☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 83-0406195 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||
Common Stock, parvalue | MX | New York Stock Exchange |
Large Accelerated Filer | ☐ | Accelerated Filer | ☒ | |||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ☐ | |||
Emerging growth company | ☐ |
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voltage range | ||||
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Name | Age | Position | ||||
Camillo Martino | 59 | Non-Executive Chairman of the Board, Chair of the Compensation Committee and Member of the Audit Committee and Nominating and Corporate Governance Committee | ||||
Kyo-Hwa (Liz) Chung | 48 | Director | ||||
Melvin L. Keating | 74 | Director, Chair of the Audit Committee and Member of the Nominating and Corporate Governance Committee | ||||
Ilbok Lee | 75 | Director, Chair of the Nominating and Corporate Governance Committee and Member of the Risk Committee | ||||
Gary Tanner | 68 | Director, Chair of the Risk Committee and Member of the Audit Committee and the Compensation Committee | ||||
Young-Joon (YJ) Kim | 56 | Director, Member of the Risk Committee, and Chief Executive Officer | ||||
Young Soo Woo | 56 | Chief Financial Officer | ||||
Theodore Kim | 51 | Chief Compliance Officer, Executive Vice President, General Counsel and Secretary | ||||
Woung Moo Lee | 58 | Executive Vice President and General Manager of Worldwide Sales | ||||
Chan Ho Park | 57 | General Manager of Power Solutions |
Item 11. | Executive Compensation |
Service-Based RSUs | Financial PSUs | TSR PSUs | ||
• Vest over three years in specified tranches, subject to executive’s continued employment through each applicable vesting date. | • Annual grants with one-year performance period.• Vesting is based on achievement of financial goals aligned with measuring our performance against our business strategy, with specific performance goals established by the Committee annually. • For 2020, performance goals are based on revenue, gross profit margin and Adjusted EBITDA (1) for the first eight months of 2020 and Adjusted Operating Income(2) for the last four months of 2020. | • Annual grants with three-year performance period. • Cliff-vesting at the end of the three-year performance period. • Vesting is based on three-year TSR of the Company relative to other entities in the S&P Semiconductor Index, determined by the percentile rank of the Company’s TSR relative to the TSR of each other entity in such index. |
(1) | “Adjusted EBITDA” means EBITDA (as defined below) adjusted to exclude (i) restructuring and other charges, (ii) equity-based compensation expense, (iii) foreign currency loss (gain), net, (iv) derivative valuation loss (gain), net, and (v) various other nominal loss (gain), net. EBITDA for the periods indicated is defined as the Company’s net income (loss) before interest expense, net, income tax expense, and depreciation and amortization. |
(2) | “Adjusted Operating Income” means the Company’s operating income, which is determined in accordance with US GAAP and then adjusted to exclude (i) equity-based compensation expense, and (ii) various other nominal loss (gain), net. |
Element | Purpose | |
Annual base salary | Provides a guaranteed element of a named executive officer’s annual cash compensation ( i.e. | |
Short-term cash incentives | Incentivizes achievement of optimal annual financial, operational and strategic performance | |
Long-term equity incentives; and | Aligns the interests of our named executive officers with the interests of our stockholders by increasing stock ownership, incentivizing increases in stockholder value and strengthening retention | |
Expatriate and other executive benefits. | Helps us remain competitive with peer practices in the Korean market with an understanding of the U.S. market, as well as to retain superior talent |
Alpha & Omega Semiconductor | Ichor Holdings | Novanta | ||
Axcelis Technologies | Kimball Electronics | Power Integrations | ||
Cohu | Lattice Semiconductor | Semtech | ||
CTS | MACOM Technology Solutions | SMART Global Holdings | ||
Diodes | MaxLinear | Ultra Clean Holdings | ||
FARO Technologies | NeoPhotonics | Vishay Intertechnology |
Executive | 2020 Base Salary | |||
Young-Joon Kim | $ | 557,396 | ||
Young Soo Woo | $ | 288,436 | * | |
Jonathan Kim | $ | 350,000 | * | |
Theodore Kim | $ | 330,000 | ||
Woung Moo Lee | $ | 296,913 | ||
Chan Ho Park | $ | 330,000 | * |
* | The actual amount paid to these named executive officers was prorated based on the period which such named executive officer served the Company during 2020. |
Named Executive Officer | Target Bonus (% of Base Salary) | Target Bonus Amount | ||||||
Young-Joon Kim | 100 | % | $ | 557,396 | ||||
Theodore Kim | 75 | % | $ | 247,500 | ||||
Woung Moo Lee | 60 | % | $ | 178,148 | ||||
Young Soo Woo | 50 | % | $ | 144,218 | ||||
Chan Ho Park | 50 | % | $ | 165,000 |
Named Executive Officer | 2020 Cash Incentive Amount | |||
Young-Joon Kim | $ | 125,000 | ||
Theodore Kim | $ | 74,250 | ||
Woung Moo Lee | $ | 57,527 | ||
Young Soo Woo | $ | 28,121 | * | |
Chan Ho Park | $ | 28,943 | * |
* | The amount of cash incentive for each of these named executive officers was prorated based on the date on which such named executive officer joined the Company during 2020. |
RSUs | ||||||||||||||||
Name | Grant Date | FV of Grant Date | RSUs Granted (#) | Aggregate fair value of grant date ($) | ||||||||||||
Young-Joon Kim | 5/7/2020 | $ | 11.83 | 32,507 | 384,558 | |||||||||||
Theodore Kim | 5/7/2020 | $ | 11.83 | 20,000 | 236,600 | |||||||||||
5/22/2020 | $ | 10.73 | 7,000 | 75,110 | ||||||||||||
Woung Moo Lee | 5/7/2020 | $ | 11.83 | 17,500 | 207,025 | |||||||||||
Young Soo Woo | 5/25/2020 | $ | 10.73 | 18,000 | 193,140 | |||||||||||
Chan Ho Park | 6/1/2020 | $ | 11.09 | 15,000 | 166,350 |
Financial PSUs | ||||||||||||||||||||
Name | Grant Date | FV of Grant Date ($) (at Target) | Threshold Shares (#) | Target Shares (#) | Maximum Shares (#) | |||||||||||||||
Young-Joon Kim | 6/2/2020 | 758,234 | 33,880 | 67,760 | 101,640 | |||||||||||||||
Theodore Kim | 6/2/2020 | 156,660 | 7,000 | 14,000 | 21,000 | |||||||||||||||
Woung Moo Lee | 6/2/2020 | 137,078 | 6,125 | 12,250 | 18,375 |
TSR PSUs | ||||||||||||||||||||||||
Name | Grant Date | FV of Grant Date ($) (at Target) | Threshold Shares (#) | Target Shares (#) | Maximum Shares (#) | Supermaximum Shares (#) | ||||||||||||||||||
Young-Joon Kim | 5/7/2020 | 343,543 | 14,520 | 29,040 | 43,560 | 58,080 | ||||||||||||||||||
Theodore Kim | 5/7/2020 | 70,980 | 3,000 | 6,000 | 9,000 | 12,000 | ||||||||||||||||||
Woung Moo Lee | 5/7/2020 | 62,108 | 2,625 | 5,250 | 7,875 | 10,500 |
Performance Metrics | Goal Weighting | Threshold | Target | Maximum | 2020 Achievement | Vesting Ratio by Category | Weighed Vesting Ratio | |||||||||||||||||||||
Revenue (in millions) | 21.67 | % | $ | 540 | $ | 558 | $ | 575 | $ | 553.2 | 87.6 | % | 19.0 | % | ||||||||||||||
Gross Profit Margin (as % of revenue) | 21.67 | % | 26.64 | % | 28.0 | % | 30.0 | % | 26.64 | % | 50.0 | % | 10.8 | % | ||||||||||||||
Adjusted EBITDA (in millions) | 21.67 | % | $ | 72.2 | $ | 77.5 | $ | 82.8 | $ | 76.0 | 86.0 | % | 18.6 | % | ||||||||||||||
48.5 | % |
Performance Metrics | Goal Weighting | Threshold | Target | Maximum | 2020 Achievement | Vesting Ratio by Category | Weighted Vesting Ratio | |||||||||||||||||||||
Adjusted Operating Income (in millions) | 35.00 | % | $ | 9.79 | $ | 11.84 | $ | 13.80 | $ | 16.56 | 150.0 | % | 52.5 | % | ||||||||||||||
52.5 | % |
Company/Index | Base Period 12/31/2015 | 12/30/2016 | 12/29/2017 | 12/31/2018 | 12/31/2019 | 12/31/2020 | ||||||||||||||||||
Magnachip Semiconductor Corporation | 100 | 117.20 | 188.09 | 117.39 | 219.47 | 255.58 | ||||||||||||||||||
S&P 500 Index | 100 | 109.54 | 130.81 | 122.65 | 159.39 | 183.77 | ||||||||||||||||||
Philadelphia Semiconductor Index | 100 | 136.62 | 188.86 | 174.11 | 278.78 | 421.34 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||
(In millions) | ||||||||||||
Income (loss) from continuing operations | $ | 57.1 | $ | (20.4 | ) | $ | (25.8 | ) | ||||
Interest expense, net | 15.4 | 19.5 | 20.1 | |||||||||
Income tax expense (benefit) | (46.2 | ) | 2.2 | (1.1 | ) | |||||||
Depreciation and amortization | 11.1 | 10.3 | 8.8 | |||||||||
EBITDA | $ | 37.4 | $ | 11.6 | $ | 2.1 | ||||||
Adjustments: | ||||||||||||
Equity-based compensation expense(a) | 6.3 | 6.1 | 3.8 | |||||||||
Early termination and other charges(b) | 5.6 | 0.1 | — | |||||||||
Foreign currency loss, net(c) | 0.4 | 22.3 | 26.3 | |||||||||
Derivative valuation loss (gain), net(d) | (0.1 | ) | 0.3 | 2.4 | ||||||||
Loss on early extinguishment of borrowings, net(e) | 0.8 | 0.0 | 0.2 | |||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions (f) | 1.5 | — | — | |||||||||
Expenses related to Fab 3 power outage(g) | 1.2 | — | — | |||||||||
Restatement related expenses (gain)(h) | — | — | (0.8 | ) | ||||||||
Others(i) | — | 0.6 | 0.4 | |||||||||
Adjusted EBITDA | $ | 52.9 | $ | 40.9 | $ | 34.4 | ||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||
(In millions) | ||||||||||||
Operating income | $ | 27.0 | $ | 23.7 | $ | 21.9 | ||||||
Adjustments: | ||||||||||||
Equity-based compensation expense(a) | 6.3 | 6.1 | 3.8 | |||||||||
Early termination and other charges(b) | 5.6 | 0.1 | — | |||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions(c) | 1.5 | — | — | |||||||||
Expenses related to Fab 3 power outage(d) | 1.2 | — | — | |||||||||
Restatement related expenses (gain)(e) | — | — | (0.8 | ) | ||||||||
Others(f) | — | 0.6 | 0.4 | |||||||||
Adjusted Operating Income | $ | 41.6 | $ | 30.4 | $ | 25.3 | ||||||
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||
(In millions, except per share data) | ||||||||||||
Income (loss) from continuing operations | $ | 57.1 | $ | (20.4 | ) | $ | (25.8 | ) | ||||
Adjustments: | ||||||||||||
Equity-based compensation expense(a) | 6.3 | 6.1 | 3.8 | |||||||||
Early termination and other charges(b) | 5.6 | 0.1 | — | |||||||||
Foreign currency loss, net(c) | 0.4 | 22.3 | 26.3 | |||||||||
Derivative valuation loss (gain), net(d) | (0.1 | ) | 0.3 | 2.4 | ||||||||
Loss on early extinguishment of borrowings, net(e) | 0.8 | 0.0 | 0.2 | |||||||||
Inventory reserve related to Huawei impact of downstream trade restrictions(f) | 1.5 | — | — | |||||||||
Expenses related to Fab 3 power outage(g) | 1.2 | — | — | |||||||||
Restatement related expenses (gain)(h) | — | — | (0.8 | ) | ||||||||
GAAP and cash tax expense difference (i) | (43.9 | ) | — | — | ||||||||
Others(j) | — | 0.6 | 0.4 | |||||||||
Income tax effect on non-GAAP adjustments(k) | 0.5 | — | — | |||||||||
Adjusted Net Income | $ | 28.3 | $ | 9.0 | $ | 6.5 | ||||||
Reported earnings (loss) per share—basic | $ | 1.62 | $ | (0.59 | ) | $ | (0.75 | ) | ||||
Reported earnings (loss) per share—diluted | $ | 1.35 | $ | (0.59 | ) | $ | (0.75 | ) | ||||
Weighted average number of shares—basic | 35,213,525 | 34,321,888 | 34,469,921 | |||||||||
Weighted average number of shares—diluted | 46,503,586 | 34,321,888 | 34,469,921 | |||||||||
Adjusted earnings per share—basic | $ | 0.80 | $ | 0.26 | $ | 0.19 | ||||||
Adjusted earnings per share—diluted | $ | 0.73 | $ | 0.25 | $ | 0.18 | ||||||
Weighted average number of shares—basic | 35,213,525 | 34,321,888 | 34,469,921 | |||||||||
Weighted average number of shares—diluted | 46,503,586 | 35,405,077 | 35,503,667 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | Year Ended December 31, 2018 | ||||||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Amount | % of Total revenues | |||||||||||||||||||
(In millions) | ||||||||||||||||||||||||
Consolidated statements of operations data: | ||||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||
Net sales—standard products business | $ | 465.5 | 91.8 | % | $ | 484.8 | 93.1 | % | $ | 425.5 | 91.4 | % | ||||||||||||
Net sales—transitional Fab 3 foundry services | 41.5 | 8.2 | 35.8 | 6.9 | 39.9 | 8.6 | ||||||||||||||||||
Total revenues | 507.1 | 100.0 | 520.7 | 100.0 | 465.4 | 100.0 | ||||||||||||||||||
Cost of sales | ||||||||||||||||||||||||
Cost of sales—standard products business | 338.4 | 66.7 | 368.5 | 70.8 | 309.8 | 66.6 | ||||||||||||||||||
Cost of sales—transitional Fab 3 foundry services | 40.3 | 8.0 | 35.8 | 6.9 | 39.9 | 8.6 | ||||||||||||||||||
Total cost of sales | 378.7 | 74.7 | 404.3 | 77.6 | 349.8 | 75.2 | ||||||||||||||||||
Gross profit | 128.3 | 25.3 | 116.4 | 22.4 | 115.6 | 24.8 | ||||||||||||||||||
Selling, general and administrative expenses | 50.0 | 9.9 | 47.6 | 9.1 | 47.7 | 10.3 | ||||||||||||||||||
Research and development expenses | 45.7 | 9.0 | 45.0 | 8.6 | 46.0 | 9.9 | ||||||||||||||||||
Early termination and other charges | 5.6 | 1.1 | 0.1 | 0.0 | — | — | ||||||||||||||||||
Operating income | 27.0 | 5.3 | 23.7 | 4.6 | 21.9 | 4.7 | ||||||||||||||||||
Interest expense | (18.1 | ) | (3.6 | ) | (22.2 | ) | (4.3 | ) | (22.0 | ) | (4.7 | ) | ||||||||||||
Foreign currency loss, net | (0.4 | ) | (0.1 | ) | (22.3 | ) | (4.3 | ) | (26.3 | ) | (5.7 | ) | ||||||||||||
Loss on early extinguishment of borrowings, net | (0.8 | ) | (0.2 | ) | (0.0 | ) | (0.0 | ) | (0.2 | ) | (0.0 | ) | ||||||||||||
Others, net | 3.1 | 0.6 | 2.6 | 0.5 | (0.2 | ) | (0.0 | ) | ||||||||||||||||
(16.2 | ) | (3.2 | ) | (41.9 | ) | (8.1 | ) | (48.7 | ) | (10.5 | ) | |||||||||||||
Income (loss) from continuing operations before income tax expense | 10.8 | 2.1 | (18.2 | ) | (3.5 | ) | (26.9 | ) | (5.8 | ) | ||||||||||||||
Income tax expense (benefit) | (46.2 | ) | (9.1 | ) | 2.2 | 0.4 | (1.1 | ) | (0.2 | ) | ||||||||||||||
Income (loss) from continuing operations | 57.1 | 11.3 | (20.4 | ) | (3.9 | ) | (25.8 | ) | (5.5 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | 287.9 | 56.8 | (1.4 | ) | (0.3 | ) | 21.9 | 4.7 | ||||||||||||||||
Net income (loss) | $ | 345.0 | 68.0 | % | $ | (21.8 | ) | (4.2 | )% | $ | (3.9 | ) | (0.8 | )% | ||||||||||
Revenues: | ||||||||||||||||||||||||
Net sales—standard products business | ||||||||||||||||||||||||
Display Solutions | 299.1 | 59.0 | 308.5 | 59.3 | 256.1 | 55.0 | ||||||||||||||||||
Power Solutions | 166.5 | 32.8 | 176.3 | 33.9 | 169.4 | 36.4 | ||||||||||||||||||
Total standard products business | 465.5 | 91.8 | 484.8 | 93.1 | 425.5 | 91.4 | ||||||||||||||||||
Net sales—transitional Fab 3 foundry services | 41.5 | 8.2 | 35.8 | 6.9 | 39.9 | 8.6 | ||||||||||||||||||
Total revenues | $ | 507.1 | 100.0 | % | $ | 520.7 | 100.0 | % | $ | 465.4 | 100.0 | % | ||||||||||||
Name and Principal Position | Year | Salary ($)(1) | Bonus ($)(2) | Option Awards ($) | Stock Awards ($)(3) | Non-Equity Incentive Plan Compensation ($)(4) | Change in Pension Value and Non- qualified Deferred Compensation Earnings ($)(5) | All Other Compensation ($) | Total ($) | |||||||||||||||||||||||||||
Young-Joon Kim Chief Executive Officer | 2020 | 556,399 | 125,000 | — | 1,486,335 | — | 26,089 | 757,844 | (6) | 2,951,667 | ||||||||||||||||||||||||||
2019 | 557,863 | — | — | 967,936 | — | 57,012 | 580,075 | 2,162,886 | ||||||||||||||||||||||||||||
2018 | 557,976 | — | — | 1,743,195 | — | 51,491 | 592,399 | 2,945,061 | ||||||||||||||||||||||||||||
Theodore Kim Chief Compliance Officer, General Counsel and Secretary | 2020 | 329,410 | 74,250 | — | 539,350 | — | 16,096 | 333,954 | (7) | 1,293,060 | ||||||||||||||||||||||||||
2019 | 330,277 | — | — | 547,200 | — | 33,310 | 274,684 | 1,185,471 | ||||||||||||||||||||||||||||
2018 | 330,418 | — | — | 394,240 | — | 30,240 | 242,175 | 997,074 | ||||||||||||||||||||||||||||
Woung Moo Lee General Manager of Worldwide Sales | 2020 | 296,913 | 57,527 | — | 406,210 | — | 24,350 | 38,645 | (8) | 823,644 | ||||||||||||||||||||||||||
2019 | 300,513 | — | — | 571,520 | — | 25,035 | 36,957 | 934,025 | ||||||||||||||||||||||||||||
2018 | 318,303 | — | — | 459,944 | — | 26,183 | 51,495 | 855,924 | ||||||||||||||||||||||||||||
Young Soo Woo Chief Financial Officer | 2020 | 176,244 | 28,121 | — | 193,140 | — | 16,141 | 16,907 | (9) | 430,552 | ||||||||||||||||||||||||||
Chan Ho Park General Manager of Power Solutions | 2020 | 192,203 | 28,943 | — | 166,350 | — | 15,344 | 189,747 | (10) | 592,586 | ||||||||||||||||||||||||||
Jonathan Kim Former Chief Financial Officer and Chief Accounting Officer | 2020 | 83,531 | — | — | — | — | 14,843 | 493,856 | (11) | 592,230 | ||||||||||||||||||||||||||
2019 | 350,293 | — | — | — | — | 34,859 | 490,665 | 875,817 | ||||||||||||||||||||||||||||
2018 | 350,444 | — | — | — | — | 31,744 | 470,237 | 852,425 |
(1) | The base salary amounts for Messrs. YJ Kim, J. Kim, T. Kim and CH Park in this table differ from the contractual base salary amounts described in the section above subtitled “Compensation Discussion and Analysis—Annual Base Salary” due to fluctuation in the exchange rate between U.S. dollars and Korean won during the year. The decrease in base salary amounts between 2019 and 2020 is also a result of fluctuation in the exchange rate between 2019 and 2020. |
(2) | Represents amounts of bonus paid. See the section subtitled “Compensation Discussion and Analysis” for a description of the short-term cash incentive amounts paid in 2020. |
(3) | Amounts in this column represent RSUs and PSUs granted to our named executive officers during 2020. See the section subtitled “Compensation Discussion and Analysis—Long-Term Equity Incentives” for further information. The amounts reported in this column reflect the grant date fair value of all RSU and PSU awards determined in accordance with FASB ASC 718. The Financial PSUs and the TSR PSUs are reported here at the target performance level based on the probable outcome of such performance conditions. When calculated at the maximum performance level (which is referred to as “supermaximum” with respect to the TSR PSUs), the amount of the PSUs would be $1,824,438 for Mr. YJ Kim, $376,950 for Mr. T. Kim and $329,831 for Mr. WM Lee. |
(4) | None of our named executive officers received short-term cash incentives in 2020. |
(5) | Consists of statutory severance accrued for each years ended December 31, 2020, 2019 and 2018, as applicable. See the section below subtitled “Pension Benefits for the Fiscal Year Ended December 31, 2020” for a description of the statutory severance benefit. Due to fluctuation in the exchange rate between U.S. dollar and Korean won during the year, for certain executives whose base salary is denominated in U.S. dollars, there was a decrease in the amount of statutory severance accrued for 2020 as compared to prior years. |
(6) | Includes the following personal benefits paid to Mr. YJ Kim for 2020: (a) $138,993 for Mr. YJ Kim’s housing lease; (b) $26,348 for reimbursement of tuition expenses for Mr. YJ Kim’s children; (c) $68,398 for health insurance premiums; (d) $5,764 for accident insurance and business travel insurance premiums; (e) $27,000 for annual cash special allowance; (f) $13,949 for car and driver expense (including personal use of a car service provided by the Company); (g) $19,559 for tax consulting expense; (h) $17,744 for living expense; (i) $784 for meal allowance, welfare points and cash reward for patent; (j) $128,054 of reimbursement for the difference between the actual tax Mr. YJ Kim already paid and the hypothetical tax he had to pay for the fiscal year 2020; and (k) $311,251 for reimbursement of Korean tax. |
(7) | Includes the following personal benefits paid to Mr. T. Kim for 2020: (a) $43,284, for Mr. T. Kim’s housing lease; (b) $36,452 for Mr. T. Kim’s home leave flights; (c) $48,292 for health insurance premiums; (d) $1,737 for accident insurance and business travel insurance premiums; (e) $7,219 for car and driver expense (including personal use of a car service provided by the Company); (f) $14,045 for tax consulting expense; (g) $4,205 for living expense; (h) $1,815 for meal allowance, welfare points and fitness allowance; (i) $29,078 of reimbursement for the difference between the actual tax Mr. T. Kim already paid and the hypothetical tax he had to pay for the fiscal year 2020; and (j) $147,827 for reimbursement of Korean tax. |
(8) | Includes the following personal benefits paid to Mr. WM Lee for 2020: (a) $23,374 for health insurance premiums; (b) $8,885 for personal use of a car service provided by the Company; and (c) $2,020 for private pension; (d) $1,370 for medical check for spouse; and (e) $2,996 for meal allowance, welfare points, medical expense support and fitness allowance. |
(9) | Includes the following personal benefits paid to Mr. YS Woo for 2020: (a) $6,264 for health insurance premiums; (b) $1,422 for personal use of a car service provided by the Company; (c) $5,932 for reimbursement of tuition expenses for Mr. YS Woo’s children; (d) $1,370 for medical check for spouse; and (e) $1,919 for meal allowance, welfare points and fitness allowance. |
(10) | Includes the following personal benefits paid to Mr. CH Park for 2020: (a) $39,899 for health insurance premiums; (b) $1,036 for personal use of a car service provided by the Company; (c) $99,718 for signing bonus; (d) $46,595 for special bonus; (e) $1,370 for medical check for spouse; and (f) $1,129 for meal allowance, welfare points and fitness allowance. |
(11) | Includes the following personal benefits paid to Mr. J. Kim for 2020: (a) $10,012 for Mr. J. Kim’s housing lease; (b) $15,708 for Mr. J. Kim’s home leave flights; (c) $11,057 for health insurance premiums; (d) $1,736 for accident insurance and business travel insurance premiums; (e) $3,574 for car and driver expense (including personal use of a car service provided by the Company); (f) $14,105 for tax consulting expense; (g) $2,863 for living expense; (h) $79,674 for separation payment; (i) 28,055 for unused leave allowance; (j) 7,676 for moving expense for his repatriation; (k) $1,229 for medical check for spouse; (l) $511 for meal allowance and welfare points; (m) $75,432 of reimbursement for the difference between the actual tax Mr. J. Kim already paid and the hypothetical tax he is expected to pay for the fiscal year 2020; and (n) $242,224 for reimbursement of Korean tax. For item (m), the value of the tax reimbursement is our best estimate of such amounts, in accordance with applicable SEC guidance. However, the actual value of such amount for Mr. J. Kim may differ. |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales—standard products business | $ | 465.5 | 91.8 | % | $ | 484.8 | 93.1 | % | $ | (19.3 | ) | |||||||||
Net sales—transitional Fab 3 foundry services | 41.5 | 8.2 | 35.8 | 6.9 | 5.7 | |||||||||||||||
Total revenues | 507.1 | 100.0 | 520.7 | 100.0 | (13.6 | ) | ||||||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales—standard products business | 338.4 | 66.7 | 368.5 | 70.8 | (30.0 | ) | ||||||||||||||
Cost of sales—transitional Fab 3 foundry services | 40.3 | 8.0 | 35.8 | 6.9 | 4.5 | |||||||||||||||
Total cost of sales | 378.7 | 74.7 | 404.3 | 77.6 | (25.5 | ) | ||||||||||||||
Gross profit | 128.3 | 25.3 | 116.4 | 22.4 | 11.9 | |||||||||||||||
Selling, general and administrative expenses | 50.0 | 9.9 | 47.6 | 9.1 | 2.4 | |||||||||||||||
Research and development expenses | 45.7 | 9.0 | 45.0 | 8.6 | 0.7 | |||||||||||||||
Early termination and other charges | 5.6 | 1.1 | 0.1 | 0.0 | 5.6 | |||||||||||||||
Operating income | 27.0 | 5.3 | 23.7 | 4.6 | 3.3 | |||||||||||||||
Interest expense | (18.1 | ) | (3.6 | ) | (22.2 | ) | (4.3 | ) | 4.0 | |||||||||||
Foreign currency loss, net | (0.4 | ) | (0.1 | ) | (22.3 | ) | (4.3 | ) | 21.9 | |||||||||||
Loss on early extinguishment of borrowings, net | (0.8 | ) | (0.2 | ) | (0.0 | ) | (0.0 | ) | (0.7 | ) | ||||||||||
Others, net | 3.1 | 0.6 | 2.6 | 0.5 | 0.5 | |||||||||||||||
(16.2 | ) | (3.2 | ) | (41.9 | ) | (8.1 | ) | 25.8 | ||||||||||||
Income (loss) from continuing operations before income tax expense | 10.8 | 2.1 | (18.2 | ) | (3.5 | ) | 29.0 | |||||||||||||
Income tax expense (benefit) | (46.2 | ) | (9.1 | ) | 2.2 | 0.4 | (48.4 | ) | ||||||||||||
Income (loss) from continuing operations | 57.1 | 11.3 | (20.4 | ) | (3.9 | ) | 77.5 | |||||||||||||
Income (loss) from discontinued operations, net of tax | 287.9 | 56.8 | (1.4 | ) | (0.3 | ) | 289.3 | |||||||||||||
Net income (loss) | $ | 345.0 | 68.0 | % | $ | (21.8 | ) | (4.2 | )% | $ | 366.8 | |||||||||
Estimated Future Payouts Under Equity Incentive Plan Awards (#) | All Other Stock Awards: Number of Shares of Stock or Units (#)(1) | Grant Date Fair Value of Stock and Option Awards ($)(5) | ||||||||||||||||||||||
Name | Grant Date | Threshold | Target | Maximum | ||||||||||||||||||||
Young-Joon Kim | 5/7/2020 | (1) | 32,507 | 384,558 | ||||||||||||||||||||
6/2/2020 | (2) | 33,880 | 67,760 | 101,640 | 758,234 | |||||||||||||||||||
5/7/2020 | (3) | 14,520 | 29,040 | 58,080 | (4) | 343,543 | ||||||||||||||||||
Jonathan Kim | — | |||||||||||||||||||||||
Theodore Kim | 5/7/2020 | (1) | 20,000 | 236,600 | ||||||||||||||||||||
5/22/2020 | (1) | 7,000 | 75,110 | |||||||||||||||||||||
6/2/2020 | (2) | 7,000 | 14,000 | 21,000 | 156,660 | |||||||||||||||||||
5/7/2020 | (3) | 3,000 | 6,000 | 12,000 | (4) | 70,980 | ||||||||||||||||||
Woung Moo Lee | 5/7/2020 | (1) | 17,500 | 207,025 | ||||||||||||||||||||
6/2/2020 | (2) | 6,125 | 12,250 | 18,375 | 137,078 | |||||||||||||||||||
5/7/2020 | (3) | 2,625 | 5,250 | 10,500 | (4) | 62,108 | ||||||||||||||||||
Young Soo Woo | 5/25/2020 | (1) | 18,000 | 193,140 | ||||||||||||||||||||
Chan Ho Park | 6/1/2020 | (1) | 15,000 | 166,350 |
(1) | Represents the service-vesting RSUs granted during fiscal year 2020 to our named executive officers. Further information on the RSU awards can be found in the “Compensation Discussion & Analysis” section above. |
(2) | Represents the performance-based vesting Financial PSUs granted during fiscal year 2020 to our named executive officers. The Compensation Committee is required to certify the actual amount earned for each performance goal for the performance period, within 60 days following the end of the performance period. Upon such determination, the applicable portion of the units corresponding to the payout percentage vests. |
(3) | Represents the performance-based vesting TSR PSUs granted during fiscal year 2020 to our named executive officers. The Compensation Committee is required to certify the actual amount earned for each performance goal for the performance period, within 60 days following the end of the performance period. Upon such determination, the applicable portion of the units corresponding to the payout percentage vests. |
(4) | Represents in the “Supermaximum” performance level. The TSR payout percentage is represented by four performance levels: “Threshold,” “Target,” “Maximum” and “Supermaximum.” Supermaximum is achieved only if Magnachip ranks first in the TSR Index and the applicable payout percentage is 200%. The payout percentage is 150% for “Maximum” performance. |
(5) | Represents the grant date fair value of each equity-based award as determined in accordance with FASB ASC 718. For the performance-based equity awards, the amounts are reported at target performance. |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales—standard products business | ||||||||||||||||||||
Display Solutions | 299.1 | 59.0 | 308.5 | 59.3 | (9.5 | ) | ||||||||||||||
Power Solutions | 166.5 | 32.8 | 176.3 | 33.9 | (9.9 | ) | ||||||||||||||
Total standard products business | 465.5 | 91.8 | 484.8 | 93.1 | (19.3 | ) | ||||||||||||||
Net sales—transitional Fab 3 foundry services | 41.5 | 8.2 | 35.8 | 6.9 | 5.7 | |||||||||||||||
Total revenues | $ | 507.1 | 100.0 | % | $ | 520.7 | 100.0 | % | $ | (13.6 | ) | |||||||||
Option Awards | ||||||||||||||||||||
Name | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Option Exercise Price($) | Option Expiration Date | |||||||||||||||
Young-Joon Kim | 5/6/2013 | 200,000 | (1) | — | 15.96 | 5/6/2023 | ||||||||||||||
6/9/2015 | 90,610 | (2) | — | 7.64 | 6/9/2025 | |||||||||||||||
3/11/2016 | 45,305 | (3) | — | 5.53 | 3/11/2026 | |||||||||||||||
Young Soo Woo | — | — | — | — | — | |||||||||||||||
Theodore Kim | 10/26/2013 | 50,000 | (5) | — | 21.79 | 10/26/2023 | ||||||||||||||
6/9/2015 | 51,740 | (2) | — | 7.64 | 6/9/2025 | |||||||||||||||
3/11/2016 | 25,870 | (3) | — | 5.53 | 3/11/2026 | |||||||||||||||
Woung Moo Lee | 11/1/2013 | 50,000 | (6) | — | 19.56 | 11/1/2023 | ||||||||||||||
6/9/2015 | 43,940 | (2) | — | 7.64 | 6/9/2025 | |||||||||||||||
3/11/2016 | 25,870 | (3) | — | 5.53 | 3/11/2026 | |||||||||||||||
Chan Ho Park | — | — | — | — | — | |||||||||||||||
Jonathan Kim | 3/12/2014 | 12,500 | (4) | — | 13.93 | 3/27/2022 | ||||||||||||||
6/12/2014 | 12,500 | (4) | — | 12.44 | 3/27/2022 | |||||||||||||||
9/12/2014 | 12,500 | (4) | — | 12.18 | 3/27/2022 | |||||||||||||||
12/12/2014 | 12,500 | (4) | — | 12.96 | 3/27/2022 | |||||||||||||||
6/9/2015 | — | (2) | — | 7.64 | 3/27/2022 | |||||||||||||||
3/11/2016 | — | (3) | — | 5.53 | 3/27/2022 |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||||||||||||||
Amount | % of Net Sales | Amount | % of Net Sales | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Gross Profit | ||||||||||||||||||||
Gross profit—standard products business | 127.1 | 27.3 | 116.4 | 24.0 | 10.7 | |||||||||||||||
Gross profit—transitional Fab 3 foundry services | 1.2 | 2.9 | — | — | 1.2 | |||||||||||||||
Total gross profit | $ | 128.3 | 25.3 | % | $ | 116.4 | 22.4 | % | $ | 11.9 | ||||||||||
Stock Awards | ||||||||||||||||||||
Name | Grant Date | Number of Shares or Units of Stock That Have Not Vested (#)(7) | Market Value of Shares or Units of Stock That Have Not Vested ($)(8) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)(9) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(10) | |||||||||||||||
Young-Joon Kim | 10/22/2019 | — | — | 23,880 | 322,858 | |||||||||||||||
5/7/2020 | 21,672 | (12) | 293,005 | 29,040 | 392,621 | |||||||||||||||
Theodore Kim | 10/22/2019 | 7,500 | (11) | 101,400 | 6,750 | 91,260 | ||||||||||||||
5/7/2020 | 13,334 | (12) | 180,276 | 6,000 | 81,120 | |||||||||||||||
5/22/2020 | 7,000 | (13) | 94,640 | |||||||||||||||||
Woung Moo Lee | 10/22/2019 | 7,834 | (11) | 105,916 | 7,050 | 95,316 | ||||||||||||||
5/7/2020 | 11,667 | (12) | 157,738 | 5,250 | 70,980 | |||||||||||||||
Young Soo Woo | 5/25/2020 | 18,000 | (14) | 243,360 | — | — | ||||||||||||||
Chan Ho Park | 6/1/2020 | 15,000 | (15) | 202,800 | — | — | ||||||||||||||
Jonathan Kim | — | — | — | — | — |
(1) | An installment of 34% of the shares of common stock subject to the options vested and became exercisable on May 6, 2014, an additional 9% of the options vested on the completion of the next period of three months, an additional 8% of the options vested upon the completion of each of the next three periods of three months, an additional 9% of the options vested upon the completion of the next period of three months, and an additional 8% of the options vested upon the completion of each of the next three periods of three months. |
(2) | An installment of 50% of the shares of common stock subject to the options vested and became exercisable on June 9, 2015, with the remaining 50% vesting in three equal annual installments on the first three anniversaries of June 9, 2015. |
(3) | The shares of common stock subject to the options vested and became exercisable in three equal annual installments on the first three anniversaries of March 11, 2016. |
(4) | An installment of 34% of the shares of common stock subject to the options vested and became exercisable on March 12, 2015, an additional 9% of the options vested on the completion of the next period of three months, an additional 8% of the options vested upon the completion of each of the next three periods of three months, an additional 9% of the options vested upon the completion of the next period of three months, and an additional 8% of the options vested upon the completion of each of the next three periods of three months. |
(5) | An installment of 34% of the shares of common stock subject to the options vested and became exercisable on October 26, 2014, an additional 9% of the options vested on the completion of the next period of three months, an additional 8% of the options vested upon the completion of each of the next three periods of three months, an additional 9% of the options vested upon the completion of the next period of three months, and an additional 8% of the options vested upon the completion of each of the next three periods of three months. |
(6) | An installment of 34% of the shares of common stock subject to the options vested and became exercisable on November 1, 2014, an additional 9% of the options vested on the completion of the next period of three months, an additional 8% of the options vested upon the completion of each of the next three periods of three months, an additional 9% of the options vested upon the completion of the next period of three months, and an additional 8% of the options vested upon the completion of each of the next three periods of three months. |
(7) | Represents unvested service-vesting RSUs granted on May 7, 2020 for Mr. YJ Kim; October 22, 2019 and May 7, 2020 for Mr. WM Lee; October 22, 2019, May 7, 2020 and May 22, 2020 for Mr. T. Kim; May 25, 2020 for Mr. YS Woo; and June 1, 2020 for Mr. CH Park. |
(8) | Represents the market value of RSUs based on our closing per share price of $13.52 on December 31, 2020, the last trading day of 2020. |
(9) | Represents unvested TSR PSUs granted on October 22, 2019 and May 7, 2020 for Mr. YJ Kim, Mr. WM Lee and Mr. T. Kim at target performance level. The TSR PSUs will vest based on achievement of the TSR performance goal over the 2019-2021 performance period (for the 2019 grants) and 2020-2022 performance period (for the 2020 grants). |
(10) | Represents the market value of TSR PSUs at target performance level based on our closing per share price of $13.52 on December 31, 2020, the last trading day of 2020. |
(11) | An installment of 67% of the shares of common stock subject to the RSU vested, with the remaining 33% to vest on December 31, 2022. |
(12) | An installment of 34% of the shares of common stock subject to the RSU vested, with the remaining 33% to vest on December 31, 2021 and 33% to vest in December 31, 2022. |
(13) | Represents unvested service-vesting RSUs granted on May 22, 2020 for Mr. T Kim, 100% of which vested on March 1, 2021. |
(14) | Represents unvested service-vesting RSUs granted on May 25, 2020 for Mr. YS Woo that will vest over a period of three years at a rate of one-third (1/3) of the total granted RSUs vesting on each anniversary of the date of the grant. |
(15) | Represents unvested service-vesting RSUs granted on June 1, 2020 for Mr. CH Park that will vest over a period of three years at a rate of one-third (1/3) of the total granted RSUs vesting on each anniversary of the date of the grant. |
Year Ended December 31, 2020 | Year Ended December 31, 2019 | |||||||||||||||||||
Amount | % of Net Sales – standard products business | Amount | % of Net Sales – standard products business | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Korea | $ | 106.4 | 22.9 | % | $ | 132.6 | 27.4 | % | $ | (26.2 | ) | |||||||||
Asia Pacific (other than Korea) | 347.6 | 74.7 | 343.7 | 70.9 | 3.9 | |||||||||||||||
United States | 5.1 | 1.1 | 2.4 | 0.5 | 2.7 | |||||||||||||||
Europe | 4.3 | 0.9 | 4.8 | 1.0 | (0.5 | ) | ||||||||||||||
Others | 2.0 | 0.4 | 1.4 | 0.3 | 0.7 | |||||||||||||||
$ | 465.5 | 100.0 | % | $ | 484.8 | 100.0 | % | $ | (19.3 | ) | ||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales—standard products business | $ | 484.8 | 93.1 | % | $ | 425.5 | 91.4 | % | $ | 59.4 | ||||||||||
Net sales—transitional Fab 3 foundry services | 35.8 | 6.9 | 39.9 | 8.6 | (4.1 | ) | ||||||||||||||
Total revenues | 520.7 | 100.0 | 465.4 | 100.0 | 55.2 | |||||||||||||||
Cost of sales | ||||||||||||||||||||
Cost of sales—standard products business | 368.5 | 70.8 | 309.8 | 66.6 | 58.6 | |||||||||||||||
Cost of sales—transitional Fab 3 foundry services | 35.8 | 6.9 | 39.9 | 8.6 | (4.1 | ) | ||||||||||||||
Total cost of sales | 404.3 | 77.6 | 349.8 | 75.2 | 54.5 | |||||||||||||||
Gross profit | 116.4 | 22.4 | 115.6 | 24.8 | 0.7 | |||||||||||||||
Selling, general and administrative expenses | 47.6 | 9.1 | 47.7 | 10.3 | (0.1 | ) | ||||||||||||||
Research and development expenses | 45.0 | 8.6 | 46.0 | 9.9 | (1.0 | ) | ||||||||||||||
Early termination and other charges | 0.1 | 0.0 | — | — | 0.1 | |||||||||||||||
Operating income | 23.7 | 4.6 | 21.9 | 4.7 | 1.8 | |||||||||||||||
Interest expense | (22.2 | ) | (4.3 | ) | (22.0 | ) | (4.7 | ) | (0.2 | ) | ||||||||||
Foreign currency loss, net | (22.3 | ) | (4.3 | ) | (26.3 | ) | (5.7 | ) | 4.0 | |||||||||||
Loss on early extinguishment of borrowings, net | (0.0 | ) | (0.0 | ) | (0.2 | ) | (0.0 | ) | 0.2 | |||||||||||
Others, net | 2.6 | 0.5 | (0.2 | ) | (0.0 | ) | 2.8 | |||||||||||||
(41.9 | ) | (8.1 | ) | (48.7 | ) | (10.5 | ) | 6.8 | ||||||||||||
Loss from continuing operations before income tax expense | (18.2 | ) | (3.5 | ) | (26.9 | ) | (5.8 | ) | 8.6 | |||||||||||
Income tax expense (benefit) | 2.2 | 0.4 | (1.1 | ) | (0.2 | ) | 3.3 | |||||||||||||
Loss from continuing operations | (20.4 | ) | (3.9 | ) | (25.8 | ) | (5.5 | ) | 5.4 | |||||||||||
Income (loss) from discontinued operations, net of tax | (1.4 | ) | (0.3 | ) | 21.9 | 4.7 | (23.3 | ) | ||||||||||||
Net loss | $ | (21.8 | ) | (4.2 | )% | $ | (3.9 | ) | (0.8 | )% | $ | (17.9 | ) | |||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||
Amount | % of Total revenues | Amount | % of Total revenues | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Revenues | ||||||||||||||||||||
Net sales—standard products business | ||||||||||||||||||||
Display Solutions | 308.5 | 59.3 | 256.1 | 55.0 | 52.4 | |||||||||||||||
Power Solutions | 176.3 | 33.9 | 169.4 | 36.4 | 6.9 | |||||||||||||||
Total standard products business | 484.8 | 93.1 | 425.5 | 91.4 | 59.4 | |||||||||||||||
Net sales—transitional Fab 3 foundry services | 35.8 | 6.9 | 39.9 | 8.6 | (4.1 | ) | ||||||||||||||
Total revenues | $ | 520.7 | 100.0 | % | $ | 465.4 | 100.0 | % | $ | 55.2 | ||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||
Amount | % of Net Sales | Amount | % of Net Sales | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Gross Profit | ||||||||||||||||||||
Gross profit—standard products business | 116.4 | 24.0 | 115.6 | 27.2 | 0.7 | |||||||||||||||
Gross profit—transitional Fab 3 foundry services | — | — | — | — | — | |||||||||||||||
Total gross profit | $ | 116.4 | 22.4 | % | $ | 115.6 | 24.8 | % | $ | 0.7 | ||||||||||
Year Ended December 31, 2019 | Year Ended December 31, 2018 | |||||||||||||||||||
Amount | % of Net Sales – standard products business | Amount | % of Net Sales – standard products business | Change Amount | ||||||||||||||||
(In millions) | ||||||||||||||||||||
Korea | $ | 132.6 | 27.4 | % | $ | 176.1 | 41.4 | % | $ | (43.5 | ) | |||||||||
Asia Pacific (other than Korea) | 343.7 | 70.9 | 241.5 | 56.7 | 102.2 | |||||||||||||||
United States | 2.4 | 0.5 | 2.0 | 0.5 | 0.4 | |||||||||||||||
Europe | 4.8 | 1.0 | 4.4 | 1.0 | 0.4 | |||||||||||||||
Others | 1.4 | 0.3 | 1.6 | 0.4 | (0.2 | ) | ||||||||||||||
$ | 484.8 | 100.0 | % | $ | 425.5 | 100.0 | % | $ | 59.4 | |||||||||||
Payments Due by Period | ||||||||||||||||||||||||||||
Total | 2021 | 2022 | 2023 | 2024 | 2025 | Thereafter | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||
Exchangeable Notes(1) | $ | 85.8 | $ | 85.8 | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Operating leases(2) | 5.0 | 2.4 | 1.0 | 0.6 | 0.6 | 0.4 | — | |||||||||||||||||||||
Finance leases(2) | 0.2 | 0.1 | 0.1 | 0.1 | — | — | — | |||||||||||||||||||||
Water Treatment Services(2)(3) | 30.4 | 4.3 | 4.2 | 4.2 | 4.0 | 4.0 | 9.7 | |||||||||||||||||||||
Others(2)(4) | 6.0 | 3.3 | 1.8 | 0.7 | 0.1 | 0.1 | — |
Option Awards | Stock Awards | |||||||||||||||
Name | Number of Shares Acquired on Exercise (#) | Value Realized on Exercise ($) | Number of Shares Acquired on Vesting (#)(1) | Value Realized on Vesting ($)(2) | ||||||||||||
Young-Joon Kim | — | — | 103,473 | 1,832,852 | ||||||||||||
Jonathan Kim | 104,910 | 492,199 | (3) | — | — | |||||||||||
Theodore Kim | — | — | 37,306 | 594,025 | ||||||||||||
Woung Moo Lee | — | — | 36,539 | 572,452 | ||||||||||||
Young Soo Woo | — | — | — | — | ||||||||||||
Chan Ho Park | — | — | — | — |
(1) |
(2) |
(3) |
December 31, | ||||||||
2020 | 2019 | |||||||
(In thousands of U.S. dollars, except share data) | ||||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 279,940 | $ | 151,657 | ||||
Accounts receivable, net | 64,390 | 47,447 | ||||||
Inventories, net | 39,039 | 41,404 | ||||||
Other receivables | 4,338 | 10,200 | ||||||
Prepaid expenses | 7,332 | 9,003 | ||||||
Hedge collateral (Note 10) | 5,250 | 9,820 | ||||||
Other current assets | 9,321 | 10,013 | ||||||
Current assets held for sale (Note 2) | — | 99,821 | ||||||
Total current assets | 409,610 | 379,365 | ||||||
Property, plant and equipment, net | 96,383 | 73,068 | ||||||
Operating lease right-of-use | 4,632 | 1,876 | ||||||
Intangible assets, net | 2,727 | 2,769 | ||||||
Long-term prepaid expenses | 4,058 | 5,757 | ||||||
Deferred income taxes (Note 17) | 44,541 | 154 | ||||||
Other non-current assets | 9,739 | 8,905 | ||||||
Non-current assets held for sale (Note 2) | — | 123,434 | ||||||
Total assets | $ | 571,690 | $ | 595,328 | ||||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 52,164 | $ | 40,376 | ||||
Other accounts payable | 2,531 | 6,410 | ||||||
Accrued expenses (Note 9) | 16,241 | 44,799 | ||||||
Accrued income taxes | 12,398 | 1,569 | ||||||
Operating lease liabilities | 2,210 | 1,625 | ||||||
Current portion of long-term borrowings, net | 83,479 | — | ||||||
Other current liabilities | 4,595 | 2,014 | ||||||
Current liabilities held for sale (Note 2) | — | 37,040 | ||||||
Total current liabilities | 173,618 | 133,833 | ||||||
Long-term borrowings, net | 0— | 304,743 | ||||||
Accrued severance benefits, net | 40,462 | 51,181 | ||||||
Non-current operating lease liabilities | 2,422 | 251 | ||||||
Other non-current liabilities | 9,588 | 9,420 | ||||||
Non-current liabilities held for sale (Note 2) | — | 110,881 | ||||||
Total liabilities | 226,090 | 610,309 | ||||||
Commitments and contingencies (Note 19) | 0 | 0 | ||||||
Stockholders’ equity | ||||||||
Common stock, $0.01 par value, 150,000,000 shares authorized, 44,943,854 shares issued and 35,783,347 outstanding at December 31, 2020 and 43,851,991 shares issued and 34,800,312 outstanding at December 31, 2019 | 450 | 439 | ||||||
Additional paid-in capital | 163,010 | 152,404 | ||||||
Retained earnings (deficit) | 286,834 | (58,131 | ) | |||||
Treasury stock, 9,160,507 shares at December 31, 2020 and 9,051,679 shares at December 31, 2019, respectively | (108,397 | ) | (107,033 | ) | ||||
Accumulated other comprehensive income (loss) | 3,703 | (2,660 | ) | |||||
Total stockholders’ equity (deficit) | 345,600 | (14,981 | ) | |||||
Total liabilities and stockholders’ equity | $ | 571,690 | $ | 595,328 | ||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||
Revenues: | ||||||||||||
Net sales—standard products business | $ | 465,519 | $ | 484,847 | $ | 425,490 | ||||||
Net sales—transitional Fab 3 foundry services | 41,540 | 35,824 | 39,935 | |||||||||
Total revenues | 507,059 | 520,671 | 465,425 | |||||||||
Cost of sales: | ||||||||||||
Cost of sales—standard products business | 338,420 | 368,450 | 309,842 | |||||||||
Cost of sales—transitional Fab 3 foundry services | 40,322 | 35,824 | 39,935 | |||||||||
Total cost of sales | 378,742 | 404,274 | 349,777 | |||||||||
Gross profit | 128,317 | 116,397 | 115,648 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 49,974 | 47,595 | 47,712 | |||||||||
Research and development expenses | 45,698 | 45,024 | 46,044 | |||||||||
Early termination and other charges | 5,629 | 53 | — | |||||||||
Total operating expenses | 101,301 | 92,672 | 93,756 | |||||||||
Operating income: | 27,016 | 23,725 | 21,892 | |||||||||
Interest expense | (18,147 | ) | (22,157 | ) | (22,006 | ) | ||||||
Foreign currency loss, net | (382 | ) | (22,316 | ) | (26,307 | ) | ||||||
Loss on early extinguishment of borrowings, net | (766 | ) | (42 | ) | (206 | ) | ||||||
Other income (expense), net | 3,110 | 2,577 | (229 | ) | ||||||||
Income (loss) from continuing operations before income tax expense | 10,831 | (18,213 | ) | (26,856 | ) | |||||||
Income tax expense (benefit) | (46,228 | ) | 2,200 | (1,079 | ) | |||||||
Income (loss) from continuing operations | 57,059 | (20,413 | ) | (25,777 | ) | |||||||
Income (loss) from discontinued operations, net of tax | 287,906 | (1,413 | ) | 21,877 | ||||||||
Net income (loss) | $ | 344,965 | $ | (21,826 | ) | $ | (3,900 | ) | ||||
Basic earnings (loss) per common share— | ||||||||||||
Continuing operations | $ | 1.62 | $ | (0.59 | ) | $ | (0.75 | ) | ||||
Discontinued operations | 8.18 | (0.05 | ) | 0.64 | ||||||||
Total | $ | 9.80 | $ | (0.64 | ) | $ | (0.11 | ) | ||||
Diluted earnings (loss) per common share— | ||||||||||||
Continuing operations | $ | 1.35 | $ | (0.59 | ) | $ | (0.75 | ) | ||||
Discontinued operations | 6.19 | (0.05 | ) | 0.64 | ||||||||
Total | $ | 7.54 | $ | (0.64 | ) | $ | (0.11 | ) | ||||
Weighted average number of shares— | ||||||||||||
Basic | 35,213,525 | 34,321,888 | 34,469,921 | |||||||||
Diluted | 46,503,586 | 34,321,888 | 34,469,921 |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(In thousands of U.S. dollars) | ||||||||||||
Net income (loss) | $ | 344,965 | $ | (21,826 | ) | $ | (3,900 | ) | ||||
Other comprehensive income (loss) | ||||||||||||
Foreign currency translation adjustments | 6,274 | 15,856 | 18,352 | |||||||||
Derivative adjustments | ||||||||||||
Fair valuation of derivatives | 1,452 | (2,894 | ) | (1,589 | ) | |||||||
Reclassification adjustment for loss (gain) on derivatives included in net income (loss) | (1,363 | ) | 4,488 | (3,759 | ) | |||||||
Total other comprehensive income | 6,363 | 17,450 | 13,004 | |||||||||
Total comprehensive income (loss) | $ | 351,328 | $ | (4,376 | ) | $ | 9,104 | |||||
Common Stock | Additional Paid-In Capital | Retained Earnings (Deficit) | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||
(In thousands of U.S. dollars, except share data) | Shares | Amount | ||||||||||||||||||||||||||
Balance at December 31, 2017, as previously reported | 34,189,599 | $ | 426 | $ | 136,259 | $ | (40,889 | ) | $ | (102,319 | ) | $ | (33,114 | ) | $ | (39,637 | ) | |||||||||||
Impact of adopting the new revenue standard | — | — | — | 8,484 | — | — | 8,484 | |||||||||||||||||||||
Balance at January 1, 2018, as adjusted | 34,189,599 | $ | 426 | $ | 136,259 | $ | (32,405 | ) | $ | (102,319 | ) | $ | (33,114 | ) | $ | (31,153 | ) | |||||||||||
Stock-based compensation | — | — | 5,213 | — | — | — | 5,213 | |||||||||||||||||||||
Exercise of stock options | 162,341 | 2 | 1,131 | — | — | — | 1,133 | |||||||||||||||||||||
Settlement of restricted stock units | 328,309 | 3 | (3 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (239,017 | ) | — | — | — | (1,607 | ) | — | (1,607 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 13,004 | 13,004 | |||||||||||||||||||||
Net loss | — | — | — | (3,900 | ) | — | — | (3,900 | ) | |||||||||||||||||||
Balance at December 31, 2018 | 34,441,232 | $ | 431 | $ | 142,600 | $ | (36,305 | ) | $ | (103,926 | ) | $ | (20,110 | ) | $ | (17,310 | ) | |||||||||||
Stock-based compensation | — | — | 6,952 | — | — | — | 6,952 | |||||||||||||||||||||
Exercise of stock options | 452,819 | 4 | 2,856 | — | — | — | 2,860 | |||||||||||||||||||||
Settlement of restricted stock units | 344,714 | 4 | (4 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (438,453 | ) | — | — | — | (3,107 | ) | — | (3,107 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 17,450 | 17,450 | |||||||||||||||||||||
Net loss | — | — | — | (21,826 | ) | — | — | (21,826 | ) | |||||||||||||||||||
Balance at December 31, 2019 | 34,800,312 | $ | 439 | $ | 152,404 | $ | (58,131 | ) | $ | (107,033 | ) | $ | (2,660 | ) | $ | (14,981 | ) | |||||||||||
Stock-based compensation | — | — | 6,699 | — | — | — | 6,699 | |||||||||||||||||||||
Exercise of stock options | 510,648 | 5 | 3,913 | — | — | — | 3,918 | |||||||||||||||||||||
Settlement of restricted stock units | 581,215 | 6 | (6 | ) | — | — | — | — | ||||||||||||||||||||
Acquisition of treasury stock | (108,828 | ) | — | — | — | (1,364 | ) | — | (1,364 | ) | ||||||||||||||||||
Other comprehensive income, net | — | — | — | — | — | 6,363 | 6,363 | |||||||||||||||||||||
Net income | — | — | — | 344,965 | — | — | 344,965 | |||||||||||||||||||||
Balance at December 31, 2020 | 35,783,347 | $ | 450 | $ | 163,010 | $ | 286,834 | $ | (108,397 | ) | $ | 3,703 | $ | 345,600 | ||||||||||||||
Year | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(In | ||||||||||||
Cash | ||||||||||||
Net income (loss) | $ | 344,965 | $ | (21,826 | ) | $ | (3,900 | ) | ||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities | ||||||||||||
Depreciation and amortization | 16,481 | 32,729 | 32,048 | |||||||||
Provision for severance benefits | 16,743 | 17,139 | 17,644 | |||||||||
Amortization of debt issuance costs and original issue discount | 2,220 | 2,299 | 2,183 | |||||||||
Loss (gain) on foreign currency, net | (23,233 | ) | 24,692 | 30,215 | ||||||||
Restructuring and other charges | 3,502 | 3,598 | — | |||||||||
Provision for inventory reserves | 3,695 | 10,468 | 4,290 | |||||||||
Stock-based compensation | 6,699 | 6,952 | 4,409 | |||||||||
Loss on early extinguishment of borrowings, net | 766 | 42 | 206 | |||||||||
Gain on sale of discontinued operations | (287,117 | ) | — | — | ||||||||
Deferred income tax assets | (44,441 | ) | 35 | 54 | ||||||||
Others, net | 217 | 247 | (1,235 | ) | ||||||||
Changes in operating assets and liabilities | ||||||||||||
Accounts receivable, net | (19,268 | ) | (19,824 | ) | 8,294 | |||||||
Unbilled accounts receivable, net | 14,260 | 19,274 | (1,284 | ) | ||||||||
Inventories | (816 | ) | (14,678 | ) | (34,965 | ) | ||||||
Other receivables | 6,954 | (6,200 | ) | 1,260 | ||||||||
Other current assets | 13,561 | 11,984 | 9,942 | |||||||||
Accounts payable | 3,960 | 7,375 | (8,389 | ) | ||||||||
Other accounts payable | (12,000 | ) | (8,518 | ) | (11,183 | ) | ||||||
Accrued expenses | (28,756 | ) | 5,279 | (3,926 | ) | |||||||
Accrued income taxes | 10,825 | 267 | 1,103 | |||||||||
Deferred revenue | 2,174 | (4,768 | ) | 2,891 | ||||||||
Other current liabilities | 279 | (4,727 | ) | 1,020 | ||||||||
Other non-current liabilities | 3,521 | (306 | ) | 2,346 | ||||||||
Contributions to severance insurance deposit accounts | (11,921 | ) | (2,262 | ) | (2,532 | ) | ||||||
Payment of severance benefits | (12,076 | ) | (9,288 | ) | (11,688 | ) | ||||||
Others, net | (3,724 | ) | 514 | 433 | ||||||||
Net cash provided by operating activities | 7,470 | 50,497 | 39,236 | |||||||||
Cash flows from investing activities | ||||||||||||
Proceeds from settlement of hedge collateral | 13,762 | 13,583 | 14,342 | |||||||||
Payment of hedge collateral | (8,839 | ) | (17,833 | ) | (12,907 | ) | ||||||
Proceeds from disposal of plant, property and equipment | 65 | 202 | 1,685 | |||||||||
Purchase of property, plant and equipment | (36,100 | ) | (22,955 | ) | (28,948 | ) | ||||||
Payment for property related to water treatment facility arrangement | — | — | (4,283 | ) | ||||||||
Payment for intellectual property registration | (741 | ) | (1,103 | ) | (961 | ) | ||||||
Collection of guarantee deposits | 1,024 | 549 | 801 | |||||||||
Payment of guarantee deposits | (1,236 | ) | (1,349 | ) | (3,016 | ) | ||||||
Proceeds from sale of discontinued operations | 350,553 | — | — | |||||||||
Other, net | (6 | ) | 9 | (19 | ) | |||||||
Net cash provided by (used in) investing activities | 318,482 | (28,897 | ) | (33,306 | ) | |||||||
Cash flows from financing activities | ||||||||||||
Repayment of borrowings | (224,250 | ) | (1,175 | ) | (2,228 | ) | ||||||
Proceeds from exercise of stock options | 3,918 | 2,860 | 1,132 | |||||||||
Acquisition of treasury stock | (1,125 | ) | (2,702 | ) | (1,607 | ) | ||||||
Proceeds from property related to water treatment facility arrangement | 0— | — | 4,283 | |||||||||
Repayment of financing related to water treatment facility arrangement | (546 | ) | (552 | ) | (286 | ) | ||||||
Others | (278 | ) | (233 | ) | — | |||||||
Net cash provided by (used in) financing activities | (222,281 | ) | (1,802 | ) | 1,294 | |||||||
Effect of exchange rates on cash and cash equivalents | 24,612 | (579 | ) | (3,361 | ) | |||||||
Net increase in cash and cash equivalents | 128,283 | 19,219 | 3,863 | |||||||||
Cash and cash equivalents | ||||||||||||
Beginning of the period | 151,657 | 132,438 | 128,575 | |||||||||
End of the period | $ | 279,940 | $ | 151,657 | $ | 132,438 | ||||||
Supplemental cash flow information | ||||||||||||
Cash paid for interest | $ | 22,221 | $ | 19,071 | $ | 19,255 | ||||||
Cash paid for income taxes | $ | 23,056 | $ | 2,081 | $ | 920 | ||||||
Non-cash investing and financing activities | ||||||||||||
Property, plant and equipment additions in other accounts payable | $ | — | $ | 2,542 | $ | 5,249 | ||||||
Acquisition of treasury stock to satisfy the tax withholding obligations in connection with equity-based compensation | $ | (643 | ) | $ | (405 | ) | $ | — | ||||
Name | Plan Name | Number of Years of Credited Service (#) | Present Value of Accumulated Benefit ($)(1) | Payments During the Last Fiscal Year($) | ||||||||||
Young Joon Kim | Statutory Severance | 8 | 364,930 | — | ||||||||||
Jonathan Kim | Statutory Severance | 7 | — | 178,567 | ||||||||||
Theodore Kim | Statutory Severance | 8 | 204,311 | — | ||||||||||
Woung Moo Lee | Statutory Severance | 8 | 192,121 | — | ||||||||||
Young Soo Woo | Statutory Severance | 1 | 17,362 | — | ||||||||||
Chan Ho Park | Statutory Severance | 1 | 16,439 | — |
(1) | The value reported in this column represents the accumulated amount of the benefit for each executive based on the formula described above of one month of base salary per year of credited service. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||
Revenues: | ||||||||||||
Net sales—Foundry Services Group | $ | 254,732 | $ | 307,348 | $ | 325,408 | ||||||
Net sales—transitional Fab 3 foundry services | (25,887 | ) | (35,824 | ) | (39,935 | ) | ||||||
Total revenues | 228,845 | 271,524 | 285,473 | |||||||||
Cost of sales: | ||||||||||||
Cost of sales—Foundry Services Group | 182,872 | 243,134 | 242,960 | |||||||||
Cost of sales—transitional Fab 3 foundry services | (25,887 | ) | (35,824 | ) | (39,935 | ) | ||||||
Total cost of sales | 156,985 | 207,310 | 203,025 | |||||||||
Gross profit | 71,860 | 64,214 | 82,448 | |||||||||
Operating expenses: | ||||||||||||
Selling, general and administrative expenses | 14,797 | 24,042 | 24,927 | |||||||||
Research and development expenses | 19,484 | 30,332 | 31,995 | |||||||||
Restructuring and other charges | 15,873 | 9,142 | — | |||||||||
Total operating expenses | 50,154 | 63,516 | 56,922 | |||||||||
Operating income from discontinued operations | 21,706 | 698 | 25,526 | |||||||||
Foreign currency gain, net | 1,277 | 503 | 1,862 | |||||||||
Others, net | 72 | (67 | ) | 217 | ||||||||
Income from discontinued operations before income tax expense | 23,055 | 1,134 | 27,605 | |||||||||
Income tax expense | 11,452 | 2,547 | 5,728 | |||||||||
Gain on sale of discontinued operations | 287,117 | — | — | |||||||||
Transaction costs | (10,814 | ) | — | — | ||||||||
Income (loss) from discontinued operations, net of tax | 287,906 | (1,413 | ) | 21,877 | ||||||||
December 31, 2019 | ||||
(In thousands of U.S. dollars) | ||||
Assets | ||||
Current assets | ||||
Accounts receivable, net | $ | 48,194 | ||
Unbilled accounts receivable | 16,463 | |||
Inventories, net | 31,863 | |||
Other current assets | 3,301 | |||
Total current assets held for sale | $ | 99,821 | ||
Property, plant and equipment, net | 109,506 | |||
Intangible assets, net | 1,245 | |||
Other non-current assets | 12,683 | |||
Total assets held for sale | $ | 223,255 | ||
Liabilities | ||||
Current liabilities | ||||
Accounts payable | $ | 20,503 | ||
Other current liabilities | 16,537 | |||
Total current liabilities held for sale | $ | 37,040 | ||
Accrued severance benefits, net | 95,547 | |||
Other non-current liabilities | 15,334 | |||
Total liabilities held for sale | $ | 147,921 | ||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(In thousands of U.S. dollars) | ||||||||||||
Significant non-cash operating activities: | ||||||||||||
Depreciation and amortization | $ | 5,365 | $ | 22,411 | $ | 23,220 | ||||||
Provision for severance benefits | 8,209 | 10,879 | 10,230 | |||||||||
Stock-based compensation | 388 | 899 | 627 | |||||||||
Investing activities: | ||||||||||||
Capital expenditures | $ | (5,838 | ) | $ | (11,653 | ) | $ | (14,170 | ) |
Cash Severance Payment ($)(1) | Value of Equity Award Acceleration ($) | Continuation of Benefits and Perquisites ($)(2) | Total ($) | |||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason | 1,239,792 | 346,112 | (4) | 304,581 | (7) | 1,890,485 | ||||||||||
Termination By the Company Without Cause / By Executive for Good Reason, In Connection With a Change in Control | 1,364,792 | (3) | 639,117 | (5) | 330,230 | (8) | 2,334,139 | |||||||||
Termination By the Company for Cause / By Executive without Good Reason | — | — | — | — | ||||||||||||
Change in Control (without termination of employment) | — | 639,117 | (6) | — | 639,117 |
Carrying Value December 31, 2020 | Fair Value Measurement December 31, 2020 | Quoted Prices in Active Markets for Identical Asset / Liability (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Assets: | ||||||||||||||||||||
Derivative assets (other current assets) | $ | 2,036 | $ | 2,036 | — | $ | 2,036 | — | ||||||||||||
Liabilities: | ||||||||||||||||||||
Derivative liabilities (other current liabilities) | $ | 195 | $ | 195 | — | $ | 195 | — |
(1) | Represents cash severance payments payable pursuant to the CEO Agreement (including a pro rata bonus based on actual performance). See “Potential Payments Upon Termination or Change in Control” for additional information. |
Carrying Value December 31, 2019 | Fair Value Measurement December 31, 2019 | Quoted Prices in Active Markets for Identical Asset (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Assets: | ||||||||||||||||||||
Derivative assets (other current assets) | $ | 1,456 | $ | 1,456 | — | $ | 1,456 | — |
December 31, 2020 | December 31, 2019 | |||||||||||||||
Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||
(In thousands of U.S. dollars) | ||||||||||||||||
Borrowings: | ||||||||||||||||
5.0% Exchangeable Senior Notes due March 2021 (Level 2) | $ | 83,479 | $ | 145,466 | $ | 81,959 | $ | 116,078 | ||||||||
6.625% Senior Notes due July 2021 (Level 2) | $ | — | $ | — | $ | 222,784 | $ | 224,250 |
(2) | Represents continuation of benefits and perquisites pursuant to the CEO Agreement and our expatriate benefit policy. See “Potential Payments Upon Termination or Change in Control” and “—Compensation Discussion and Analysis—Perquisites and Other Benefits” for additional information. Calculated assuming benefits for the applicable period will have the same dollar value as corresponding 2020 benefits. |
December 31, | ||||||||
2020 | 2019 | |||||||
Accounts receivable | $ | 63,145 | $ | 44,176 | ||||
Notes receivable | 1,606 | 3,707 | ||||||
Less: | ||||||||
Allowance for credit losses | (188 | ) | (49 | ) | ||||
Sales return reserves | (173 | ) | (387 | ) | ||||
Accounts receivable, net | $ | 64,390 | $ | 47,447 | ||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Beginning balance | $ | (49 | ) | $ | (51 | ) | $ | (53 | ) | |||
Provision | (131 | ) | — | — | ||||||||
Translation adjustments | (8 | ) | 2 | 2 | ||||||||
Ending balance | $ | (188 | ) | $ | (49 | ) | $ | (51 | ) | |||
(3) | Mr. YJ Kim would also receive such benefits upon a termination as a result of his death or disability that occurs in connection with a change in control. |
(4) | Represents the value of Mr. YJ Kim’s 2019 and 2020 TSR PSUs that remain eligible to vest. More specifically, he would remain eligible to vest in 2/3 of his 2019 TSR PSUs and 1/3 of his 2020 TSR PSUs based on actual performance. This column assumes vesting at target performance level. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(5) | Represents the value of immediate vesting of all time-vesting restricted stock units granted after January 1, 2018. Mr. YJ Kim would also vest in the TSR PSUs that remained eligible to vest determined based on actual performance at the time of the change of control. This column assumes vesting at target performance level. See “Potential Payments Upon Termination or Change in Control” for additional information. Mr. YJ Kim would also receive accelerated vesting of his time-based RSUs upon his death or disability that occurs in connection with a change in control. |
(6) | Assumes that the Committee exercised its discretion to fully accelerate all equity awards in connection with the transaction under the 2011 Plan and the 2020 Plan. Represents the value of immediate vesting of all unvested RSUs and PSUs (assuming the PSUs vest at target performance level). |
(7) | Includes the following continuation of benefits and perquisites for Mr. YJ Kim: (a) $34,272, which is housing expenses for Mr. YJ Kim’s housing lease; (b) $6,497 for reimbursement of tuition expenses for Mr. YJ Kim’s children; (c) $68,398 for health insurance premiums; (d) $46,450 for repatriation allowance; (e) $28,005 for repatriation expense; (f) $12,637 for living expense, tax consulting fee and car service provided by the Company; (g) $31,575 of reimbursement for the difference between the actual tax and the hypothetical tax he will pay for the applicable fiscal year; and (h) $76,747 for estimated reimbursement of Korean tax. |
(8) | Same as the total amount of Note (7) except $25,649 representing the employer cost of insurance premiums for an additional 6 months of insurance coverage. Mr. YJ Kim would also receive such benefits upon a termination as a result of his death or disability that occurs in connection with a change in control. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Beginning balance | $ | (387 | ) | $ | (439 | ) | $ | (628 | ) | |||
Reversal (provision) | 22 | (136 | ) | (245 | ) | |||||||
Usage | 196 | 170 | 414 | |||||||||
Translation adjustments | (4 | ) | 18 | 20 | ||||||||
Ending balance | $ | (173 | ) | $ | (387 | ) | $ | (439 | ) | |||
December 31, | ||||||||
2020 | 2019 | |||||||
Finished goods | $ | 6,425 | $ | 10,087 | ||||
Semi-finished goods and work-in-process | 30,968 | 28,815 | ||||||
Raw materials | 6,526 | 8,449 | ||||||
Materials in-transit | 1,021 | — | ||||||
Less: inventory reserve | (5,901 | ) | (5,947 | ) | ||||
Inventories, net | $ | 39,039 | $ | 41,404 | ||||
Cash Severance Payment ($)(1) | Value of Equity Award Acceleration ($) | Continuation of Benefits and Perquisites ($)(2) | Total ($) | |||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason | 404,250 | 87,880 | (3) | 195,352 | (6) | 687,483 | ||||||||||
Termination By the Company Without Cause / By Executive for Good Reason, In Connection With a Change in Control | 660,000 | 464,196 | (4) | 195,352 | (6) | 1,319,549 | ||||||||||
Termination By the Company for Cause / By Executive without Good Reason / Disability / Death | — | — | — | — | ||||||||||||
Change in Control (without termination of employment) | — | 464,196 | (5) | — | 464,196 |
(1) | Represents cash severance payments payable pursuant to the applicable Other Executive Agreement. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(2) | Represents continuation of benefits and perquisites pursuant to the applicable Other Executive Agreements and our expatriate benefit policy. See “Potential Payments Upon Termination or Change in Control” and “Compensation Discussion and Analysis—Perquisites and Other Benefits” for additional information. Calculated assuming benefits for the applicable period will have the same dollar value as corresponding 2020 benefits. |
(3) | Represents the value of Mr. T. Kim’s 2019 and 2020 TSR PSUs that remain eligible to vest. More specifically, he would remain eligible to vest in 2/3 of his 2019 TSR PSUs and 1/3 of his 2020 TSR PSUs based on actual performance. This column assumes vesting at target performance level. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(4) | Represents the value of immediate vesting of all time-vesting restricted stock units granted after January 1, 2018. Mr. T. Kim would also vest in the TSR PSUs that remained eligible to vest determined based on actual performance at the time of the change of control. This column assumes vesting at target performance level. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(5) | Assumes that the Committee exercised its discretion to fully accelerate all equity awards in connection with the transaction under the 2011 Plan and the 2020 Plan. Represents the value of immediate vesting of unvested RSUs and PSUs (assuming the PSUs vest at target performance level). |
(6) | Includes the following continuation of benefits and perquisites for Mr. T. Kim: (a) $10,673 for housing expenses for Mr. T. Kim’s housing lease; (b) $8,988 for Mr. T. Kim’s home leave flights; (c) $48,292 for health insurance premiums; (d) $27,500 for repatriation allowance; (e) $50,000 for repatriation expense; (f) $6,279 for other personal benefits (including personal use of a car service provided by the Company, living expenses and tax consulting fee); (g) $7,170 of estimated reimbursement for the difference between the actual tax and the hypothetical tax he will pay for the applicable fiscal year; and (h) $36,450 for estimated reimbursement of Korean tax. |
Year | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Beginning balance | $ | (5,947 | ) | $ | (4,845 | ) | $ | (6,094 | ) | |||
Change in reserve | ||||||||||||
Inventory reserve charged to costs of sales | (7,268 | ) | (12,941 | ) | (6,721 | ) | ||||||
Sale of previously reserved inventory | 4,349 | 2,938 | 3,709 | |||||||||
(2,919 | ) | (10,003 | ) | (3,012 | ) | |||||||
Write off | 2,679 | 8,451 | 4,065 | |||||||||
Translation adjustments | (408 | ) | 450 | 196 | ||||||||
Reclassified to assets held for sale | 694 | — | — | |||||||||
Ending balance | $ | (5,901 | ) | $ | (5,947 | ) | $ | (4,845 | ) | |||
Cash Severance Payment ($)(1) | Value of Equity Award Acceleration ($) | Continuation of Benefits and Perquisites ($) | Total ($) | |||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason | 354,440 | 87,204 | (2) | — | 441,644 | |||||||||||
Termination By the Company Without Cause / By Executive for Good Reason, In Connection With a Change in Control | 445,369 | 350,858 | (3) | — | 796,227 | |||||||||||
Termination By the Company for Cause / By Executive without Good Reason / Disability / Death | — | — | — | — | ||||||||||||
Change in Control (without termination of employment) | — | 350,858 | (4) | — | 350,858 |
December 31, | ||||||||
2020 | 2019 | |||||||
Buildings and related structures | $ | 24,882 | $ | 22,502 | ||||
Machinery and equipment | 106,244 | 89,453 | ||||||
Finance lease right-of-use | 344 | 323 | ||||||
Others | 40,116 | 22,242 | ||||||
171,586 | 134,520 | |||||||
Less: accumulated depreciation | (90,370 | ) | (75,704 | ) | ||||
Land | 15,167 | 14,252 | ||||||
Property, plant and equipment, net | $ | 96,383 | $ | 73,068 | ||||
(1) | Represents cash severance payments payable pursuant to the applicable Other Executive Agreement. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(2) | Represents the value of Mr. WM Lee’s 2019 and 2020 TSR PSUs that remain eligible to vest. More specifically, he would remain eligible to vest in 2/3 of his 2019 TSR PSUs and 1/3 of his 2020 TSR PSUs based on actual performance. This column assumes vesting at target performance level. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(3) | Represents the value of immediate vesting of all outstanding stock options and RSUs granted prior to January 1, 2018 and immediate vesting of all time-vesting restricted stock units granted after January 1, 2018. Mr. WM Lee would also vest in the TSR PSUs that remained eligible to vest determined based on actual performance at the time of the change of control. This column assumes vesting at target performance level. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(4) | Assumes that the Committee exercised its discretion to fully accelerate all equity awards in connection with the transaction under the 2011 Plan and the 2020 Plan. Represents the value of immediate vesting of all outstanding stock options, RSUs and PSUs (assuming the PSUs vest at target performance level). |
Cash Severance Payment ($)(1) | Value of Equity Award Acceleration ($) | Continuation of Benefits and Perquisites ($) | Total ($) | |||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason | 172,339 | — | — | 172,339 | ||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason, In Connection With a Change in Control | 288,436 | 243,360 | (2) | — | 531,796 | |||||||||||
Termination By the Company for Cause / By Executive without Good Reason / Disability / Death | — | — | — | — | ||||||||||||
Change in Control (without termination of employment) | — | 243,360 | (3) | — | 243,360 |
(1) | Represents cash severance payments payable pursuant to the Executive Service Agreement. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(2) | Represents the value of immediate vesting of all time-vesting restricted stock units granted after January 1, 2018. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(3) | Assumes that the Committee exercised its discretion to fully accelerate all equity awards in connection with the transaction under the 2011 Plan and the 2020 Plan. Represents the value of immediate vesting of all outstanding stock options, RSUs and PSUs (assuming the PSUs vest at target performance level). |
December 31, 2020 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Intellectual property assets | $ | 9,486 | $ | (6,759 | ) | $ | 2,727 | |||||
Intangible assets, net | $ | 9,486 | $ | (6,759 | ) | $ | 2,727 | |||||
Cash Severance Payment ($)(1) | Value of Equity Award Acceleration ($) | Continuation of Benefits and Perquisites ($) | Total ($) | |||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason | 193,943 | — | — | 193,943 | ||||||||||||
Termination By the Company Without Cause / By Executive for Good Reason, In Connection With a Change in Control | 330,000 | 202,800 | (2) | — | 532,800 | |||||||||||
Termination By the Company for Cause / By Executive without Good Reason / Disability / Death | — | — | — | — | ||||||||||||
Change in Control (without termination of employment) | — | 202,800 | (3) | — | 202,800 |
December 31, 2019 | ||||||||||||
Gross amount | Accumulated amortization | Net amount | ||||||||||
Technology | $ | 6,575 | $ | (6,575 | ) | $ | — | |||||
Customer relationships | 10,180 | (10,180 | ) | — | ||||||||
Intellectual property assets | 8,637 | (5,868 | ) | 2,769 | ||||||||
Intangible assets, net | $ | 25,392 | $ | (22,623 | ) | $ | 2,769 | |||||
(1) | Represents cash severance payments payable pursuant to the Executive Service Agreement. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(2) | Represents the value of immediate vesting of all time-vesting restricted stock units granted after January 1, 2018. See “Potential Payments Upon Termination or Change in Control” for additional information. |
(3) | Assumes that the Committee exercised its discretion to fully accelerate all equity awards in connection with the transaction under the 2011 Plan and the 2020 Plan. Represents the value of immediate vesting of all outstanding stock options, RSUs and PSUs (assuming the PSUs vest at target performance level). |
December 31, | ||||||||||
Leases | Classification | 2020 | 2019 | |||||||
Assets | ||||||||||
Operating lease | Operating lease right-of-use assets | $ | 4,632 | $ | 1,876 | |||||
Finance lease | Property, plant and equipment, net | 206 | 258 | |||||||
Total lease assets | $ | 4,838 | $ | 2,134 | ||||||
Liabilities | ||||||||||
Current | ||||||||||
Operating | Operating lease liabilities | $ | 2,210 | $ | 1,625 | |||||
Finance | Other current liabilities | 68 | 60 | |||||||
Non-current | ||||||||||
Operating | Non-current operating lease liabilities | 2,422 | 251 | |||||||
Finance | Other non-current liabilities | 153 | 208 | |||||||
Total lease liabilities | $ | 4,853 | $ | 2,144 | ||||||
December 31, | ||||||||
2020 | 2019 | |||||||
Weighted average remaining lease term | ||||||||
Operating leases | 3.0 years | 1.1 years | ||||||
Finance leases | 3.0 years | 4.0 years | ||||||
Weighted average discount rate | ||||||||
Operating leases | 5.55 | % | 7.19 | % | ||||
Finance leases | 7.75 | % | 7.75 | % |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Operating lease cost | $ | 1,885 | $ | 1,990 | ||||
Finance lease cost | ||||||||
Amortization of right-of-use | 63 | 64 | ||||||
Interest on lease liabilities | 18 | 22 | ||||||
Total lease cost | $ | 1,966 | $ | 2,076 | ||||
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Cash paid for amounts included in the measurement of lease liabilities | ||||||||
Operating cash flows from operating leases | $ | 1,885 | $ | 1,990 | ||||
Operating cash flows from finance leases | 18 | 22 | ||||||
Financing cash flows from finance leases | 76 | 55 |
Operating Leases | Finance Leases | |||||||
2021 | $ | 2,424 | $ | 83 | ||||
2022 | 999 | 83 | ||||||
2023 | 623 | 83 | ||||||
2024 | 561 | 0 | ||||||
2025 | 423 | 0 | ||||||
Total future lease payments | 5,030 | 249 | ||||||
Less: Imputed interest | (398 | ) | (28 | ) | ||||
Present value of future payments | $ | 4,632 | $ | 221 | ||||
December 31, | ||||||||
2020 | 2019 | |||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 10,296 | $ | 8,493 | ||||
Withholding tax attributable to intercompany interest income | 28 | 23,371 | ||||||
Interest on senior notes | 1,396 | 8,205 | ||||||
Outside service fees | 755 | 898 | ||||||
Restructuring and others | 2,658 | 2,018 | ||||||
Others | 1,108 | 1,814 | ||||||
Accrued expenses | $ | 16,241 | $ | 44,799 | ||||
Date of transaction | Type of derivative | Total notional amount | Month of settlement | |||||
July 13, 2020 | Zero cost collar | $ | 30,000 | January 2021 to June 2021 | ||||
December 15, 2020 | Zero cost collar | $ | 30,000 | July 2021 to December 2021 | ||||
December 18, 2020 | Zero cost collar | $ | 18,000 | March 2021 to June 2021 |
Date of transaction | Type of derivative | Total notional amount | Month of settlement | |||||
August 13, 2019 | Zero cost collar | $ | 60,000 | January 2020 to June 2020 | ||||
September 27, 2019 | Zero cost collar | $ | 42,000 | January 2020 to June 2020 | ||||
December 4, 2019 | Zero cost collar | $ | 30,000 | July 2020 to December 2020 |
Name | Fees Earned or Paid in Cash ($)(1) | Stock Awards ($)(2)(3) | All Other Compensation ($)(1) | Total ($) | ||||||||||||
Camillo Martino | 132,500 | 195,000 | — | 327,500 | ||||||||||||
Gary Tanner | 120,000 | 205,000 | — | 325,000 | ||||||||||||
Ilbok Lee | 90,000 | 195,000 | — | 285,000 | ||||||||||||
Liz Chung | 34,443 | 149,178 | — | 183,621 | ||||||||||||
Melvin Keating | 105,000 | 195,000 | — | 300,000 | ||||||||||||
Nader Tavakoli(4) | 142,500 | 195,000 | — | 337,500 |
Derivatives designated as hedging instruments: | December 31, | |||||||||||
2020 | 2019 | |||||||||||
Asset Derivatives: | ||||||||||||
Zero cost collars | Other current assets | $ | 2,036 | $ | 1,456 | |||||||
Liability Derivatives: | ||||||||||||
Zero cost collars | Other current liabilities | $ | 195 | $ | — |
(1) | Consists of the amount of cash compensation earned in 2020 for Board service, committee service and advisory visit fees as described in the table below. |
As of December 31, 2020 | Gross amounts of recognized assets/liabilities | Gross amounts offset in the balance sheets | Net amounts of assets/liabilities presented in the balance sheets | Gross amounts not offset in the balance sheets | Net amount | |||||||||||||||||||
Financial instruments | Cash collateral pledged | |||||||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 2,036 | $ | — | $ | 2,036 | $ | — | $ | — | $ | 2,036 | ||||||||||||
Liability Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 195 | $ | — | $ | 195 | $ | — | $ | — | $ | 195 |
Name | Board Retainer ($) | Chair Service Fees ($) | Committee Service Fees ($) | Advisory Visit Fees ($) | Total ($) | |||||||||||||||
Camillo Martino | 75,000 | 52,500 | 5,000 | — | 132,500 | |||||||||||||||
Gary Tanner | 75,000 | 10,000 | 25,000 | 10,000 | 120,000 | |||||||||||||||
Ilbok Lee | 75,000 | 10,000 | 5,000 | — | 90,000 | |||||||||||||||
Liz Chung | 34,443 | — | — | — | 34,443 | |||||||||||||||
Melvin Keating | 75,000 | 25,000 | 5,000 | — | 105,000 | |||||||||||||||
Nader Tavakoli | 75,000 | 37,500 | 30,000 | — | 142,500 |
As of December 31, 2019 | Gross amounts of recognized assets | Gross amounts offset in the balance sheets | Net amounts of assets presented in the balance sheets | Gross amounts not offset in the balance sheets | Net amount | |||||||||||||||||||
Financial instruments | Cash collateral pledged | |||||||||||||||||||||||
Asset Derivatives: | ||||||||||||||||||||||||
Zero cost collars | $ | 1,456 | $ | — | $ | 1,456 | $ | — | $ | 1,070 | $ | 2,526 |
(2) | Represents the aggregate grant date fair value of RSU awards granted in 2020. |
(3) | As of December 31, 2020, the number of shares of our common stock underlying outstanding stock options and RSU awards held by our non-employee directors who served during 2020 were as follows: |
Name | RSUs (#) | Stock Options (#) | ||||||
Camillo Martino | 69,309 | 49,737 | ||||||
Gary Tanner | 78,254 | 93,117 | ||||||
Ilbok Lee | 75,623 | 204,593 | ||||||
Liz Chung | 14,154 | — | ||||||
Melvin Keating | 69,309 | 49,737 | ||||||
Nader Tavakoli | 76,533 | 199,593 |
Derivatives in ASC 815 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in AOCI on Derivatives | Location/Amount of Gain (Loss) Reclassified from AOCI Into Statement of Operations | Location/Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives | |||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||
Zero cost collars | $ | 1,769 | $ | (1,096 | ) | Net sales | $ | 1,363 | $ | (2,738 | ) | Other income (expense), net | $ | 148 | $ | (193 | ) | |||||||||||||||
Forwards | $ | — | $ | (1,798 | ) | Net sales | $ | — | $ | (1,750 | ) | Other income (expense), net | $ | — | $ | (125 | ) | |||||||||||||||
$ | 1,769 | $ | (2,894 | ) | $ | 1,363 | $ | (4,488 | ) | $ | 148 | $ | (318 | ) | ||||||||||||||||||
December 31, | ||||||||
Counterparties | 2020 | 2019 | ||||||
NFIK | $ | 3,250 | $ | 7,750 | ||||
DB | 1,000 | 1,000 | ||||||
SC | 1,000 | — | ||||||
Total | $ | 5,250 | $ | 8,750 | ||||
(4) | The Company received a letter of resignation, dated April 19, 2021, from Mr. Nader Tavakoli, which resignation was accepted by the board and effective as of April 22, 2021. In connection with his resignation, 18,501 of Mr. Tavakoli’s unvested RSUs were deemed fully vested on April 22, 2021. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Beginning balance | $ | 735 | $ | 115 | $ | 51 | ||||||
Provision (reversal) | (606 | ) | 932 | 220 | ||||||||
Usage | (61 | ) | (314 | ) | (154 | ) | ||||||
Translation adjustments | (20 | ) | 2 | (2 | ) | |||||||
Ending balance | $ | 48 | $ | 735 | $ | 115 | ||||||
December 31, | ||||||||
2020 | 2019 | |||||||
5.0% Exchangeable Senior Notes due March 2021 | $ | 83,740 | $ | 83,740 | ||||
6.625% Senior Notes due July 2021 | — | 224,250 | ||||||
Less: unamortized discount and debt issuance costs | (261 | ) | (3,247 | ) | ||||
Total borrowings, net | 83,479 | 304,743 | ||||||
Less: current portion of long-term borrowings, net | 83,479 | — | ||||||
Long-term borrowings, net | $ | — | $ | 304,743 | ||||
Plan Category | (a) Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants or Rights | (b) Weighted- Average Exercise Price of Outstanding Options, Warrants or Rights | (c) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (A)) | |||||||||
Equity compensation plans approved by security holders | 2,872,157 | (1) | $ | 11.24 | (1) | 2,441,666 | (2) | |||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total: | 2,872,157 | — | 2,441,666 |
(1) | Comprised of (a) stock options to purchase 1,647,188 shares of common stock under the 2011 Plan, at a weighted average exercise price of $11.24 per share, and (c) 1,224,969 shares of common stock subject to restricted stock units and performance restricted awards under the 2011 Plan and 2020 Plan, which are calculated at maximum performance levels. There are no outstanding securities under the suspended Purchase Plan. |
(2) | Excludes 1,163,880 shares of common stock that remain available as of December 31, 2020, for future issuance under the suspended Purchase Plan. |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Beginning balance | $ | 53,344 | $ | 55,691 | ||||
Provisions | 8,534 | 6,260 | ||||||
Severance payments | (10,937 | ) | (6,733 | ) | ||||
Translation adjustments | 3,511 | (1,874 | ) | |||||
54,452 | 53,344 | |||||||
Less: Cumulative contributions to severance insurance deposit accounts | (13,704 | ) | (1,856 | ) | ||||
The National Pension Fund | (66 | ) | (80 | ) | ||||
Group severance insurance plan | (220 | ) | (227 | ) | ||||
Accrued severance benefits, net | $ | 40,462 | $ | 51,181 | ||||
Severance Benefit | ||||
2021 | $ | 218 | ||
2022 | 271 | |||
2023 | 663 | |||
2024 | 947 | |||
2025 | 2,245 | |||
2026 – 2030 | 19,292 |
Number of Restricted Stock Units | Weighted Average Grant-Date Fair Value of Restricted Stock Units | |||||||
Outstanding at January 1, 2018 | 340,753 | $ | 8.80 | |||||
Granted | 739,231 | 9.64 | ||||||
Vested | (373,620 | ) | 9.24 | |||||
Unsettled | 45,311 | 9.22 | ||||||
Forfeited | (33,462 | ) | 10.31 | |||||
Outstanding at December 31, 2018 | 718,213 | $ | 9.39 | |||||
Granted | 711,719 | 11.85 | ||||||
Vested | (528,740 | ) | 11.00 | |||||
Unsettled | 226,215 | 12.16 | ||||||
Settled of previous year vesting | (42,189 | ) | 9.22 | |||||
Forfeited | (41,915 | ) | 10.00 | |||||
Outstanding at December 31, 2019 | 1,043,303 | $ | 10.83 | |||||
Granted | 642,372 | 11.11 | ||||||
Vested | (354,657 | ) | 10.82 | |||||
Settled of previous year vesting | (226,558 | ) | 12.16 | |||||
Forfeited | (104,704 | ) | 11.16 | |||||
Outstanding at December 31, 2020 | 999,756 | $ | 10.68 | |||||
Number of Options | Weighted Average Exercise Price of Stock Options | Aggregate Intrinsic Value of Stock Options | Weighted Average Remaining Contractual Life of Stock Options | |||||||||||||
Outstanding at January 1, 2018 | 2,871,904 | $ | 9.59 | $ | 6,073 | 6.2 years | ||||||||||
Forfeited | (34,807 | ) | 10.97 | — | — | |||||||||||
Exercised | (162,341 | ) | 6.97 | 737 | — | |||||||||||
Outstanding at December 31, 2018 | 2,674,756 | $ | 9.73 | $ | 395 | 5.2 years | ||||||||||
Vested and expected to vest at December 31, 2018 | 2,674,266 | 9.73 | 394 | 5.2 years | ||||||||||||
Exercisable at December 31, 2018 | 2,544,565 | 9.94 | 306 | 5.1 years | ||||||||||||
Outstanding at January 1, 2019 | 2,674,756 | $ | 9.73 | $ | 395 | 5.2 years | ||||||||||
Forfeited | (44,892 | ) | 10.29 | — | — | |||||||||||
Exercised | (452,819 | ) | 6.31 | 2,404 | — | |||||||||||
Outstanding at December 31, 2019 | 2,177,045 | $ | 10.42 | $ | 6,259 | 4.7 years | ||||||||||
Vested and Exercisable at December 31, 2019 | 2,177,045 | $ | 10.42 | $ | 6,259 | 4.7 years | ||||||||||
Outstanding at January 1, 2020 | 2,177,045 | $ | 10.42 | $ | 6,259 | 4.7 years | ||||||||||
Forfeited | (19,216 | ) | 13.57 | — | — | |||||||||||
Exercised | (510,648 | ) | 7.67 | 2,689 | — | |||||||||||
Outstanding at December 31, 2020 | 1,647,181 | $ | 11.24 | $ | 6,112 | 3.8 years | ||||||||||
Vested and Exercisable at December 31, 2020 | 1,647,181 | $ | 11.24 | $ | 6,112 | 3.8 years | ||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||
Number | Weighted Average Grant- Date Fair Value | Number | Weighted Average Grant- Date Fair Value | Number | Weighted Average Grant- Date Fair Value | |||||||||||||||||||
Unvested options at the beginning of the period | — | $ | — | 130,191 | $ | 1.54 | 475,925 | $ | 2.19 | |||||||||||||||
Vested options during the period | — | — | (107,100 | ) | 1.54 | (313,160 | ) | 2.51 | ||||||||||||||||
Forfeited options during the period | — | — | (345 | ) | 1.54 | (14,738 | ) | 1.73 | ||||||||||||||||
Exercised options during the period | — | — | (22,746 | ) | 1.54 | (17,836 | ) | 1.66 | ||||||||||||||||
Unvested options at the end of the period | — | — | 0 | $ | — | 130,191 | $ | 1.54 | ||||||||||||||||
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership (1) | Percent of Class (1) | ||||||
Principal Stockholders | ||||||||
Oaktree Value Opportunities Fund Holdings, L.P. (2) | 3,214,537 | 6.9 | % | |||||
Brigade Capital Management, LP (3) | 3,028,318 | 6.2 | % | |||||
Federated Hermes, Inc. (4) | 2,959,604 | 6.4 | % | |||||
Rubric Capital Management LP (5) | 2,612,588 | 5.6 | % | |||||
Morgan Stanley (6) | 2,587,317 | 5.6 | % | |||||
Directors and Named Executive Officers | ||||||||
Kyo-Hwa (Liz) Chung | — | * | ||||||
Melvin Keating (7) | 110,645 | * | ||||||
Ilbok Lee (8) | 282,421 | * | ||||||
Camillo Martino (9) | 128,545 | * | ||||||
Gary Tanner (10) | 157,329 | * | ||||||
Young-Joon Kim (11) | 582,543 | 1.2 | % | |||||
Young Soo Woo (12) | 6,000 | * | ||||||
Theodore Kim (13) | 228,875 | * | ||||||
Woung Moo Lee (14) | 206,556 | * | ||||||
Chan Ho Park (15) | 5,000 | * | ||||||
Jonathan Kim (16) | — | * | ||||||
Directors and current Executive Officers as a group (10 persons) (17) | 1,707,914 | 3.6 | % |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Income (loss) from continuing operations before income tax expense | ||||||||||||
Domestic | $ | (12,305 | ) | $ | (24,752 | ) | $ | 3,006 | ||||
Foreign | 23,136 | 6,539 | (29,862 | ) | ||||||||
$ | 10,831 | $ | (18,213 | ) | $ | (26,856 | ) | |||||
Current income tax expense (benefit) | ||||||||||||
Domestic | $ | 1 | $ | 20 | $ | (383 | ) | |||||
Foreign | (2,264 | ) | 3,771 | 3,959 | ||||||||
Uncertain tax position liability (domestic) | — | (1 | ) | (2 | ) | |||||||
Uncertain tax position liability (foreign) | (20 | ) | 2 | (54 | ) | |||||||
(2,283 | ) | 3,792 | 3,520 | |||||||||
Deferred income tax benefit | ||||||||||||
Domestic | (4,461 | ) | — | — | ||||||||
Foreign | (39,484 | ) | 63 | 32 | ||||||||
(43,945 | ) | 63 | 32 | |||||||||
Benefits from intra-period allocation | — | (1,655 | ) | (4,631 | ) | |||||||
Total income tax expense (benefit) | $ | (46,228 | ) | $ | 2,200 | $ | (1,079 | ) | ||||
Effective tax rate | — | — | 4.0 | % | ||||||||
* | Less than one percent |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Provision computed at statutory rates | $ | 2,274 | $ | (3,825 | ) | $ | (5,640 | ) | ||||
State income taxes, net of federal effect | 730 | (1,139 | ) | (1,651 | ) | |||||||
Change in statutory tax rates | 5,735 | 2,329 | 1 | |||||||||
Difference in foreign tax rates | 1,077 | 3,002 | 737 | |||||||||
Permanent differences | ||||||||||||
Derivative assets adjustment | 56 | 315 | (1,111 | ) | ||||||||
TPECs, hybrid and other interest | (2,722 | ) | 7,812 | (5,555 | ) | |||||||
Thin capitalization | 339 | 988 | 1,262 | |||||||||
Permanent foreign currency loss | (1,813 | ) | (1,734 | ) | (2,490 | ) | ||||||
Penalty | 176 | 151 | 434 | |||||||||
GILTI | 24,224 | 5,112 | — | |||||||||
Intercompany debt restructuring | 11,137 | (18,435 | ) | — | ||||||||
Other permanent differences | 1,262 | 394 | 417 | |||||||||
Withholding tax | 2,291 | 3,043 | 3,270 | |||||||||
Change in valuation allowance | (75,452 | ) | 7,817 | 14,647 | ||||||||
Benefits from intra-period allocation | — | (1,655 | ) | (4,631 | ) | |||||||
Tax credits claimed | (12,397 | ) | (651 | ) | (421 | ) | ||||||
Tax credits expired | — | 170 | 267 | |||||||||
Uncertain tax positions liability | (20 | ) | 1 | (56 | ) | |||||||
Change in net operating loss carry-forwards | (3,314 | ) | — | — | ||||||||
Others | 189 | (1,495 | ) | (559 | ) | |||||||
Income tax expense (benefit) | $ | (46,228 | ) | $ | 2,200 | $ | (1,079 | ) | ||||
(1) | Includes any outstanding Company Common Stock held and, to the extent applicable, shares issuable upon the exercise or conversion of any securities that are exercisable or convertible within 60 days of April 26, 2021. |
(2) | Based on information contained in an Amendment No. 4 to Schedule 13G filed with the SEC on February 16, 2021 by each of the following entities (each an “Oaktree Entity”): Oaktree Value Opportunities Fund Holdings, L.P., a Delaware limited partnership (“VOF Holdings”), in its capacity as the direct owner of 3,214,537 shares of Company Common Stock; Oaktree Value Opportunities Fund GP, L.P., a Cayman Islands limited partnership (“VOF GP”), in its capacity as the general partner of VOF Holdings; Oaktree Value Opportunities Fund GP Ltd., a Cayman Islands exempted company (“VOF GP Ltd.”), in its capacity as the general partner of VOF GP; Oaktree Fund GP I, L.P., a Delaware limited partnership (“GP I”), in its capacity as the sole shareholder of VOF GP Ltd.; Oaktree Capital I, L.P., a Delaware limited partnership (“Capital I”), in its capacity as the general partner of GP I; OCM Holdings I, LLC, a Delaware limited liability company (“Holdings I”), in its capacity as the general partner of Capital I; Oaktree Holdings, LLC, a Delaware limited liability company (“Holdings”) in its capacity as the managing member of Holdings I; Oaktree Capital Management, L.P., a Delaware limited partnership (“Management”), in its capacity as the sole director of VOF GP Ltd.; Oaktree Capital Management GP, LLC, a Delaware limited liability company (“Management GP”), in its capacity as the general partner of Management; Atlas OCM Holdings LLC, a Delaware limited liability company (“Atlas”), in its capacity as the sole managing member of Management GP; Oaktree Capital Group, LLC, a Delaware limited liability company (“OCG”), in its capacity as the managing member of Holdings and as the sole shareholder of Holdings, Inc.; Oaktree Capital Group Holdings GP, LLC, a Delaware limited liability company (“OCGH GP”), in its capacity as the indirect owner of the class B units of each of OCG and Atlas; Brookfield Asset Management Inc., a Canadian corporation (“BAM”), in its capacity as the indirect owner of the class A units of each of OCG and Atlas; and Partners Limited, a Canadian corporation (“Partners”), in its capacity as the sole owner of the Class B Limited Voting Shares of BAM. |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Deferred tax assets | ||||||||
Inventory reserves | $ | 1,338 | $ | 4,869 | ||||
Accrued expenses | 2,493 | 3,388 | ||||||
Property, plant and equipment | 3,391 | 7,979 | ||||||
Accumulated severance benefits | 12,343 | 36,841 | ||||||
Operating lease right-of-use liabilities | 1,025 | 2,741 | ||||||
Foreign currency translation loss | 9,129 | 20,544 | ||||||
NOL carry-forwards | 121,389 | 150,954 | ||||||
Tax credit carry-forwards | 15,395 | 17,054 | ||||||
Other long-term payable | 944 | 3,023 | ||||||
Interest expense deduction limitation | — | 5,244 | ||||||
Others | 1,629 | 4,734 | ||||||
Total deferred tax assets | 169,076 | 257,371 | ||||||
Less: Valuation allowance | (115,636 | ) | (246,224 | ) | ||||
53,440 | 11,147 | |||||||
Deferred tax liabilities | ||||||||
Derivative assets | 417 | 352 | ||||||
Prepaid expense | 1,071 | 3,090 | ||||||
Severance benefit deposits | 3,156 | 1,294 | ||||||
Operating lease right-of-use assets | 1,025 | 2,741 | ||||||
Foreign currency translation gain | 2,431 | — | ||||||
Others | 799 | 3,516 | ||||||
Total deferred tax liabilities | 8,899 | 10,993 | ||||||
Net deferred tax assets | $ | 44,541 | $ | 154 | ||||
(3) | Based on the information contained in an Amendment No. 6 to Schedule 13G filed with the SEC on January 6, 2021 by Brigade Capital Management, LP (“Brigade Capital”), Brigade Capital Management GP, LLC (“Bridge Capital Management”), Brigade Leveraged Capital Structures Fund Ltd. (“Brigade Fund”) and Donald E. Morgan, III. Each of Brigade Capital, Brigade Capital Management, Brigade Fund and Mr. Morgan may be deemed to beneficially own the shares of Company Common Stock listed in the table above and has shared power to vote or to direct the vote and shared power to dispose or to direct the disposition of such shares (except that Brigade Fund beneficially owns, and shares power to vote or to direct the vote and shares power to dispose or to direct the disposition of, 2,005,765 of such shares). The shares of Company Common Stock listed in the table above include 5.00% Exchangeable Senior Notes due 2021 issued by Magnachip Semiconductor S.A. (the “Exchangeable Senior Notes”) that are exchangeable at the option of the holder into 2,280,921 shares of Company Common Stock (except that for Brigade Fund, the shares of common stock listed in the table above include Exchangeable Senior Notes that are exchangeable at the option of the holder into 1,328,892 shares of Company Common Stock). The Exchangeable Senior Notes are subject to a blocker provision that precludes Brigade Capital and its affiliates from converting the Exchangeable Senior Notes to the extent that Brigade Capital and its affiliates would beneficially own (as determined in accordance with Section 13(d) of the Exchange Act) in excess of 12.49% of Company Common Stock outstanding immediately after giving effect to such conversion. The business address of each of Brigade Capital, Bridge Capital Management and Mr. Morgan is 399 Park Avenue, 16th Floor, New York, New York 10022. The business address of Brigade Fund is c/o Intertrust Corporate Services (Cayman) Limited, 190 Elgin Avenue, George Town, Grand Cayman KY1-9005, Cayman Islands. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Beginning balance | $ | 246,224 | $ | 248,633 | $ | 251,132 | ||||||
Additions | 0 | 7,912 | 7,653 | |||||||||
Reductions | (75,452 | ) | — | — | ||||||||
Changes relating to the discontinued operations | (67,484 | ) | — | — | ||||||||
NOL/tax credit claimed/expired | 3,686 | (3,529 | ) | (1,393 | ) | |||||||
Translation adjustments | 8,662 | (6,792 | ) | (8,759 | ) | |||||||
Ending balance | $ | 115,636 | $ | 246,224 | $ | 248,633 | ||||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
NOL carry-forwards | $ | 604,977 | $ | 708,885 | $ | 730,472 |
(4) | Based on the information contained in a Schedule 13G filed with the SEC on February 12, 2021 by Federated Hermes, Inc., Voting Shares Irrevocable Trust, Thomas R. Donahue, Rhodora J. Donahue and J. Christopher Donahue. Each of Federated Hermes, Inc. and Voting Shares Irrevocable Trust have sole power to vote or to direct the vote and sole power to dispose or to direct the disposition of the shares of Company Common Stock listed in the table above. Each of Thomas R. Donahue, Rhodora J. Donahue and J. Christopher Donahue have shared power to vote or to direct the vote and shared power to dispose or to direct the disposition of such shares. The business address for Federated Hermes, Inc. is 1001 Liberty Avenue, Pittsburgh, PA 15222-3779. |
(5) | Based on the information contained in an Amendment No. 3 to Schedule 13G filed with the SEC on February 16, 2021 by Rubric Capital Management LP (“Rubric Capital”), the investment adviser to certain investment funds and/or accounts (collectively, the “Rubric Funds”) and David Rosen, Managing Member of Rubric Capital Management GP LLC, the general partner of Rubric Capital. Each of Rubric Capital and Mr. Rosen beneficially own the shares of Company Common Stock listed in the table above and has shared power to vote or to direct the vote and shared power to dispose or to direct the disposition of such shares. Rubric Capital Master Fund LP, a Rubric Fund, has the right to receive or the power to direct the receipt of dividends from, or the proceeds from the sale of, more than 5% of Company Common Stock. The business address for Rubric Capital and Mr. Rosen is 155 East 44th St, Suite 1630, New York, NY 10017. |
(6) | Based on the information contained in an amendment No. 2 to Schedule 13G filed with the SEC on February 11, 2021 by Morgan Stanley. Morgan Stanley beneficially owns the shares of Company Common Stock listed in the table above and has shared power to dispose or to direct the disposition of such shares (and has shared voting power with respect to 2,582,022 of such shares). The shares of Company Common Stock reported on by Morgan Stanley as a parent holding company are owned, or may be deemed to be beneficially owned, by Morgan Stanley Capital Services LLC, a wholly owned subsidiary of Morgan Stanley (“MSCS LLC”). MSCS LLC beneficially owns 2,576,949 of the shares of Company Common Stock listed in the table above and has shared voting and dispositive power with respect to such shares. The amounts reported reflect the securities beneficially owned, or that may be deemed to be beneficially owned, by certain operating units (collectively, the “MS Reporting Units”) of Morgan Stanley and its subsidiaries and affiliates (collectively, “MS”), in accordance with SEC Release Number 34-39538 (January 12, 1998). The amounts reported do not reflect securities, if any, beneficially owned by any operating units of MS whose ownership of securities is disaggregated from that of the MS Reporting Units in accordance with SEC Release Number34-39538 (January 12, 1998). The business address for Morgan Stanley and MSCS LLC is 1585 Broadway, New York, NY 10036. |
(7) | Represents 10,100 shares of Company Common Stock, options to purchase 49,737 shares of Company Common Stock and 50,808 shares of Company Common Stock subject to RSUs that will be vested and may be exercised or settled, as applicable, as of June 25, 2021. |
(8) | Represents 20,706 shares of Company Common Stock, options to purchase 204,593 shares of Company Common Stock and 57,122 shares of Company Common Stock subject to RSUs that will be vested and may be exercised or settled, as applicable, as of June 25, 2021. |
(9) | Represents 28,000 shares of Company Common Stock, options to purchase 49,737 shares of Company Common Stock and 50,808 shares of Company Common Stock subject to RSUs that will be vested and may be exercised or settled, as applicable, as of June 25, 2021. |
(10) | Represents 5,408 shares of Company Common Stock, options to purchase 93,117 shares of Company Common Stock and 58,804 shares of Company Common Stock subject to RSUs that will be vested and may be exercised or settled, as applicable, as of June 25, 2021. |
(11) | Represents 246,628 shares of Company Common Stock and options to purchase 335,915 shares of Company Common Stock that will be vested and may be exercised as of June 25, 2021. |
(12) | Represents 6,000 shares of Company Common Stock subject to RSUs that will be vested and may be settled as of June 25, 2021. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Unrecognized tax benefits, balance at the beginning | $ | 445 | $ | 426 | $ | 475 | ||||||
Additions based on tax positions related to the current year | 48 | 13 | 10 | |||||||||
Reductions for tax positions of prior years | (34 | ) | (1 | ) | — | |||||||
Lapse of statute of limitations | (76 | ) | — | (51 | ) | |||||||
Translation adjustments | 31 | 7 | (8 | ) | ||||||||
Unrecognized tax benefits, balance at the ending | $ | 414 | $ | 445 | $ | 426 | ||||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Revenues | ||||||||||||
Standard products business | ||||||||||||
Display Solutions | $ | 299,057 | $ | 308,531 | $ | 256,113 | ||||||
Power Solutions | 166,462 | 176,316 | 169,377 | |||||||||
Total standard products business | 465,519 | 484,847 | 425,490 | |||||||||
Transitional Fab 3 foundry services | 41,540 | 35,824 | 39,935 | |||||||||
Total revenues | $ | 507,059 | $ | 520,671 | $ | 465,425 | ||||||
(13) | Represents 101,265 shares of Company Common Stock and options to purchase 127,610 shares of Company Common Stock that will be vested and may be exercised as of June 25, 2021. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Gross Profit | ||||||||||||
Standard products business | $ | 127,099 | $ | 116,397 | $ | 115,648 | ||||||
Transitional Fab 3 foundry services | 1,218 | — | — | |||||||||
Total gross profit | $ | 128,317 | $ | 116,397 | $ | 115,648 | ||||||
(14) | Represents 86,746 shares of Company Common Stock and options to purchase 119,810 shares of Company Common Stock that will be vested and may be exercised as of June 25, 2021. |
(15) | Represents 5,000 shares of Company Common Stock subject to RSUs that will be vested and may be settled as of June 25, 2021. |
(16) | Mr. J. Kim resigned his positions as our Chief Financial Officer and Chief Accounting Officer and from all other positions with us and our subsidiaries, effective as of March 27, 2020. |
(17) | Our directors and executive officers as a group beneficially own, as of April 26, 2021, 1,707,914 shares of Company Common Stock or 3.6%, which represents 498,853 shares of Company Common Stock, options to purchase 980,519 shares of Company Common Stock and 228,542 shares of Company Common Stock subject to RSUs that will be vested and may be exercised or settled, as applicable, as of June 25, 2021. |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Korea | $ | 106,415 | $ | 132,622 | $ | 176,097 | ||||||
Asia Pacific (other than Korea) | 347,597 | 343,652 | 241,461 | |||||||||
United States | 5,147 | 2,399 | 1,983 | |||||||||
Europe | 4,317 | 4,801 | 4,360 | |||||||||
Others | 2,043 | 1,373 | 1,589 | |||||||||
Total | $ | 465,519 | $ | 484,847 | $ | 425,490 | ||||||
Item 13. | Certain Relationships and Related Transactions, and Director Independence |
Year Ended December 31, | ||||||||
2020 | 2019 | |||||||
Foreign currency translation adjustments | $ | 2,069 | $ | (4,205 | ) | |||
Derivative adjustments | 1,634 | 1,545 | ||||||
Total | $ | 3,703 | $ | (2,660 | ) | |||
Year Ended December 31, 2020 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (4,205 | ) | $ | 1,545 | $ | (2,660 | ) | ||||
Other comprehensive income before reclassifications | 6,274 | 1,452 | 7,726 | |||||||||
Amounts reclassified from accumulated other comprehensive income | — | (1,363 | ) | (1,363 | ) | |||||||
Net current-period other comprehensive income | 6,274 | 89 | 6,363 | |||||||||
Ending balance | $ | 2,069 | $ | 1,634 | $ | 3,703 | ||||||
Year Ended December 31, 2019 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (20,061 | ) | $ | (49 | ) | $ | (20,110 | ) | |||
Other comprehensive income (loss) before reclassifications | 15,856 | (2,894 | ) | 12,962 | ||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4,488 | 4,488 | |||||||||
Net current-period other comprehensive income | 15,856 | 1,594 | 17,450 | |||||||||
Ending balance | $ | (4,205 | ) | $ | 1,545 | $ | (2,660 | ) | ||||
Year Ended December 31, 2018 | Foreign currency translation adjustments | Derivative adjustments | Total | |||||||||
Beginning balance | $ | (38,413 | ) | $ | 5,299 | $ | (33,114 | ) | ||||
Other comprehensive income (loss) before reclassifications | 18,352 | (1,589 | ) | 16,763 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | (3,759 | ) | (3,759 | ) | |||||||
Net current-period other comprehensive income (loss) | 18,352 | (5,348 | ) | 13,004 | ||||||||
Ending balance | $ | (20,061 | ) | $ | (49 | ) | $ | (20,110 | ) | |||
Item 14. | Principal Accounting Fees and Services |
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||
Basic earnings (loss) per share | ||||||||||||
Income (loss) from continuing operations | $ | 57,059 | $ | (20,413 | ) | $ | (25,777 | ) | ||||
Income (loss) from discontinued operations, net of tax | 287,906 | (1,413 | ) | 21,877 | ||||||||
Net income (loss) | $ | 344,965 | $ | (21,826 | ) | $ | (3,900 | ) | ||||
Basic weighted average common stock outstanding | 35,213,525 | 34,321,888 | 34,469,921 | |||||||||
Basic earnings (loss) per common share | ||||||||||||
Continuing operations | $ | 1.62 | $ | (0.59 | ) | $ | (0.75 | ) | ||||
Discontinued operations | 8.18 | (0.05 | ) | 0.64 | ||||||||
Total | $ | 9.80 | $ | (0.64 | ) | $ | (0.11 | ) | ||||
Diluted earnings (loss) per share | ||||||||||||
Income (loss) from continuing operations | $ | 57,059 | $ | (20,413 | ) | $ | (25,777 | ) | ||||
Add back: Interest expense on Exchangeable Notes | 5,708 | — | — | |||||||||
Income (loss) from continuing operations allocated to common stockholders | $ | 62,767 | $ | (20,413 | ) | $ | (25,777 | ) | ||||
Income (loss) from discontinued operations, net of tax | 287,906 | (1,413 | ) | 21,877 | ||||||||
Net income (loss) allocated to common stockholders | $ | 350,673 | $ | (21,826 | ) | $ | (3,900 | ) | ||||
Basic weighted average common stock outstanding | 35,213,525 | 34,321,888 | 34,469,921 | |||||||||
Net effect of dilutive equity awards | 1,145,906 | — | — | |||||||||
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 10,144,155 | — | — | |||||||||
Diluted weighted average common stock outstanding | 46,503,586 | 34,321,888 | 34,469,921 | |||||||||
Diluted earnings (loss) per common share | ||||||||||||
Continuing operations | $ | 1.35 | $ | (0.59 | ) | $ | (0.75 | ) | ||||
Discontinued operations | 6.19 | (0.05 | ) | 0.64 | ||||||||
Total | $ | 7.54 | $ | (0.64 | ) | $ | (0.11 | ) | ||||
Year Ended December 31, | ||||||||||||
2020 | 2019 | 2018 | ||||||||||
Options | 651,417 | 2,177,045 | 2,674,756 | |||||||||
Restricted Stock Units | — | 1,043,303 | 718,213 |
Fiscal Year 2020 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||||||
Revenues | $ | 120,473 | $ | 118,828 | $ | 124,813 | $ | 142,945 | ||||||||
Gross profit | 29,130 | 32,138 | 28,588 | 38,461 | ||||||||||||
Operating income | 5,965 | 8,622 | 3,223 | 9,206 | ||||||||||||
Income (loss) from continuing operations | (31,078 | ) | 11,774 | 8,461 | 67,902 | |||||||||||
Income (loss) from discontinued operations, net of tax | 7,329 | 17,397 | 264,501 | (1,321 | ) | |||||||||||
Net income (loss) | $ | (23,749 | ) | $ | 29,171 | $ | 272,962 | $ | 66,581 | |||||||
Basic earnings (loss) per common share— | ||||||||||||||||
Continuing operations | $ | (0.89 | ) | $ | 0.34 | $ | 0.24 | $ | 1.91 | |||||||
Discontinued operations | 0.21 | 0.50 | 7.50 | (0.04 | ) | |||||||||||
Total | $ | (0.68 | ) | $ | 0.84 | $ | 7.74 | $ | 1.87 | |||||||
Diluted earnings (loss) per common share— | ||||||||||||||||
Continuing operations | $ | (0.89 | ) | $ | 0.28 | $ | 0.21 | $ | 1.47 | |||||||
Discontinued operations | 0.21 | 0.37 | 5.68 | (0.02 | ) | |||||||||||
Total | $ | (0.68 | ) | $ | 0.65 | $ | 5.89 | $ | 1.45 | |||||||
Weighted average number of shares— | ||||||||||||||||
Basic | 34,893,157 | 35,092,312 | 35,280,864 | 35,582,966 | ||||||||||||
Diluted | 34,893,157 | 46,474,237 | 46,581,788 | 47,062,903 | ||||||||||||
Year Ended December 31 | ||||||||
2020 | 2019 | |||||||
(in millions) | ||||||||
Audit fees | $ | 1.8 | $ | 1.5 | ||||
Audit Related fees | — | — | ||||||
Tax fees | — | — | ||||||
All other fees | $ | 0 | — | |||||
Total | $ | 1.8 | $ | 1.5 | ||||
Fiscal Year 2019 | ||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
(In thousands of U.S. dollars, except share data) | ||||||||||||||||
Revenues | $ | 107,267 | $ | 140,885 | $ | 149,167 | $ | 123,352 | ||||||||
Gross profit | 19,023 | 31,622 | 35,255 | 30,497 | ||||||||||||
Operating income (loss) | (5,057 | ) | 8,755 | 14,336 | 5,691 | |||||||||||
Income (loss) from continuing operations | (21,555 | ) | (8,490 | ) | (14,244 | ) | 23,876 | |||||||||
Income (loss) from discontinued operations, net of tax | (12,570 | ) | (1,030 | ) | 12,637 | (450 | ) | |||||||||
Net income (loss) | $ | (34,125 | ) | $ | (9,520 | ) | $ | (1,607 | ) | $ | 23,426 | |||||
Basic earnings (loss) per common share— | ||||||||||||||||
Continuing operations | $ | (0.63 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | 0.69 | |||||
Discontinued operations | (0.37 | ) | (0.03 | ) | 0.36 | (0.01 | ) | |||||||||
Total | $ | (1.00 | ) | $ | (0.28 | ) | $ | (0.05 | ) | $ | 0.68 | |||||
Diluted earnings (loss) per common share— | ||||||||||||||||
Continuing operations | $ | (0.63 | ) | $ | (0.25 | ) | $ | (0.41 | ) | $ | 0.55 | |||||
Discontinued operations | (0.37 | ) | (0.03 | ) | 0.36 | (0.01 | ) | |||||||||
Total | $ | (1.00 | ) | $ | (0.28 | ) | $ | (0.05 | ) | $ | 0.54 | |||||
Weighted average number of shares— | ||||||||||||||||
Basic | 34,194,878 | 34,245,127 | 34,357,745 | 34,542,415 | ||||||||||||
Diluted | 34,194,878 | 34,245,127 | 34,357,745 | 46,078,768 |
Item 15. |
1. | Financial Statements |
2. | Financial Statement Schedules |
3. | Exhibits |
(1) | Certain portions of this document have been omitted pursuant to a grant of confidential treatment by the SEC. |
* | Management contract, compensatory plan or arrangement |
^ | Previously filed with the Original 10-K Filing |
# | Filed herewith |
† | Previously furnished with the Original |
By: | /s/ Young-Joon Kim | |||
Name: | Young-Joon Kim | |||
Title: | Chief Executive Officer and Director | |||
Date: |