evidence of a sales arrangement exists, the price is fixed, title hastransferred, collection of resulting receivables is reasonably assured, and there are no customer acceptance requirements and no remaining significant obligations.For each of the periods presented, there were no significant formal acceptance provisions with our direct customers.Revenue from software licenses is deferred and recognized as revenue over the term of the licenses of one year. Revenue from support services is recognized whenthe service is performed. Revenue from software licenses and support services were less than 5% of net revenues for all of the periods presented.Allowances for end customer sales returns are recorded based on historical experience and for known pending customer returns or allowances.Valuation of InventoriesInventories are stated at the lower of actual cost (determined using the first-in, first-out method) or market (estimated net realizable value). The valuation ofinventory requires us to estimate excess or obsolete inventory as well as inventory that is not of salable quality. We review and set standard costs quarterly toapproximate current actual manufacturing costs. Our manufacturing overhead standards for product costs are calculated assuming full absorption of actualspending over actual volumes. Given the cyclicality of the market, the obsolescence of technology and product lifecycles, we write down inventory based onforecasted demand and technological obsolescence. These forecasts are developed based on inputs from our customers, including bookings and extended butuncommitted demand forecasts, and internal analyses such as customer historical purchasing trends and actual and anticipated design wins, as well as market andeconomic conditions, technology changes, new product introductions and changes in strategic direction. These factors require estimates that may include uncertainelements. The estimates of future demand that we use in the valuation of inventory are the basis for our published revenue forecasts, which are also consistent withour short-term manufacturing plans. The differences between our demand forecast and the actual demand in the recent past have not resulted in any material writedown in our inventory. If our demand forecast for specific products is greater than actual demand and we fail to reduce manufacturing output accordingly, wecould be required to write down additional inventory, which would have a negative impact on our gross margin.Impairment of Long-Lived AssetsLong-lived assets to be held and used are reviewed for impairment if indicators of potential impairment exist. Impairment indicators are reviewed on a quarterlybasis. When indicators of impairment exist and assets are held for use, we estimate future undiscounted cash flows attributable to the assets. In the event such cashflows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair values based on the expecteddiscounted future cash flows attributable to the assets or based on appraisals. Factors affecting impairment of assets held for use include the ability of the specificassets to generate separately identifiable positive cash flows.29Table of ContentsWhen assets are removed from operations and held for sale, we estimate impairment losses as the excess of the carrying value of the assets over their fair value.Market conditions are amongst the factors affecting impairment of assets held for sale. Changes in any of these factors could necessitate impairment recognition infuture periods for assets held for use or assets held for sale.Long-lived assets such as property, plant and equipment are considered non-financial assets, and are only measured at fair value when indicators of impairmentexist.GoodwillGoodwill is not amortized but is subject to impairment tests on an annual basis, or more frequently if indicators of potential impairment exist, and goodwill iswritten down when it is determined to be impaired. We perform an annual impairment review in the fourth quarter of each fiscal year and compare the fair value ofthe reporting unit in which the goodwill resides to its carrying value. If the carrying value exceeds the fair value, the goodwill of the reporting unit is potentiallyimpaired. For purposes of impairment testing, Xilinx operates as a single reporting unit. We use the quoted market price method to determine the fair value of thereporting unit. Based on the impairment review performed during the fourth quarter of fiscal 2017 , there was no impairment of goodwill in fiscal 2017 . Unlessthere are indicators of impairment, our next impairment review for goodwill will be performed and completed in the fourth quarter of fiscal 2018 . To date, noimpairment indicators have been identified.Accounting for Income TaxesXilinx is a multinational corporation operating in multiple tax jurisdictions. We must determine the allocation of income to each of these jurisdictions based onestimates and assumptions and apply the appropriate tax rates for these jurisdictions. We undergo routine audits by taxing authorities regarding the timing andamount of deductions and the allocation of income among various tax jurisdictions. Tax audits often require an extended period of time to resolve and may result inincome tax adjustments if changes to the allocation are required between jurisdictions with different tax rates.In determining income for financial statement purposes, we must make certain estimates and judgments. These estimates and judgments occur in the calculation ofcertain tax liabilities and in the determination of the recoverability of certain deferred tax assets, which arise from temporary differences between the tax andfinancial statement recognition of revenue and expense. Additionally, we must estimate the amount and likelihood of potential losses arising from audits ordeficiency notices issued by taxing authorities. The taxing authorities' positions and our assessment can change over time resulting in a material effect on theprovision for income taxes in periods when these changes occur.We must also assess the likelihood that we will be able to recover our deferred tax assets. If recovery is not likely, we must increase our provision for taxes byrecording a reserve in the form of a valuation allowance for the deferred tax assets that we estimate will not ultimately be recoverable.We perform a two-step approach to recognize and measure uncertain tax positions relating to accounting for income taxes. The first step is to evaluate the taxposition for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit,including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50%likely of being ultimately realized. See "Note 14. Income Taxes" to our consolidated financial statements included in Item 8. "Financial Statements andSupplementary Data."Stock-Based CompensationDetermining the appropriate fair-value model and calculating the fair value of stock-based awards at the date of grant requires judgment. We use the Black-Scholesoption-pricing model to estimate the fair value of rights to purchase shares under our ESPP. Option pricing models, including the Black-Scholes model, alsorequire the use of input assumptions, including expected stock price volatility, expected life, expected dividend rate, expected forfeiture rate and expected risk-freerate of return. We use implied volatility based on traded options in the open market as we believe implied volatility is more reflective of market conditions and abetter indicator of expected volatility than historical volatility. We will continue to review our input assumptions and make changes as deemed appropriatedepending on new information that becomes available. Higher volatility and expected lives result in a proportional increase to stock-based compensationdetermined at the date of grant. The expected dividend rate and expected risk-free rate of return do not have as significant an effect on the calculation of fair value.In addition, we developed an estimate of the number of stock-based awards which will be forfeited due to employee turnover. Quarterly changes in the estimatedforfeiture rate have an effect on reported stock-based compensation, as the effect of adjusting the rate for all expense amortization is recognized in the period theforfeiture estimate is changed. If the actual forfeiture rate is30Table of Contentshigher than the estimated forfeiture rate, then an adjustment is made to increase the estimated forfeiture rate, which will result in a decrease to the expenserecognized in the financial statements. If the actual forfeiture rate is lower than the estimated forfeiture rate, then an adjustment is made to decrease the estimatedforfeiture rate, which will result in an increase to the expense recognized in the financial statements. The impact of forfeiture true up was not material for allperiods presented. The expense we recognize in future periods could also differ significantly from the current period and/or our forecasts due to adjustments in theassumed forfeiture rates.Results of OperationsThe following table sets forth statement of income data as a percentage of net revenues for the fiscal years indicated:2017 2016 2015Net revenues100.0% 100.0% 100.0%Cost of revenues30.1 30.3 29.8Gross margin69.9 69.7 70.2Operating expenses: Research and development25.6 24.1 22.1Selling, general and administrative14.3 15.0 14.9Amortization of acquisition-related intangibles0.2 0.3 0.4Restructuring charges— — 1.0Total operating expenses40.1 39.4 38.4Operating income29.8 30.3 31.8Interest and other expense, net0.4 1.5 0.6Income before income taxes29.4 28.8 31.2Provision for income taxes2.9 3.9 3.9Net income26.5% 24.9% 27.3% Net Revenues(In millions)2017 Change 2016 Change 2015Net revenues$2,349.3 6% $2,213.9 (7)% $2,377.3Net revenues in fiscal 2017 were $2.35 billion , an increase of 6% as compared to fiscal 2016 . Advanced Products revenues increased 45% in fiscal 2017 but werepartially offset by declines from our Core Products. The increase in Advanced Products was due to higher Advanced Products sales across all end markets,especially in Communications & Data Center and Industrial, Aerospace & Defense. Net revenues in fiscal 2016 were $2.21 billion, a decrease of 7% as comparedto fiscal 2015 . Advanced Products revenues increased 27% in fiscal 2016 but were offset by declines from our Core Products. The increase in Advanced Productswas due to higher sales across all end markets, especially in Industrial, Aerospace & Defense and Communications & Data Center. See also "Net Revenues byProduct" and "Net Revenues by End Markets" below for more information on our product and end market categories.No end customer accounted for more than 10% of net revenues for any of the periods presented.Net Revenues by ProductWe sell our products to global manufacturers of electronic products in end markets such as Communication & Data Center, Industrial, Aerospace & Defense, andBroadcast, Consumer & Automotive. The vast majority of our net revenues are generated from sales of our semiconductor products, but we also generate salesfrom support products. We classify our product offerings into two categories: Advanced Products and Core Products:•Advanced Products are our most recent product offerings and include the UltraScale+, UltraScale and 7-series product families.•Core Products are all other product families.31Table of ContentsThese product categories are modified on a periodic basis to better reflect the maturity of the products and advances in technology. The most recent modificationwas made on April 3, 2016, which was the beginning of our fiscal 2017, whereby we reclassified our product categories to be consistent with how these categoriesare analyzed and reviewed internally. Specifically, we have grouped the products manufactured at the 28nm, 20nm and 16nm nodes into a category namedAdvanced Products while all other products are included in a category named Core Products. The amounts for the prior periods presented have been reclassified toconform to the new categorization.Net revenues by product categories for the fiscal years indicated were as follows: (In millions)2017 % ofTotal % Change 2016 % ofTotal % Change 2015Advanced Products$1,080.7 46 45 $746.5 34 27 $587.6Core Products1,268.6 54 (14) 1,467.4 66 (18) 1,789.7Total net revenues$2,349.3 100 6 $2,213.9 100 (7) $2,377.3Net revenues from Advanced Products increased significantly in fiscal 2017 as a result of sales growth from our 28nm, 20nm and 16nm product families. Salesfrom our 28nm products were more than $800.0 million while sales from our 20nm products exceeded $200.0 million during fiscal 2017 . We expect sales ofAdvanced Products to continue to grow as more customer programs enter into volume production with our 28nm, 20nm and 16nm products. In fiscal 2016 , strongmarket acceptance of our 28nm and 20nm product families contributed to the majority of the revenue growth versus the comparable prior year period.Net revenues from Core Products decreased in both fiscal 2017 and fiscal 2016 from the comparable prior year periods. The decrease in fiscal 2017 was largelydriven by the decline in sales from our Spartan-3 and Virtex-6 product families, while the decrease in fiscal 2016 was largely due to the decline in sales from ourVirtex-5, Virtex-6 and Virtex-2 product families.Net Revenues by End MarketsOur end market revenue data is derived from our understanding of our end customers' primary markets. We classify our net revenues by end markets into thefollowing three categories: Communications & Data Center; Industrial, Aerospace & Defense; and Broadcast, Consumer & Automotive. The percentage changecalculation in the table below represents the year-to-year dollar change in each end market.Net revenues by end markets for fiscal years indicated were as follows: (% of total net revenues)2017 % Change inDollars 2016 % Change inDollars 2015Communications & Data Center42% 9 41% (15) 46%Industrial, Aerospace & Defense41 5 42 (1) 39Broadcast, Consumer & Automotive17 2 17 3 15Total net revenues100% 6 100% (7) 100%Net revenues from Communications & Data Center increased in fiscal 2017 , but decreased in fiscal 2016 from the comparable prior year periods. The increase infiscal 2017 was primarily due to higher sales from wireless, and to a lesser extent from wireline and data center. The decrease in fiscal 2016 from the comparableprior year period was primarily due to lower sales from wireless, and to a lesser extent from wireline and data center.Net revenues from Industrial, Aerospace & Defense increased in fiscal 2017 from the comparable prior year period. The increase in fiscal 2017 was primarily dueto higher sales from test and measurement and aerospace and defense, partially offset by a decrease in sales from industrial, scientific and medical. Net revenuesfrom Industrial, Aerospace & Defense decreased slightly in fiscal 2016 from the comparable prior year period. The decrease in fiscal 2016 was primarily due to adecline in sales from certain key programs within aerospace and defense, partially offset by increases in sales from both test and measurement and industrial,scientific and medical.Net revenues from Broadcast, Consumer & Automotive increased slightly in fiscal 2017 from the comparable prior year period. The increase was due to highersales from automotive. Net revenues from Broadcast, Consumer & Automotive increased in fiscal32Table of Contents2016 from the comparable prior year period. The increase in fiscal 2016 was due to higher sales from automotive, but was partially offset by a decline in sales fromaudio, video and broadcast.Net Revenues by GeographyGeographic revenue information reflects the geographic location of the distributors, OEMs or contract manufacturers who purchased our products. This may differfrom the geographic location of the end customers. Net revenues by geography for the fiscal years indicated were as follows: (In millions)2017 % of Total % Change 2016 % ofTotal % Change 2015North America$738.4 31 4 $710.7 32 (4) $738.3Asia Pacific956.1 41 12 855.9 39 (8) 930.6Europe456.6 20 8 424.7 19 (11) 477.1Japan198.2 8 (11) 222.6 10 (4) 231.3Total net revenues$2,349.3 100 6 $2,213.9 100 (7) $2,377.3Net revenues in North America increased in fiscal 2017 from the comparable prior year period. The increase was primarily due to higher sales from test andmeasurement. Net revenues in North America decreased in fiscal 2016 from the comparable prior year period. The decrease was primarily due to a decline in salesfrom certain key programs within aerospace and defense; and to a lesser extent from wireless communications as well.Net revenues in Asia Pacific increased in fiscal 2017 from the comparable prior year period. The increase in fiscal 2017 was primarily due to higher sales fromwireless communications. Net revenues in Asia Pacific decreased in fiscal 2016 from the comparable prior year period, which was primarily driven by decrease insales from Communications & Data Center.Net revenues in Europe increased in fiscal 2017 from the comparable prior year period. The increase was primarily due to higher sales from test and measurement,and was partially offset by lower revenues from wireless communications. Net revenues in Europe decreased in fiscal 2016 from the comparable prior year periodas a result of weaker sales from wireless communications, which was partially offset by increases in sales from test and measurement and automotive applicationsNet revenues in Japan decreased in both fiscal 2017 and in fiscal 2016 from the comparable prior year periods. The decrease in fiscal 2017 was primarily driven bylower sales in industrial, scientific and medical, while the decrease in fiscal 2016 was primarily driven by lower sales in Communications & Data Center, whichmore than offset the increase in sales from automotive.Gross Margin(In millions)2017 Change 2016 Change 2015Gross margin$1,641.1 6% $1,542.0 (8)% $1,668.5Percentage of net revenues69.9% 69.7% 70.2%Gross margin was slightly higher by 0.2 percentage point in fiscal 2017 from the comparable prior year period. The slight increase in gross margin was primarilydue to end-market mix. Gross margin was 0.5 percentage point lower in fiscal 2016 from the comparable prior year period. The decrease in gross margin wasprimarily due to increased manufacturing overhead expenses from the ramp of Advanced Products.Gross margin may be affected in the future due to multiple factors, including but not limited to those set forth above in "Risk Factors," included in Part I of thisForm 10-K, shifts in the mix of customers and products, competitive-pricing pressure, manufacturing-yield issues and wafer pricing. We expect to mitigate anyadverse impacts from these factors by continuing to improve yields on our Advanced Products, improve manufacturing efficiencies and improve average sellingprice management.Sales of inventory previously written off were not material during all periods presented.In order to compete effectively, we pass manufacturing cost reductions to our customers in the form of reduced prices to the extent that we can maintain acceptablemargins. Price erosion is common in the semiconductor industry, as advances in both product33Table of Contentsarchitecture and manufacturing process technology permit continual reductions in unit cost. We have historically been able to offset much of this revenue declinein our mature products with increased revenues from newer products.Research and Development(In millions)2017 Change 2016 Change 2015Research and development$601.4 13% $533.9 2% $525.7Percentage of net revenues26% 24% 22%R&D spending increased $67.5 million, or 13% , during fiscal 2017 from the comparable prior year period. The increase was primarily attributable to higher maskand wafer spending and employee compensation (including stock-based compensation) related to our new product development. R&D spending increased $8.2million, or 2% , during fiscal 2016 from the comparable prior year period. The increase was primarily attributable to higher employee compensation (includingstock-based compensation) related to our next generation product development, partially offset by a decrease in mask and wafer spending due to developmenttiming.We plan to continue to selectively invest in R&D efforts in areas such as new products and more advanced process development, IP cores and softwaredevelopment environments. We may also consider acquisitions to complement our strategy for technology leadership and engineering resources in critical areas.Selling, General and Administrative(In millions)2017 Change 2016 Change 2015Selling, general and administrative$335.2 1% $331.7 (6)% $353.7Percentage of net revenues14% 15% 15%SG&A expenses increased slightly by $3.5 million or 1% during fiscal 2017 from the comparable prior year period as we incurred higher employee compensationin fiscal 2017 (including stock based compensation) due to higher headcount to enable revenue growth. SG&A expenses decreased $22.0 million or 6% duringfiscal 2016 from the comparable prior year period as we incurred lower variable spending (due to lower revenues) and employee compensation in fiscal 2016(primarily due to restructuring measures that we implemented during the fourth quarter of fiscal 2015).Restructuring ChargesDuring the fourth quarter of fiscal 2015, we announced restructuring measures designed to realign resources and drive overall operating efficiencies. Thesemeasures impacted approximately 120 positions, or 3% of our global workforce, in various geographies and functions worldwide. The Company recorded totalrestructuring charges of $24.5 million in the fourth quarter of fiscal 2015, primarily related to severance pay expenses and write-offs of acquisition-relatedintangibles. As of the end of fiscal 2017, there was no balance remaining on the accrual.Amortization of Acquisition-Related Intangibles(In millions)2017 Change 2016 Change 2015Amortization of acquisition-related intangibles$5.1 (22)% $6.6 (31)% $9.5Percentage of net revenues—% —% —%The amortization expense decreased in fiscal 2017 and 2016 as compared to prior year periods. The decreases were due to certain intangibles that were fullyamortized in fiscal 2016 and during fiscal 2017.34Table of ContentsStock-Based Compensation(In millions)2017 Change 2016 Change 2015Stock-based compensation included in: Cost of revenues$8.0 —% $8.0 (2)% $8.1Research and development66.9 12% 59.7 19 % 50.2Selling, general and administrative48.0 8% 44.3 8 % 41.0Restructuring— —% — (100)% 0.6$122.9 10% $112.0 12 % $99.9The $10.9 million and $12.1 million increases in stock-based compensation expense for fiscal 2017 and 2016 , respectively, as compared to the prior year periodswere primarily related to higher expenses associated with restricted stock units, as we granted restricted stock units at a higher fair value in the recent years.Interest and Other Expense, Net(In millions)2017 Change 2016 Change 2015Interest and other expense, net$8.3 (75)% $33.1 120% $15.0Percentage of net revenues—% 1% 1%Our net interest and other expense decreased by $24.8 million in fiscal 2017 from the comparable prior year period. The decrease was primarily due to higherinterest income from our investment portfolio as a result of rising interest rate environment in the recent year. The increase in net interest and other expense infiscal 2016 from the prior year period was primarily due to a smaller gain on the sale of securities in our investment portfolio, partially offset by higher interestincome from the investment portfolio. During fiscal 2015 we also had a gain on sale of land, which we did not have in fiscal 2016.Provision for Income Taxes(In millions)2017 Change 2016 Change 2015Provision for income taxes$68.6 (20)% $86.0 (6)% $91.9Percentage of net revenues3% 4% 4%Effective tax rate10% 13% 12%The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate in all periods is primarily due to income earned in lower tax ratejurisdictions, for which no U.S. income tax has been provided, as we intend to permanently reinvest these earnings outside of the U.S.The decrease in effective tax rate in fiscal 2017 compared with fiscal 2016 was primarily due to fiscal 2017 benefits from the adoption of new accounting guidancewith respect to share-based payment accounting and the release of reserves for uncertain tax positions upon completion of the Internal Revenue Serviceexamination of fiscal 2012 through 2014.The increase in effective tax rate in fiscal 2016 compared with fiscal 2015 was primarily due to a decrease in the amount of permanently reinvested foreignearnings for which no U.S. taxes were provided. This was partially offset by a decrease to the tax rate due to a shift in geographic mix of earnings with lessearnings subject to U.S. tax.Financial Condition, Liquidity and Capital ResourcesWe have historically used a combination of cash flows from operations and equity and debt financing to support ongoing business activities, acquire or invest incritical or complementary technologies, purchase facilities and capital equipment, repurchase our common stock and debentures under our repurchase program, paydividends and finance working capital. Additionally, our investments in debt securities are liquid and available for future business needs.35Table of ContentsFiscal 2017 Compared to Fiscal 2016Cash, Cash Equivalents and Short-term and Long-term InvestmentsThe combination of cash, cash equivalents and short-term and long-term investments as of April 1, 2017 and April 2, 2016 totaled $3.44 billion and $3.56 billion ,respectively. As of April 1, 2017 , we had cash, cash equivalents and short-term investments of $3.32 billion and working capital of $2.98 billion . As of April 2,2016 , cash, cash equivalents and short-term investments were $3.34 billion and working capital was $2.97 billion .As of April 1, 2017 , we had $2.84 billion of cash, cash equivalents and short-term investments held by our non-U.S. jurisdictions. From a financial statementperspective, approximately $1.13 billion of the $2.84 billion held by our non-U.S. jurisdictions was available for use in the U.S. without accruing additional U.S.income taxes in excess of the amounts already accrued in our financial statements as of April 1, 2017 . The remaining amount of non-U.S. cash, cash equivalentsand short-term investments was permanently reinvested and, therefore, no U.S. current or deferred taxes accrued on this amount, which is intended for investmentin our operations outside the U.S. We believe our U.S. sources of cash and liquidity are sufficient to meet our business needs in the U.S. and do not expect that wewill need to repatriate the funds we have designated as permanently reinvested outside the U.S. Under current tax laws, should our plans change and we were tochoose to repatriate some or all of the funds we have designated as permanently reinvested outside the U.S., such amounts would be subject to U.S. income taxesand applicable non-U.S. income and withholding taxes.During fiscal 2017 , our operations generated net positive cash flow of $934.1 million , which was $187.8 million higher than the $746.3 million generated duringfiscal 2016 . The positive cash flow from operations generated during fiscal 2017 was primarily from net income as adjusted for non-cash related items, decrease inaccounts receivable and increases in accrued liabilities, accounts payable and income taxes payable. These items were partially offset by increases in inventoriesand other assets.Net cash provided by investing activities was $494.0 million during fiscal 2017 as compared to net cash used in investing activities of $423.9 million in fiscal 2016. Net cash provided by investing activities during fiscal 2017 consisted of $587.4 million of net sales of available-for-sale securities, partially offset by $72.1million of purchases of property, plant and equipment and $21.4 million of other investing activities.Net cash used in financing activities was $965.2 million in fiscal 2017 , as compared to $711.1 million in fiscal 2016 . Net cash used in financing activities duringfiscal 2017 consisted of $522.0 million of payment to repurchase common stock, $332.5 million of dividend payments to stockholders and $142.1 million ofpayment for conversion of our 2017 Convertible Notes, partially offset by $32.8 million of net proceeds from issuance of common stock under employee stockplans.Accounts ReceivableAccounts receivable decreased by $63.5 million and days sales outstanding (DSO) decreased to 38 days at April 1, 2017 from 52 days at April 2, 2016 . Thedecrease was primarily due to timing of customer shipments and collections.InventoriesInventories increased to $227.0 million as of April 1, 2017 from $178.6 million as of April 2, 2016 , while combined inventory days at Xilinx and distributionincreased to 127 days at April 1, 2017 from 109 days at April 2, 2016 . We attempt to maintain sufficient levels of inventory in various product, package and speedconfigurations in order to keep lead times short and to meet forecasted customer demand as well as address potential supply constraints. Conversely, we alsoattempt to minimize the handling costs associated with maintaining higher inventory levels and to fully realize the opportunities for cost reductions associated witharchitecture and manufacturing process advancements. We continually strive to balance these two objectives to provide excellent customer response at acompetitive cost.Property, Plant and EquipmentDuring fiscal 2017 , we invested $72.1 million in property, plant and equipment, as compared to $34.0 million in fiscal 2016 . Primary investments in fiscal 2017were for building improvements, computer equipment and equipment related to the support of our new products development and infrastructures.36Table of ContentsCurrent LiabilitiesCurrent liabilities decreased to $897.2 million at the end of fiscal 2017 from $944.4 million at the end of fiscal 2016 . The change was primarily due to a paymentof $142.1 million for conversion of our 2017 Convertible Notes, which was partially offset by increases of $50.0 million in other accrued liabilities and $22.3million in accrued payroll and related liabilities.Temporary and Stockholders' EquityTemporary and stockholders' equity decreased $93.7 million during fiscal 2017 from $2.60 billion in fiscal 2016 to $2.51 billion in fiscal 2017 . The decrease wasprimarily due to repurchase of common stock of approximately $522.0 million , $332.5 million of payment of dividends to stockholders and $18.1 million of othercomprehensive loss. These decreases were partially offset by $622.5 million in net income for fiscal 2017 , $122.9 million of stock-based compensation and $32.8million of net issuance of common stock under employee stock plans.Fiscal 2016 Compared to Fiscal 2015Cash, Cash Equivalents and Short-term and Long-term InvestmentsThe combination of cash, cash equivalents and short-term and long-term investments as of April 2, 2016 and March 28, 2015 totaled $3.56 billion and $3.57billion, respectively. As of April 2, 2016 , we had cash, cash equivalents and short-term investments of $3.34 billion and working capital of $2.97 billion . As ofMarch 28, 2015 , cash, cash equivalents and short-term investments were $3.30 billion and working capital was $2.97 billion.As of April 2, 2016 , we had $2.24 billion of cash, cash equivalents and short-term investments held by our non-U.S. jurisdictions. From a financial statementperspective, approximately $992.2 million of the $2.24 billion held by our non-U.S. jurisdictions was available for use in the U.S. without accruing additional U.S.income taxes in excess of the amounts already accrued in our financial statements as of April 2, 2016 . The remaining amount of non-U.S. cash, cash equivalentsand short-term investments was permanently reinvested and, therefore, no U.S. current or deferred taxes accrued on this amount, which is intended for investmentin our operations outside the U.S. We believe our U.S. sources of cash and liquidity are sufficient to meet our business needs in the U.S. and do not expect that wewill need to repatriate the funds we have designated as permanently reinvested outside the U.S. Under current tax laws, should our plans change and we were tochoose to repatriate some or all of the funds we have designated as permanently reinvested outside the U.S., such amounts would be subject to U.S. income taxesand applicable non-U.S. income and withholding taxes.During fiscal 2016 , our operations generated net positive cash flow of $746.3 million , which was $64.1 million lower than the $810.4 million generated duringfiscal 2015. The positive cash flow from operations generated during fiscal 2016 was primarily from net income as adjusted for non-cash related items, decrease ininventories and increase in accounts payable. These items were partially offset by increases in accounts receivable and other assets as well as decreases in accruedliabilities, deferred income on shipments to distributors and income taxes payable.Net cash used in investing activities was $423.9 million during fiscal 2016 , as compared to net cash provided by investing activities of $13.0 million in fiscal 2015. Net cash used in investing activities during fiscal 2016 consisted of $380.0 million of net purchases of available-for-sale securities, $34.0 million for purchases ofproperty, plant and equipment and $10.0 million of other investing activities.Net cash used in financing activities was $711.1 million in fiscal 2016 , as compared to $904.5 million in fiscal 2015 . Net cash used in financing activities duringfiscal 2016 consisted of $443.2 million of cash payment for repurchase of common stock and $319.0 million of dividend payments to stockholders, which waspartially offset by $51.1 million of proceeds from issuance of common stock under employee stock plans.Accounts ReceivableAccounts receivable increased by $60.8 million and DSO increased to 52 days at April 2, 2016 from 38 days at March 28, 2015 . The increase was primarily due totiming of customer shipments and collections.InventoriesInventories decreased to $178.6 million as of April 2, 2016 from $231.3 million as of March 28, 2015 , while combined inventory days at Xilinx and distributiondecreased to 109 days at April 2, 2016 from 130 days at March 28, 2015 . We attempt to maintain37Table of Contentssufficient levels of inventory in various product, package and speed configurations in order to keep lead times short and to meet forecasted customer demand aswell as address potential supply constraints. Conversely, we also attempt to minimize the handling costs associated with maintaining higher inventory levels and tofully realize the opportunities for cost reductions associated with architecture and manufacturing process advancements. We continually strive to balance these twoobjectives to provide excellent customer response at a competitive cost.Property, Plant and EquipmentDuring fiscal 2016 , we invested $34.0 million in property, plant and equipment, as compared to $29.6 million in fiscal 2015 . Primary investments in fiscal 2016were for building improvements, computer equipment and equipment related to the support of our new products development and infrastructures.Current LiabilitiesCurrent liabilities decreased to $944.4 million at the end of fiscal 2016 from $960.1 million at the end of fiscal 2015 . The change was primarily due to a decreasein other accrued liabilities, deferred income on shipments to distributors and income taxes payable. These decreases were partially offset by increases in accountspayable and current portion of long-term debt.Temporary and Stockholders' EquityTemporary and stockholders' equity decreased $32.8 million during fiscal 2016 from $2.64 billion in fiscal 2015 to $2.60 billion in fiscal 2016 . The decreasewas primarily due to repurchase of common stock of approximately $443.2 million, $319.0 million of payment of dividends to stockholders. These decreases werepartially offset by $550.9 million in net income for fiscal 2016 , $112.0 million of stock-based compensation, $51.1 million of net issuance of common stock underemployee stock plans and $4.5 million decrease for other comprehensive loss.Liquidity and Capital ResourcesCash generated from operations is used as our primary source of liquidity and capital resources. Our investment portfolio is also available for future cashrequirements as is our $400.0 million revolving credit facility entered into in December 2016 (expiring in December 2021 ). We are not aware of any lack of accessto the revolving credit facility; however, we can provide no assurance that access to the credit facility will not be impacted by adverse conditions in the financialmarkets. Our credit facility is not reliant upon a single bank. There have been no borrowings to date under our existing revolving credit facility.We repurchased 9.9 million shares of our common stock for approximately $522.0 million during fiscal 2017 . During fiscal 2016, we repurchased 9.7 millionshares of common stock for approximately $443.2 million. During fiscal 2017 , we paid $332.5 million in cash dividends to stockholders, representing $1.32 percommon share. During fiscal 2016 , we paid $319.0 million in cash dividends to stockholders, representing $1.24 per common share. On April 25, 2017, our Boardof Directors declared a cash dividend of $0.35 per common share for the first quarter of fiscal 2018 . The dividend is payable on June 1, 2017 to stockholders ofrecord as of May 16, 2017. Our common stock and debentures repurchase program and dividend policy could be impacted by, among other items, our views onpotential future capital requirements relating to R&D, investments and acquisitions, legal risks, principal and interest payments on our debentures and otherstrategic investments.We anticipate that existing sources of liquidity and cash flows from operations will be sufficient to satisfy our cash needs for the foreseeable future. We willcontinue to evaluate opportunities for investments to obtain additional wafer capacity, to procure additional capital equipment and facilities, to develop newproducts, and to potentially acquire technologies or businesses that could complement our business. However, the risk factors discussed in Item 1A and belowcould affect our cash positions adversely.Contractual ObligationsThe following table summarizes our significant contractual obligations as of April 1, 2017 and the effect such obligations are expected to have on our liquidity andcash flows in future periods. This table excludes amounts already recorded on our consolidated balance sheet as accounts payable and other accrued liabilities as ofApril 1, 2017 .38Table of Contents Payments Due by Period(In millions) Total Less than 1year 1-3 years 3-5 years More than 5yearsOperating lease obligations (1) $18.5 $5.6 $7.7 $4.7 $0.5Inventory and other purchase obligations (2) 112.6 112.6 — — —Electronic design automation and other licenses (3) 67.4 28.4 24.0 9.7 5.32017 Convertible Notes-principal and interest (4) 460.4 460.4 — — —2019 and 2021 Notes-principal and interest (4) 1,080.3 24.7 540.6 515.0 —Total $1,739.2 $631.7 $572.3 $529.4 $5.8(1)We lease some of our facilities, office buildings and land under non-cancelable operating leases that expire at various dates through November 2035. Rent expense, net of rental income,under all operating leases was approximately $5 million for fiscal 2017 . See "Note 8. Commitments" to our consolidated financial statements, included in Item 8. "Financial Statementsand Supplementary Data," for additional information about operating leases.(2)Due to the nature of our business, we depend entirely upon subcontractors to manufacture our silicon wafers and provide assembly and some test services. The lengthy subcontractor leadtimes require us to order the materials and services in advance, and we are obligated to pay for the materials and services when completed. We expect to receive and pay for these materialsand services in the next three to six months, as the products meet delivery and quality specifications.(3)As of April 1, 2017 , we had $48.8 million of non-cancelable license obligations to providers of electronic design automation software and hardware/software maintenance and $18.6million of other license expiring at various dates through March 2024.(4)For purposes of this table we have assumed the outstanding principal of our debentures will be paid on maturity dates, which is June 15, 2017 for the 2017 Convertible Notes, March 15,2019 for the 2019 Notes and March 15, 2021 for the 2021 Notes. See "Note 12. Debt and Credit Facility" to our consolidated financial statements, included in Item 8. "Financial Statementsand Supplementary Data," for additional information about our debentures.As of April 1, 2017 , $4.5 million of liabilities for uncertain tax positions and related interest and penalties were classified as long-term income taxes payable in theconsolidated balance sheet. Because the Company is unable to reasonably estimate the timing of settlements and any future payments related to uncertain taxpositions, these liabilities have been excluded from the contractual obligations table above.Off-Balance-Sheet ArrangementsAs of April 1, 2017 , we did not have any significant off-balance-sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.Recent Accounting PronouncementsSee "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk" to our consolidated financial statements, included in Item 8. "FinancialStatements and Supplementary Data," for information about recent accounting pronouncements, including the expected dates of adoption and estimated effects, ifany, on our consolidated financial statements.ITEM 7A.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISKInterest Rate RiskOur exposure to interest rate risk relates primarily to our investment portfolio, which consists of fixed income securities with a fair value of approximately $3.07billion as of April 1, 2017 . Our primary aim with our investment portfolio is to invest available cash while preserving principal and meeting liquidity needs. Ourinvestment portfolio includes municipal bonds, mortgage-backed securities, financial institution securities, non-financial institution securities, student loan auctionrate securities, U.S. and foreign government and agency securities, asset-backed securities, bank loans and debt mutual funds. In accordance with our investmentpolicy, we place investments with high credit quality issuers and limit the amount of credit exposure to any one issuer based upon the issuer's credit rating. Thesesecurities are subject to interest rate risk and will decrease in value if market interest rates increase. A hypothetical 100 basis-point (one percentage point) increaseor decrease in interest rates compared to rates at April 1, 2017 and April 2, 2016 would have affected the fair value of our investment portfolio by approximately$60.0 million and $50.0 million, respectively.39Table of ContentsCredit Market RiskThe global credit markets may experience adverse conditions that negatively impact the values of various types of investment and non-investment grade securities.The global credit and capital markets may experience significant volatility and disruption due to instability in the global financial system, uncertainty related toglobal economic conditions and concerns regarding sovereign financial stability. Therefore, there is a risk that we may incur other-than-temporary impairmentcharges for certain types of investments should credit market conditions deteriorate. See "Note 4. Financial Instruments" to our consolidated financial statements,included in Item 8. "Financial Statements and Supplementary Data."Foreign Currency Exchange RiskSales to all direct OEMs and distributors are denominated in U.S. dollars.Gains and losses on foreign currency forward contracts that are designated as hedges of anticipated transactions, for which a firm commitment has been attainedand the hedged relationship has been effective, are deferred and included in income or expenses in the same period that the underlying transaction is settled. Gainsand losses on any instruments not meeting the above criteria are recognized in income or expenses in the consolidated statements of income as they are incurred.We enter into forward currency exchange contracts to hedge our overseas operating expenses and other liabilities when deemed appropriate. As of April 1, 2017and April 2, 2016 , we had the following outstanding forward currency exchange contracts (in notional amount): (In millions and U.S. dollars)April 1, 2017April 2, 2016Singapore Dollar$22.0$27.0Euro18.619.1Indian Rupee31.123.3British Pound10.810.7Japanese Yen3.83.4$86.3$83.5As part of our strategy to reduce volatility of operating expenses due to foreign exchange rate fluctuations, we employ a hedging program with forward outlook ofup to two years for major foreign-currency-denominated operating expenses. The outstanding forward currency exchange contracts expire at various dates throughFebruary 2019 . The net unrealized gains, which approximate the fair market value of the forward currency exchange contracts, are expected to be recognized inthe consolidated statements of income within the next two years.Our investments in several of our wholly-owned subsidiaries are recorded in currencies other than the U.S. dollar. As the financial statements of these subsidiariesare translated at each quarter end during consolidation, fluctuations of exchange rates between the foreign currency and the U.S. dollar increase or decrease thevalue of those investments. These fluctuations are recorded within stockholders' equity as a component of accumulated other comprehensive income (loss). Othermonetary foreign-denominated assets and liabilities are revalued on a monthly basis with gains and losses on revaluation reflected in net income. A hypothetical10% favorable or unfavorable change in foreign currency exchange rates at April 1, 2017 and April 2, 2016 would have affected the annualized foreign-currency-denominated operating expenses of our foreign subsidiaries by less than $10 million for each year. In addition, a hypothetical 10% favorable or unfavorable changein foreign currency exchange rates compared to rates at April 1, 2017 and April 2, 2016 would have affected the value of foreign-currency-denominated cash andinvestments by less than $5.0 million as of each date.40Table of ContentsITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATAXILINX, INC.CONSOLIDATED STATEMENTS OF INCOME Years Ended(In thousands, except per share amounts)April 1, 2017 April 2, 2016 March 28, 2015Net revenues$2,349,330 $2,213,881 $2,377,344Cost of revenues708,216 671,907 708,823Gross margin1,641,114 1,541,974 1,668,521Operating expenses: Research and development601,443 533,891 525,745Selling, general and administrative335,150 331,652 353,670Amortization of acquisition-related intangibles5,127 6,550 9,537Restructuring charges— — 24,491Total operating expenses941,720 872,093 913,443Operating income699,394 669,881 755,078Interest and other expense, net8,314 33,056 15,002Income before income taxes691,080 636,825 740,076Provision for income taxes68,568 85,958 91,860Net income$622,512 $550,867 $648,216Net income per common share: Basic$2.47 $2.14 $2.44Diluted$2.32 $2.05 $2.35Shares used in per share calculations: Basic252,301 257,184 265,480Diluted268,813 268,667 276,123See notes to consolidated financial statements.41Table of ContentsXILINX, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended(In thousands)April 1, 2017 April 2, 2016March 28, 2015Net income$622,512 $550,867 $648,216Other comprehensive income (loss), net of tax: Net change in unrealized gains (losses) on available-for-sale securities(12,712) (916) 7,483Reclassification adjustment for gains on available-for-sale securities(3,119) (106) (6,832)Net change in unrealized gains (losses) on hedging transactions(1,296) 15,004 (11,074)Reclassification adjustment for (gains) losses on hedging transactions1,701 (7,225) 2,753Cumulative translation adjustment, net(2,624) (2,239) (2,931)Other comprehensive income (loss)(18,050) 4,518 (10,601)Total comprehensive income$604,462 $555,385 $637,615See notes to consolidated financial statements.42Table of ContentsXILINX, INC.CONSOLIDATED BALANCE SHEETS (In thousands, except par value amounts)April 1, 2017 April 2, 2016ASSETS Current assets: Cash and cash equivalents$966,695 $503,816Short-term investments2,354,762 2,833,883Accounts receivable, net of allowances for doubtful accounts of $3,200 and $3,341 in 2017 and 2016, respectively243,915 307,458Inventories227,033 178,550Prepaid expenses and other current assets87,711 92,951Total current assets3,880,116 3,916,658Property, plant and equipment, at cost: Land65,298 65,298Buildings339,923 310,795Machinery and equipment383,681 390,573Furniture and fixtures50,556 43,916839,458 810,582Accumulated depreciation and amortization(535,633) (527,236)Net property, plant and equipment303,825 283,346Long-term investments116,288 220,807Goodwill161,287 159,296Acquisition-related intangibles, net3,576 6,202Other assets275,440 232,960Total Assets$4,740,532 $4,819,269LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$108,293 $101,534Accrued payroll and related liabilities176,601 154,294Income taxes payable6,309 6,286Deferred income on shipments to distributors54,567 51,758Other accrued liabilities95,098 45,108Current portion of long-term debt456,328 585,417Total current liabilities897,196 944,397Long-term debt995,247 993,639Deferred tax liabilities317,639 261,467Long-term income taxes payable4,503 15,889Other long-term liabilities16,908 1,090Commitments and contingencies— —Temporary equity (Note 12)1,406 12,894Stockholders' equity: Preferred stock, $.01 par value; 2,000 shares authorized; none issued and outstanding— —Common stock, $.01 par value; 2,000,000 shares authorized; 248,027 and 253,687 shares issued and outstanding in2017 and 2016, respectively2,480 2,537Additional paid-in capital803,522 726,921Retained earnings1,726,312 1,867,066Accumulated other comprehensive loss(24,681) (6,631)Total stockholders’ equity2,507,633 2,589,893Total Liabilities, Temporary Equity and Stockholders’ Equity$4,740,532 $4,819,269See notes to consolidated financial statements.43Table of ContentsXILINX, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended(In thousands)April 1, 2017 April 2, 2016 March 28, 2015Cash flows from operating activities: Net income$622,512 $550,867 $648,216Adjustments to reconcile net income to net cash provided by operating activities: Depreciation45,423 50,828 55,266Amortization17,203 17,613 19,648Stock-based compensation122,858 111,984 99,859Net gain on sale of available-for-sale securities(3,532) (370) (11,878)Amortization of debt discount on convertible debentures11,692 12,048 12,022Provision for deferred income taxes67,482 44,128 17,802Others1,698 2,000 122Changes in assets and liabilities: Accounts receivable, net63,543 (60,843) 21,219Inventories(48,244) 52,323 2,664Prepaid expenses and other current assets(1,000) (1,261) (13,118)Other assets(20,557) (11,945) (531)Accounts payable10,983 21,422 (69,583)Accrued liabilities (including restructuring activities)33,788 (16,592) 1,795Income taxes payable7,473 (11,635) 15,967Deferred income on shipments to distributors2,809 (14,312) 10,972Net cash provided by operating activities934,131 746,255 810,442Cash flows from investing activities: Purchases of available-for-sale securities(2,817,197) (3,262,324) (3,742,742)Proceeds from sale and maturity of available-for-sale securities3,404,577 2,882,342 3,756,021Purchases of property, plant and equipment(72,051) (34,004) (29,619)Other investing activities(21,379) (9,950) 29,296Net cash provided by (used in) investing activities493,950 (423,936) 12,956Cash flows from financing activities: Repurchases of common stock(522,045) (443,181) (651,006)Restricted stock units withholdings(35,392) (34,671) (38,298)Proceeds from issuance of common stock through various stock plans68,184 85,765 90,959Payment of dividends to stockholders(332,542) (318,988) (306,158)Repayment of convertible debt(142,082) — —Other financing activities(1,325) — —Net cash used in financing activities(965,202) (711,075) (904,503)Net increase (decrease) in cash and cash equivalents462,879 (388,756) (81,105)Cash and cash equivalents at beginning of period503,816 892,572 973,677Cash and cash equivalents at end of period$966,695 $503,816 $892,572Supplemental disclosure of cash flow information: Interest paid$41,375 $41,375 $41,589Income taxes paid (refunded), net$(6,341) $53,425 $57,896See notes to consolidated financial statements.44Table of ContentsXILINX, INC.CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common StockOutstanding Additional Paid-inCapital RetainedEarnings Accumulated Other ComprehensiveIncome (Loss) Total Stockholders' Equity(In thousands, except per share amounts)Shares Amount Balance as of March 29, 2014268,637 $2,686 $805,073 $1,945,471 $(548) $2,752,682Components of comprehensive income: Net income— — — 648,216 — 648,216Other comprehensive loss— — — — (10,601) (10,601)Issuance of common shares under employee stock plans, net5,058 51 52,610 — — 52,661Repurchase and retirement of common stock(15,355) (154) (328,585) (321,251) — (649,990)Stock-based compensation expense— — 99,859 — — 99,859Stock-based compensation capitalized in inventory— — (5) — — (5)Temporary equity reclassification— — 11,052 — — 11,052Cash dividends declared ($1.16 per common share)— — — (306,158) — (306,158)Net excess tax benefits from stock-based compensation— — 13,878 — — 13,878Balance as of March 28, 2015258,340 2,583 653,882 1,966,278 (11,149) 2,611,594Components of comprehensive income: Net income— — — 550,867 — 550,867Other comprehensive income— — — — 4,518 4,518Issuance of common shares under employee stock plans, net5,043 51 51,043 — — 51,094Repurchase and retirement of common stock(9,696) (97) (111,993) (331,091) — (443,181)Stock-based compensation expense— — 111,984 — — 111,984Stock-based compensation capitalized in inventory— — (455) — — (455)Temporary equity reclassification— — 11,052 — — 11,052Cash dividends declared ($1.24 per common share)— — — (318,988) — (318,988)Net excess tax benefits from stock-based compensation— — 11,408 — — 11,408Balance as of April 2, 2016253,687 2,537 726,921 1,867,066 (6,631) 2,589,893Components of comprehensive income: Net income— — — 622,512 — 622,512Other comprehensive loss— — — — (18,050) (18,050)Issuance of common shares under employee stock plans, net4,195 42 32,751 — — 32,793Repurchase and retirement of common stock(9,855) (99) (91,223) (430,724) — (522,046)Stock-based compensation expense— — 122,858 — — 122,858Stock-based compensation capitalized in inventory— — 239 — — 239Temporary equity reclassification——11,488——11,488Convertible debt conversion (Note 12)——488— —488Cash dividends declared ($1.32 per common share)— — — (332,542) — (332,542)Balance as of April 1, 2017248,027 $2,480 $803,522 $1,726,312 $(24,681) $2,507,633See notes to consolidated financial statements.45Table of ContentsXILINX, INC.NOTES TO CONSOLIDATED FINANCIAL STATEMENTSNote 1. Nature of OperationsXilinx, Inc. (Xilinx or the Company) designs, develops and markets programmable devices and associated technologies, including advanced ICs in the form ofPLDs, software design tools and predefined system functions delivered as IP. In addition to its programmable platforms, the Company provides design services,customer training, field engineering and technical support. The wafers used to manufacture its products are obtained primarily from independent wafermanufacturers located in Taiwan and Korea. The Company is dependent on these foundries to produce and deliver silicon wafers on a timely basis. The Companyis also dependent on subcontractors, primarily located in the Asia Pacific region, to provide semiconductor assembly, test and shipment services. Xilinx is a globalcompany with sales offices throughout the world. The Company derives over one-half of its revenues from international sales, primarily in the Asia Pacific region,Europe and Japan.Note 2.Summary of Significant Accounting Policies and Concentrations of RiskBasis of PresentationThe accompanying consolidated financial statements include the accounts of Xilinx and its wholly-owned subsidiaries after elimination of all intercompanytransactions. The Company uses a 52 - to 53 -week fiscal year ending on the Saturday nearest March 31. Fiscal 2017 and 2015 were a 52-week year ended onApril 1, 2017 and March 28, 2015, respectively. Fiscal 2016 was a 53-week year, ended on April 2, 2016 . Fiscal 2018 will be a 52-week year ending on March 31,2018 .Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates andassumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reportedamounts of net revenues and expenses during the reporting period. Such estimates relate to, among others, the useful lives of assets, assessment of recoverability ofproperty, plant and equipment, long-lived assets and goodwill, inventory write-downs, allowances for doubtful accounts, customer returns, deferred tax assets,stock-based compensation, potential reserves relating to litigation and tax matters, valuation of certain investments and derivative financial instruments as well asother accruals or reserves. Actual results may differ from those estimates and such differences may be material to the financial statements.Cash Equivalents and InvestmentsCash equivalents consist of highly liquid investments with original maturities from the date of purchase of three months or less. These investments consist ofmoney market funds, non-financial institution securities, U.S. and foreign government and agency securities and financial institution securities. Short-terminvestments consist of mortgage-backed securities, non-financial institution securities, U.S. and foreign government and agency securities, financial institutionsecurities, asset-back securities, commercial mortgage-backed securities, bank loans and debt mutual funds with original maturities greater than three months andremaining maturities less than one year from the balance sheet date. Long-term investments consist of mortgage-backed securities, debt mutual funds and asset-backed securities with remaining maturities greater than one year, unless the investments are specifically identified to fund current operations, in which case theyare classified as short-term investments. Equity investments are also classified as long-term investments since they are not intended to fund current operations.The Company maintains its cash balances with various banks with high quality ratings, and with investment banking and asset management institutions. TheCompany manages its liquidity risk by investing in a variety of money market funds, high-grade commercial paper, corporate bonds, U.S. and foreign governmentand agency securities, asset-backed securities, mortgage-backed securities, commercial mortgage-backed securities, bank time deposits, bank loans and debtmutual funds. This diversification of investments is consistent with its policy to maintain liquidity and ensure the ability to collect principal. The Companymaintains an offshore investment portfolio denominated in U.S. dollars. All investments are made pursuant to corporate investment policy guidelines. Investmentsinclude Euro commercial paper, Euro dollar bonds, Euro dollar floating rate notes, offshore time deposits, U.S. and foreign government and agency securities,asset-backed securities, bank loans and mortgage-backed securities issued by U.S. government-sponsored enterprises and agencies.Management classifies investments as available-for-sale or held-to-maturity at the time of purchase and re-evaluates such designation at each balance sheet date,although classification is not generally changed. Securities are classified as held-to-maturity when the Company has the positive intent and the ability to hold thesecurities until maturity. Held-to-maturity securities are46Table of Contentscarried at cost adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization, as well as any interest on the securities, is includedin interest income. No investments were classified as held-to-maturity as of April 1, 2017 or April 2, 2016 . Available-for-sale securities are carried at fair valuewith the unrealized gains or losses, net of tax, included as a component of accumulated other comprehensive income (loss) in stockholders' equity. See "Note 3.Fair Value Measurements" for information relating to the determination of fair value. Realized gains and losses on available-for-sale securities and declines invalue judged to be other than temporary are included in interest and other expense, net. In determining if and when a decline in value below the adjusted cost ofmarketable debt and equity securities is other than temporary, we evaluate on an ongoing basis the market conditions, trends of earnings, financial condition, creditratings, any underlying collateral and other key measures for our investments. The cost of securities matured or sold is based on the specific identification method.In determining whether a decline in value of non-marketable equity investments in private companies is other than temporary, the assessment is made byconsidering available evidence including the general market conditions in the investee's industry, the investee's product development status, the investee's ability tomeet business milestones and the financial condition and near-term prospects of the individual investee, including the rate at which the investee is using its cash,the investee's need for possible additional funding at a lower valuation and bona fide offers to purchase the investee from a prospective acquirer. When a decline invalue is deemed to be other than temporary, the Company recognizes an impairment loss in the current period's interest and other expense, net, to the extent of thedecline.Accounts ReceivableThe allowance for doubtful accounts reflects the Company's best estimate of probable losses inherent in the accounts receivable balance. The Company determinesthe allowance based on the aging of Xilinx's accounts receivable, historical experience, known troubled accounts, management judgment and other currentlyavailable evidence. Xilinx writes off accounts receivable against the allowance when Xilinx determines a balance is uncollectible and no longer actively pursuescollection of the receivable. The amounts of accounts receivable written off were insignificant for all periods presented.InventoriesInventories are stated at the lower of actual cost (determined using the first-in, first-out method), or market (estimated net realizable value) and are comprised ofthe following:(In thousands)April 1, 2017 April 2, 2016Raw materials$14,517 $15,346Work-in-process161,120 123,675Finished goods51,396 39,529 $227,033 $178,550The Company reviews and sets standard costs quarterly to approximate current actual manufacturing costs. The Company's manufacturing overhead standards forproduct costs are calculated assuming full absorption of actual spending over actual volumes. Given the cyclicality of the market, the obsolescence of technologyand product lifecycles, the Company writes down inventory based on forecasted demand and technological obsolescence. These forecasts are developed based oninputs from the Company's customers, including bookings and extended but uncommitted demand forecasts, and internal analyses such as customer historicalpurchasing trends and actual and anticipated design wins, as well as market and economic conditions, technology changes, new product introductions and changesin strategic direction. These factors require estimates that may include uncertain elements. The estimates of future demand that the Company uses in the valuationof inventory are the basis for its published revenue forecasts, which are also consistent with our short-term manufacturing plans. The differences between theCompany's demand forecast and the actual demand in the recent past have not resulted in any material write down in the Company's inventory. If the Company'sdemand forecast for specific products is greater than actual demand and the Company fails to reduce manufacturing output accordingly, the Company could berequired to write down additional inventory, which would have a negative impact on the Company's gross margin.47Table of ContentsProperty, Plant and EquipmentProperty, plant and equipment are recorded at cost, net of accumulated depreciation. Depreciation for financial reporting purposes is computed using the straight-line method over the estimated useful lives of the assets of three to five years for machinery, equipment, furniture and fixtures and 15 to 30 years for buildings.Depreciation expense totaled $45.4 million , $50.8 million and $55.3 million for fiscal 2017 , 2016 and 2015 , respectively.Impairment of Long-Lived AssetsThe Company evaluates the carrying value of long-lived assets to be held and used for impairment if indicators of potential impairment exist. Impairmentindicators are reviewed on a quarterly basis. When indicators of impairment exist and assets are held for use, the Company estimates future undiscounted cashflows attributable to the assets. In the event such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written downto their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. When assets are removed fromoperations and held for sale, Xilinx estimates impairment losses as the excess of the carrying value of the assets over their fair value.GoodwillGoodwill is not amortized but is subject to impairment tests on an annual basis, or more frequently if indicators of potential impairment exist, using a fair-value-based approach. Based on the impairment review performed during the fourth quarter of fiscal 2017 , there was no impairment of goodwill in fiscal 2017 . Unlessthere are indicators of impairment, the Company's next impairment review for goodwill will be performed and completed in the fourth quarter of fiscal 2018 . Todate, no impairment indicators have been identified.Revenue RecognitionSales to distributors are made under agreements providing distributor price adjustments and rights of return under certain circumstances. Revenue and costsrelating to distributor sales are deferred until products are sold by the distributors to the distributors' end customers. For fiscal 2017 , approximately 52% of theCompany's net revenues were from products sold to distributors for subsequent resale to OEMs or their subcontract manufacturers. Revenue recognition dependson notification from the distributor that product has been sold to the distributor's end customer. Also reported by the distributor are product resale price, quantityand end customer shipment information, as well as inventory on hand. Reported distributor inventory on hand is reconciled to deferred revenue balances monthly.The Company maintains system controls to validate distributor data and to verify that the reported information is accurate. Deferred income on shipments todistributors reflects the estimated effects of distributor price adjustments and the amount of gross margin expected to be realized when distributors sell throughproduct purchased from the Company. Accounts receivable from distributors are recognized and inventory is relieved when title to inventories transfers, typicallyupon shipment from Xilinx at which point the Company has a legally enforceable right to collection under normal payment terms.As of April 1, 2017 , the Company had $74.2 million of deferred revenue and $19.6 million of deferred cost of revenues recognized as a net $54.6 million ofdeferred income on shipments to distributors. As of April 2, 2016 , the Company had $70.9 million of deferred revenue and $19.1 million of deferred cost ofrevenues recognized as a net $51.8 million of deferred income on shipments to distributors. The deferred income on shipments to distributors that will ultimatelybe recognized in the Company's consolidated statement of income will be different than the amount shown on the consolidated balance sheet due to actual priceadjustments issued to the distributors when the product is sold to their end customers.Revenue from sales to the Company's direct customers is recognized upon shipment provided that persuasive evidence of a sales arrangement exists, the price isfixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no customer acceptance requirements and noremaining significant obligations. For each of the periods presented, there were no significant acceptance provisions with the Company's direct customers.Revenue from software licenses is deferred and recognized as revenue over the term of the licenses of one year. Revenue from support services is recognized whenthe service is performed. Revenue from software licenses and support services sales were less than 5% of net revenues for all of the periods presented.Allowances for end customer sales returns are recorded based on historical experience and for known pending customer returns.48Table of ContentsForeign Currency TranslationThe U.S. dollar is the functional currency for the Company's Ireland and Singapore subsidiaries. Monetary assets and liabilities that are not denominated in thefunctional currency are remeasured into U.S. dollars, and the resulting gains or losses are included in the consolidated statements of income under interest andother expense, net. The remeasurement gains or losses were immaterial for all fiscal periods presented.The local currency is the functional currency for each of the Company's other wholly-owned foreign subsidiaries. Assets and liabilities are translated from foreigncurrencies into U.S. dollars at month-end exchange rates and statements of income are translated at the average monthly exchange rates. Exchange gains or lossesarising from translation of foreign currency denominated assets and liabilities (i.e., cumulative translation adjustment) are included as a component of accumulatedother comprehensive income (loss) in stockholders' equity.Derivative Financial InstrumentsTo reduce financial risk, the Company periodically enters into financial arrangements as part of the Company's ongoing asset and liability management activities.Xilinx uses derivative financial instruments to hedge fair values of underlying assets and liabilities or future cash flows which are exposed to foreign currency orcommodity price fluctuations. The Company does not enter into derivative financial instruments for trading or speculative purposes. See "Note 5. DerivativeFinancial Instruments" for detailed information about the Company's derivative financial instruments.Research and Development ExpensesResearch and development costs are current period expenses and charged to expense as incurred.Stock-Based CompensationThe Company has equity incentive plans that are more fully discussed in "Note 6. Stock-Based Compensation Plans." The authoritative guidance of accounting forshare-based payment requires the Company to measure the cost of all employee equity awards (that are expected to be exercised or vested) based on the grant-datefair value of those awards, and to record that cost as compensation expense over the period during which the employee is required to perform service in exchangefor the award (over the vesting period of the award). Additionally, the Company's ESPP is deemed to be a compensatory plan under the authoritative guidance ofaccounting for share-based payments. Accordingly, the ESPP is included in the computation of stock-based compensation expense. In the first quarter of fiscal2017, the Company early adopted the authoritative guidance which requires excess tax benefits or tax deficiencies to be recorded in the consolidated statement ofincome when the awards vest or are settled. See "Recent Accounting Pronouncements Adopted" section below for full details.The Company uses the straight-line attribution method to recognize stock-based compensation costs over the requisite service period of the award. Upon exercise,cancellation or expiration of stock options, deferred tax assets for options with multiple vesting dates are eliminated for each vesting period on a first-in, first-outbasis as if each award had a separate vesting period.Income TaxesAll income tax amounts reflect the use of the liability method under the accounting for income taxes, as interpreted by Financial Accounting Standards Board(FASB) authoritative guidance for measuring uncertain tax positions . Under this method, deferred tax assets and liabilities are determined based on the expectedfuture tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reporting purposes.Product Warranty and IndemnificationThe Company generally sells products with a limited warranty for product quality. The Company provides an accrual for known product issues if a loss is probableand can be reasonably estimated. As of the end of both fiscal 2017 and 2016 , the accrual balance of the product warranty liability was immaterial.The Company offers, subject to certain terms and conditions, to indemnify customers and distributors for costs and damages awarded against these parties in theevent the Company's hardware products are found to infringe third-party intellectual property rights, including patents, copyrights or trademarks, and tocompensate certain customers for limited specified costs they actually incur in the event our hardware products experience epidemic failure. To a lesser extent, theCompany may from time-to-time offer limited indemnification with respect to its software products. The terms and conditions of these indemnity obligations are49Table of Contentslimited by contract, which obligations are typically perpetual from the effective date of the agreement. The Company has historically received only a limitednumber of requests for indemnification under these provisions and has not made any significant payments pursuant to these provisions. The Company cannotestimate the maximum amount of potential future payments, if any, that the Company may be required to make as a result of these obligations due to the limitedhistory of indemnification claims and the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision.However, there can be no assurances that the Company will not incur any financial liabilities in the future as a result of these obligations.Concentrations of Credit RiskAvnet, one of the Company's distributors, distributes the Company's products worldwide. As of April 1, 2017 and April 2, 2016 , Avnet accounted for 59% and75% of the Company's total net accounts receivable, respectively. Resale of product through Avnet accounted for 44% , 50% and 43% of the Company'sworldwide net revenues in fiscal 2017 , 2016 and 2015 , respectively. The percentage of net accounts receivable due from Avnet and the percentage of worldwidenet revenues from Avnet are consistent with historical patterns.Xilinx is subject to concentrations of credit risk primarily in its trade accounts receivable and investments in debt securities to the extent of the amounts recordedon the consolidated balance sheet. The Company attempts to mitigate the concentration of credit risk in its trade receivables through its credit evaluation process,collection terms and distributor sales to diverse end customers and through geographical dispersion of sales. Xilinx generally does not require collateral forreceivables from its end customers or from distributors.No end customer accounted for more than 10% of the Company's worldwide net revenues for any of the periods presented.The Company mitigates concentrations of credit risk in its investments in debt securities by currently investing more than 84% of its portfolio in AA or highergrade securities as rated by Standard & Poor's or Moody's Investors Service equivalent. The Company's methods to arrive at investment decisions are not solelybased on the rating agencies' credit ratings. Xilinx also performs additional credit due diligence and conducts regular portfolio credit reviews, including a review ofcounterparty credit risk related to the Company's forward currency exchange contracts. Additionally, Xilinx limits its investments in the debt securities of a singleissuer based upon the issuer's credit rating and attempts to further mitigate credit risk by diversifying risk across geographies and type of issuer.As of April 1, 2017 , approximately 35% of the portfolio consisted of mortgage-backed securities. All of the mortgage-backed securities in the investment portfoliowere issued by U.S. government-sponsored enterprises and agencies and are rated AA+ by Standard & Poor's and Aaa by Moody's Investors Service.The global credit markets may experience adverse conditions that negatively impact the values of various types of investment and non-investment grade securities.The global credit and capital markets may experience significant volatility and disruption due to instability in the global financial system, uncertainty related toglobal economic conditions and concerns regarding sovereign financial stability. Therefore, there is a risk that we may incur other-than-temporary impairmentcharges for certain types of investments should credit market conditions deteriorate. See "Note 4. Financial Instruments" for a table of the Company's available-for-sale securities.Recent Accounting Pronouncements AdoptedIn April 2015, the FASB issued authoritative guidance that requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet asa direct deduction from the carrying amount of that debt liability, which the Company adopted in the first quarter of fiscal 2017. We have applied the amendmentretrospectively to the comparable period presented and it did not have a significant impact on our financial statements.In March 2016, the FASB issued authoritative guidance to simplify various aspects related to how share-based payments are accounted for and presented in thefinancial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cashflows. In the first quarter of fiscal 2017, the Company early adopted this authoritative guidance. Under the new guidance, excess tax benefits or tax deficiencies arerecorded in the consolidated statement of income when the awards vest or are settled. Previously, they were recorded in stockholders' equity of the consolidatedbalance sheet. In addition, cash flows related to excess tax benefits or tax deficiencies are now classified as an operating activity, with prior periods adjustedaccordingly. While the new authoritative guidance provides an accounting policy election to account for forfeitures as they occur, the Company elected to continueto estimate forfeitures to determine the amount of compensation cost to be recognized in each period. As a result of the adoption of this guidance, the consolidatedstatement of cash flows for the years ended April 2, 2016 and March 28, 2015 were adjusted as follows: a $16.2 million and $19.7 million increase, respectively,50Table of Contentsto net cash provided by operating activities and a $16.2 million and $19.7 million increase, respectively, to the net cash used in financing activities. Additionally,the Company recorded excess tax benefits of $15.4 million for fiscal 2017 in the provision for income taxes. This resulted in an increase to net income per dilutedshare of $0.06 for fiscal 2017.Recent Accounting Pronouncements Not Yet AdoptedIn April 2014, the FASB issued the authoritative guidance, as amended, that outlines a new global revenue recognition standard that replaces virtually all existingUS GAAP guidance on contracts with customers and the related other assets and deferred costs. The authoritative guidance provides a five-step process forrecognizing revenue that depicts the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects tobe entitled in exchange for those goods or services. The authoritative guidance also requires expanded qualitative and quantitative disclosures relating to the nature,amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The new authoritative guidance is required to be appliedretrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of initially applying it recognized at the date of initialapplication. The Company is currently evaluating the full impact of this new authoritative guidance on its consolidated financial statements, including selection ofthe transition method. However, assuming all other revenue recognition criteria have been met, it is expected that the new authoritative guidance would require theCompany to recognize revenue and cost relating to distributor sales upon product delivery (Sell-In), subject to estimated allowance for distributor priceadjustments and rights of return, rather than deferring the distributor sales upon product delivery and subsequently recognizing revenue when the product is sold bythe distributor to the end customer (Sell-Through). Upon adoption, the Company currently expects that it will record the balance of the deferred revenue (subject totrue-ups) under the Sell-Through to retained earnings, and the impact would be offset by the recognition of revenue on shipments post adoption under Sell-In. TheCompany continues to evaluate the impact to revenues and related disclosures related to the pending adoption of the new guidance and the preliminary assessmentsare subject to change. Depending on timing of customer orders, timing of shipment to distributors and to end customers, distributor inventory strategies and otherfactors that may be beyond the Company's control, the difference in revenue recognized under Sell-Through and Sell-In could be material in the future. Theauthoritative guidance will be effective for the Company beginning in fiscal year 2019 as the Company decided not to early adopt it in fiscal 2018.In January 2016, the FASB issued the final authoritative guidance regarding how companies measure equity investments that do not result in consolidation and arenot accounted for under the equity method and how they present changes in the fair value of financial liabilities measured under the fair value option that areattributable to their own credit. The new authoritative guidance also changes certain disclosure requirements and other aspects of current US GAAP. It does notchange the guidance for classifying and measuring investments in debt securities and loans. The authoritative guidance is effective for public business entities forannual periods beginning after December 15, 2017, and interim periods within those annual periods, which for Xilinx would be the first quarter of fiscal year 2019.Upon adoption, the Company would record all of the unrealized gains or losses from its investment in mutual funds to retained earnings, and subsequent changes infair value from such investments will be recorded under its consolidated statements of income.In February 2016, the FASB issued the authoritative guidance on leases. The new authoritative guidance requires the recognition of assets and liabilities arisingfrom lease transactions on the balance sheet and will also require significant additional disclosures about the amount, timing and uncertainty of cash flows fromleases. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The newauthoritative guidance is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years,which for Xilinx would be the first quarter of fiscal year 2020. Early adoption is permitted. The new authoritative guidance must be adopted using a modifiedretrospective transition, and provides for certain practical expedients. In addition, the transition will require application of the new authoritative guidance at thebeginning of the earliest comparative period presented. The Company is currently evaluating the impact of this new authoritative guidance on its consolidatedfinancial statements.In June 2016, the FASB issued the authoritative guidance which introduces new guidance for the accounting for credit losses on instruments for both financialservices and non-financial services entities. The new authoritative guidance requires certain types of financial instruments be recorded net of expected credit losses.It also modifies the impairment model for available-for-sale debt securities and provides for a simplified accounting model for purchased financial assets withcredit deterioration since their origination. The new authoritative guidance will be effective for public business entities in fiscal years beginning after December 15,2019, including interim periods within those years, which for Xilinx would be the first quarter of fiscal year 2021. Early adoption is permitted. The Company iscurrently evaluating the impact of this new authoritative guidance on its consolidated financial statements.In August 2016, the FASB issued authoritative guidance for cash flow classification. The new authoritative guidance is intended to reduce diversity in practice inhow cash receipts and cash payments are classified in the statement of cash flows. The new authoritative guidance will be effective for public business entities infiscal years beginning after December 15, 2017, including51Table of Contentsinterim periods within those years, which for Xilinx would be the first quarter of fiscal year 2019. Early adoption is permitted. The Company is currentlyevaluating the impact of this new authoritative guidance on its consolidated financial statements.In October 2016, the FASB issued authoritative guidance for accounting for income taxes which eliminates the deferred tax effects of intra-entity asset transfersother than inventory. As a result, a reporting entity would recognize the tax expense from the sale of an asset in the seller’s tax jurisdiction when the transferoccurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The new authoritative guidance will be effective for public businessentities in fiscal years beginning after December 15, 2017, which for Xilinx would be the first quarter of fiscal year 2019. Early adoption is permitted as of thebeginning of the annual period. The Company is currently evaluating the impact of this new authoritative guidance on its consolidated financial statements.In January 2017, the FASB issued authoritative guidance that simplifies the accounting for goodwill impairment. The authoritative guidance removes Step 2 of thegoodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’scarrying value exceeds its fair value, not to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged.Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The new authoritativeguidance will be effective for public business entities in fiscal years beginning after December 15, 2018, including interim periods within those years, which forXilinx would be the first quarter of fiscal year 2020. Early adoption is permitted. The Company is currently evaluating the impact of this new authoritativeguidance on its consolidated financial statements.Note 3.Fair Value MeasurementsThe guidance for fair value measurements established by the FASB defines fair value as the exchange price that would be received from selling an asset or paid totransfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair value measurements forassets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which Xilinx wouldtransact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk ofnonperformance.The Company determines the fair value for marketable debt securities using industry standard pricing services, data providers and other third-party sources and byinternally performing valuation testing and analysis. The Company primarily uses a consensus price or weighted-average price for its fair value assessment. TheCompany determines the consensus price using market prices from a variety of industry standard pricing services, data providers, security master files from largefinancial institutions and other third party sources and uses those multiple prices as inputs into a distribution-curve-based algorithm to determine the daily marketvalue. The pricing services use multiple inputs to determine market prices, including reportable trades, benchmark yield curves, credit spreads and broker/dealerquotes as well as other industry and economic events. For certain securities with short maturities, such as discount commercial paper and certificates of deposit, thesecurity is accreted from purchase price to face value at maturity. If a subsequent transaction on the same security is observed in the marketplace, the price on thesubsequent transaction is used as the current daily market price and the security will be accreted to face value based on the revised price. For certain othersecurities, such as student loan auction rate securities, the Company performs its own valuation analysis using a discounted cash flow pricing model.The Company validates the consensus prices by taking random samples from each asset type and corroborating those prices using reported trade activity,benchmark yield curves, binding broker/dealer quotes or other relevant price information. There have not been any changes to the Company's fair valuemethodology during fiscal 2017 and the Company did not adjust or override any fair value measurements as of April 1, 2017 .Fair Value HierarchyThe fair value framework requires the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets orliabilities. The guidance for fair value measurements requires that assets and liabilities carried at fair value be classified and disclosed in one of the followingcategories:Level 1 — Quoted (unadjusted) prices in active markets for identical assets or liabilities.The Company's Level 1 assets consist of U.S. government securities and money market funds.52Table of ContentsLevel 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices foridentical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data forsubstantially the full term of the asset or liability.The Company's Level 2 assets consist of financial institution securities, non-financial institution securities, municipal bonds, U.S. agency securities, foreigngovernment and agency securities, mortgage-backed securities, debt mutual funds, bank loans, asset-backed securities and commercial mortgage-backed securities.The Company's Level 2 assets and liabilities also include foreign currency forward contracts and commodity swap contracts.Level 3 — Unobservable inputs to the valuation methodology that are supported by little or no market activity and that are significant to the measurement of thefair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discountedcash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.The Company's Level 3 assets and liabilities include student loan auction rate securities, which were fully redeemed during fiscal 2017.Assets and Liabilities Measured at Fair Value on a Recurring BasisIn instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined basedon the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particular item to thefair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The following tables presentinformation about the Company's assets and liabilities measured at fair value on a recurring basis as of April 1, 2017 and April 2, 2016 :53Table of Contents April 1, 2017(In thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair ValueAssets Cash equivalents: Money market funds $298,307 $— $— $298,307Financial institution securities — 158,962 — 158,962Non-financial institution securities — 205,322 — 205,322U.S. government and agency securities 2,998 50,984 — 53,982Foreign government and agency securities — 177,310 — 177,310Short-term investments: Financial institution securities — 189,835 — 189,835Non-financial institution securities — 203,938 — 203,938U.S. government and agency securities 31,732 44,820 — 76,552Foreign government and agency securities — 144,811 — 144,811Mortgage-backed securities — 1,115,403 — 1,115,403Debt mutual funds — 34,068 — 34,068Bank loans — 154,014 — 154,014Asset-backed securities — 218,170 — 218,170Commercial mortgage-backed securities — 217,971 — 217,971Long-term investments: Mortgage-backed securities — 60,099 — 60,099Debt mutual fund — 54,608 — 54,608Asset-backed securities — 1,581 — 1,581Derivative financial instruments, net — 1,661 — 1,661Total assets measured at fair value $333,037 $3,033,557 $— $3,366,59454Table of Contents April 2, 2016(In thousands) Quoted Prices in Active Markets for Identical Instruments (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Fair ValueAssets Cash equivalents: Money market funds $232,698 $— $— $232,698Non-financial institution securities — 104,964 — 104,964Foreign government and agency securities — 98,967 — 98,967 Municipal bonds — 1,003 — 1,003Short-term investments: Financial institution securities — 284,853 — 284,853Non-financial institution securities — 460,148 — 460,148Municipal bonds — 61,579 — 61,579U.S. government and agency securities 81,873 110,420 — 192,293Foreign government and agency securities — 214,201 — 214,201Mortgage-backed securities — 1,067,157 — 1,067,157Debt mutual funds — 35,116 — 35,116Bank loans — 102,015 — 102,015Asset-backed securities — 210,051 — 210,051Commercial mortgage-backed securities — 206,470 — 206,470Long-term investments: Auction rate securities — — 9,977 9,977Municipal bonds — 7,100 — 7,100Mortgage-backed securities — 140,382 — 140,382Debt mutual fund — 56,785 — 56,785Asset-backed securities — 6,563 — 6,563Derivative financial instruments, net — 744 — 744Total assets measured at fair value $314,571 $3,168,518 $9,977 $3,493,066For certain of the Company’s financial instruments, including cash held in banks, accounts receivable and accounts payable, the carrying amounts approximate fairvalue due to their short maturities, and are therefore excluded from the fair value tables above.Changes in Level 3 Instruments Measured at Fair Value on a Recurring BasisThe following table is a reconciliation of all assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3): Years Ended(In thousands) April 1, 2017 April 2, 2016Balance as of beginning of period $9,977 $10,312Total realized and unrealized gains (losses): Included in other comprehensive income (loss) 523 (335)Sales and settlements, net (1) (10,500) —Balance as of end of period $— $9,97755Table of Contents(1)During fiscal 2017, $10.5M of student loan auction rate securities were redeemed at par value for cash.As of April 1, 2017 , the Company held no marketable securities measured at fair value using Level 3 inputs. Financial Instruments Not Recorded at Fair Value on a Recurring BasisThe Company's 2017 Convertible Notes, 2019 Notes and 2021 Notes are measured at fair value on a quarterly basis for disclosure purposes. The fair values of the2017 Convertible Notes, 2019 Notes and 2021 Notes as of April 1, 2017 were approximately $917.0 million , $501.6 million and $510.7 million , respectively,based on the last trading price of the respective debentures for the period (classified as Level 2 in fair value hierarchy due to relatively low trading volume).Note 4.Financial InstrumentsThe following is a summary of cash equivalents and available-for-sale securities as of the end of the periods presented:April 1, 2017 April 2, 2016(In thousands)Amortized Cost Gross UnrealizedGains GrossUnrealizedLosses Estimated FairValue Amortized Cost GrossUnrealizedGains GrossUnrealizedLosses Estimated FairValueMoney market funds$298,307 $— $— $298,307 $232,698 $— $— $232,698Financial institution securities348,797 — — 348,797 284,853 — — 284,853Non-financial institution securities409,109 647 (496) 409,260 564,480 862 (230) 565,112Auction rate securities— — — — 10,500 — (523) 9,977Municipal bonds— — — — 68,938 877 (133) 69,682U.S. government and agency securities130,749 8 (223) 130,534 192,291 73 (71) 192,293Foreign government and agency securities322,172 — (51) 322,121 313,168 — — 313,168Mortgage-backed securities1,186,732 3,527 (14,757) 1,175,502 1,200,071 12,848 (5,380) 1,207,539Asset-backed securities220,033 404 (686) 219,751 216,068 1,151 (605) 216,614Debt mutual funds101,350 — (12,674) 88,676 101,350 — (9,449) 91,901Bank loans153,281 839 (106) 154,014 102,092 25 (102) 102,015Commercial mortgage- backed securities221,504 146 (3,679) 217,971 207,847 432 (1,809) 206,470$3,392,034 $5,571 $(32,672) $3,364,933 $3,494,356 $16,268 $(18,302) $3,492,322Financial institution securities include securities issued or managed by financial institutions in various forms, such as commercial paper and time deposits.Substantially all time deposits were issued by institutions outside the U.S. as of April 1, 2017 and April 2, 2016 .The following tables show the fair values and gross unrealized losses of the Company's investments, aggregated by investment category, for individual securitiesthat have been in a continuous unrealized loss position for the length of time specified, as of April 1, 2017 and April 2, 2016 :56Table of ContentsApril 1, 2017Less Than 12 Months12 Months or GreaterTotal(In thousands)Fair ValueGross UnrealizedLossesFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesNon-financial institution securities$68,850$(492)$1,022$(4)$69,872$(496)U.S. government and agency securities64,895(223)——64,895(223)Mortgage-backed securities811,058(11,872)139,931(2,885)950,989(14,757)Asset-backed securities119,845 (651) 4,689 (35) 124,534 (686)Debt mutual funds——88,676(12,674)88,676(12,674)Bank loans15,139 (106) — — 15,139 (106)Foreign government and agency securities64,857 (51) — — 64,857 (51)Commercial mortgage- backed securities165,393 (1,706) 24,362 (1,973) 189,755 (3,679)$1,310,037$(15,101)$258,680$(17,571)$1,568,717$(32,672)April 2, 2016Less Than 12 Months 12 Months or Greater Total(In thousands)Fair Value Gross UnrealizedLosses Fair Value GrossUnrealizedLosses Fair Value GrossUnrealizedLossesNon-financial institution securities$52,756 $(230) $— $— $52,756 $(230)Auction rate securities— — 9,977 (523) 9,977 (523)Municipal bonds10,138 (44) 3,867 (89) 14,005 (133)U.S. government and agency securities84,024 (71) — — 84,024 (71)Mortgage-backed securities346,560 (3,916) 114,285 (1,464) 460,845 (5,380)Asset-backed securities81,038 (502) 20,793 (103) 101,831 (605)Debt mutual funds— — 91,901 (9,449) 91,901 (9,449)Bank loans34,358 (31) 42,832 (71) 77,190 (102)Commercial mortgage- backed securities141,761 (878) 2,150 (931) 143,911 (1,809)$750,635 $(5,672) $285,805 $(12,630) $1,036,440 $(18,302)As of April 1, 2017 , the gross unrealized losses that had been outstanding for less than twelve months were primarily related to mortgage-backed securities due tothe general rising of the interest-rate environment, although the percentage of such losses to the total estimated fair value of the mortgage-backed securities wasrelatively insignificant. The gross unrealized losses that had been outstanding for more than twelve months were primarily related to debt mutual funds andmortgage-backed securities, which were primarily due to the general rising of the interest-rate environment and foreign currency movement.The Company reviewed the investment portfolio and determined that the gross unrealized losses on these investments as of April 1, 2017 and April 2, 2016 weretemporary in nature as evidenced by the fluctuations in the gross unrealized losses within the investment categories, in particular within the debt mutual fundsduring the past few years. The Company's investment in mortgage-backed securities and commercial mortgage-backed securities are highly rated by the creditrating agencies and there have been no defaults on any of these securities, and we have received interest payments as they become due. Therefore, the Companybelieves that it will be able to collect both principal and interest amounts due to the Company. Additionally, in the past several years, a portion of the Company'sinvestment in the auction rate securities and the mortgage-backed securities were redeemed or prepaid by the debtors at par. Furthermore, the aggregate ofindividual unrealized losses that had been outstanding for twelve months or more was not significant as of April 1, 2017 and April 2, 2016 , the majority of whichare related to debt mutual funds due to foreign57Table of Contentscurrency and interest rate movement. The Company neither intends to sell these investments nor concludes that it is more-likely-than-not that it will have to sellthem until recovery of their carrying values.The amortized cost and estimated fair value of marketable debt securities (financial institution securities, non-financial institution securities, U.S. and foreigngovernment and agency securities, mortgage-backed securities, asset-backed securities, bank loans and commercial mortgage-backed securities), by contractualmaturity, are shown below. Actual maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without call orprepayment penalties. April 1, 2017(In thousands)Amortized CostEstimated Fair ValueDue in one year or less$1,007,551$1,007,487Due after one year through five years491,907489,627Due after five years through ten years293,184292,691Due after ten years1,199,7351,188,145$2,992,377$2,977,950As of April 1, 2017 , $1.94 billion of marketable debt securities with contractual maturities of greater than one year were classified as short-term investments.Additionally, the above table does not include investments in money market and debt mutual funds because these funds do not have specific contractual maturities.Certain information related to available-for-sale securities is as follows: Year Ended(In thousands)April 1, 2017April 2, 2016March 28, 2015Proceeds from sale of available-for-sale securities$695,030$268,887$1,617,658Gross realized gains on sale of available-for-sale securities$6,989$1,248 $15,101Gross realized losses on sale of available-for-sale securities(3,457)(878) (3,223)Net realized gains on sale of available-for-sale securities$3,532$370 $11,878Amortization of premiums on available-for-sale securities$29,360$26,613 $23,579The cost of securities matured or sold is based on the specific identification method.Note 5.Derivative Financial InstrumentsThe Company's primary objective for holding derivative financial instruments is to manage foreign currency exchange rate risk and interest rate risk. As a result ofthe use of derivative financial instruments, the Company is exposed to the risk that counterparties to derivative contracts may fail to meet their contractualobligations. The Company manages counterparty credit risk in derivative contracts by reviewing counterparty creditworthiness on a regular basis, establishingcollateral requirement and limiting exposure to any single counterparty. The right of set-off that exists with certain transactions enables the Company to netamounts due to and from the counterparty, reducing the maximum loss from credit risk in the event of counterparty default.As of April 1, 2017 and April 2, 2016 , the Company had the following outstanding forward currency exchange contracts (in notional amount), which werederivative financial instruments: (In thousands and U.S. dollars)April 1, 2017April 2, 2016Singapore Dollar$22,012$26,978Euro18,55319,123Indian Rupee31,12123,302British Pound10,81310,716Japanese Yen3,7573,387$86,256$83,50658Table of ContentsAs part of the Company's strategy to reduce volatility of operating expenses due to foreign exchange rate fluctuations, the Company employs a hedging programwith a forward outlook of up to two years for major foreign-currency-denominated operating expenses. The outstanding forward currency exchange contractsexpire at various dates through February 2019 . The net unrealized gains, which approximate the fair market value of the outstanding forward currency exchangecontracts, are expected to be recognized in the consolidated statements of income within the next two years .As of April 1, 2017 , all of the forward foreign currency exchange contracts were designated and qualified as cash flow hedges and the effective portion of the gainor loss on the forward contracts was reported as a component of other comprehensive income (loss) and reclassified into net income in the same period duringwhich the hedged transaction affects earnings. The estimated amount of such gains or losses as of April 1, 2017 that is expected to be reclassified into earnings wasnot material. The ineffective portion of the gains or losses on the forward contracts was included in the net income for all periods presented.The Company may enter into forward foreign currency exchange contracts to hedge firm commitments such as acquisitions and capital expenditures. Gains andlosses on foreign currency forward contracts that are designated as hedges of anticipated transactions, for which a firm commitment has been attained and thehedged relationship has been effective, are deferred and included in income or expenses in the same period that the underlying transaction is settled. Gains andlosses on any instruments not meeting the above criteria are recognized in income or expenses in the consolidated statements of income as they are incurred.The Company had the following derivative instruments as of April 1, 2017 and April 2, 2016 , located on the consolidated balance sheet, utilized for riskmanagement purposes detailed above: Foreign Exchange Contracts Asset DerivativesLiability Derivatives(In thousands)Balance Sheet LocationFair ValueBalance Sheet LocationFair ValueApril 1, 2017Prepaid expenses and othercurrent assets$2,424Other accrued liabilities$763April 2, 2016Prepaid expenses and othercurrent assets$2,161Other accrued liabilities$1,417 The Company does not offset or net the fair value amounts of derivative financial instruments in its consolidated balance sheets. The potential effect of rights ofset-off associated with the derivative financial instruments was not material to the Company's consolidated balance sheet for all periods presented.The following table summarizes the effect of derivative instruments on the consolidated statements of income for fiscal 2017 and 2016 : Foreign Exchange Contracts(In thousands)2017 2016Amount of gains recognized in other comprehensive income on derivative (effective portion of cash flow hedging)$405 $7,779 Amount of losses reclassified from accumulated other comprehensive income into income (effective portion) *$(1,701) $(7,225) Amount of gains recorded (ineffective portion) *$31 $10*Recorded in interest and other expense, net within the consolidated statements of income.Note 6.Stock-Based Compensation PlansThe Company's equity incentive plans are broad-based, long-term retention programs that cover employees, consultants and non-employee directors of theCompany. These plans are intended to attract and retain talented employees, consultants and non-employee directors and to provide such persons with a proprietaryinterest in the Company.Stock-Based Compensation59Table of ContentsThe following table summarizes stock-based compensation expense related to stock awards granted under the Company's equity incentive plans and rights toacquire stock granted under the Company's employee stock purchase plan (ESPP):(In thousands)April 1, 2017 April 2, 2016 March 28, 2015Stock-based compensation included in: Cost of revenues$8,014 $7,977 $8,101Research and development66,822 59,692 50,185Selling, general and administrative48,022 44,315 40,994Restructuring charges— — 579Stock-based compensation effect on income before taxes122,858 111,984 99,859Income tax effect(37,752) (34,119) (29,268)Net stock-based compensation effect on net income$85,106 $77,865 $70,591The Company adjusts stock-based compensation on a quarterly basis for changes to the estimate of expected equity award forfeitures based on actual forfeitureexperience. The effect of adjusting the forfeiture rate for all expense amortization was recognized in the period the forfeiture estimate was changed, and was notmaterial for all periods presented.During fiscal 2017 , 2016 and 2015 , there were no options granted and therefore the Company's stock-based compensation expense related to options, and thenumber of options outstanding as of April 1, 2017 , were not material.As of April 1, 2017 and April 2, 2016 , the ending inventory balances included $2.2 million and $2.0 million of capitalized stock-based compensation, respectively.During fiscal 2017 , 2016 and 2015 , the tax benefit realized for the tax deduction from restricted stock units (RSUs) and other awards totaled $53.3 million , $56.3million and $55.0 million , respectively. The tax deduction includes amounts credited to income tax expense in fiscal 2017 , and additional paid-in capital in fiscal2016 and 2015 .The fair values of ESPP were estimated as of the grant date using the Black-Scholes option pricing model. The Company's expected stock price volatilityassumption is estimated using implied volatility of the Company's traded options. The expected life of options granted is based on the historical exercise activity aswell as the expected disposition of all options outstanding. The expected life of options granted also considers the actual contractual term.The weighted-average fair value per share of stock purchase rights granted under the ESPP during fiscal 2017 , 2016 and 2015 were $13.00 , $11.12 and $9.17 ,respectively. These fair values per share were estimated at the date of grant using the following weighted-average assumptions: Employee Stock Purchase Plan 2017 2016 2015Expected life of options (years)1.3 1.3 1.3Expected stock price volatility0.24 0.26 0.25Risk-free interest rate0.7% 0.5% 0.3%Dividend yield2.4% 2.7% 2.9%The estimated fair values of RSU awards were calculated based on the market price of Xilinx common stock on the date of grant, reduced by the present value ofdividends expected to be paid on Xilinx common stock prior to vesting. The per share weighted-average fair value of RSUs granted during fiscal 2017 , 2016 and2015 were $44.38 , $41.19 and $43.11 , respectively. The weighted average fair value of RSUs granted in fiscal 2017 , 2016 and 2015 were calculated based onestimates at the date of grant using the following weighted-average assumptions: 2017 2016 2015Risk-free interest rate0.9% 1.3% 0.8%Dividend yield2.8% 2.8% 2.5%As of April 1, 2017 , total unrecognized stock-based compensation costs related to ESPP was $20.7 million . The total unrecognized stock-based compensationcost for ESPP is expected to be recognized over a weighted-average period of 1.1 years .60Table of ContentsEquity Incentive PlansAs of April 1, 2017 , 12.5 million shares are available for future grants under the 2007 Equity Incentive Plan (2007 Equity Plan). The contractual term for stockawards granted under the 2007 Equity Plan is seven years from the grant date. Stock awards granted to existing and newly hired employees generally vest over afour -year period from the date of grant.A summary of shares available for grant under the 2007 Equity Plan is as follows:(Shares in thousands) Shares Available for GrantMarch 29, 2014 15,037Additional shares reserved 3,000Stock options cancelled 6RSUs granted (3,201)RSUs cancelled 531March 28, 2015 15,373Stock options cancelled 10RSUs granted (3,088)RSUs cancelled 651April 2, 2016 12,946Additional shares reserved 2,500Stock options cancelled 1RSUs granted (3,398)RSUs cancelled 410April 1, 2017 12,459The types of awards allowed under the 2007 Equity Plan include incentive stock options, non-qualified stock options, RSUs, restricted stock and stock appreciationrights. To date, the Company has issued a mix of non-qualified stock options and RSUs under the 2007 Equity Plan.The total pre-tax intrinsic value of options exercised during fiscal 2017 and 2016 was $28.0 million and $42.6 million , respectively. This intrinsic value representsthe difference between the exercise price and the fair market value of the Company's common stock on the date of exercise.Since the Company adopted the policy of retiring all repurchased shares of its common stock, new shares are issued upon employees' exercise of their stockoptions.61Table of ContentsRSU AwardsA summary of the Company's RSU activity and related information is as follows: RSUs Outstanding(Shares and intrinsic value in thousands)Number ofSharesWeighted-AverageGrant-DateFair ValuePer ShareWeightedAverageRemainingContractualTerm (Years)AggregateIntrinsic Value(1)March 29, 20146,901 $35.08 Granted3,201 $43.11 Vested (2)(2,698) $33.82 Cancelled(531) $32.91 March 28, 20156,873 $39.07 Granted3,088 $41.19 Vested (2)(2,691) $37.23 Cancelled(651) $39.77 April 2, 20166,619 $40.74 Granted3,398 $44.38 Vested (2)(2,619) $39.49 Cancelled(410) $41.63 April 1, 20176,988 $42.93 2.38 $404,667 Expected to vest as of April 1, 20175,676 $42.95 2.39 $328,590(1)Aggregate intrinsic value for RSUs represents the closing price per share of Xilinx's stock on April 1, 2017 of $57.89 , multiplied by the number of RSUs outstanding orexpected to vest as of April 1, 2017 .(2)The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy the statutory tax withholding requirements.RSUs with a fair value of $103.4 million were vested during fiscal 2017 . As of April 1, 2017 , total unrecognized stock-based compensation costs related to non-vested RSUs was $198.5 million . The total unrecognized stock-based compensation cost for RSUs is expected to be recognized over a weighted-average period of2.6 years .Employee Stock Purchase PlanUnder the Company's ESPP, qualified employees can obtain a 24 -month purchase right to purchase the Company's common stock at the end of each six -monthexercise period. Participation is limited to 15% of the employee's annual earnings up to a maximum of $21 thousand in a calendar year. Approximately 83% of alleligible employees participate in the ESPP. The purchase price of the stock is 85% of the lower of the fair market value at the beginning of the 24 -month offeringperiod or at the end of each six -month exercise period. Employees purchased 1.2 million shares for $39.5 million in fiscal 2017 , 1.1 million shares for $37.6million in fiscal 2016, and 1.2 million shares for $39.0 million in fiscal 2015. The next scheduled purchase under the ESPP is in the second quarter of fiscal 2018 .As of April 1, 2017 , 8.2 million shares were available for future issuance.Note 7. Balance Sheet InformationThe following tables disclose the current liabilities that individually exceed 5% of the respective consolidated balance sheet amounts in each fiscal year. Individualbalances that are less than 5% of the respective consolidated balance sheet amounts are aggregated and disclosed as "other."62Table of Contents(In thousands)2017 2016Accrued payroll and related liabilities: Accrued compensation$81,701 $73,823 Deferred compensation plan liability88,110 74,180 Other6,790 6,291$176,601 $154,294Other accrued liabilities: Interest payable$4,492 $5,591 Unsettled investment transactions62,199 25,572 Other28,407 13,945$95,098 $45,108Note 8.CommitmentsXilinx leases some of its facilities and office buildings under non-cancelable operating leases that expire at various dates through December 2025 . Additionally,Xilinx entered into a land lease in conjunction with the Company's building in Singapore, which will expire in November 2035 and the lease cost was settled in anup-front payment in June 2006. Some of the operating leases for facilities and office buildings require payment of operating costs, including property taxes, repairs,maintenance and insurance. Most of the Company's leases contain renewal options for varying terms. Approximate future minimum lease payments under non-cancelable operating leases are as follows:Fiscal(In thousands)2018$5,56020194,40120203,34120212,31520222,368Thereafter487Total$18,472Aggregate future rental income to be received, which includes rents from both owned and leased property, totaled $1.9 million as of April 1, 2017 . Rent expense,net of rental income, under all operating leases was $5.0 million for fiscal 2017 , $4.5 million for fiscal 2016 , and $3.2 million for fiscal 2015 . Rental income wasnot material for fiscal 2017 , 2016 or 2015 .Other commitments as of April 1, 2017 totaled $112.6 million and consisted of purchases of inventory and other non-cancelable purchase obligations related tosubcontractors that manufacture silicon wafers and provide assembly and test services. The Company expects to receive and pay for these materials and services inthe next three to six months, as the products meet delivery and quality specifications. Additionally, as of April 1, 2017 , the Company had $48.8 million of non-cancelable license obligations to providers of electronic design automation software and hardware/software maintenance expiring at various dates throughDecember 2019 .Note 9.Net Income Per Common ShareThe computation of basic net income per common share for all periods presented is derived from the information on the consolidated statements of income, andthere are no reconciling items in the numerator used to compute diluted net income per common share. The following table summarizes the computation of basicand diluted net income per common share:63Table of Contents(In thousands, except per share amounts)2017 2016 2015Net income available to common stockholders$622,512 $550,867 $648,216Weighted average common shares outstanding-basic252,301 257,184 265,480Dilutive effect of employee equity incentive plans2,284 2,260 3,257Dilutive effect of 2017 Convertible Notes and warrants14,2289,223 7,386Weighted average common shares outstanding-diluted268,813 268,667 276,123Basic earnings per common share$2.47 $2.14 $2.44Diluted earnings per common share$2.32 $2.05 $2.35The total shares used in the denominator of the diluted net income per common share calculation includes potentially dilutive common equivalent sharesoutstanding that are not included in basic net income per common share by applying the treasury stock method to the impact of the equity incentive plans and to theincremental shares issuable assuming conversion of the Company's convertible debt and warrants (see "Note 12. Debt and Credit Facility" for more discussion ofour debt and warrants).Outstanding stock options and RSUs under the Company's stock award plans to purchase approximately 2.6 million , 4.6 million and 4.1 million shares, for fiscal2017 , 2016 or 2015 respectively, were excluded from diluted net income per common share by applying the treasury stock method, as their inclusion would havebeen antidilutive. These options and RSUs could be dilutive in the future if the Company's average share price increases and is greater than the combined exerciseprices and the unamortized fair values of these options and RSUs.To hedge against potential dilution upon conversion of the 2017 Convertible Notes, the Company also purchased call options on its common stock from the hedgecounterparties. At the end of fiscal 2017 , the call options give the Company the right to purchase up to 15.9 million shares of its common stock at $28.86 pershare. These call options are not considered for purposes of calculating the total shares outstanding under the basic and diluted net income per share, as their effectwould be anti-dilutive. Upon exercise, the call options would serve to neutralize the dilutive effect of the 2017 Convertible Notes and potentially reduce theweighted number of diluted shares used in per share calculations.Note 10.Interest and Other Expense, NetThe components of interest and other expense, net are as follows: (In thousands)April 1, 2017 April 2, 2016 March 28, 2015Interest income$51,121 $40,180 $35,876Interest expense(53,953) (55,456) (55,431)Other income (expense), net(5,482) (17,780) 4,553$(8,314) $(33,056) $(15,002)Note 11.Accumulated Other Comprehensive LossComprehensive loss is defined as the change in equity of a company during a period from transactions and other events and circumstances from non-ownersources. The components of accumulated other comprehensive loss are as follows: (In thousands)2017 2016Accumulated unrealized losses on available-for-sale securities, net of tax$(17,091) $(1,260)Accumulated unrealized gains on hedging transactions, net of tax661 256Accumulated cumulative translation adjustment, net of tax(8,251) (5,627)Accumulated other comprehensive loss$(24,681) $(6,631)The related tax effects of other comprehensive loss were not material for all periods presented.64Table of ContentsNote 12.Debt and Credit Facility2017 Convertible NotesDuring the first quarter of fiscal 2011, the Company issued $600.0 million principal amount of 2.625% 2017 Convertible Notes with maturity date of June 15, 2017. The 2017 Convertible Notes are senior in right of payment to the Company's existing and future unsecured indebtedness that is expressly subordinated in right ofpayment to the 2017 Convertible Notes, and are ranked equally with all of our other existing and future unsecured senior indebtedness, including the 2019 and2021 Notes discussed below. The Company may not redeem the 2017 Convertible Notes prior to maturity. The 2017 Convertible Notes are convertible, subject tocertain conditions, into shares of Xilinx common stock at a conversion rate of 34.6495 shares of common stock per $1 thousand principal amount of the 2017Convertible Notes, representing an effective conversion price of approximately $28.86 per share of common stock. The conversion rate is subject to adjustment forcertain events as outlined in the indenture governing the 2017 Convertible Notes but will not be adjusted for accrued interest.To hedge against potential dilution upon conversion of the 2017 Convertible Notes, the Company also purchased call options on its common stock from the hedgecounterparties. The call options give the Company the right to purchase up to 15.9 million shares (after the exercises during the twelve months ended April 1, 2017- see the subsequent paragraph for more description) of its common stock at $28.86 per share. The call options will terminate upon the earlier of the maturity of the2017 Convertible Notes or the last day any of the 2017 Convertible Notes remain outstanding. To reduce the hedging cost, under separate transactions theCompany sold warrants to the hedge counterparties, which give the hedge counterparties the right to purchase up to 20.8 million shares of the Company's commonstock at $40.89 per share. These warrants expire on a gradual basis over a specified period starting on September 13, 2017.During the twelve months ended April 1, 2017 , the Company received conversion requests from certain holders of the 2017 Convertible Notes. Upon settlement,the holders received a cash payment equal to the par value of the 2017 Notes converted of $142.1 million , as well as 2.5 million shares of Common Stock. Inconjunction with the settlement, the Company exercised the purchased calls and received 2.5 million shares from the hedge counterparties. In accordance with theauthoritative guidance for convertible debentures issued by the FASB, the conversion payment was allocated between the liability ( $142.9 million ) and equity ($149.1 million ) components of the convertible debentures, using the equivalent rate that reflected the borrowing rate for a similar non-convertible debt prior to theconversion. As a result, the Company recognized a loss of $1.7 million . As of April 1, 2017 , the Company had $457.9 million principal amount of 2017Convertible Notes outstanding.As of April 1, 2017 , the 2017 Convertible Notes were classified as a current liability on the Company's consolidated balance sheet, and a portion of the equitycomponent attributable to the conversion feature of the 2017 Convertible Notes was classified in temporary stockholders' equity. The amount classified astemporary equity was equal to the difference between the principal amount and carrying value of the 2017 Convertible Notes.The carrying values of the liability and equity components of the 2017 Convertible Notes are reflected in the Company's consolidated balance sheets as follows:(In thousands)2017 2016Liability component: Principal amount of the 2017 Convertible Notes$457,918 $600,000 Unamortized discount of liability component(1,977) (18,135) Hedge accounting adjustment – sale of interest rate swap571 5,241 Unamortized debt issuance costs associated with 2017 Convertible Notes$(184) $(1,689) Net carrying value of the 2017 Convertible Notes$456,328 $585,417 Equity component (including temporary equity) – net carrying value$50,688 $66,415The remaining unamortized debt discount, net of the hedge accounting adjustment from the sale of the interest rate swap, is being amortized as additional non-cashinterest expense over the expected remaining term of the 2017 Convertible Notes. As of April 1, 2017 , the remaining term of the 2017 Convertible Notes is 0.2 years. As of April 1, 2017 , the if-converted value of the outstanding 2017 Convertible Notes was $935.8 million .Interest expense related to the 2017 Convertible Notes was included in interest and other expense, net on the consolidated statements of income as follows:65Table of Contents(In thousands)April 1, 2017 April 2, 2016 March 28, 2015Contractual coupon interest$14,652 $15,750 $15,750Amortization of debt issuance costs1,398 1,448 1,448Amortization of debt discount, net10,670 11,052 11,052Total interest expense related to the 2017 Convertible Notes$26,720 $28,250 $28,2502019 and 2021 NotesOn March 12, 2014, the Company issued $500 million principal amount of 2.125% 2019 Notes and $ 500 million principal amount of 3.000% 2021 Notes withmaturity dates of March 15, 2019 and March 15, 2021 , respectively. The 2019 and 2021 Notes were offered to the public at a discounted price of 99.477% and99.281% of par, respectively. Interest on the 2019 and 2021 Notes is payable semiannually on March 15 and September 15.The Company received net proceeds of $990.1 million from issuance of the 2019 and 2021 Notes, after the debt discounts and deduction of debt issuance costs.The debt discounts and issuance costs are amortized to interest expense over the lives of the 2019 and 2021 Notes.The following table summarizes the carrying value of the 2019 and 2021 Notes in the Company's consolidated balance sheets:(In thousands) 2017 2016Principal amount of the 2019 Notes $500,000 $500,000Unamortized discount of the 2019 Notes (1,037) (1,560)Unamortized debt issuance costs associated with the 2019 Notes (654) (996)Principal amount of the 2021 Notes 500,000 500,000Unamortized discount of the 2021 Notes (2,107) (2,605)Unamortized debt issuance costs associated with the 2021 Notes (955) (1,200)Total senior notes $995,247 $993,639Interest expense related to the 2019 and 2021 Notes was included in interest and other expense, net on the consolidated statements of income as follows:(In thousands) April 1, 2017 April 2, 2016 March 28, 2015Contractual coupon interest $25,625 $25,625 $25,625Amortization of debt issuance costs 586 586 586Amortization of debt discount, net 1,022 995 970Total interest expense related to the 2019 and 2021 Notes $27,233 $27,206 $27,181Revolving Credit FacilityOn December 7, 2016 , the Company entered into a $400.0 million senior unsecured revolving credit facility that, upon certain conditions, may be extended by anadditional $150.0 million , with a syndicate of banks (expiring in December 2021 ). Borrowings under the credit facility will bear interest at a benchmark rate plusan applicable margin based upon the Company's credit rating. In connection with the credit facility, the Company is required to maintain certain financial and non-financial covenants. As of April 1, 2017 , the Company had made no borrowings under this credit facility and was not in violation of any of the covenants.Note 13. Stockholders' EquityPreferred StockThe Company's Certificate of Incorporation authorized 2.0 million shares of undesignated preferred stock. The preferred stock may be issued in one or more series.The Board of Directors is authorized to determine or alter the rights, preferences, privileges66Table of Contentsand restrictions granted to, or imposed upon, any wholly unissued series of preferred stock. As of April 1, 2017 and April 2, 2016 , no preferred shares were issuedor outstanding.Common Stock and Debentures Repurchase ProgramsThe Board of Directors has approved stock repurchase programs enabling the Company to repurchase its common stock in the open market or through negotiatedtransactions with independent financial institutions. In November 2014, the Board authorized the repurchase of $800.0 million of the Company's common stock. InMay 2016, the Board authorized the repurchase of up to $1.00 billion of the Company's common stock and debentures. The 2014 and 2016 Repurchase Programshave no stated expiration date.Through April 1, 2017 , the Company has used all of the $800.0 million authorized under the 2014 Repurchase Program and $317.9 million of the $1.00 billionauthorized under the 2016 Repurchase Program, leaving $682.1 million available for future repurchases. The Company's current policy is to retire all repurchasedshares, and consequently, no treasury shares were held as of April 1, 2017 and April 2, 2016 .During fiscal 2017 , the Company repurchased 9.9 million shares of common stock in the open market and through an accelerated share repurchase agreement withan independent financial institution for a total of approximately $522.0 million . During fiscal 2016 , the Company repurchased 9.7 million shares of common stockin the open market for a total of $443.2 million .Note 14.Income TaxesThe provision for income taxes consists of the following:(In thousands) April 1, 2017 April 2, 2016 March 28, 2015Federal: Current $(19,097) $21,366 $61,308 Deferred 64,158 42,146 17,121 45,061 63,512 78,429State: Current (938) 2,447 3,330 Deferred 3,093 1,781 1,803 2,155 4,228 5,133Foreign: Current 21,121 18,016 9,433 Deferred 231 202 (1,135) 21,352 18,218 8,298Total $68,568 $85,958 $91,860The domestic and foreign components of income before income taxes were as follows:(In thousands)April 1, 2017 April 2, 2016 March 28, 2015Domestic$41,031 $37,568 $110,881Foreign650,049 599,257 629,195Income before income taxes$691,080 $636,825 $740,076As a result of the early adoption of new authoritative guidance on accounting for share-based payments in the first quarter of fiscal 2017, the Company recordedexcess tax benefits associated with stock-based compensation of $15.4 million in the provision for income taxes during fiscal 2017. The excess taxbenefits associated with stock-based compensation that were recorded in additional paid-in capital in prior fiscal years, were $11.4 million and $13.9 million , forfiscal 2016 and 2015 , respectively.As of April 1, 2017 , the Company had federal and state net operating loss carryforwards of approximately $15.9 million . If unused, these carryforwards willexpire at various dates through fiscal 2031 . All of the federal and state net operating loss carryforwards67Table of Contentsare subject to change of ownership limitations provided by the Internal Revenue Code and similar state provisions. The Company had $4.6 million of low incomehousing tax credit carryforwards with expiration in fiscal 2037 . The Company had state research tax credit carryforwards of approximately $164.5 million . Thecredits have no expiration date. Some of the state credit carryforwards are subject to change of ownership limitations provided by state provisions similar to that ofthe Internal Revenue Code. The state credit carryforwards include $111.6 million that is not likely to be recovered and has been reduced by a valuation allowance.Unremitted foreign earnings that are considered to be permanently invested outside the U.S., and on which no U.S. taxes have been provided, are approximately$3.46 billion as of April 1, 2017 . The residual U.S. tax liability, if such amounts were remitted, would be approximately $1.17 billion .The provision for income taxes reconciles to the amount derived by applying the federal statutory income tax rate to income before provision for taxes as follows:(In thousands) April 1, 2017 April 2, 2016 March 28, 2015Income before provision for taxes $691,080 $636,825 $740,076Federal statutory tax rate 35% 35% 35%Computed expected tax 241,878 222,889 259,027State taxes, net of federal benefit 1,741 3,177 2,458Foreign earnings at lower tax rates (119,616) (112,942) (141,372)Tax credits (34,146) (25,211) (26,633)Excess benefits from stock-based compensation (15,396) — —Other (5,893) (1,955) (1,620)Provision for income taxes $68,568 $85,958 $91,860The Company has manufacturing operations in Singapore where the Company has been granted "Pioneer Status" that is effective through fiscal 2021. The PioneerStatus reduces the Company's tax on the majority of Singapore income from 17% to zero percent. The benefits of Pioneer Status in Singapore for fiscal 2017 ,fiscal 2016 and fiscal 2015 were approximately $55.9 million ( $0.21 per diluted share), $51.3 million ( $0.19 per diluted share), and $66.0 million ( $0.24 perdiluted share), respectively, on income considered permanently reinvested outside the U.S. The tax effect of operations in low tax jurisdictions on the Company'soverall tax rate is reflected in the table above.68Table of ContentsThe major components of deferred tax assets and liabilities consisted of the following as of April 1, 2017 and April 2, 2016 :(In thousands) 2017 2016Deferred tax assets: Stock-based compensation $22,050 $22,128 Deferred income on shipments to distributors 8,167 9,307 Accrued expenses 9,567 32,771 Tax credit carryforwards 109,681 95,424 Deferred compensation plan 32,518 27,412 Low income housing and other investments 8,163 8,265 Other 17,628 11,538 Subtotal 207,774 206,845 Valuation allowance (72,520) (62,179) Total deferred tax assets 135,254 144,666Deferred tax liabilities: Unremitted foreign earnings (383,312) (335,522) Convertible debt (1,573) (2,349) Other (4,002) (1,699) Total deferred tax liabilities (388,887) (339,570)Total net deferred tax liabilities $(253,633) $(194,904)Long-term deferred tax assets of $64.4 million and $66.6 million as of April 1, 2017 and April 2, 2016 , respectively, were included in other assets on theconsolidated balance sheet.As of April 1, 2017 and April 2, 2016 , gross deferred tax assets were offset by valuation allowances of $72.5 million and $62.2 million , respectively, which wereassociated with state tax credit carryforwards.The aggregate changes in the balance of gross unrecognized tax benefits for fiscal 2017 and 2016 were as follows:(In thousands) 20172016Balance as of beginning of fiscal year $33,999$30,089Increases in tax positions for prior years —786Decreases in tax positions for prior years (10,078)(606)Increases in tax positions for current year 6,5564,757Settlements —(85)Lapses in statutes of limitation (40)(942)Balance as of end of fiscal year $30,437$33,999If the remaining balance of $30.4 million and $34.0 million of unrecognized tax benefits as of April 1, 2017 and April 2, 2016 , respectively, were realized in afuture period, it would result in a tax benefit of $8.5 million and $15.3 million , respectively, thereby reducing the effective tax rate.The Company's policy is to include interest and penalties related to income tax liabilities within the provision for income taxes on the consolidated statements ofincome. The balances of accrued interest and penalties recorded in the consolidated balance sheets and the amounts of interest and penalties included in theCompany's provisions for income taxes were not material for any period presented.The Company is no longer subject to U.S. federal audits by taxing authorities for years through fiscal 2011, U.S. state audits for years through fiscal 2010 and taxaudits in Ireland for years through fiscal 2012.The Company had been subject to examination by the IRS for fiscal 2012 through 2014. During the fourth quarter of fiscal 2016, the IRS completed its fieldworkand the case was forwarded to the Joint Committee on Taxation for review. On July 29, 2016, the69Table of ContentsCompany received written notification that the Joint Committee had completed its review and had taken no exception to the conclusions reached by the IRS.The Company believes its provision for unrecognized tax benefits is adequate for adjustments that may result from tax audits. However, the outcome of tax auditscannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, theCompany could be required to adjust its provision for income taxes in the period such resolution occurs. It is reasonably possible that changes to the Company'sunrecognized tax benefits could be significant in the next twelve months due to tax audit settlements and lapses of statutes of limitation. As a result of uncertaintiesregarding tax audits and their possible outcomes, an estimate of the range of increase or decrease that could occur in the next twelve months cannot be made at thistime.Note 15. Segment InformationXilinx designs, develops and markets programmable logic semiconductor devices and the related software design tools. The Company operates and tracks itsresults in one operating segment. Xilinx sells its products to OEMs and to electronic components distributors who resell these products to OEMs or subcontractmanufacturers. Geographic revenue information for fiscal 2017 , 2016 and 2015 reflects the geographic location of the distributors or OEMs who purchased the Company'sproducts. This may differ from the geographic location of the end customers. Long-lived assets include property, plant and equipment, which were based on thephysical location of the asset as of the end of each fiscal year.Net revenues by geographic region were as follows: Year Ended(In thousands)April 1, 2017 April 2, 2016 March 28, 2015North America: United States$606,150 $592,422 $625,434 Other (individual countries less than 10%)132,300 118,240 112,900 Total North America738,450 710,662 738,334 Asia Pacific: China597,310 520,562 573,007 Other (individual countries less than 10%)358,844 335,304 357,598 Total Asia Pacific956,154 855,866 930,605 Europe456,585 424,685 477,102Japan198,141 222,668 231,303 Worldwide total$2,349,330 $2,213,881 $2,377,344Net long-lived assets by country at fiscal year-ends were as follows:(In thousands)April 1, 2017 April 2, 2016 March 28, 2015United States$211,995 $191,400 $195,353Foreign: Ireland40,626 43,011 46,216 Singapore39,345 36,029 43,020 Other (individual countries less than 10%)11,859 12,906 16,449 Total foreign91,830 91,946 105,685 Worldwide total$303,825 $283,346 $301,03870Table of ContentsNote 16.Litigation Settlements and ContingenciesPatent LitigationOn November 7, 2014, the Company filed a complaint for declaratory judgment against Papst Licensing GmbH & Co., KG (Papst) in the U.S. District Court forthe Northern District of California (Xilinx, Inc. v. Papst Licensing GmbH & Co., KG, Case No. 3:14-CV-04963) (the California Action). On the same date, apatent infringement lawsuit was filed by Papst against the Company in the U.S. District Court for the District of Delaware (Papst Licensing GmbH & Co., KG v.Xilinx, Inc., Case No. 1:14-CV-01376) (the Delaware Action). Both the California Action and the Delaware Action pertain to the same two patents. In theDelaware Action, Papst seeks unspecified damages, interest and costs. On September 1, 2015, the Court in the Delaware Action granted the Company's motion totransfer the Delaware Action to the U.S. District Court for the Northern District of California (Papst Licensing GmbH & Co., KG v. Xilinx, Inc., Case No. 3:16-cv-00925-EDL). On June 9, 2016, the Court in the transferred Delaware Action granted the Company’s motion for judgment on the pleadings, determining that eachof the asserted claims is directed to a patent-ineligible abstract idea and dismissing Papst’s claims for infringement. On July 8, 2016, Papst filed a notice of appealfrom the judgment in favor of the Company. On April 12, 2017, the U.S. Court of Appeals for the Federal Circuit (Federal Circuit) affirmed the lower court’sdismissal. In the California Action, on July 9, 2015, the Court granted Papst's motion to dismiss for lack of personal jurisdiction, and the California Action wasdismissed. The Company appealed the decision, and, on February 15, 2017 the Federal Circuit reversed the lower court decision. On April 21, 2017, Papst grantedXilinx a covenant not to sue for infringement of the patents-in-suit and Xilinx voluntarily dismissed the California Action without prejudice. On April 24, 2017, theCalifornia Action was dismissed without prejudice. On July 17, 2014, a patent infringement lawsuit was filed by PLL Technologies, Inc. (PTI) against the Company in the U.S. District Court for the District ofDelaware (PLL Technologies, Inc. v. Xilinx, Inc., Case No. 1:14-CV-00945). On April 28, 2015, the United States Patent Trial and Appeal Board (PTAB) grantedXilinx's request for inter partes review (IPR) with respect to all claims in the litigation. On May 5, 2015, the Court ordered the litigation be stayed pending finalresolution of the IPR. On April 18, 2016, the PTAB issued a final written decision in which all of the asserted claims were found unpatentable. On June 14, 2016,PTI filed notice of appeal from the final written decision. The lawsuit pertains to one patent and PTI seeks unspecified damages, interest and costs. The Companyis unable to estimate its range of possible loss, if any, in this matter at this time.On February 1, 2017, a patent infringement lawsuit was filed by Godo Kaisha IP Bridge 1 (IP Bridge) against the Company in the U.S. District Court for theEastern District of Texas (Godo Kaisha IP Bridge 1 v. Xilinx, Inc., Case. No. 2:17-cv-00100). The lawsuit pertains to two patents and IP Bridge seeks unspecifieddamages, interest, attorneys’ fees, costs, and a permanent injunction or an on-going royalty. On the same date, the Company filed a complaint for declaratoryjudgment of patent non-infringement against IP Bridge in the U.S. District Court for the Northern District of California (Xilinx, Inc. v. Godo Kaisha IP Bridge 1,Case No. 5:17-cv-00509). The complaint filed by the Company pertains to twelve patents and sought judgment of non-infringement by Xilinx, as well as costs,expenses and attorneys’ fees. The Company is unable to estimate its range of possible loss, if any, in these matters at this time.On March 17, 2017, a patent infringement lawsuit was filed by Anza Technology, Inc. (Anza) against the Company in the U.S. District Court for the District ofColorado (Anza Technology, Inc. v. Xilinx, Inc., Case No. 1:17-cv-00687). The lawsuit pertains to three patents and Anza seeks unspecified damages, attorneyfees, interest, costs, and expenses. The Company is unable to estimate its range of possible loss, if any, in this matter at this time.The Company intends to continue to protect and defend our IP vigorously.Other MattersOn June 11, 2015, John P. Neblett, as Chapter 7 Trustee of Valley Forge Composite Technologies, Inc., filed a complaint against Xilinx and others in the U.S.Bankruptcy Court for the Middle District of Pennsylvania (Bankruptcy No. 1:13-bk-05253-JJT). The complaint alleges causes of actions against Xilinx fornegligence and civil conspiracy relating to alleged violations of U.S. export laws. It seeks at least $50.0 million in damages, together with punitive damages, fromthe defendants. On September 21, 2015, the action was withdrawn from the U.S. Bankruptcy Court for the Middle District of Pennsylvania and transferred to theU.S. District Court for the Eastern District of Kentucky. On November 2, 2015, Xilinx, along with other defendants, filed a motion to dismiss the complaint. OnNovember 3, 2015, Xilinx filed a motion for sanctions pursuant to Federal Rule of Civil Procedure 11. On June 27, 2016, the Court denied both motions. TheCompany intends to vigorously defend the case and is unable to estimate its range of possible loss, if any, in this matter at this time.On April 4, 2017, Mountjoy Chilton Medley, LLP filed a third-party complaint against Xilinx and others in the United States District Court for the Middle Districtof Pennsylvania (Case No. 4:15-cv-01622-MWB). The complaint alleges that to the extent71Table of Contentsthe third-party plaintiff is found liable, that the actions or inactions of Xilinx and others entitles the third-party plaintiff to apportionment of damages based on theallegations against Xilinx in the case filed by the Chapter 7 Trustee of Valley Forge Composite Technologies, Inc. Xilinx has not yet responded to the third-partycomplaint. The Company intends to vigorously defend the case and is unable to estimate its range of possible loss, if any, in this matter at this time.From time to time, the Company is involved in various disputes and litigation matters that arise in the ordinary course of its business. These include disputes andlawsuits related to intellectual property, mergers and acquisitions, licensing, contract law, tax, regulatory, distribution arrangements, employee relations and othermatters. Periodically, the Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from any claim or legalproceeding is considered probable and a range of possible losses can be estimated, the Company accrues a liability for the estimated loss. Legal proceedings aresubject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the best information available at thetime. As additional information becomes available, the Company continues to reassess the potential liability related to pending claims and litigation and may reviseestimates.Note 17.Goodwill and Acquisition-Related IntangiblesAs of April 1, 2017 and April 2, 2016 , the gross and net amounts of goodwill and of acquisition-related intangibles for all acquisitions were as follows: Weighted-Average(In thousands)2017 2016 Amortization LifeGoodwill$161,287 $159,296 Core technology, gross79,981 77,640 Less accumulated amortization(76,512) (71,472) Core technology, net3,469 6,168 5.6 yearsOther intangibles, gross46,766 46,606 Less accumulated amortization(46,659) (46,572) Other intangibles, net107 34 2.6 yearsTotal acquisition-related intangibles, gross126,747 124,246 Less accumulated amortization(123,171) (118,044) Total acquisition-related intangibles, net$3,576 $6,202 Amortization expense for acquisition-related intangibles for fiscal 2017 , 2016 and 2015 were $5.1 million , $6.6 million and $9.5 million , respectively. Based onthe carrying value of acquisition-related intangibles recorded as of April 1, 2017 , and assuming no subsequent impairment of the underlying assets, the annualamortization expense for acquisition-related intangibles is expected to be as follows: Fiscal(In thousands)2018$1,9232019561202046820214682022156Total$3,57672Table of ContentsNote 18. Employee Benefit PlansXilinx offers various retirement benefit plans for U.S. and non-U.S. employees. Total contributions to these plans were $12.9 million , $11.0 million and $13.0million in fiscal 2017 , 2016 and 2015 , respectively. For employees in the U.S., Xilinx instituted a Company matching program pursuant to which the Companywill match contributions to Xilinx's 401(k) Plan (the 401(k) Plan) based on the amount of salary deferral contributions the participant makes to the 401(k) Plan.Xilinx will match up to 50% of the first 8% of an employee's compensation that the employee contributed to their 401(k) account. The maximum Companycontribution per year is $4,500 per employee. As permitted under Section 401(k) of the Internal Revenue Code, the 401(k) Plan allows tax deferred salarydeductions for eligible employees. The Compensation Committee of the Board of Directors administers the 401(k) Plan. Participants in the 401(k) Plan may makesalary deferrals of up to 25% of the eligible annual salary, limited by the maximum dollar amount allowed by the Internal Revenue Code. Participants who havereached the age of 50 before the close of the plan year may be eligible to make catch-up salary deferral contributions, up to 25% of eligible annual salary, limitedby the maximum dollar amount allowed by the Internal Revenue Code.The Company allows its U.S.-based officers, director-level employees and its board members to defer a portion of their compensation under the DeferredCompensation Plan (the Plan). The Compensation Committee administers the Plan. As of April 1, 2017 , there were more than 176 participants in the Plan whoself-direct their contributions into investment options offered by the Plan. The Plan does not allow Plan participants to invest directly in Xilinx's stock. In the eventXilinx becomes insolvent, Plan assets are subject to the claims of the Company's general creditors. There are no Plan provisions that provide for any guarantees orminimum return on investments. As of April 1, 2017 , Plan assets of $81.1 million were included in other assets within the consolidated balance sheet andobligations of $88.1 million were included in accrued payroll and related liabilities. As of April 2, 2016 , Plan assets were $67.0 million and obligations were $74.2million .Note 19. Business CombinationDuring the second quarter of fiscal 2017, the Company completed the acquisition of Auviz Systems Inc., an independent software vendor that acceleratesalgorithms for data center and embedded devices. This acquisition aligns with the Company's strategy for accelerating vertical market growth and meets theincreasing demand from customers for data libraries. This acquisition was accounted for under the purchase method of accounting. The aggregate financial impactof this acquisition was not material to the Company.Note 20. Restructuring ChargesDuring the fourth quarter of fiscal 2015, the Company announced restructuring measures designed to realign resources and drive overall operating efficiencies.These measures impacted approximately 120 positions, or 3% of the Company's global workforce, in various geographies and functions worldwide. The Companyrecorded total restructuring charges of $24.5 million in the fourth quarter of fiscal 2015, primarily related to severance pay expenses (which were paid in full as ofthe end of fiscal 2017) and write-offs of acquisition-related intangibles.Note 21. Subsequent EventsOn April 25, 2017, the Company's Board of Directors declared a cash dividend of $0.35 per common share for the first quarter of fiscal 2018. The dividend ispayable on June 1, 2017 to stockholders of record as of May 17, 2017.73Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMThe Board of Directors and StockholdersXilinx, Inc.We have audited the accompanying consolidated balance sheets of Xilinx, Inc. as of April 1, 2017 and April 2, 2016 , and the related consolidated statements ofincome, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended April 1, 2017 . Our audits also included thefinancial statement schedule listed in the Index at Part IV, Item 15(a)(2). These financial statements and schedule are the responsibility of the Company'smanagement. Our responsibility is to express an opinion on these financial statements and schedule based on our audits.We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weplan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining,on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used andsignificant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basisfor our opinion.In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Xilinx, Inc. at April 1, 2017and April 2, 2016 , and the consolidated results of its operations and its cash flows for each of the three years in the period ended April 1, 2017 , in conformity withU.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financialstatements taken as a whole, presents fairly in all material respects the information set forth therein.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Xilinx, Inc.'s internal control overfinancial reporting as of April 1, 2017 , based on criteria established in Internal Control—Integrated Framework issued by the Committee of SponsoringOrganizations of the Treadway Commission (2013 Framework) and our report dated May 15, 2017 expressed an unqualified opinion thereon./s/ ERNST & YOUNG LLPSan Jose, CaliforniaMay 15, 201774Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMThe Board of Directors and StockholdersXilinx, Inc.We have audited Xilinx, Inc.'s internal control over financial reporting as of April 1, 2017 , based on criteria established in Internal Control—IntegratedFramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). Xilinx, Inc.'s managementis responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financialreporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on thecompany's internal control over financial reporting based on our audit.We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weplan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluatingthe design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in thecircumstances. We believe that our audit provides a reasonable basis for our opinion.A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financialreporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect thetransactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation offinancial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only inaccordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection ofunauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation ofeffectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance withthe policies or procedures may deteriorate.In our opinion, Xilinx, Inc. maintained, in all material respects, effective internal control over financial reporting as of April 1, 2017 , based on the COSO criteria .We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets ofXilinx, Inc. as of April 1, 2017 and April 2, 2016 , and the related consolidated statements of income, comprehensive income, stockholders' equity, and cash flowsfor each of the three years in the period ended April 1, 2017 of Xilinx, Inc. and our report dated May 15, 2017 expressed an unqualified opinion thereon./s/ ERNST & YOUNG LLPSan Jose, CaliforniaMay 15, 201775Table of ContentsXILINX, INC.SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS(In thousands) Description Beginning of Year Additions Deductions End of YearFor the year ended March 28, 2015: Allowance for doubtful accounts $3,355 $— $2 $3,353Allowance for deferred tax assets $43,004 $10,623 $1,075 $52,552For the year ended April 2, 2016: Allowance for doubtful accounts $3,353 $— $12 $3,341Allowance for deferred tax assets $52,552 $9,834 $207 $62,179For the year ended April 1, 2017: Allowance for doubtful accounts $3,341 $— $141 $3,200Allowance for deferred tax assets $62,179 $10,341 $— $72,520Supplementary Financial DataQuarterly Data (Unaudited)(In thousands, except per share amounts) Year ended April 1, 2017 (1) First Quarter Second Quarter Third Quarter Fourth QuarterNet revenues $574,981 $579,209 $585,688 $609,452Gross margin 406,684 403,334 407,455 423,641Income before income taxes 181,618 175,662 162,580 171,220Net income 163,049 164,192 141,846 153,425Net income per common share: (2) Basic $0.64 $0.65 $0.57 $0.62Diluted $0.61 $0.61 $0.52 $0.57Shares used in per share calculations: Basic 252,901 253,466 250,982 249,014Diluted 266,206 270,373 270,781 267,157Cash dividends declared per common share $0.33 $0.33 $0.33 $0.33(1)Xilinx uses a 52 - to 53 -week fiscal year ending on the Saturday nearest March 31. Fiscal 2017 was a 52-week year and each quarter was a 13 -week quarter.(2)Net income per common share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per common share information may not equal the annualnet income per common share.76Table of Contents(In thousands, except per share amounts) Year ended April 2, 2016 (1) First Quarter Second Quarter Third Quarter Fourth QuarterNet revenues $549,008 $527,572 $566,235 $571,066Gross margin 389,054 369,932 387,721 395,267Income before income taxes 167,967 143,969 155,051 169,838Net income 147,715 127,298 130,819 145,035Net income per common share: (2) Basic $0.57 $0.49 $0.51 $0.57Diluted $0.55 $0.48 $0.49 $0.54Shares used in per share calculations: Basic 258,021 257,640 256,450 255,467Diluted 270,730 266,046 269,611 268,462Cash dividends declared per common share $0.31 $0.31 $0.31 $0.31(1)Xilinx uses a 52- to 53-week fiscal year ending on the Saturday nearest March 31. Fiscal 2016 was a 53-week year and each quarter was a 13-week quarter except the third quarter, whichwas a 14-week quarter.(2)Net income per common share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per common share information may not equal the annualnet income per common share.ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURENot applicable.77Table of ContentsITEM 9A.CONTROLS AND PROCEDURESEvaluation of Disclosure Controls and ProceduresAn evaluation was carried out, under the supervision of and with the participation of the Company's management, including our CEO and CFO, of theeffectiveness of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of theperiod covered by this report. Based upon this evaluation, our CEO and CFO have concluded that, as of the end of the period covered by this Form 10-K, theCompany's disclosure controls and procedures are effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reportsis recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and is accumulated and communicated to ourmanagement, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.Changes in Internal Control Over Financial ReportingThere were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscalquarter ended April 1, 2017 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.Management's Report on Internal Control Over Financial ReportingManagement is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) underthe Exchange Act) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposesin accordance with U.S. generally accepted accounting principles. This system of internal control is designed to provide reasonable assurance that assets aresafeguarded and transactions are properly recorded and executed in accordance with management's authorization. The design, monitoring and revision of thesystem of internal control over financial reporting involve, among other things, management's judgments with respect to the relative cost and expected benefits ofspecific control measures. The effectiveness of the system of internal control over financial reporting is supported by the selection, retention and training ofqualified personnel and an organizational structure that provides an appropriate division of responsibility and formalized procedures. The system of internal controlis periodically reviewed and modified in response to changing conditions.Because of its inherent limitations, no matter how well designed, a system of internal control over financial reporting can provide only reasonable assurance andmay not prevent or detect all misstatements or all fraud. Further, because of changes in conditions, the effectiveness of internal control over financial reporting mayvary over time. Our system contains self-monitoring mechanisms, and actions are taken to correct deficiencies as they are identified.Management has used the criteria established in the Report " Internal Control — Integrated Framework" issued by the Committee of Sponsoring Organizations ofthe Treadway Commission (COSO) (2013 Framework) to evaluate the effectiveness of our internal control over financial reporting. Based on this evaluation,management has concluded that the Company's internal control over financial reporting was effective as of April 1, 2017 .The effectiveness of the Company's internal control over financial reporting as of April 1, 2017 has been audited by Ernst & Young LLP, an independent registeredpublic accounting firm, as stated in their report which is included in Part II, Item 8 of this Form 10-K.ITEM 9B.OTHER INFORMATION None.78Table of ContentsPART IIICertain information required by Part III is omitted from this Report in that the Registrant will file a definitive proxy statement pursuant to Regulation 14A underthe Exchange Act (the Proxy Statement) not later than 120 days after the end of the fiscal year covered by this Report, and certain information included therein isincorporated herein by reference. Only those sections of the Proxy Statement that specifically address the items set forth herein are incorporated by reference.ITEM 10.DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCEThe information required by this item pursuant to Item 401(b), (d), (e) and (f) of Regulation S-K concerning the Company's executive officers is incorporatedherein by reference to Item 1. "Business — Executive Officers of the Registrant" within this Form 10-K.The information required by this item pursuant to Item 401(a), (d), (e), and (f) and Items 406 and 407 of Regulation S-K concerning the Company's directors, thecode of ethics and corporate governance matters is incorporated herein by reference to the sections entitled "Proposal One-Election of Directors" "BoardIndependence" and "Corporate Governance Principles" in our Proxy Statement.The information required by this item regarding delinquent filers pursuant to Item 405 of Regulation S-K is incorporated herein by reference to the section entitled"Section 16(a) Beneficial Ownership Reporting Compliance" in our Proxy Statement.Our codes of conduct and ethics and significant corporate governance principles are available on the investor relations page of our website atwww.investor.xilinx.com. Our code of conduct applies to our directors and employees, including our CEO, CFO and principal accounting personnel. In addition,our Board of Directors has adopted a code of ethics that pertains specifically to the Board of Directors. Printed copies of these documents are also available tostockholders without charge upon written request directed to Corporate Secretary, Xilinx, Inc., 2100 Logic Drive, San Jose CA 95124.ITEM 11.EXECUTIVE COMPENSATIONThe information required by this item pursuant to Item 402 of Regulation S-K concerning executive compensation is incorporated herein by reference to thesections entitled "Compensation of Directors" and "Executive Compensation" in our Proxy Statement.The information required by this item pursuant to Item 407(e)(4) of Regulation S-K is incorporated herein by reference to the section entitled "CompensationCommittee Interlocks and Insider Participation" in our Proxy Statement.The information required by this item pursuant to Item 407(e)(5) of Regulation S-K is incorporated herein by reference to the section entitled "CompensationCommittee Report" in our Proxy Statement.ITEM 12.SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERMATTERSThe information required by this item pursuant to Item 403 of Regulation S-K is incorporated herein by reference to the section entitled "Security Ownership ofCertain Beneficial Owners and Management" in our Proxy Statement. The information required by Item 201(d) of Regulation S-K is set forth below.79Table of ContentsEquity Compensation Plan InformationThe table below sets forth certain information as of fiscal year ended April 1, 2017 about the Company's common stock that may be issued upon the exercise ofoptions, RSUs, warrants and rights under all of our existing equity compensation plans including the ESPP:(Shares in thousands) A B C Plan Category Number of Securitiesto be Issued upon Exercise ofOutstanding Options, Warrants and Rights Weighted-average Exercise Price of Outstanding Options, Warrants and Rights Number of SecuritiesRemaining Available for FutureIssuance under Equity CompensationPlans (excluding securities reflected inColumn A) Equity Compensation Plans Approved by Security Holders 2007 Equity Plan 7,121(1) $29.49(2) 12,459(3) Employee Stock Purchase Plan N/A N/A 8,233 Total-Approved Plans 7,121 $29.49 20,692 Equity Compensation Plans NOT Approved by Security Holders — $— — Total-All Plans 7,121 $29.49 20,692 (1)Includes approximately 7.0 million shares issuable upon vesting of RSUs that the Company granted under the 2007 Equity Plan.(2)The weighted-average exercise price does not take into account shares issuable upon vesting of outstanding RSUs, which have no exercise price.(3)On July 26, 2006, the stockholders approved the adoption of the 2007 Equity Plan and authorized 10.0 million shares to be reserved for issuance thereunder. The 2007Equity Plan, which became effective on January 1, 2007, replaced both the Company's 1997 Stock Plan (which expired on May 8, 2007) and the Supplemental StockOption Plan. On August 9, 2007, August 14, 2008, August 12, 2009, August 11, 2010, August 10, 2011, August 8, 2012, August 14, 2013, August 13, 2014 and August 10,2016, our stockholders authorized the reserve of an additional 5.0 million shares, 4.0 million shares, 5.0 million shares, 4.5 million shares, 4.5 million shares, 3.5 millionshares, 2.0 million shares, 3.0 million shares and 2.5 million shares respectively. All of the shares reserved for issuance under the 2007 Equity Plan may be granted as stockoptions, stock appreciation rights, restricted stock or RSUs.ITEM 13.CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCEThe information required by this item concerning related party transactions pursuant to Item 404 of Regulation S-K is incorporated herein by reference to thesection entitled "Related Transactions" in our Proxy Statement.The information required by this item concerning director independence pursuant to Item 407(a) of Regulation S-K is incorporated herein by reference to thesection entitled "Board Independence" in our Proxy Statement.ITEM 14.PRINCIPAL ACCOUNTING FEES AND SERVICESThe information required by this Item is incorporated herein by reference to the sections entitled "Proposal Three - Ratification of Appointment of ExternalAuditors" and "Fees Paid to Ernst & Young LLP" in our Proxy Statement.80Table of ContentsPART IVITEM 15.EXHIBITS AND FINANCIAL STATEMENT SCHEDULES (a)(1)The financial statements required by Item 15(a) are included in Item 8 of this Annual Report on Form 10-K. (2)The financial statement schedule required by Item 15(a) (Schedule II, Valuation and Qualifying Accounts) is included in Item 8 of this AnnualReport on Form 10-K. Schedules not filed have been omitted because they are not applicable, are not required or the information required to be set forth therein isincluded in the financial statements or notes thereto. (3)The exhibits listed below in (b) are filed or incorporated by reference as part of this Annual report on Form 10-K. (b)ExhibitsEXHIBIT LIST Incorporated by ReferenceExhibit No Exhibit Title Form File No. Exhibit FilingDate FiledHerewith3.1 Restated Certificate of Incorporation, as amended todate 10-K 000-18548 3.1 5/30/2007 3.2 Bylaws of the Company, as amended and restated asof March 31, 2017 8-K 000-18548 3.2 4/3/2017 4.1 Indenture, dated as of March 5, 2007, between theCompany as Issuer and The Bank of New York TrustCompany, N. A. as Trustee 10-K 000-18548 4.1 5/30/2007 4.2 Indenture, dated as of June 9, 2010, between theCompany as Issuer and The Bank of New YorkMellon Trust Company, N.A. as Trustee 10-Q 000-18548 4.2 8/9/2010 4.3 Indenture, dated as of June 14, 2007, between theCompany as Issuer and The Bank of New MellonTrust Company, N.A. as Trustee S-3 333-143769 4.4 6/15/2007 4.4 Supplemental Indenture, dated as of March 12, 2014,between the Company as Issuer and The Bank ofNew York Mellon Trust Company, N.A. as Trustee 8-K 000-18548 4.01 3/13/2014 10.1*Amended and Restated 1990 Employee QualifiedStock Purchase Plan DEF14A 000-18548 Appendix A 5/30/2014 10.2*1997 Stock Plan and Form of Stock OptionAgreement S-8 333-127318 4.2 8/9/2005 10.3 P*Form of Indemnification Agreement between theCompany and its officers and directors S-1 333-34568 10.17 4/27/1990 10.4*2007 Equity Incentive Plan DEF14A 000-18548 Appendix A 6/1/2016 10.5*Form of Stock Option Agreement under 2007 EquityIncentive Plan 10-K 000-18548 10.24 5/30/2007 10.6*Form of Restricted Stock Unit Agreement under2007 Equity Incentive Plan 10-K 000-18548 10.25 5/30/2007 10.7*Form of Performance-Based Restricted Stock UnitAgreement under 2007 Equity Incentive Plan 8-K 000-18548 99.1 7/5/2007 10.8*Restricted Stock Issuance Agreement 10-Q 000-18548 10.15 8/9/2011 81Table of Contents Incorporated by ReferenceExhibit No Exhibit Title Form File No. Exhibit FilingDate FiledHerewith10.9*Performance Based Restricted Stock IssuanceAgreement 10-Q 000-18548 10.16 8/9/2011 10.11+Master Distributor Agreement, dated as of March 12,2014, between the Company and Avnet, Inc. 10-K 000-18548 10.18 5/16/2014 10.12*Summary of Fiscal Year 2018 Executive IncentivePlan 8-K 000-18548 N/A 5/12/2017 10.13*Form of Change in Control Agreement 8-K 000-18548 10.2 1/20/2016 10.14*Amendment and Restatement of EmploymentAgreement with Moshe Gavrielov 8-K 000-18548 10.1 4/12/2017 10.15 Amendment, dated as of February 20, 2015, toMaster Distributor Agreement between the Companyand Avnet, Inc. X10.16+Amendment, dated as of March 28, 2016, to MasterDistributor Agreement between the Company andAvnet, Inc. X10.17+Addendum, dated as of March 1, 2017, to MasterDistributor Agreement between the Company andAvnet, Inc. X10.18 Amendment, dated as of March 1, 2017, to MasterDistributor Agreement between the Company andAvnet, Inc . X21.1 Subsidiaries of the Company X23.1 Consent of Independent Registered PublicAccounting Firm X24.1 Power of Attorney (included in the signature page) X31.1 Certification of Chief Executive Officer pursuant toSection 302 of the Sarbanes-Oxley Act of 2002 X31.2 Certification of Chief Financial Officer pursuant toSection 302 of the Sarbanes-Oxley Act of 2002 X32.1 Certification of Chief Executive Officer pursuant toSection 906 of the Sarbanes-Oxley Act of 2002 X32.2 Certification of Chief Financial Officer pursuant toSection 906 of the Sarbanes-Oxley Act of 2002 X101.INS XBRL Instance Document X101.SCH XBRL Taxonomy Extension Schema Document X101.CAL XBRL Taxonomy Extension Calculation LinkbaseDocument X101.LAB XBRL Taxonomy Extension Label LinkbaseDocument X101.PRE XBRL Taxonomy Extension Presentation LinkbaseDocument X101.DEF XBRL Taxonomy Extension Definition LinkbaseDocument X82Table of Contents+ Portions of this Exhibit have been omitted pursuant to a request for confidential treatment.* Management contract or compensatory plan or arrangement required to be filed as an exhibit to the Company's Annual Report on Form 10-K pursuant toItem 15(b) herein.P Filed on Paper83Table of ContentsSIGNATURESPursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf bythe undersigned, thereunto duly authorized.Date: May 15, 2017 XILINX, INC. By: /s/ Moshe N. Gavrielov Moshe N. Gavrielov, President and Chief Executive Officer POWER OF ATTORNEYKNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Moshe N. Gavrielov and Lorenzo A.Flores, jointly and severally, his/her attorneys-in-fact, each with the power of substitution, for him/her in any and all capacities, to sign any amendments to thisAnnual Report on Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and ExchangeCommission, hereby ratifying and confirming all that each of said attorneys-in-fact, or his/her substitute or substitutes, may do or cause to be done by virtue hereof.Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report on Form 10-K has been signed below by the following persons on behalfof the Registrant in the capacities and on the dates indicated.Signature Title Date /s/ Moshe N. Gavrielov President and Chief Executive Officer(Principal Executive Officer) and Director May 15, 2017 (Moshe N. Gavrielov) /s/ Lorenzo A. Flores Senior Vice President and Chief Financial Officer(Principal Accounting and Financial Officer) May 15, 2017(Lorenzo A. Flores) /s/ Dennis Segers Chairman of the Board of Directors May 15, 2017(Dennis Segers) /s/ Saar Gillai Director May 15, 2017(Saar Gillai) /s/ Ronald S. Jankov Director May 15, 2017(Ronald S. Jankov) /s/ Thomas H. Lee Director May 15, 2017(Thomas H. Lee) /s/ J. Michael Patterson Director May 15, 2017(J. Michael Patterson) /s/ Albert A. Pimentel Director May 11, 2017(Albert A. Pimentel) /s/ Marshall C. Turner Director May 15, 2017(Marshall C. Turner) /s/ Elizabeth W. Vanderslice Director May 15, 2017(Elizabeth W. Vanderslice) 84Exhibit 10.15AMENDMENT TO DISTRIBUTOR AGREEMENTThis Amendment (“Amendment”) to the Master Distributor Agreement entered into on March 12, 2014 (“Agreement”) is made pursuant toSection 27.4 of the Agreement and is effective as of the date of the last signature below (the “Effective Date”) by and between Avnet Inc., aNew York corporation, doing business through its business group, Electronics Marketing, with offices located at 2211 South 47th Street,Phoenix, AZ 85034 (“Distributor”) and Xilinx, Inc., a Delaware corporation, having offices at 2100 Logic Drive, San Jose, CA 95124(“Xilinx”). This Amendment modifies the terms of the Agreement as follows:Exhibit A attached hereto, “U.S. Federal Government Contracting, Commercial Item Status & Exceptions for Subcontracts,” is herebyincorporated into the Agreement.This Amendment shall be coterminous with the Agreement.Unless specifically addressed by this Amendment, all other terms of the Agreement remain unchanged. All capitalized terms contained hereinhave the same meaning as the terms defined in the Agreement unless specifically modified in this Amendment.XILINX, INC. AVNET, INC.Signature: /s/ Chris Henry Signature: /s/ David WardName: Chris Henry Name: David WardTitle: Vice President Title: Group V.P., Finance, EMDate: 2/13/2015 Date: 2/20/2015Exhibit AU.S. Federal Government Contracting, Commercial Item Status & Exceptions for SubcontractsTHIS PROPOSAL, and any resulting contract, is for the provision of “Commercial Items” as that term is defined at FAR 2.101. TheCommercial Items are Field Programmable Gate Arrays (“FPGAs”) and/or commercial computer software (as defined below) that are usedby the general public or by non-governmental entities for purposes other than governmental purposes, and have been offered for sale, lease,or license to the general public in substantial quantities based on established catalog or market prices. The Commercial Items further includecommercial design services related to the design of programs that run on these FPGAs and are of a type offered and sold competitively insubstantial quantities in the commercial marketplace based on established catalog or market prices for specific tasks performed or specificoutcomes to be achieved and under standard commercial terms and conditions. Further, this is a firm-fixed-price Proposal, and, pursuant toFAR 12.214, Cost Accounting Standards (CAS) do not apply to firm-fixed-price contracts and subcontracts for the acquisition of CommercialItems.Based on the above, Xilinx hereby excludes any clause requiring compliance with the Cost Accounting Standards and further claimsexemption from all FAR and DFARS clauses with the exception of the following clauses that are required to be flowed down tosubcontractors of Commercial Items:FAR Clauses : Pursuant to FAR 52.244-6 (Dec 2010), “Subcontracts for Commercial Items,” Xilinx agrees to the inclusion of the followingclauses in a subcontract for Commercial Items with a prime contractor of the U.S. Government:52.203-13Contractor Code of Business Ethics and Conduct (Apr 2010) [*Applicable to subcontracts over $5M and a performance period of more than 120days]52.203-15Whistleblower Protections Under the American Recovery and Reinvestment Act of 2009 (Jun 2010) [*Applicable to subcontracts funded underthe Recovery Act]52.219-08Utilization of Small, Small Disadvantaged, and Women-Owned Small Business Concerns (Jan 2011) [* Applicable to subcontracts that offerfurther subcontracting opportunities.]52.222-26Equal Opportunity (Mar 2007)52.222-35Equal Opportunity for Special Disabled Veterans, Veterans of the Vietnam Era, and Other Eligible Veterans (Sep 2010)52.222-36Affirmative Action for Workers with Disabilities (Oct 2010)52.222-50Combating Trafficking in Persons (Feb 2009)52.244-06Subcontracts for Commercial Items and Commercial Components (Dec 2010) [*To the extent practicable, Xilinx will incorporate in contractswith subcontractors of commercial items to be supplied under this contract those clauses set forth in 52.244-06]52.247-64Preference for Privately Owned U.S. Flag Commercial Vessels (Feb 2006)DFARS Clauses : Pursuant to DFARS 252.244-7000 (Nov 2010), “Subcontracts for Commercial Items and Commercial Components (DODContract),” Xilinx agrees to the inclusion of the following clauses in a subcontract for Commercial Items under a prime contract with theDefense Department of the U.S. Government:252.244-7000 Subcontracts for Commercial Items and Commercial Components (Nov 2010)252.246-7003 Notification of Potential Safety Issues (Jan 2007)252.247-7023 Transportation of Supplies by Sea (May 2002)252.247-7024 Notification of Transportation of Supplies by Sea (Mar 2000)U.S. Governmental RightsFor purposes of this Proposal, “commercial computer software” means software developed or regularly used for nongovernmental purposeswhich (i) has been sold, leased, or licensed to the public, (ii) has been offered for sale, lease or license to the public; (iii) has not been offered,sold, leased, or licensed to the public but will be available for commercial sale, lease, or license in time to satisfy the delivery requirements ofthe Agreement; or (iv) satisfied a criterion expressed in (i), (ii), or (iii) of this clause and would require only minor modification to meet therequirements of the Agreement. If acquired by or on behalf of a civilian agency, the U.S. Government acquires this commercial computersoftware and/or commercial computer software documentation and other technical data subject to the terms of the Agreement as specified in48 C.F.R. 12.212 (Computer Software) and 12.211 (Technical Data) of the Federal Acquisition Regulation (“FAR”) and its successors. Ifacquired by or on behalf of any agency within the Department of Defense (“DOD”), the U.S. Government acquires this commercial computersoftware and/or commercial computer software documentation subject to the terms of the Agreement as specified in 48 C.F.R. 227.7202-3 ofthe DOD FAR Supplement (“DFARS”) and its successors. This U.S. Government Rights clause is in lieu of, and supersedes, any other FAR,DFARS, or other clause or provision that addresses Government rights in computer software or technical data under this Proposal.Exhibit 10.16CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILEDSEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 UNDER THE SECURITIESEXCHANGE ACT OF 1934, AS AMENDED.AMENDMENTTHIS AMENDMENT (the “ Amendment ”), effective as of the date last signed below, amends that certain MASTERDISTRIBUTOR AGREEMENT effective as of March 12, 2014, as previously amended (the “ Agreement ”), by andbetween Xilinx, Inc., a Delaware Corporation, having offices at 2100 Logic Drive, San Jose, CA 95124, Xilinx Ireland, acompany incorporated under the laws of Ireland and having its registered office at One Logic Drive, Citywest BusinessCampus, Saggart, Co. Dublin and Xilinx Sales International Pte. Ltd., a company organized and existing under the lawsof Singapore, having its principal office at Changi Business Park Vista, Singapore 486051 (collectively and individually, “Xilinx ”), and Avnet, Inc., a New York corporation, having its principal office at 2211 South 47th Street, Phoenix, AZ85034 (“ Distributor ”).A.    The parties agree to amend and restate Section 13.3 of the Agreement as follows:13.3Once per quarter, Distributor may scrap particular Product, such as small quantity returns not requiring aRMA or Products with bent leads, with an aggregate Price no greater than [***] percent [***] of the dollarsinvoiced by Xilinx to Distributor (or such percentage identified in the Guidelines, if different) per such threemonths. Distributor shall not include as “scrap” any Product that is designated as NCNR, [***]. Avnet mustprovide a certificate of destruction for all scrapped Product.B.    Except as set forth above, the Agreement remains in full force and effect.IN WITNESS WHEREOF , the parties hereto have duly executed this Amendment on the date(s) indicated below.XILINX, INC.By: /s/ Chris HenryXILINX IRELANDBy: /s/ Kevin CooneyName: Chris HenryName: Kevin CooneyTitle: Corp. VP, Channel SalesTitle: Managing DirectorDate: 1-6-16Date: 3/28/2016XILINX SALES INTERNATIONAL PTE. LTD.AVNET, INC.By: /s/ Oren ScottenBy: /s/ Gerry FayName: Oren ScottenName: Gerry FayTitle: Site DirectorTitle: President, Avnet EM GlobalDate: 3/28/2016Date: 12/17/15Exhibit 10.17CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY [***], HAS BEEN OMITTED AND FILEDSEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 UNDER THE SECURITIESEXCHANGE ACT OF 1934, AS AMENDED.ADDENDUMTHIS ADDENDUM (the “Addendum”) to the Master Distributor Agreement effective as of March 12, 2014 (the “Agreement”) is made by and betweenAvnet, Inc., a New York corporation, having offices at 2211 South 47 th Street, Phoenix, AZ 85034 (“Distributor”) and Xilinx, Inc. , a Delawarecorporation, having offices at 2100 Logic Drive, San Jose, CA 95124, Xilinx Ireland Unlimited Company (formerly known as Xilinx Ireland) , acompany incorporated under the laws of Ireland and having its registered office at 2020 Bianconi Avenue, Citywest Business Campus, Saggart, Co.Dublin and Xilinx Sales International Pte. Ltd. , a company organized and existing under the laws of Singapore, having its principal office at 5 ChangiBusiness Park Vista, Singapore 486040 (collectively and individually “Xilinx”), to be effective as of March 1, 2017 .The parties agree as follows:In the event of a conflict between this Addendum and the Agreement, the terms and conditions of this Addendum have precedence over theAgreement with respect to the activities of the PF Participating Companies. Capitalized terms not otherwise defined herein shall have the meaningset forth in the Agreement. Except as specifically modified by this Addendum, all terms and conditions of the Agreement remain in full force andeffect.1)Subject to the terms and conditions of the Agreement, Xilinx hereby adds Premier Farnell UK Limited (“PF”) and its affiliates (collectively withPF, “PF Participating Companies”), all Subsidiaries of Distributor, to Exhibit A of the Agreement, “Schedule of Authorized Electronics MarketingLocations”. The PF Participating Companies that are added as authorized Electronics Marketing selling locations under this Agreement are setout in Appendix 1 of this Addendum. Additional PF Participating Companies may be added to this Agreement by PF.2)Due to the unique business model of PF, the below guidelines serve to augment the business model between Xilinx and Distributor:a.PF Participating Companies will purchase Products (as defined in the Agreement) solely and directly from Xilinx at Distributor Cost (asdefined in the Agreement).b.Shipping terms are CPT (PF Maybrook Warehouse UK) (INCOTERMS 2010).c.PF Participating Companies will store and handle Xilinx product in accordance with the audit material provided by Xilinx, as may beupdated from time to time .d.PF Participating Companies will provide a weekly point of sale report (“POS”) to Xilinx. The POS will include the following for each salestransaction to cover all PF Participating Companies:i.Customer Nameii.Ship to Locationiii. Address line 1iv. Xilinx Device / Part (To include Development Systems)v.Quantity of Devices / Parts (To include Development Systems)vi. PF Participating Company Cost (Distribution Book Cost)vii. PF Participating Company Resale Price to Customer (Prices must be provided in currencies that Xilinx can manage (in itsdata systems); Xilinx Finance team will provide the list of currencies, upon request)e.Xilinx may audit the records of the PF Participating Companies concerning Products, inventory, and storage facilities upon 48 hours’notice to PF, notice to be addressed to the following:Premier Farnell UK LimitedAttn: Vice President / General Counsel300 South Riverside Plaza, Suite 2200Chicago, IL 60606United States of Americaf.PF Participating Companies may rotate stock as provided in Section 13 of the Agreement; provided however, that with respect to PFParticipating Company stock and any credit issued by Xilinx to PF Participating Company in connection with such PF ParticipatingCompany stock: (1) PF Participating Companies may only rotate stock twice per year as agreed between Xilinx and PF, but in the eventthat Xilinx and PF Participating Companies are unable to mutually agree on a stock rotation schedule, Xilinx will set the schedule in itsabsolute discretion, and (2) the total dollar value of the credit shall not exceed [***] percent [***] of the dollars invoiced by Xilinx to PFParticipating Companies, net of any adjustment, during the subject six-month period.To evidence the parties’ agreement to this Addendum, they have signed and delivered it on the date(s) below, but as of the date set forth in thepreamble.Xilinx:Xilinx, Inc.          Xilinx Ireland Unlimited CompanyBy:/s/ Christopher Alan Henry By:/s/ Kevin Cooney Authorized Signature Authorized SignatureNameChristopher Alan Henry NameKevin Cooney Printed or Typed Printed or TypedTitleCVP, Channel Sales TitleManaging DirectorDate3/24/2017 Date3/25/2017Xilinx Sales International Pte. Ltd.         By:/s/ Oren Scotten Authorized Signature NameOren Scotten Printed or Typed TitleSite Director Date3/27/2017 Distributor:Avnet, Inc.         By:/s/ Peter Bartolotta Authorized Signature NamePeter Bartolotta Printed or Typed TitleChief Transformation Officer Date22 March 2017 10:33 MST Exhibit APremier Farnell Participating Companies(current as of March 2017)Territory – all global locations Name of Company Country of Incorporation UK BUSINESSES Premier Farnell UK Limited UK(includes Farnell and CPC trading divisions) OVERSEAS FARNELL COMPANIES element14 Pty Ltd Australiaelement14 Limited New ZealandElement14 sp. zo.o PolandFarnell GmbH GermanyFarnell Danmark AS DenmarkOy Farnell (Finland) Ab FinlandFarnell Components Aktiebolag SwedenFarnell AG SwitzerlandFarnell Components (Ireland) Limited IrelandFarnell (France) SAS FranceFarnell (Netherlands) BV Netherlandselement14 Pte Limited Singaporeelement14 Sdn. Bhd. Malaysiaeluomeng Limited Hong KongFarnell Components SL     SpainFarnell (Belgium) BelgiumFarnell Italia Srl     Italyeluomeng Electronics (China) Co Ltd Chinaelement14 Asia Pte Limited Singaporeelement14 India Private Limited IndiaFarnell Components (Israel) Limited Israel Newark Companies Newark Electronics Corporation USANewark Corporation USAElement14 de Mexico, S. de R.L. de C.V. MexicoPremier Farnell Canada Limited     Canada Embest Companies Shenzhen Embest Technology Co Ltd ShenzhenElement14 Limited Hong Kong MCM Companies MCM Electronics, Inc. USAExhibit 10.18AMENDMENTTHIS AMENDMENT (“Amendment”) effective as of March 1, 2017 , amends that certain Master Distributor Agreement effectiveas of March 12, 2014, as previously amended (the “Agreement”), by and between Xilinx, Inc. , an Delaware Corporation, havingoffices at 2100 Logic Drive, San Jose, CA, 95124, Xilinx Ireland Unlimited Company (formerly known as Xilinx Ireland), acompany incorporated under the laws of Ireland with a place of business at 2020 Bianconi Avenue, Citywest Business Campus,Saggart, Co. Dublin, Ireland, and Xilinx Sales International Pte. Ltd. , a company organized and existing under the laws ofSingapore, having its principal office at 5 Changi Business Park Vista, Singapore 486040 (collectively and individually, “ Xilinx ”),and Avnet, Inc. , a New York corporation, having its principal office at 2211 South 47 th Street, Phoenix, AZ 85034 (“ Distributor”).A.The parties agree to amend Exhibit D of the Agreement as follows:The following sentence is deleted in its entirety:DIR, or a percentage of DIR, is provided to Distributor at the discretion of Xilinx based on the Distributor cost ofworking capital.B.Except as set forth above, the Agreement remains in full force and effect.To evidence the parties’ agreement to this Agreement, they have signed and delivered it on the date(s) below, but as of the dateset forth in the preamble.Xilinx, Inc. Avnet, Inc.Signature: /s/ Christopher AlanHenry Signature: /s/ Peter Bartolotta  Print Name: Christopher Alan Henry Print Name: Peter BartolottaTitle: CVP, Channel Sales Title: Chief Transformation OfficerDate: 3/24/2017 Date: 24 March 2017 16:08 MST                Xilinx Ireland Unlimited CompanySignature: /s/ Kevin Cooney     Print Name: Kevin Cooney     Title: Managing DirectorDate: 3/25/2017Xilinx Sales International Pte. Ltd.Signature: /s/ Oren Scotten     Print Name: Oren Scotten     Title: Site Director     Date: 3/27/2017         Exhibit 21.1XILINX, INC.SUBSIDIARIES OF REGISTRANT NAME PLACE OF INCORPORATIONOR ORGANIZATIONXilinx Benelux B.V.B.A. Belgium Xilinx Development Corporation California, U.S.A. Auviz Systems Inc California, U.S.A. Xilinx Canada Co. Canada Xilinx Holding Six Limited Cayman Islands Xilinx Holding Three Ltd. Cayman Islands Xilinx Technology Beijing Limited China Xilinx Technology Shanghai Limited China Midgard Acquisition LLC Delaware, U.S.A. Xilinx Estonia O.U. Estonia Xilinx SARL France Xilinx GmbH Germany Xilinx Hong Kong Limited Hong Kong SAR, China Auviz Systems India Private Limited India Xilinx India Technology Services Private Limited India Xilinx Finance Ireland Limited Ireland Xilinx Holding Two Limited Luxembourg Xilinx Ireland Unlimited Company Ireland Xilinx Israel Limited Israel Xilinx K.K. Japan Xilinx NL B.V. Netherlands Xilinx Asia Pacific Pte. Ltd. Singapore Xilinx Sales International Pte. Ltd. Singapore Xilinx Singapore Holding Pte. Ltd. Singapore Xilinx AB Sweden Xilinx Limited United Kingdom Xilinx NI Limited United KingdomExhibit 23.1CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMWe consent to the incorporation by reference in the Registration Statements (Form S-8 Nos. 333-215789, 333-201805, 333-193664, 333-186442, 333-179463,333-172102, 333-162948, 333-157473, 333-151219, 333-140573, 333-127318, 333-62897, 333-44233, 333-12339, 33-40562, 33-36706, 33-80075, 33-83036, 33-52184, 33-67808 and 333-51510, and Form S-3 Nos. 333-194052, 333-00054, 333-143769, 333-51514 and 333-216131) of Xilinx, Inc. of our reports dated May15, 2017, with respect to the consolidated financial statements and schedule of Xilinx, Inc. and the effectiveness of internal control over financial reporting ofXilinx, Inc. included in this Annual Report (Form 10-K) for the year ended April 1, 2017./s/ Ernst & Young LLPSan Jose, CaliforniaMay 15, 2017Exhibit 31.1XILINX, INC.CERTIFICATION PURSUANT TOSECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),AS ADOPTED PURSUANT TOSECTION 302 OF THE SARBANES-OXLEY ACT OF 2002I, Moshe N. Gavrielov, certify that: 1.I have reviewed this annual report on Form 10-K of Xilinx, Inc.;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within thoseentities, particularly during the period in which this report is being prepared;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles;(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recentfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely tomaterially affect, the registrant’s internal control over financial reporting; and5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controlover financial reporting. Date: May 15, 2017 /s/ Moshe N. Gavrielov Moshe N. Gavrielov President and Chief Executive OfficerExhibit 31.2XILINX, INC.CERTIFICATION PURSUANT TOSECURITIES EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),AS ADOPTED PURSUANT TOSECTION 302 OF THE SARBANES-OXLEY ACT OF 2002I, Lorenzo A. Flores, certify that: 1.I have reviewed this annual report on Form 10-K of Xilinx, Inc.;2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make thestatements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects thefinancial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in ExchangeAct Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for theregistrant and have:(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, toensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within thoseentities, particularly during the period in which this report is being prepared;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under oursupervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with generally accepted accounting principles;(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about theeffectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recentfiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely tomaterially affect, the registrant’s internal control over financial reporting; and5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to theregistrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonablylikely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controlover financial reporting. Date: May 15, 2017 /s/ Lorenzo A. Flores Lorenzo A. Flores Senior Vice Presidentand Chief Financial OfficerExhibit 32.1XILINX, INC.CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report of Xilinx, Inc. (the “Company”) on Form 10-K for the period ended April 1, 2017 as filed with the Securities and ExchangeCommission on the date hereof (the “Report”), I, Moshe N. Gavrielov, President and Chief Executive Officer of the Company, certify, pursuant to Title 18,Chapter 63, Section 1350 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.Date: May 15, 2017 /s/ Moshe N. Gavrielov Moshe N. Gavrielov President and Chief Executive OfficerA signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature thatappears in typed form within the electronic version of this written statement required by Section 906, has been provided to Xilinx, Inc. and will be retained byXilinx, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.Exhibit 32.2XILINX, INC.CERTIFICATION PURSUANT TO18 U.S.C. SECTION 1350,AS ADOPTED PURSUANT TOSECTION 906 OF THE SARBANES-OXLEY ACT OF 2002In connection with the Annual Report of Xilinx, Inc. (the “Company”) on Form 10-K for the period ended April 1, 2017 as filed with the Securities and ExchangeCommission on the date hereof (the “Report”), I, Lorenzo A. Flores, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to Title18, Chapter 63, Section 1350 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge: (1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.Date: May 15, 2017 /s/ Lorenzo A. Flores Lorenzo A. Flores Senior Vice Presidentand Chief Financial OfficerA signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature thatappears in typed form within the electronic version of this written statement required by Section 906, has been provided to Xilinx, Inc. and will be retained byXilinx, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

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