Xilinx
Annual Report 2018

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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 March 31, 2018oTransition 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 NO oIndicate 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 growth company.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 September 30, 2017 asreported on the Nasdaq Global Select Market was approximately $12,264,427,000. Shares of common stock held by each executive officer and director and by each person whoowns 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 not necessarily aconclusive determination for other purposes.As of April 27, 2018, the registrant had approximately 253,404,000 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 1, 2018 are incorporated by reference into Part III of this Annual Report onForm 10-K. Table of ContentsXilinx, Inc.Form 10-KFor the Fiscal Year Ended March 31, 2018TABLE OF CONTENTS PART I3Item 1. Business3Item 1A. Risk Factors15Item 1B. Unresolved Staff Comments25Item 2. Properties25Item 3. Legal Proceedings25Item 4. Mine Safety Disclosures25 PART II26Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities26Item 6. Selected Financial Data28Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations29Item 7A. Quantitative and Qualitative Disclosures about Market Risk41Item 8. Financial Statements and Supplementary Data43Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure80Item 9A. Controls and Procedures81Item 9B. Other Information81 PART III82Item 10. Directors, Executive Officers and Corporate Governance82Item 11. Executive Compensation82Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters82Item 13. Certain Relationships and Related Transactions, and Director Independence83Item 14. Principal Accounting Fees and Services83 PART IV84Item 15. Exhibits and Financial Statement Schedules84Signatures87 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 containdiscussions concerning our development efforts, strategy, new product introductions, backlog and litigation. Forward-looking statements involve numerousknown and unknown risks and uncertainties that could cause actual results to differ materially and adversely from those expressed or implied. Such risksinclude, but are not limited to, those discussed throughout this document as well as in Item 1A. "Risk Factors." Often, forward-looking statements can beidentified by the use of forward-looking words, such as "may," "will," "could," "should," "expect," "believe," "anticipate," "estimate," "continue," "plan,""would," "intend," "project" and other similar terminology, or the negative of such terms. We disclaim any responsibility to update or revise any forward-looking statement provided in this Annual Report 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-dimensionalICs (3D ICs);•Adaptive Compute Acceleration Platform (ACAP): a highly integrated multi-core heterogeneous compute platform;•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 desiredlogic functions, and programmable SoCs, which combine industry standard ARM processor-based systems with programmable logic in a single device. Wealso design and develop 3D ICs, which consist of a combination of FPGAs, transceivers and a wide memory interface in a single package to exceed thecapacity and bandwidth of monolithic devices. In addition, earlier this year we announced a new breakthrough product category called ACAP, a highlyintegrated multi-core heterogeneous compute platform, which extends far beyond the capabilities of an FPGAs. Our product portfolio is designed to providehigh integration and quick time-to-market for electronic equipment manufacturers in sub-segments such as wireline and data center, wireless, aerospace anddefense, test and measurement, industrial, scientific and medical, automotive, audio, video and broadcast and consumer.We sell our products and services through independent domestic and foreign distributors and through direct sales to original equipment manufacturers(OEMs) and electronic manufacturing service providers (EMS). Sales are generated by these independent distributors, independent sales representative or ourdirect sales organization.Xilinx was founded and incorporated in California in February 1984. In April 1990, the Company was reincorporated in Delaware. Our corporate facilitiesand executive 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;memory devices, which are used for storing program instructions and data; and logic devices, which generally are used to manage the interchange andmanipulation of digital signals within a system. Xilinx designs and develops PLDs, a type of logic device. Alternatives to PLDs may include applicationspecific integrated circuits (ASICs) and application specific standard products (ASSPs). PLDs, ASICs and ASSPs may be utilized in many of the same types ofelectronic systems. However, differences in unit pricing, development cost, product performance, reliability, power consumption, capacity, features andfunctionality, 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 toimplement and revise their designs quickly. In contrast, ASICs and ASSPs require significant development time and offer limited, if any, flexibilityto make design changes.•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 smallset of applications. ASICs and ASSPs tend to be smaller than PLDs performing the same fixed function, resulting in a lower unit cost. However, there is a highfixed cost associated with ASIC and ASSP development that is not applicable to PLD customers. This fixed cost of ASIC and ASSP development is expectedto significantly increase on next generation technology nodes. From a total cost of development perspective, ASICs and ASSPs have generally been morecost effective when used in 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 able to address higher volume applications and gain market share from ASIC and ASSP suppliers as the fixed cost of ASICand ASSP development increases on next generation 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 • Compute, Storage and Network Infrastructure Card Acceleration • 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 • Cryptocurrencies Automotive • Driver Assistance Systems • Driver Information Systems • Infotainment Systems Audio, Video and Broadcast • Post Production Equipment • "Prosumer" Video Equipment 4 Table of ContentsStrategy and CompetitionOur strategy for growth is to displace ASICs, ASSPs and traditional PLD in the next generation electronic systems. Additionally, we focus on enabling“building the adaptable intelligent world" with an emphasis including the three major elements described below.•Data center first: Xilinx is ramping up its efforts with key data center customers, ecosystem partners and software application developers, to furtherenable innovation and deployments in compute acceleration, computational storage and network acceleration.•Accelerated growth in core markets: core markets consists of automotive; wireless infrastructure; wired communications; audio, video and broadcast;aerospace and defense; industrial, scientific and medical; test, measurement and emulation; and consumer technologies where the Company hasdeep technology leadership market traction. These core markets and customers are central to Xilinx, and Xilinx continues to drive and enableinnovation to these areas.•Drive adaptive computing with the introduction of ACAP: in March 2018, we announced the ACAP, which we believe is a breakthrough productcategory. ACAP is a highly integrated multi-core heterogeneous compute platform that can be changed at the hardware level to adapt to the needs ofa wide range of applications and workloads. An ACAP's adaptability, which can be done dynamically in milliseconds during operation, deliverslevels of performance and performance per-watt that is unmatched by CPUs or GPUs. The costs and risks associated with application-specific devices can only be justified for high-volume or highly-specialized commodity products.Programmable platforms, alternatively, are becoming critical for our customers to meet increasingly stringent product requirements - cost, power, performanceand density - in a business environment characterized by increased complexity, shrinking market windows, rapidly changing market demands, cappedengineering budgets, escalating ASIC and ASSP engineering costs and 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 downcost and power consumption at each manufacturing process node. This enables us to provide simpler, smarter programmable platforms and designmethodologies allowing 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 IntelCorporation (Intel), Lattice Semiconductor Corporation (Lattice) and Microsemi Corporation (Microsemi), and from ASSP vendors such as BroadcomCorporation (Broadcom), Marvell Technology Group, Ltd. (Marvell) and Texas Instruments Incorporated (Texas Instruments), as well as from companies suchas NVIDIA with whom we traditionally have not participated in competing markets. In addition, we expect continued competition from the ASIC market,which has been ongoing 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; and5 Table of Contents•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 ourmore mature product families have been excluded from the table, although they continue to generate revenues. We operate and track our results in oneoperating segment for financial reporting purposes.6 Table of ContentsProduct FamiliesPLDsDate IntroducedZynq UltraScale+ RFSoCsFebruary 2017Spartan-7September 2016Virtex UltraScale+January 2016Kintex UltraScale+December 2015Zynq UltraScale+September 2015Virtex UltraScaleMay 2014Kintex UltraScaleNovember 2013Zynq-7000March 2011Virtex-7June 2010Kintex-7June 2010Artix-7June 2010Virtex-6February 2009Spartan-6February 2009See information under the caption "Results of Operations - Net Revenues" in Item 7. "Management's Discussion and Analysis of Financial Condition andResults of Operations" for information about our revenues from our product families. See also "Note 15. Segment Information" to our consolidated financialstatements included 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)16 nanometer (nm) FinFET+ process. The UltraScale+ portfolio includes FPGAs, 3D IC technology, Multi- Processing System on a Chip (MPSoCs) products,combining new memory, 3D on 3D and multiprocessing SoC technologies, and the industry’s first All Programmable SoC architecture with integrated radiofrequency (RF) data converters.•Zynq UltraScale+ RFSoCs integrate RF data converters into an All Programmable SoC architecture. Complete with an ARM Cortex-A53 processingsubsystem, UltraScale+ programmable logic, and the highest signal processing bandwidth in a Zynq UltraScale+ device, the new family provides acomprehensive RF signal chain for wireless, cable access, test & measurement, early warning / radar, and other high performance RF applications. •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 nextgeneration data center, 400G and terabit wireline, test and measurement, and aerospace and defense applications.•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 packetprocessing and DSP-intensive functions, and are well suited for applications ranging from wireless technology to high-speed wired networking anddata center.7 Table of Contents•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 R5Real Time Processing Unit, and an ARM Mali 400 Graphics Processing Unit. These devices enable the development of next generation embeddedvision, automotive, industrial Internet of things (IoT) and communication systems by providing significant increases in system levelperformance/watt and any-to-any connectivity with the security and safety required for next generation systems.UltraScale Product FamiliesThese devices deliver an ASIC-class advantage, based on the UltraScale architecture and utilizing TSMC's 20SoC gate density process. These devices delivernext generation routing, ASIC-like clocking, and enhancements to logic and fabric to eliminate interconnect bottlenecks while supporting consistent deviceutilization.•Kintex UltraScale FPGAs represent the Company's second generation mid-range FPGA family. These devices offer high price-performance at thelowest power. Kintex UltraScale devices are designed to meet the requirements for the growing number of key applications including nextgeneration wireline and 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. VirtexUltraScale devices are expected to be used in the industry's most challenging applications including: 400G communication applications, highperformance computing, 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 arebased on a scalable and optimized architecture, which enables design, IP portability and re-use across all families as well as provides designers the ability toachieve the appropriate combination of I/O support, performance, feature quantities, packaging and power consumption to address a wide range ofapplications. The 28nm product 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 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 enableincremental market opportunities in applications such as industrial motor control, driver assistance and smart surveillance systems, and smartheterogeneous wireless networks.•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, sensorfusion, and embedded 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-performance 40nm process technology. There are three Virtex-6 families, and each is optimized to deliver different feature mixes to address a variety ofmarkets.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-volumeFPGA family, consisting of 11 devices in two product families.8 Table of ContentsOther 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 originalSpartan family.CPLDs 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 generationsof CPLDs 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 fabricationprocess as standard FPGAs and are tested to a specific customer application to improve yield and lower costs. As a result, EasyPath FPGAs provide customerswith significant cost reduction when compared to the standard FPGA devices without the conversion risk, engineering effort, or the additional time requiredto move to an ASIC. The latest generation of EasyPath FPGAs and EasyPath-7 FPGAs provide lower total product cost of ownership for cost-reducing highperformance FPGAs.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 optionalthird-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-leveldesign methodologies and tools; domain-specific IP including embedded, mixed signal, video, DSP and connectivity; domain-specific developmenthardware and reference 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 specificmarkets such as automotive, consumer, aerospace and defense, communications, audio, video and broadcast, industrial, or scientific and medical, the Market-Specific Platform integrates both the Base and Domain-Specific Platforms with higher targeted applications elements such as IP, reference designs and boardsoptimized for a 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,design implementation and design verification. In April 2012, Xilinx introduced the next-generation Vivado Design Suite designed to improve developerproductivity resulting in faster design integration and implementation. The Vivado Design Suite hallmarks include an easy-to-use IP-centric design flow andsignificant improvement in run times. The standards-based Vivado tools include high-level synthesis to provide a more direct flow in retargeting DSPs andgeneral purpose processor designs into our FPGAs, IP Integrator to rapidly stitch together cores at higher levels of abstraction, and a new analytical place-and-route engine which significantly improves run times. The Vivado Design Suite supports Xilinx 7 series FPGAs and Zynq-7000, our programmable SoCs,as well as the Ultrascale and Ultrascale+ 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 Suiteoperate with a wide range of third-party Electronic Design Automation software point-tools offerings.9 Table of ContentsIn early 2015, Xilinx also introduced the SDx development environment, which has significantly expanded the Xilinx user base to include the broadcommunity of systems and software engineers in both existing and new markets. This innovative development environment also enables end user and thirdparty platform developers to rapidly define, integrate and verify system level solutions and provide their end customers with a customized programmingenvironment. The SDx family includes the SDNet environment, which enables the easy creation of high-performance packet processing systems with highlevel user defined specifications and compilation to highly optimized FPGAs; the SDAccel environment for OpenCL, C and C++ software designers focusingon data center acceleration applications; and the SDSoC environment for All Programmable SoCs and MPSoCs with broad end market applicability.Intellectual PropertyXilinx and various third parties offer hundreds of no charge and fee-bearing IP core licenses covering Ethernet, memory controllers, Interlaken and PCIeinterfaces, as well as an abundance of domain-specific IP in the areas of embedded, DSP and connectivity, and market-specific IP cores. In addition, ourproducts and technology leverage industry standards such as ARM AMBA AXI-4 interconnect technology, IP-XACT and IEEE P1735 encryption to facilitateplug-and-play FPGA 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 creationof a standardized and coordinated set of base boards available both from Xilinx and our ecosystem vendors, all utilizing the industry-standard extensions thatenable customization for market specific applications. Adopting this standard for all of our base boards enables the creation of a scalable and extensibledelivery mechanism 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 ahigh performance, open acceleration framework to the data center market. As of March 2018, this consortium had approximately 40 members, ranging fromsilicon providers to a rich ecosystem of partners including design, foundry, 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 costreductions, 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, Zynq UltraScale+,Zynq UltraScale+ RFSoCs, Virtex & Kintex UltraScale and Artix, Kintex, Virtex & Zynq 7 Series program families. We have enhanced our IP core offeringsand introduced our next generation software design suite (Vivado), which is optimized for SDAccel and SDSoC application development. Through processtechnology collaboration with our foundry10 Table of Contentssuppliers 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, the industry's first All Programmable SoC with integrated RF Data Converters, as well as the industry's first 3D IC devices on the28nm 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 2018, 2017 and2016, our R&D expenses were $639.8 million, $601.4 million and $533.9 million, respectively.Sales 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 focusour direct demand creation efforts on a limited number of key accounts. Distributors and independent sales representatives create demand within the balanceof our customer 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 majorityof all customer orders. In such situations, distributors are the sellers of the products and as such they bear most legal and financial risks generally related tothe sale of commercial goods, including such risks as credit loss, inventory shrinkage, theft and foreign currency fluctuations, but excluding certainindemnity and warranty liabilities.In accordance with our distribution agreements and industry practice, we have granted our authorized distributors the contractual right to return certainamounts of unsold product on a periodic basis and also receive price adjustments for unsold product in the case of a change in list prices subsequent to theinitial sale. Revenue recognition on shipments to distributors worldwide is deferred until the products are sold to the distributors' end customers. Our revenuerecognition policy will change starting fiscal 2019, see "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk" to ourconsolidated financial statements, included in Item 8.Avnet, Inc. (Avnet) distributes the substantial majority of our products worldwide. As of March 31, 2018 and April 1, 2017, Avnet accounted for 60% and59%, respectively, of our total net accounts receivable. Resale of product through Avnet accounted for 43%, 44% and 50% of our worldwide net revenues infiscal 2018, 2017 and 2016, respectively. We also use other regional distributors throughout the world. We believe distributors provide a cost-effectivemeans of reaching a broad range of customers while providing efficient logistics services. Since PLDs are standard products, they do not carry many of theinventory risks posed by ASICs. From time to time, we may add or terminate distributors in specific geographies, or move customers to a direct support orfulfillment model as we deem appropriate given our strategies, the level of distributor business activity and distributor performance and financial condition.See "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk" to our consolidated financial statements, included in Item 8."Financial Statements and Supplementary Data," for information about concentrations of credit risk and "Note 15. Segment Information" for informationabout our revenues from external customers and domestic and international operations.No end customer accounted for more than 10% of our net revenues in fiscal 2018, 2017 or 2016.BacklogAs of March 31, 2018, our backlog from OEM customers and backlog from end customers reported by our distributors scheduled for delivery within the nextthree months was $429.0 million, compared to $356.0 million as of April 1, 2017. Orders from end customers to our distributors are subject to changes indelivery schedules or to cancellation without significant penalty. As a result, backlog from both OEM customers and end customers reported by ourdistributors as of any particular 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 forour Advanced Products.Precise terms with respect to the volume and timing of wafer production and the pricing of wafers produced by the semiconductor foundries are determinedby periodic negotiations with each wafer foundry.11 Table of ContentsOur strategy is to focus our resources on market development and creating new ICs and software design tools rather than on wafer fabrication. Wecontinuously evaluate opportunities to enhance foundry relationships and/or obtain additional capacity from our main suppliers as well as other suppliers ofwafers manufactured with 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. Following assembly, the packaged units are generally tested byindependent test subcontractors or by Xilinx personnel. We purchase most of our assembly services from Siliconware Precision Industries Ltd. and most ofour 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 environmentalhealth and safety management 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, webelieve our business as a whole is not materially dependent on any particular patent or license, or any particular group of patents or licenses. As of March 31,2018, we held over 4,200 issued patents, which vary in duration, and over 800 pending patent applications relating to our proprietary technology in variousjurisdictions around the world. We maintain an active program of filing for additional patents in the areas of, but not limited to, circuits, software, ICarchitecture, IP cores, system design, testing methodologies and other technologies relating to our products and business. We licensed portions of our patentportfolio to certain external parties and obtained 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 proprietarysoftware, open-source software, and related technologies, such as compilers, for our design tools. Continued use of such software and technology is importantto the operation 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 Xilinxlogo, Artix, CoolRunner, ISE, Kintex, Spartan, Virtex, Vivado, and Zynq. Maintaining these trademarks, and the goodwill associated with them, is importantto our business. We have also obtained the rights to use certain trademarks owned by consortiums and other trademark owners that are related to our productsand business.We intend to continue to protect our intellectual property vigorously. We believe that failure to enforce our intellectual property rights or failure to protectour trade secrets effectively could have an adverse effect on our financial condition and results of operations. We incurred, and in the future we may continueto incur, litigation expenses to defend against claims of infringement and to enforce our intellectual property rights against third parties. However, any suchlitigation may or may not be successful.Corporate ResponsibilityXilinx places a high level of importance on corporate responsibility. Through senior-level sponsorship, regular environmental, health and safety assessmentsand company-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, butalso with the spirit of those laws.12 Table of ContentsEnvironmentWe continually monitor regulatory requirement and resource trends in order to identify, manage and control activities that have an environmental impact. Wefocus on the conservations of energy and natural resource, reducing the solid and chemical waste of our operations, avoiding and preventing pollution andminimizing our overall environmental impact with regards to the communities around us and consistent with global climate change efforts.CommunityWe 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,and advancement are strongly encouraged. The Xilinx Code of Social Responsibility outlines standards to ensure that working conditions at Xilinx are safeand that workers are treated with respect, fairness and dignity.EmployeesAs of March 31, 2018, we had 4,014 employees compared to 3,831 as of the end of the prior fiscal year. None of our employees are represented by a laborunion. We have 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 14, 2018 is set forth below:Name Age PositionVictor Peng 58 President and Chief Executive Officer (CEO)Lorenzo A. Flores 53 Executive Vice President and Chief Financial Officer (CFO)Catia Hagopian 46 Senior Vice President, General Counsel and SecretaryWilliam Christopher Madden 59 Senior Vice President, Hardware and Systems Product DevelopmentEmre Önder 51 Senior Vice President, Product and Vertical MarketingSalil Raje 48 Senior Vice President, Software and IP Products GroupVincent L. Tong 56 Executive Vice President, Global Operations and QualityMark David Wadlington 56 Senior Vice President, Global SalesThere are no family relationships among the executive officers of the Company or the Board of Directors.Victor Peng joined the Company in April 2008 and currently serves as President and Chief Executive Officer, a position he has held since February 2018.From April 2017 to February 2018, Mr. Peng served as Chief Operating Officer. From July 2014 to April 2017, he served as Executive Vice President andGeneral Manager of Products. From May 2013 through July 2014, Mr. Peng served as Senior Vice President and General Manager of the ProgrammablePlatforms Group. From May 2012 through April 2013, he served as Senior Vice President of the Programmable Platforms Group. From November 2008through April 2012, he served as Senior Vice President of the Programmable Platforms Development Group. Prior to joining the Company, Mr. Peng served asCorporate Vice President, Graphics Products Group at Advanced Micro Devices (AMD), a provider of processing13 Table of Contentssolutions, from November 2005 to April 2008. Prior to joining AMD, Mr. Peng served in a variety of executive engineering positions at companies in thesemiconductor and processor industries. Lorenzo A. Flores joined the Company in September 2008 and currently serves as Executive Vice President and Chief Financial Officer, a position he hasheld since February 2018. From May 2016 to January 2018, Mr. Flores served as Senior Vice President and Chief Financial Officer. From July 2012 to May2016, Mr. Flores served as Corporate Vice President of Finance and Corporate Controller. From September 2008 to June 2012 he served as Vice President ofFinance and Corporate Controller. Prior to joining the Company, Mr. Flores was Assistant Vice President of Financial Planning and Analysis at CognizantTechnology Solutions, served as Chief Financial Officer of a venture funded startup, and spent ten years at Intel Corporation, a semiconductor chip maker,serving in a variety of positions, including Controller, Intel Architecture CPUs and Controller, Telecommunications and Embedded Group. Catia Hagopian joined the Company in February 2007 and currently serves as Senior Vice President, General Counsel and Secretary, a position she has heldsince March 2018. Ms. Hagopian is responsible for the Company’s legal operations globally covering matters such as commercial transactions, corporateactivities and policies, corporate governance, employment, export compliance, intellectual property and litigation. From April 2012 to March 2018, Ms.Hagopian served as the Company’s Vice President, Legal Affairs, Global Compensation and Benefits. From February 2007 to April 2012, Ms. Hagopian heldvarious senior positions in the Company’s Legal Department. Prior to joining the Company, Ms. Hagopian served as a law clerk for the US District Court,Eastern District of California and worked at several law firms, including DLA Piper LLP (US).William Christopher Madden joined the Company in May 2008 and currently serves as Senior Vice President, Hardware and Systems Product Development,a position he has held since July 2017. From October 2010 to June 2017, Mr. Madden served as Corporate Vice President, FPGA Development and SiliconTechnology. From May 2008 to September 2010, Mr. Madden served as Vice President of Silicon Technology. Prior to joining the Company, Mr. Maddenserved as a Senior Fellow at AMD where he drove AMD’s next generation chip integration methodology. Mr. Madden also currently serves as an AdjunctProfessor at University College Dublin, a Fellow of the Institute of Engineers Ireland and a Board Member of Science Foundation Ireland. Emre Önder joined the Company in August 2017 and currently serves as Senior Vice President, Product and Vertical Marketing. From July 2015 to June2017, Mr. Önder served as the Vice President/General Manager and Vice President, Global Sales, Sensing and IoT at Honeywell International Inc., adiversified technology and manufacturing company that produces a variety of commercial and consumer products]. From October 2009 to December 2014,he served as Vice President, Marketing and Core Markets at Analog Devices, Inc. (ADI), a global analog, mixed-signal and digital signal processingtechnology company. Prior to joining ADI, Mr. Önder worked at EMC Corporation and the Boston Consulting Group.Salil Raje joined the Company in June 2004 and currently serves as Senior Vice President, Software and IP Products Group, a position he has held since April2017. From June 2012 to April 2017, Mr. Raje served as Corporate Vice President, Software and IP Products Group. He has also served as Vice President,FPGA Software from January 2009 to June 2012, and as Director, Software Development from June 2004 to January 2009. Prior to joining the Company, Mr.Raje served as Chief Technology Officer and Chief Executive Officer of Hier Design, Inc., a company he co-founded in 2001 and which was acquired by theCompany in June 2004.Vincent L. Tong joined the Company in May 1990 and currently serves as Executive Vice President, Global Operations & Quality, a position he has heldsince May 2016. From January 2015 to May 2016, Mr. Tong served as Senior Vice President, Global Operations and Quality. He also has served as ExecutiveLeader, Asia Pacific since October 2011. Mr. Tong previously served as Senior Vice President, Worldwide Quality and New Product Introductions from June2008 to January 2015. He has also served as Vice President, Worldwide Quality and Reliability from August 2006 to June 2008 and prior to that as VicePresident of Product Technology from May 2001 to July 2006. Prior to joining the Company, Mr. Tong served in a variety of engineering and managementpositions at Monolithic Memories, a producer of logic devices, and AMD. He holds seven U.S. patents.Mark David Wadlington joined the Company in March 2018 and currently serves as Senior Vice President, Global Sales. Prior to joining the Company, Mr.Wadlington was Senior Vice President, Worldwide Sales at Synaptics Incorporated from April 2017 to March 2018. Prior to joining Synaptics, from February2013 to March 2017, Mr. Wadlington held executive positions at Lattice Semiconductor, including serving as Corporate Vice President and GeneralManager, Mobile and Consumer Division at Lattice Semiconductor and Corporate Vice President of Worldwide Sales. Prior to Lattice, Mr. Wadlington wasVice President of Worldwide Sales at Applied Micro Circuits Corporation (AMCC) from March 2011 to November 2012. Prior to AMCC, Mr. Wadlingtonserved as the Vice President of America’s Sales at the Company, Vice President of Worldwide MCP (media communications processor) Sales at NVIDIA, andheld various senior-level positions at LSI Logic during his 21-year tenure there, including serving as LSI Logic’s Vice President of WorldwideSemiconductor Sales.14 Table of ContentsAdditional 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,quarterly reports 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 theU.S. Securities Exchange Act of 1934, as amended (Exchange Act) as soon as reasonably practicable after they are electronically filed with or furnished to theSecurities and Exchange Commission (SEC). All such filings on our investor relations website are available free of charge. Printed copies of these documentsare also available to stockholders without charge, upon written request directed to Xilinx, Inc., Attn: Investor Relations, 2100 Logic Drive, San Jose, CA95124. Further, a copy of this Annual 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 the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site thatcontains reports, proxy and information statements and other information regarding our filings at http://www.sec.gov. The content on any website referred toin this filing is not incorporated by reference into 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 "Note 15. Segment Information" to our consolidatedfinancial 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. Our business operations or financial condition could be impaired by risks and uncertainties notpresently known to the Company, or that the Company's management does not currently consider material. If any of the risks described below were to occur,our business, financial condition, operating results and cash flows could be materially adversely affected.Our success depends on our ability to develop and introduce new products and our failure to do so would have a material adverse impact on ourfinancial condition 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 thebasis of price, density, functionality, power consumption and performance. Consolidation in our industry may increasingly result in our competitors havinggreater resources, or other synergies, that provide them with a competitive advantage in those regards. The success of new product introductions is dependentupon several factors, 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, or we may not achieve the necessary volumeof production that would lead to further per unit cost reductions. Revenues relating to our mature products are expected to decline in the future, which isnormal for our product life cycles. As a result, we may be increasingly dependent on revenues derived from design wins for our newer products as well asanticipated cost reductions in the manufacture of our current products. We rely primarily on obtaining yield improvements and corresponding cost reductionsin the manufacture15 Table of Contentsof existing products, and on introducing new products that incorporate advanced features and other price/performance factors that enable us to increaserevenues while maintaining consistent margins. To the extent that such cost reductions and new product introductions do not occur in a timely manner, or tothe extent that our products do not achieve market acceptance at prices with higher margins, our financial condition and results of operations could bematerially adversely affected. 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 TSMC and UMC. We also have wafers manufactured in South Korea by Samsung Electronics Co., Ltd.Terms with respect to the volume and timing of wafer production and the pricing of wafers produced by the semiconductor foundries are determined throughperiodic negotiations with these wafer foundries, which usually result in short-term agreements that do not provide for long-term supply or allocationcommitments. We are dependent on these foundries to supply the substantial majority of our wafers. We rely on TSMC, UMC and our other foundries toproduce wafers with competitive performance attributes. Therefore, the foundries, particularly TSMC which manufactures our newest products, must be ableto transition to advanced manufacturing process technologies and increased wafer sizes, produce wafers at acceptable yields and deliver them in a timelymanner. Furthermore, we cannot guarantee that the foundries that supply our wafers will offer us competitive pricing terms or other commercial termsimportant to our business.We 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. For example, we may experience supply shortages due to thedifficulties foundries may encounter if they must rapidly increase their production capacities from low utilization levels to high utilization levels because ofan unexpected increase in demand. Furthermore, we cannot guarantee that the foundries will be able to manufacture sufficient quantities of our products orthat they will continue to manufacture a given product for the full life of the product. We could also experience supply shortages due to very strong demandfor our products, or a surge in demand for semiconductors in general, which may lead to tightening of foundry capacity across the industry. In addition, weakeconomic conditions may adversely impact the financial health and viability of the foundries and result in their insolvency or their inability to meet theircommitments to us. The insolvency of a foundry or any significant manufacturing problem or insufficient foundry capacity would disrupt our operations andnegatively impact our financial condition and results of operations.Earthquakes or other natural disasters could disrupt our operations and have a material adverse effect on our financial condition and results ofoperations.Our worldwide operations could be disrupted by earthquakes or other natural disasters such as typhoons, tsunamis, volcano eruptions, fires or floods, as wellas disruptions in access to adequate supplies of electricity, natural gas or water. The independent foundries, upon which we rely to manufacture our products,as well as our California and Singapore facilities, are located in regions that are subject to earthquakes and other natural disasters. TSMC's and UMC'sfoundries in Taiwan and our assembly and test partners in other regions as well as many of our operations in California are located in areas that have beenseismically active in the past and some of these areas have also been affected by other natural disasters such as typhoons. Disruption of operations at thesefoundries and our facilities could cause delays in manufacturing and shipments of our products, and could have a material adverse effect on our results ofoperations. Any catastrophic event in these locations would disrupt our operations, and our insurance may not cover losses resulting from such disruptions ofour operations, thereby materially adversely affecting our financial condition and results of operations. For example, as a result of the March 2011 earthquakein Japan, production at the Seiko factory at Sakata was halted temporarily, impacting production of some of our older devices. In addition, suppliers of wafersand substrates were forced to halt production temporarily. 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-integratedcompetitors may be less exposed to some or all of these and other risks.The semiconductor industry is characterized by cyclical market patterns and a significant industry downturn could adversely affect our operatingresults.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 marketswe serve and reduced capital spending by our customers can result, and in the past has resulted, in excess and obsolete inventories and correspondinginventory write-downs. We attempt to identify changes in market conditions as soon as possible; however, the dynamics of the market in which we operatemake prediction of and timely reaction to such events difficult. Due to these and other factors, our past results are not reliable predictors of our future results.16 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. Dueto the complexity of our customers' designs, the design to volume production process for our customers requires a substantial amount of time, frequentlylonger than a year. In addition, other factors may affect our end customers' demand for our products, including, but not limited to, end customer programdelays and the ability of end customers to secure other complementary products. We also are dependent upon "turns," orders received and turned for shipmentin the same quarter. These factors make it difficult for us to forecast future sales and project quarterly revenues. The difficulty in forecasting future salesimpairs our ability to project our inventory requirements, which could result, and in the past has resulted, in inventory write-downs or failure to meetcustomer product demands in a timely manner. In addition, difficulty in forecasting revenues compromises our ability to provide forward-looking revenueand 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 PLD competitors, includingIntel, Lattice and Microsemi, and from new market entrants. In addition, we continue to face competition in the ASIC and ASSP markets, includingcompetitors such as Broadcom, Marvell and Texas Instruments. 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 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-power applications as well as high-performance, high-density applications. However, we may not be successful in executing this strategy. In addition, weanticipate continued 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;•discrete general purpose GPUs targeting non-graphics applications; 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 software17 Table of Contentsdesign tools that support the full range of our IC products. We believe that automation and ease of design are significant competitive factors in this segment.We 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 competitivewith some 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 raisethe likelihood of potential wafer price increases, wafer shortages or shortages in materials at production and test facilities, resulting in potential inability toaddress customer product demands in a timely manner. For example, in 2011, when certain suppliers located in Japan were forced to temporarily haltproduction 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 asincreases in wafer or materials prices could adversely affect our gross margins and would adversely affect our ability to meet customer demands and lead toreduced 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 43% of our worldwide net revenues in fiscal 2018, and, as of March 31, 2018, Avnet accounted for 60% of ourtotal net accounts receivable. Any adverse change to our relationship with Avnet or our other distributors could have a material impact on our business.Furthermore, if a key distributor materially defaulted on a contract or otherwise failed to perform, our business and financial results would suffer. In addition,we are subject to concentrations of credit risk in our trade accounts receivable, which includes accounts of our distributors. A significant reduction of effortby a distributor to sell our products or a material change in our relationship with one or more distributors may reduce our access to certain end customers andadversely affect 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 economicconditions may adversely impact the financial health of some of these distributors, particularly our smaller distributors. This could increase our credit riskexposure relating to the insolvency of certain distributors, the inability of distributors to obtain credit to finance the purchase of our products, or delayedpayment for such purchases. Our business could be harmed if the financial health of these distributors impaired their performance and we were unable tosecure alternate 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 (i) prolonged inability to obtain waferswith competitive performance and cost attributes, adequate yields or timely delivery, (ii) disruption in assembly, test or shipment services, (iii) delays instabilizing manufacturing processes and ramping up volume for new products, (iv) transitions to new service providers, or (v) other circumstance that wouldrequire us to seek alternative sources of supply, could delay shipments and have a material adverse effect on our ability to meet customer demands. Inaddition, unpredictable economic conditions may adversely impact the financial health and viability of these subcontractors and result in their insolvency ortheir inability to meet their commitments to us. These factors would result in reduced net revenues and could negatively impact our financial condition andresults of operations.A number of factors, including our inventory strategy, can impact our gross margins.A number of factors can cause our gross margins to fluctuate, including yield, wafer pricing, product mix, market acceptance of our new products, competitivepricing dynamics, licensing costs, geographic and/or market segment pricing strategies. 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 insafety stock in anticipation of future revenue growth. In the event demand does not materialize, we may be subject to incremental obsolescence costs. Inaddition, future product cost reductions could have impact on our inventory valuation as well as our operating results.18 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 yieldimprovement, manufacturing cost reductions and increased unit sales. We also continue to develop higher value products or product features that increase theaverage selling prices of our products, or slow the decline of such prices. However, there is no guarantee that our ongoing efforts will be successful or thatthey will keep pace with the decline in selling prices of our products, which could ultimately lead to a decline in our revenues and gross margins.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.If weak economic conditions happen, there may be a number of negative effects on our business, including customers or potential customers reducing ordelaying orders, the insolvency of key suppliers, potentially causing production delays, the inability of customers to obtain credit, and the insolvency of oneor more customers. Any of these effects could impact our ability to effectively manage inventory levels and collect receivables and ultimately decrease ournet revenues and profitability.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 commercialproducts assembled, packaged and tested by subcontractors located outside the U.S. and utilize third party warehouse operators to store and manageinventory levels for certain of our products. All of these activities are subject to the uncertainties associated with international business operations, includingglobal laws and regulations, trade barriers, economic sanctions, tax regulations, import and export regulations, duties and tariffs and other trade restrictions,changes in trade policies, anti-corruption laws, foreign governmental regulations, potential vulnerability of and reduced protection for IP, longer receivablecollection periods and disruptions or delays in production or shipments, any of which could have a material adverse effect on our business, financialcondition and/or operating results. For example, on March 8, 2016, the U.S. Department of Commerce added ZTE Corporation (ZTE) to its "Entity List" andplaced certain export restrictions on ZTE and its suppliers. Although the U.S. Department of Commerce and ZTE reached a settlement effective on March 23,2017, which removed ZTE from the Entity List, in April 2018, the U.S. Department of Commerce issued a denial order against ZTE. Unless interim relief isprovided or ZTE reaches another settlement with the U.S. Department of Commerce, this restriction may have a material adverse effect on our business,financial condition and/or operating results. Additional factors that could adversely affect us due to our international operations include rising oil prices andincreased costs, or limited supply of other natural resources. Moreover, our financial condition and results of operations could be adversely affected in theevent of political conflicts, economic crises or changes in international relations affecting countries where our main wafer providers, warehouses, endcustomers and contract manufacturers who provide assembly and test services worldwide, are located. For example, the United Kingdom's pending exit fromthe European Union, commonly referred to as "Brexit", has led to significant instability and uncertainty in such regions, which could have a material adverseeffect on our business. In addition, in the first half of 2018, the U.S and China began threatening to impose tariffs on each other's products, leading to fears ofa trade war, which, if were to materialize, could result in general economic downturn or otherwise have a material adverse effect on our business.Because we have 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. Sales and operations outside of the U.S. subject us to the risksassociated with conducting business in foreign economic and regulatory environments. Our financial condition and results of operations could be adverselyaffected by unfavorable economic conditions in countries in which we do significant business or by changes in foreign currency exchange rates affectingthose countries. We derive more than half of our revenues from international sales, primarily in the Asia Pacific region, Europe and Japan where economicweaknesses have adversely affected our revenues in the past. Sales to all direct OEMs and distributors are denominated in U.S. dollars. While the recentmovements of the Euro and Yen exchange rates against the U.S. dollar had no material impact on our business, increased volatility could impact ourEuropean and Japanese customers. Currency instability and volatility and disruptions in the credit and capital markets may increase credit risks for some ofour customers and may impair our customers' ability to repay existing obligations. For example, the United Kingdom's 2016 referendum vote to approve,"Brexit", has created economic uncertainty and currency volatility in the European Union. Increased currency volatility could also positively or negativelyimpact our foreign-currency-denominated costs, assets and liabilities. In addition, any devaluation of the U.S. dollar19 Table of Contentsrelative to other foreign currencies may increase the operating expenses of our foreign subsidiaries adversely affecting our results of operations. Furthermore,because we are increasingly dependent on the global economy, instability in worldwide economic environments occasioned, for example, directly orindirectly by political instability (such as due to Brexit), terrorist activity, U.S. or other military actions, changes to U.S. domestic and foreign policy andinternational sanctions or other diplomatic actions (potentially including sanctions adopted or under consideration by the U.S. or European Union withrespect to Russia or Russian individuals or businesses), could adversely impact economic activity and lead to a contraction of capital spending by ourcustomers generally or in specific regions. Any or all of these factors could adversely affect our financial condition and results of operations in the future.We 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 uponinterest rate movements, changes in credit rating and financial market conditions. Global credit market disruptions and economic slowdown and uncertaintyhave in the past negatively impacted the values of various types of investment and non-investment grade securities. The global credit and capital marketsmay again experience significant volatility and disruption due to instability in the global financial system, uncertainty related to global economicconditions and concerns regarding sovereign financial stability.Therefore, there is a risk that we may incur other-than-temporary impairment charges for certain types of investments should credit market conditionsdeteriorate or the underlying assets fail to perform as anticipated. Our future investment income may fall short of expectations due to changes in interest ratesor if the decline in fair values of our debt securities was judged to be other than temporary. Furthermore, we may suffer losses in principal if we are forced tosell securities that have declined 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 besuccessfully asserted in the future or will not be invalidated, violated, circumvented or challenged. From time to time, third parties, including ourcompetitors, have asserted against us patent, copyright or other IP rights to technologies that are important to us. Third parties may attempt to misappropriateour IP through electronic or other means or assert infringement claims against us or parties we have agreed to indemnify. Such assertions by third parties mayresult in costly litigation, indemnity claims or other legal actions, and we may not prevail in such matters or be able to license any valid and infringed patentsfrom third parties on commercially reasonable terms. This could result in the loss of our ability to import and sell our products or require us to pay costlyroyalties to third parties in connection with sales of our products. Any infringement claim, indemnification claim, or impairment or loss of use of our IP couldmaterially adversely affect our financial condition 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 toolsand hardware testing tools. Furthermore, certain product features may rely on intellectual property acquired from third parties, including hardware andsoftware tools and products. The design requirements necessary to meet future consumer demands for more features and greater functionality fromsemiconductor products may exceed the capabilities of the third-party intellectual property or development tools that are available to us. In addition,hardware and software tools and products procured from third parties may contain design or manufacturing defects, including flaws that could unexpectedlyinterfere with the operation of our products. 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.Any failure of our information technology systems to function properly could result in business disruption.We rely in part on various information technology (IT) systems to manage our operations, including, but not limited to, financial reporting, and we regularlyevaluate these systems and make changes to improve 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 report financial, management, or operational information on a timely and accurate basis. Inaddition, hardware and software tools and products procured from third parties included in our IT systems could contain design or manufacturing defects,including flaws that could unexpectedly interfere with the operation of our IT systems. These systems are also subject to power and telecommunicationoutages or other general system failures. Failure of our IT systems or difficulties in managing them could result in business disruption.20 Table of ContentsCyber-attacks and data breaches could have an adverse effect on our business and reputation and negatively impact our financial condition and resultsof operations.Security breaches, including cyber-attacks, phishing attacks or attempts to misappropriate or compromise confidential or proprietary information or sabotageenterprise IT systems, are becoming increasingly frequent and more sophisticated. We depend on the uninterrupted operation of our IT systems to manage ouroperations, store and retrieve business and financial data and facilitate internal communications and communications with customers, subcontractors,suppliers and distribution partners. We experience security incidents of varying degrees on an ongoing basis. We take steps to detect and investigate anysecurity incidents and prevent their recurrence, but, in some cases, we might be unaware of an incident or its magnitude and effects. Because the techniquesused to obtain unauthorized access to or sabotage networks and systems change frequently, we may be unable to anticipate these techniques or to implementadequate protections. These security incidents may involve unauthorized access, misuse or disclosure of intellectual property or confidential or proprietaryinformation regarding our business or that of our customers or business partners. We also may be subject to unauthorized access to our IT systems through asecurity breach or cyber-attack. In the past there have been attempts by third parties to penetrate and/or infect our network and systems with malicioussoftware in an effort to gain access to our network and systems. Recently, several large organizations have been infected by “ransomware,” through which anattacker gains access to the organization’s computer files, renders them temporarily inaccessible and threatens to permanently delete them if a cash ransom isnot paid by a specified deadline. Third parties may continue to attempt to fraudulently induce employees, users, or customers to disclose sensitiveinformation in order to gain access to our network and systems. The IT systems of our customers, suppliers, and distribution partners and the links betweenour IT systems and our customers are subject to the same risks as those of our IT systems. In the event of a security breach, our business and reputation couldbe harmed and we could be subject to legal and regulatory claims which could negatively impact our financial condition and results of operations.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, which present risks, including:•our ongoing business may be disrupted and our management's attention may be diverted by investment, acquisition, transition or integrationactivities;•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 ortechnology or that are otherwise related to an acquisition;•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 administrativefunctions that support such products;•our strategic investments may not perform as expected, and we may be required to recognize a loss on any or all of our strategic investments; and•we may experience unexpected changes in how we are required to account for our acquisitions and strategic investments pursuant to U.S.generally accepted accounting principles (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, particularlyin the case of a larger acquisition or several concurrent acquisitions or strategic investments.If 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 Sarbanes-Oxley Act). Our controls necessaryfor continued compliance with the Sarbanes-Oxley Act may not operate effectively at all times and may result in a material weakness disclosure. Theidentification of material weaknesses in internal control, if any, could indicate a lack of proper controls to generate accurate financial statements and couldcause investors to lose confidence and our stock price to drop.21 Table of ContentsWe 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 ourability to retain, develop and transition such personnel and attract and retain other highly qualified personnel, particularly product engineers. Competitionfor such personnel is intense and we may not be successful in hiring or retaining new or existing qualified personnel. Changes to the U.S. immigration lawsmay also impact the availability of qualified personnel. From time to time we have effected restructurings that eliminate a number of positions. Even if suchpersonnel are not directly affected by the restructuring effort, such terminations can have a negative impact on morale and our ability to attract and hire newqualified personnel in the future. If we are unable to retain or develop existing qualified personnel or are unable to hire new qualified personnel, as needed,our business, financial condition and results of operations could be seriously harmed. Further, changes to our qualified personnel, including key members ofmanagement, may be disruptive to our business, and any failure to successfully assimilate key new hires, or to successfully retain, develop and transitionpromoted employees, could adversely affect our business and results of operations.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 damagesalleged in certain legal claims may be significant. Certain other claims involving the Company are not yet resolved, including those that are discussed under"Note 16. Litigation Settlement and Contingencies" to our consolidated financial statements, included in Item 8. "Financial Statements and SupplementaryData" 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 management attention and we mayenter into material settlements to avoid these risks. Entering into settlements may result in payment of significant amounts which may materially andadversely affect our financial condition and operation results. Should we fail to prevail in certain matters, or should several of these matters be resolvedagainst us, we may be faced with significant monetary damages or injunctive relief against us that would materially and adversely affect a portion of ourbusiness 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 maybe discovered in existing or new products. Such defects may cause us to incur significant warranty, support and repair or replacement costs, divert theattention of our engineering personnel from our product development efforts and harm our relationships with customers. Subject to certain terms andconditions, we have agreed to compensate certain customers for limited specified costs they actually incur in the event our hardware products experienceepidemic failure. As a result, epidemic failure and other performance problems could result in claims against us or the delay or loss of market acceptance ofour products and would likely harm our business. 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 and costly to defend. Product liability risks are particularly significant with respect to aerospace, automotive and medical applications because ofthe risk of serious harm 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 our technical and management personnel, and harm our business.22 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 inapplying our critical accounting policies. Those estimates and judgments have a significant impact on the results we report in our consolidated financialstatements. The most difficult estimates and subjective judgments that we make concern valuation of marketable and non-marketable securities, revenuerecognition, inventories, long-lived assets including acquisition-related intangibles, goodwill, taxes and stock-based compensation. We base our estimateson historical experience, input from outside experts and various other assumptions that we believe to be reasonable under the circumstances, the results ofwhich form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. We also haveother key accounting policies that are not as subjective, and therefore, their application would not require us to make estimates or judgments that are asdifficult, but which nevertheless could significantly affect our financial reporting. Actual results may differ materially from these estimates. If these estimatesor their related assumptions change, our operating results for the periods in which we revise our estimates or assumptions could be adversely and materiallyaffected.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 exportand re-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 aninternal compliance 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,security or compliance program failures that could result in penalties or a loss of export privileges, as well as stringent licensing restrictions that may makeour products less 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 our business or results ofoperations.We market and sell our products directly to OEMs and through authorized third-party distributors which helps to ensure that products delivered to ourcustomers are authentic and properly handled. From time to time, customers may purchase products bearing our name from the unauthorized "gray market." These parts may be counterfeit, salvaged or re-marked parts, or parts that have been altered, mishandled, or damaged. Gray market products result in shadowinventory that is not visible to us, thus making it difficult to forecast supply or demand. Also, when gray market products enter the market, we and ourauthorized distributors may compete with brokers of these discounted products, which can adversely affect demand for our products and negatively impactour margins. In addition, our reputation with customers may be negatively impacted when gray market products bearing our name fail or are found to besubstandard.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 forcompanies whose products incorporate "conflict" minerals mined from the Democratic Republic of Congo and adjoining countries, regardless of whethersuch products are manufactured by those companies or by third parties. These requirements could affect the sourcing and availability of minerals used in themanufacture of our semiconductor products. The costs associated with complying with the disclosure requirements include those for due diligence in regardto the sources of any conflict minerals used in our products, remediation and other changes to products, processes, or sources of supply as a consequence ofsuch verification activities. We may face reputational challenges if we are unable to sufficiently verify the origins for all minerals used in our productsthrough the due diligence process we implement. Moreover, some of our customers may require that all of the components of our products are certified asconflict-free, and we may be unable to verify the origin of the raw materials used in our products to the extent necessary to make this certification.23 Table of ContentsExposure to greater-than-anticipated income tax liabilities, changes in tax rules and regulations, changes in interpretation of tax rules and regulations,or unfavorable 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 bymany factors, including but not limited to changes to our corporate operating structure, intercompany arrangements and tax planning strategies.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 andresults from operations could be unfavorably affected by changes in the tax rates in jurisdictions where our income is earned, by changes in the tax rules andregulations or the interpretation of tax rules and regulations in the jurisdictions in which we do business or by changes in the valuation of our deferred taxassets.Recently enacted U.S. tax legislation significantly changed the taxation of U.S.-based multinational corporations, by, among other things, reducing the U.S.corporate income tax rate, adopting elements of a territorial tax system, assessing a one-time transition tax on earnings of certain foreign subsidiaries thatwere previously tax deferred, and imposing new taxes on certain foreign-sourced earnings. The legislation is unclear in some respects and will requireinterpretations and implementing regulations by the Internal Revenue Service, as well as state tax authorities, and the legislation could be subject toamendments and technical corrections, any of which could lessen or increase certain adverse impacts of the legislation. A significant portion of our earningsare earned by our subsidiaries outside the U.S. Changes to the taxation of certain foreign earnings resulting from the newly enacted U.S. tax legislation, alongwith the state tax impact of these changes, may have an adverse effect on our effective tax rate. Furthermore, changes to the taxation of undistributed foreignearnings could change our future intentions regarding reinvestment of such earnings. The foregoing items could have a material effect on our business, cashflow, results of operations or financial condition.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 resultfrom the current examinations. There can be no assurance that the final determination of any of these examinations will not have an adverse effect on oureffective tax rates, financial condition and results of operations. Considerable amounts of shares of our common stock are available for issuance under our equity incentive plans, and significant issuances in the futuremay adversely impact the market price of our common stock.As of March 31, 2018 we had 2.00 billion authorized shares of common stock, of which 253.4 million shares were outstanding. In addition, 27.7 millionshares of common stock were reserved for issuance pursuant to our equity incentive plans and Amended and Restated 1990 Employee Qualified StockPurchase Plan (ESPP). The availability of substantial amounts of our common stock resulting from the exercise or settlement of equity awards outstandingunder our equity incentive plans, which would be dilutive to existing stockholders, could adversely affect the prevailing market price of our common stockand 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 March 31, 2018 was $1.75 billion (principal amount), which consists of $500.0 million inaggregate principal amount of our 2.125% Notes due 2019 (2019 Notes), $500.0 million in aggregate principal amount of our 3.000% Notes due 2021 (2021Notes) and $750.0 million principal amount of our 2.950% senior notes due 2024 (2024 Notes). We also may incur additional indebtedness in the future. Ourindebtedness may:•make it difficult for us to satisfy our financial obligations, including making scheduled principal and interest payments on the debentures andour other indebtedness;•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; and•increase our vulnerability to the impact of adverse economic and industry conditions.24 Table of ContentsOur ability to meet our debt service obligations will depend on our future performance, which will be subject to financial, business and other factors affectingour operations, many of which are beyond our control.The agreements governing the 2019 Notes, 2021 Notes and 2024 Notes contain covenants that may adversely affect our ability to operate our business.The indentures governing the 2019 Notes, 2021 Notes and 2024 Notes contain various covenants limiting our and our subsidiaries' ability to, among otherthings:•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, the 2021 Notes and the 2024 Notes. Any required repayment as a result of such acceleration could have a material adverseeffect on our business, results of operations, financial condition or cash flows.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 SanJose, 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 a30-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 totenants under long-term lease agreements. 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 inthe areas 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 Longmontfacility for future 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, whichinclude the metropolitan areas of Chicago, Dallas, Detroit, Nashua, Raleigh, San Diego as well as international sales offices located in the metropolitan areasof Bangalore, Beijing, Chengdu, Brussels, Helsinki, Hong Kong, London, Milan, Munich, Nanjing, Paris, Seoul, Shanghai, Shenzhen, Stockholm, Taichung,Taipei, Tel Aviv, 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, includedin Item 8. "Financial Statements and Supplementary Data", which is incorporated herein by reference.ITEM 4.MINE SAFETY DISCLOSURESNot applicable.25 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, 2018, there were approximately 450 stockholders ofrecord, which does not include beneficial owner of stock held in street name (i.e., through a brokerage firm, bank, broker-dealer, trust or other similarorganization).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 2018 Fiscal 2017 High Low High LowFirst Quarter$68.07 $55.10 $47.45 $42.92Second Quarter70.83 61.02 54.46 45.48Third Quarter74.50 67.42 61.24 49.61Fourth Quarter77.07 62.82 60.32 57.37Dividends Declared Per Common ShareThe following table presents the quarterly dividends declared on our common stock for the periods indicated: Fiscal 2018Fiscal 2017First Quarter$0.35 $0.33Second Quarter0.35 0.33Third Quarter0.35 0.33Fourth Quarter0.35 0.33On April 24, 2018, our Board of Directors declared a cash dividend of $0.36 per common share for the first quarter of fiscal 2019. The dividend is payable onJune 4, 2018 to stockholders of record as of May 15, 2018.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 RelatedStockholder Matters" 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 2018. Total Numberof Shares Purchased AveragePrice Paidper Share Total Number ofShares Purchasedas Part of Publicly AnnouncedProgram Approximate Dollar Value ofShares that May Yet BePurchased Under the Program(1)(In thousands, except per share amounts) Period December 31, 2017 to February 3, 2018 448 $72.35 448 $338,922February 4, 2018 to March 3, 2018 956 $72.00 956 $270,098March 4, 2018 to March 31, 2018 871 $72.01 871 $207,379Total for Quarter 2,275 2,275 (1) In May 2016, the Board authorized the repurchase of up to $1.00 billion of the Company's common stock and debentures (2016 Repurchase Program). The 2016 RepurchaseProgram has no stated expiration date. Through March 31, 2018, the Company had used $792.6 million of the $1.00 billion authorized under26 Table of Contentsthe 2016 Repurchase Program, leaving a balance of $207.4 million available for future repurchases. The Company's current policy is to retire all repurchased shares, and consequently,no treasury shares were held as of March 31, 2018 and April 1, 2017.See "Note 13. Stockholders' Equity" to our consolidated financial statements, included in Item 8. "Financial Statements and Supplementary Data" forinformation regarding 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 28, 2013, the last trading day beforeour fiscal 2013, to March 29, 2018, the last trading day of our fiscal 2018. The graph and table assume that $100 was invested on March 28, 2013 in ourcommon stock, the S&P 500 Index and the S&P 500 Semiconductors Index and that all dividends were reinvested.Company / Index03/28/13 03/28/14 03/27/15 04/01/16 03/31/17 03/29/18Xilinx, Inc.100.00 144.33 116.57 134.83 168.24 214.37S&P 500 Index100.00 120.89 136.89 140.71 163.83 186.75S&P 500 Semiconductors Index100.00 128.69 162.88 167.09 229.27 312.94Note: Stock price performance and indexed returns for our common stock are historical and are not indicators of future price performance or future investmentreturns.27 Table of ContentsITEM 6.SELECTED FINANCIAL DATAConsolidated Statement of Income DataFive years ended March 31, 2018(In thousands, except per share amounts) March 31,2018(1) April 1, 2017 April 2, 2016 March 28, 2015(2) March 29, 2014(3)Net revenues $2,539,004 $2,349,330 $2,213,881 $2,377,344 $2,382,531Operating income 745,054 699,394 669,881 755,078 748,927Income before income taxes 750,411 691,080 636,825 740,076 709,526Provision for income taxes 238,030 68,568 85,958 91,860 79,138Net income 512,381 622,512 550,867 648,216 630,388 Net income per common share: Basic $2.05 $2.47 $2.14 $2.44 $2.37Diluted $1.99 $2.32 $2.05 $2.35 $2.19Shares used in per share calculations: Basic 249,595 252,301 257,184 265,480 266,431Diluted 257,960 268,813 268,667 276,123 287,396Cash dividends per common share $1.40$1.32 $1.24 $1.16 $1.00(1)Fiscal 2018 consolidated statement of income data included executive transition costs of $33,351, and the impact of the US tax law changes (see "Note 14. Income Taxes" to ourconsolidated financial statements included in Item 8. "Financial Information and Supplementary Data" for more information).(2)Fiscal 2015 consolidated statement of income data included restructuring charges of $24,491.(3)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 March 31, 2018(In thousands) 2018 2017 2016 2015 2014Working capital $3,207,283 $2,982,920 $2,972,261 $2,971,259 $2,077,488Total assets 5,055,687 4,740,532 4,819,269 4,892,146 5,029,176Long-term debt 1,214,440 995,247 993,639 992,058 990,281Other long-term liabilities 573,809 339,050 278,446 304,479 266,438Stockholders' equity 2,330,235 2,507,633 2,589,893 2,611,594 2,752,682.28 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 Actof 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 thoserisks discussed under "Risk Factors" and elsewhere in this document. Often, forward-looking statements can be identified by the use of forward-lookingwords, such as "anticipates," "believes," "continue," "could," "estimates," "expects," "intends," "may," "plans," "projects," "should," "will," "would" and othersimilar terminology, or the negative of such terms. We disclaim any responsibility to update or revise any forward-looking statement provided in thisManagement's Discussion and Analysis for 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.Our PLDs include FPGAs, CPLDs and programmable SoCs. These devices are standard products that our customers program to perform desired logicfunctions. Our products are designed to provide high integration and quick time-to-market for electronic equipment manufacturers in end markets such asCommunication & Data Center, Industrial, Aerospace & Defense, and Broadcast, Consumer & Automotive. We sell our products globally throughindependent domestic and foreign distributors and through direct sales to OEMs by selected independent sales representative firms and by a direct salesmanagement 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 financialcondition and results of operations and require us to make our most difficult and subjective judgments, often as a result of the need to make estimates ofmatters that are inherently uncertain. Based on this definition, our critical accounting policies include: valuation of marketable securities, which impactslosses on debt and equity securities when we record impairments; revenue recognition, which impacts the recording of revenues; and valuation ofinventories, which impacts cost of revenues and gross margin. Our critical accounting policies also include: the assessment of impairment of long-lived assetswhich impacts their valuation; the assessment of the recoverability of goodwill, which impacts goodwill impairment; accounting for income taxes, whichimpacts the provision or benefit recognized for income taxes, as well as, the valuation of deferred tax assets recorded on our consolidated balance sheet; andvaluation and recognition of stock-based compensation, which impacts gross margin, R&D expenses, and selling, general and administrative (SG&A)expenses. Below, we discuss these policies further, as well as the estimates and judgments involved. We also have other key accounting policies that are notas subjective, and therefore, their application would not require us to make estimates or judgments that are as difficult, but which nevertheless couldsignificantly affect our financial reporting.Valuation of Marketable Securities and Non-marketable SecuritiesOur short-term and long-term investments consist of primarily marketable debt, and to a lesser extent equity securities. As of March 31, 2018, we hadmarketable debt and equity securities with a fair value of $2.18 billion.We determine the fair values for marketable debt and equity securities using industry standard pricing services, data providers and other third-party sourcesand by internally performing valuation testing and analyses. See "Note 3. Fair Value Measurements" to our consolidated financial statements, included inItem 8. "Financial Statements and Supplementary Data," for details of the valuation methodologies. In determining if and when a decline in value below theadjusted cost of marketable debt and equity securities is other than temporary, we evaluate on an ongoing basis the market conditions, trends of earnings,financial condition, credit ratings, any underlying collateral and other key measures for our investments. We did not record any other-than-temporaryimpairment for marketable debt or equity securities in fiscal 2018, 2017 or 2016.29 Table of ContentsOur investments in non-marketable equity securities of private companies are accounted for by using the cost method. These investments are measured at fairvalue on a non-recurring basis when they are deemed to be other-than-temporarily impaired. In determining whether a decline in value of non-marketableequity investments in private companies has occurred and is other than temporary, an assessment is made by considering available evidence, including thegeneral market conditions in the investee’s industry, the investee’s product development status and subsequent rounds of financing and the related valuationand/or our participation in such financings. We also assess the investee’s ability to meet business milestones and the financial condition and near-termprospects 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 lowervaluation and any bona fide offer to purchase the investee from a prospective acquirer. The valuation methodology for determining the fair value of non-marketable equity securities is based on the factors noted above which require management judgment and are Level 3 inputs. See “Note 3. Fair ValueMeasurements” to our consolidated financial statements, included in Item 8. “Financial Statements and Supplementary Data,” for additional information.When a decline in value is deemed to be other than temporary, we recognize an impairment loss in the current period’s operating results to the extent of thedecline. The impairments loss for non-marketable equity securities were not material during all periods presented.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 (our revenue recognition policy willchange starting fiscal 2019, See "Note 2. Summary of Significant Accounting Policies and Concentrations of Risk" to our consolidated financial statements,included in Item 8). For fiscal 2018, approximately 53% of our net revenues were from products sold to distributors for subsequent resale to OEMs or theirsubcontract manufacturers. Revenue recognition depends on notification from 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 customer shipment information, as well as inventory on hand. Reported distributorinventory on hand is reconciled to deferred revenue balances monthly. We maintain system controls to validate distributor data and to verify that thereported information is accurate. Deferred income on shipments to distributors reflects the estimated effects of distributor price adjustments and the estimatedamount of gross margin expected to be realized when distributors sell through product purchased from us. Accounts receivable from distributors arerecognized and inventory is relieved when title to inventories transfers, typically upon shipment from Xilinx at which point we have a legally enforceableright to collection under normal payment terms.As of March 31, 2018, we had $31.8 million of deferred revenue and $6.6 million of deferred cost of revenues recognized as a net $25.2 million of deferredincome on shipments to distributors. As of April 1, 2017, we had $74.2 million of deferred revenue and $19.6 million of deferred cost of revenues recognizedas a net $54.6 million of deferred income on shipments to distributors. The deferred income on shipments to distributors that will ultimately be recognized inour consolidated 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 has transferred, collection of resulting receivables is reasonably assured, and there are no customer acceptance requirements and no remaining significantobligations. 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 recognizedwhen the 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 extended30 Table of Contentsbut uncommitted demand forecasts, and internal analyses such as customer historical purchasing trends and actual and anticipated design wins, as well asmarket and economic conditions, technology changes, new product introductions and changes in strategic direction. These factors require estimates that mayinclude uncertain elements. The estimates of future demand that we use in the valuation of inventory are the basis for our published revenue forecasts, whichare also consistent with our short-term manufacturing plans. The differences between our demand forecast and the actual demand in the recent past have notresulted in any material write down in our inventory. If our demand forecast for specific products is greater than actual demand and we fail to reducemanufacturing output accordingly, we could 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 aquarterly basis. When indicators of impairment exist and assets are held for use, we estimate future undiscounted cash flows attributable to the assets. In theevent such cash flows are not expected to be sufficient to recover the recorded value of the assets, the assets are written down to their estimated fair valuesbased on the expected discounted future cash flows attributable to the assets or based on appraisals. Factors affecting impairment of assets held for useinclude the ability of the specific assets to generate separately identifiable positive cash flows.When 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 fairvalue. Market conditions are amongst the factors affecting impairment of assets held for sale. Changes in any of these factors could necessitate impairmentrecognition in future 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 ofimpairment exist.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 fairvalue of the 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 ispotentially impaired. For purposes of impairment testing, Xilinx operates as a single reporting unit. We use the quoted market price method to determine thefair value of the reporting unit. Based on the impairment review performed during the fourth quarter of fiscal 2018, there was no impairment of goodwill infiscal 2018. Unless there are indicators of impairment, our next impairment review for goodwill will be performed and completed in the fourth quarter of fiscal2019. To date, no impairment 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 basedon estimates and assumptions and apply the appropriate tax rates for these jurisdictions. We undergo routine audits by taxing authorities regarding the timingand amount of deductions and the allocation of income among various tax jurisdictions. Tax audits often require an extended period of time to resolve andmay result in income 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 thecalculation of certain tax liabilities and in the determination of the recoverability of certain deferred tax assets, which arise from temporary differencesbetween the tax and financial statement recognition of revenue and expense. Additionally, we must estimate the amount and likelihood of potential lossesarising from audits or deficiency notices issued by taxing authorities. The taxing authorities' positions and our assessment can change over time resulting in amaterial effect on the provision 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 onaudit, 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 morethan 50% likely of being ultimately realized.31 Table of ContentsWe have recorded provisional estimates associated with the December 22, 2017 enactment of the Tax Cuts and Jobs Act (TCJA). The SEC has providedaccounting and reporting guidance that allows us to report provisional amounts within a measurement period up to one year due to the complexities inherentin adopting the changes. As of March 31, 2018, we consider the estimates for the one-time transition tax and for the deferred tax liabilities for U.S. taxes oninvestments in foreign subsidiaries to be provisional. New guidance from regulators, interpretation of U.S. federal and state laws, and refinement of ourestimates from ongoing analysis of data and tax positions may change these provisional amounts. See "Note 14. Income Taxes" to our consolidated financialstatements included in Item 8. "Financial Statements and Supplementary 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-Scholes option-pricing model to estimate the fair value of rights to purchase shares under our ESPP. Option pricing models, including the Black-Scholesmodel, also require the use of input assumptions, including expected stock price volatility, expected life, expected dividend rate, expected forfeiture rate andexpected risk-free rate of return. We use implied volatility based on traded options in the open market as we believe implied volatility is more reflective ofmarket conditions and a better indicator of expected volatility than historical volatility. We will continue to review our input assumptions and make changesas deemed appropriate depending on new information that becomes available. Higher volatility and expected lives result in a proportional increase to stock-based compensation determined at the date of grant. The expected dividend rate and expected risk-free rate of return do not have as significant an effect onthe 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 theestimated forfeiture rate have an effect on reported stock-based compensation, as the effect of adjusting the rate for all expense amortization is recognized inthe period the forfeiture estimate is changed. If the actual forfeiture rate is higher than the estimated forfeiture rate, then an adjustment is made to increase theestimated forfeiture rate, which will result in a decrease to the expense recognized in the financial statements. If the actual forfeiture rate is lower than theestimated forfeiture rate, then an adjustment is made to decrease the estimated forfeiture rate, which will result in an increase to the expense recognized in thefinancial statements. The impact of forfeiture true up was not material for all periods presented. The expense we recognize in future periods could also differsignificantly from the current period and/or our forecasts due to adjustments in the assumed forfeiture rates.Results of OperationsThe following table sets forth statement of income data as a percentage of net revenues for the fiscal years indicated:2018 2017 2016Net revenues100.0% 100.0% 100.0%Cost of revenues29.8 30.1 30.3Gross margin70.2 69.9 69.7Operating expenses: Research and development25.2 25.6 24.1Selling, general and administrative14.3 14.3 15.0Amortization of acquisition-related intangibles— 0.2 0.3Executive transition costs1.3 — —Total operating expenses40.8 40.1 39.4Operating income29.4 29.8 30.3Interest and other income (expense), net0.2 (0.4) (1.5)Income before income taxes29.6 29.4 28.8Provision for income taxes9.4 2.9 3.9Net income20.2% 26.5% 24.9% Net Revenues(In millions)2018 Change 2017 Change 2016Net revenues$2,539.0 8% $2,349.3 6% $2,213.932 Table of ContentsNet revenues in fiscal 2018 were $2.54 billion, an increase of 8% as compared to fiscal 2017. Advanced Products revenues increased 28% in fiscal 2018 butwere partially offset by declines from our Core Products. The increase in Advanced Products was due to higher Advanced Products sales across all endmarkets, especially in Industrial, Aerospace & Defense and Broadcast, Consumer & Automotive. Net revenues in fiscal 2017 were $2.35 billion, an increase of6% as compared to fiscal 2016. Advanced Products revenues increased 45% in fiscal 2017 but were partially offset by declines from our Core Products. Theincrease in Advanced Products was due to higher sales across all end markets, especially in Communications & Data Center and Industrial, Aerospace &Defense. See also "Net Revenues by Product" 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,and Broadcast, Consumer & Automotive. The vast majority of our net revenues are generated from sales of our semiconductor products, but we also generatesales from 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.These product categories are modified on a periodic basis to better reflect the maturity of the products and advances in technology. The most recentmodification was made on April 3, 2016, which was the beginning of our fiscal 2017, whereby we reclassified our product categories to be consistent withhow these categories are analyzed and reviewed internally. Specifically, we have grouped the products manufactured at the 28nm, 20nm and 16nm nodesinto a category named Advanced Products while all other products are included in a category named Core Products.Net revenues by product categories for the fiscal years indicated were as follows: (In millions)2018 % ofTotal % Change 2017 % ofTotal % Change 2016Advanced Products$1,383.0 54 28 $1,080.7 46 45 $746.5Core Products1,156.0 46 (9) 1,268.6 54 (14) 1,467.4Total net revenues$2,539.0 100 8 $2,349.3 100 6 $2,213.9Net revenues from Advanced Products increased significantly in fiscal 2018 as a result of sales growth from our 28nm, 20nm and 16nm product families.Sales from our 28nm products were approximately $900.0 million, while sales from our 20nm and 16nm products exceeded $300.0 million and $100.0million, respectively, during fiscal 2018. We expect sales of Advanced Products to continue to grow as more customer programs enter into volumeproduction with our 28nm, 20nm and 16nm products. In fiscal 2017, growth across all nodes of our Advanced Products families contributed to the strongrevenue growth versus the comparable prior year period.Net revenues from Core Products decreased in both fiscal 2018 and fiscal 2017 from the comparable prior year periods. The decrease in fiscal 2018 waslargely driven by the decline in sales from our Virtex-5, Virtex-6 and Spartan-3 product families, while the decrease in fiscal 2017 was largely due to thedecline in sales from our Spartan-3 and Virtex-6 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 percentagechange calculation in the table below represents the year-to-year dollar change in each end market.33 Table of ContentsNet revenues by end markets for fiscal years indicated were as follows: (% of total net revenues)2018 % Change inDollars 2017 % Change inDollars 2016Communications & Data Center37% (7) 42% 9 41%Industrial, Aerospace & Defense46 21 41 5 42Broadcast, Consumer & Automotive17 15 17 2 17Total net revenues100% 8 100% 6 100%Net revenues from Communications & Data Center decreased in fiscal 2018, but increased in fiscal 2017 from the comparable prior year periods. The decreasein fiscal 2018 was primarily due to lower sales from wireline and wireless. The increase in fiscal 2017 from the comparable prior year period was primarily dueto higher sales from wireless, and to a lesser extent from wireline and data center.Net revenues from Industrial, Aerospace & Defense increased in fiscal 2018 from the comparable prior year period. The increase in fiscal 2018 was primarilydue to higher sales from all sub-segments, primarily aerospace and defense and test and measurement. Net revenues from Industrial, Aerospace & Defenseincreased in fiscal 2017 from the comparable prior year period. The increase in fiscal 2017 was primarily due to higher sales from test and measurement andaerospace and defense, partially offset by a decrease in sales from industrial, scientific and medical.Net revenues from Broadcast, Consumer & Automotive increased in fiscal 2018 and slightly in fiscal 2017 from the comparable prior year periods. Theincrease in fiscal 2018 was due to higher sales from all sub-segments, primarily consumer. The slight increase in fiscal 2017 was due to higher sales fromautomotive.Net Revenues by GeographyGeographic revenue information reflects the geographic location of the distributors, OEMs or contract manufacturers who purchased our products. This maydiffer from the geographic location of the end customers. Net revenues by geography for the fiscal years indicated were as follows: (In millions)2018 % of Total % Change 2017 % ofTotal % Change 2016North America$768.1 30 4 $738.4 31 4 $710.7Asia Pacific1,034.2 41 8 956.1 41 12 855.9Europe513.7 20 13 456.6 20 8 424.7Japan223.0 9 13 198.2 8 (11) 222.6Total net revenues$2,539.0 100 8 $2,349.3 100 6 $2,213.9Net revenues in North America increased in fiscal 2018 from the comparable prior year period. The increase was primarily due to higher sales from Aerospaceand Defense. Net revenues in North America increased in fiscal 2017 from the comparable prior year period. The increase was primarily due to higher salesfrom Test and Measurement.Net revenues in Asia Pacific increased in fiscal 2018 from the comparable prior year period. The increase was primarily due to higher sales from Consumer,and to a lesser extent from Industrial, Scientific and Medical. Net revenues in Asia Pacific increased in fiscal 2017 from the comparable prior year period,which was primarily driven by higher sales from Wireless Communications.Net revenues in Europe increased in fiscal 2018 and in fiscal 2017 from the comparable prior year periods. The increases were primarily due to higher salesfrom Test and Measurement, partially offset by lower revenues from Wireless Communications.Net revenues in Japan increased in fiscal 2018 from the comparable prior year period. The increase was primarily driven by higher sales in Test andMeasurement and Industrial, Scientific and Medical. Net revenues in Japan decreased in fiscal 2017 from the comparable prior year period, which wasprimarily driven by lower sales in Industrial, Scientific and Medical.34 Table of ContentsGross Margin(In millions)2018 Change 2017 Change 2016Gross margin$1,782.6 9% $1,641.1 6% $1,542.0Percentage of net revenues70.2% 69.9% 69.7%Gross margin was slightly higher by 0.3 and 0.2 percentage point in fiscal 2018 and in fiscal 2017, respectively, from the comparable prior year periods. Theslight increases in gross margin for both periods were primarily due to end-market mix, as the percentage of revenue derived from Industrial, Aerospace &Defense (which has relatively higher gross margin) has increased while the percentage of revenue from Communications & Data Center has decreased in thepast two years.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 ofthis Form 10-K, shifts in the mix of customers and products, competitive-pricing pressure, manufacturing-yield issues and wafer pricing. We expect tomitigate any adverse impacts from these factors by continuing to improve yields on our Advanced Products, improve manufacturing efficiencies and improveaverage selling price management.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 maintainacceptable margins. Price erosion is common in the semiconductor industry, as advances in both product architecture and manufacturing process technologypermit continual reductions in unit cost. We have historically been able to offset much of this revenue decline in our mature products with increased revenuesfrom newer products.Research and Development(In millions)2018 Change 2017 Change 2016Research and development$639.8 6% $601.4 13% $533.9Percentage of net revenues25% 26% 24%R&D spending increased $38.4 million, or 6%, during fiscal 2018 from the comparable prior year period. The increase was primarily attributable to higheremployee compensation (including stock-based compensation) related to our new product development, partially offset by lower mask and wafer spending.R&D spending increased $67.5 million, or 13%, during fiscal 2017 from the comparable prior year period. The increase was primarily attributable to highermask and wafer spending and employee compensation (including stock-based compensation) related to our new product development.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 criticalareas.Selling, General and Administrative(In millions)2018 Change 2017 Change 2016Selling, general and administrative$362.3 8% $335.2 1% $331.7Percentage of net revenues14% 14% 15%SG&A expenses increased by $27.1 million or 8% during fiscal 2018, and by $3.5 million or 1% during fiscal 2017, from the comparable prior year periodsas we incurred higher employee compensation in both years (including stock based compensation) from higher headcount relating to revenue growth.Executive Transition CostsDuring the fourth quarter of fiscal 2018, we announced the transition of our President and Chief Executive Officer position, whereby Moshe Gavrielovresigned from those roles and Victor Peng assumed these roles. Additionally, we also implemented restructuring measures to realign resources and driveoverall operating efficiencies, which impacted approximately 60 positions in various geographies and functions worldwide. We recorded total transitioncharges of $33.4 million in the fourth quarter of fiscal 2018, primarily related to severance pay expenses and other benefits. As of the end of fiscal 2018, therewas $10.4 million accrual for severance and other benefits that are expected to be paid primarily during fiscal 2019.The following table summarizes the transition costs accrual activity for fiscal 2018:35 Table of Contents(In millions)Employee severance and benefitsTotal executive transition costs$33.4Cash payments(6.4)Non-cash charges(16.6)Balance as of March 31, 2018$10.4Amortization of Acquisition-Related Intangibles(In millions)2018 Change 2017 Change 2016Amortization of acquisition-related intangibles$2.2 (58)% $5.1 (22)% $6.6Percentage of net revenues—% —% —%The amortization expense decreased in fiscal 2018 and 2017 as compared to prior year periods. The decreases were due to certain intangibles that were fullyamortized in fiscal 2017 and during fiscal 2018.Stock-Based Compensation(In millions)2018 Change 2017 Change 2016Stock-based compensation included in: Cost of revenues$8.5 6% $8.0 —% $8.0Research and development76.8 15% 66.9 12% 59.7Selling, general and administrative51.9 8% 48.0 8% 44.3Executive transition costs16.6 100% — —% —$153.8 25% $122.9 10% $112.0The $30.9 million and $10.9 million increases in stock-based compensation expense for fiscal 2018 and 2017, respectively, as compared to the prior yearperiods were primarily related to higher expenses associated with restricted stock units, as we granted more restricted stock units at a higher fair value in therecent years. In addition, during fiscal 2018 we incurred $16.6 million of stock-based compensation related to the transition of our President and ChiefExecutive Officer position.Interest and Other Income (Expense), Net(In millions)2018 Change 2017 Change 2016Interest and other income (expense), net$5.4 (164)% $(8.3) (75)% $(33.1)Percentage of net revenues—% — % (1)%In fiscal 2018 we had net interest and other income of $5.4 million as compared to net interest and other expense of $8.3 million in fiscal 2017. The increasewas primarily due to higher interest income from the investment portfolio, and to a lesser extent lower interest expenses from 2024 Notes and its relatedinterest rate swap contracts as compared to the total interest expenses recognized from the 2017 Convertible Notes that matured in the first quarter of fiscal2018. The decrease in net interest and other expense in fiscal 2017 from the prior year period was primarily due to higher interest income from the investmentportfolio as a result of rising interest rate environment.Provision for Income Taxes(In millions)2018 Change 2017 Change 2016Provision for income taxes$238.0 247% $68.6 (20)% $86.0Percentage of net revenues9% 3% 4%Effective tax rate32% 10% 13%On December 22, 2017, the TCJA was enacted into law. The TCJA provides for numerous significant tax law changes and modifications including thereduction of the U.S. federal corporate income tax rate from 35% to 21%, the requirement for companies36 Table of Contentsto pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and the creation of new taxes on certain foreign-sourced earnings. Some provisions of the TCJA began to impact us in fiscal 2018, while other provisions will impact us beginning in fiscal 2019.The corporate tax rate reduction was effective as of January 1, 2018. Since the Company has a fiscal year rather than a calendar year, it is subject to rulesrelating to transitional tax rates. As a result, our fiscal 2018 federal statutory rate was a blended rate of 31.5%. The change in the statutory tax rate from 35%to 31.5% for our fiscal 2018 did not have a significant impact on the effective tax rate.The difference between the blended U.S. federal statutory tax rate of 31.5% and our effective tax rate in fiscal 2018 was primarily due to the one-timetransition tax net of the reversal of the related deferred tax liabilities and the beneficial impact of income earned in lower tax rate jurisdictions as discussed in“Note 14. Income Taxes” to our consolidated financial statements, included in “Part II. Item 8, Financial Statements and Supplementary Data.”The difference between the U.S. federal statutory tax rate of 35% and our effective tax rate in fiscal 2017 was primarily due to income earned in lower tax ratejurisdictions for which no U.S. income tax had been provided, as we intended to permanently reinvest the earnings outside of the U.S.The increase in the effective tax rate for fiscal 2018 from the comparable prior year period was primarily due to the U.S. federal one-time transition tax of$590.2 million, a remeasurement of certain deferred tax assets and liabilities as a result of the reduction in the corporate income tax rate to 21% in the amountof $25.1 million and a release of reserves for uncertain tax positions in fiscal 2017. The increases in the effective tax rate were partially offset by the reversalof deferred tax liabilities related to U.S. federal income tax on a portion of unremitted foreign earnings that had been accrued through fiscal 2017 in theamount of $381.7 million.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 accountingguidance with respect to share-based payment accounting and the release of reserves for uncertain tax positions upon completion of the Internal RevenueService examination of fiscal 2012 through 2014.Accounting Standards Codification (ASC) 740, Income Taxes, requires companies to recognize the effect of the tax law changes in the period of enactment.However, the SEC staff issued Staff Accounting Bulletin 118 which allows companies to record provisional amounts during a measurement period that issimilar to the measurement period used when accounting for business combinations. As of March 31, 2018, we recognized provisional amounts for the taxeffects of the TCJA which were included as components of income tax expense from continuing operations and reflected in the effective tax rates above. Wewill continue to assess the impact of the recently enacted tax law on our business and our consolidated financial statements. The final impact of the TCJArecorded by us may vary materially from the provisional impact recorded due to a number of uncertainties and factors, including the need for further guidanceand clarification of the new law by U.S. federal and state tax authorities and the need for further guidance on the income tax accounting.In addition to the impacts of tax reform on fiscal 2018 previously discussed, the TCJA also establishes new tax laws that will be effective for our fiscal 2019,including, but not limited to, (1) a new provision designed to tax low-taxed income of foreign subsidiaries, which allows for the possibility of using foreigntax credits (FTCs) and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (2) limitations on the deductibility ofcertain executive compensation; (3) limitations on the deductibility of entertainment expenses; and (4) limitations on the use of FTCs to reduce the U.S.income tax liability. While each of these provisions is expected to have an impact on our tax expense for fiscal 2019 and future periods, we expect the tax onlow-taxed income of foreign subsidiaries to have the most significant impact.Because of the complexity of the new tax on low-taxed income of foreign subsidiaries, we are continuing to evaluate this provision of the TCJA and theapplication of ASC 740. Based on recent deliberations by the Financial Accounting Standards Board (FASB), we will be allowed to make an accountingpolicy choice of either (1) treating taxes due on future U.S. inclusions in taxable income as a current-period expense when incurred or (2) recognize deferredtaxes for temporary basis differences expected to reverse as low-taxed income in future years. Our selection of an accounting policy will depend, in part, onanalyzing our facts to determine what the impact is expected to be under each method.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 orinvest in critical or complementary technologies, purchase facilities and capital equipment, repurchase our37 Table of Contentscommon stock and debentures under our repurchase program, pay dividends and finance working capital. Additionally, our investments in debt securities areliquid and available for future business needs.Fiscal 2018 Compared to Fiscal 2017Cash, Cash Equivalents and Short-term and Long-term InvestmentsThe combination of cash, cash equivalents and short-term and long-term investments as of March 31, 2018 and April 1, 2017 totaled $3.55 billion and $3.44billion, respectively. As of March 31, 2018, we had cash, cash equivalents and short-term investments of $3.45 billion and working capital of $3.21 billion.As of April 1, 2017, cash, cash equivalents and short-term investments were $3.32 billion and working capital was $2.98 billion.As of March 31, 2018, we had $1.45 billion of cash, cash equivalents and short-term investments held by our non-U.S. entities. The recent TCJA that wassigned into law on December 22, 2017 subjects U.S. companies to a one-time transition tax on total post-1986 earnings and profits of their foreignsubsidiaries. The TCJA also generally allows companies to repatriate these accumulated foreign earnings without incurring additional U.S. federal taxesbeginning after December 31, 2017. Accordingly, substantially all $1.45 billion of cash, cash equivalents and short-term investments held by our non-U.S.entities will be available for use in the U.S. without incurring additional U.S. federal income taxes. The one-time transition tax liability will be payable ineight annual installments, as outlined in "Contractual Obligations" below. See “Note 14. Income Taxes” to our consolidated financial statements, included inItem 8. "Financial Statements and Supplementary Data," for additional information about the one-time transition tax.During fiscal 2018, our operations generated net positive cash flow of $820.0 million, which was $114.1 million lower than the $934.1 million generatedduring fiscal 2017. The positive cash flow from operations generated during fiscal 2018 was primarily from net income as adjusted for non-cash related itemsand increases in income taxes payable and accrued liabilities. These items were partially offset by increases in accounts receivable, other assets and decreasesin deferred income to shipments to distributors and accounts payable.Net cash provided by investing activities was $948.2 million during fiscal 2018 as compared to $494.0 million in fiscal 2017. Net cash provided byinvesting activities during fiscal 2018 consisted of $1.02 billion of net sales and maturity of available-for-sale securities, which were partially offset by $49.9million of purchases of property, plant and equipment and other intangibles and $25.9 million of other investing activities.Net cash used in financing activities was $555.6 million in fiscal 2018, as compared to $965.2 million in fiscal 2017. Net cash used in financing activitiesduring fiscal 2018 consisted of $474.3 million of payment to repurchase common stock, $353.1 million of dividend payments to stockholders and $457.9million of payment for settlement of our $600.0 million principal amount of 2.625% convertible notes issued in June 2010 (2017 Convertible Notes), whichwere partially offset by $745.2 million of proceeds from issuance of long-term debt and $47.5 million from issuance of common stock under employee stockplans.Accounts ReceivableAccounts receivable increased by $128.2 million and days sales outstanding (DSO) increased to 53 days at March 31, 2018 from 38 days at April 1, 2017.The accounts receivable were primarily current. The increase was primarily due to timing of customer shipments and collections.InventoriesInventories increased to $236.1 million as of March 31, 2018 from $227.0 million as of April 1, 2017, while combined inventory days at Xilinx anddistribution decreased to 117 days at March 31, 2018 from 127 days at April 1, 2017. We attempt to maintain sufficient levels of inventory in variousproduct, package and speed configurations in order to keep lead times short and to meet forecasted customer demand as well as address potential supplyconstraints. Conversely, we also attempt to minimize the handling costs associated with maintaining higher inventory levels and to fully realize theopportunities 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 Equipment and Other Intangibles38 Table of ContentsDuring fiscal 2018, we invested $49.9 million in property, plant and equipment and other intangibles, as compared to $72.1 million in fiscal 2017. Primaryinvestments in fiscal 2018 were for machinery and equipment, building improvements, computer equipment and equipment related to the support of our newproducts development and infrastructures.Current LiabilitiesCurrent liabilities increased to $937.2 million at the end of fiscal 2018 from $897.2 million at the end of fiscal 2017. The changes were primarily due to a netincrease in our short-term portion of long-term debt, as we reclassified $499.2 million of our 2019 Notes to short term and paid $457.9 million for conversionof our 2017 Convertible Notes, as well as increases in our income taxes payable and accrued payroll and related liabilities. These increases were partiallyoffset by decreases of $35.3 million in other accrued liabilities and $29.4 million in deferred income on shipments to distributors.Temporary and Stockholders' EquityTemporary and stockholders' equity decreased $178.8 million during fiscal 2018 from $2.51 billion in fiscal 2017 to $2.33 billion in fiscal 2018. Thedecrease was primarily due to repurchase of common stock of approximately $474.3 million and $353.1 million of payment of dividends to stockholders.These decreases were partially offset by $512.4 million in net income for fiscal 2018 and $153.8 million of stock-based compensation.Fiscal 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 $3.56billion, 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. Asof 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. entities. From a financial statementperspective, approximately $1.13 billion of the $2.84 billion held by our non-U.S. entities 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, cashequivalents and short-term investments was permanently reinvested and, therefore, no U.S. current or deferred taxes accrued on this amount, which wasintended for investment in our operations outside the U.S.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 generatedduring fiscal 2016. The positive cash flow from operations generated during fiscal 2017 was primarily from net income as adjusted for non-cash related items,decrease in accounts receivable and increases in accrued liabilities, accounts payable and income taxes payable. These items were partially offset byincreases in inventories and other assets.Net cash provided by investing activities was $494.0 million during fiscal 2017, as compared to net cash used by investing activities of $423.9 million infiscal 2016. Net cash provided by investing activities during fiscal 2017 consisted of $587.4 million of net proceeds from sales and maturity of available-for-sale securities, which was partially offset by $72.1 million for purchases of property, plant and equipment and other intangibles and $21.4 million of otherinvesting 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 activitiesduring fiscal 2017 consisted of $522.0 million of cash payment to repurchase of common stock, $332.5 million of dividend payments to stockholders and$142.1 million of payment for settlement of our 2017 Convertible Notes, which were partially offset by $32.8 million of proceeds from issuance of commonstock under employee stock plans.Accounts ReceivableAccounts receivable decreased by $63.5 million and DSO decreased to 38 days at April 1, 2017 from 52 days at April 2, 2016. The decrease was primarily dueto 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 maintain39 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 demandas well as address potential supply constraints. Conversely, we also attempt to minimize the handling costs associated with maintaining higher inventorylevels and to fully realize the opportunities for cost reductions associated with architecture and manufacturing process advancements. We continually striveto balance these two objectives to provide excellent customer response at a competitive cost.Property, Plant and Equipment and Other IntangiblesDuring fiscal 2017, we invested $72.1 million in property, plant and equipment and other intangibles, as compared to $34.0 million in fiscal 2016. Primaryinvestments in fiscal 2017 were for building improvements, computer equipment and equipment related to the support of our new products development andinfrastructures.Current 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 apayment of $142.1 million for conversion of our 2017 Convertible Notes, which was partially offset by increases of $50.0 million in other accrued liabilitiesand $22.3 million 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 decreasewas primarily due to repurchase of common stock of approximately $522.0 million, $332.5 million of payment of dividends to stockholders and $18.1million of other comprehensive loss. These decreases were partially offset by $622.5 million in net income for fiscal 2017, $122.9 million of stock-basedcompensation, $32.8 million of net issuance of common stock under employee stock plans.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 ofaccess to the revolving credit facility; however, we can provide no assurance that access to the credit facility will not be impacted by adverse conditions inthe financial markets. 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 7.0 million shares of our common stock for approximately $474.3 million during fiscal 2018. During fiscal 2017, we repurchased 9.9 millionshares of common stock for approximately $522.0 million. During fiscal 2018, we paid $353.1 million in cash dividends to stockholders, representing $1.40per common share. During fiscal 2017, we paid $332.5 million in cash dividends to stockholders, representing $1.32 per common share. On April 25, 2018,our Board of Directors declared a cash dividend of $0.36 per common share for the first quarter of fiscal 2019. The dividend is payable on June 4, 2018 tostockholders of record as of May 15, 2018. Our common stock and debentures repurchase program and dividend policy could be impacted by, among otheritems, our views on potential future capital requirements relating to R&D, investments and acquisitions, legal risks, principal and interest payments on ourdebentures and other strategic 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 andbelow could affect our cash positions adversely.Contractual ObligationsThe following table summarizes our significant contractual obligations as of March 31, 2018 and the effect such obligations are expected to have on ourliquidity and cash flows in future periods. This table excludes amounts already recorded on our consolidated balance sheet as accounts payable, income taxespayable and other accrued liabilities as of March 31, 2018.40 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) $67.6 $8.9 $16.4 $10.5 $31.8Inventory and manufacturing-related purchase obligations (2) 157.8 157.8 — — —Electronic design automation and other licenses (3) 39.5 21.8 9.7 5.3 2.7Other ongoing operations (4) 28.9 7.9 19.5 1.0 0.52019 and 2021 Notes-principal and interest (5) 1,054.6 524.6 530.0 — —2024 Notes-principal and interest (5) 864.2 14.7 44.2 44.2 761.1Tax obligations (6) 512.5 — 89.1 89.1 334.3Total $2,725.1 $735.7 $708.9 $150.1 $1,130.4(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 rentalincome, under all operating leases was approximately $3.9 million for fiscal 2018. See "Note 8. Commitments" to our consolidated financial statements, included in Item 8."Financial Statements and 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 lengthysubcontractor lead times 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 receiveand pay for these materials and services in the next three to six months, as the products meet delivery and quality specifications.(3)As of March 31, 2018, we had $26.2 million of non-cancelable license obligations to providers of electronic design automation software and hardware/software maintenance and$13.3 million of other license expiring at various dates through March 2024.(4)As of March 31, 2018, we had $28.9 million commitments primarily related to open purchase orders from ordinary operations.(5)For purposes of this table we have assumed the outstanding principal of our debentures will be paid on maturity dates, which is March 15, 2019 for the 2019 Notes, March 15,2021 for the 2021 Notes and June 1, 2024 for the 2024 Notes. See "Note 12. Debt and Credit Facility" to our consolidated financial statements, included in Item 8. "FinancialStatements and Supplementary Data," for additional information about our debentures.(6)Tax obligations represent the future cash payments related to the one-time transition tax that resulted from the enactment of the TCJA as described in “Note 14. Income Taxes” toour consolidated financial statements, included in “Part II. Item 8, Financial Statements and Supplementary Data.”As of March 31, 2018, $523.9 million of liabilities were classified as long-term income taxes payable in the consolidated balance sheets. Of the $523.9million, $512.5 million was the estimated long-term portion of the one-time transition tax that resulted from the enactment of the TCJA. The remaining $11.4million of the long-term income taxes payable is for uncertain tax positions and related interest and penalties. Since the Company is unable to reasonablyestimate the timing of settlements and any future payments related to uncertain tax positions, these liabilities have been excluded from the contractualobligations table above.Off-Balance-Sheet ArrangementsAs of March 31, 2018, 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."Financial Statements and Supplementary Data," for information about recent accounting pronouncements, including the expected dates of adoption andestimated effects, if any, 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$2.18 billion as of March 31, 2018. Our primary aim with our investment portfolio is to invest available cash while preserving principal and meetingliquidity needs. Our investment portfolio includes, mortgage-backed securities, commercial mortgage-backed securities, financial institution securities, non-financial institution securities, student loan auction rate securities, U.S. and foreign government and agency securities, asset-backed securities, bank loansand debt mutual funds. In41 Table of Contentsaccordance with our investment policy, we place investments with high credit quality issuers and limit the amount of credit exposure to any one issuer basedupon the issuer's credit rating. These securities are subject to interest rate risk and will decrease in value if market interest rates increase. A hypothetical 100basis-point (one percentage point) increase or decrease in interest rates compared to rates at March 31, 2018 and April 1, 2017 would have affected the fairvalue of our investment portfolio by approximately $40.0 million and $60.0 million, respectively.Credit Market RiskThe global credit markets may experience adverse conditions that negatively impact the values of various types of investment and non-investment gradesecurities. The global credit and capital markets may experience significant volatility and disruption due to instability in the global financial system,uncertainty related to global economic conditions and concerns regarding sovereign 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 deteriorate. See "Note 4. Financial Instruments" to ourconsolidated 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 beenattained and the hedged relationship has been effective, are deferred and included in income or expenses in the same period that the underlying transaction issettled. Gains and losses on any instruments not meeting the above criteria are recognized in income or expenses in the consolidated statements of income asthey are incurred.We enter into forward currency exchange contracts to hedge our overseas operating expenses and other liabilities when deemed appropriate. As of March 31,2018 and April 1, 2017, we had the following outstanding forward currency exchange contracts (in notional amount): (In millions and U.S. dollars)March 31, 2018April 1, 2017Singapore Dollar$24.9$22.0Euro39.018.6Indian Rupee62.531.1British Pound8.110.8Japanese Yen3.83.8Chinese Yuan8.3—$146.6$86.3As part of our strategy to reduce volatility of operating expenses due to foreign exchange rate fluctuations, we employ a hedging program with forwardoutlook of up to two years for major foreign-currency-denominated operating expenses. The outstanding forward currency exchange contracts expire atvarious dates through February 2020. The net unrealized gains, which approximate the fair market value of the forward currency exchange contracts, areexpected to be recognized in the 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 thesesubsidiaries are translated at each quarter end during consolidation, fluctuations of exchange rates between the foreign currency and the U.S. dollar increaseor decrease the value of those investments. These fluctuations are recorded within stockholders' equity as a component of accumulated other comprehensiveincome (loss). Other monetary foreign-denominated assets and liabilities are revalued on a monthly basis with gains and losses on revaluation reflected in netincome. A hypothetical 10% favorable or unfavorable change in foreign currency exchange rates at March 31, 2018 and April 1, 2017 would have affectedthe annualized foreign-currency-denominated operating expenses of our foreign subsidiaries by less than $12.0 million for each year. In addition, ahypothetical 10% favorable or unfavorable change in foreign currency exchange rates compared to rates at March 31, 2018 and April 1, 2017 would haveaffected the value of foreign-currency-denominated cash and investments by less than $7.0 million and $5.0 million as of each date.42 Table of ContentsITEM 8.FINANCIAL STATEMENTS AND SUPPLEMENTARY DATAXILINX, INC.CONSOLIDATED STATEMENTS OF INCOME Years Ended(In thousands, except per share amounts)March 31, 2018 April 1, 2017 April 2, 2016Net revenues$2,539,004 $2,349,330 $2,213,881Cost of revenues756,368 708,216 671,907Gross margin1,782,636 1,641,114 1,541,974Operating expenses: Research and development639,750 601,443 533,891Selling, general and administrative362,329 335,150 331,652Amortization of acquisition-related intangibles2,152 5,127 6,550Executive transition costs33,351 — —Total operating expenses1,037,582 941,720 872,093Operating income745,054 699,394 669,881Interest and other income (expense), net5,357 (8,314) (33,056)Income before income taxes750,411 691,080 636,825Provision for income taxes238,030 68,568 85,958Net income$512,381 $622,512 $550,867Net income per common share: Basic$2.05 $2.47 $2.14Diluted$1.99 $2.32 $2.05Shares used in per share calculations: Basic249,595 252,301 257,184Diluted257,960 268,813 268,667See notes to consolidated financial statements.43 Table of ContentsXILINX, INC.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Years Ended(In thousands)March 31, 2018 April 1, 2017April 2, 2016Net income$512,381 $622,512 $550,867Other comprehensive income (loss), net of tax: Net change in unrealized losses on available-for-sale securities(8,211) (12,712) (916)Reclassification adjustment for (gains) losses on available-for-sale securities349 (3,119) (106)Net change in unrealized gains (losses) on hedging transactions5,517 (1,296) 15,004Reclassification adjustment for (gains) losses on hedging transactions(4,655) 1,701 (7,225)Cumulative translation adjustment, net2,375 (2,624) (2,239)Other comprehensive income (loss)(4,625) (18,050) 4,518Total comprehensive income$507,756 $604,462 $555,385See notes to consolidated financial statements.44 Table of ContentsXILINX, INC.CONSOLIDATED BALANCE SHEETS (In thousands, except par value amounts)March 31, 2018 April 1, 2017ASSETS Current assets: Cash and cash equivalents$2,179,328 $966,695Short-term investments1,268,242 2,354,762Accounts receivable, net of allowances for doubtful accounts of $3,170 and $3,200 in 2018 and 2017,respectively372,144 243,915Inventories236,077 227,033Prepaid expenses and other current assets88,695 87,711Total current assets4,144,486 3,880,116Property, plant and equipment, at cost: Land65,298 65,298Buildings343,373 339,923Machinery and equipment395,318 383,681Furniture and fixtures51,034 50,556855,023 839,458Accumulated depreciation and amortization(550,906) (535,633)Net property, plant and equipment304,117 303,825Long-term investments97,896 116,288Goodwill162,421 161,287Acquisition-related intangibles, net4,123 3,576Other assets342,644 275,440Total Assets$5,055,687 $4,740,532LIABILITIES, TEMPORARY EQUITY AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable$98,999 $108,293Accrued payroll and related liabilities206,367 176,601Income taxes payable47,713 6,309Deferred income on shipments to distributors25,166 54,567Other accrued liabilities59,772 95,098Current portion of long-term debt499,186 456,328Total current liabilities937,203 897,196Long-term debt1,214,440 995,247Deferred tax liabilities75 317,639Long-term income taxes payable523,864 4,503Other long-term liabilities49,870 16,908Commitments and contingencies (Note 8 and Note 16) Temporary equity (Note 12)— 1,406Stockholders' equity: Preferred stock, $.01 par value; 2,000 shares authorized; none issued and outstanding— —Common stock, $.01 par value; 2,000,000 shares authorized; 253,377 and 248,027 shares issued and outstandingin 2018 and 2017, respectively2,534 2,480Additional paid-in capital878,672 803,522Retained earnings1,483,538 1,726,312Accumulated other comprehensive loss(34,509) (24,681)Total stockholders’ equity2,330,235 2,507,633Total Liabilities, Temporary Equity and Stockholders’ Equity$5,055,687 $4,740,532See notes to consolidated financial statements.45 Table of ContentsXILINX, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended(In thousands)March 31, 2018 April 1, 2017 April 2, 2016Cash flows from operating activities: Net income$512,381 $622,512 $550,867Adjustments to reconcile net income to net cash provided by operating activities: Depreciation46,438 45,423 50,828Amortization50,316 17,203 17,613Stock-based compensation153,815 122,858 111,984Net (gain) loss on sale of available-for-sale securities689 (3,532) (370)Amortization of debt discount on convertible debentures2,548 11,692 12,048Provision for deferred income taxes(353,292) 67,482 44,128Others7,500 1,698 2,000Changes in assets and liabilities: Accounts receivable, net(128,229) 63,543 (60,843)Inventories(9,176) (48,244) 52,323Prepaid expenses and other current assets(9,727) (1,000) (1,261)Other assets(22,243) (20,557) (11,945)Accounts payable(16,691) 10,983 21,422Accrued liabilities (including executive transition costs)48,926 33,788 (16,592)Income taxes payable566,173 7,473 (11,635)Deferred income on shipments to distributors(29,401) 2,809 (14,312)Net cash provided by operating activities820,027 934,131 746,255Cash flows from investing activities: Purchases of available-for-sale securities(2,332,140) (2,817,197) (3,262,324)Proceeds from sale of available-for-sale securities1,161,410 695,030 268,887Proceeds from maturity of available-for-sale securities2,194,828 2,709,547 2,613,455Purchases of property, plant and equipment and other intangibles(49,918) (72,051) (34,004)Other investing activities(25,937) (21,379) (9,950)Net cash provided by (used in) investing activities948,243 493,950 (423,936)Cash flows from financing activities: Repurchases of common stock(474,254) (522,045) (443,181)Taxes paid related to net share settlement of restricted stock units(60,391) (35,392) (34,671)Proceeds from issuance of common stock through various stock plans47,454 68,184 85,765Payment of dividends to stockholders(353,053) (332,542) (318,988)Repayment of convertible debt(457,918) (142,082) —Proceeds from issuance of long-term debts745,175 — —Other financing activities(2,650) (1,325) —Net cash used in financing activities(555,637) (965,202) (711,075)Net increase (decrease) in cash and cash equivalents1,212,633 462,879 (388,756)Cash and cash equivalents at beginning of period966,695 503,816 892,572Cash and cash equivalents at end of period$2,179,328 $966,695 $503,816Supplemental disclosure of cash flow information: Interest paid$50,928 $41,375 $41,375Income taxes paid (refunded), net$25,343 $(6,341) $53,425Unsettled investment receivables$16,461 $21,558 $10,242Unsettled investment payables$5,860 $62,199 $25,572See notes to consolidated financial statements.46 Table of ContentsXILINX, INC.CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Common StockOutstanding AdditionalPaid-inCapital RetainedEarnings AccumulatedOtherComprehensiveIncome (Loss) TotalStockholders'Equity(In thousands, except per share amounts)Shares Amount Balance 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) 2,507,633Components of comprehensive income: Net income— — — 512,381 — 512,381Other comprehensive loss— — — — (4,625) (4,625)Reclassification of stranded tax effects (Note 2)— — — 5,203 (5,203) —Issuance of common shares under employee stock plans, net3,133 32 (12,969) — — (12,937)Repurchase and retirement of common stock(6,957) (70) (66,879) (407,305) — (474,254)Stock-based compensation expense— — 153,815 — — 153,815Stock-based compensation capitalized in inventory— — (131) — — (131)Temporary equity reclassification——1,406——1,406Exercise of warrants (Note 12)9,17492(92)— ——Cash dividends declared ($1.40 per common share)— — — (353,053) — (353,053)Balance as of March 31, 2018253,377 $2,534 $878,672 $1,483,538 $(34,509) $2,330,235See notes to consolidated financial statements.47 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 formof PLDs, software design tools and predefined system functions delivered as IP. In addition to its programmable platforms, the Company provides designservices, customer training, field engineering and technical support. The wafers used to manufacture its products are obtained primarily from independentwafer manufacturers located in Taiwan and Korea. The Company is dependent on these foundries to produce and deliver silicon wafers on a timely basis. TheCompany is also dependent on subcontractors, primarily located in the Asia Pacific region, to provide semiconductor assembly, test and shipment services.Xilinx is a global company with sales offices throughout the world. The Company derives over one-half of its revenues from international sales, primarily inthe 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 2018 and 2017 were a 52-week year ended onMarch 31, 2018 and April 1, 2017, respectively. Fiscal 2016 was a 53-week year, ended on April 2, 2016. Fiscal 2019 will be a 52-week year ending onMarch 30, 2019.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 thereported amounts of net revenues and expenses during the reporting period. Such estimates relate to, among others, the useful lives of assets, assessment ofrecoverability of property, 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 derivativefinancial instruments as well as other accruals or reserves. Actual results may differ from those estimates and such differences may be material to the financialstatements.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, financialinstitution securities, asset-back securities, commercial mortgage-backed securities, bank loans and debt mutual funds with original maturities greater thanthree months and remaining maturities less than one year from the balance sheet date. Long-term investments consist of mortgage-backed securities, debtmutual funds and asset-backed securities with remaining maturities greater than one year, unless the investments are specifically identified to fund currentoperations, in which case they are classified as short-term investments. Equity investments are also classified as long-term investments since they are notintended 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 foreigngovernment and agency securities, asset-backed securities, mortgage-backed securities, commercial mortgage-backed securities, bank time deposits, bankloans and debt mutual funds. This diversification of investments is consistent with its policy to maintain liquidity and ensure the ability to collect principal.The Company maintains an offshore investment portfolio denominated in U.S. dollars. All investments are made pursuant to corporate investment policyguidelines. Investments include Euro commercial paper, Euro dollar bonds, Euro dollar floating rate notes, offshore time deposits, U.S. and foreigngovernment and agency securities, asset-backed securities, commercial mortgage-backed securities, bank loans, debt mutual funds and mortgage-backedsecurities 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 sheetdate, although classification is not generally changed. Securities are classified as held-to-maturity when the Company has the positive intent and the abilityto hold the securities until maturity. Held-to-maturity securities are48 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, isincluded in interest income. No investments were classified as held-to-maturity as of March 31, 2018 or April 1, 2017. Available-for-sale securities are carriedat fair value with 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-salesecurities and declines in value judged to be other than temporary are included in interest and other expense, net. In determining if and when a decline invalue below the adjusted cost of marketable debt and equity securities is other than temporary, we evaluate on an ongoing basis the market conditions, trendsof earnings, financial condition, credit ratings, any underlying collateral and other key measures for our investments. The cost of securities matured or sold isbased 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'sability to meet business milestones and the financial condition and near-term prospects of the individual investee, including the rate at which the investee isusing its cash, the investee's need for possible additional funding at a lower valuation and bona fide offers to purchase the investee from a prospectiveacquirer. When a decline in value is deemed to be other than temporary, the Company recognizes an impairment loss in the current period's interest and otherexpense, net, to the extent of the decline.Accounts ReceivableThe allowance for doubtful accounts reflects the Company's best estimate of probable losses inherent in the accounts receivable balance. The Companydetermines the allowance based on the aging of Xilinx's accounts receivable, historical experience, known troubled accounts, management judgment andother currently available evidence. Xilinx writes off accounts receivable against the allowance when Xilinx determines a balance is uncollectible and nolonger actively pursues collection 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 comprisedof the following:(In thousands)March 31, 2018 April 1, 2017Raw materials$14,674 $14,517Work-in-process167,039 161,120Finished goods54,364 51,396 $236,077 $227,033The Company reviews and sets standard costs quarterly to approximate current actual manufacturing costs. The Company's manufacturing overheadstandards for product costs are calculated assuming full absorption of actual spending over actual volumes. Given the cyclicality of the market, theobsolescence of technology and product lifecycles, the Company writes down inventory based on forecasted demand and technological obsolescence. Theseforecasts are developed based on inputs from the Company's customers, including bookings and extended but uncommitted demand forecasts, and internalanalyses such as customer historical purchasing trends and actual and anticipated design wins, as well as market and economic conditions, technologychanges, new product introductions and changes in strategic direction. These factors require estimates that may include uncertain elements. The estimates offuture demand that the Company uses in the valuation of inventory are the basis for its published revenue forecasts, which are also consistent with our short-term manufacturing plans. The differences between the Company's demand forecast and the actual demand in the recent past have not resulted in any materialwrite down in the Company's inventory. If the Company's demand forecast for specific products is greater than actual demand and the Company fails toreduce manufacturing output accordingly, the Company could be required to write down additional inventory, which would have a negative impact on theCompany's gross margin.49 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 thestraight-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 forbuildings. Depreciation expense totaled $46.4 million, $45.4 million and $50.8 million for fiscal 2018, 2017 and 2016, 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 writtendown to their estimated fair values based on the expected discounted future cash flows attributable to the assets or based on appraisals. When assets areremoved from operations 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 2018, there was no impairment of goodwill in fiscal2018. Unless there are indicators of impairment, the Company's next impairment review for goodwill will be performed and completed in the fourth quarter offiscal 2019. To date, 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 2018, approximately 53% ofthe Company's net revenues were from products sold to distributors for subsequent resale to OEMs or their subcontract manufacturers. Revenue recognitiondepends on notification from the distributor that product has been sold to the distributor's end customer. Also reported by the distributor are product resaleprice, quantity and end customer shipment information, as well as inventory on hand. Reported distributor inventory on hand is reconciled to deferredrevenue balances monthly. The Company maintains system controls to validate distributor data and to verify that the reported information is accurate.Deferred income on shipments to distributors reflects the estimated effects of distributor price adjustments and the amount of gross margin expected to berealized when distributors sell through product purchased from the Company. Accounts receivable from distributors are recognized and inventory is relievedwhen title to inventories transfers, typically upon shipment from Xilinx at which point the Company has a legally enforceable right to collection undernormal payment terms.As of March 31, 2018, the Company had $31.8 million of deferred revenue and $6.6 million of deferred cost of revenues recognized as a net $25.2 million ofdeferred income on shipments to distributors. As of April 1, 2017, the Company had $74.2 million of deferred revenue and $19.6 million of deferred cost ofrevenues recognized as a net $54.6 million of deferred income on shipments to distributors. The deferred income on shipments to distributors that willultimately be recognized in the Company's consolidated statement of income will be different than the amount shown on the consolidated balance sheet dueto actual price adjustments 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 priceis fixed or determinable, title has transferred, collection of resulting receivables is reasonably assured, and there are no customer acceptance requirements andno remaining 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 recognizedwhen the 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.50 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 inthe functional currency are remeasured into U.S. dollars, and the resulting gains or losses are included in the consolidated statements of income under interestand other 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 fromforeign currencies into U.S. dollars at month-end exchange rates and statements of income are translated at the average monthly exchange rates. Exchangegains or losses arising from translation of foreign currency denominated assets and liabilities (i.e., cumulative translation adjustment) are included as acomponent of accumulated other 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 managementactivities. Xilinx uses derivative financial instruments to hedge fair values of underlying assets and liabilities or future cash flows which are exposed tointerest rate, foreign currency or commodity price fluctuations. The Company does not enter into derivative financial instruments for trading or speculativepurposes. See "Note 5. Derivative Financial 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 ofaccounting for share-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-date fair value of those awards, and to record that cost as compensation expense over the period during which the employee is required toperform service in exchange for the award (over the vesting period of the award). Additionally, the Company's ESPP is deemed to be a compensatory planunder the authoritative guidance of accounting for share-based payments. Accordingly, the ESPP is included in the computation of stock-basedcompensation expense.The Company uses the straight-line attribution method to recognize stock-based compensation costs over the requisite service period of the award. Uponexercise, cancellation or expiration of stock options, deferred tax assets for options with multiple vesting dates are eliminated for each vesting period on afirst-in, first-out basis 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 StandardsBoard (FASB) authoritative guidance for measuring uncertain tax positions. Under this method, deferred tax assets and liabilities are determined based on theexpected future tax consequences of temporary differences between the carrying amounts of assets and liabilities for financial and income tax reportingpurposes.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 isprobable and can be reasonably estimated. As of the end of both fiscal 2018 and 2017, 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 inthe event 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 lesserextent, the Company may from time-to-time offer limited indemnification with respect to its software products. The terms and conditions of these indemnityobligations are limited by contract, which obligations are typically perpetual from the effective date of the agreement. The Company has historicallyreceived only a limited number of requests for indemnification under these provisions and has not made any significant payments51 Table of Contentspursuant to these provisions. The Company cannot estimate the maximum amount of potential future payments, if any, that the Company may be required tomake as a result of these obligations due to the limited history of indemnification claims and the unique facts and circumstances that are likely to beinvolved in each particular claim and indemnification provision. However, there can be no assurances that the Company will not incur any financialliabilities 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 March 31, 2018 and April 1, 2017, Avnet accounted for 60%and 59% of the Company's total net accounts receivable, respectively. Resale of product through Avnet accounted for 43%, 44% and 50% of the Company'sworldwide net revenues in fiscal 2018, 2017 and 2016, respectively. The percentage of net accounts receivable due from Avnet and the percentage ofworldwide net 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 amountsrecorded on the consolidated balance sheet. The Company attempts to mitigate the concentration of credit risk in its trade receivables through its creditevaluation process, collection terms and distributor sales to diverse end customers and through geographical dispersion of sales. Xilinx generally does notrequire collateral for receivables 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 91% of its portfolio in AA (or itsequivalent) or higher grade securities as rated by Standard & Poor's or Moody's Investors Service equivalent. The Company's methods to arrive at investmentdecisions are not solely based on the rating agencies' credit ratings. Xilinx also performs additional credit due diligence and conducts regular portfolio creditreviews, including a review of counterparty credit risk related to the Company's forward currency exchange contracts. Additionally, Xilinx limits itsinvestments in the debt securities of a single issuer based upon the issuer's credit rating and attempts to further mitigate credit risk by diversifying risk acrossgeographies and type of issuer.As of March 31, 2018, approximately 24% of the portfolio consisted of mortgage-backed securities. All of the mortgage-backed securities in the investmentportfolio were 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 gradesecurities. The global credit and capital markets may experience significant volatility and disruption due to instability in the global financial system,uncertainty related to global economic conditions and concerns regarding sovereign 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 deteriorate. See "Note 4. Financial Instruments" for atable of the Company's available-for-sale securities.Recent Accounting Pronouncements AdoptedOn February 14, 2018, the FASB issued final guidance that gives entities the option to reclassify to retained earnings tax effects related to items inaccumulated other comprehensive income (OCI) that were stranded in accumulated OCI as a result of the TCJA. The stranded tax effects result from thechange in the federal tax rate for deferred taxes recorded in accumulated OCI. Upon adoption, the standard requires all entities to make new disclosures,regardless of whether they elect to reclassify stranded amounts. The new guidance may be applied retrospectively to each period in which the effect of theTCJA is recognized or in the period of adoption. The guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interimperiods within those fiscal years. Early adoption is permitted. The Company decided to early adopt it in the fourth quarter of fiscal 2018. As a result, thestranded tax effects in accumulated OCI of $5.2 million, primarily related to unrealized losses on available-for-sale securities, were reclassified to retainedearnings.Recent Accounting Pronouncements Not Yet AdoptedRevenue RecognitionIn April 2014, the FASB issued the authoritative guidance, as amended, that outlines a new global revenue recognition standard that replaces virtually allexisting U.S. GAAP guidance on contracts with customers and the related other assets and deferred costs.52 Table of ContentsThe authoritative guidance provides a five-step process for recognizing revenue that depicts the transfer of promised goods or services to customers in anamount that reflects the consideration to which the entity expects to be entitled, in exchange for those goods or services. The new guidance also requiresexpanded qualitative and quantitative disclosures relating to the nature, amount, timing and uncertainty of revenue and cash flows arising from contractswith customers. The new guidance is required to be applied retrospectively to each prior reporting period presented (Full Retrospective), or retrospectivelywith the cumulative effect of initially applying it recognized at the date of initial application. The Company will adopt the new guidance beginning in itsfiscal 2019, using the Full Retrospective method, and restate the comparative prior periods.The most significant impact of the new guidance to the Company relates to recognition of revenue and cost from distributor sales. Under the new guidance,the Company is required to recognize revenue and cost relating to distributor sales upon product delivery (Sell-In), subject to estimated allowance fordistributor price adjustments and rights of return, rather than deferring the distributor sales upon product delivery and subsequently recognizing revenuewhen the product is sold by the distributor to the end customer (Sell-Through). Upon adoption, the Company expects that it will record the cumulativebalance of the deferred revenue, adjusted for estimates of distributor price adjustments and returns, and related costs under the Sell-Through method toretained earnings. Consolidated financial statements for the years ended April 1, 2017 and March 31, 2018 will be restated in accordance with the newguidance under the Sell-In method.The Company has substantially completed its assessment of the new guidance, and implemented changes to its policies and procedures as well as internalcontrols surrounding such guidance. The adoption of the new guidance has no impact on cash provided by or used in operating, financing, or investingactivities on the Consolidated Statements of Cash Flows. The impact of this new guidance to the Company's fiscal 2018 and 2017 consolidated financialstatements is expected as follows:March 31, 2018 April 1, 2017(In thousands, except per share amounts)As Reported As Adjusted As Reported As AdjustedConsolidated Statements of Income: Net revenues$2,539,004 $2,467,023 $2,349,330 $2,356,742Cost of revenues756,368 743,419 708,216 708,632Gross margin1,782,636 1,723,604 1,641,114 1,648,110Operating income745,054 686,022 699,394 706,390Net income512,381 463,981 622,512 628,133Net income per common share: Basic$2.05 $1.86 $2.47 $2.49Diluted$1.99 $1.80 $2.32 $2.34 Consolidated Balance Sheets: Accounts receivable$372,144 $382,246 $243,915 $283,850Other assets342,644 337,402 275,440 272,407Deferred income on shipments to distributors25,166 — 54,567 —Other accrued liabilities59,772 59,680 95,098 95,209Deferred tax liabilities75 75 317,639 330,479Retained earnings1,483,538 1,513,656 1,726,312 1,804,830Other PronouncementsIn January 2016, the FASB issued final authoritative guidance regarding how companies measure equity investments that do not result in consolidation andare not accounted for under the equity method and how they present changes in the fair value of financial liabilities measured under the fair value option thatare attributable to their own credit. The new authoritative guidance also changes certain disclosure requirements and other aspects of current US GAAP onthis matter. The new guidance does not change the guidance for classifying and measuring investments in debt securities and loans. The authoritativeguidance is effective for public business entities for annual periods beginning after December 15, 2017, and interim periods within those annual periods,which for Xilinx would be the first quarter of fiscal 2019. Upon adoption, the Company would record the ending balance of the unrealized gains or losses asof the end of fiscal 2018 of $11.0 million from its investment in mutual funds and equity securities to retained53 Table of Contentsearnings, less the applicable deferred tax portion, and subsequent changes in fair value from such investments will be recorded under its consolidatedstatements of income.In February 2016, the FASB issued 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 flowsfrom leases. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding leaseobligation. The new authoritative guidance is effective for public business entities for fiscal years beginning after December 15, 2018, and interim periodswithin those fiscal years, which for Xilinx would be the first quarter of fiscal 2020. Early adoption is permitted. The new authoritative guidance must beadopted using a modified retrospective transition with application of the new authoritative guidance being the beginning of the earliest comparative periodpresented. To help with the transition to the new guidance, certain practical expedients are provided. The Company is currently evaluating the impact of thisnew 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 assettransfers other 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 thetransfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The new authoritative guidance will be effective for publicbusiness entities in fiscal years beginning after December 15, 2017. Early adoption is permitted as of the beginning of the annual period. The authoritativeguidance will be effective for the Company beginning in fiscal 2019 as the Company decided not to early adopt it in fiscal 2018. The Company is currentlyevaluating the impact of this new authoritative guidance on its consolidated financial statements.In May 2017, the FASB issued authoritative guidance that clarifies the scope of modification accounting for share-based compensation. Under the newguidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award (as equity or liability) changesas a result of the change in terms or conditions. The new guidance will reduce diversity in practice and result in fewer changes to the terms of an award beingaccounted for as modifications. The new authoritative guidance will be effective for public business entities in fiscal years beginning after December 15,2017, which for Xilinx would be the first quarter of fiscal 2019. Early adoption is permitted as of the beginning of the annual period. The authoritativeguidance will be effective for the Company beginning in fiscal 2019 as the Company decided not to early adopt it in fiscal 2018. This authoritative guidancedoes not have material impact on the Company's consolidated financial statement. The Company will continually evaluate the impact of this newauthoritative guidance.In August 2017, the FASB issued authoritative guidance that amended the accounting for hedging activities. The guidance permits more hedging strategiesto be eligible for hedge accounting and simplifies the application of hedge accounting guidance in areas where practice issues exist. The new authoritativeguidance will be effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15,2018, which for Xilinx would be the first quarter of fiscal 2020. Early adoption is permitted, including adoption in any interim periods after issuance of theauthoritative guidance. The Company is currently evaluating the impact of this new authoritative guidance 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 orpaid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. When determining the fair valuemeasurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market inwhich Xilinx would transact and also considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk,transfer restrictions and risk of nonperformance.The Company determines the fair value for marketable debt and equity securities using industry standard pricing services, data providers and other third-party sources and by internally performing valuation testing and analysis. The Company primarily uses a consensus price or weighted-average price for itsfair value assessment. The Company determines the consensus price using market prices from a variety of industry standard pricing services, data providers,security master files from large financial institutions and other third party sources and uses those multiple prices as inputs into a distribution-curve-basedalgorithm to determine the daily market value. The pricing services use multiple inputs to determine market prices, including reportable trades, benchmarkyield curves, credit spreads and broker/dealer quotes as well as other industry and economic events. For certain securities with short maturities, such asdiscount commercial paper and certificates of deposit, the security is accreted from purchase price to face value at maturity. If a subsequent transaction on thesame security is observed in the marketplace, the price on the subsequent transaction is used as the current daily market price and the security will be accretedto face value based on the revised price.54 Table of ContentsThe 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 2018 and the Company did not adjust or override any fair value measurements as of March 31, 2018.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, money market funds and marketable equity securities.Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quotedprices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observablemarket data for substantially the full term of the asset or liability.The Company's Level 2 assets consist of financial institution securities, non-financial institution securities, U.S. agency securities, foreign government andagency securities, mortgage-backed securities, debt mutual funds, bank loans, asset-backed securities and commercial mortgage-backed securities. TheCompany's Level 2 assets and liabilities also include foreign currency forward contracts and interest rate 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 ofthe fair value of the assets or liabilities. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models,discounted cash flow methodologies or similar valuation techniques, as well as significant management judgment or estimation.The Company has no Level 3 assets and liabilities measured at fair value on a recurring basis.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 determinedbased on the lowest level input that is significant to the fair value measurement in its entirety. The Company's assessment of the significance of a particularitem to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The followingtables present information about the Company's assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and April 1, 2017:55 Table of Contents March 31, 2018(In thousands) QuotedPrices inActiveMarkets forIdenticalInstruments(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Total FairValueAssets Cash equivalents: Money market funds $1,291,891 $— $— $1,291,891Financial institution securities — 359,901 — 359,901Non-financial institution securities — 242,904 — 242,904U.S. government and agency securities 996 34,999 — 35,995Foreign government and agency securities — 179,957 — 179,957Short-term investments: Financial institution securities — 75,000 — 75,000Non-financial institution securities — 81,939 — 81,939U.S. government and agency securities 3,639 19,008 — 22,647Mortgage-backed securities — 844,397 — 844,397Asset-backed securities — 91,389 — 91,389Commercial mortgage-backed securities — 152,870 — 152,870Long-term investments: Debt mutual fund — 89,670 — 89,670Marketable equity securities 8,226 — — 8,226Total assets measured at fair value $1,304,752 $2,172,034 $— $3,476,786Liabilities Derivative financial instruments, net $— $26,091 $— $26,091Total liabilities measured at fair value $— $26,091 $— $26,091Net assets measured at fair value $1,304,752 $2,145,943 $— $3,450,69556 Table of Contents April 1, 2017(In thousands) QuotedPrices inActiveMarkets forIdenticalInstruments(Level 1) SignificantOtherObservableInputs(Level 2) SignificantUnobservableInputs(Level 3) Total FairValueAssets 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 securities2,99850,984—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 securities31,73244,820—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$3,033,557$—$3,366,594For certain of the Company’s financial instruments, including cash held in banks, accounts receivable and accounts payable, the carrying amountsapproximate fair value 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): (In thousands) March 31, 2018 April 1, 2017Balance as of beginning of period $— $9,977Total realized and unrealized gains (losses): Included in other comprehensive income (loss) — 523Sales and settlements, net — (10,500)Balance as of end of period $— $—As of March 31, 2018, the Company held no marketable securities measured at fair value using Level 3 inputs. 57 Table of ContentsFinancial Instruments Not Recorded at Fair Value on a Recurring BasisThe Company's $500.0 million principal amount of 2.125% notes due March 15, 2019 (2019 Notes), $500.0 million principal amount of 3.000% notes dueMarch 15, 2021 (2021 Notes) and $750.0 million principal amount of 2.950% senior notes due June 1, 2024 (2024 Notes) are measured at fair value on aquarterly basis for disclosure purposes. The fair values of the 2019 Notes, 2021 Notes and 2024 Notes as of March 31, 2018 were approximately $496.6million, $498.9 million and $719.7 million, respectively, based on the last trading price of the respective debentures for the period (classified as Level 2 infair value hierarchy due to relatively low trading volume).Assets and Liabilities Measured at Fair Value on a Non-Recurring BasisAs of March 31, 2018, the Company had non-marketable equity securities in private companies of $36.7 million (adjusted cost, which approximates fairvalue). The Company’s investments in non-marketable securities of private companies are accounted for by using the cost method. The fair value of theCompany’s cost method investments is not estimated if there are no identified events or changes in circumstances that may have a significant adverse effecton the fair value of these investments. These investments are measured at fair value on a non-recurring basis when they are deemed to be other-than-temporarily impaired. In determining whether a decline in value of non-marketable equity investments in private companies has occurred and is other thantemporary, an assessment is made by considering available evidence, including the general market conditions in the investee’s industry, the investee’sproduct development status and subsequent rounds of financing and the related valuation and/or Xilinx’s participation in such financings. The Companyalso assesses the investee’s ability to meet business milestones, the financial condition and near-term prospects of the individual investee, including the rateat 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 investeefrom a prospective acquirer. The valuation methodology for determining the fair value of non-marketable equity securities is based on the factors notedabove which require management judgment and are Level 3 inputs. The impairments loss for non-marketable equity securities were not material during allperiods presented.Note 4.Financial InstrumentsThe following is a summary of cash equivalents and available-for-sale securities as of the end of the periods presented:March 31, 2018 April 1, 2017(In thousands)Amortized Cost GrossUnrealizedGains GrossUnrealizedLosses Estimated FairValue Amortized Cost GrossUnrealizedGains GrossUnrealizedLosses Estimated FairValueMoney market funds$1,291,891 $— $— $1,291,891 $298,307 $— $— $298,307Financial institution securities434,901 — — 434,901 348,797 — — 348,797Non-financial institution securities326,219 — (1,376) 324,843 409,109 647 (496) 409,260U.S. government and agency securities58,913 1 (272) 58,642 130,749 8 (223) 130,534Foreign government and agency securities179,957 — — 179,957 322,172 — (51) 322,121Mortgage-backed securities866,048 660 (22,311) 844,397 1,186,732 3,527 (14,757) 1,175,502Asset-backed securities92,751 16 (1,378) 91,389 220,033 404 (686) 219,751Debt mutual funds101,350 — (11,680) 89,670 101,350 — (12,674) 88,676Bank loans— — — — 153,281 839 (106) 154,014Commercial mortgage- backed securities156,296 1 (3,427) 152,870 221,504 146 (3,679) 217,971Marketable equity securities7,500 726 — 8,226 — — — —$3,515,826 $1,404 $(40,444) $3,476,786 $3,392,034 $5,571 $(32,672) $3,364,933Financial 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 March 31, 2018 and April 1, 2017.58 Table of ContentsThe following tables show the fair values and gross unrealized losses of the Company's investments, aggregated by investment category, for individualsecurities that have been in a continuous unrealized loss position for the length of time specified, as of March 31, 2018 and April 1, 2017:March 31, 2018Less Than 12 Months12 Months or GreaterTotal(In thousands)Fair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesFair ValueGrossUnrealizedLossesNon-financial institution securities$69,780$(1,146)$8,344$(230)$78,124$(1,376)U.S. government and agency securities13,471(176)9,176(96)22,647(272)Mortgage-backed securities510,988(11,048)299,663(11,263)810,651(22,311)Asset-backed securities57,128 (876) 32,696 (502) 89,824 (1,378)Debt mutual funds——89,670(11,680)89,670(11,680)Commercial mortgage- backed securities95,435 (1,760) 56,051 (1,667) 151,486 (3,427)$746,802$(15,006)$495,600$(25,438)$1,242,402$(40,444)April 1, 2017Less Than 12 Months 12 Months or Greater Total(In thousands)Fair Value GrossUnrealizedLosses Fair Value GrossUnrealizedLosses Fair Value GrossUnrealizedLossesNon-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)As of March 31, 2018, the gross unrealized losses that had been outstanding for less than twelve months were primarily related to mortgage-backed securitiesdue to the general rising of the interest-rate environment, although the percentage of such losses to the total estimated fair value of the mortgage-backedsecurities was relatively insignificant. The gross unrealized losses that had been outstanding for more than twelve months were primarily related to debtmutual funds and mortgage-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 March 31, 2018 and April 1,2017 were temporary in nature as evidenced by the fluctuations in the gross unrealized losses within the investment categories. These investments are highlyrated by the credit rating agencies, there have been no defaults on any of these securities and we have received interest payments as they become due.Therefore, the Company believes that it will be able to collect both principal and interest amounts due to the Company. Additionally, in the past severalyears a portion of the Company's investment in 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 March 31, 2018 and April 1, 2017, the majority ofwhich are related to debt mutual funds and mortgage-backed securities due to foreign currency and interest rate59 Table of Contentsfluctuations. The Company neither intends to sell these investments nor concludes that it is more-likely-than-not that it will have to sell them until recoveryof 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 and commercial mortgage-backed securities), by contractual maturity,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. March 31, 2018(In thousands)AmortizedCostEstimatedFair ValueDue in one year or less$926,730$926,683Due after one year through five years196,341192,880Due after five years through ten years150,139146,302Due after ten years841,875821,134$2,115,085$2,086,999As of March 31, 2018, $1.16 billion of marketable debt securities with contractual maturities of greater than one year were classified as short-terminvestments. Additionally, the above table does not include investments in money market, debt mutual funds and equity securities because these securitiesdo not have specific contractual maturities.Certain information related to available-for-sale securities is as follows: Years Ended(In thousands)March 31, 2018April 1, 2017April 2, 2016Proceeds from sale of available-for-sale securities$1,161,410$695,030$268,887Gross realized gains on sale of available-for-sale securities$7,258$6,989 $1,248Gross realized losses on sale of available-for-sale securities(7,947)(3,457) (878)Net realized gains (losses) on sale of available-for-sale securities$(689)$3,532 $370Amortization of premiums on available-for-sale securities$24,569$29,360 $26,613The 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 aresult of the use of derivative financial instruments, the Company is exposed to the risk that counterparties to derivative contracts may fail to meet theircontractual obligations. The Company manages counterparty credit risk in derivative contracts by reviewing counterparty creditworthiness on a regular basis,establishing collateral requirement and limiting exposure to any single counterparty. The right of set-off that exists with certain transactions enables theCompany to net amounts due to and from the counterparty, reducing the maximum loss from credit risk in the event of counterparty default.The Company entered into interest rate swap contracts with certain independent financial institutions to manage interest rate risks related to fixed interestrate expenses from its 2024 Notes and floating interest rate income from its investments in marketable debt securities. See “Note 10. Debt and Credit Facility”for more discussion related to interest rate swap contracts. The interest rate swap contracts were designated and qualified as fair value hedges of the 2024Notes, and were separately accounted for as a derivative. The interest rate swap contracts and the 2024 Notes were initially measured at fair value. Anysubsequent changes in fair values of the interest rate swap contracts and the 2024 Notes will be recorded in the Company’s consolidated balance sheets.During the nine months ended March 31, 2018, the net change in fair values of the interest rate swap contracts and the underlying 2024 Notes was $29.0million, which was recorded as a derivative liability for the interest rate swap contacts (as a component of other long-term liabilities on the consolidatedbalance sheets) and also a reduction from the carrying amount of 2024 Notes. There was no ineffectiveness during all periods presented. Other than thisarrangement, there have been no material changes to the Company's derivative financial instruments since April 1, 2017.60 Table of ContentsAs of March 31, 2018 and April 1, 2017, the Company had the following outstanding forward currency exchange contracts (in notional amount), which werederivative financial instruments: (In thousands and U.S. dollars)March 31, 2018April 1, 2017Singapore Dollar$24,914$22,012Euro38,98718,553Indian Rupee62,47231,121British Pound8,15510,813Japanese Yen3,8593,757Chinese Yuan8,260—$146,647$86,256As part of the Company's strategy to reduce volatility of operating expenses due to foreign exchange rate fluctuations, the Company employs a hedgingprogram with a forward outlook of up to two years for major foreign-currency-denominated operating expenses. The outstanding forward currency exchangecontracts expire at various dates through February 2020. The net unrealized gains, which approximate the fair market value of the outstanding forwardcurrency exchange contracts, are expected to be recognized in the consolidated statements of income within the next two years.As of March 31, 2018, all of the forward foreign currency exchange contracts were designated and qualified as cash flow hedges and the effective portion ofthe gain or loss on the forward contracts was reported as a component of other comprehensive income (loss) and reclassified into net income in the sameperiod during which the hedged transaction affects earnings. The estimated amount of such gains or losses as of March 31, 2018 that is expected to bereclassified into earnings was not material. The ineffective portion of the gains or losses on the forward contracts was included in the net income for allperiods presented.The Company may enter into forward foreign currency exchange contracts to hedge firm commitments such as acquisitions and capital expenditures. Gainsand losses on foreign currency forward contracts that are designated as hedges of anticipated transactions, for which a firm commitment has been attained andthe hedged relationship has been effective, are deferred and included in income or expenses in the same period that the underlying transaction is settled.Gains and losses on any instruments not meeting the above criteria are recognized in income or expenses in the consolidated statements of income as they areincurred.The Company had the following derivative instruments as of March 31, 2018 and April 1, 2017, 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 ValueMarch 31, 2018Prepaid expenses and othercurrent assets$2,922Other accrued liabilities$12April 1, 2017Prepaid expenses and othercurrent assets2,424Other accrued liabilities763 The Company does not offset or net the fair value amounts of derivative financial instruments in its consolidated balance sheets. The potential effect of rightsof set-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 2018 and 2017:61 Table of Contents Foreign Exchange Contracts Years End(In thousands)March 31, 2018 April 1, 2017Amount of gains recognized in other comprehensive income on derivative (effective portion of cash flowhedging)$862 $405Amount of gain/(losses) reclassified from accumulated other comprehensive income into income (effectiveportion) *4,655 (1,701)Amount of (losses)/gains recorded (ineffective portion) *(14) 31*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 aproprietary interest in the Company.Stock-Based CompensationThe 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 Amended and Restated 1990 Employee Qualified Stock Purchase Plan (ESPP): Years Ended(In thousands)March 31, 2018 April 1, 2017 April 2, 2016Stock-based compensation included in: Cost of revenues$8,492 $8,014 $7,977Research and development76,790 66,822 59,692Selling, general and administrative51,912 48,022 44,315Executive transition costs16,621 — —Stock-based compensation effect on income before taxes153,815 122,858 111,984Income tax effect(40,188) (37,752) (34,119)Net stock-based compensation effect on net income$113,627 $85,106 $77,865The Company adjusts stock-based compensation on a quarterly basis for changes to the estimate of expected equity award forfeitures based on actualforfeiture experience. The effect of adjusting the forfeiture rate for all expense amortization was recognized in the period the forfeiture estimate was changed,and was not material for all periods presented.During fiscal 2018, 2017 and 2016, there were no options granted and therefore the Company's stock-based compensation expense related to options, and thenumber of options outstanding as of March 31, 2018, were not material.As of March 31, 2018 and April 1, 2017, the ending inventory balances included $2.1 million and $2.2 million of capitalized stock-based compensation,respectively. During fiscal 2018, 2017 and 2016, the tax benefit realized for the tax deduction from restricted stock units (RSUs) and other awards totaled$60.6 million, $53.3 million and $56.3 million, respectively. The tax deduction includes amounts credited to income tax expense in fiscal 2018 and 2017,and additional paid-in capital in fiscal 2016.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 exerciseactivity as well as the expected disposition of all options outstanding. The expected life of options granted also considers the actual contractual term.62 Table of ContentsThe weighted-average fair value per share of stock purchase rights granted under the ESPP during fiscal 2018, 2017 and 2016 were $17.95, $13.00 and$11.12, respectively. These fair values per share were estimated at the date of grant using the following weighted-average assumptions: Employee Stock Purchase Plan Fiscal 2018 Fiscal 2017 Fiscal 2016Expected life of options (years)1.3 1.3 1.3Expected stock price volatility0.29 0.24 0.26Risk-free interest rate1.6% 0.7% 0.5%Dividend yield2.1% 2.4% 2.7%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 valueof dividends expected to be paid on Xilinx common stock prior to vesting. The per share weighted-average fair value of RSUs granted during fiscal 2018,2017 and 2016 were $60.18, $44.38 and $41.19, respectively. The weighted average fair value of RSUs granted in fiscal 2018, 2017 and 2016 werecalculated based on estimates at the date of grant using the following weighted-average assumptions: Fiscal 2018 Fiscal 2017 Fiscal 2016Risk-free interest rate1.8% 0.9% 1.3%Dividend yield2.2% 2.8% 2.8%As of March 31, 2018, total unrecognized stock-based compensation costs related to ESPP was $13.9 million. The total unrecognized stock-basedcompensation cost for ESPP is expected to be recognized over a weighted-average period of 0.8 years.Equity Incentive PlansAs of March 31, 2018, 11.3 million shares are available for future grants under the 2007 Equity Incentive Plan (2007 Equity Plan). The contractual term forstock awards granted under the 2007 Equity Plan is seven years from the grant date. Stock awards granted to existing and newly hired employees generallyvest over a four-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 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 12,459Additional shares reserved 1,900RSUs granted (3,718)RSUs cancelled 701March 31, 2018 11,342The types of awards allowed under the 2007 Equity Plan include incentive stock options, non-qualified stock options, RSUs, restricted stock and stockappreciation rights. To date, the Company has issued a mix of non-qualified stock options and RSUs under the 2007 Equity Plan.63 Table of ContentsThe total pre-tax intrinsic value of options exercised during fiscal 2018 and 2017 was $4.1 million and $28.0 million, respectively. This intrinsic valuerepresents the 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.RSU 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 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 Granted3,718 $60.18 Vested (2)(3,016) $43.30 Cancelled(701) $48.16 March 31, 20186,989 $51.39 2.37 $504,733 Expected to vest as of March 31, 20185,585 $51.46 2.36 $403,490(1)Aggregate intrinsic value for RSUs represents the closing price per share of Xilinx's stock on March 31, 2018 of $72.24, multiplied by the number of RSUs outstanding orexpected to vest as of March 31, 2018.(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 $130.6 million were vested during fiscal 2018. As of March 31, 2018, total unrecognized stock-based compensation costs related tonon-vested RSUs was $239.1 million. The total unrecognized stock-based compensation cost for RSUs is expected to be recognized over a weighted-averageperiod of 2.7 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-month exercise period. Participation is limited to 15% of the employee's annual earnings up to a maximum of $21 thousand in a calendar year.Approximately 86% of all eligible employees participated in the ESPP. The purchase price of the stock is 85% of the lower of the fair market value at thebeginning of the 24-month offering period or at the end of each six-month exercise period. Employees purchased 0.9 million shares for $44.3 million in fiscal2018, 1.2 million shares for $39.5 million in fiscal 2017, and 1.1 million shares for $37.6 million in fiscal 2016. The next scheduled purchase under the ESPPis in the second quarter of fiscal 2019. As of March 31, 2018, 9.3 million shares were available for future issuance.64 Table of ContentsNote 7. Supplemental Financial InformationThe following tables disclose the current liabilities that individually exceed 5% of the respective consolidated balance sheet amounts in each fiscal year.Individual balances that are less than 5% of the respective consolidated balance sheet amounts are aggregated and disclosed as "other."(In thousands)March 31, 2018 April 1, 2017Accrued payroll and related liabilities: Accrued compensation$95,316 $81,701 Deferred compensation plan liability103,434 88,110 Other7,617 6,790$206,367 $176,601(In thousands)March 31, 2018 April 1, 2017Other accrued liabilities: Interest payable$14,169 $4,492 Unsettled investment transactions5,860 62,199 Other39,743 28,407$59,772 $95,098Note 8.CommitmentsXilinx leases some of its facilities and office buildings under non-cancelable operating leases that expire at various dates through April 2029. 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 settledin an up-front payment in June 2006. Some of the operating leases for facilities and office buildings require payment of operating costs, including propertytaxes, repairs, maintenance and insurance. Most of the Company's leases contain renewal options for varying terms. Xilinx also leases cars under non-cancelable operating leases that expire at various dates through December 2021. Approximate future minimum lease payments under non-cancelableoperating leases are as follows:Fiscal(In thousands)2019$8,89820209,42720217,00920225,67620234,788Thereafter31,757Total$67,555Aggregate future rental income to be received, which includes rents from both owned and leased property, totaled $9.3 million as of March 31, 2018. Rentexpense, net of rental income, under all operating leases was $3.9 million for fiscal 2018, $5.0 million for fiscal 2017, and $4.5 million for fiscal 2016. Rentalincome was not material for fiscal 2018, 2017 or 2016.Other commitments as of March 31, 2018 totaled $157.8 million and consisted of purchases of inventory and other non-cancelable purchase obligationsrelated to subcontractors that manufacture silicon wafers and provide assembly and test services. The Company expects to receive and pay for these materialsand services in the next three to six months, as the products meet delivery and quality specifications. Additionally, as of March 31, 2018, the Company had$26.2 million of non-cancelable license obligations to providers of electronic design automation software and hardware/software maintenance and $28.9million commitments primarily related to open purchase orders from ordinary operations. These commitments expire at various dates through December2022.65 Table of ContentsNote 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,and there are no reconciling items in the numerator used to compute diluted net income per common share. The following table summarizes the computationof basic and diluted net income per common share: Years Ended(In thousands, except per share amounts)March 31, 2018 April 1, 2017 April 2, 2016Net income available to common stockholders$512,381 $622,512 $550,867Weighted average common shares outstanding-basic249,595 252,301 257,184Dilutive effect of employee equity incentive plans2,754 2,284 2,260Dilutive effect of 2017 Convertible Notes and warrants5,61114,228 9,223Weighted average common shares outstanding-diluted257,960 268,813 268,667Basic earnings per common share$2.05 $2.47 $2.14Diluted earnings per common share$1.99 $2.32 $2.05The total shares used in the denominator of the diluted net income per common share calculation include potentially dilutive common equivalent sharesoutstanding that are not included in basic net income per common share calculation. The diluted shares were calculated by applying the treasury stockmethod to the impact of the equity incentive plans, the incremental shares issuable assuming conversion of the Company's $600.0 million principal amountof 2.625% convertible notes issued in June 2010 (2017 Convertible Notes), before its maturity on June 15, 2017, and exercise of warrants on a weighted-average outstanding basis, before the final settlements during the third quarter of fiscal 2018. The 2017 Convertible Notes matured during the first quarter offiscal 2018, and the Company exercised its call options to neutralize the dilutive effect of the incremental shares from the 2017 Convertible Notes. Becausethe number of diluted shares in the above table for the 12 months ended March 31, 2018 was calculated based on a weighted-average outstanding basis, itincluded approximately 1.5 million shares of dilutive impact from the 2017 Convertible Notes through the maturity date and 4.1 million shares of dilutiveimpact from warrants before the settlement. See "Note 12. Debt and Credit Facility" for more discussion of the Company's debt, call options and warrants.Outstanding stock options and RSUs under the Company's stock award plans to purchase approximately 3.7 million, 2.6 million and 4.6 million shares, forfiscal 2018, 2017 or 2016 respectively, were excluded from diluted net income per common share by applying the treasury stock method, as their inclusionwould have been antidilutive. These options and RSUs could be dilutive in the future if the Company's average share price increases and is greater than thecombined exercise prices and the unamortized fair values of these options and RSUs.Note 10.Interest and Other Income (Expense), NetThe components of interest and other income (expense), net are as follows: Years Ended(In thousands)March 31, 2018 April 1, 2017 April 2, 2016Interest income$58,604 $51,121 $40,180Interest expense(45,837) (53,953) (55,456)Other income (expense), net(7,410) (5,482) (17,780)$5,357 $(8,314) $(33,056)Note 11.Accumulated Other Comprehensive LossComprehensive loss is defined as the change in equity of a company during a period from transactions and other events and circumstances from non-ownersources. The components of accumulated other comprehensive loss are as follows: 66 Table of Contents(In thousands)March 31, 2018 April 1, 2017Accumulated unrealized losses on available-for-sale securities, net of tax$(29,844) $(17,091)Accumulated unrealized gains on hedging transactions, net of tax1,674 661Accumulated cumulative translation adjustment, net of tax(6,339) (8,251)Accumulated other comprehensive loss$(34,509) $(24,681)The related tax effects of other comprehensive loss were not material for all periods presented.Note 12.Debt and Credit Facility2017 Convertible NotesDuring the twelve months ended April 1, 2017, the Company received conversion requests from certain holders of the 2017 Convertible Notes. Uponsettlement, 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 ofCommon Stock. In conjunction with the settlement, the Company exercised the purchased calls and received 2.5 million shares from the hedgecounterparties. In accordance with the authoritative guidance for convertible debentures issued by the FASB, the conversion payment was allocated betweenthe liability ($142.9 million) and equity ($149.1 million) components of the convertible debentures, using the equivalent rate that reflected the borrowingrate for a similar non-convertible debt prior to the conversion. As a result, during fiscal 2017, the Company recognized a loss of $1.7 million.During the first quarter of fiscal 2018, the Company received conversion requests from the remaining holders of the 2017 Convertible Notes. Uponsettlement, the holders received a cash payment equal to the par value of the 2017 Convertible Notes of $457.9 million, as well as 9.0 million shares of theCompany's common stock. In conjunction with the settlement, the Company exercised its call options on its shares of common stock that it purchased tohedge against the dilution from the conversion of the 2017 Convertible Notes, and received 9.0 million shares from the hedge counterparties. As of the end ofthe first quarter of fiscal 2018, the 2017 Convertible Notes were no longer outstanding.The carrying values of the liability and equity components of the 2017 Convertible Notes are reflected in the Company's consolidated balance sheets asfollows:(In thousands)March 31, 2018 April 1, 2017Liability component: Principal amount of the 2017 Convertible Notes$— $457,918 Unamortized discount of liability component— (1,977) Hedge accounting adjustment – sale of interest rate swap— 571 Unamortized debt issuance costs associated with 2017 Convertible Notes— (184) Net carrying value of the 2017 Convertible Notes$— $456,328 Equity component (including temporary equity) – net carrying value$— $50,688Prior to the conversion, interest expense related to the 2017 Convertible Notes was included in interest and other income (expense), net on the consolidatedstatements of income, and was recognized as follows: Years Ended(In thousands)March 31, 2018 April 1, 2017 April 2, 2016Contractual coupon interest$2,300 $14,652 $15,750Amortization of debt issuance costs184 1,398 1,448Amortization of debt discount, net1,406 10,670 11,052Total interest expense related to the 2017 Convertible Notes$3,890 $26,720 $28,250To reduce the hedging costs of purchasing the call options on its common stock as described above, the Company, under separate transactions, sold warrantsto independent counterparties, which gave the counterparties the right to purchase up to 21.1 million shares of the Company's common stock at $40.26 pershare. All of the warrants were exercised during fiscal 2018 and the Company issued 9.2 million shares of its common stock for the settlement.67 Table of Contents2019 and 2021 NotesOn March 12, 2014, the Company issued the 2019 Notes and 2021 Notes at a discounted price of 99.477% and 99.281% of par, respectively. Interest on the2019 Notes and 2021 Notes is payable semi-annually on March 15 and September 15.The Company received net proceeds of $990.1 million from issuance of the 2019 Notes and 2021 Notes, after the debt discounts and deduction of debtissuance costs. The debt discounts and issuance costs are amortized to interest expense over the terms of the 2019 and 2021 Notes. As of March 31, 2018, theremaining term of the 2019 Notes and 2021 Notes are 1.0 years and 3.0 years, respectively.The following table summarizes the carrying value of the 2019 Notes and 2021 Notes in the Company's consolidated balance sheets:(In thousands) March 31, 2018 April 1, 2017Principal amount of the 2019 Notes $500,000 $500,000Unamortized discount of the 2019 Notes (501) (1,037)Unamortized debt issuance costs associated with the 2019 Notes (313) (654)Carrying value of the 2019 Notes499,186498,309Principal amount of the 2021 Notes 500,000 500,000Unamortized discount of the 2021 Notes (1,593) (2,107)Unamortized debt issuance costs associated with the 2021 Notes (711) (955)Carrying value of the 2021 Notes $497,696 $496,938Total carrying value$996,882$995,247Interest expense related to the 2019 Notes and 2021 Notes was included in interest and other income (expense), net on the consolidated statements of incomeas follows: Years Ended(In thousands) March 31, 2018 April 1, 2017 April 2, 2016Contractual coupon interest $25,625 $25,625 $25,625Amortization of debt issuance costs 586 586 586Amortization of debt discount, net 1,049 1,022 995Total interest expense related to the 2019 and 2021 Notes $27,260 $27,233 $27,2062024 NotesOn May 30, 2017, the Company issued the 2024 Notes at a discounted price of 99.887% of par. Interest on the 2024 Notes is payable semi-annually on June1 and December 1.The Company received net proceeds of $745.2 million from the issuance of the 2024 Notes, after the debt discount and deduction of debt issuance costs. Thedebt discounts and issuance costs are amortized to interest expense over the term of the 2024 Notes. As of March 31, 2018, the remaining term of the 2024Notes is approximately 6.2 years.In relation to the issuance of the 2024 Notes, the Company entered into interest rate swap contracts with certain independent financial institutions, wherebythe Company pays on a semi-annual basis, a variable interest rate equal to the three-month London Interbank Offered Rate (LIBOR) plus 91.43 bps, andreceives on a semi-annual basis, interest income at a fixed interest rate of 2.950%. The Company earned a net interest income of $1.0 million and $4.4million during the three and twelve months ended March 31, 2018, respectively, from the interest rate swap contracts, which was included in interest andother income (expense), net on the consolidated statements of income as a reduction to interest expense. As of March 31, 2018, the fair value of the interestrate swap contracts was $29.0 million, which was recorded in other long-term liabilities on the consolidated balance sheets.The following table summarizes the carrying value of the 2024 Notes in the Company's consolidated balance sheets:68 Table of Contents(In thousands) March 31, 2018 April 1, 2017Principal amount of the 2024 Notes $750,000 $—Unamortized discount of the 2024 Notes (755) —Unamortized debt issuance costs associated with the 2024 Notes (3,500) —Carrying value of the 2024 Notes 745,745 —Fair value hedge adjustment - interest rate swap contracts (29,001) —Net carrying value of the 2024 Notes $716,744 $—Interest expense related to the 2024 Notes was included in interest and other income (expense), net on the consolidated statements of income as follows: Years Ended(In thousands) March 31, 2018April 1, 2017 April 2, 2016Contractual coupon interest (net of interest rate swap) $14,122$— $—Amortization of debt issuance costs 473— —Amortization of debt discount 92— —Total interest expense related to the 2024 Notes$14,687$—$—Revolving Credit FacilityOn December 7, 2016, the Company entered into a $400.0 million senior unsecured revolving credit facility that, upon certain conditions, may be extendedby an additional $150.0 million, with a syndicate of banks (expiring in December 2021). Borrowings under the credit facility will bear interest at abenchmark rate plus an applicable margin based upon the Company's credit rating. In connection with the credit facility, the Company is required tomaintain certain financial and non-financial covenants. As of March 31, 2018, the Company had made no borrowings under this credit facility and was not inviolation 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 moreseries. The Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions granted to, or imposed upon, any whollyunissued series of preferred stock. As of March 31, 2018 and April 1, 2017, no preferred shares were issued or 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 throughnegotiated transactions with independent financial institutions. The last approval was obtained in May 2016 (2016 Repurchase Program), whereby the Boardauthorized the repurchase of up to $1.00 billion of the Company's common stock and debentures. The 2016 Repurchase Program has no stated expirationdate.Through March 31, 2018, the Company has used $792.6 million of the $1.00 billion authorized under the 2016 Repurchase Program, leaving $207.4 millionavailable for future repurchases. The Company's current policy is to retire all repurchased shares, and consequently, no treasury shares were held as ofMarch 31, 2018 and April 1, 2017.During fiscal 2018 and 2017, the Company repurchased 7.0 million and 9.9 million shares of common stock in the open market and through acceleratedshare repurchase agreements with multiple independent financial institutions for a total of approximately $474.3 million and$522.0 million, respectively.69 Table of ContentsNote 14.Income TaxesThe provision for income taxes consists of the following: Years Ended(In thousands) March 31, 2018 April 1, 2017 April 2, 2016Federal: Current $565,765 $(19,097) $21,366 Deferred (362,346) 64,158 42,146 203,419 45,061 63,512State: Current 2,520 (938) 2,447 Deferred 8,304 3,093 1,781 10,824 2,155 4,228Foreign: Current 23,772 21,121 18,016 Deferred 15 231 202 23,787 21,352 18,218Total $238,030 $68,568 $85,958The domestic and foreign components of income before income taxes were as follows:(In thousands)March 31, 2018 April 1, 2017 April 2, 2016Domestic$37,784 $41,031 $37,568Foreign712,627 650,049 599,257Income before income taxes$750,411 $691,080 $636,825On December 22, 2017, the TCJA was enacted into law. The TCJA provides for numerous significant tax law changes and modifications including thereduction of the U.S. federal corporate income tax rate from 35% to 21%, the requirement for companies to pay a one-time transition tax on earnings ofcertain foreign subsidiaries that were previously tax deferred and the creation of new taxes on certain foreign-sourced earnings. Some provisions of the TCJAbegan to impact the Company in fiscal 2018, while other provisions will impact the Company beginning in fiscal 2019.The corporate tax rate reduction was effective as of January 1, 2018. Since the Company has a fiscal year rather than a calendar year, it is subject to rulesrelating to transitional tax rates. As a result, the Company’s fiscal 2018 federal statutory rate was a blended rate of 31.5%. The change in the statutory tax ratefrom 35% to 31.5% for the Company's fiscal 2018 does not have a significant impact on the effective tax rate.In accordance with Staff Accounting Bulletin 118, the Company has recorded provisional amounts recognizing the effect of the tax law changes in the periodof enactment, but will adjust those provisional amounts during a measurement period that is similar to the measurement period used when accounting forbusiness combinations. As of March 31, 2018, the Company has made a reasonable estimate of the effects from the one-time transition tax. The Companyrecognized a provisional amount of $208.5 million, which was included as a component of income tax expense from continuing operations. The Companyalso recognized a provisional deferred tax liability of $6.2 million related to future U.S. tax on unremitted foreign earnings, primarily related to state taxes.The Company will continue to assess the impact of the TCJA (and expected further guidance from federal and state tax authorities as well as further guidancefor the associated income tax accounting) on its business and consolidated financial statements.The one-time transition tax was based on the Company’s total post-1986 earnings and profits (E&P) of its foreign subsidiaries. The Company had previouslyaccrued deferred taxes on a portion of these same earnings. The larger balance was permanently reinvested outside the U.S. The Company recorded aprovisional U.S. federal amount for its one-time transition tax liabilities, resulting in an increase in income tax expense of $590.2 million. This amountreflects an increase of $11.3 million to the provisional70 Table of Contentsamount initially recorded in the third quarter of fiscal 2018. In addition, the Company released the related U.S. federal deferred tax liabilities, resulting in adecrease in income tax expense of $381.7 million. The net increase to tax expense was $208.5 million.The amount recorded for the one-time transition tax remains provisional as the Company has not yet completed its calculation of the total post-1986 E&P forits foreign subsidiaries. Additionally, the Company will continue to evaluate the impact of the tax law change as it relates to providing U.S. taxes on itsinvestments in foreign subsidiaries. Since U.S. federal taxes have been recognized through the one-time transition tax on all accumulated and previouslyuntaxed foreign earnings through December 31, 2017, the Company does not intend to permanently reinvest those earnings.As a result of the reduction of the corporate income tax rate to 21%, U.S. GAAP requires companies to remeasure their deferred tax assets and liabilities as ofthe date of enactment, with resulting tax effects accounted for in the reporting period of enactment. The Company remeasured deferred tax assets andliabilities based on the rates at which they are expected to reverse in the future. The amount recorded for the remeasurement and resulting write-down of theCompany's deferred tax balance was $25.1 million, and its accounting for this effect of TCJA is considered complete under the provisions of Staff AccountingBulletin 118.In accordance with the adoption of 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 $21.5 million and $15.4 million in the provision for income taxes during fiscal 2018 and2017, respectively. The excess tax benefits associated with stock-based compensation that was recorded in additional paid-in capital in fiscal 2016 was $11.4million.As of March 31, 2018, the Company had federal and state net operating loss carryforwards of approximately $14.6 million. If unused, these carryforwards willexpire at various dates through fiscal 2036. All of the federal and state net operating loss carryforwards are subject to change of ownership limitationsprovided by the Internal Revenue Code and similar state provisions. The Company had state research tax credit carryforwards of approximately $177.4million as of March 31, 2018. The credits have no expiration date. Some of the state credit carryforwards are subject to change of ownership limitationsprovided by state provisions similar to that of the Internal Revenue Code. The state credit carryforwards include $128.3 million that is not likely to berecovered and has been reduced by a valuation allowance.The provision for income taxes reconciles to the amount derived by applying the federal statutory income tax rate to income before provision for taxes asfollows: Years Ended(In thousands) March 31, 2018 April 1, 2017 April 2, 2016Income before provision for taxes $750,411 $691,080 $636,825Federal statutory tax rate 31.5% 35.0% 35.0%Computed expected tax 236,668 241,878 222,889State taxes, net of federal benefit 10,338 1,741 3,177Foreign earnings at lower tax rates (199,960) (119,616) (112,942)Tax credits (19,708) (34,146) (25,211)Transition tax 208,523 — —Deferred tax remeasurement 25,148 — —Excess benefits from stock-based compensation (21,520) (15,396) —Other (1,459) (5,893) (1,955)Provision for income taxes $238,030 $68,568 $85,958The Company has manufacturing operations in Singapore where the Company has been granted "Pioneer Status" that is effective through fiscal 2021. ThePioneer Status reduces the Company's tax on the majority of Singapore income from 17% to zero percent. The benefits of Pioneer Status in Singapore forfiscal 2018, fiscal 2017 and fiscal 2016 were approximately $64.1 million ($0.25 per diluted share), $55.9 million ($0.21 per diluted share), and $51.3million ($0.19 per diluted share), respectively. The tax effect of operations in low tax jurisdictions on the Company's overall tax rate is reflected in the tableabove.71 Table of ContentsThe major components of deferred tax assets and liabilities consisted of the following:(In thousands) March 31, 2018 April 1, 2017Deferred tax assets: Stock-based compensation $17,213 $22,050 Deferred income on shipments to distributors 2,019 8,167 Accrued expenses 7,172 9,567 Tax credit carryforwards 140,406 109,681 Deferred compensation plan 24,121 32,518 Low income housing and other investments 5,836 8,163 Other 15,337 17,628 Subtotal 212,104 207,774 Valuation allowance (101,383) (72,520) Total deferred tax assets 110,721 135,254Deferred tax liabilities: Unremitted foreign earnings (6,185) (383,312) Convertible debt — (1,573) Other (2,522) (4,002) Total deferred tax liabilities (8,707) (388,887)Total net deferred tax liabilities $102,014 $(253,633)Long-term deferred tax assets of $102.1 million and $64.4 million as of March 31, 2018 and April 1, 2017, respectively, were included in other assets on theconsolidated balance sheet.As of March 31, 2018 and April 1, 2017, gross deferred tax assets were offset by valuation allowances of $101.4 million and $72.5 million, respectively,which were associated with state tax credit carryforwards.The aggregate changes in the balance of gross unrecognized tax benefits were as follows:(In thousands) March 31, 2018April 1, 2017Balance as of beginning of fiscal year $30,437$33,999Increases in tax positions for prior years 90,716—Decreases in tax positions for prior years (1,063)(10,078)Increases in tax positions for current year 5,1586,556Settlements ——Lapses in statutes of limitation (100)(40)Balance as of end of fiscal year $125,148$30,437The Company’s total gross unrecognized tax benefits increased by $94.7 million during fiscal 2018. The increase was primarily attributable to an additionaldeduction claimed on federal and state amended tax returns for repurchase premium paid in connection with the early redemption of the Company’s 3.125%Junior Convertible debenture due March 15, 2037 (2037 Convertible Notes) in fiscal 2014. If the remaining balance of $125.1 million and $30.4 million of unrecognized tax benefits as of March 31, 2018 and April 1, 2017, respectively, were realizedin a future period, it would result in a tax benefit of $15.1 million and $8.5 million, respectively, thereby reducing the effective tax rate. As of March 31,2018, another $85.5 million related to the 2037 Convertible Notes would increase additional paid-in capital. The Company's policy is to include interest and penalties related to income tax liabilities within the provision for income taxes on the consolidatedstatements of income. The balances of accrued interest and penalties recorded in the consolidated balance sheets and the amounts of interest and penaltiesincluded in the Company's provisions for income taxes were not material for any period presented.72 Table of ContentsThe statutes of limitations have closed for U.S. federal income tax purposes for years through fiscal 2014, for U.S. stateincome tax purposes for years through fiscal 2010, and for Ireland income tax purposes for years through fiscal 2012.The Company believes its provision for unrecognized tax benefits is adequate for adjustments that may result from tax audits. However, the outcome of taxaudits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management'sexpectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. It is reasonably possible thatchanges to the Company's unrecognized tax benefits could be significant in the next twelve months due to tax audit settlements and lapses of statutes oflimitation. As a result of uncertainties regarding tax audits and their possible outcomes, an estimate of the range of increase or decrease that could occur inthe next twelve months cannot be made at this time.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 orsubcontract manufacturers. Geographic revenue information for fiscal 2018, 2017 and 2016 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 onthe physical location of the asset as of the end of each fiscal year.Net revenues by geographic region were as follows: Years Ended(In thousands)March 31, 2018 April 1, 2017 April 2, 2016North America: United States$671,452 $606,150 $592,422 Other (individual countries less than 10%)96,694 132,300 118,240 Total North America768,146 738,450 710,662 Asia Pacific: China663,859 597,310 520,562 Other (individual countries less than 10%)370,307 358,844 335,304 Total Asia Pacific1,034,166 956,154 855,866 Europe513,703 456,585 424,685Japan222,989 198,141 222,668 Worldwide total$2,539,004 $2,349,330 $2,213,881Net long-lived assets by country at fiscal year-ends were as follows: Years Ended(In thousands)March 31, 2018 April 1, 2017 April 2, 2016United States$206,406 $211,995 $191,400Foreign: Ireland38,257 40,626 43,011 Singapore45,013 39,345 36,029 Other (individual countries less than 10%)14,441 11,859 12,906 Total foreign97,711 91,830 91,946 Worldwide total$304,117 $303,825 $283,34673 Table of ContentsNote 16.Litigation Settlements and ContingenciesPatent LitigationOn 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 seeksunspecified damages, interest, attorneys’ fees, costs, and a permanent injunction or an on-going royalty. On September 14, 2017, the court granted theCompany’s motion to transfer venue and the matter is now pending before the U.S. District Court for the Northern District of California. The Company isunable to estimate its range of possible loss, if any, in this matter 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 Districtof Colorado (Anza Technology, Inc. v. Xilinx, Inc., Case No. 1:17-cv-00687). The lawsuit pertains to three patents and Anza seeks unspecified damages,attorney fees, interest, costs, and expenses. On October 27, 2017, the court granted the Company’s motion to transfer venue and the matter is now pendingbefore the U.S. District Court for the Northern District of California. The Company is unable to estimate its range of possible loss, if any, in this matter at thistime.On December 11, 2017, a patent infringement lawsuit was filed by Lucio Development LLC (Lucio) against the Company in the U.S. District Court for theEastern District of Texas (Lucio Development LLC v. Xilinx, Inc., Case No. 6:17-cv-00688). The lawsuit pertained to a single patent and Lucio soughtinjunctive relief, unspecified damages, interest, and costs. On February 15, 2018, Lucio filed a motion to dismiss without prejudice all claims against theCompany. On February 28, 2018, the court granted the motion and dismissed all claims without prejudice.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,from the defendants. On September 21, 2015, the action was withdrawn from the U.S. Bankruptcy Court for the Middle District of Pennsylvania andtransferred to the U.S. District Court for the Eastern District of Kentucky. On November 2, 2015, Xilinx, along with other defendants, filed a motion to dismissthe complaint. On November 3, 2015, Xilinx filed a motion for sanctions pursuant to Federal Rule of Civil Procedure 11. On June 27, 2016, the Court deniedboth motions. 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 disputesand lawsuits related to intellectual property, mergers and acquisitions, licensing, contract law, tax, regulatory, distribution arrangements, employee relationsand other matters. Periodically, the Company reviews the status of each matter and assesses its potential financial exposure. If the potential loss from anyclaim or legal proceeding is considered probable and a range of possible losses can be estimated, the Company accrues a liability for the estimated loss. Legalproceedings are subject to uncertainties, and the outcomes are difficult to predict. Because of such uncertainties, accruals are based only on the bestinformation available at the time. As additional information becomes available, the Company continues to reassess the potential liability related to pendingclaims and litigation and may revise estimates.74 Table of ContentsNote 17.Goodwill and Acquisition-Related IntangiblesThe gross and net amounts of goodwill and of acquisition-related intangibles for all acquisitions were as follows: Weighted-Average(In thousands)March 31, 2018 April 1, 2017 Amortization LifeGoodwill$162,421 $161,287 Core technology, gross82,480 79,981 Less accumulated amortization(78,562) (76,512) Core technology, net3,918 3,469 4.8 yearsOther intangibles, gross46,966 46,766 Less accumulated amortization(46,761) (46,659) Other intangibles, net205 107 2.6 yearsTotal acquisition-related intangibles, gross129,446 126,747 Less accumulated amortization(125,323) (123,171) Total acquisition-related intangibles, net$4,123 $3,576 Amortization expense for acquisition-related intangibles for fiscal 2018, 2017 and 2016 were $2.2 million, $5.1 million and $6.6 million, respectively. Basedon the carrying value of acquisition-related intangibles recorded as of March 31, 2018, and assuming no subsequent impairment of the underlying assets, theannual amortization expense for acquisition-related intangibles is expected to be as follows: Fiscal(In thousands)2019$1,25320201,16020211,1372022573Total$4,123Note 18. Employee Benefit PlansXilinx offers various retirement benefit plans for U.S. and non-U.S. employees. Total contributions to these plans were $14.7 million, $12.9 million and $11.0million in fiscal 2018, 2017 and 2016, respectively. For employees in the U.S., Xilinx instituted a Company matching program pursuant to which theCompany will match contributions to Xilinx's 401(k) Plan (the 401(k) Plan) based on the amount of salary deferral contributions the participant makes to the401(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) accounts. Themaximum Company contribution per year is $4,500 per employee. As permitted under Section 401(k) of the Internal Revenue Code, the 401(k) Plan allowstax deferred salary deductions for eligible employees. The Compensation Committee of the Board of Directors administers the 401(k) Plan. Participants in the401(k) Plan may make salary deferrals of up to 75% of the eligible annual salary, limited by the maximum dollar amount allowed by the Internal RevenueCode. Participants who have reached the age of 50 before the close of the plan year may be eligible to make catch-up salary deferral contributions, up to 75%of eligible annual salary, limited by 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 March 31, 2018, there were 192 participants in the Plan who self-direct their contributions into a menu of hypothetical investment options offered by the Plan that tracks a portfolio of various deemed investment funds. ThePlan does not allow Plan participants to invest directly in Xilinx's stock. In the event Xilinx becomes insolvent, Plan assets are subject to the claims of theCompany's general creditors. There are no Plan provisions that provide for any guarantees or minimum return on investments. As of March 31, 2018, Planassets of $95.3 million were included in other assets within the consolidated balance sheet and obligations of $103.4 million were included in accruedpayroll and related liabilities. As of April 1, 2017, Plan assets were $81.1 million and obligations were $88.1 million.75 Table of ContentsNote 19. Executive Transition CostsDuring the fourth quarter of fiscal 2018, the Company announced the transition of its President and Chief Executive Officer position, whereby MosheGavrielov resigned from those roles and Victor Peng assumed these roles. Additionally, the Company also implemented restructuring measures to realignresources and drive overall operating efficiencies, which impacted approximately 60 positions in various geographies and functions worldwide. TheCompany recorded total transition charges of $33.4 million in the fourth quarter of fiscal 2018, primarily related to severance pay expenses and otherbenefits. As of the end of fiscal 2018, there was $10.4 million accrual for severance and other benefits that are expected to be paid primarily during fiscal2019.The following table summarizes the transition costs accrual activity for fiscal 2018:Executive Transition Costs(In thousands)Employee severance andbenefitsTotal executive transition costs$33,351Cash payments(6,306)Non-cash charges(16,621)Balance as of March 31, 2018$10,424Note 20. Subsequent EventOn April 25, 2018, the Company's Board of Directors declared a cash dividend of $0.36 per common share for the first quarter of fiscal 2019. The dividend ispayable on June 4, 2018 to stockholders of record as of May 15, 2018.76 Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Stockholders and the Board of Directors of Xilinx, Inc.Opinion on the Financial StatementsWe have audited the accompanying consolidated balance sheets of Xilinx, Inc. (the Company) as of March 31, 2018 and April 1, 2017, and the relatedconsolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the three years in the period ended March 31,2018, and the related notes and financial statement schedule listed in the Index at Part IV, Item 15(a)(2) (collectively referred to as the “consolidated financialstatements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at March 31,2018 and April 1, 2017, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2018, in conformity withU.S. generally accepted accounting principles.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company'sinternal control over financial reporting as of March 31, 2018, based on criteria established in Internal Control-Integrated Framework issued by theCommittee of Sponsoring Organizations of the Treadway Commission (2013 Framework) and our report dated May 14, 2018 expressed an unqualifiedopinion thereon.Basis for OpinionThese financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financialstatements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Companyin accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing proceduresto assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also includedevaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financialstatements. We believe that our audits provide a reasonable basis for our opinion./s/ Ernst & Young LLPWe have served as the Company’s auditor since 1984.San Jose, CaliforniaMay 14, 201877 Table of ContentsREPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Stockholders and the Board of Directors of Xilinx, Inc.Opinion on Internal Control over Financial ReportingWe have audited Xilinx, Inc.'s internal control over financial reporting as of March 31, 2018, based on criteria established in Internal Control-IntegratedFramework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 Framework) (the COSO criteria). In our opinion,Xilinx, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of March 31, 2018, based on the COSOcriteria.We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidatedbalance sheets of the Company as of March 31, 2018 and April 1, 2017, and the related consolidated statements of income, comprehensive income,stockholders' equity and cash flows for each of the three years in the period ended March 31, 2018, and the related notes and financial statement schedulelisted in the Index at Part IV, Item 15(a)(2) and our report dated May 14, 2018 expressed an unqualified opinion thereon.Basis for OpinionThe Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness ofinternal control over financial reporting included in the accompanying Management's Report on Internal Control Over Financial Reporting. Ourresponsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firmregistered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and theapplicable rules and regulations of the Securities and Exchange Commission and the PCAOB.We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonableassurance 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 andevaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considerednecessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.Definition and Limitations of Internal Control Over Financial ReportingA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reportingand the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal controlover financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairlyreflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are beingmade only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention ortimely detection of unauthorized 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 compliancewith the policies or procedures may deteriorate./s/ Ernst & Young LLPSan Jose, CaliforniaMay 14, 201878 Table of ContentsXILINX, INC.SCHEDULE IIVALUATION AND QUALIFYING ACCOUNTS(In thousands) Description Beginningof Year Additions Deductions End of YearFor the year ended April 2, 2016: Allowance for doubtful accounts $3,353 $— $12 $3,341Valuation allowance for deferred tax assets $52,552 $9,834 $207 $62,179For the year ended April 1, 2017: Allowance for doubtful accounts $3,341 $— $141 $3,200Valuation allowance for deferred tax assets $62,179 $10,341 $— $72,520For the year ended March 31, 2018: Allowance for doubtful accounts $3,200 $— $30 $3,170Valuation allowance for deferred tax assets $72,520 $28,863 $— $101,383Supplementary Financial DataQuarterly Data (Unaudited)(In thousands, except per share amounts) Year ended March 31, 2018 (1) FirstQuarter SecondQuarter ThirdQuarter FourthQuarterNet revenues $615,446 $619,503 $631,193 $672,862Gross margin 423,351 434,717 449,037 475,531Income before income taxes (2) 182,259 187,000 195,169 185,984Net income 167,245 167,532 11,945 165,659Net income per common share: (3) Basic $0.67 $0.68 $0.05 $0.65Diluted $0.63 $0.65 $0.05 $0.64Shares used in per share calculations: Basic 247,911 248,094 254,089 254,559Diluted 265,797 258,217 258,108 257,916Cash dividends declared per common share $0.35 $0.35 $0.35 $0.35(1)Xilinx uses a 52- to 53-week fiscal year ending on the Saturday nearest March 31. Fiscal 2018 was a 52-week year and each quarter was a 13-week quarter.(2)Income before income taxes for the fourth quarter of fiscal 2018 included executive transition costs of $33.4 million.(3)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 equalthe annual net income per common share.79 Table of Contents(In thousands, except per share amounts) Year ended April 1, 2017 (4) FirstQuarter SecondQuarter ThirdQuarter FourthQuarterNet 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: (3) 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(4)Xilinx uses a 52- to 53-week fiscal year ending on the Saturday nearest March 31. Fiscal 2017 was a 53-week year and each quarter was a 13-week quarter except the thirdquarter, which was a 14-week quarter.ITEM 9.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURENot applicable.80 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 Actreports is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and is accumulated and communicatedto our management, 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 March 31, 2018 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)under the Exchange Act) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements forexternal purposes in accordance with U.S. generally accepted accounting principles. This system of internal control is designed to provide reasonableassurance that assets are safeguarded and transactions are properly recorded and executed in accordance with management's authorization. The design,monitoring and revision of the system of internal control over financial reporting involve, among other things, management's judgments with respect to therelative cost and expected benefits of specific control measures. The effectiveness of the system of internal control over financial reporting is supported bythe selection, retention and training of qualified personnel and an organizational structure that provides an appropriate division of responsibility andformalized procedures. The system of internal control is 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 assuranceand may not prevent or detect all misstatements or all fraud. Further, because of changes in conditions, the effectiveness of internal control over financialreporting may vary 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 SponsoringOrganizations of the Treadway Commission (COSO) (2013 Framework) to evaluate the effectiveness of our internal control over financial reporting. Based onthis evaluation, management has concluded that the Company's internal control over financial reporting was effective as of March 31, 2018.The effectiveness of the Company's internal control over financial reporting as of March 31, 2018 has been audited by Ernst & Young LLP, an independentregistered public 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.81 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 14Aunder the Exchange Act (the Proxy Statement) not later than 120 days after the end of the fiscal year covered by this Report, and certain information includedtherein is incorporated herein by reference. Only those sections of the Proxy Statement that specifically address the items set forth herein are incorporated byreference.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,the code 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 sectionentitled "Section 16(a) Beneficial Ownership Reporting Compliance" in our Proxy Statement.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 Ownershipof Certain Beneficial Owners and Management" in our Proxy Statement. The information required by Item 201(d) of Regulation S-K is set forth below.82 Table of ContentsEquity Compensation Plan InformationThe table below sets forth certain information as of fiscal year ended March 31, 2018 about the Company's common stock that may be issued upon theexercise of options, 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 uponExercise ofOutstanding Options,Warrants and Rights Weighted-averageExercise Price ofOutstandingOptions, Warrantsand Rights Number of SecuritiesRemainingAvailable for FutureIssuance underEquity CompensationPlans (excludingsecurities reflected inColumn A) Equity Compensation Plans Approved by Security Holders 2007 Equity Plan 7,008(1) $33.94(2) 11,342(3) Employee Stock Purchase Plan N/A N/A 9,315 Total-Approved Plans 7,008 $33.94 20,658 Equity Compensation Plans Not Approved by Security Holders — $— — Total-All Plans 7,008 $33.94 20,658 (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 2007 EquityPlan, which became effective on January 1, 2007, replaced both the Company's 1997 Stock Plan (which expired on May 8, 2007) and the Supplemental Stock Option Plan. OnAugust 9, 2007, August 14, 2008, August 12, 2009, August 11, 2010, August 10, 2011, August 8, 2012, August 14, 2013, August 13, 2014 , August 10, 2016 and August9, 2017, 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, 2.5 million shares and 1.9 million shares respectively. All of the shares reserved for issuance under the 2007 Equity Plan may begranted as stock options, 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 Five - Ratification of Appointment of ExternalAuditors" and "Fees Paid to Ernst & Young LLP" in our Proxy Statement.83 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 amendedto date 10-K 000-18548 3.1 5/30/2007 3.2 Bylaws of the Company, as amended and restatedas of 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 YorkTrust Company, 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 TheBank of New York Mellon Trust Company, N.A. asTrustee 8-K 000-18548 4.01 3/13/2014 4.5 Supplemental Indenture, dated as of May 30, 2017,between the Company and U.S. Bank NationalAssociation, as trustee for the 2024 Notes 8-K 000-18548 4.01 5/30/2017 4.6 Third Supplemental Indenture, dated as of August31, 2017, between the Company and U.S. BankNational Association, as trustee 8-K 000-18548 99.1 9/1/2017 10.1*Amended and Restated 1990 Employee QualifiedStock Purchase Plan DEF14A 000-18548 Appendix A 6/2/2017 10.2P*Form of Indemnification Agreement between theCompany and its officers and directors S-1 333-34568 10.17 4/27/1990 10.3*2007 Equity Incentive Plan DEF14A 000-18548 Appendix B 6/2/2017 10.4*Form of Stock Option Agreement under 2007Equity Incentive Plan 10-K 000-18548 10.24 5/30/2007 84 Table of Contents Incorporated by ReferenceExhibit No Exhibit Title Form File No. Exhibit FilingDate FiledHerewith10.5*Form of Restricted Stock Unit Agreement under2007 Equity Incentive Plan 10-K 000-18548 10.25 5/30/2007 10.6*Form of Performance-Based Restricted Stock UnitAgreement under 2007 Equity Incentive Plan 8-K 000-18548 99.1 7/5/2007 10.7*Restricted Stock Issuance Agreement 10-Q 000-18548 10.15 8/9/2011 10.8*Performance Based Restricted Stock IssuanceAgreement 10-Q 000-18548 10.16 8/9/2011 10.9+Master Distributor Agreement, dated as of March12, 2014, between the Company and Avnet, Inc. 10-K 000-18548 10.18 5/16/2014 10.10*Summary of Fiscal Year 2018 Executive IncentivePlan 8-K 000-18548 N/A 5/12/2017 10.11*Form of Change in Control Agreement 8-K 000-18548 10.2 1/20/2016 10.12*Amendment and Restatement of EmploymentAgreement with Moshe Gavrielov 8-K 000-18548 10.1 4/12/2017 10.13 Amendment, dated as of February 20, 2015, toMaster Distributor Agreement between theCompany and Avnet, Inc. 10-K 000-18548 10.15 5/15/2017 10.14+Amendment, dated as of March 28, 2016, to MasterDistributor Agreement between the Company andAvnet, Inc. 10-K 000-18548 10.16 5/15/2017 10.15+Addendum, dated as of March 1, 2017, to MasterDistributor Agreement between the Company andAvnet, Inc. 10-K 000-18548 10.17 5/15/2017 10.16 Amendment, dated as of March 1, 2017, to MasterDistributor Agreement between the Company andAvnet, Inc. 10-K 000-18548 10.18 5/15/2017 10.17+Amendment, dated as of April 20, 2017, to MasterDistributor Agreement between the Company andAvnet, Inc. 10-Q 000-18548 10.1 7/28/2017 10.18 Employment Agreement, dated as of January 4,2018, by and between Xilinx, Inc. and Victor Peng 8-K 000-18548 10.1 1/5/2018 21.1 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 pursuantto Section 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 pursuantto Section 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 X85 Table of Contents Incorporated by ReferenceExhibit No Exhibit Title Form File No. Exhibit FilingDate FiledHerewith101.SCH XBRL Taxonomy Extension Schema Document X101.CAL XBRL Taxonomy Extension CalculationLinkbase Document X101.LAB XBRL Taxonomy Extension Label LinkbaseDocument X101.PRE XBRL Taxonomy Extension PresentationLinkbase Document X101.DEF XBRL Taxonomy Extension Definition LinkbaseDocument X+ 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-Kpursuant to Item 15(b) herein.P Filed on Paper86 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 itsbehalf by the undersigned, thereunto duly authorized.Date: May 14, 2018 XILINX, INC. By: /s/ Victor Peng Victor Peng President and Chief Executive Officer POWER OF ATTORNEYKNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Victor Peng 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 virtuehereof.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 onbehalf of the Registrant in the capacities and on the dates indicated.Signature Title Date /s/ Victor Peng President and Chief Executive Officer(Principal Executive Officer) and Director May 14, 2018 (Victor Peng) /s/ Lorenzo A. Flores Executive Vice President and Chief Financial Officer(Principal Accounting and Financial Officer) May 14, 2018(Lorenzo A. Flores) /s/ Dennis Segers Chairman of the Board of Directors May 14, 2018(Dennis Segers) /s/ Saar Gillai Director May 14, 2018(Saar Gillai) /s/ Ronald S. Jankov Director May 14, 2018(Ronald S. Jankov) /s/ Mary Louise Krakauer Director May 14, 2018(Mary Louise Krakauer) /s/ Thomas H. Lee Director May 14, 2018(Thomas H. Lee) /s/ J. Michael Patterson Director May 14, 2018(J. Michael Patterson) /s/ Albert A. Pimentel Director May 14, 2018(Albert A. Pimentel) /s/ Marshall C. Turner Director May 14, 2018(Marshall C. Turner) /s/ Elizabeth W. Vanderslice Director May 14, 2018(Elizabeth W. Vanderslice) 87 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 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 Ireland Unlimited Company Ireland Xilinx Israel Limited Israel Xilinx K.K. Japan Xilinx Holding Two Limited Luxembourg 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 MemoBit Technologies 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, 333-51510 and 333-222729, and Form S-3 Nos. 333-194052, 333-00054, 333-143769, 333-51514 and 333-216131)of Xilinx, Inc. of our reports dated May 14, 2018, with respect to the consolidated financial statements and schedule of Xilinx, Inc. and the effectiveness ofinternal control over financial reporting of Xilinx, Inc. included in this Annual Report (Form 10-K) for the year ended March 31, 2018./s/ Ernst & Young LLPSan Jose, CaliforniaMay 14, 2018 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, Victor Peng, 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 thisreport;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 inExchange Act 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 the registrant and have:(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others withinthose entities, 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 mostrecent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likelyto materially 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 arereasonably likely 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 internalcontrol over financial reporting. Date: May 14, 2018 /s/ Victor Peng Victor Peng 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 thisreport;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 inExchange Act 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 the registrant and have:(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others withinthose entities, 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 mostrecent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likelyto materially 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 arereasonably likely 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 internalcontrol over financial reporting. Date: May 14, 2018 /s/ Lorenzo A. Flores Lorenzo A. Flores Executive 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 March 31, 2018 as filed with the Securities andExchange Commission on the date hereof (the “Report”), I, Victor Peng, 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 myknowledge: (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 14, 2018 /s/ Victor Peng Victor Peng President and Chief Executive OfficerA signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signaturethat appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Xilinx, Inc. and will beretained by Xilinx, 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 theSarbanes-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 March 31, 2018 as filed with the Securities andExchange Commission on the date hereof (the “Report”), I, Lorenzo A. Flores, Executive Vice President and Chief Financial 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 thebest 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 14, 2018 /s/ Lorenzo A. Flores Lorenzo A. Flores Executive Vice Presidentand Chief Financial OfficerA signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signaturethat appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Xilinx, Inc. and will beretained by Xilinx, 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 theSarbanes-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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