v3.26.3
Acquisitions
 9 Months Ended
Sep. 27, 2026
Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]  
Acquisitions Acquisitions
On July 1, 2026, we acquired certain entities that comprise Ruckus Networks (“Ruckus”) for $1,869.6 million, net of cash acquired, and accounted for it as a business combination. Ruckus, based in California, provides wireless networks for enterprises and service providers. Product offerings include indoor cellular solutions such as indoor and outdoor Wi-Fi and long-term evolution access points, access and aggregation switches; an Internet of Things suite, on-premises and cloud-based control and management systems; and software and software-as-a-service applications addressing security, location, reporting and analytics. The results of operations of Ruckus have been included in our results of operations from the acquisition date. To fund the purchase of Ruckus, we entered into a Term Loan Credit Facility on July 1, 2026. See Note 9.
The following table summarizes the estimated, preliminary fair values of the assets acquired and liabilities assumed as of the acquisition date (in thousands):
Receivables$146,457 
Inventory153,555 
Other current assets14,563 
Property, plant and equipment18,452 
Intangible assets1,040,000 
Goodwill1,000,819 
Operating lease right-of-use assets26,699 
Other long-lived assets4,299 
   Total assets acquired$2,404,844 
Accounts payable$34,479 
Accrued liabilities191,683 
Deferred income taxes175,882 
Long-term operating lease liabilities22,495 
Other long-term liabilities110,673 
   Total liabilities assumed$535,212 
Net assets $1,869,632 
The above purchase price allocation is preliminary and subject to revision as additional information about the fair value of individual assets and liabilities becomes available. The preliminary measurement of receivables, inventory, intangible assets, goodwill, deferred income taxes, and other assets and liabilities are subject to change. As of the date of this filing, a preliminary fair value for in process R&D has not been determined. A change in the estimated fair value of the net assets acquired will change the amount of the purchase price allocable to goodwill.
The preliminary fair value of acquired receivables is $146.5 million, which is equivalent to its gross contractual amount. The preliminary fair value of inventory was determined using the comparative sales method, which reduces the estimated selling price by the costs to sell and profit attributable to the remaining selling activities. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. The judgments we have used in estimating the preliminary fair values assigned to each class of acquired assets and assumed liabilities could materially affect the results of our operations.
For purposes of the above allocation, we based our preliminary estimate of the fair values for intangible assets on valuation studies performed by a third party valuation firm. We used various valuation methods including discounted cash flows, lost income, excess earnings, and relief from royalty to estimate the preliminary fair value of the identifiable intangible assets (Level 3 valuation). Goodwill and other intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. For tax purposes, the acquisition of the Ruckus entities is considered a nontaxable business combination, resulting in the recognition of deferred taxes based upon the fair market value of the book basis of net assets compared to carryover tax basis, exclusive of goodwill. Based on the nature of the transaction, our tax basis in the acquired goodwill is zero.
The intangible assets related to the acquisition consisted of the following:
Fair ValueAmortization Period
(In thousands)(In years)
Intangible assets subject to amortization:
Developed technologies$800,000 5.0
Customer relationships160,000 15.0
Trademarks80,000 20.0
Total intangible assets subject to amortization$1,040,000 
Intangible assets not subject to amortization:
Goodwill$1,000,819 n/a
Total intangible assets not subject to amortization$1,000,819 
Total intangible assets$2,040,819 
Weighted average amortization period7.7
The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the developed technology intangible asset was based on the estimated time that the technology provides us with a competitive advantage and thus approximates the period and pattern of consumption of the intangible asset. The useful life for the customer relationship intangible asset was based on our forecasts of estimated sales from recurring customers. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks.

Our consolidated revenues and consolidated income (loss) before taxes for the three and nine months ended September 27, 2026 included $167.8 million of revenues and a $63.1 million loss before taxes from Ruckus. The loss before taxes for Ruckus for the three and nine months ended September 27, 2026 included $56.3 million of non-cash cost of sales arising from the adjustment of inventory to fair value and $43.7 million of amortization of intangible assets.
The following table illustrates the unaudited pro forma effect on operating results as if the Ruckus acquisition had been completed as of January 1, 2025.
Three Months EndedNine Months Ended
September 27, 2026September 28, 2025September 27, 2026September 28, 2025
(In thousands, except per share data)
(Unaudited)
Revenues$965,954 $876,734 $2,763,529 $2,514,730 
Net income 39,339 24,486 93,152 25,809 
Diluted income per share$1.00 $0.61 $2.37 $0.64 

For purposes of the pro forma disclosures, the three months ended September 28, 2025 includes nonrecurring expenses directly attributable to the business combination of $2.7 million for integration costs and the nine months ended September 28, 2025 includes $75.0 million and $25.7 million for inventory fair value adjustments and integration costs, respectively.
The above unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would have been had we completed the acquisition on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods. Pro forma adjustments exclude cost savings from any synergies resulting from the acquisition.