Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 24, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'UNIVERSAL DISPLAY CORP \PA\ | ' | ' |
Entity Central Index Key | '0001005284 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 46,438,738 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $953,262,272 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $70,586 | $85,923 |
Short-term investments | 202,024 | 158,018 |
Accounts receivable | 15,657 | 8,657 |
Inventory | 10,595 | 11,018 |
Deferred income taxes | 21,563 | 11 |
Other current assets | 6,623 | 3,918 |
Total current assets | 327,048 | 267,545 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $22,756 and $20,713 | 14,893 | 11,808 |
ACQUIRED TECHNOLOGY, net of accumulated amortization of $32,841 and $21,868 | 94,011 | 104,624 |
INVESTMENTS | 7,417 | 1,270 |
DEFERRED INCOME TAXES | 19,143 | 0 |
OTHER ASSETS | 242 | 277 |
TOTAL ASSETS | 462,754 | 385,524 |
CURRENT LIABILITIES: | ' | ' |
Accounts payable | 5,256 | 7,596 |
Accrued expenses | 16,039 | 10,394 |
Deferred revenue | 1,910 | 4,273 |
Other current liabilities | 24 | 36 |
Total current liabilities | 23,229 | 22,299 |
DEFERRED REVENUE | 2,403 | 3,153 |
RETIREMENT PLAN BENEFIT LIABILITY | 9,436 | 9,837 |
Total liabilities | 35,068 | 35,289 |
COMMITMENTS AND CONTINGENCIES (Note 13) | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred Stock, par value $0.01 per share, 5,000,000 shares authorized, 200,000 shares of Series A Nonconvertible Preferred Stock issued and outstanding (liquidation value of $7.50 per share or $1,500) | 2 | 2 |
Common Stock, par value $0.01 per share, 100,000,000 shares authorized, 46,825,168 and 46,561,437 shares issued at December 31, 2013 and 2012, respectively | 468 | 465 |
Additional paid-in capital | 572,401 | 564,883 |
Accumulated deficit | -130,159 | -204,211 |
Accumulated other comprehensive loss | -4,368 | -5,702 |
Treasury stock, at cost (401,501 and 205,902 shares at December 31, 2013 and 2012, respectively) | -10,658 | -5,202 |
Total shareholders’ equity | 427,686 | 350,235 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $462,754 | $385,524 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $22,756,000 | $20,713,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 32,841,000 | 21,868,000 |
Shareholders' Equity | ' | ' |
Preferred Stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred Stock, shares authorized ( in shares) | 5,000,000 | 5,000,000 |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common Stock, shares issued (in shares) | 46,825,168 | 46,561,437 |
Common Stock, shares outstanding (in shares) | 46,825,168 | 46,561,437 |
Treasury Stock | ' | ' |
Treasury stock, at cost (205,902 shares at December 31, 2012) | 401,501 | 205,902 |
Series A Nonconvertible Preferred Stock [Member] | ' | ' |
Shareholders' Equity A Nonconvertible Preferred Stock | ' | ' |
Preferred Stock, shares issued (in shares) | 200,000 | 200,000 |
Preferred Stock, shares outstanding (in shares) | 200,000 | 200,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $7.50 | $7.50 |
Preferred Stock, liquidation value | $1,500,000 | $1,500,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUE: | ' | ' | ' |
Material sales | $95,713 | $44,472 | $37,444 |
Royalty and license fees | 47,006 | 31,698 | 15,345 |
Technology development and support revenue | 3,920 | 7,074 | 8,500 |
Total revenue | 146,639 | 83,244 | 61,289 |
OPERATING EXPENSES: | ' | ' | ' |
Cost of material sales | 28,889 | 4,528 | 3,731 |
Research and development | 34,215 | 30,032 | 24,129 |
Selling, general and administrative | 24,745 | 19,550 | 18,940 |
Patent costs and amortization of acquired technology | 17,273 | 13,385 | 7,442 |
Royalty and license expense | 3,273 | 2,073 | 1,360 |
Total operating expenses | 108,395 | 69,568 | 55,602 |
Operating income | 38,244 | 13,676 | 5,687 |
INTEREST INCOME | 811 | 1,240 | 994 |
INTEREST EXPENSE | -47 | -48 | -50 |
LOSS ON STOCK WARRANT LIABILITY | 0 | 0 | -4,190 |
INCOME BEFORE INCOME TAXES | 39,008 | 14,868 | 2,441 |
INCOME TAX BENEFIT (EXPENSE) | 35,044 | -5,208 | 714 |
NET INCOME | $74,052 | $9,660 | $3,155 |
NET INCOME PER COMMON SHARE: | ' | ' | ' |
BASIC (in dollars per share) | $1.61 | $0.21 | $0.07 |
DILUTED (in dollars per share) | $1.59 | $0.21 | $0.07 |
WEIGHTED AVERAGE SHARES USED IN COMPUTING NET INCOME PER COMMON SHARE: | ' | ' | ' |
BASIC (in shares) | 45,898,019 | 45,951,276 | 43,737,968 |
DILUTED (in shares) | 46,543,605 | 46,883,602 | 45,140,394 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $74,052 | $9,660 | $3,155 |
OTHER COMPREHENSIVE (LOSS) INCOME, NET OF TAX: | ' | ' | ' |
Unrealized loss on available-for-sale securities | -6 | -31 | -1 |
Employee benefit plan: | ' | ' | ' |
Actuarial gain (loss) on retirement plan | 901 | -442 | -418 |
Amortization of prior service cost and actuarial loss for retirement plan included in net periodic pension costs | 439 | 628 | 600 |
Net change for employee benefit plan | 1,340 | 186 | 182 |
TOTAL OTHER COMPREHENSIVE INCOME | 1,334 | 155 | 181 |
COMPREHENSIVE INCOME | $75,386 | $9,815 | $3,336 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Series A Nonconvertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
In Thousands, except Share data, unless otherwise specified | |||||||
BALANCE at Dec. 31, 2010 | $57,430 | $2 | $390 | $280,102 | ($217,026) | ($6,038) | $0 |
BALANCE (in shares) at Dec. 31, 2010 | ' | 200,000 | 38,936,571 | ' | ' | ' | 0 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 3,155 | ' | ' | ' | 3,155 | ' | ' |
Other comprehensive income (loss) | 181 | ' | ' | ' | ' | 181 | ' |
Exercise of common stock options and warrants, net of tendered shares (in shares) | ' | ' | 1,266,191 | ' | ' | ' | ' |
Exercise of common stock options, net of tendered shares | 27,755 | ' | 12 | 27,743 | ' | ' | ' |
Stock-based employee compensation, net of shares withheld for employee taxes (in shares) | ' | ' | 103,112 | ' | ' | ' | ' |
Stock-based employee compensation, net of shares withheld for employee taxes | 2,106 | ' | 1 | 2,105 | ' | ' | ' |
Stock-based non-employee compensation (in shares) | ' | ' | 174 | ' | ' | ' | ' |
Stock-based non-employee compensation | 7 | ' | 0 | 7 | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | ' | ' | 46,536 | ' | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board | 1,648 | ' | 0 | 1,648 | ' | ' | ' |
Issuance of common stock in connection with materials and license agreements (in shares) | ' | ' | 181 | ' | ' | ' | ' |
Issuance of common stock in connection with materials and license agreements | 9 | ' | 0 | 9 | ' | ' | ' |
Issuance of common stock to employees under an Employee Stock Purchase Plan (ESPP) (in shares) | ' | ' | 10,531 | ' | ' | ' | ' |
Issuance of common stock to employees under an ESPP | 307 | ' | 0 | 307 | ' | ' | ' |
Issuance of common stock through a public offering, net of expenses (in shares) | ' | ' | 5,750,000 | ' | ' | ' | ' |
Issuance of common stock through a public offering, net of expenses of $14,871 | 249,629 | ' | 58 | 249,571 | ' | ' | ' |
BALANCE at Dec. 31, 2011 | 342,227 | 2 | 461 | 561,492 | -213,871 | -5,857 | 0 |
BALANCE (in shares) at Dec. 31, 2011 | ' | 200,000 | 46,113,296 | ' | ' | ' | 0 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 9,660 | ' | ' | ' | 9,660 | ' | ' |
Other comprehensive income (loss) | 155 | ' | ' | ' | ' | 155 | ' |
Exercise of common stock options and warrants, net of tendered shares (in shares) | ' | ' | 222,549 | ' | ' | ' | ' |
Exercise of common stock options, net of tendered shares | 855 | ' | 2 | 853 | ' | ' | ' |
Stock-based employee compensation, net of shares withheld for employee taxes (in shares) | ' | ' | 170,584 | ' | ' | ' | ' |
Stock-based employee compensation, net of shares withheld for employee taxes | 1,125 | ' | 2 | 1,123 | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | ' | ' | 43,341 | ' | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board | 1,094 | ' | 0 | 1,094 | ' | ' | ' |
Issuance of common stock to employees under an Employee Stock Purchase Plan (ESPP) (in shares) | ' | ' | 11,667 | ' | ' | ' | ' |
Issuance of common stock to employees under an ESPP | 321 | ' | 0 | 321 | ' | ' | ' |
Repurchase of common stock (in shares) | ' | ' | ' | ' | ' | ' | 205,902 |
Exercise of common stock options, net of tendered shares | 5,202 | ' | ' | ' | ' | ' | 5,202 |
BALANCE at Dec. 31, 2012 | 350,235 | 2 | 465 | 564,883 | -204,211 | -5,702 | -5,202 |
BALANCE (in shares) at Dec. 31, 2012 | ' | 200,000 | 46,561,437 | ' | ' | ' | 205,902 |
Increase (Decrease) in Shareholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' |
Net income | 74,052 | ' | ' | ' | 74,052 | ' | ' |
Other comprehensive income (loss) | 1,334 | ' | ' | ' | ' | 1,334 | ' |
Exercise of common stock options and warrants, net of tendered shares (in shares) | ' | ' | 223,714 | ' | ' | ' | ' |
Exercise of common stock options, net of tendered shares | 2,558 | ' | 2 | 2,556 | ' | ' | ' |
Stock-based employee compensation, net of shares withheld for employee taxes (in shares) | ' | ' | -13,502 | ' | ' | ' | ' |
Stock-based employee compensation, net of shares withheld for employee taxes | 3,519 | ' | 0 | 3,519 | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | ' | ' | 39,153 | ' | ' | ' | ' |
Issuance of common stock to Board of Directors and Scientific Advisory Board | 1,101 | ' | 1 | 1,100 | ' | ' | ' |
Issuance of common stock to employees under an Employee Stock Purchase Plan (ESPP) (in shares) | ' | ' | 14,366 | ' | ' | ' | ' |
Issuance of common stock to employees under an ESPP | 343 | ' | 0 | 343 | ' | ' | ' |
Repurchase of common stock (in shares) | 195,599 | ' | ' | ' | ' | ' | ' |
Exercise of common stock options, net of tendered shares | 5,456 | ' | ' | ' | ' | ' | ' |
BALANCE at Dec. 31, 2013 | $427,686 | $2 | $468 | $572,401 | ($130,159) | ($4,368) | ($10,658) |
BALANCE (in shares) at Dec. 31, 2013 | ' | 200,000 | 46,825,168 | ' | ' | ' | 401,501 |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' |
Issuance of common stock through a public offering, expenses | $14,871 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $74,052 | $9,660 | $3,155 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Amortization of deferred revenue | -5,880 | -5,284 | -3,275 |
Depreciation | 2,044 | 1,978 | 1,451 |
Amortization of intangibles | 10,973 | 4,869 | 49 |
Amortization of premium and discount on investments, net | -458 | -778 | -775 |
Stock-based employee compensation | 6,077 | 4,263 | 4,373 |
Stock-based non-employee compensation | 0 | 0 | 6 |
Non-cash expense under materials and license agreements | 0 | 0 | 9 |
Stock-based compensation to Board of Directors and Scientific Advisory Board | 809 | 781 | 1,377 |
Loss on stock warrant liability | 0 | 0 | 4,190 |
Deferred Income Tax Expense (Benefit) | -41,418 | -11 | 0 |
Retirement plan benefit expense | 1,665 | 1,600 | 1,527 |
(Increase) decrease in assets: | ' | ' | ' |
Accounts receivable | -7,000 | 2,070 | -3,479 |
Inventory | 424 | -7,175 | -3,841 |
Other current assets | -2,706 | -2,284 | 341 |
Other assets | 35 | 33 | -82 |
Increase (decrease) in liabilities: | ' | ' | ' |
Accounts payable and accrued expenses | 3,614 | 4,718 | 6,775 |
Other current liabilities | -11 | 11 | 23 |
Deferred revenue | 2,767 | 3,303 | 4,585 |
Net cash provided by operating activities | 44,987 | 17,754 | 16,409 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property and equipment | -4,710 | -2,737 | -2,624 |
Additions to intangibles | -359 | -109,102 | -440 |
Purchases of investments | -362,838 | -304,500 | -337,442 |
Proceeds from sale of investments | 313,132 | 380,253 | 156,717 |
Net cash used in investing activities | -54,775 | -36,086 | -183,789 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' |
Proceeds from issuance of common stock | 343 | 321 | 249,936 |
Repurchase of common stock | -5,456 | -5,202 | 0 |
Proceeds from the exercise of common stock options and warrants | 2,832 | 1,483 | 13,343 |
Payment of withholding taxes related to stock-based employee compensation | -3,268 | -4,142 | -4,473 |
Net cash (used in) provided by financing activities | -5,549 | -7,540 | 258,806 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | -15,337 | -25,872 | 91,426 |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 85,923 | 111,795 | 20,369 |
CASH AND CASH EQUIVALENTS, END OF YEAR | $70,586 | $85,923 | $111,795 |
BUSINESS
BUSINESS | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
BUSINESS | ' | |
1 | BUSINESS: | |
Universal Display Corporation (the Company) is engaged in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in displays for smartphones, tablets and televisions as well as solid-state lighting applications. The Company's business strategy is to develop new OLED materials and sell those materials to product manufacturers. The Company develops and licenses its proprietary OLED technologies to product manufacturers for use in these applications. Through internal research and development efforts and acquisitions from and relationships with entities such as Princeton University (Princeton), the University of Southern California (USC), the University of Michigan (Michigan), Fujifilm Corporation (Fujifilm), Motorola Solutions, Inc. (f/k/a Motorola, Inc.) (Motorola) and PPG Industries, Inc. (PPG Industries), the Company has established a significant portfolio of proprietary OLED technologies and materials (see Notes 3, 5 and 7). |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of Universal Display Corporation and its wholly owned subsidiaries, UDC, Inc., Universal Display Corporation Hong Kong, Ltd., Universal Display Corporation Korea, Y.H., Universal Display Corporation Japan, G.K. and UDC Ireland Limited. All intercompany transactions and accounts have been eliminated. | |||||||||||||||||
Management’s Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The estimates made are principally in the areas of revenue recognition for license agreements, the useful life of acquired technology, the valuation of the Company's convertible promissory note investments, income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. | |||||||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||||||
The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. The Company classifies its remaining investments as available-for-sale. These securities are carried at fair market value, with unrealized gains and losses reported in shareholders’ equity. Gains or losses on securities sold are based on the specific identification method. Investments at December 31, 2013 and 2012 consist of the following (in thousands): | |||||||||||||||||
Amortized | Unrealized | Aggregate Fair | |||||||||||||||
Investment Classification | Cost | Gains | (Losses) | Market Value | |||||||||||||
December 31, 2013 | |||||||||||||||||
Certificates of deposit | $ | 11,358 | $ | 2 | $ | (16 | ) | $ | 11,344 | ||||||||
Corporate bonds | 190,738 | 33 | (48 | ) | 190,723 | ||||||||||||
U.S. Government bonds | 3,074 | — | — | 3,074 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 209,470 | $ | 35 | $ | (64 | ) | $ | 209,441 | |||||||||
December 31, 2012 | |||||||||||||||||
Certificates of deposit | $ | 7,562 | $ | 3 | $ | (5 | ) | $ | 7,560 | ||||||||
Commercial paper | 2,997 | — | — | 2,997 | |||||||||||||
Corporate bonds | 141,349 | 9 | (25 | ) | 141,333 | ||||||||||||
U.S. Government bonds | 3,098 | — | — | 3,098 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 159,306 | $ | 12 | $ | (30 | ) | $ | 159,288 | |||||||||
On July 13, 2012, the Company entered into a three-year joint development agreement with Plextronics, Inc. (Plextronics), a private company engaged in printed solar, lighting and other electronics related research and development. The Company invested $4.0 million in Plextronics through the purchase of a convertible promissory note. The Company also received warrants in connection with the purchase of the convertible note. The note accrues interest at the rate of 3% per year. The Company modified the note extending its due date beyond the original due date of June 30, 2013. Depending on certain conditions, the note may either convert automatically, or if other certain conditions are met, the Company has the option to convert the note into shares of Plextronics’ preferred stock at a specified conversion price. The note was classified as a long-term investment at December 31, 2013, and was classified as a short-term investment at December 31, 2012. See Fair Value Measurements below for additional information regarding the note. | |||||||||||||||||
On December 20, 2013, the Company served notice of its intent to terminate the joint development agreement with Plextronics. Effective as of December 23, 2013, the Company terminated all commitments to pay Plextronics, as permissible under the terms of the joint development agreement. | |||||||||||||||||
On July 17, 2012, the Company invested $300,000 in a private company engaged in plasma processing equipment research and development (the Borrower) through the purchase of a convertible promissory note. The note accrues interest at the rate of 5% per year and is due and payable by August 1, 2015. The note is included in investments on the consolidated balance sheet. The Company has the option to convert the note into shares of the Borrower’s preferred stock at a specified conversion price. | |||||||||||||||||
All short-term investments held at December 31, 2013 will mature within one year. | |||||||||||||||||
Trade Accounts Receivable | |||||||||||||||||
Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company’s accounts receivable balance is a result of chemical sales, royalties, license fees and U.S. government contract revenues. These receivables have historically been paid timely. Due to the nature of the accounts receivable balance, the Company believes there is no significant risk of collection. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, allowances for doubtful accounts would be required. The Company recorded no bad debt expense in the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Inventory | |||||||||||||||||
Inventory, which consists of materials that have been classified as commercial, is valued at the lower of cost or market using the first-in, first-out method. Commercial materials are materials that have been validated by the Company for use in commercial OLED products. | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying value as of December 31, 2013 | Quoted prices in active markets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents | $ | 7,600 | $ | 7,600 | $ | — | $ | — | |||||||||
Short-term investments | 202,024 | 202,024 | — | — | |||||||||||||
Long-term investments | 7,417 | 3,117 | — | 4,300 | |||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2012 (in thousands): | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying value as of December 31, 2012 | Quoted prices in active markets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents | $ | 63,863 | $ | 63,863 | $ | — | $ | — | |||||||||
Short-term investments | 158,018 | 154,018 | — | 4,000 | |||||||||||||
Long-term investments | 1,270 | 970 | — | 300 | |||||||||||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset's or liability’s classification is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
The Company's convertible promissory note investments are currently classified within investments on the consolidated balance sheet. | |||||||||||||||||
These convertible promissory note investments are inherently risky as the notes lack a ready market for resale and the note issuer's success is dependent on numerous factors, including, among others, product development, market acceptance, operational efficiency, the ability of the investee companies to raise additional funds in financial markets that can be volatile, and other key business factors. Additionally, the companies that the Company has invested in could fail or not be able to raise additional funds when needed. Should one or more of these events occur, they could cause the Company's investments to significantly decrease in value. In addition, financial market volatility could negatively affect the Company's ability to realize value in the Company's investments through liquidity events, such as mergers and private sales. | |||||||||||||||||
The Company determines the fair value of its convertible promissory note investments portfolio quarterly. The fair value of the Company's convertible promissory note investments is determined through the consideration of whether the investee is experiencing financial difficulty, overall trends in interest rates and other factors. Management also performs an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future. The evaluation requires significant judgment and includes quantitative and qualitative analysis of identified events or circumstances affecting the investee, which may impact the fair value of the investment, such as: | |||||||||||||||||
• | the investee's revenue and earnings trends relative to pre-defined milestones and overall business prospects; | ||||||||||||||||
• | the technological feasibility of the investee's products and technologies; | ||||||||||||||||
• | the general market conditions in the investee's industry or geographic area, including adverse regulatory or economic changes; | ||||||||||||||||
• | factors related to the investee's ability to remain in business, such as the investee's liquidity, debt ratios, and the rate at which the investee is using its cash; and | ||||||||||||||||
• | the investee's receipt of additional funding at a lower valuation. | ||||||||||||||||
Changes in fair value of the investments are recorded as unrealized gains and losses in other comprehensive income (loss). If a decline in fair value of a convertible promissory note investment below its carrying value is deemed to be other than temporary, the amortized cost basis of the Company’s investment will be written down by the amount of the other-than-temporary impairment with a resulting charge to net income. There were no other-than-temporary impairments of convertible promissory note investments as of December 31, 2013. On January 16, 2014, Plextronics, one of the companies that issued the Company a convertible promissory note, for an original principal amount of $4.0 million, filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court of the District of Delaware (Bankruptcy Court). The debtor company is seeking an Order authorizing the sale of substantially all of its assets. On February 14, 2014, the Bankruptcy Court approved the bidding procedures in connection with the sale of substantially all of the debtor company’s assets, including approval of a minimum stalking horse bid under which the Company's investment of $4.0 million would be satisfied in full. If any qualified bids are received under the approved bidding procedures, which are required to be superior to the current stalking horse bid, then on March 5, 2014, an auction for the sale of the debtor’s assets will be held. A sale hearing is currently scheduled for March 6, 2014. Based upon the Company's expectation of full payment resulting from the sale of the debtor company's assets and the bankruptcy process, no impairment has been recorded as of December 31, 2013. If the sale and bankruptcy process does not occur as expected, a full or partial impairment of the investment may be necessary. | |||||||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s investments in convertible notes for the years ended December 31, 2013 and 2012, which had been classified in Level 3 in the fair value hierarchy (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fair value of notes, beginning of year | $ | 4,300 | $ | — | |||||||||||||
Investments | — | 4,300 | |||||||||||||||
Fair value of notes, end of year | $ | 4,300 | $ | 4,300 | |||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s stock warrant liability for the year ended December 31, 2011, which had been classified in Level 3 in the fair value hierarchy (in thousands): | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Fair value of stock warrant liability, beginning of year | $ | 10,660 | |||||||||||||||
Loss for period | 4,190 | ||||||||||||||||
Warrants exercised | (14,850 | ) | |||||||||||||||
Fair value of stock warrant liability, end of year | $ | — | |||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying values of accounts receivable, other current assets, and accounts payable approximate fair value in the accompanying financial statements due to the short-term nature of those instruments. The Company’s other financial instruments, which include cash equivalents and investments are carried at fair value as noted above. | |||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of 30 years for building, 15 years for building improvements, and three to seven years for office and lab equipment and furniture and fixtures. Repair and maintenance costs are charged to expense as incurred. Additions and betterments are capitalized. | |||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
Company management continually evaluates whether events or changes in circumstances might indicate that the remaining estimated useful life of long-lived assets may warrant revision, or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted cash flows in measuring whether the long-lived asset should be written down to fair value. Measurement of the amount of impairment would be based on generally accepted valuation methodologies, as deemed appropriate. As of December 31, 2013, Company management believed that no revision to the remaining useful lives or write-down of the Company’s long-lived assets was required, and similarly, no such revisions were required for the years ended December 31, 2012 or 2011. | |||||||||||||||||
Stock Warrant Liability | |||||||||||||||||
The Company had warrants to purchase shares of common stock outstanding containing a “down-round” provision. In accordance with the guidance in Accounting Standards Codification (ASC) 815, Derivatives and Hedging, the fair value of these warrants was required to be reported as a liability, with the changes of fair value recorded on the statement of income. The change in fair value of these warrants resulted in a non-cash loss on the Company’s consolidated statement of income of $4.2 million for the year ended December 31, 2011. In 2011, all remaining outstanding stock warrants to purchase shares of the Company’s common stock were exercised. | |||||||||||||||||
The fair value of the stock warrant liability was determined using the Black-Scholes option pricing model. | |||||||||||||||||
Net Income Per Common Share | |||||||||||||||||
Basic net income per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period excluding unvested restricted stock awards, restricted stock units and performance units. Diluted net income per common share reflects the potential dilution from the exercise or conversion of securities into common stock, the effect of unvested restricted stock awards, restricted stock units and performance units, and the impact of shares to be issued under the ESPP. | |||||||||||||||||
The following table is a reconciliation of net income and the shares used in calculating basic and diluted net income per common share for the years ended December 31, 2013, 2012 and 2011 (in thousands, except share and per share data): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 74,052 | $ | 9,660 | $ | 3,155 | |||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding – Basic | 45,898,019 | 45,951,276 | 43,737,968 | ||||||||||||||
Effect of dilutive shares: | |||||||||||||||||
Common stock equivalents arising from stock options and ESPP | 458,574 | 648,661 | 956,803 | ||||||||||||||
Restricted stock awards and units and performance units | 187,012 | 283,665 | 445,623 | ||||||||||||||
Weighted average common shares outstanding – Diluted | 46,543,605 | 46,883,602 | 45,140,394 | ||||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 1.61 | $ | 0.21 | $ | 0.07 | |||||||||||
Diluted | $ | 1.59 | $ | 0.21 | $ | 0.07 | |||||||||||
For the year ended December 31, 2013, the combined effects of unvested restricted stock awards and restricted stock units, performance unit awards and outstanding stock options of 140,839, and the impact of shares to be issued under the ESPP, which was minor, were excluded from the calculation of diluted EPS as their impact would have been antidilutive or for performance units, as the units would not be issued if the end of the reporting period was the end of the performance period. For the year ended December 31, 2012, the combined effects of outstanding stock options, and unvested restricted stock awards and restricted stock units, and outstanding stock options of 212,941, and the impact of shares to be issued under the ESPP, which was minor, were excluded from the calculation of diluted EPS as their impact would have been antidilutive. For the year ended December 31, 2011, the effect of 586,972 warrants prior to their exercise was excluded from the calculation of diluted EPS as the impact would have been antidilutive. | |||||||||||||||||
Revenue Recognition and Deferred Revenue | |||||||||||||||||
Material sales relate to the Company’s sale of its OLED materials for incorporation into its customers’ commercial OLED products or for their OLED development and evaluation activities. Material sales are recognized at the time of shipment or at time of delivery, and passage of title, depending upon the contractual agreement between the parties. | |||||||||||||||||
The Company receives license and royalty payments under certain commercial, development and technology evaluation agreements, some of which are non-refundable advances. These payments may include royalty and license fees made pursuant to license agreements and also license fees included as part of certain commercial supply agreements. Certain of the payments under development and technology evaluation agreements are creditable against future amounts payable under commercial license agreements that the parties may subsequently enter into and, as such, are deferred until such commercial license agreements are executed or negotiations have ceased and Company management determines that there is no appreciable likelihood of executing a commercial license agreement with the other party. Revenue would then be recognized over the term of the agreement or the expected useful life of the relevant licensed technology, for perpetual licenses, if there is an effective commercial license agreement or amounts are not creditable against future commercial license fees, or at the time Company management determines that there is no appreciable likelihood of an executable commercial license agreement. Amounts deferred are classified as current and non-current based upon current contractual remaining terms; however, based upon on-going relationships with customers, as well as future agreement extensions, amounts classified as current as of December 31, 2013, may not be recognized as revenue over the next twelve months. As of December 31, 2013, $4.3 million was recorded as deferred revenue, none of which is creditable against future commercial license agreements that have not yet been executed or deemed effective. For the years ended December 31, 2013 and 2012, respectively, $1.5 million and $1.9 million of revenue was recognized relating to cash payments received that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer. For arrangements with extended payment terms where the fee is not fixed and determinable, the Company recognizes revenue when the payment is due and payable. Royalty revenue and license fees included as part of commercial supply agreements are recognized when earned and the amount is fixed and determinable. | |||||||||||||||||
Technology development and support revenue is revenue earned from government contracts, development and technology evaluation agreements and commercialization assistance fees, which includes reimbursements by government entities for all or a portion of the research and development costs the Company incurs in relation to its government contracts. Revenues are recognized proportionally as research and development costs are incurred, or as defined milestones are achieved. | |||||||||||||||||
Currently, the Company's most significant commercial license agreement, which runs through the end of 2017, is with Samsung Display Co., Ltd. (SDC) and covers the manufacture and sale of specified OLED display products. Under this agreement, the Company is being paid a license fee, payable in semi-annual installments over the agreement term of 6.4 years. The installments, which are due in the second and fourth quarter of each year, increase on an annual basis over the term of the agreement. The agreement conveys to SDC the non-exclusive right to use certain of the Company's intellectual property assets for a limited period of time that is less than the estimated life of the assets. Ratable recognition of revenue is impacted by the agreement's extended increasing payment terms in light of the Company's limited history with similar agreements. As a result, revenue is recognized at the lesser of the proportional performance approach (ratable) and the amount of due and payable fees from SDC. Given the increasing contractual payment schedule, license fees under the agreement are recognized as revenue when they become due and payable, which is currently scheduled to be in the second and fourth quarter of each year. | |||||||||||||||||
Included in accounts receivable as of December 31, 2013 and 2012 are unbilled receivables of $92,000 and $308,000, respectively. All amounts are billed and due within one year. | |||||||||||||||||
Cost of Material Sales | |||||||||||||||||
Cost of material sales represents costs associated with the sale of materials that have been classified as commercial including shipping costs. Commercial materials are materials that have been validated by the Company for use in commercial OLED products. Prior to their designation as commercial materials, costs incurred related to the materials are included in research and development costs. | |||||||||||||||||
Research and Development | |||||||||||||||||
Expenditures for research and development are charged to operations as incurred. Research and development expenses consist of the following (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Development and operations in the Company’s facilities | $ | 23,491 | $ | 21,381 | $ | 18,707 | |||||||||||
Costs incurred under sponsored research agreements | 2,671 | 2,058 | 1,022 | ||||||||||||||
PPG OLED Materials Agreement (Note 7) | 7,470 | 6,170 | 3,539 | ||||||||||||||
Scientific Advisory Board compensation | 583 | 423 | 861 | ||||||||||||||
$ | 34,215 | $ | 30,032 | $ | 24,129 | ||||||||||||
Patent Costs and Amortization of Acquired Technology | |||||||||||||||||
Costs associated with patent applications, patent prosecution, patent defense and the maintenance of patents are charged to expense as incurred. Costs to successfully defend a challenge to a patent are capitalized to the extent of an evident increase in the value of the patent. Costs that relate to an unsuccessful outcome are charged to expense. Amortization costs relate to technology acquired from Fujifilm and Motorola in the years ended December 31, 2012 and 2011, respectively. | |||||||||||||||||
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | |||||||||||||||||
The Company's reporting currency is the U.S. dollar. The functional currency for the Company's Ireland subsidiary is also the U.S. dollar and the functional currency for each of the Company's Asia-Pacific foreign subsidiaries is its local currency. The Company translates the amounts included in the consolidated statements of income from its Asia-Pacific foreign subsidiaries into U.S. dollars at weighted-average exchange rates, which the Company believes are representative of the actual exchange rates on the dates of the transactions. The Company's foreign subsidiaries' assets and liabilities are translated into U.S. dollars from the local currency at the actual exchange rates as of the end of each reporting date, and the Company records the resulting foreign exchange translation adjustments in the consolidated balance sheets as a component of accumulated other comprehensive loss. The overall effect of the translation of foreign currency and foreign currency transactions to date has been insignificant. | |||||||||||||||||
Statement of Cash Flow Information | |||||||||||||||||
The following non-cash activities occurred (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Unrealized (loss) gain on available-for-sale securities | $ | (10 | ) | $ | (31 | ) | $ | (1 | ) | ||||||||
Common stock issued to Board of Directors and Scientific Advisory Board that was earned in a previous period | 315 | 328 | 300 | ||||||||||||||
Common stock issued to employees that was accrued for in a previous period, net of shares withheld for taxes | 282 | 252 | 1,113 | ||||||||||||||
Fair value of stock warrant liability reclassified to shareholders’ equity upon exercise | — | — | 14,850 | ||||||||||||||
Property and equipment purchases included in accounts payable | 420 | 165 | — | ||||||||||||||
During the year ended December 31, 2013, 2012, and 2011, the Company paid cash of approximately $6.6 million, $5.3 million and $2.0 million for income taxes. | |||||||||||||||||
Income Taxes | |||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount of which the likelihood of realization is greater than 50%. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company records interest and penalties, if any, related to unrecognized tax benefits as a component of tax expense. | |||||||||||||||||
Share-Based Payment Awards | |||||||||||||||||
The Company recognizes in the statements of income the grant-date fair value of stock options and other equity based compensation, such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units, performance unit awards and stock appreciation rights (SARs), issued to employees and directors. | |||||||||||||||||
The grant-date fair value of stock options is determined using the Black-Scholes option pricing model. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of estimated forfeitures. The Company relies primarily upon historical experience to estimate expected forfeitures and recognizes compensation expense on a straight-line basis from the date of the grant. The Company issues new shares upon the respective grant, exercise or vesting of share-based payment awards, as applicable. | |||||||||||||||||
Cash-settled SARs awarded in share-based payment transactions are classified as liability awards; accordingly, the Company records these awards as a component of accrued expenses on its consolidated balance sheets. The fair value of each SAR is estimated using the Black-Scholes option pricing model and is remeasured at each reporting period until the award is settled. Changes in the fair value of the liability award are recorded as expense or income in the statements of income. | |||||||||||||||||
Performance unit awards are subject to either a performance-based or market-based vesting requirement. For performance-based vesting, the grant-date fair value of the award, based on fair value of the Company's common stock, is recognized over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved and compensation expense is periodically adjusted based on actual and expected performance. Compensation expense for performance unit awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. | |||||||||||||||||
Recent Accounting Pronouncements | |||||||||||||||||
In February 2013, the Financial Accounting Standards Board (FASB) issued amended standards that revised the reporting of reclassifications out of accumulated other comprehensive income (loss) and addressed certain matters from standards for reporting of other comprehensive income (loss) that were deferred pending additional consideration. The amendment requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, entities are required to present, either on the face of the statement where net income (loss) is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income (loss) by the respective line items of net income (loss) but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income (loss) in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income (loss), entities are required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail on these amounts. This guidance is effective prospectively for reporting periods beginning after December 15, 2012. The Company adopted this guidance in the first quarter of 2013, and such adoption did not have an impact on the Company’s results of operations or financial position, but did change the Company’s disclosures related to accumulated other comprehensive income (loss). | |||||||||||||||||
In July 2013, the FASB issued Accounting Standards Update (ASU) No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU No. 2013-11 requires presentation of an unrecognized tax benefit in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit would be presented in the financial statements as a liability and would not be combined with deferred tax assets. ASU No. 2013-11 is effective for financial statements issued for annual reporting periods beginning after December 15, 2013 and interim periods within those years. Adoption of the new requirements of ASU No. 2013-11 is not expected to have a material impact on the Company’s consolidated financial position or results of operations |
RESEARCH_AND_LICENSE_AGREEMENT
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN | 12 Months Ended | |
Dec. 31, 2013 | ||
Research and Development [Abstract] | ' | |
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN | ' | |
3 | RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN: | |
The Company funded OLED technology research at Princeton and, on a subcontractor basis, at USC for 10 years under a Research Agreement executed with Princeton in August 1997 (the 1997 Research Agreement). The principal investigator conducting work under the 1997 Research Agreement transferred to Michigan in January 2006. Following this transfer, the 1997 Research Agreement was allowed to expire on July 31, 2007. | ||
As a result of the transfer, the Company entered into a new Sponsored Research Agreement with USC to sponsor OLED technology research at USC and, on a subcontractor basis, Michigan. This new Sponsored Research Agreement (as amended, the 2006 Research Agreement) was effective as of May 1, 2006 and had an original term of three years. On May 1, 2009, the Company amended the 2006 Research Agreement to extend the term of the agreement for an additional four years. The 2006 Research Agreement superseded the 1997 Research Agreement with respect to all work being performed at USC and Michigan. Payments under the 2006 Research Agreement were made to USC on a quarterly basis as actual expenses were incurred. The Company incurred a total of $5.0 million in research and development expense for work performed under the 2006 Research Agreement during the extended term, which ended on April 30, 2013. | ||
Effective June 1, 2013, the Company amended the 2006 Research Agreement again to extend the term of the agreement for an additional four years. As of December 31, 2013, the Company is obligated to pay USC up to $7.9 million for work to be actually performed during the remaining extended term, which expires April 30, 2017. From June 1, 2013 through December 31, 2013, the Company incurred $670,000 in research and development expense for work performed under the newly amended 2006 Research Agreement. | ||
On October 9, 1997, the Company, Princeton and USC entered into an Amended License Agreement (as amended, the 1997 Amended License Agreement) under which Princeton and USC granted the Company worldwide, exclusive license rights, with rights to sublicense, to make, have made, use, lease and/or sell products and to practice processes based on patent applications and issued patents arising out of work performed by Princeton and USC under the 1997 Research Agreement. Under this 1997 Amended License Agreement, the Company is required to pay Princeton royalties for licensed products sold by the Company or its sublicensees. For licensed products sold by the Company, the Company is required to pay Princeton 3% of the net sales price of these products. For licensed products sold by the Company’s sublicensees, the Company is required to pay Princeton 3% of the revenues received by the Company from these sublicensees. These royalty rates are subject to renegotiation for products not reasonably conceivable as arising out of the 1997 Research Agreement if Princeton reasonably determines that the royalty rates payable with respect to these products are not fair and competitive. | ||
The Company is obligated, under the 1997 Amended License Agreement, to pay to Princeton minimum annual royalties. The minimum royalty payment is $100,000 per year. The Company recorded royalty expense in connection with this agreement of $3.2 million, $2.1 million and $1.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||
The Company also is required, under the 1997 Amended License Agreement, to use commercially reasonable efforts to bring the licensed OLED technology to market. However, this requirement is deemed satisfied if the Company invests a minimum of $800,000 per year in research, development, commercialization or patenting efforts respecting the patent rights licensed to the Company. | ||
In connection with entering into the 2006 Research Agreement, the Company amended the 1997 Amended License Agreement to include Michigan as a party to that agreement effective as of January 1, 2006. Under this amendment, Princeton, USC and Michigan have granted the Company a worldwide exclusive license, with rights to sublicense, to make, have made, use, lease and/or sell products and to practice processes based on patent applications and issued patents arising out of work performed under the 2006 Research Agreement. The financial terms of the 1997 Amended License Agreement were not impacted by this amendment. |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
PROPERTY AND EQUIPMENT | ' | |||||||
4 | PROPERTY AND EQUIPMENT: | |||||||
Property and equipment consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Land | $ | 820 | $ | 820 | ||||
Building and improvements | 15,605 | 11,652 | ||||||
Office and lab equipment | 20,055 | 19,056 | ||||||
Furniture and fixtures | 423 | 374 | ||||||
Construction-in-progress | 746 | 619 | ||||||
37,649 | 32,521 | |||||||
Less: Accumulated depreciation | (22,756 | ) | (20,713 | ) | ||||
Property and equipment, net | $ | 14,893 | $ | 11,808 | ||||
Depreciation expense was approximately $2.0 million, $2.0 million and $1.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. |
ACQUIRED_TECHNOLOGY
ACQUIRED TECHNOLOGY | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ||||||||
ACQUIRED TECHNOLOGY | ' | ||||||||
5 | ACQUIRED TECHNOLOGY: | ||||||||
Acquired technology consists of acquired license rights for patents and know-how obtained from PD-LD, Inc., Motorola and Fujifilm. These intangible assets consist of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
PD-LD, Inc. | $ | 1,481 | $ | 1,481 | |||||
Motorola | 15,909 | 15,909 | |||||||
Fujifilm | 109,462 | 109,102 | |||||||
126,852 | 126,492 | ||||||||
Less: Accumulated amortization | (32,841 | ) | (21,868 | ) | |||||
Acquired technology, net | $ | 94,011 | $ | 104,624 | |||||
Amortization expense for all intangible assets was $11.0 million, $4.9 million and $49,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
Motorola Patent Acquisition | |||||||||
In 2000, the Company entered into a royalty-bearing license agreement with Motorola whereby Motorola granted the Company perpetual license rights to what are now 74 issued U.S. patents relating to Motorola’s OLED technologies, together with foreign counterparts in various countries. These patents expire in the U.S. between 2014 and 2018. | |||||||||
On March 9, 2011, the Company purchased these patents from Motorola, including all existing and future claims and causes of action for any infringement of the patents, pursuant to a Patent Purchase Agreement. The Patent Purchase Agreement effectively terminated the Company’s license agreement with Motorola, including any obligation to make royalty payments to Motorola. | |||||||||
The technology acquired from Motorola had an assigned value of $440,000 as of March 9, 2011, which is being amortized over a period of 7.5 years. | |||||||||
Fujifilm Patent Acquisition | |||||||||
On July 23, 2012, the Company entered into a Patent Sale Agreement (the Agreement) with Fujifilm. Under the Agreement, Fujifilm sold more than 1,200 OLED-related patents and patent applications in exchange for a cash payment of $105.0 million. The Agreement contains customary representations and warranties and covenants, including respective covenants not to sue by both parties thereto. The Agreement permitted the Company to assign all of its rights and obligations under the Agreement to its affiliates, and the Company assigned, prior to the consummation of the transactions contemplated by the Agreement, its rights and obligations to UDC Ireland Limited (UDC Ireland), a wholly-owned subsidiary of the Company formed under the laws of the Republic of Ireland. The transactions contemplated by the Agreement were consummated on July 26, 2012. | |||||||||
The Company recorded the $105.0 million plus $4.1 million of costs as acquired technology which is being amortized over a period of 10 years. The total amortization expense for the years ended December 31, 2013 and 2012 associated with acquired technology is $11.0 million and $4.8 million, respectively, and is included in the patent costs and amortization of acquired technology expense line item on the consolidated statements of income. | |||||||||
Amortization expense related to acquired technology is currently expected to be as follows (in thousands): | |||||||||
Year | Projected Expense | ||||||||
2014 | $ | 10,999 | |||||||
2015 | 10,999 | ||||||||
2016 | 10,999 | ||||||||
2017 | 10,999 | ||||||||
2018 | 10,979 | ||||||||
Thereafter | 39,036 | ||||||||
$ | 94,011 | ||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCRUED EXPENSES | ' | ||||||||
6 | ACCRUED EXPENSES: | ||||||||
Accrued expenses consist of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Compensation | $ | 7,977 | $ | 5,196 | |||||
Royalties | 3,243 | 2,069 | |||||||
Consulting | 338 | 337 | |||||||
Professional fees | 458 | 1,302 | |||||||
Research and development agreements | 2,158 | 1,130 | |||||||
Inventory | 1,564 | — | |||||||
Other | 301 | 360 | |||||||
$ | 16,039 | $ | 10,394 | ||||||
EQUITY_AND_CASH_COMPENSATION_U
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS | 12 Months Ended | |
Dec. 31, 2013 | ||
Long-term Commitment (Excluding Unconditional Purchase Obligation) [Abstract] | ' | |
EQUITY AND CASH COMPENSATION UNDER THE PPG INDUSTRIES AGREEMENTS | ' | |
7 | EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS: | |
On October 1, 2000, the Company entered into a five-year Development and License Agreement (the Development Agreement) and a seven-year Supply Agreement (the Supply Agreement) with PPG Industries. Under the Development Agreement, a team of PPG Industries scientists and engineers assisted the Company in developing its proprietary OLED materials and supplied the Company with these materials for evaluation purposes. Under the Supply Agreement, PPG Industries supplied the Company with its proprietary OLED materials that were intended for resale to customers for commercial purposes. | ||
On July 29, 2005, the Company entered into an OLED Materials Supply and Service Agreement with PPG Industries (the OLED Materials Agreement). The OLED Materials Agreement superseded and replaced in their entireties the Development Agreement and Supply Agreement effective as of January 1, 2006, and extended the term of the Company’s relationship with PPG Industries through December 31, 2009. The term of the OLED Materials Agreement was subsequently extended through December 31, 2014. | ||
On September 22, 2011, the Company entered into an Amended and Restated OLED Materials Supply and Service Agreement with PPG Industries (the New OLED Materials Agreement), which replaced the original OLED Materials Agreement with PPG Industries effective as of October 1, 2011. The term of the New OLED Materials Agreement runs through December 31, 2015 and shall be automatically renewed for additional one year terms, unless terminated by the Company by providing prior notice of one year or terminated by PPG by providing prior notice of two years. The New OLED Materials Agreement contains provisions that are substantially similar to those of the original OLED Materials Agreement. Under the New OLED Materials Agreement, PPG Industries continues to assist the Company in developing its proprietary OLED materials and supplying the Company with those materials for evaluation purposes and for resale to its customers. | ||
Under the New OLED Materials Agreement, the Company compensates PPG Industries on a cost-plus basis for the services provided during each calendar quarter. The Company is required to pay for some of these services in all cash. Up to 50% of the remaining services are payable, at the Company’s sole discretion, in cash or shares of the Company’s common stock, with the balance payable in cash. The actual number of shares of common stock issuable to PPG Industries is determined based on the average closing price for the Company’s common stock during a specified number of days prior to the end of each calendar half-year period ending on March 31 and September 30. If, however, this average closing price is less than $20.00, the Company is required to compensate PPG Industries in cash. | ||
The Company is also to reimburse PPG Industries for raw materials used for research and development. The Company records the purchases of these raw materials as a current asset until such materials are used for research and development efforts. | ||
The Company issued 181 shares of the Company’s common stock to PPG Industries as consideration for services provided by PPG Industries during the year ended December 31, 2011. For these shares, the Company recorded expense of $9,000 for the year ended December 31, 2011. No shares were issued for services to PPG for the years ended December 31, 2013 and 2012. | ||
The Company recorded expense of $7.5 million, $6.2 million and $3.5 million for the years ended December 31, 2013, 2012 and 2011, respectively, in relation to the cash portion of the reimbursement of expenses and work performed by PPG Industries, excluding amounts paid for commercial chemicals. |
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended | |
Dec. 31, 2013 | ||
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ' | |
PREFERRED STOCK | ' | |
8 | PREFERRED STOCK: | |
The Company’s Articles of Incorporation authorize it to issue up to 5,000,000 shares of preferred stock with designations, rights and preferences determined from time-to-time by the Company’s Board of Directors. Accordingly, the Company’s Board of Directors is empowered, without shareholder approval, to issue preferred stock with dividend, liquidation, conversion, voting or other rights superior to those of shareholders of the Company’s common stock. | ||
In 1995, the Company issued 200,000 shares of Series A Nonconvertible Preferred Stock (Series A) to American Biomimetics Corporation (ABC) pursuant to a certain Technology Transfer Agreement between the Company and ABC. The Series A shares have a liquidation value of $7.50 per share. Series A shareholders, as a single class, have the right to elect two members of the Company’s Board of Directors. This right has never been exercised. Holders of the Series A shares are entitled to one vote per share on matters which shareholders are generally entitled to vote. The Series A shareholders are not entitled to any dividends. |
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | |
Dec. 31, 2013 | ||
Equity [Abstract] | ' | |
SHAREHOLDERS EQUITY | ' | |
9 | SHAREHOLDERS’ EQUITY: | |
Stock Repurchase Program | ||
On November 14, 2012, the Company's Board of Directors approved a stock repurchase program authorizing the Company to purchase shares of its common stock up to a total purchase price of $50.0 million over the subsequent 12 months. During the years ended December 31, 2013 and 2012, the Company purchased 195,599 and 205,902 shares, respectively, at a cost of approximately $5.5 million and $5.2 million, respectively. The repurchase program ended during the quarter ended December 31, 2013. | ||
Public Offering | ||
In March 2011, the Company sold 5,750,000 shares of its Common Stock at $46.00 per share in a registered underwritten public offering. The offering resulted in proceeds to the Company of $249.6 million, which was net of $14.9 million in underwriting discounts and commissions and other costs associated with completion of the offering. | ||
Warrants to Purchase Common Stock | ||
During the year ended December 31, 2011, warrants to purchase 586,972 shares of common stock were exercised, resulting in proceeds to the Company of $7.4 million. As of December 31, 2013, 2012 and 2011, the Company had no warrants to purchase shares of the Company’s common stock outstanding. | ||
Scientific Advisory Board and Employee Awards | ||
In March 2013 and 2012 and in January 2011, respectively, the Company granted a total of 22,568, 16,866 and 59,472 shares of fully vested common stock to employees and non-employee members of the Scientific Advisory Board for services performed in 2012, 2011 and 2010, respectively. The fair value of the shares issued was $435,000, $376,000 and $1.8 million, respectively, for employees and $300,000, $300,000 and $300,000, respectively, for non-employee members of the Scientific Advisory Board, which amounts were accrued at December 31, 2012, 2011 and 2010, respectively. In connection with the issuance of these grants, 4,672, 3,070 and 18,792 shares, respectively, with fair values of $154,000, $124,000 and $655,000, respectively, were withheld in satisfaction of employee tax withholding obligations in 2013, 2012 and 2011, respectively. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Notes) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||
10 | ACCUMULATED OTHER COMPREHENSIVE LOSS: | ||||||||||||||
Amounts related to the changes in accumulated other comprehensive loss were as follows (in thousands): | |||||||||||||||
Unrealized gain (loss) on marketable securities | Net unrealized loss on retirement plan (2) | Total | Affected line items in the consolidated statement of income | ||||||||||||
Balance January 1, 2011, net of tax | $ | 14 | $ | (6,052 | ) | $ | (6,038 | ) | |||||||
Other comprehensive loss before reclassification | (1 | ) | (418 | ) | (419 | ) | |||||||||
Reclassification to net income (1) | — | 600 | 600 | Selling, general and administrative and research and development | |||||||||||
Change during period | (1 | ) | 182 | 181 | |||||||||||
Balance December 31, 2011, net of tax | $ | 13 | $ | (5,870 | ) | $ | (5,857 | ) | |||||||
Other comprehensive loss before reclassification | (31 | ) | (442 | ) | (473 | ) | |||||||||
Reclassification to net income (1) | — | 628 | 628 | Selling, general and administrative and research and development | |||||||||||
Change during period | (31 | ) | 186 | 155 | |||||||||||
Balance December 31, 2012, net of tax | $ | (18 | ) | $ | (5,684 | ) | $ | (5,702 | ) | ||||||
Other comprehensive (loss) income before reclassification | (6 | ) | 901 | 895 | |||||||||||
Reclassification to net income (1) | — | 439 | 439 | Selling, general and administrative and research and development | |||||||||||
Change during period | (6 | ) | 1,340 | 1,334 | |||||||||||
Balance December 31, 2013, net of tax | $ | (24 | ) | $ | (4,344 | ) | $ | (4,368 | ) | ||||||
_______________________________________________ | |||||||||||||||
(1) The Company reclassified amortization of prior service cost and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income in the amounts of $439,000, $628,000 and $600,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||
(2) Refer to Note 12: Supplemental Executive Retirement Plan. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK-BASED COMPENSATION | ' | ||||||||||||
11 | STOCK-BASED COMPENSATION: | ||||||||||||
The Company recognizes in the statements of income the grant-date fair value of stock options and other equity based compensation, such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units, performance unit awards and SARs, issued to employees and directors. | |||||||||||||
The grant-date fair value of stock options is determined using the Black-Scholes option pricing model. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of estimated forfeitures. The Company relies primarily upon historical experience to estimate expected forfeitures and recognizes compensation expense on a straight-line basis from the date of the grant. The Company issues new shares upon the respective grant, exercise or vesting of share-based payment awards, as applicable. | |||||||||||||
Cash-settled SARs awarded in share-based payment transactions are classified as liability awards; accordingly, the Company records these awards as a component of accrued expenses on its consolidated balance sheets. The fair value of each SAR is estimated using the Black-Scholes option pricing model and is remeasured at each reporting period until the award is settled. Changes in the fair value of the liability award are recorded as expense or income in the statements of income. | |||||||||||||
Performance unit awards are subject to either a performance-based or market-based vesting requirement. For performance-based vesting, the grant-date fair value of the award, based on fair value of the Company's common stock, is recognized over the service period, based on an assessment of the likelihood that the applicable performance goals will be achieved and compensation expense is periodically adjusted based on actual and expected performance. Compensation expense for performance unit awards with market-based vesting is calculated based on the estimated fair value as of the grant date utilizing a Monte Carlo simulation model and is recognized over the service period on a straight-line basis. | |||||||||||||
Equity Compensation Plan | |||||||||||||
In 1995, the Board of Directors of the Company adopted a stock option plan, which was amended and restated in 2003 and is now called the Equity Compensation Plan. The Equity Compensation Plan provides for the granting of incentive and nonqualified stock options, shares of common stock, stock appreciation rights and performance units to employees, directors and consultants of the Company. Stock options are exercisable over periods determined by the Compensation Committee, but for no longer than 10 years from the grant date. Through December 31, 2013, the Company’s shareholders have approved increases in the number of shares reserved for issuance under the Equity Compensation Plan to 8,000,000, and have extended the term of the plan through 2015. At December 31, 2013, there were 1,301,170 shares that remained available to be granted under the Equity Compensation Plan. | |||||||||||||
Stock Options | |||||||||||||
The following table summarizes the stock option activity during the year ended December 31, 2013 for all grants under the Equity Compensation Plan: | |||||||||||||
Options | Weighted | ||||||||||||
Average | |||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Outstanding at January 1, 2013 | 828,230 | $ | 11.58 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (252,081 | ) | 14.22 | ||||||||||
Forfeited | — | — | |||||||||||
Cancelled | (5,666 | ) | 7.39 | ||||||||||
Outstanding at December 31, 2013 | 570,483 | 10.43 | |||||||||||
Vested and expected to vest | 570,483 | 10.43 | |||||||||||
Exercisable at December 31, 2013 | 570,483 | $ | 10.43 | ||||||||||
No stock options were granted during the years ended December 31, 2013, 2012 or 2011. | |||||||||||||
A summary of stock options outstanding and exercisable by price range at December 31, 2013 is as follows (in thousands, except share and per share data): | |||||||||||||
Outstanding and Exercisable | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
Options | Average | Average | Intrinsic | ||||||||||
Outstanding | Remaining | Exercise | |||||||||||
at December 31, | Contractual | ||||||||||||
Exercise Price | 2013 | Life (Years) | Price | Value (A) | |||||||||
$5.91-$9.04 | 197,430 | 1 | $ | 8.15 | $ | 5,176 | |||||||
$9.43-$14.16 | 294,936 | 2 | $ | 10.55 | $ | 7,023 | |||||||
$14.39-$18.34 | 78,117 | 1.4 | $ | 15.77 | $ | 1,452 | |||||||
Total | 570,483 | 1.6 | $ | 10.43 | $ | 13,651 | |||||||
_______________________________________________ | |||||||||||||
(A) The difference between the stock option’s exercise price and the closing price of the common stock at December 31, 2013. | |||||||||||||
The total intrinsic value of stock awards exercised during the years ended December 31, 2013, 2012 and 2011 was $4.9 million, $7.5 million and $25.0 million, respectively. There was no compensation expense recognized for the years ended December 31, 2013, 2012, or 2011. | |||||||||||||
During the years ended December 31, 2013, 2012 and 2011, 20,768, 5,878 and 32,800 shares of common stock, valued at $1.0 million, $245,000 and $1.3 million, respectively, were tendered to net share settle the exercise of options. In connection with the exercise of options during the years ended December 31, 2013, 2012 and 2011, 7,599, 15,066 and 13,031 shares, with fair values of $274,000, $628,000 and $438,000, respectively, were withheld in satisfaction of tax withholding obligations. | |||||||||||||
Stock Awards | |||||||||||||
The following table summarizes the stock activity related to restricted stock awards and units and fully vested share based payment awards: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Unvested, January 1, 2013 | 620,971 | $ | 24 | ||||||||||
Granted | 168,182 | 32.76 | |||||||||||
Vested | (261,257 | ) | 23.46 | ||||||||||
Forfeited | (1,300 | ) | 27.7 | ||||||||||
Unvested, December 31, 2013 | 526,596 | $ | 27.05 | ||||||||||
The weighted average grant-date fair value of restricted stock awards and units and fully vested share based payment awards granted was $32.76, $37.95 and $35.21 during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Restricted Stock Awards and Units | |||||||||||||
The Company has issued restricted stock awards and units to employees and non-employee members of the Scientific Advisory Board with vesting terms of one to six years. The fair value is equal to the market price of the Company’s common stock on the date of grant for awards granted to employees and equal to the market price at the end of the reporting period for unvested non-employee awards or upon the date of vesting for vested non-employee awards. Expense for restricted stock awards and units is amortized ratably over the vesting period for the awards issued to employees and using a graded vesting method for the awards issued to non-employee members of the Scientific Advisory Board. | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011, the Company recorded, as compensation charges related to all restricted stock awards and units, selling, general and administrative expense of $3.8 million, $2.9 million and $3.0 million, respectively, and research and development expense of $1.9 million, $1.3 million and $1.7 million, respectively. In connection with the vesting of restricted stock awards and units during the years ended December 31, 2013, 2012 and 2011, respectively, 89,635, 90,929 and 83,089 shares, with aggregate fair values of $2.8 million, $3.5 million and $3.4 million, respectively, were withheld in satisfaction of tax withholding obligations. | |||||||||||||
Fully Vested Stock Grants | |||||||||||||
For the years ended December 31, 2013, 2012 and 2011, respectively, the Company granted to employees and non-employees 123, 1,755 and 3,196 shares of restricted stock, which shares fully vested as of the date of grant. The Company recorded research and development expense of $3,000, $67,000 and $129,000 for the years ended December 31, 2013, 2012 and 2011, respectively, for the fair value of these awards. | |||||||||||||
Board of Directors Compensation | |||||||||||||
The Company has granted restricted stock units to non-employee members of the Board of Directors with vesting terms of approximately one year. The fair value is equal to the market price of the Company's common stock on the date of grant. The restricted stock units are issued and expense is recognized ratably over the vesting period. For the years ended December 31, 2013, 2012 and 2011, the Company recorded, compensation charges for services performed, related to all restricted stock units granted to non-employee members of the Board of Directors, selling, general and administrative expense of $525,000, $532,000 and $816,000, respectively. Restricted stock issued during 2013, 2012, and 2011 was 20,000, 20,000, and 20,000 shares. | |||||||||||||
Performance Unit Awards | |||||||||||||
During the year ended December 31, 2013, the Company granted 35,776 performance units, of which 17,888 are subject to a performance-based vesting requirement and 17,888 are subject to a market-based vesting requirement and will vest over the terms described below. Total fair value of the performance unit awards granted was $1.4 million on the date of grant. | |||||||||||||
Each performance unit award is subject to both a performance-vesting requirement (either performance-based or market-based) and a service-vesting requirement. | |||||||||||||
The performance-based vesting requirement is tied to the Company's cumulative revenue growth compared to the cumulative revenue growth of companies comprising the Nasdaq Electronics Components Index, as measured over a two-year performance period beginning January 1, 2013 and ending December 31, 2014. The market-based vesting requirement is tied to the Company's total shareholder return relative to the total shareholder return of companies comprising the Nasdaq Electronics Components Index, as measured over a two-year performance period beginning January 1, 2013 and ending December 31, 2014. | |||||||||||||
The maximum number of performance units that may vest based on performance is two times the shares granted. Further, if the Company's total shareholder return is negative, the performance units may not vest above the shares granted. | |||||||||||||
The following table summarizes the activity related to performance unit awards: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Unvested, January 1, 2013 | — | $ | — | ||||||||||
Granted | 35,776 | 47.78 | |||||||||||
Vested | — | — | |||||||||||
Cancelled | — | — | |||||||||||
Unvested, December 31, 2013 | 35,776 | $ | 47.78 | ||||||||||
For the year ended December 31, 2013, the Company recorded general and administrative expense of $453,000 and research and development expense of $137,000 related to performance units. | |||||||||||||
Stock Appreciation Rights | |||||||||||||
During the year ended December 31, 2011, the Company granted 24,000 cash-settled SARs to certain executive officers. The SARs represented the right to receive, for each SAR, a cash payment equal to the amount, if any, by which the fair market value of a share of the common stock of the Company on the vesting date exceeded the base price of the SAR award. The SARs vested on the first anniversary of the date of grant, provided that the grantee was still an employee of the Company on the applicable vesting date. There was no SARs activity during the years ended December 31, 2013 or 2012. | |||||||||||||
The fair value of the SARs was $1.93 per SAR at December 31, 2011, estimated using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model considers assumptions related to volatility, risk-free interest rates, dividend yields and remaining life. Expected volatility was based on the Company’s historical daily stock price volatility. The risk-free rate was based on average U.S. Treasury security yields in the quarter of the grant. The dividend yield was based on historical information. SARs are liability-classified awards that must be remeasured at fair value at the end of each reporting period, and cumulative compensation cost recognized to date must be adjusted each reporting period for changes in fair value prorated for the portion of the requisite service period rendered. The following table provides the assumptions used in determining the fair value of the SARs at December 31, 2011: | |||||||||||||
Dividend yield rate | — | ||||||||||||
Expected volatility | 23.4 | % | |||||||||||
Risk-free interest rates | 0.02 | % | |||||||||||
Expected life | 0.02 years | ||||||||||||
Based on the fair value of the SARs, as of December 31, 2011, the Company recorded selling general and administrative expense of $13,000 and research and development expense of $32,000 for the year ended December 31, 2011. During the year ended December 31, 2012, all SARs were settled, resulting in cash payments of $49,000. The Company recorded $1,000 to general and administrative expense, and $3,000 to research and development expense, for the year ended December 31, 2012, related to the SARs. No such grants were made in 2012 or 2013. | |||||||||||||
Employee Stock Purchase Plan | |||||||||||||
On April 7, 2009, the Board of Directors of the Company adopted an Employee Stock Purchase Plan (ESPP). The ESPP was approved by the Company’s shareholders and became effective on June 25, 2009. The Company has reserved 1,000,000 shares of common stock for issuance under the ESPP. Unless sooner terminated by the Board of Directors, the ESPP will expire when all reserved shares have been issued. | |||||||||||||
Eligible employees may elect to contribute to the ESPP through payroll deductions during consecutive three-month purchase periods, the first of which began on July 1, 2009. Each employee who elects to participate will be deemed to have been granted an option to purchase shares of the Company’s common stock on the first day of the purchase period. Unless the employee opts out during the purchase period, the option will automatically be exercised on the last day of the period, which is the purchase date, based on the employee’s accumulated contributions to the ESPP. The purchase price will equal 85% of the lesser of the price per share of common stock on the first day of the period or the last day of the period. | |||||||||||||
Employees may allocate up to 10% of their base compensation to purchase shares of common stock under the ESPP; however, each employee may purchase no more than 12,500 shares on a given purchase date, and no employee may purchase more than $25,000 of common stock under the ESPP during a given calendar year. | |||||||||||||
For years ended December 31, 2013, 2012 and 2011, the Company issued 14,366, 11,667 and 10,531 shares of its common stock under the ESPP, resulting in proceeds of $343,000, $321,000 and $307,000, respectively. For the years ended December 31, 2013, 2012 and 2011, the Company recorded charges of $36,000, $26,000 and $31,000, respectively, to selling, general and administrative expense and $71,000, $78,000 and $76,000, respectively, to research and development expense, related to the ESPP equal to the amount of the discount and the value of the look-back feature. |
SUPPLEMENTAL_EXECUTIVE_RETIREM
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ||||||||||||
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN | ' | ||||||||||||
12 | SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN: | ||||||||||||
On March 18, 2010, the Compensation Committee and the Board of Directors of the Company approved and adopted the Universal Display Corporation Supplemental Executive Retirement Plan (SERP), effective as of April 1, 2010. The purpose of the SERP, which is unfunded, is to provide certain of the Company’s executive officers with supplemental pension benefits following a cessation of their employment. As of December 31, 2013 there were six participants in the SERP. | |||||||||||||
The SERP benefit is based on a percentage of the participant’s annual base salary. For this purpose, annual base salary means 12 times the highest monthly base salary paid or payable to the participant during the 24-month period immediately preceding the participant’s date of termination of employment, or, if required, the date of a change in control of the Company. | |||||||||||||
Under the SERP, if a participant resigns or is terminated without cause at or after age 65 and with at least 20 years of service, he or she will be eligible to receive a SERP benefit. The benefit is based on a percentage of the participant’s annual base salary for the life of the participant. This percentage is 50%, 25% or 15%, depending on the participant’s benefit class. All current participants in the SERP are in the 50% benefit class. | |||||||||||||
If a participant resigns at or after age 65 and with at least 15 years of service, he or she will be eligible to receive a prorated SERP benefit. If a participant is terminated without cause or on account of a disability after at least 15 years of service, he or she will be eligible to receive a prorated SERP benefit regardless of age. The prorated benefit in either case would be based on the participant’s number of years of service (up to 20), divided by 20. In the event a participant is terminated for cause, his or her SERP benefit and any future benefit payments are subject to immediate forfeiture. | |||||||||||||
The SERP benefit is payable in installments over 10 years, beginning at the later of age 65 or the date of the participant’s separation from service. Payments are based on a present value calculation of the benefit amount for the actuarial remaining life expectancy of the participant. This calculation is made as of the date benefit payments are to begin (later of age 65 or separation from service). If the participant dies after reaching age 65, any future or remaining benefit payments are made to the participant’s beneficiary or estate. If the participant dies before reaching age 65, the benefit is forfeited. | |||||||||||||
In the event of a change in control of the Company, each participant will become immediately vested in his or her SERP benefit. Unless the participant’s benefit has already fully vested, if the participant has less than 20 years of service at the time of the change in control, he or she will receive a prorated benefit based on his or her number of years of service (up to 20), divided by 20. If the change in control qualifies as a “change in control event” for purposes of Section 409A of the Internal Revenue Code, then each participant (including former employees who are entitled to SERP benefits) will receive a lump sum cash payment equal to the present value of the benefit immediately upon the change in control. | |||||||||||||
Certain of the Company’s executive officers are designated as special participants under the SERP. If these participants resign or are terminated without cause after 20 years of service, or at or after age 65 and with at least 15 years of service, they will be eligible to receive a SERP benefit. If they are terminated without cause or on account of a disability, they will be eligible to receive a prorated SERP benefit regardless of age. The prorated benefit would be based on the participant’s number of years of service (up to 20), divided by 20. | |||||||||||||
The SERP benefit for special participants is based on 50% of their annual base salary for their life and the life of their surviving spouse, if any. Payments are based on a present value calculation of the benefit amount for the actuarial remaining life expectancies of the participant and their surviving spouse, if any. If they die before reaching age 65, the benefit is not forfeited if the surviving spouse, if any, lives until the participant would have reached age 65. If their spouse also dies before the participant would have reached age 65, the benefit is forfeited. | |||||||||||||
The Company records amounts relating to the SERP based on calculations that incorporate various actuarial and other assumptions, including discount rates, rate of compensation increases, retirement dates, and life expectancies. The net periodic costs are recognized as employees render the services necessary to earn the SERP benefits. | |||||||||||||
In connection with the initiation of the SERP, the Company recorded cost related to prior service of $5.6 million as accumulated other comprehensive loss. The prior service cost is being amortized as a component of net periodic pension cost over the average of the remaining service period of the employees expected to receive benefits under the plan. The prior service cost expected to be amortized for the year ending December 31, 2014 is $584,000. | |||||||||||||
Information relating to the Company’s plan is as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation, beginning of year | $ | 9,837 | $ | 8,423 | |||||||||
Service cost | 646 | 601 | |||||||||||
Interest cost | 343 | 371 | |||||||||||
Actuarial (gain) loss | (1,390 | ) | 442 | ||||||||||
Benefit obligation, end of year | 9,436 | 9,837 | |||||||||||
Fair value of plan assets | — | — | |||||||||||
Unfunded status of the plan, end of year | $ | 9,436 | $ | 9,837 | |||||||||
Current liability | — | — | |||||||||||
Noncurrent liability | $ | 9,436 | $ | 9,837 | |||||||||
The accumulated benefit obligation for the plan was approximately $8.0 million as of December 31, 2013 and 2012, respectively. | |||||||||||||
The components of net periodic pension cost were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Service cost | $ | 646 | $ | 601 | $ | 542 | |||||||
Interest cost | 343 | 371 | 385 | ||||||||||
Amortization of prior service cost | 584 | 584 | 584 | ||||||||||
Amortization of loss | 92 | 44 | 16 | ||||||||||
Total net periodic benefit cost | $ | 1,665 | $ | 1,600 | $ | 1,527 | |||||||
The measurement date is the Company’s fiscal year end. The net periodic pension cost is based on assumptions determined at the prior year end measurement date. | |||||||||||||
Assumptions used to determine the year end benefit obligation were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Discount rate | 4.51% | 3.49% | |||||||||||
Rate of compensation increases | 3.50% | 3.50% | |||||||||||
Assumptions used to determine the net periodic pension cost were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Discount rate | 3.49% | 4.44% | 5.44% | ||||||||||
Rate of compensation increases | 3.50% | 3.50% | 3.50% | ||||||||||
Actuarial gains and losses are amortized from accumulated other comprehensive loss into net periodic pension cost over future years based upon the average remaining service period of active plan participants, when the accumulation of such gains or losses exceeds 10% of the year end benefit obligation. The cost or benefit of plan changes that increase or decrease benefits for prior employee service (prior service cost [credit]) is included in the Company’s results of operations on a straight-line basis over the average remaining service period of active plan participants. | |||||||||||||
The estimated amounts to be amortized from accumulated other comprehensive loss into the net periodic pension cost in 2014 are as follows (in thousands): | |||||||||||||
Amortization of prior service cost | $ | 584 | |||||||||||
Amortization of gain/loss | — | ||||||||||||
Total | $ | 584 | |||||||||||
Benefit payments, which reflect estimated future service, are currently expected to be paid as follows (in thousands): | |||||||||||||
Year | Projected Benefits | ||||||||||||
2014 | $ | — | |||||||||||
2015 | 336 | ||||||||||||
2016 | 403 | ||||||||||||
2017 | 816 | ||||||||||||
2018 | 853 | ||||||||||||
2019-2023 | 5,256 | ||||||||||||
Thereafter | 14,438 | ||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |
Dec. 31, 2013 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
COMMITMENTS AND CONTINGENCIES | ' | |
13 | COMMITMENTS AND CONTINGENCIES: | |
Commitments | ||
Under the 2006 Research Agreement with USC, the Company is obligated to make certain payments to USC based on work performed by USC under that agreement, and by Michigan under its subcontractor agreement with USC. See Note 3 for further explanation. | ||
Under the terms of the 1997 Amended License Agreement, the Company is required to make minimum royalty payments to Princeton. See Note 3 for further explanation. | ||
The Company has agreements with six executive officers which provide for certain cash and other benefits upon termination of employment of the officer in connection with a change in control of the Company. Each executive is entitled to a lump-sum cash payment equal to two times the sum of the average annual base salary and bonus of the officer and immediate vesting of all stock options and other equity awards that may be outstanding at the date of the change in control, among other items. | ||
Patent Related Challenges and Oppositions | ||
Each major jurisdiction in the world that issues patents provides both third parties and applicants an opportunity to seek a further review of an issued patent. The specific process for requesting and considering such reviews are specific to the jurisdiction that issued the patent in question, and generally do not include claims for monetary damages or specific claims of infringement. The conclusions made by the reviewing administrative bodies tend to be appealable and generally are limited in scope and applicability to the specific claims and jurisdiction in question. | ||
The Company believes that opposition proceedings are frequently commenced in the ordinary course of business by third parties who may believe that a specific patent or claims in the patent do not comply with the technical or legal requirements of the specific jurisdiction in which the patent was issued. The Company views these proceedings as reflective of its goal of obtaining the broadest legally permissible patent coverage permitted in each jurisdiction. Once a proceeding is initiated, the issued patent continues to be presumed valid until the jurisdiction’s applicable administrative body issues a final non-appealable decision. Depending on the jurisdiction, the outcome of these proceedings could include affirmation, denial or modification of some or all of the originally issued claims. The Company believes that as its portfolio increases in size, so will the number of these proceedings. | ||
Below are summaries of proceedings that have been commenced against certain issued patents that are either exclusively licensed to the Company or which are now assigned to the Company. The Company does not believe that the confirmation, loss or modification of the Company's rights in any individual claim or set of claims that are the subject of the following legal proceedings would have a material impact on the Company's material sales or licensing business or on the Company's consolidated financial statements, including its consolidated statements of income, as a whole. However, as noted within the descriptions, some of the following proceedings involve issued patents that relate to the Company's fundamental phosphorescent OLED technologies and the Company intends to vigorously defend against claims that, in the Company's opinion, seek to restrict or reduce the scope of the originally issued claim, which may require the expenditure of significant amounts of the Company's resources. In certain circumstances, when permitted, the Company may also utilize the proceedings to request modification of the claims to better distinguish the patented invention from any newly identified prior art and/or improve the claim scope of the patent relative to commercially important categories of the invention. The entries marked with an "*" relate to the Company's UniversalPHOLED phosphorescent OLED technology, some of which may be commercialized by the Company. | ||
Opposition to European Patent No. 0946958 | ||
On December 8, 2006, Cambridge Display Technology Ltd. (CDT), which was acquired in 2007 by Sumitomo Chemical Company (Sumitomo), filed a Notice of Opposition to European Patent No. 0946958 (EP '958 patent), which relates to the Company's FOLED™ flexible OLED technology. The EP '958 patent, which was issued on March 8, 2006, is a European counterpart patent to U.S. patents 5,844,363; 6,602,540; 6,888,306; and 7,247,073. These patents are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
On November 26, 2009, the European Patent Office (the EPO) issued its written decision to reject the opposition and to maintain the patent as granted. On April 12, 2010, CDT filed an appeal to the EPO panel decision. On August 19, 2010, the Company filed a timely response to the EPO panel decision. | ||
At this time, based on its current knowledge, the Company believes that the EPO panel decision will be upheld on appeal. However, the Company cannot make any assurances of this result. | ||
Opposition to European Patent No. 1449238* | ||
In 2007, Sumation Company Limited (Sumation), a joint venture between Sumitomo and CDT, Merck Patent GmbH, of Darmstadt, Germany, and BASF Aktiengesellschaft, of Mannheim, Germany, filed Notices of Opposition to European Patent No 1449238 (EP '238 patent). The EP '238 patent, which was issued on November 2, 2006, is a European counterpart patent, in part, to U.S. patents 6,830,828; 6,902,830; 7,001,536; 7,291,406; 7,537,844; and 7,883,787; and to pending U.S. patent applications 13/009,001, filed on January 19, 2011, and 13/205,290, filed on August 9, 2011 (hereinafter the “U.S. '828 Patent Family”). They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
On January 13, 2012, the EPO issued a decision to maintain the patent with claims directed to OLEDs comprising phosphorescent organometallic iridium compounds. | ||
All the parties appealed the EPO's panel decision. An Oral Hearing was held in the EPO on November 22, 2013, in which the EPO Appellate Board reversed the decision of the prior panel and revoked the patent in its entirety. The Company is currently reviewing the written decision which it received on February 21, 2014 to evaluate whether to proceed with an appeal of the decision to the Enlarged Board of Appeals, or simply continue prosecuting claims directed to the invention in additional related pending divisional applications in the EPO which claim priority from the same original priority application. | ||
Opposition to European Patent No. 1394870* | ||
On April 20, 2010, Merck Patent GmbH; BASF Schweitz AG of Basel, Switzerland; Osram GmbH of Munich, Germany; Siemens Aktiengesellschaft of Munich, Germany; and Koninklijke Philips Electronics N.V., of Eindhoven, The Netherlands filed Notices of Opposition to European Patent No. 1394870 (the EP '870 patent). The EP '870 patent, which was issued on July 22, 2009, is a European counterpart patent, in part, to U.S. patents 6,303,238; 6,579,632; 6,872,477; 7,279,235; 7,279,237; 7,488,542; 7,563,519; and 7,901,795; and to pending U.S. patent application 13/035,051, filed on February 25, 2011 (hereinafter the “U.S. '238 Patent Family”). They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
The matter has been briefed and an Oral hearing has been scheduled by the EPO in the second quarter of 2014. | ||
At this time, based on the Company's current knowledge, the Company believes there is a substantial likelihood that the patent being challenged will be declared valid and that all or a significant portion of the Company's claims will be upheld. However, the Company cannot make any assurances of this result. | ||
Invalidation Trials in Japan for Japan Patent Nos. 4357781 and 4358168* | ||
On May 24, 2010, the Company received Notices of Invalidation Trials against Japan Patent Nos. 4357781 (the JP '781 patent) and 4358168 (the JP '168 patent), which were both issued on August 14, 2009. The requests were filed by Semiconductor Energy Laboratory Co., Ltd. (SEL). The JP '781 and JP '168 patents are Japanese counterpart patents, in part, to the above-noted U.S. '828 Patent Family. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
On March 31, 2011, the Company learned that the Japanese Patent Office (JPO) had issued decisions finding all claims in the JP '781 and JP '168 patents invalid. | ||
Both parties appealed this matter to the Japanese IP High Court. On November 7, 2012, the Company was notified that the Japanese IP High Court had reversed the JPO's finding of invalidity and remanded the case back to the JPO for further consideration. | ||
In a decision reported to the Company on April 15, 2013, all claims in the Company's JP '781 and JP '168 patents were upheld as valid by the JPO. The Company's opponent appealed this decision. | ||
At this time, based on the Company's current knowledge, the Company believes that the claims on the patents should be upheld. However, the Company cannot make any assurances of this result. | ||
Invalidation Trial in Japan for Japan Patent No. 4511024* | ||
On June 16, 2011, the Company learned that a Request for an Invalidation Trial was filed in Japan for its Japanese Patent No. JP-4511024 (the JP '024 patent), which issued on May 14, 2010. The Request was filed by SEL, the same opponent as in the above-noted Japanese Invalidation Trials for the JP '781 and JP '168 patents. The JP '024 patent is a counterpart patent, in part, to the U.S. '238 Patent Family, which relate to the EP '870 patent, which is subject to one of the above-noted European oppositions and which relates to the Company's UniversalPHOLED phosphorescent OLED technology. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
On May 10, 2012, the Company learned that the JPO issued a decision upholding the validity of certain claimed inventions in the JP '024 Patent but invalidating the broadest claims in the patent. The Company appealed the JPO’s decision to the Japanese IP High Court. On October 31, 2013, the Japanese IP High Court ruled that the prior art references relied on by the JPO did not support the JPO’s findings, reversed the JPO’s decision with respect to the previously invalidated broad claims in the JP ‘024 patent and remanded the matter back to the JPO for further consideration consistent with its decision. | ||
At this time, based on its current knowledge, the Company believes that the patent being challenged should be declared valid and that all or a significant portion of the Company's claims should be upheld. However, the Company cannot make any assurances of this result. | ||
Opposition to European Patent No. 1252803* | ||
On July 12 and 13, 2011, Sumitomo, Merck Patent GmbH and BASF SE, of Ludwigshaven, Germany filed oppositions to the Company's European Patent No. 1252803 (the EP '803 patent). The EP '803 patent, which was issued on October 13, 2010, is a European counterpart patent, in part, to the U.S. '828 Patent Family. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
On December 7, 2012 the EPO rendered a decision at an Oral Hearing wherein it upheld the broadest claim of the granted patent. All three opponents filed an appeal. | ||
At this time, based on its current knowledge, the Company believes there is a substantial likelihood that the patent being challenged will be declared valid and that all or a significant portion of its claims will be further upheld on appeal. However, the Company cannot make any assurances of this result. | ||
Opposition to European Patent No. 1390962 | ||
On November 16, 2011, Osram AG and BASF SE each filed a Notice of Opposition to European Patent No. 1390962 (EP '962 patent), which relates to the Company's white phosphorescent OLED technology. The EP '962 patent, which was issued on February 16, 2011, is a European counterpart patent to U.S. patents 7,009,338 and 7,285,907. They are exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
The EPO combined the oppositions into a single opposition proceeding. The Company expects the EPO to schedule a hearing on this matter in the first half of 2014. | ||
At this time, based on its current knowledge, the Company believes there is a substantial likelihood that the patent being challenged will be declared valid, and that all or a significant portion of the Company's claims will be upheld. However, the Company cannot make any assurances of this result. | ||
Opposition to European Patent No. 1933395* | ||
On February 24 and 27, 2012, Sumitomo, Merck Patent GmbH and BASF SE filed oppositions to the Company's European Patent No. 1933395 (the EP '395 patent). The EP '395 patent is a counterpart patent to the above-noted JP '168 patent, and, in part, to the U.S. '828 Patent Family. This patent is exclusively licensed to the Company by Princeton, and the Company is required to pay all legal costs and fees associated with this proceeding. | ||
At an Oral Hearing on October 14, 2013, the EPO panel issued a decision that affirmed the basic invention and broad patent coverage in the EP '395 patent, but narrowed the scope of the original claims. | ||
The Company intends to appeal the ruling to reinstate a broader set of claims. This patent, as originally granted by the EPO, would be deemed valid during the pendency of an appeals process. | ||
In addition to the above proceedings, from time to time, the Company may have other proceedings that are pending which relate to patents the Company acquired as part of the Fuji Patent acquisition or which to relate to technologies that are not currently widely utilized in the marketplace. |
CONCENTRATION_OF_RISK
CONCENTRATION OF RISK | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||||
CONCENTRATION OF RISK | ' | ||||||||||||||||||
14 | CONCENTRATION OF RISK: | ||||||||||||||||||
Included in technology development and support revenue in the accompanying statement of operations is $1.1 million, $3.4 million and $5.8 million for the years ended December 31, 2013, 2012 and 2011, respectively, of revenue which was derived from contracts with United States government agencies. Revenues derived from contracts with United States government agencies represented approximately 1%, 4% and 9% of the consolidated revenue for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||
Revenues and accounts receivable from the Company's largest non-government customers for the years ended December 31 were as follows (in thousands): | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Customer | % of Total Revenue | Accounts Receivable | % of Total Revenue | Accounts Receivable | % of Total Revenue | Accounts Receivable | |||||||||||||
A | 60% | $ | 7,337 | 68% | $ | 6,257 | 51% | $ | 5,208 | ||||||||||
B | 22% | 2,905 | 5% | 867 | 11% | 845 | |||||||||||||
C | 9% | 4,743 | 6% | — | 18% | 63 | |||||||||||||
Revenues from outside of North America represented 99%, 95% and 89% of the consolidated revenue for the years ended December 31, 2013, 2012 and 2011, respectively. Revenues by geographic area are as follows (in thousands): | |||||||||||||||||||
Country | 2013 | 2012 | 2011 | ||||||||||||||||
United States | $ | 1,552 | $ | 3,893 | $ | 6,842 | |||||||||||||
South Korea | 102,948 | 61,960 | 38,582 | ||||||||||||||||
Japan | 40,539 | 13,666 | 15,005 | ||||||||||||||||
Taiwan | 904 | 3,074 | 643 | ||||||||||||||||
Other | 696 | 651 | 217 | ||||||||||||||||
All foreign locations | 145,087 | 79,351 | 54,447 | ||||||||||||||||
Total revenue | $ | 146,639 | $ | 83,244 | $ | 61,289 | |||||||||||||
The Company attributes revenue to different geographic areas on the basis of the location of the customer. | |||||||||||||||||||
Long-lived assets (net), by geographic area are as follows (in thousands): | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
United States | $ | 14,660 | $ | 11,512 | |||||||||||||||
Other | 233 | 296 | |||||||||||||||||
Total long-lived assets | $ | 14,893 | $ | 11,808 | |||||||||||||||
All chemical materials were purchased from one supplier. See Note 7. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
15 | INCOME TAXES: | ||||||||||||
The components of income before income taxes are as follows (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 57,258 | $ | 20,069 | $ | 3,729 | |||||||
Foreign | (18,250 | ) | (5,201 | ) | (1,288 | ) | |||||||
Income before income tax | $ | 39,008 | $ | 14,868 | $ | 2,441 | |||||||
The components of the income tax benefit (expense) are as follows (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current income tax benefit (expense): | |||||||||||||
Federal | $ | 226 | $ | (225 | ) | $ | — | ||||||
State | — | — | 2,660 | ||||||||||
Foreign | (6,600 | ) | (4,994 | ) | (1,946 | ) | |||||||
(6,374 | ) | (5,219 | ) | 714 | |||||||||
Deferred income tax (expense) benefit: | |||||||||||||
Federal | (16,811 | ) | — | — | |||||||||
State | (1,192 | ) | — | — | |||||||||
Foreign | 69 | 11 | — | ||||||||||
(17,934 | ) | 11 | — | ||||||||||
Adjustments to the beginning-of-year valuation allowance | 59,352 | — | — | ||||||||||
Income tax benefit (expense) | $ | 35,044 | $ | (5,208 | ) | $ | 714 | ||||||
Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory U.S. federal income tax rate | 35 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | (1.3 | )% | (2.3 | )% | 8.1 | % | |||||||
State apportionment change | 0.3 | % | 23.8 | % | — | % | |||||||
U.S. federal rate change | (3.6 | )% | — | % | — | % | |||||||
Effect of foreign operations | 10.9 | % | 7.1 | % | 17.9 | % | |||||||
Subpart F income | 15.6 | % | — | % | — | % | |||||||
Nondeductible employee compensation | 2.3 | % | 4.2 | % | 6.9 | % | |||||||
Loss on stock warrant liability | — | % | — | % | 58.4 | % | |||||||
Research tax credits | (3.4 | )% | — | % | (34.7 | )% | |||||||
Change in valuation allowance | (146.4 | )% | (29.3 | )% | (182.2 | )% | |||||||
Sale of New Jersey tax attributes | — | % | — | % | 50.8 | % | |||||||
Other | 0.8 | % | (2.5 | )% | 11.5 | % | |||||||
Effective tax rate | (89.8 | )% | 35 | % | (29.3 | )% | |||||||
As of December 31, 2013, the Company had net operating loss and credit carry forwards. The Company’s net operating loss carry forwards below differ from the Company's accumulated deficit principally due to the timing of the recognition of certain revenues and expenses. A portion of the Company’s net operating loss carry forwards relates to tax deductions from stock-based compensation that will be accounted for as an increase to additional paid-in capital for financial reporting purposes to the extent such future deductions are utilized by the Company (see below). Pursuant to Internal Revenue Code (IRC) sections 382 and 383, utilization of the Company’s federal and state net operating loss and tax credit carry forwards could be subject to an annual limitation because of certain ownership changes. | |||||||||||||
The following table summarizes Company tax loss and tax credit carry forwards at December 31, 2013 (in thousands): | |||||||||||||
Related Tax Deduction | Tax Benefit | Expiration Date | |||||||||||
Loss carry forwards: | |||||||||||||
Federal net operating loss (1) | $ | 79,150 | $ | 27,702 | 2026 to 2033 | ||||||||
Foreign net operating loss | 20,595 | 2,598 | n/a | ||||||||||
Total loss carry forwards | $ | 99,745 | $ | 30,300 | |||||||||
Tax credit carry forwards: | |||||||||||||
Research tax credits | n/a | $ | 10,360 | 2020 to 2033 | |||||||||
Foreign tax credits | n/a | 13,830 | 2020 to 2023 | ||||||||||
State research tax credits | n/a | 2,775 | 2020 to 2028 | ||||||||||
Total credit carry forwards | n/a | $ | 26,965 | ||||||||||
_______________________________________________ | |||||||||||||
(1) Includes $68.6 million (tax benefit of $24.0 million) related to excess tax benefits which are not included in deferred tax assets on the consolidated balance sheet and are not recognized until the deduction reduces taxes payable (see below). | |||||||||||||
Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax asset: | |||||||||||||
Net operating loss carry forwards | $ | 6,280 | $ | 36,866 | |||||||||
Capitalized technology license | 2,519 | 2,525 | |||||||||||
Capitalized research expenditures | 14,012 | 2,009 | |||||||||||
Accruals and reserves | 2,172 | 1,270 | |||||||||||
Retirement plan | 3,315 | 3,432 | |||||||||||
Deferred revenue | 1,393 | 2,591 | |||||||||||
Tax credit carry forwards | 26,965 | 18,612 | |||||||||||
Stock-based compensation | 1,389 | 1,326 | |||||||||||
Other | 1,329 | 1,091 | |||||||||||
59,374 | 69,722 | ||||||||||||
Valuation allowance | (12,598 | ) | (69,711 | ) | |||||||||
Deferred tax assets | 46,776 | 11 | |||||||||||
Deferred tax liability: | |||||||||||||
Subpart F income | (6,070 | ) | — | ||||||||||
Deferred tax liabilities | (6,070 | ) | — | ||||||||||
Net deferred tax assets | $ | 40,706 | $ | 11 | |||||||||
During 2013, the Company released valuation allowance of $59.4 million, with $12.6 million remaining that relates to UDC Ireland, U.S. foreign tax credits and New Jersey research and development credits. | |||||||||||||
Deferred tax assets and the gross valuation allowance, and the resulting reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate, previously reported in 2012 and 2011 have been adjusted to exclude the impact of the windfall tax benefits that were previously reflected as a deferred tax asset, as well as to adjust the net deferred tax assets for additional stock-based compensation related items. The adjustments had no effect on consolidated net income or the consolidated balance sheet as previously reported. | |||||||||||||
During the years ended December 31, 2013, 2012 and 2011, the Company paid foreign taxes on South Korean royalty and license fee income of $6.6 million, $4.9 million and $1.9 million, respectively, which were recorded as current income tax expense. For periods prior to May 2010, the Company filed for and was granted a five year exemption on withholding tax on royalty payments received from SDC under its patent license agreement as part of a tax incentive program in South Korea. The exemption was granted in May 2005 and remained in effect until May 2010. Since then, SDC has been required to withhold tax at a rate of 16.5% upon payment of royalties and license fees to the Company. | |||||||||||||
During the year ended December 31, 2011, the Company sold approximately $45.2 million of its state net operating losses and $232,000 of its state research and development tax credits under the New Jersey Technology Tax Certificate Transfer Program, and received net proceeds of $2.7 million. The Company recorded these sales as income tax benefit. | |||||||||||||
The Company has elected to recognize as earnings taxable in the United States, and to record related deferred tax liabilities with respect to, deferred Subpart F earnings related to foreign subsidiaries in the period the Subpart F earnings are generated, even though the income is not currently taxable based upon current tax laws which limit Subpart F income to the amount of earnings and profits of the subsidiary. During the year ended December 31, 2013, the Company recorded U.S. income tax expense and a corresponding deferred tax liability of $6.1 million for future recapture of the earnings for activities of UDC Ireland which currently has a deficit in earning and profits. | |||||||||||||
Due to the Company's net operating loss position, deferred tax assets relating to tax benefits of employee stock-based compensation have been reduced related to stock options exercised and restricted stock vested for which the tax deduction exceeded the aggregate compensation expense recorded for financial reporting purposes. Although these additional tax benefits or windfalls are reflected in net operating loss carryforwards in the tax return, the additional tax benefit associated with the windfalls is not recognized until the deduction reduces taxes payable. The Company follows the “with and without” approach (excluding indirect tax effects to items such as R&D credits) described in ASC 740 Income Taxes which gives primacy to continuing operations in determining realized tax benefits. Under the with and without approach, the excess tax benefit of deductions from stock-based compensation is reflected as an increase in additional paid-in capital only if an incremental benefit is provided after considering all other tax attributes available to the Company. Accordingly, windfall tax benefits are not considered to offset current year taxable income and a benefit is not recorded in paid-in-capital if the amount of available net operating loss and tax credit carryforwards generated from continuing operations is sufficient to offset current year taxable income before considering windfall tax benefits. Given the Company's net operating loss carry forward position, no incremental benefit has been recognized in paid-in capital for such excess tax benefits. | |||||||||||||
When recognizing deferred tax assets for employee stock based awards that may be subject to limitation under IRC Section 162(m), and calculating the resulting windfall benefit, the Company prioritizes the impact of future cash compensation over stock-based compensation. Accordingly, if the anticipated cash compensation is equal to or greater than the total tax deductible annual compensation amount for a covered employee, the Company does not record a deferred tax asset associated with any stock-based compensation for that individual. As noted above, in accounting for the indirect effect of stock-based compensation on the Company's research tax credits, the Company does not set apart these credits when measuring the windfall tax benefit; instead the Company follows the practice of recognizing the full effect of research tax credits in income from continuing operations. As of December 31, 2013 and 2012, windfalls included in net operating loss carryforwards but not reflected in deferred tax assets totaled $68.6 million and $63.8 million, respectively. | |||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent on the Company's ability to generate future taxable income to obtain benefit from the reversal of temporary differences, net operating loss carryforwards and tax credits. As part of its assessment management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies. During the year ended December 31, 2013, based on previous earnings history, a current evaluation of expected future taxable income and other evidence, the Company determined it is more likely than not that its federal and the majority of its state deferred tax assets will be realized. Therefore, the Company released all valuation allowances except the portion that relates to UDC Ireland, New Jersey research and development credits and a portion of foreign tax credits. The Company's valuation allowance decreased by $57.1 million, $4.4 million and $4.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
The Company did not record a liability for uncertain tax positions as of December 31, 2013, 2012, and 2011, respectively. Company management does not anticipate any material change in its uncertain tax positions in the next twelve months. The Company’s federal income tax returns for 2010 through 2012 are open tax years and are subject to examination by the Internal Revenue Service. State tax years 2009 to 2012 remain open to examination by the jurisdictions (Pennsylvania and New Jersey) in which the Company is subject to tax. However, due to the Company's net operating losses, the Company's federal income tax returns for 1995 and later will remain subject to examination until the losses are utilized or expire; certain state returns remain subject to examination as well. In addition, the Company's foreign returns for 2010 and thereafter remain subject to examination. |
DEFINED_CONTRIBUTION_PLAN
DEFINED CONTRIBUTION PLAN | 12 Months Ended | |
Dec. 31, 2013 | ||
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | |
DEFINED CONTRIBUTION PLAN | ' | |
16 | DEFINED CONTRIBUTION PLAN: | |
The Company maintains the Universal Display Corporation 401(k) Plan (the Plan) in accordance with the provisions of Section 401(k) of the Internal Revenue Code (the Code). The Plan covers substantially all full-time employees of the Company. Participants may contribute up to 15% of their total compensation to the Plan, not to exceed the limit as defined in the Code, with the Company matching 50% of the participant’s contribution, limited to 6% of the participant’s total compensation. For the years ended December 31, 2013, 2012 and 2011, the Company contributed $290,000, $270,000 and $251,000, respectively, to the Plan. |
QUARTERLY_SUPPLEMENTAL_FINANCI
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) | ' | ||||||||||||||||||||
17 | QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED): | ||||||||||||||||||||
The following tables present certain unaudited consolidated quarterly financial information for each of the eight quarters in the two-year period ended December 31, 2013. In the opinion of Company management, this quarterly information has been prepared on the same basis as the consolidated financial statements and includes all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the information for the periods presented. The results of operations for any quarter are not necessarily indicative of the results for the full year or for any future period. | |||||||||||||||||||||
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2013 (in thousands, except per share data): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar-13 | June 30, 2013 (1) | 30-Sep-13 | December 31, 2013 (1) | Total | |||||||||||||||||
Revenue | $ | 14,976 | $ | 49,359 | $ | 32,826 | $ | 49,478 | (2) | $ | 146,639 | ||||||||||
Net (loss) income | $ | (4,758 | ) | $ | 15,382 | $ | 5,542 | $ | 57,886 | (3) | $ | 74,052 | |||||||||
Net (loss) income per common share: | |||||||||||||||||||||
Basic | $ | (0.10 | ) | $ | 0.34 | $ | 0.12 | $ | 1.26 | $ | 1.61 | ||||||||||
Diluted | $ | (0.10 | ) | $ | 0.33 | $ | 0.12 | $ | 1.24 | $ | 1.59 | ||||||||||
_______________________________________________ | |||||||||||||||||||||
(1) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. | |||||||||||||||||||||
(2) Includes $1.5 million of revenue that was recognized relating to cash payments received in a prior year that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer (see Note 2). | |||||||||||||||||||||
(3) During the three months ended December 31, 2013, the Company released income tax valuation allowances of $59.4 million. | |||||||||||||||||||||
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2012 (in thousands, except per share data): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar-12 | June 30, 2012 (1) | 30-Sep-12 | December 31, 2012 (1) | Total | |||||||||||||||||
Revenue | $ | 12,620 | $ | 29,987 | $ | 12,504 | $ | 28,133 | (2) | $ | 83,244 | ||||||||||
Net (loss) income | $ | (1,221 | ) | $ | 10,964 | $ | (5,468 | ) | $ | 5,385 | (3) | $ | 9,660 | ||||||||
Net (loss) income per common share: | |||||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.24 | $ | (0.12 | ) | $ | 0.12 | $ | 0.21 | |||||||||
Diluted | $ | (0.03 | ) | $ | 0.23 | $ | (0.12 | ) | $ | 0.12 | $ | 0.21 | |||||||||
_______________________________________________ | |||||||||||||||||||||
(1) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. | |||||||||||||||||||||
(2) Includes $1.9 million of revenue that was recognized relating to cash payments received in a prior year that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer (see Note 2). | |||||||||||||||||||||
(3) Includes the reversal of $703,000 of expense in the quarter ended December 31, 2012 related to accrued bonus compensation which was accrued during the first three quarters of 2012 based on estimated expected payments and adjusted as of December 31, 2012 based upon final projected amounts. | |||||||||||||||||||||
Per share amounts for each quarter have been calculated separately. Accordingly, quarterly amounts may not add to annual amounts. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Principles of Consolidation | ' | ||||||||||||||||
Principles of Consolidation | |||||||||||||||||
The consolidated financial statements include the accounts of Universal Display Corporation and its wholly owned subsidiaries, UDC, Inc., Universal Display Corporation Hong Kong, Ltd., Universal Display Corporation Korea, Y.H., Universal Display Corporation Japan, G.K. and UDC Ireland Limited. All intercompany transactions and accounts have been eliminated. | |||||||||||||||||
Management's Use of Estimates | ' | ||||||||||||||||
Management’s Use of Estimates | |||||||||||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. | |||||||||||||||||
Cash, Cash Equivalents and Short-term Investments | ' | ||||||||||||||||
Cash, Cash Equivalents and Investments | |||||||||||||||||
The Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents. The Company classifies its remaining investments as available-for-sale. These securities are carried at fair market value, with unrealized gains and losses reported in shareholders’ equity. Gains or losses on securities sold are based on the specific identification method. | |||||||||||||||||
Trade Accounts Receivable | ' | ||||||||||||||||
Trade Accounts Receivable | |||||||||||||||||
Trade accounts receivable are stated at the amount the Company expects to collect and do not bear interest. The Company considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. The Company’s accounts receivable balance is a result of chemical sales, royalties, license fees and U.S. government contract revenues. These receivables have historically been paid timely. Due to the nature of the accounts receivable balance, the Company believes there is no significant risk of collection. If the financial condition of the Company’s customers were to deteriorate, adversely affecting their ability to make payments, allowances for doubtful accounts would be required. The Company recorded no bad debt expense in the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||
Inventory | ' | ||||||||||||||||
Inventory | |||||||||||||||||
Inventory, which consists of materials that have been classified as commercial, is valued at the lower of cost or market using the first-in, first-out method. Commercial materials are materials that have been validated by the Company for use in commercial OLED products. | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying value as of December 31, 2013 | Quoted prices in active markets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents | $ | 7,600 | $ | 7,600 | $ | — | $ | — | |||||||||
Short-term investments | 202,024 | 202,024 | — | — | |||||||||||||
Long-term investments | 7,417 | 3,117 | — | 4,300 | |||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2012 (in thousands): | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying value as of December 31, 2012 | Quoted prices in active markets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents | $ | 63,863 | $ | 63,863 | $ | — | $ | — | |||||||||
Short-term investments | 158,018 | 154,018 | — | 4,000 | |||||||||||||
Long-term investments | 1,270 | 970 | — | 300 | |||||||||||||
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 inputs are unobservable inputs based on management’s own assumptions used to measure assets and liabilities at fair value. A financial asset's or liability’s classification is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||||
The Company's convertible promissory note investments are currently classified within investments on the consolidated balance sheet. | |||||||||||||||||
These convertible promissory note investments are inherently risky as the notes lack a ready market for resale and the note issuer's success is dependent on numerous factors, including, among others, product development, market acceptance, operational efficiency, the ability of the investee companies to raise additional funds in financial markets that can be volatile, and other key business factors. Additionally, the companies that the Company has invested in could fail or not be able to raise additional funds when needed. Should one or more of these events occur, they could cause the Company's investments to significantly decrease in value. In addition, financial market volatility could negatively affect the Company's ability to realize value in the Company's investments through liquidity events, such as mergers and private sales. | |||||||||||||||||
The Company determines the fair value of its convertible promissory note investments portfolio quarterly. The fair value of the Company's convertible promissory note investments is determined through the consideration of whether the investee is experiencing financial difficulty, overall trends in interest rates and other factors. Management also performs an evaluation of the probability that the borrower will be in payment default on any of its debt in the foreseeable future. The evaluation requires significant judgment and includes quantitative and qualitative analysis of identified events or circumstances affecting the investee, which may impact the fair value of the investment, such as: | |||||||||||||||||
• | the investee's revenue and earnings trends relative to pre-defined milestones and overall business prospects; | ||||||||||||||||
• | the technological feasibility of the investee's products and technologies; | ||||||||||||||||
• | the general market conditions in the investee's industry or geographic area, including adverse regulatory or economic changes; | ||||||||||||||||
• | factors related to the investee's ability to remain in business, such as the investee's liquidity, debt ratios, and the rate at which the investee is using its cash; and | ||||||||||||||||
• | the investee's receipt of additional funding at a lower valuation. | ||||||||||||||||
Changes in fair value of the investments are recorded as unrealized gains and losses in other comprehensive income (loss). If a decline in fair value of a convertible promissory note investment below its carrying value is deemed to be other than temporary, the amortized cost basis of the Company’s investment will be written down by the amount of the other-than-temporary impairment with a resulting charge to net income. There were no other-than-temporary impairments of convertible promissory note investments as of December 31, 2013. On January 16, 2014, Plextronics, one of the companies that issued the Company a convertible promissory note, for an original principal amount of $4.0 million, filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court of the District of Delaware (Bankruptcy Court). The debtor company is seeking an Order authorizing the sale of substantially all of its assets. On February 14, 2014, the Bankruptcy Court approved the bidding procedures in connection with the sale of substantially all of the debtor company’s assets, including approval of a minimum stalking horse bid under which the Company's investment of $4.0 million would be satisfied in full. If any qualified bids are received under the approved bidding procedures, which are required to be superior to the current stalking horse bid, then on March 5, 2014, an auction for the sale of the debtor’s assets will be held. A sale hearing is currently scheduled for March 6, 2014. Based upon the Company's expectation of full payment resulting from the sale of the debtor company's assets and the bankruptcy process, no impairment has been recorded as of December 31, 2013. If the sale and bankruptcy process does not occur as expected, a full or partial impairment of the investment may be necessary. | |||||||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s investments in convertible notes for the years ended December 31, 2013 and 2012, which had been classified in Level 3 in the fair value hierarchy (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fair value of notes, beginning of year | $ | 4,300 | $ | — | |||||||||||||
Investments | — | 4,300 | |||||||||||||||
Fair value of notes, end of year | $ | 4,300 | $ | 4,300 | |||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s stock warrant liability for the year ended December 31, 2011, which had been classified in Level 3 in the fair value hierarchy (in thousands): | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Fair value of stock warrant liability, beginning of year | $ | 10,660 | |||||||||||||||
Loss for period | 4,190 | ||||||||||||||||
Warrants exercised | (14,850 | ) | |||||||||||||||
Fair value of stock warrant liability, end of year | $ | — | |||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||
The carrying values of accounts receivable, other current assets, and accounts payable approximate fair value in the accompanying financial statements due to the short-term nature of those instruments. The Company’s other financial instruments, which include cash equivalents and investments are carried at fair value as noted above. | |||||||||||||||||
Property and Equipment | ' | ||||||||||||||||
Property and Equipment | |||||||||||||||||
Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of 30 years for building, 15 years for building improvements, and three to seven years for office and lab equipment and furniture and fixtures. Repair and maintenance costs are charged to expense as incurred. Additions and betterments are capitalized. | |||||||||||||||||
Impairment of Long-Lived Assets | ' | ||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
Company management continually evaluates whether events or changes in circumstances might indicate that the remaining estimated useful life of long-lived assets may warrant revision, or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted cash flows in measuring whether the long-lived asset should be written down to fair value. Measurement of the amount of impairment would be based on generally accepted valuation methodologies, as deemed appropriate. As of December 31, 2013, Company management believed that no revision to the remaining useful lives or write-down of the Company’s long-lived assets was required | |||||||||||||||||
Stock Warrant Liability | ' | ||||||||||||||||
Stock Warrant Liability | |||||||||||||||||
The Company had warrants to purchase shares of common stock outstanding containing a “down-round” provision. In accordance with the guidance in Accounting Standards Codification (ASC) 815, Derivatives and Hedging, the fair value of these warrants was required to be reported as a liability, with the changes of fair value recorded on the statement of income. The change in fair value of these warrants resulted in a non-cash loss on the Company’s consolidated statement of income of $4.2 million for the year ended December 31, 2011. In 2011, all remaining outstanding stock warrants to purchase shares of the Company’s common stock were exercised. | |||||||||||||||||
The fair value of the stock warrant liability was determined using the Black-Scholes option pricing model. | |||||||||||||||||
Net Income (Loss) Per Common Share | ' | ||||||||||||||||
Net Income Per Common Share | |||||||||||||||||
Basic net income per common share is computed by dividing net income by the weighted-average number of shares of common stock outstanding for the period excluding unvested restricted stock awards, restricted stock units and performance units. | |||||||||||||||||
Revenue Recognition and Deferred Revenue | ' | ||||||||||||||||
Revenue Recognition and Deferred Revenue | |||||||||||||||||
Material sales relate to the Company’s sale of its OLED materials for incorporation into its customers’ commercial OLED products or for their OLED development and evaluation activities. Material sales are recognized at the time of shipment or at time of delivery, and passage of title, depending upon the contractual agreement between the parties. | |||||||||||||||||
The Company receives license and royalty payments under certain commercial, development and technology evaluation agreements, some of which are non-refundable advances. These payments may include royalty and license fees made pursuant to license agreements and also license fees included as part of certain commercial supply agreements. Certain of the payments under development and technology evaluation agreements are creditable against future amounts payable under commercial license agreements that the parties may subsequently enter into and, as such, are deferred until such commercial license agreements are executed or negotiations have ceased and Company management determines that there is no appreciable likelihood of executing a commercial license agreement with the other party. Revenue would then be recognized over the term of the agreement or the expected useful life of the relevant licensed technology, for perpetual licenses, if there is an effective commercial license agreement or amounts are not creditable against future commercial license fees, or at the time Company management determines that there is no appreciable likelihood of an executable commercial license agreement. Amounts deferred are classified as current and non-current based upon current contractual remaining terms; however, based upon on-going relationships with customers, as well as future agreement extensions, amounts classified as current as of December 31, 2013, may not be recognized as revenue over the next twelve months. As of December 31, 2013, $4.3 million was recorded as deferred revenue, none of which is creditable against future commercial license agreements that have not yet been executed or deemed effective. For the years ended December 31, 2013 and 2012, respectively, $1.5 million and $1.9 million of revenue was recognized relating to cash payments received that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer. For arrangements with extended payment terms where the fee is not fixed and determinable, the Company recognizes revenue when the payment is due and payable. Royalty revenue and license fees included as part of commercial supply agreements are recognized when earned and the amount is fixed and determinable. | |||||||||||||||||
Technology development and support revenue is revenue earned from government contracts, development and technology evaluation agreements and commercialization assistance fees, which includes reimbursements by government entities for all or a portion of the research and development costs the Company incurs in relation to its government contracts. Revenues are recognized proportionally as research and development costs are incurred, or as defined milestones are achieved. | |||||||||||||||||
Cost of Material Sales | ' | ||||||||||||||||
Cost of Material Sales | |||||||||||||||||
Cost of material sales represents costs associated with the sale of materials that have been classified as commercial including shipping costs. Commercial materials are materials that have been validated by the Company for use in commercial OLED products. Prior to their designation as commercial materials, costs incurred related to the materials are included in research and development costs. | |||||||||||||||||
Research and Development | ' | ||||||||||||||||
Research and Development | |||||||||||||||||
Expenditures for research and development are charged to operations as incurred. Research and development expenses consist of the following (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Development and operations in the Company’s facilities | $ | 23,491 | $ | 21,381 | $ | 18,707 | |||||||||||
Costs incurred under sponsored research agreements | 2,671 | 2,058 | 1,022 | ||||||||||||||
PPG OLED Materials Agreement (Note 7) | 7,470 | 6,170 | 3,539 | ||||||||||||||
Scientific Advisory Board compensation | 583 | 423 | 861 | ||||||||||||||
$ | 34,215 | $ | 30,032 | $ | 24,129 | ||||||||||||
Patent Costs | ' | ||||||||||||||||
Patent Costs and Amortization of Acquired Technology | |||||||||||||||||
Costs associated with patent applications, patent prosecution, patent defense and the maintenance of patents are charged to expense as incurred. Costs to successfully defend a challenge to a patent are capitalized to the extent of an evident increase in the value of the patent. Costs that relate to an unsuccessful outcome are charged to expense. | |||||||||||||||||
Income Taxes | ' | ||||||||||||||||
Income Taxes | |||||||||||||||||
Share-Based Payment Awards | ' | ||||||||||||||||
Share-Based Payment Awards |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ' | ||||||||||||||||
Statement of Cash Flow Information | |||||||||||||||||
The following non-cash activities occurred (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Unrealized (loss) gain on available-for-sale securities | $ | (10 | ) | $ | (31 | ) | $ | (1 | ) | ||||||||
Common stock issued to Board of Directors and Scientific Advisory Board that was earned in a previous period | 315 | 328 | 300 | ||||||||||||||
Common stock issued to employees that was accrued for in a previous period, net of shares withheld for taxes | 282 | 252 | 1,113 | ||||||||||||||
Fair value of stock warrant liability reclassified to shareholders’ equity upon exercise | — | — | 14,850 | ||||||||||||||
Property and equipment purchases included in accounts payable | 420 | 165 | — | ||||||||||||||
Short-term investments | ' | ||||||||||||||||
Investments at December 31, 2013 and 2012 consist of the following (in thousands): | |||||||||||||||||
Amortized | Unrealized | Aggregate Fair | |||||||||||||||
Investment Classification | Cost | Gains | (Losses) | Market Value | |||||||||||||
December 31, 2013 | |||||||||||||||||
Certificates of deposit | $ | 11,358 | $ | 2 | $ | (16 | ) | $ | 11,344 | ||||||||
Corporate bonds | 190,738 | 33 | (48 | ) | 190,723 | ||||||||||||
U.S. Government bonds | 3,074 | — | — | 3,074 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 209,470 | $ | 35 | $ | (64 | ) | $ | 209,441 | |||||||||
December 31, 2012 | |||||||||||||||||
Certificates of deposit | $ | 7,562 | $ | 3 | $ | (5 | ) | $ | 7,560 | ||||||||
Commercial paper | 2,997 | — | — | 2,997 | |||||||||||||
Corporate bonds | 141,349 | 9 | (25 | ) | 141,333 | ||||||||||||
U.S. Government bonds | 3,098 | — | — | 3,098 | |||||||||||||
Convertible notes | 4,300 | — | — | 4,300 | |||||||||||||
$ | 159,306 | $ | 12 | $ | (30 | ) | $ | 159,288 | |||||||||
Assets and liabilities carried at fair value measured on a recurring basis | ' | ||||||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2013 (in thousands): | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying value as of December 31, 2013 | Quoted prices in active markets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents | $ | 7,600 | $ | 7,600 | $ | — | $ | — | |||||||||
Short-term investments | 202,024 | 202,024 | — | — | |||||||||||||
Long-term investments | 7,417 | 3,117 | — | 4,300 | |||||||||||||
The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2012 (in thousands): | |||||||||||||||||
Fair Value Measurements, Using | |||||||||||||||||
Total carrying value as of December 31, 2012 | Quoted prices in active markets (Level 1) | Significant other observable inputs | Significant unobservable inputs | ||||||||||||||
(Level 2) | (Level 3) | ||||||||||||||||
Cash equivalents | $ | 63,863 | $ | 63,863 | $ | — | $ | — | |||||||||
Short-term investments | 158,018 | 154,018 | — | 4,000 | |||||||||||||
Long-term investments | 1,270 | 970 | — | 300 | |||||||||||||
Reconciliation of the changes in fair value of the Company's investments in convertible notes | ' | ||||||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s investments in convertible notes for the years ended December 31, 2013 and 2012, which had been classified in Level 3 in the fair value hierarchy (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Fair value of notes, beginning of year | $ | 4,300 | $ | — | |||||||||||||
Investments | — | 4,300 | |||||||||||||||
Fair value of notes, end of year | $ | 4,300 | $ | 4,300 | |||||||||||||
Reconciliation of the changes in fair value of the Company's stock warrant liability | ' | ||||||||||||||||
The following table is a reconciliation of the changes in fair value of the Company’s stock warrant liability for the year ended December 31, 2011, which had been classified in Level 3 in the fair value hierarchy (in thousands): | |||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||
Fair value of stock warrant liability, beginning of year | $ | 10,660 | |||||||||||||||
Loss for period | 4,190 | ||||||||||||||||
Warrants exercised | (14,850 | ) | |||||||||||||||
Fair value of stock warrant liability, end of year | $ | — | |||||||||||||||
Basic and diluted net income (loss) per common share | ' | ||||||||||||||||
The following table is a reconciliation of net income and the shares used in calculating basic and diluted net income per common share for the years ended December 31, 2013, 2012 and 2011 (in thousands, except share and per share data): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 74,052 | $ | 9,660 | $ | 3,155 | |||||||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding – Basic | 45,898,019 | 45,951,276 | 43,737,968 | ||||||||||||||
Effect of dilutive shares: | |||||||||||||||||
Common stock equivalents arising from stock options and ESPP | 458,574 | 648,661 | 956,803 | ||||||||||||||
Restricted stock awards and units and performance units | 187,012 | 283,665 | 445,623 | ||||||||||||||
Weighted average common shares outstanding – Diluted | 46,543,605 | 46,883,602 | 45,140,394 | ||||||||||||||
Net income per common share: | |||||||||||||||||
Basic | $ | 1.61 | $ | 0.21 | $ | 0.07 | |||||||||||
Diluted | $ | 1.59 | $ | 0.21 | $ | 0.07 | |||||||||||
Research and development expenses | ' | ||||||||||||||||
Research and development expenses consist of the following (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Development and operations in the Company’s facilities | $ | 23,491 | $ | 21,381 | $ | 18,707 | |||||||||||
Costs incurred under sponsored research agreements | 2,671 | 2,058 | 1,022 | ||||||||||||||
PPG OLED Materials Agreement (Note 7) | 7,470 | 6,170 | 3,539 | ||||||||||||||
Scientific Advisory Board compensation | 583 | 423 | 861 | ||||||||||||||
$ | 34,215 | $ | 30,032 | $ | 24,129 | ||||||||||||
Non-cash activities | ' | ||||||||||||||||
The following non-cash activities occurred (in thousands): | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Unrealized (loss) gain on available-for-sale securities | $ | (10 | ) | $ | (31 | ) | $ | (1 | ) | ||||||||
Common stock issued to Board of Directors and Scientific Advisory Board that was earned in a previous period | 315 | 328 | 300 | ||||||||||||||
Common stock issued to employees that was accrued for in a previous period, net of shares withheld for taxes | 282 | 252 | 1,113 | ||||||||||||||
Fair value of stock warrant liability reclassified to shareholders’ equity upon exercise | — | — | 14,850 | ||||||||||||||
Property and equipment purchases included in accounts payable | 420 | 165 | — | ||||||||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and equipment | ' | |||||||
Property and equipment consist of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Land | $ | 820 | $ | 820 | ||||
Building and improvements | 15,605 | 11,652 | ||||||
Office and lab equipment | 20,055 | 19,056 | ||||||
Furniture and fixtures | 423 | 374 | ||||||
Construction-in-progress | 746 | 619 | ||||||
37,649 | 32,521 | |||||||
Less: Accumulated depreciation | (22,756 | ) | (20,713 | ) | ||||
Property and equipment, net | $ | 14,893 | $ | 11,808 | ||||
ACQUIRED_TECHNOLOGY_Tables
ACQUIRED TECHNOLOGY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ||||||||
Acquired technology | ' | ||||||||
These intangible assets consist of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
PD-LD, Inc. | $ | 1,481 | $ | 1,481 | |||||
Motorola | 15,909 | 15,909 | |||||||
Fujifilm | 109,462 | 109,102 | |||||||
126,852 | 126,492 | ||||||||
Less: Accumulated amortization | (32,841 | ) | (21,868 | ) | |||||
Acquired technology, net | $ | 94,011 | $ | 104,624 | |||||
Future expected amortization expense | ' | ||||||||
Amortization expense related to acquired technology is currently expected to be as follows (in thousands): | |||||||||
Year | Projected Expense | ||||||||
2014 | $ | 10,999 | |||||||
2015 | 10,999 | ||||||||
2016 | 10,999 | ||||||||
2017 | 10,999 | ||||||||
2018 | 10,979 | ||||||||
Thereafter | 39,036 | ||||||||
$ | 94,011 | ||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accrued expenses | ' | ||||||||
Accrued expenses consist of the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Compensation | $ | 7,977 | $ | 5,196 | |||||
Royalties | 3,243 | 2,069 | |||||||
Consulting | 338 | 337 | |||||||
Professional fees | 458 | 1,302 | |||||||
Research and development agreements | 2,158 | 1,130 | |||||||
Inventory | 1,564 | — | |||||||
Other | 301 | 360 | |||||||
$ | 16,039 | $ | 10,394 | ||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ||||||||||||||
Schedule of accumulated other comprehensive loss | ' | ||||||||||||||
Amounts related to the changes in accumulated other comprehensive loss were as follows (in thousands): | |||||||||||||||
Unrealized gain (loss) on marketable securities | Net unrealized loss on retirement plan (2) | Total | Affected line items in the consolidated statement of income | ||||||||||||
Balance January 1, 2011, net of tax | $ | 14 | $ | (6,052 | ) | $ | (6,038 | ) | |||||||
Other comprehensive loss before reclassification | (1 | ) | (418 | ) | (419 | ) | |||||||||
Reclassification to net income (1) | — | 600 | 600 | Selling, general and administrative and research and development | |||||||||||
Change during period | (1 | ) | 182 | 181 | |||||||||||
Balance December 31, 2011, net of tax | $ | 13 | $ | (5,870 | ) | $ | (5,857 | ) | |||||||
Other comprehensive loss before reclassification | (31 | ) | (442 | ) | (473 | ) | |||||||||
Reclassification to net income (1) | — | 628 | 628 | Selling, general and administrative and research and development | |||||||||||
Change during period | (31 | ) | 186 | 155 | |||||||||||
Balance December 31, 2012, net of tax | $ | (18 | ) | $ | (5,684 | ) | $ | (5,702 | ) | ||||||
Other comprehensive (loss) income before reclassification | (6 | ) | 901 | 895 | |||||||||||
Reclassification to net income (1) | — | 439 | 439 | Selling, general and administrative and research and development | |||||||||||
Change during period | (6 | ) | 1,340 | 1,334 | |||||||||||
Balance December 31, 2013, net of tax | $ | (24 | ) | $ | (4,344 | ) | $ | (4,368 | ) | ||||||
_______________________________________________ | |||||||||||||||
(1) The Company reclassified amortization of prior service cost and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income in the amounts of $439,000, $628,000 and $600,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||
(2) Refer to Note 12: Supplemental Executive Retirement Plan. |
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock option activity | ' | ||||||||||||
The following table summarizes the stock option activity during the year ended December 31, 2013 for all grants under the Equity Compensation Plan: | |||||||||||||
Options | Weighted | ||||||||||||
Average | |||||||||||||
Exercise | |||||||||||||
Price | |||||||||||||
Outstanding at January 1, 2013 | 828,230 | $ | 11.58 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (252,081 | ) | 14.22 | ||||||||||
Forfeited | — | — | |||||||||||
Cancelled | (5,666 | ) | 7.39 | ||||||||||
Outstanding at December 31, 2013 | 570,483 | 10.43 | |||||||||||
Vested and expected to vest | 570,483 | 10.43 | |||||||||||
Exercisable at December 31, 2013 | 570,483 | $ | 10.43 | ||||||||||
Summary of stock options outstanding and exercisable by price range | ' | ||||||||||||
A summary of stock options outstanding and exercisable by price range at December 31, 2013 is as follows (in thousands, except share and per share data): | |||||||||||||
Outstanding and Exercisable | |||||||||||||
Number of | Weighted | Weighted | Aggregate | ||||||||||
Options | Average | Average | Intrinsic | ||||||||||
Outstanding | Remaining | Exercise | |||||||||||
at December 31, | Contractual | ||||||||||||
Exercise Price | 2013 | Life (Years) | Price | Value (A) | |||||||||
$5.91-$9.04 | 197,430 | 1 | $ | 8.15 | $ | 5,176 | |||||||
$9.43-$14.16 | 294,936 | 2 | $ | 10.55 | $ | 7,023 | |||||||
$14.39-$18.34 | 78,117 | 1.4 | $ | 15.77 | $ | 1,452 | |||||||
Total | 570,483 | 1.6 | $ | 10.43 | $ | 13,651 | |||||||
_______________________________________________ | |||||||||||||
(A) The difference between the stock option’s exercise price and the closing price of the common stock at December 31, 2013. | |||||||||||||
Restricted stock and units activity | ' | ||||||||||||
The following table summarizes the stock activity related to restricted stock awards and units and fully vested share based payment awards: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Unvested, January 1, 2013 | 620,971 | $ | 24 | ||||||||||
Granted | 168,182 | 32.76 | |||||||||||
Vested | (261,257 | ) | 23.46 | ||||||||||
Forfeited | (1,300 | ) | 27.7 | ||||||||||
Unvested, December 31, 2013 | 526,596 | $ | 27.05 | ||||||||||
Schedule of Nonvested Performance-based Units Activity [Table Text Block] | ' | ||||||||||||
The following table summarizes the activity related to performance unit awards: | |||||||||||||
Number of | Weighted- | ||||||||||||
Shares | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Unvested, January 1, 2013 | — | $ | — | ||||||||||
Granted | 35,776 | 47.78 | |||||||||||
Vested | — | — | |||||||||||
Cancelled | — | — | |||||||||||
Unvested, December 31, 2013 | 35,776 | $ | 47.78 | ||||||||||
Assumptions used in determining the fair value of stock appreciation rights | ' | ||||||||||||
The following table provides the assumptions used in determining the fair value of the SARs at December 31, 2011: | |||||||||||||
Dividend yield rate | — | ||||||||||||
Expected volatility | 23.4 | % | |||||||||||
Risk-free interest rates | 0.02 | % | |||||||||||
Expected life | 0.02 years | ||||||||||||
SUPPLEMENTAL_EXECUTIVE_RETIREM1
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ||||||||||||
Information relating to the Company's plan | ' | ||||||||||||
Information relating to the Company’s plan is as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Change in benefit obligation: | |||||||||||||
Benefit obligation, beginning of year | $ | 9,837 | $ | 8,423 | |||||||||
Service cost | 646 | 601 | |||||||||||
Interest cost | 343 | 371 | |||||||||||
Actuarial (gain) loss | (1,390 | ) | 442 | ||||||||||
Benefit obligation, end of year | 9,436 | 9,837 | |||||||||||
Fair value of plan assets | — | — | |||||||||||
Unfunded status of the plan, end of year | $ | 9,436 | $ | 9,837 | |||||||||
Current liability | — | — | |||||||||||
Noncurrent liability | $ | 9,436 | $ | 9,837 | |||||||||
Components of net periodic pension cost | ' | ||||||||||||
The components of net periodic pension cost were as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Service cost | $ | 646 | $ | 601 | $ | 542 | |||||||
Interest cost | 343 | 371 | 385 | ||||||||||
Amortization of prior service cost | 584 | 584 | 584 | ||||||||||
Amortization of loss | 92 | 44 | 16 | ||||||||||
Total net periodic benefit cost | $ | 1,665 | $ | 1,600 | $ | 1,527 | |||||||
Assumptions used to determine benefit obligation and net periodic pension cost | ' | ||||||||||||
Assumptions used to determine the year end benefit obligation were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Discount rate | 4.51% | 3.49% | |||||||||||
Rate of compensation increases | 3.50% | 3.50% | |||||||||||
Assumptions used to determine the net periodic pension cost were as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Discount rate | 3.49% | 4.44% | 5.44% | ||||||||||
Rate of compensation increases | 3.50% | 3.50% | 3.50% | ||||||||||
Amounts to be amortized from accumulated other comprehensive loss into net periodic pension cost in next fiscal year | ' | ||||||||||||
The estimated amounts to be amortized from accumulated other comprehensive loss into the net periodic pension cost in 2014 are as follows (in thousands): | |||||||||||||
Amortization of prior service cost | $ | 584 | |||||||||||
Amortization of gain/loss | — | ||||||||||||
Total | $ | 584 | |||||||||||
Benefit payments expected to be paid | ' | ||||||||||||
Benefit payments, which reflect estimated future service, are currently expected to be paid as follows (in thousands): | |||||||||||||
Year | Projected Benefits | ||||||||||||
2014 | $ | — | |||||||||||
2015 | 336 | ||||||||||||
2016 | 403 | ||||||||||||
2017 | 816 | ||||||||||||
2018 | 853 | ||||||||||||
2019-2023 | 5,256 | ||||||||||||
Thereafter | 14,438 | ||||||||||||
CONCENTRATION_OF_RISK_Tables
CONCENTRATION OF RISK (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||
Risks and Uncertainties [Abstract] | ' | ||||||||||||||||||
Revenues and accounts receivable from our largest non-government customers | ' | ||||||||||||||||||
Revenues and accounts receivable from the Company's largest non-government customers for the years ended December 31 were as follows (in thousands): | |||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||
Customer | % of Total Revenue | Accounts Receivable | % of Total Revenue | Accounts Receivable | % of Total Revenue | Accounts Receivable | |||||||||||||
A | 60% | $ | 7,337 | 68% | $ | 6,257 | 51% | $ | 5,208 | ||||||||||
B | 22% | 2,905 | 5% | 867 | 11% | 845 | |||||||||||||
C | 9% | 4,743 | 6% | — | 18% | 63 | |||||||||||||
Revenues by geographic area | ' | ||||||||||||||||||
Revenues by geographic area are as follows (in thousands): | |||||||||||||||||||
Country | 2013 | 2012 | 2011 | ||||||||||||||||
United States | $ | 1,552 | $ | 3,893 | $ | 6,842 | |||||||||||||
South Korea | 102,948 | 61,960 | 38,582 | ||||||||||||||||
Japan | 40,539 | 13,666 | 15,005 | ||||||||||||||||
Taiwan | 904 | 3,074 | 643 | ||||||||||||||||
Other | 696 | 651 | 217 | ||||||||||||||||
All foreign locations | 145,087 | 79,351 | 54,447 | ||||||||||||||||
Total revenue | $ | 146,639 | $ | 83,244 | $ | 61,289 | |||||||||||||
Long-lived assets (net) by geographic area | ' | ||||||||||||||||||
Long-lived assets (net), by geographic area are as follows (in thousands): | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
United States | $ | 14,660 | $ | 11,512 | |||||||||||||||
Other | 233 | 296 | |||||||||||||||||
Total long-lived assets | $ | 14,893 | $ | 11,808 | |||||||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Components of income (loss) before income taxes | ' | ||||||||||||
The components of income before income taxes are as follows (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
United States | $ | 57,258 | $ | 20,069 | $ | 3,729 | |||||||
Foreign | (18,250 | ) | (5,201 | ) | (1,288 | ) | |||||||
Income before income tax | $ | 39,008 | $ | 14,868 | $ | 2,441 | |||||||
Components of income tax benefit | ' | ||||||||||||
The components of the income tax benefit (expense) are as follows (in thousands): | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current income tax benefit (expense): | |||||||||||||
Federal | $ | 226 | $ | (225 | ) | $ | — | ||||||
State | — | — | 2,660 | ||||||||||
Foreign | (6,600 | ) | (4,994 | ) | (1,946 | ) | |||||||
(6,374 | ) | (5,219 | ) | 714 | |||||||||
Deferred income tax (expense) benefit: | |||||||||||||
Federal | (16,811 | ) | — | — | |||||||||
State | (1,192 | ) | — | — | |||||||||
Foreign | 69 | 11 | — | ||||||||||
(17,934 | ) | 11 | — | ||||||||||
Adjustments to the beginning-of-year valuation allowance | 59,352 | — | — | ||||||||||
Income tax benefit (expense) | $ | 35,044 | $ | (5,208 | ) | $ | 714 | ||||||
Reconciliation of the statutory U.S. federal tax rate to the effective tax rate | ' | ||||||||||||
Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows: | |||||||||||||
Year ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Statutory U.S. federal income tax rate | 35 | % | 34 | % | 34 | % | |||||||
State income taxes, net of federal benefit | (1.3 | )% | (2.3 | )% | 8.1 | % | |||||||
State apportionment change | 0.3 | % | 23.8 | % | — | % | |||||||
U.S. federal rate change | (3.6 | )% | — | % | — | % | |||||||
Effect of foreign operations | 10.9 | % | 7.1 | % | 17.9 | % | |||||||
Subpart F income | 15.6 | % | — | % | — | % | |||||||
Nondeductible employee compensation | 2.3 | % | 4.2 | % | 6.9 | % | |||||||
Loss on stock warrant liability | — | % | — | % | 58.4 | % | |||||||
Research tax credits | (3.4 | )% | — | % | (34.7 | )% | |||||||
Change in valuation allowance | (146.4 | )% | (29.3 | )% | (182.2 | )% | |||||||
Sale of New Jersey tax attributes | — | % | — | % | 50.8 | % | |||||||
Other | 0.8 | % | (2.5 | )% | 11.5 | % | |||||||
Effective tax rate | (89.8 | )% | 35 | % | (29.3 | )% | |||||||
Tax loss and tax credit carryforwards | ' | ||||||||||||
The following table summarizes Company tax loss and tax credit carry forwards at December 31, 2013 (in thousands): | |||||||||||||
Related Tax Deduction | Tax Benefit | Expiration Date | |||||||||||
Loss carry forwards: | |||||||||||||
Federal net operating loss (1) | $ | 79,150 | $ | 27,702 | 2026 to 2033 | ||||||||
Foreign net operating loss | 20,595 | 2,598 | n/a | ||||||||||
Total loss carry forwards | $ | 99,745 | $ | 30,300 | |||||||||
Tax credit carry forwards: | |||||||||||||
Research tax credits | n/a | $ | 10,360 | 2020 to 2033 | |||||||||
Foreign tax credits | n/a | 13,830 | 2020 to 2023 | ||||||||||
State research tax credits | n/a | 2,775 | 2020 to 2028 | ||||||||||
Total credit carry forwards | n/a | $ | 26,965 | ||||||||||
Significant components of deferred tax assets | ' | ||||||||||||
Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax asset: | |||||||||||||
Net operating loss carry forwards | $ | 6,280 | $ | 36,866 | |||||||||
Capitalized technology license | 2,519 | 2,525 | |||||||||||
Capitalized research expenditures | 14,012 | 2,009 | |||||||||||
Accruals and reserves | 2,172 | 1,270 | |||||||||||
Retirement plan | 3,315 | 3,432 | |||||||||||
Deferred revenue | 1,393 | 2,591 | |||||||||||
Tax credit carry forwards | 26,965 | 18,612 | |||||||||||
Stock-based compensation | 1,389 | 1,326 | |||||||||||
Other | 1,329 | 1,091 | |||||||||||
59,374 | 69,722 | ||||||||||||
Valuation allowance | (12,598 | ) | (69,711 | ) | |||||||||
Deferred tax assets | 46,776 | 11 | |||||||||||
Deferred tax liability: | |||||||||||||
Subpart F income | (6,070 | ) | — | ||||||||||
Deferred tax liabilities | (6,070 | ) | — | ||||||||||
Net deferred tax assets | $ | 40,706 | $ | 11 | |||||||||
QUARTERLY_SUPPLEMENTAL_FINANCI1
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||||||
Quarterly supplemental financial data (unaudited) | ' | ||||||||||||||||||||
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2013 (in thousands, except per share data): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar-13 | June 30, 2013 (1) | 30-Sep-13 | December 31, 2013 (1) | Total | |||||||||||||||||
Revenue | $ | 14,976 | $ | 49,359 | $ | 32,826 | $ | 49,478 | (2) | $ | 146,639 | ||||||||||
Net (loss) income | $ | (4,758 | ) | $ | 15,382 | $ | 5,542 | $ | 57,886 | (3) | $ | 74,052 | |||||||||
Net (loss) income per common share: | |||||||||||||||||||||
Basic | $ | (0.10 | ) | $ | 0.34 | $ | 0.12 | $ | 1.26 | $ | 1.61 | ||||||||||
Diluted | $ | (0.10 | ) | $ | 0.33 | $ | 0.12 | $ | 1.24 | $ | 1.59 | ||||||||||
_______________________________________________ | |||||||||||||||||||||
(1) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. | |||||||||||||||||||||
(2) Includes $1.5 million of revenue that was recognized relating to cash payments received in a prior year that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer (see Note 2). | |||||||||||||||||||||
Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2012 (in thousands, except per share data): | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
31-Mar-12 | June 30, 2012 (1) | 30-Sep-12 | December 31, 2012 (1) | Total | |||||||||||||||||
Revenue | $ | 12,620 | $ | 29,987 | $ | 12,504 | $ | 28,133 | (2) | $ | 83,244 | ||||||||||
Net (loss) income | $ | (1,221 | ) | $ | 10,964 | $ | (5,468 | ) | $ | 5,385 | (3) | $ | 9,660 | ||||||||
Net (loss) income per common share: | |||||||||||||||||||||
Basic | $ | (0.03 | ) | $ | 0.24 | $ | (0.12 | ) | $ | 0.12 | $ | 0.21 | |||||||||
Diluted | $ | (0.03 | ) | $ | 0.23 | $ | (0.12 | ) | $ | 0.12 | $ | 0.21 | |||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Jul. 17, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Plextronics, Inc. [Member] | Certificates of deposit [Member] | Certificates of deposit [Member] | Commercial paper [Member] | Corporate bonds [Member] | Corporate bonds [Member] | U.S. Government bonds [Member] | U.S. Government bonds [Member] | Convertible notes [Member] | Convertible notes [Member] | Convertible notes [Member] | Convertible notes [Member] | Other Capitalized Property Plant and Equipment [Member] | Other Capitalized Property Plant and Equipment [Member] | Other Capitalized Property Plant and Equipment [Member] | Fair value of stock warrant liability reclassified to shareholders' equity upon exercise [Member] | Fair value of stock warrant liability reclassified to shareholders' equity upon exercise [Member] | Fair value of stock warrant liability reclassified to shareholders' equity upon exercise [Member] | |||
Plextronics, Inc. [Member] | Private Company [Member] | |||||||||||||||||||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other non-cash activities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $420,000 | $165,000 | $0 | $0 | $0 | $14,850,000 |
Cash equivalents, Amortized Cost | ' | ' | ' | 11,358,000 | 7,562,000 | 2,997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, Unrealized Gains | ' | ' | ' | 2,000 | 3,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, Unrealized Losses | ' | ' | ' | -16,000 | -5,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents, Aggregate Fair Market Value | ' | ' | ' | 11,344,000 | 7,560,000 | 2,997,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale debt securities, Amortized Cost | 4,000,000 | ' | ' | ' | ' | ' | 190,738,000 | 141,349,000 | 3,074,000 | 3,098,000 | 4,300,000 | 4,300,000 | 4,000,000 | 300,000 | ' | ' | ' | ' | ' | ' |
Available-for-sale securities, Unrealized Gains | ' | ' | ' | ' | ' | ' | 33,000 | 9,000 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale securities, Unrealized Losses | ' | ' | ' | ' | ' | ' | -48,000 | -25,000 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Available-for-sale Securities, Fair Value Disclosure | ' | ' | ' | ' | ' | ' | 190,723,000 | 141,333,000 | 3,074,000 | 3,098,000 | 4,300,000 | 4,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term investments, Amortized Cost | 209,470,000 | 159,306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term investments, Unrealized Gains | 35,000 | 12,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term investments, Unrealized Losses | -64,000 | -30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments | $209,441,000 | $159,288,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Joint development, term of agreement (in years) | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible promissory note stated interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 5.00% | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative financial instruments, stock warrant liability [Member] | Convertible notes [Member] | Convertible notes [Member] | Convertible notes [Member] | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Fair value measured on a recurring basis | Total carrying value [Member] | Total carrying value [Member] | |||
Quoted prices in active markets (Level 1) [Member] | Quoted prices in active markets (Level 1) [Member] | Significant other observable inputs (Level 2) [Member] | Significant other observable inputs (Level 2) [Member] | Significant unobersvable inputs (Level 3) [Member] | Significant unobersvable inputs (Level 3) [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | ' | ' | ' | ' | ' | ' | $7,600 | $63,863 | $0 | $0 | $0 | $0 | $7,600 | $63,863 |
Short-term investments | ' | ' | ' | ' | ' | ' | 202,024 | 154,018 | 0 | 0 | 0 | 4,000 | 202,024 | 158,018 |
Long-term investments | ' | ' | ' | ' | ' | ' | 3,117 | 970 | 0 | 0 | 4,300 | 300 | 7,417 | 1,270 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of notes, beginning of year | ' | ' | ' | 4,300 | 4,300 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Investments | 0 | 4,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of notes, end of year | ' | ' | ' | 4,300 | 4,300 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of stock warrant liability, beginning of year | ' | ' | 10,660 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss for period | ' | ' | -4,190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrants exercised | ' | ' | 14,850 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of stock warrant liability, end of year | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '30 years |
Building Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '15 years |
Office, Lab Equipment and Furniture and Fixtures [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '3 years |
Office, Lab Equipment and Furniture and Fixtures [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '7 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock Warrant Liability (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Loss on stock warrant liability | $0 | $0 | $4,190 |
Accounting Standards Codification 815 [Member] | ' | ' | ' |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ' | ' | ' |
Loss on stock warrant liability | ' | ' | $4,200 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Net Loss Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $57,886,000 | $5,542,000 | $15,382,000 | ($4,758,000) | $5,385,000 | ($5,468,000) | $10,964,000 | ($1,221,000) | $74,052,000 | $9,660,000 | $3,155,000 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding - Basic (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 45,898,019 | 45,951,276 | 43,737,968 |
Effect of dilutive shares: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock equivalents arising from stock options and ESPP (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 458,574 | 648,661 | 956,803 |
Restricted stock awards and units (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 187,012 | 283,665 | 445,623 |
Weighted average common shares outstanding - Diluted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 46,543,605 | 46,883,602 | 45,140,394 |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $1.26 | $0.12 | $0.34 | ($0.10) | $0.12 | ($0.12) | $0.24 | ($0.03) | $1.61 | $0.21 | $0.07 |
Diluted (in dollars per share) | $1.24 | $0.12 | $0.33 | ($0.10) | $0.12 | ($0.12) | $0.23 | ($0.03) | $1.59 | $0.21 | $0.07 |
Anti-dilutive shares excluded from the calculation of diluted net loss per common share (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 140,839 | 212,941 | 586,972 |
Deferred revenue [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenue under license agreements not yet executed or deemed effective | 4,300,000 | ' | ' | ' | 0 | ' | ' | ' | 4,300,000 | 0 | ' |
Deferred revenue, revenue recognized | 1,500,000 | ' | ' | ' | 1,900,000 | ' | ' | ' | 1,500,000 | 1,900,000 | ' |
License fee agreement, term of agreement (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '6 years 4 months 24 days | ' | ' |
Accounts receivable [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unbilled receivables, current | 92,000 | ' | ' | ' | 308,000 | ' | ' | ' | 92,000 | 308,000 | ' |
Research and Development [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Development and operations in the Company’s facilities | ' | ' | ' | ' | ' | ' | ' | ' | 23,491,000 | 21,381,000 | 18,707,000 |
Costs incurred under sponsored research agreements | ' | ' | ' | ' | ' | ' | ' | ' | 2,671,000 | 2,058,000 | 1,022,000 |
PPG OLED Materials Agreement (Note 7) | ' | ' | ' | ' | ' | ' | ' | ' | 7,470,000 | 6,170,000 | 3,539,000 |
Scientific Advisory Board compensation | ' | ' | ' | ' | ' | ' | ' | ' | 583,000 | 423,000 | 861,000 |
Research and Development Expense, Total | ' | ' | ' | ' | ' | ' | ' | ' | $34,215,000 | $30,032,000 | $24,129,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Significant Noncash Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' |
Unrealized (loss) gain on available-for-sale securities | ($10,000) | ($31,000) | ($1,000) |
Cash paid for income taxes | 6,600,000 | 5,300,000 | 2,000,000 |
Common stock issued to Board of Directors and Scientific Advisory Board that was earned in a previous period [Member] | ' | ' | ' |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' |
Other non-cash activities | 315,000 | 328,000 | 300,000 |
Common stock issued to employees that was accrued for in a previous period, net of shares withheld for taxes [Member] | ' | ' | ' |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' |
Other non-cash activities | 282,000 | 252,000 | 1,113,000 |
Fair value of stock warrant liability reclassified to shareholders’ equity upon exercise [Member] | ' | ' | ' |
Other Significant Noncash Transactions [Line Items] | ' | ' | ' |
Other non-cash activities | $0 | $0 | $14,850,000 |
RESEARCH_AND_LICENSE_AGREEMENT1
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN (Details) (USD $) | 12 Months Ended | 120 Months Ended | 36 Months Ended | 32 Months Ended | 44 Months Ended | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jul. 31, 2007 | Apr. 30, 2009 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
1997 Research Agreement [Member] | 2006 Research Agreement - Original Term [Member] | 2006 Research Agreement - Extended Term [Member] | 2006 Research Agreement - Extended Term [Member] | 2006 Research Agreement - Extended Term [Member] | 1997 Amended License Agreement [Member] | 1997 Amended License Agreement [Member] | 1997 Amended License Agreement [Member] | ||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of agreement (in years) | ' | ' | ' | '10 years | '3 years | '4 years | ' | ' | ' | ' | ' |
Research and development expense incurred | ' | ' | ' | ' | $5,000,000 | ' | $670,000 | ' | ' | ' | ' |
Maximum obligation | ' | ' | ' | ' | ' | ' | ' | 7,900,000 | ' | ' | ' |
Royalty rate for licensed products sold by the Company (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' |
Royalty rate for licensed products sold by the Company's sublicenses (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' |
Minimum royalty payment per year | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Royalty expense | 3,273,000 | 2,073,000 | 1,360,000 | ' | ' | ' | ' | ' | 3,200,000 | 2,100,000 | 1,200,000 |
Minimum investment per year | ' | ' | ' | ' | ' | ' | ' | ' | ' | $800,000 | ' |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $37,649 | $32,521 | ' |
Less: Accumulated depreciation | -22,756 | -20,713 | ' |
Property and equipment, net | 14,893 | 11,808 | ' |
Depreciation expense | 2,044 | 1,978 | 1,451 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 820 | 820 | ' |
Building and improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 15,605 | 11,652 | ' |
Office and lab equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 20,055 | 19,056 | ' |
Furniture and fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 423 | 374 | ' |
Construction-in-progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $746 | $619 | ' |
ACQUIRED_TECHNOLOGY_Details
ACQUIRED TECHNOLOGY (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 10, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2012 | |
PD LD, Inc [Member] | PD LD, Inc [Member] | Motorola [Member] | Motorola [Member] | Motorola [Member] | Motorola [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | FUJIFILM [Member] | ||||
Licensing Agreements [Member] | Licensing Agreements [Member] | Patents [Member] | Patents [Member] | Patents [Member] | Patents [Member] | ||||||||||
patent | Minimum [Member] | ||||||||||||||
patent | |||||||||||||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired technology, gross | $126,852,000 | $126,492,000 | ' | $1,481,000 | $1,481,000 | $15,909,000 | $15,909,000 | ' | ' | $109,462,000 | $109,102,000 | ' | ' | ' | ' |
Less: Accumulated amortization | -32,841,000 | -21,868,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired technology, net | 94,011,000 | 104,624,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents under license agreement | ' | ' | ' | ' | ' | ' | ' | ' | 74 | ' | ' | ' | ' | ' | ' |
Assigned value of acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | 440,000 | ' | ' | ' | 105,000,000 | ' | ' | ' |
Amortization period of acquired intangible assets (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 6 months | ' | ' | ' | ' | ' | ' |
FUJIFILM Patent Acquisition [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patents acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 |
Assigned value of acquired intangible assets | ' | ' | ' | ' | ' | ' | ' | 440,000 | ' | ' | ' | 105,000,000 | ' | ' | ' |
Cash paid for OLED patents | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | ' | ' | ' |
OLED patents useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' |
Amortization of intangibles | 10,973,000 | 4,869,000 | 49,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | 4,800,000 | ' |
Finite-Lived Intangible Assets, Future Amortization Expense [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 10,999,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 10,999,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 10,999,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 10,999,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 10,979,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Thereafter | 39,036,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquired technology, net | $94,011,000 | $104,624,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Compensation | $7,977 | $5,196 |
Royalties | 3,243 | 2,069 |
Consulting | 338 | 337 |
Professional fees | 458 | 1,302 |
Research and development agreements | 2,158 | 1,130 |
Inventory | 1,564 | 0 |
Other | 301 | 360 |
Accrued expenses | $16,039 | $10,394 |
EQUITY_AND_CASH_COMPENSATION_U1
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS (Details) (USD $) | Dec. 31, 2013 | Oct. 01, 2000 | Oct. 01, 2000 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Development Arrangement [Member] | Supply Agreement [Member] | New OLED Materials Agreement and OLED Materials Agreement [Member] | New OLED Materials Agreement and OLED Materials Agreement [Member] | New OLED Materials Agreement and OLED Materials Agreement [Member] | ||
Long-term Purchase Commitment [Line Items] | ' | ' | ' | ' | ' | ' |
Long-term Purchase Commitment, Agreement Period | ' | '5 years | '7 years | ' | ' | ' |
Percent Of Services Payable In Cash Or Shares | 50.00% | ' | ' | ' | ' | ' |
Minimum average closing price of common stock (in dollars per share) | ' | ' | ' | $20 | ' | ' |
Issuance of common stock in connection with materials and license agreements (in shares) | ' | ' | ' | 0 | ' | 181 |
Charges to expense for issuance of common stock in connection with materials and license agreements | ' | ' | ' | ' | ' | $9,000 |
Charges to expense for cash portion of reimbursement of expenses | ' | ' | ' | $7,500,000 | $6,200,000 | $3,500,000 |
PREFERRED_STOCK_Details
PREFERRED STOCK (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 1995 | Dec. 31, 2013 | Dec. 31, 2012 | |
board_member | Series A Nonconvertible Preferred Stock [Member] | Series A Nonconvertible Preferred Stock [Member] | Series A Nonconvertible Preferred Stock [Member] | ||
vote_per_share | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Preferred Stock, shares authorized ( in shares) | 5,000,000 | 5,000,000 | ' | ' | ' |
Issuance of common stock through a public offering, net of expenses (in shares) | ' | ' | 200,000 | ' | ' |
Preferred Stock, liquidation value per share (in dollars per share) | ' | ' | ' | $7.50 | $7.50 |
Number Of Board Members Elected By Class A Shareholders | 2 | ' | ' | ' | ' |
Series A Shareholder Votes Per Share | 1 | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_Details
SHAREHOLDERS' EQUITY (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||
Nov. 14, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2011 | |
Common Stock [Member] | |||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' |
Stock repurchase program, authorized amount | $50,000,000 | ' | ' | ' | ' |
Stock repurchase program, authorized period | '12 months | ' | ' | ' | ' |
Shares repurchased during the period | ' | 195,599 | 205,902 | ' | ' |
Treasury Stock, Value, Acquired, Cost Method | ' | 5,500,000 | 5,200,000 | ' | ' |
Issuance of common stock through a public offering, net of expenses (in shares) | ' | ' | ' | ' | 5,750,000 |
Sale price of common stock (in dollars per share) | ' | ' | ' | ' | $46 |
Proceeds from issuance of common stock through a public offering | ' | ' | ' | ' | 249,600,000 |
Issuance of common stock through a public offering, expenses | ' | ' | ' | $14,871,000 | $14,900,000 |
SHAREHOLDERS_EQUITY_Deferred_C
SHAREHOLDERS' EQUITY - Deferred Compensation Arrangement (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Mar. 31, 2012 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employees and Non Employee Members of Scientific Advisory Board [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | Employees and Non Employee Members of Scientific Advisory Board [Member] | Employees [Member] | Employees [Member] | Employees [Member] | Non Employee Members of Scientific Advisory Board [Member] | Non Employee Members of Scientific Advisory Board [Member] | Non Employee Members of Scientific Advisory Board [Member] | ||||
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock from warrant exercises (in shares) | ' | ' | 586,972 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from warrant exercises | ' | ' | $7,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares issued (in shares) | ' | ' | ' | 22,568 | 16,866 | 59,472 | ' | ' | ' | ' | ' | ' |
Fair value of shares issued | ' | ' | ' | ' | ' | ' | 435,000 | 376,000 | 1,800,000 | 300,000 | 300,000 | 300,000 |
Shares withheld for tax withholding obligations (in shares) | ' | ' | ' | ' | ' | ' | 4,672 | 3,070 | 18,792 | ' | ' | ' |
Fair value of shares withheld for tax withholding obligations | $2,800,000 | $3,500,000 | $3,400,000 | ' | ' | ' | $154,000 | $124,000 | $655,000 | ' | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | $895 | ($473) | ($419) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 439 | [1] | 628 | [1] | 600 | [1] |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -5,702 | -5,857 | -6,038 | |||
Other comprehensive income (loss) | -1,334 | -155 | -181 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -4,368 | -5,702 | -5,857 | |||
Unrealized gain (loss) on marketable securities [Member] | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -6 | -31 | -1 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | [1] | 0 | [1] | 0 | [1] |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -18 | 13 | 14 | |||
Unrealized gain (loss) on marketable securities, change during period | -6 | -31 | -1 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -24 | -18 | 13 | |||
Actuarial loss on retirement plan [Member] | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 901 | [2] | -442 | [2] | -418 | [2] |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 439 | [1],[2] | 628 | [1],[2] | 600 | [1],[2] |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | -5,684 | [2] | -5,870 | [2] | -6,052 | [2] |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Net of Tax | 1,340 | [2] | 186 | [2] | 182 | [2] |
Accumulated Other Comprehensive Income (Loss), Net of Tax | ($4,344) | [2] | ($5,684) | [2] | ($5,870) | [2] |
[1] | The Company reclassified amortization of prior service cost and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income in the amounts of $439,000, $628,000 and $600,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
[2] | Refer to Note 12: Supplemental Executive Retirement Plan. |
STOCKBASED_COMPENSATION_Stock_
STOCK-BASED COMPENSATION, Stock Options (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Stock Options [Member] | ' |
Stock option activity [Roll Forward] | ' |
Outstanding at January 1 (in shares) | 828,230 |
Granted (in shares) | 0 |
Exercised (in shares) | -252,081 |
Forfeited (in shares) | 0 |
Cancelled (in shares) | -5,666 |
Outstanding at December 31 (in shares) | 570,483 |
Stock option activity, additional disclosures [Abstract] | ' |
Outstanding at January 1, Weighted average exercise price (in dollars per share) | $11.58 |
Granted, Weighted average exercise price (in dollars per share) | $0 |
Exercised, Weighted average exercise price (in dollars per share) | $14.22 |
Forfeited, Weighted average exercise price (in dollars per share) | $0 |
Cancelled, Weighted average exercise price (in dollars per share) | $7.39 |
Outstanding at December 31, Weighted average exercise price (in dollars per share) | $10.43 |
Stock option activity, vested and expected to vest [Abstract] | ' |
Vested and expected to vest (in shares) | 570,483 |
Exercisable at December 31 (in shares) | 570,483 |
Vested and expected to vest, Weighted average exercise price (in dollars per share) | $10.43 |
Exercisable, Weighted average exercise price (in dollars per share) | $10.43 |
Stock Options [Member] | Maximum [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expiration term (in years) | '10 years |
Equity Compensation Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized (in shares) | 8,000,000 |
Number of shares available for grant (in shares) | 1,301,170 |
STOCKBASED_COMPENSATION_Stock_1
STOCK-BASED COMPENSATION, Stock Options Outstanding And Exercisable (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Outstanding and Exercisable [Abstract] | ' | ' | ' | |
Number of Options Outstanding at December 31 (in shares) | 570,483 | ' | ' | |
Weighted Average Remaining Contractual Life (Years) | '1 year 7 months 6 days | ' | ' | |
Weighted Average Exercise Price | $10.43 | ' | ' | |
Aggregate Intrinsic Value | $13,651,000 | [1] | ' | ' |
Lower range limit (in dollars per share) | ' | $5.91 | ' | |
Upper range limit (in dollars per share) | ' | $18.34 | ' | |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' | |
Shares tendered to net share settle (in shares) | 20,768 | 5,878 | 32,800 | |
Fair value of shares withheld for tax withholding obligations | 2,800,000 | 3,500,000 | 3,400,000 | |
$5.91–9.04 [Member] | ' | ' | ' | |
Outstanding and Exercisable [Abstract] | ' | ' | ' | |
Number of Options Outstanding at December 31 (in shares) | 197,430 | ' | ' | |
Weighted Average Remaining Contractual Life (Years) | '1 year | ' | ' | |
Weighted Average Exercise Price | $8.15 | ' | ' | |
Aggregate Intrinsic Value | 5,176,000 | [1] | ' | ' |
Lower range limit (in dollars per share) | ' | $5.91 | ' | |
Upper range limit (in dollars per share) | ' | $9.04 | ' | |
9.43-14.16 [Member] | ' | ' | ' | |
Outstanding and Exercisable [Abstract] | ' | ' | ' | |
Number of Options Outstanding at December 31 (in shares) | 294,936 | ' | ' | |
Weighted Average Remaining Contractual Life (Years) | '2 years | ' | ' | |
Weighted Average Exercise Price | $10.55 | ' | ' | |
Aggregate Intrinsic Value | 7,023,000 | [1] | ' | ' |
Lower range limit (in dollars per share) | ' | $9.43 | ' | |
Upper range limit (in dollars per share) | ' | $14.16 | ' | |
14.39–18.34 [Member] | ' | ' | ' | |
Outstanding and Exercisable [Abstract] | ' | ' | ' | |
Number of Options Outstanding at December 31 (in shares) | 78,117 | ' | ' | |
Weighted Average Remaining Contractual Life (Years) | '1 year 4 months 24 days | ' | ' | |
Weighted Average Exercise Price | $15.77 | ' | ' | |
Aggregate Intrinsic Value | 1,452,000 | [1] | ' | ' |
Lower range limit (in dollars per share) | ' | $14.39 | ' | |
Upper range limit (in dollars per share) | ' | $18.34 | ' | |
Stock Options [Member] | ' | ' | ' | |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' | |
Total intrinsic value of stock awards exercised | 4,900,000 | 7,500,000 | 25,000,000 | |
Compensation expense | 0 | 0 | 0 | |
Value of shares tendered to net share settle exercise of options | 1,000,000 | 245,000 | 1,300,000 | |
Shares withheld for tax withholding obligations (in shares) | 7,599 | 15,066 | 13,031 | |
Fair value of shares withheld for tax withholding obligations | $274,000 | $628,403 | $438,000 | |
[1] | The difference between the stock option’s exercise price and the closing price of the common stock at December 31, 2013. |
STOCKBASED_COMPENSATION_Equity
STOCK-BASED COMPENSATION, Equity Instruments Other Than Options (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Fair value of shares withheld for tax withholding obligations | $2,800,000 | $3,500,000 | $3,400,000 |
Restricted Stock and Units [Member] | ' | ' | ' |
Equity instruments other than options [Roll Forward] | ' | ' | ' |
Outstanding at January 1 (in shares) | 620,971 | ' | ' |
Granted (in shares) | 168,182 | ' | ' |
Vested (in shares) | -261,257 | ' | ' |
Cancelled (in shares) | -1,300 | ' | ' |
Outstanding at December 31 (in shares) | 526,596 | 620,971 | ' |
Equity instruments other than options, additional disclosures [Abstract] | ' | ' | ' |
Outstanding at January 1, Base price (in dollars per share) | $24 | ' | ' |
Granted, Base price (in dollars per share) | $32.76 | ' | ' |
Vested, Base price (in dollars per share) | $23.46 | ' | ' |
Cancelled, Base price (in dollars per share) | $27.70 | ' | ' |
Outstanding at December 31, Base price (in dollars per share) | $27.05 | $24 | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Shares withheld for tax withholding obligations (in shares) | 89,635 | 90,929 | 83,089 |
Weighted average grant-date fair value of restricted stock awards and units fully vested (in dollars per share) | ' | $37.95 | $35.21 |
Restricted Stock and Units [Member] | Minimum [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Restricted stock awards and units vesting terms | '1 year | ' | ' |
Restricted Stock and Units [Member] | Maximum [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Restricted stock awards and units vesting terms | '6 years | ' | ' |
Restricted Stock and Units [Member] | Selling, General and Adminstrative Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 3,800,000 | 2,900,000 | 3,000,000 |
Restricted Stock and Units [Member] | Research and Development Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 1,900,000 | 1,300,000 | 1,700,000 |
Performance Shares [Member] | ' | ' | ' |
Equity instruments other than options [Roll Forward] | ' | ' | ' |
Outstanding at January 1 (in shares) | 0 | ' | ' |
Granted (in shares) | 35,776 | ' | ' |
Vested (in shares) | 0 | ' | ' |
Cancelled (in shares) | 0 | ' | ' |
Outstanding at December 31 (in shares) | 35,776 | ' | ' |
Equity instruments other than options, additional disclosures [Abstract] | ' | ' | ' |
Outstanding at January 1, Base price (in dollars per share) | $0 | ' | ' |
Granted, Base price (in dollars per share) | $47.78 | ' | ' |
Vested, Base price (in dollars per share) | $0 | ' | ' |
Cancelled, Base price (in dollars per share) | $0 | ' | ' |
Outstanding at December 31, Base price (in dollars per share) | $47.78 | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Total fair value of performance unit awards granted | 1,400,000 | ' | ' |
Performance Shares [Member] | Selling, General and Adminstrative Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 453,000 | ' | ' |
Performance Shares [Member] | Research and Development Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | 137,000 | ' | ' |
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' |
Equity instruments other than options [Roll Forward] | ' | ' | ' |
Granted (in shares) | ' | ' | 24,000 |
Equity instruments other than options, additional disclosures [Abstract] | ' | ' | ' |
Fair value of SARs at December 31, Weighted Average Grant-Date Fair Value (in dollars per share) | ' | ' | $1.93 |
Stock appreciation rights, fair value assumptions [Abstract] | ' | ' | ' |
Dividend yield rate | 0.00% | ' | ' |
Expected volatility | 23.40% | ' | ' |
Risk-free interest rates | 0.02% | ' | ' |
Expected life | '7 days | ' | ' |
Stock Appreciation Rights (SARs) [Member] | Selling, General and Adminstrative Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | ' | 1,000 | 13,000 |
Stock Appreciation Rights (SARs) [Member] | Research and Development Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | ' | 3,000 | 32,000 |
Cash payments on settlement of SARs | ' | 49,000 | ' |
Common Stock [Member] | ' | ' | ' |
Equity instruments other than options [Roll Forward] | ' | ' | ' |
Granted (in shares) | 123 | 1,755 | 3,196 |
Common Stock [Member] | Research and Development Expense [Member] | ' | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Compensation expense | $3,000 | $67,000 | $129,000 |
Performance-Based Vesting Requirement [Member] | Performance Shares [Member] | ' | ' | ' |
Equity instruments other than options [Roll Forward] | ' | ' | ' |
Granted (in shares) | 17,888 | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Restricted stock awards and units vesting terms | '2 years | ' | ' |
Market-Based Vesting Requirement [Member] | Performance Shares [Member] | ' | ' | ' |
Equity instruments other than options [Roll Forward] | ' | ' | ' |
Granted (in shares) | 17,888 | ' | ' |
Stock-based compensation, aggregate disclosures [Abstract] | ' | ' | ' |
Restricted stock awards and units vesting terms | '2 years | ' | ' |
STOCKBASED_COMPENSATION_Employ
STOCK-BASED COMPENSATION, Employee Stock Purchase Plan (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 25, 2009 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Proceeds from common stock issued | $343,000 | $321,000 | $307,000 | ' |
Employee Stock Purchase Plan (ESPP) [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Reserved for issuance (in shares) | ' | ' | ' | 1,000,000 |
Purchase period (in months) | '3 months | ' | ' | ' |
Percentage of market value (in hundredths) | 85.00% | ' | ' | ' |
Maximum allocation of base compensation (in hundredths) | 10.00% | ' | ' | ' |
Maximum shares per purchase date (in shares) | 12,500 | ' | ' | ' |
Maximum value per calendar year, per employee | 25,000 | ' | ' | ' |
Common stock issued (in shares) | 14,366 | 11,667 | 10,531 | ' |
Proceeds from common stock issued | 343,000 | 321,000 | 307,000 | ' |
Employee Stock Purchase Plan (ESPP) [Member] | Selling, General and Adminstrative Expense [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Charges to expense | 36,000 | 26,000 | 31,000 | ' |
Employee Stock Purchase Plan (ESPP) [Member] | Research and Development Expense [Member] | ' | ' | ' | ' |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | ' | ' | ' | ' |
Charges to expense | $71,000 | $78,000 | $76,000 | ' |
STOCKBASED_COMPENSATION_Deferr
STOCK-BASED COMPENSATION Deferred Compensation Arrangement (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Deferred Compensation Arrangement with Employees and Non Employees, Share Based Payments [Line Items] | ' | ' | ' |
Fair value of shares withheld for tax withholding obligations | $2,800,000 | $3,500,000 | $3,400,000 |
Director [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Employees and Non Employees, Share Based Payments [Line Items] | ' | ' | ' |
Vesting period | '1 year | ' | ' |
Fair value of shares issued | $525,000 | $532,000 | $816,000 |
Deferred Compensation Arrangement with Individual, Shares Issued | 20,000 | 20,000 | 20,000 |
SUPPLEMENTAL_EXECUTIVE_RETIREM2
SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
multiple | ||||
denominator | ||||
participant | ||||
Change in benefit obligation: | ' | ' | ' | ' |
Noncurrent liability | ' | $9,436,000 | $9,837,000 | ' |
Supplemental Executive Retirement Plan [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Number of participants | ' | 6 | ' | ' |
Factor used to determine annual base salary | ' | 12 | ' | ' |
Annual base salary period (in months) | ' | '24 months | ' | ' |
Age of participant (in years) | ' | '65 years | ' | ' |
Minimum period of service (in years) | ' | '20 years | ' | ' |
Benefit percentage, tier one (in hundredths) | ' | 50.00% | ' | ' |
Benefit percentage, tier two (in hundredths) | ' | 25.00% | ' | ' |
Benefit percentage, tier three (in hundredths) | ' | 15.00% | ' | ' |
Minimum period of service for prorated benefit (in years) | ' | '15 years | ' | ' |
Factor used to determine prorated benefit | ' | 20 | ' | ' |
Installment period (in years) | ' | '10 years | ' | ' |
Benefit percentage for special participants (in hundredths) | ' | 50.00% | ' | ' |
Initial prior service cost for retirement plan | ' | 5,600,000 | ' | ' |
Prior service cost expected to be amortized in next fiscal year | 584,000 | 584,000 | ' | ' |
Change in benefit obligation: | ' | ' | ' | ' |
Benefit obligation, beginning of year | 9,436,000 | 9,837,000 | 8,423,000 | ' |
Service cost | ' | 646,000 | 601,000 | 542,000 |
Interest cost | ' | 343,000 | 371,000 | 385,000 |
Actuarial (gain) loss | ' | 1,390,000 | -442,000 | ' |
Benefit obligation, end of year | ' | 9,436,000 | 9,837,000 | 8,423,000 |
Fair value of plan assets | ' | 0 | 0 | ' |
Unfunded status of the plan, end of year | ' | 9,436,000 | 9,837,000 | ' |
Current liability | ' | 0 | 0 | ' |
Noncurrent liability | ' | 9,436,000 | 9,837,000 | ' |
Accumulated benefit obligation | ' | 8,000,000 | 8,000,000 | ' |
Components of net periodic pension cost [Abstract] | ' | ' | ' | ' |
Service cost | ' | 646,000 | 601,000 | 542,000 |
Interest cost | ' | 343,000 | 371,000 | 385,000 |
Amortization of prior service cost | ' | 584,000 | 584,000 | 584,000 |
Amortization of loss | ' | 92,000 | 44,000 | 16,000 |
Total net periodic benefit cost | ' | 1,665,000 | 1,600,000 | 1,527,000 |
Assumptions used to determine the year end benefit obligation [Abstract] | ' | ' | ' | ' |
Discount rate (in hundredths) | ' | 4.51% | 3.49% | ' |
Rate of compensation increases (in hundredths) | ' | 3.50% | 3.50% | ' |
Assumptions used to determine the net periodic pension cost [Abstract] | ' | ' | ' | ' |
Discount rate (in hundredths) | ' | 3.49% | 4.44% | 5.44% |
Rate of compensation increases (in hundredths) | ' | 3.50% | 3.50% | 3.50% |
Defined benefit plan threshold of benefit obligation at which actuarial losses are amortized (in hundredths) | ' | 10.00% | ' | ' |
Estimated amounts to be amortized from accumulated other comprehensive loss in next fiscal year [Abstract] | ' | ' | ' | ' |
Amortization of prior service cost | -584,000 | -584,000 | ' | ' |
Amortization of loss | ' | 0 | ' | ' |
Total | ' | 584,000 | ' | ' |
Benefit payments currently expected to be paid [Abstract] | ' | ' | ' | ' |
2014 | ' | 0 | ' | ' |
2015 | ' | 336,000 | ' | ' |
2016 | ' | 403,000 | ' | ' |
2017 | ' | 816,000 | ' | ' |
2018 | ' | 853,000 | ' | ' |
2019-2023 | ' | 5,256,000 | ' | ' |
Thereafter | ' | $14,438,000 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (Commitment With Executive Officers [Member]) | Dec. 31, 2013 |
multiple | |
executive_officer | |
Commitment With Executive Officers [Member] | ' |
Loss Contingencies [Line Items] | ' |
Number of executive officers under agreement | 6 |
Multiple of sum of average annual base salary and bonus agreement terms | 2 |
CONCENTRATION_OF_RISK_Revenues
CONCENTRATION OF RISK, Revenues and Accounts Receivable (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Total Revenue [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||||||||||
Government Contracts Concentration Risk [Member] | Government Contracts Concentration Risk [Member] | Government Contracts Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Geographic Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | Customer Concentration Risk [Member] | |||||||||||||
Major Customer A [Member] | Major Customer A [Member] | Major Customer A [Member] | Major Customer B [Member] | Major Customer B [Member] | Major Customer B [Member] | Major Customer C [Member] | Major Customer C [Member] | Major Customer C [Member] | Major Customer A [Member] | Major Customer A [Member] | Major Customer A [Member] | Major Customer B [Member] | Major Customer B [Member] | Major Customer B [Member] | Major Customer C [Member] | Major Customer C [Member] | Major Customer C [Member] | |||||||||||||||||||
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue | $49,478 | [1] | $32,826 | $49,359 | $14,976 | $28,133 | $12,504 | $29,987 | $12,620 | $146,639 | $83,244 | $61,289 | $1,100 | $3,400 | $5,800 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration risk, percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 4.00% | 9.00% | 60.00% | 68.00% | 51.00% | 22.00% | 5.00% | 11.00% | 9.00% | 6.00% | 18.00% | 99.00% | 95.00% | 89.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Accounts receivable | $15,657 | ' | ' | ' | $8,657 | ' | ' | ' | $15,657 | $8,657 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $7,337 | $6,257 | $5,208 | $2,905 | $867 | $845 | $4,743 | $0 | $63 | |
Concentration risk, additional characteristic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'outside of North America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | ncludes $1.5 million of revenue that was recognized relating to cash payments received in a prior year that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer (see Note 2). |
CONCENTRATION_OF_RISK_Revenues1
CONCENTRATION OF RISK, Revenues by Geographic Area (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | $49,478 | [1] | $32,826 | $49,359 | $14,976 | $28,133 | $12,504 | $29,987 | $12,620 | $146,639 | $83,244 | $61,289 |
UNITED STATES | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 1,552 | 3,893 | 6,842 | |
South Korea [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 102,948 | 61,960 | 38,582 | |
Japan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 40,539 | 13,666 | 15,005 | |
Taiwan [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 904 | 3,074 | 643 | |
Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 696 | 651 | 217 | |
All Countries [Domain] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Concentration Risk [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $145,087 | $79,351 | $54,447 | |
[1] | ncludes $1.5 million of revenue that was recognized relating to cash payments received in a prior year that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer (see Note 2). |
CONCENTRATION_OF_RISK_LongLive
CONCENTRATION OF RISK, Long-Lived Assets by Geographic Area (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Supplier Concentration Risk [Member] | UNITED STATES | UNITED STATES | Other [Member] | Other [Member] | ||
supplier | |||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Total long-lived assets | $14,893 | $11,808 | ' | $14,660 | $11,512 | $233 | $296 |
Number of suppliers from which chemical materials were purchased | ' | ' | 1 | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Components of income tax expense (benefit) continuing operations [Line Items] | ' | ' | ' | ' |
Valuation Allowances and Reserves, Period Increase (Decrease) | ($59,352,000) | ' | ' | ' |
Components of income (loss) before income taxes [Abstract] | ' | ' | ' | ' |
United States | 57,258,000 | 20,069,000 | 3,729,000 | ' |
Foreign | -18,250,000 | -5,201,000 | -1,288,000 | ' |
INCOME BEFORE INCOME TAXES | 39,008,000 | 14,868,000 | 2,441,000 | ' |
Current income tax benefit (expense): | ' | ' | ' | ' |
Federal | 226,000 | -225,000 | 0 | ' |
State | 0 | 0 | 2,660,000 | ' |
Foreign | -6,600,000 | -4,994,000 | -1,946,000 | ' |
Current income tax benefit (expense) | -6,374,000 | -5,219,000 | 714,000 | ' |
Deferred income tax (expense) benefit: | ' | ' | ' | ' |
Federal | -16,811,000 | 0 | 0 | ' |
State | -1,192,000 | 0 | 0 | ' |
Foreign | 69,000 | 11,000 | 0 | ' |
Deferred income tax expense, gross | -17,934,000 | 11,000 | 0 | ' |
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 59,352,000 | 0 | 0 | ' |
Income tax benefit (expense) | 35,044,000 | -5,208,000 | 714,000 | ' |
Reconciliation of the statutory U.S. federal tax rate to the effective tax rate [Abstract] | ' | ' | ' | ' |
Statutory U.S. federal income tax rate | 35.00% | 34.00% | 34.00% | ' |
State income taxes, net of federal benefit | -1.30% | -2.30% | 8.10% | ' |
State apportionment change | 0.30% | 23.80% | 0.00% | ' |
U.S. federal rate change | -3.60% | 0.00% | 0.00% | ' |
Effect of foreign operations | 10.90% | 7.10% | 17.90% | ' |
Subpart F income | 15.60% | 0.00% | 0.00% | ' |
Nondeductible employee compensation | 2.30% | 4.20% | 6.90% | ' |
Loss on stock warrant liability | 0.00% | 0.00% | 58.40% | ' |
Research tax credits | -3.40% | 0.00% | -34.70% | ' |
Change in valuation allowance | -146.40% | -29.30% | -182.20% | ' |
Sale of New Jersey tax attributes | 0.00% | 0.00% | 50.80% | ' |
Other | 0.80% | -2.50% | 11.50% | ' |
Effective tax rate | -89.80% | 35.00% | -29.30% | ' |
Tax Deduction | 99,745,000 | ' | ' | ' |
Tax Benefit, Loss carrforwards | 30,300,000 | ' | ' | ' |
Tax Benefit, Tax credit carryforward | 26,965,000 | 18,612,000 | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Net operating loss carry forwards | 6,280,000 | 36,866,000 | ' | ' |
Capitalized technology license | 2,519,000 | 2,525,000 | ' | ' |
Capitalized research expenditures | 14,012,000 | 2,009,000 | ' | ' |
Accruals and reserves | 2,172,000 | 1,270,000 | ' | ' |
Retirement plan | 3,315,000 | 3,432,000 | ' | ' |
Deferred revenue | 1,393,000 | 2,591,000 | ' | ' |
Stock-based compensation | 1,389,000 | 1,326,000 | ' | ' |
Other | 1,329,000 | 1,091,000 | ' | ' |
Deferred Tax Assets, Gross | 59,374,000 | 69,722,000 | ' | ' |
Valuation allowance | -12,598,000 | -69,711,000 | ' | ' |
Deferred tax assets | 46,776,000 | 11,000 | ' | ' |
Deferred Tax Liabilities, Foreign Controlled Corporation | -6,070,000 | 0 | ' | ' |
Period of exemption on withholding tax on royalty payments | ' | ' | ' | '5 years |
Withholding tax rate for royalty payments | ' | 16.50% | ' | ' |
Proceeds from sale of operating losses and tax credits | ' | ' | 2,700,000 | ' |
Deferred Tax Liabilities, Gross | -6,070,000 | 0 | ' | ' |
Deferred Tax Assets, Net | 40,706,000 | 11,000 | ' | ' |
Deferred Income Tax Expense (Benefit) | -41,418,000 | -11,000 | 0 | ' |
Windfalls included in net operating loss carryforwards | 68,600,000 | 63,800,000 | ' | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | 57,100,000 | 4,400,000 | 4,500,000 | ' |
Federal [Member] | ' | ' | ' | ' |
Reconciliation of the statutory U.S. federal tax rate to the effective tax rate [Abstract] | ' | ' | ' | ' |
Tax Deduction | 79,150,000 | ' | ' | ' |
Tax Benefit, Loss carrforwards | 27,702,000 | ' | ' | ' |
Federal [Member] | Minimum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Loss carry forwards, expiration date | ' | 31-Dec-20 | ' | ' |
Federal [Member] | Maximum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Loss carry forwards, expiration date | ' | 31-Dec-30 | ' | ' |
Federal [Member] | Research tax credit [Member] | ' | ' | ' | ' |
Reconciliation of the statutory U.S. federal tax rate to the effective tax rate [Abstract] | ' | ' | ' | ' |
Tax Benefit, Tax credit carryforward | 10,360,000 | ' | ' | ' |
Federal [Member] | Research tax credit [Member] | Minimum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards, expiration date | ' | 31-Dec-20 | ' | ' |
Federal [Member] | Research tax credit [Member] | Maximum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards, expiration date | ' | 31-Dec-31 | ' | ' |
State [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Operating loss carryforwards sold | ' | ' | 45,200,000 | ' |
State [Member] | Minimum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Loss carry forwards, expiration date | ' | 31-Dec-14 | ' | ' |
State [Member] | Maximum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Loss carry forwards, expiration date | ' | 31-Dec-30 | ' | ' |
State [Member] | Research tax credit [Member] | ' | ' | ' | ' |
Reconciliation of the statutory U.S. federal tax rate to the effective tax rate [Abstract] | ' | ' | ' | ' |
Tax Benefit, Tax credit carryforward | 2,775,000 | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards sold | ' | ' | 232,000 | ' |
State [Member] | Research tax credit [Member] | Minimum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards, expiration date | ' | 31-Dec-20 | ' | ' |
State [Member] | Research tax credit [Member] | Maximum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards, expiration date | ' | 31-Dec-27 | ' | ' |
Foreign [Member] | ' | ' | ' | ' |
Reconciliation of the statutory U.S. federal tax rate to the effective tax rate [Abstract] | ' | ' | ' | ' |
Tax Deduction | 20,595,000 | ' | ' | ' |
Tax Benefit, Loss carrforwards | 2,598,000 | ' | ' | ' |
Tax Benefit, Tax credit carryforward | 13,830,000 | ' | ' | ' |
Foreign [Member] | Minimum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards, expiration date | ' | 31-Dec-20 | ' | ' |
Foreign [Member] | Maximum [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Tax credit carryforwards, expiration date | ' | 31-Dec-22 | ' | ' |
South Korea [Member] | ' | ' | ' | ' |
Current income tax benefit (expense): | ' | ' | ' | ' |
Foreign | ' | -6,600,000 | -4,900,000 | -1,900,000 |
UDC Ireland [Member] | ' | ' | ' | ' |
Deferred tax asset: | ' | ' | ' | ' |
Deferred Income Tax Expense (Benefit) | $6,100,000 | ' | ' | ' |
DEFINED_CONTRIBUTION_PLAN_Deta
DEFINED CONTRIBUTION PLAN (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Maximum contribution percentage (in hundredths) | 15.00% | ' | ' |
Matching percentage (in hundredths) | 50.00% | ' | ' |
Matching contribution limit (in hundredths) | 6.00% | ' | ' |
Contributions to the 401(k) Plan | $290 | $270 | $251 |
QUARTERLY_SUPPLEMENTAL_FINANCI2
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Revenue | $49,478,000 | [1] | $32,826,000 | $49,359,000 | $14,976,000 | $28,133,000 | $12,504,000 | $29,987,000 | $12,620,000 | $146,639,000 | $83,244,000 | $61,289,000 |
Net (loss) income | 57,886,000 | 5,542,000 | 15,382,000 | -4,758,000 | 5,385,000 | -5,468,000 | 10,964,000 | -1,221,000 | 74,052,000 | 9,660,000 | 3,155,000 | |
Net income loss per common share [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Basic (in dollars per share) | $1.26 | $0.12 | $0.34 | ($0.10) | $0.12 | ($0.12) | $0.24 | ($0.03) | $1.61 | $0.21 | $0.07 | |
Diluted (in dollars per share) | $1.24 | $0.12 | $0.33 | ($0.10) | $0.12 | ($0.12) | $0.23 | ($0.03) | $1.59 | $0.21 | $0.07 | |
Revenue recognized relating to cash payments received | 1,500,000 | ' | ' | ' | 1,900,000 | ' | ' | ' | 1,500,000 | 1,900,000 | ' | |
Reversal of accrued bonus compensation | ' | ' | ' | ' | $703,000 | ' | ' | ' | ' | ' | ' | |
[1] | ncludes $1.5 million of revenue that was recognized relating to cash payments received in a prior year that were creditable against license fees and/or royalties for which the Company determined there was no appreciable likelihood of executing a commercial license agreement with the customer (see Note 2). |