Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | UNIVERSAL DISPLAY CORP \PA\ | ||
Entity Central Index Key | 1,005,284 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 46,980,978 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,364,820,879 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 139,365 | $ 97,513 |
Short-term investments | 188,644 | 297,981 |
Accounts receivable | 24,994 | 24,729 |
Inventory | 17,314 | 12,748 |
Deferred income taxes | 8,661 | 12,326 |
Other current assets | 6,392 | 2,387 |
Total current assets | 385,370 | 447,684 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $32,167 and $27,897 | 27,203 | 22,407 |
ACQUIRED TECHNOLOGY, net of accumulated amortization of $70,714 and $54,837 | 152,127 | 72,015 |
OTHER INTANGIBLE ASSETS, net of accumulated amortization of $615 and none | 16,225 | |
GOODWILL | 15,535 | |
INVESTMENTS | 14,960 | 2,187 |
DEFERRED INCOME TAXES | 15,832 | 14,945 |
OTHER ASSETS | 307 | 174 |
TOTAL ASSETS | 627,559 | 559,412 |
CURRENT LIABILITIES: | ||
Accounts payable | 8,112 | 6,849 |
Accrued expenses | 19,845 | 17,387 |
Deferred revenue | 10,282 | 10,107 |
Other current liabilities | 1,967 | 167 |
Total current liabilities | 40,206 | 34,510 |
DEFERRED REVENUE | 31,322 | 35,543 |
RETIREMENT PLAN BENEFIT LIABILITY | 27,563 | 22,594 |
Total liabilities | 99,091 | 92,647 |
COMMITMENTS AND CONTINGENCIES (Note 16) | ||
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, 48,270,990 and 48,132,223 shares issued, and 46,913,127 and 46,774,360 shares outstanding at December 31, 2016 and December 31, 2015, respectively | 483 | 482 |
Additional paid-in capital | 604,364 | 589,885 |
Accumulated deficit | (25,557) | (73,627) |
Accumulated other comprehensive loss | (10,666) | (9,819) |
Treasury stock, at cost (1,357,863 shares at December 31, 2016 and December 31, 2015) | (40,158) | (40,158) |
Total shareholders’ equity | 528,468 | 466,765 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 627,559 | $ 559,412 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 32,167,000 | $ 27,897,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 70,714,000 | 54,837,000 |
Other Finite-Lived Intangible Assets, Accumulated Amortization | $ 615,000 | $ 0 |
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) | 48,270,990 | 48,132,223 |
Common Stock, shares outstanding (in shares) | 46,913,127 | 46,774,360 |
Treasury Stock | ||
Treasury stock, shares | 1,357,863 | 1,357,863 |
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 INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
REVENUE: | |||
Material sales | $ 99,285 | $ 113,066 | $ 126,885 |
Royalty and license fees | 96,132 | 77,773 | 63,192 |
Contract research services | 3,469 | 207 | 954 |
Total revenue | 198,886 | 191,046 | 191,031 |
COST OF SALES | 26,288 | 62,997 | 41,315 |
Gross margin | 172,598 | 128,049 | 149,716 |
OPERATING EXPENSES: | |||
Research and development | 42,744 | 44,641 | 41,154 |
Selling, general and administrative | 32,876 | 29,046 | 28,135 |
Amortization of acquired technology and other intangible assets | 16,493 | 10,999 | 10,997 |
Patent costs | 6,249 | 5,717 | 6,291 |
Royalty and license expenses | 5,823 | 5,370 | 4,519 |
Total operating expenses | 104,185 | 95,773 | 91,096 |
OPERATING INCOME | 68,413 | 32,276 | 58,620 |
Interest income, net | 2,113 | 783 | 707 |
Other (expense) income, net | (1,928) | ||
Interest and other (expense) income, net | 185 | 783 | 707 |
INCOME BEFORE INCOME TAXES | 68,598 | 33,059 | 59,327 |
INCOME TAX EXPENSE | (20,528) | (18,381) | (17,473) |
NET INCOME | $ 48,070 | $ 14,678 | $ 41,854 |
Net income per common share: | |||
Basic | $ 1.02 | $ 0.31 | $ 0.90 |
Diluted | $ 1.02 | $ 0.31 | $ 0.90 |
Weighted average shares used in computing net income per common share: | |||
Basic | 46,408,460 | 46,816,394 | 46,252,960 |
Diluted | 46,535,980 | 47,494,188 | 46,685,145 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
NET INCOME | $ 48,070 | $ 14,678 | $ 41,854 |
OTHER COMPREHENSIVE LOSS, NET OF TAX: | |||
Unrealized loss on available-for-sale securities, net of tax of $72, $46, and $3, respectively | (135) | (83) | (4) |
Employee benefit plan: | |||
Actuarial loss on retirement plan, net of tax of $945, $218, and none, respectively | (1,731) | (388) | (385) |
Plan amendment cost, net of tax of none, $3,305, and none, respectively | (5,963) | ||
Amortization of plan amendment cost, prior service cost and actuarial loss for retirement plan included in net periodic pension costs, net of tax of $591, $553, and $209, respectively | 1,084 | 997 | 375 |
Net change for employee benefit plan | (647) | (5,354) | (10) |
Change in cumulative foreign currency translation adjustment | (65) | ||
TOTAL OTHER COMPREHENSIVE LOSS | (847) | (5,437) | (14) |
COMPREHENSIVE INCOME | $ 47,223 | $ 9,241 | $ 41,840 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Unrealized loss on available-for-sale securities, tax | $ 72,000 | $ 46,000 | $ 3,000 |
Actuarial loss on retirement plan, tax | 945,000 | 218,000 | 0 |
Plan amendment cost, tax | 0 | 3,305,000 | 0 |
Amortization of prior service cost and actuarial loss for retirement plan included in net periodic pension costs, tax | $ 591,000 | $ 553,000 | $ 209,000 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Series A Nonconvertible Preferred Stock [Member]Preferred Stock [Member] |
BALANCE (in shares) at Dec. 31, 2013 | 46,825,168 | 401,501 | 200,000 | ||||
BALANCE at Dec. 31, 2013 | $ 427,686 | $ 468 | $ 572,401 | $ (130,159) | $ (4,368) | $ (10,658) | $ 2 |
Net income | 41,854 | 41,854 | |||||
Other comprehensive loss | (14) | (14) | |||||
Repurchase of Common stock (in shares) | 956,362 | ||||||
Repurchase of Common Stock | (29,500) | $ (29,500) | |||||
Exercise of common stock options (in shares) | 184,798 | ||||||
Exercise of common stock options | 1,887 | $ 3 | 1,884 | ||||
Issuance of common stock to employees (in shares) | 83,834 | ||||||
Issuance of common stock to employees | 8,027 | $ 1 | 8,026 | ||||
Shares withheld for employee taxes (in shares) | (83,831) | ||||||
Shares withheld for employee taxes | (2,844) | $ (1) | (2,843) | ||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | 39,484 | ||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board | 1,318 | 1,318 | |||||
Issuance of common stock to employees under an ESPP (in shares) | 12,373 | ||||||
Issuance of common stock to employees under an ESPP | 328 | 328 | |||||
BALANCE (in shares) at Dec. 31, 2014 | 47,061,826 | 1,357,863 | 200,000 | ||||
BALANCE at Dec. 31, 2014 | 448,742 | $ 471 | 581,114 | (88,305) | (4,382) | $ (40,158) | $ 2 |
Net income | 14,678 | 14,678 | |||||
Other comprehensive loss | (5,437) | (5,437) | |||||
Exercise of common stock options (in shares) | 340,725 | ||||||
Exercise of common stock options | 2,034 | $ 3 | 2,031 | ||||
Issuance of common stock to employees (in shares) | 798,036 | ||||||
Issuance of common stock to employees | 10,047 | $ 8 | 10,039 | ||||
Shares withheld for employee taxes (in shares) | (124,961) | ||||||
Shares withheld for employee taxes | (5,337) | (5,337) | |||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | 44,351 | ||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board | 1,591 | 1,591 | |||||
Issuance of common stock to employees under an ESPP (in shares) | 12,246 | ||||||
Issuance of common stock to employees under an ESPP | 447 | 447 | |||||
BALANCE (in shares) at Dec. 31, 2015 | 48,132,223 | 1,357,863 | 200,000 | ||||
BALANCE at Dec. 31, 2015 | 466,765 | $ 482 | 589,885 | (73,627) | (9,819) | $ (40,158) | $ 2 |
Net income | 48,070 | 48,070 | |||||
Other comprehensive loss | $ (847) | (847) | |||||
Exercise of common stock options (in shares) | 12,750 | 12,750 | |||||
Exercise of common stock options | $ 185 | 185 | |||||
Issuance of common stock to employees (in shares) | 165,826 | ||||||
Issuance of common stock to employees | 12,356 | $ 2 | 12,354 | ||||
Shares withheld for employee taxes (in shares) | (92,241) | ||||||
Shares withheld for employee taxes | (4,871) | $ (1) | (4,870) | ||||
Excess tax benefits from share-based payment arrangements | 4,232 | 4,232 | |||||
Issuance of common stock to Board of Directors and Scientific Advisory Board (in shares) | 43,046 | ||||||
Issuance of common stock to Board of Directors and Scientific Advisory Board | 2,012 | 2,012 | |||||
Issuance of common stock to employees under an ESPP (in shares) | 9,386 | ||||||
Issuance of common stock to employees under an ESPP | 566 | 566 | |||||
BALANCE (in shares) at Dec. 31, 2016 | 48,270,990 | 1,357,863 | 200,000 | ||||
BALANCE at Dec. 31, 2016 | $ 528,468 | $ 483 | $ 604,364 | $ (25,557) | $ (10,666) | $ (40,158) | $ 2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 48,070 | $ 14,678 | $ 41,854 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization of deferred revenue | (7,406) | (8,994) | (4,274) |
Depreciation | 4,270 | 3,086 | 2,077 |
Amortization of intangibles | 16,492 | 10,999 | 10,997 |
Inventory write-down | 33,000 | 3,900 | |
Amortization of premium and discount on investments, net | (1,830) | (697) | (531) |
Stock-based compensation to employees | 11,374 | 9,173 | 7,278 |
Stock-based compensation to Board of Directors and Scientific Advisory Board | 1,715 | 1,291 | 995 |
Deferred income tax benefit | 3,094 | 7,137 | 9,108 |
Excess tax benefits from share-based payment arrangements | (4,232) | ||
Retirement plan benefit expense | 3,965 | 3,354 | 1,679 |
Decrease (increase) in assets, net of effect of acquisition: | |||
Accounts receivable | 1,205 | (2,654) | (6,418) |
Inventory | (4,460) | (8,639) | (30,414) |
Other current assets | (3,870) | 1,969 | 2,267 |
Other assets | (133) | 251 | (183) |
Increase (decrease) in liabilities, net of effect of acquisition: | |||
Accounts payable and accrued expenses | 4,362 | 790 | 3,055 |
Other current liabilities | 4,362 | 56 | 87 |
Deferred revenue | 3,360 | 48,812 | 5,793 |
Net cash provided by operating activities | 80,338 | 113,612 | 47,270 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (7,300) | (5,103) | (6,153) |
Purchase of intangibles | (95,989) | ||
Purchase of business, net of cash acquired | (33,380) | ||
Purchases of investments | (450,277) | (691,876) | (408,974) |
Proceeds from sale of investments | 548,474 | 638,411 | 372,818 |
Net cash used in investing activities | (38,472) | (58,568) | (42,309) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock | 439 | 354 | 328 |
Repurchase of common stock | (29,500) | ||
Proceeds from the exercise of common stock options | 185 | 2,034 | 1,887 |
Payment of withholding taxes on stock-based compensation to employees | (4,870) | (5,337) | (2,844) |
Net cash used in financing activities | (14) | (2,949) | (30,129) |
Excess tax benefits from share-based payment arrangements | 4,232 | ||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 41,852 | 52,095 | (25,168) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 97,513 | 45,418 | 70,586 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 139,365 | $ 97,513 | $ 45,418 |
Earnout liability recorded for Adesis acquisition | $ 1,670 |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS Non-Cash Activities - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Significant Noncash Transactions [Line Items] | |||
Unrealized loss on available-for-sale securities | $ (207) | $ (129) | $ (7) |
Net change in accruals for purchases of property and equipment | (103) | 467 | 965 |
Earnout liability recorded for Adesis acquisition | 1,670 | ||
Excess tax benefits accrued in other current liabilities | (4,232) | ||
Cash paid for income tax, net | 12,870 | 10,364 | 8,275 |
Common Stock Issued to the Board of Directors and Scientific Advisory Board Earned and Accrued in a Previous Period [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Other significant noncash transaction, value of consideration received | 300 | 300 | 323 |
Common Stock Issued to Employees Earned and Accrued in Previous Period Net of Shares Withheld for Taxes [Member] | |||
Other Significant Noncash Transactions [Line Items] | |||
Other significant noncash transaction, value of consideration received | $ 1,105 | $ 967 | $ 749 |
BUSINESS
BUSINESS | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
BUSINESS | 1. BUSINESS: Universal Display Corporation (the Company) is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display and solid-state lighting applications. OLEDs are thin, lightweight and power-efficient solid-state devices that emit light that can be manufactured on both flexible and rigid substrates, making them highly suitable for use in full-color displays and as lighting products. OLED displays are capturing a growing share of the display market. The Company believes this is because OLEDs offer potential advantages over competing display technologies with respect to power efficiency, contrast ratio, viewing angle, video response time, form factor and manufacturing cost. The Company also believes that OLED lighting products have the potential to replace many existing light sources in the future because of their high power efficiency, excellent color rendering index, low operating temperature and novel form factor. The Company's technology leadership and intellectual property position should enable it to share in the revenues from OLED displays and lighting products as they enter mainstream consumer and other markets. The Company's primary business strategy is to (1) further develop and license its proprietary OLED technologies to manufacturers of products for display applications, such as mobile phones, televisions, tablets, wearables, portable media devices, notebook computers, personal computers, and automotive interiors, and specialty and general lighting products; and (2) develop new OLED materials and sell existing and any new materials to those product manufacturers. The Company has established a significant portfolio of proprietary OLED technologies and materials, primarily through internal research and development efforts and acquisitions of patents and patent applications, as well as maintaining its relationships with world-class partners such as Princeton University (Princeton), the University of Southern California (USC), the University of Michigan (Michigan) and PPG Industries, Inc. (PPG Industries). The Company currently owns, exclusively licenses or has the sole right to sublicense more than 4,200 patents issued and pending worldwide. The Company sells its proprietary OLED materials to customers for evaluation and use in commercial OLED products. The Company also enters into agreements with manufacturers of OLED display and lighting products under which it grants them licenses to practice under its patents and to use the Company's proprietary know-how. At the same time, the Company works with these and other companies who are evaluating the Company's OLED technologies and materials for possible use in commercial OLED display and lighting products. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
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., UDC Ireland Limited, Universal Display Corporation Hong Kong, Limited, Universal Display Corporation Korea, Y.H., Universal Display Corporation Japan GK, Universal Display Corporation China, Ltd. and Adesis, Inc. (Adesis). All intercompany transactions and accounts have been eliminated. Business Combinations Accounting for acquisitions requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which is when all information necessary is obtained not to exceed one year, adjustments may be recorded to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of income. 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 intangibles, the use and recoverability of inventories, intangibles and income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. Cash and Cash Equivalents 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 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 and license fees. 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 allowance for doubtful accounts was $0.1 million at December 31, 2016, and none at December 31 2015 and 2014. Inventories Inventories consist of raw materials, work-in-process and finished goods, including inventory consigned to customers, and are stated at the lower of cost, determined on a first-in, first-out basis, or market. Inventory valuation and firm committed purchase order assessments are performed on a quarterly basis and those items that are identified to be obsolete or in excess of forecasted usage are written down to their estimated realizable value. Estimates of realizable value are based upon management’s analyses and assumptions, including, but not limited to, forecasted sales levels by product, expected product lifecycle, product development plans and future demand requirements. A 12-month rolling forecast based on factors, including, but not limited to, production cycles, anticipated product orders, marketing forecasts, backlog, and shipment activities is used in the inventory analysis. If market conditions are less favorable than forecasts or actual demand from customers is lower than estimates, additional inventory write-downs may be required. If demand is higher than expected, inventories that had previously been written down may be sold. Certain of the Company’s customers have assumed the responsibility for maintaining the Company's inventory at their location based on the customers' demand forecast. Notwithstanding the fact that the Company builds and ships the inventory, the customer does not purchase the consigned inventory until the inventory is drawn or pulled by the customer to be used in the manufacture of the customer’s product. Though the consigned inventory may be at the customer’s physical location, it remains inventory owned by the Company until the inventory is drawn or pulled, which is the time at which the sale takes place. Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the estimated useful life of thirty years for building, fifteen 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. Major renewals and improvements are capitalized and minor replacements, maintenance, and repairs are charged to current operations as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss is reflected in other operating expenses. Certain costs of computer software obtained for internal use are capitalized and amortized on a straight-line basis over three years. Costs for maintenance and training, as well as the cost of software that does not add functionality to an existing system, are expensed as incurred. 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, 2016, 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, 2015 or 2014. Goodwill and Purchased Intangible Assets Goodwill is tested for impairment in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. If it is determined that goodwill has been impaired, then its carrying value is written down to fair value. The goodwill impairment test involves a two-step process. The first step, identifying a potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be conducted; otherwise, no further steps are necessary as no potential impairment exists. If necessary, the second step to measure the impairment loss would be to compare the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss. The Company performed its annual impairment assessment as of December 31, 2016 utilizing a qualitative evaluation and concluded that it was more likely than not that the fair value of Adesis (see Note 3) is greater than its carrying value. The Company believes it has made reasonable estimates and assumptions to calculate the fair value of the reporting unit. If actual future results are not consistent with management’s estimates and assumptions, the Company may have to take an impairment charge in the future related to goodwill. Future impairment tests will continue to be performed annually in the fiscal fourth quarter, or sooner if a triggering event occurs. As of December 31, 2016, no indications of impairment exist. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. 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. Fair Value Measurements Fair value is defined as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability, and are based on market data obtained from sources independent of the Company. Unobservable inputs reflect assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. 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 title passes, which is typically at the time of shipment or at the time of delivery, 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. These payments may include royalty and license fees made pursuant to license agreements and certain commercial supply agreements. Amounts received are deferred and classified as either current or non-current deferred revenue based upon current contractual remaining terms; however, based upon on-going relationships with customers, as well as future agreement extensions and other factors, amounts classified as current as of December 31, 2016 may not be recognized as revenue over the next twelve months. 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. If the Company used different estimates for the useful life of the licensed technology, or if fees are fixed and determinable, reported revenue during the relevant period would differ. Contract research services revenue is revenue earned by performing organic and organometallic synthetics research, development and commercialization on a contractual basis. These services range from intermediates for structure-activity relationship studies, reference agents and building blocks for combinatorial synthesis, re-synthesis of key intermediates, specialty organic chemistry needs, and selective toll manufacturing. These services are provided to third-party pharmaceutical and life sciences firms and other technology firms at fixed costs or on an annual contract basis. Revenue is recognized as services are performed with billing schedules and payment terms negotiated on a contract-by-contract basis. Payments received in excess of revenue recognized are recorded as deferred revenue. In other cases, services may be provided and revenue is recognized before the client is invoiced. In these cases, revenue recognized will exceed amounts billed and the difference, representing amounts which are currently unbillable to the customer pursuant to contractual terms, is recorded as an unbilled receivable. 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. At the same time the Company entered into the current patent license agreement with SDC, the Company also entered into a new supplemental material purchase agreement with SDC. Under the current supplemental material purchase agreement, SDC agrees to purchase from the Company a minimum dollar amount of phosphorescent emitter materials for use in the manufacture of licensed products. This minimum purchase commitment is subject to SDC’s requirements for phosphorescent emitter materials and the Company’s ability to meet these requirements over the term of the supplemental agreement. The minimum purchase amounts increase on an annual basis over the term of the supplemental agreement. These amounts were determined through negotiation based on a number of factors, including, without limitation, estimates of SDC’s OLED business growth as a percentage of published OLED market forecasts and SDC’s projected minimum usage of red and green phosphorescent emitter materials over the term of the agreement. In 2015, the Company entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display) which were effective as of January 1, 2015 and superseded the 2007 commercial supply agreement between the parties. The new agreements have a term that is set to expire by the end of 2022. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under the Company's patent portfolio. The patent license calls for license fees, prepaid royalties and running royalties on licensed products. The prepaid royalty amount is included in deferred revenue and a portion of this amount can be credited against total royalties due over the life of the contract. The agreements include customary provisions relating to warranties, indemnities, confidentiality, assignability and business terms. The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the term of the agreements, as well as minimum royalty revenue to be generated under the patent license agreement. The Company expects to generate revenue under these agreements that are predominantly tied to LG Display’s sales of OLED licensed products. The OLED commercial supply agreement provides for the sale of materials for use by LG Display, which may include phosphorescent emitters and host materials. In 2016, the Company entered into an OLED Technology License Agreement and Commercial Material Supply Agreement with Tianma Micro-electronics Co., Ltd. (Tianma) which were both effective July 21, 2016 and run for five years. Under the license agreement, the Company, through its wholly-owned subsidiary UDC Ireland Limited, has granted Tianma non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on licensed products. Additionally, the agreement provides for the sale of phosphorescent OLED materials to Tianma for use in its licensed products. The Company records taxes billed to customers and remitted to various governmental entities on a gross basis in both revenues and cost of material sales in the consolidated statements of income. The amounts of these pass through taxes reflected in revenues and cost of material sales were $171,000, $1.3 million and $4.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. All sales transactions are billed and due within 90 days and substantially all are transacted in U.S. dollars. Cost of Sales Cost of sales consists of labor and material costs associated with the production of materials processed at the Company's manufacturing partners and at the Company's internal manufacturing processing facilities. The Company’s portion of cost of sales also includes depreciation of manufacturing equipment, as well as manufacturing overhead costs and inventory adjustments for excess and obsolete inventory. Research and Development Expenditures for research and development are charged to operations as incurred. Patent Costs 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 of Acquired Technology Amortization costs relate to technology acquired from BASF, Fujifilm and Motorola. These acquisitions were completed in the years ended December 31, 2016, 2012 and 2011, respectively. Acquisition costs are being amortized over a period of 10 years for the BASF and Fujifilm patents and 7.5 years for the Motorola patents. Amortization of Other Intangible Assets Other intangible assets from the Adesis acquisition are being amortized over a period of 10 to 15 years. See Note 8 for further discussion. 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. 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 consolidated statements of income the grant-date fair value of equity based awards such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units and performance unit awards issued to employees and directors. The grant-date fair value of stock awards is based on the closing price of the stock on the date of grant. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of forfeitures. The Company issues new shares upon the respective grant, exercise or vesting of the share-based payment awards, as applicable. 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 May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard entitled Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No, 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The Company is evaluating the effect that ASU 2016-16 may have on its consolidated financial statements and related disclosures Reclassification A reclassification was made to operating expenses in the consolidated statements of income for the years ended December 31, 2015 and 2014 to include non-cash amortization charges of $10,999 and $10,997, respectively, in amortization of acquired technology and other intangible assets. These amounts were previously included in patents and amortization of acquired technology. This reclassification was made to conform to the current year presentation. The change in classification had no impact on reporting operating income, net income or net income per common share. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | 3. BUSINESS COMBINATIONS: On June 23, 2016, the Company entered into an agreement to acquire Adesis, Inc., a privately held contract research organization (CRO) with 43 employees specializing in organic and organometallic synthetic research, development, and commercialization. Adesis is a technology vendor to companies in the pharmaceutical, fine chemical, biomaterials, and catalyst industries, and has worked with the Company over the last few years to help advance and accelerate a number of the Company’s product offerings. The transaction closed on July 11, 2016. Under the terms of the agreement, the Company’s subsidiary, UDC, Inc., acquired all outstanding shares of Adesis in a merger for $33.9 million in cash, and up to an additional $2.4 million in cash contingent upon Adesis’ achievement of certain milestones within two years of the acquisition. The acquisition was funded through use of existing cash and investments. Preliminary Purchase Price Allocation The Company accounted for Adesis using the acquisition method of accounting in accordance with applicable U.S. GAAP whereby the total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values. The contingent consideration arrangement requires the Company to pay up to $1.2 million of additional consideration to the former shareholders of Adesis if revenues exceed certain threshold levels at the end of each twelve-month period ending December 31, 2016 and December 31, 2017. The fair value of the contingent consideration was derived using a Monte Carlo simulation model based on management’s projections of future revenue levels. The initial accounting for the business combination is not complete because the evaluation necessary to assess the fair values of certain assets acquired is still in process. The following table summarizes the values of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Cash consideration $ 33,872 Contingent consideration 1,670 $ 35,542 Allocation of purchase price: Current assets, including cash of $492 $ 2,204 Property and equipment 1,869 Accounts payable and accrued liabilities (906 ) Net tangible assets 3,167 Identifiable intangible assets 16,840 Goodwill 15,535 Total purchase price $ 35,542 The purchase price exceeded the fair value of the net tangible assets and identifiable intangible assets acquired and, as a result, the Company recorded goodwill in connection with this transaction. This difference includes a going concern element that represents the Company’s ability to earn a higher rate of return on this group of assets than would be expected on the separate assets as determined during the valuation process. Transaction costs of $360,000 for the year ended December 31, 2016 were recorded and charged to selling, general and administrative expense on the accompanying consolidated statements of income. The fair value of the contingent consideration was remeasured at December 31, 2016 to reflect the achievement of the $1.2 million earn-out payment for 2016 and updated analysis of achievement for 2017. The liability was $1.9 million at December 31, 2016, and the $195,000 increase from the $1.7 million recorded in purchase accounting was charged to selling, general and administrative expense in the accompanying consolidated statement of income for the year ended December 31, 2016. Intangible Assets Identified The following table presents the intangible assets identified in the transaction: Category Estimated fair value (in thousands) Estimated useful life (in years) Customer relationships 10,520 11.5 Internally-developed IP, processes and recipes 4,820 15.0 Trade name/Trademarks 1,500 10.0 Total identifiable intangible assets $ 16,840 The preliminary fair value of the customer relationships asset was determined using the income approach through an excess earnings analysis which estimates value based on the present value of future economic benefits. The customer relationships intangible asset represents relationships between Adesis and its customers. The fair value of the internally-developed IP, processes and recipes was determined by utilizing the relief-from-royalty methodology. The preliminary fair value of the Adesis trade name asset was determined using the income approach through a relief-from-royalty analysis. The determination of useful lives was based upon consideration of market participant assumptions and transaction specific factors. Impact on Operating Results The results of Adesis’ operations have been included in the Company’s consolidated financial statements since the July 11, 2016 date of acquisition. The following unaudited pro forma information assumes the acquisition of Adesis occurred at the beginning of the respective periods presented (in thousands): Year Ended December 31, Unaudited Pro Forma Information 2016 2015 Revenue $ 202,547 $ 197,375 Net income 44,718 12,661 The unaudited pro forma information presented is for illustrative purposes only and does not reflect future events that may occur after December 31, 2016, or any operating efficiencies or inefficiencies that may result from the Adesis acquisition. Additionally, this unaudited pro forma information includes certain one-time costs associated with the Company’s integration of the acquired Adesis operations. Therefore, the information is not necessarily indicative of the results that would have been achieved had the business been combined during the periods presented or the results that the Company will experience going forward. |
CASH EQUIVALENTS AND INVESTMENT
CASH EQUIVALENTS AND INVESTMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
CASH EQUIVALENTS AND INVESTMENTS | 4. 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 as of December 31, 2016 and December 31, 2015 consisted of the following (in thousands): Amortized Unrealized Aggregate Investment Classification Cost Gains (Losses) Market Value December 31, 2016 Certificates of deposit $ 3,362 $ 3 $ — $ 3,365 Money market instruments 2,998 — (2 ) 2,996 Corporate bonds 209,595 6 (377 ) 209,224 U.S. Government bonds 32,996 1 (3 ) 32,994 $ 248,951 $ 10 $ (382 ) $ 248,579 December 31, 2015 Certificates of deposit $ 11,532 $ 3 $ (14 ) $ 11,521 Corporate bonds 233,848 — (139 ) 233,709 U.S. Government bonds 54,953 1 (16 ) 54,938 $ 300,333 $ 4 $ (169 ) $ 300,168 At December 31, 2016, corporate bonds of $14,975, and U.S. Government bonds of $30,000 are included in cash equivalents in the Consolidated Balance Sheets. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 5. FAIR VALUE MEASUREMENTS: The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2016 (in thousands): Fair Value Measurements, Using Total carrying value as of December 31, 2016 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents $ 71,773 $ 71,773 $ — $ — Short-term investments 188,644 188,644 — — Long-term investments 14,960 14,960 — — The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2015 (in thousands): Fair Value Measurements, Using Total carrying value as of December 31, 2015 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents $ 34,980 $ 34,980 $ — $ — Short-term investments 297,981 297,981 — — Long-term investments 2,187 2,187 — — 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. 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 an investment is deemed to be other than temporary, the cost 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 investments as of December 31, 2016 or December 31, 2015 |
INVENTORY
INVENTORY | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
INVENTORY | 6. INVENTORY: Inventory consisted of the following (in thousands): December 31, 2016 December 31, 2015 Raw materials $ 6,539 $ 6,539 Work-in-process 3,719 1,064 Finished goods 7,056 5,145 Inventory $ 17,314 $ 12,748 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | 7 . PROPERTY AND EQUIPMENT: Property and equipment consist of the following (in thousands): December 31, 2016 2015 Land $ 820 $ 820 Building and improvements 20,384 19,642 Office and lab equipment 30,728 25,086 Furniture, fixtures and computer related assets 3,097 2,457 Construction-in-progress 4,341 2,299 59,370 50,304 Less: Accumulated depreciation (32,167 ) (27,897 ) Property and equipment, net $ 27,203 $ 22,407 Depreciation expense was $4.3 million, $3.1 million and $2.1 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
Finite Lived Intangible Assets Net [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | 8. GOODWILL AND INTANGIBLE ASSETS: The Company monitors the recoverability of goodwill annually or whenever events or changes in circumstances indicate the carrying value may not be recoverable. Purchased intangible assets subject to amortization consist primarily of acquired technology and other intangible assets that include trade names, customer relationships and internally developed IP processes. Acquired Technology Acquired technology consists of acquired license rights for patents and know-how obtained from PD-LD, Inc., Motorola, BASF SE (BASF) and Fujifilm. These intangible assets consist of the following (in thousands): December 31, 2016 2015 PD-LD, Inc. $ 1,481 $ 1,481 Motorola 15,909 15,909 BASF 95,989 — Fujifilm 109,462 109,462 222,841 126,852 Less: Accumulated amortization (70,714 ) (54,837 ) Acquired technology, net $ 152,127 $ 72,015 Amortization expense related to acquired technology was $15.9 million, $11.0 million, and $11.0 million for the years ended December 31, 2016, 2015, and 2014, respectively. Amortization expense is included in amortization of acquired technology and other intangible assets expense line item on the consolidated statements of income and is expected to be $20.6 million for each of the five subsequent fiscal years. 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 will all expire in the U.S. by 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 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 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, plus costs incurred in connection with the purchase. 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 $4.5 million of purchase costs as acquired technology, which is being amortized over a period of 10 years. BASF Patent Acquisition On June 28, 2016, UDC Ireland entered into and consummated an IP Transfer Agreement with BASF. Under the IP Transfer Agreement, BASF sold to UDC Ireland all of its rights, title and interest to certain of its owned and co-owned intellectual property rights relating to the composition of, development, manufacture and use of OLED materials, including OLED lighting and display stack technology, as well as certain tangible assets. The intellectual property includes knowhow and more than 500 issued and pending patents in the area of phosphorescent materials and technologies. These assets were acquired in exchange for a cash payment of €86.8 million ($95.8 million). In addition, UDC Ireland also took on certain rights and obligations under three joint research and development agreements to which BASF was a party. The IP Transfer Agreement also contains customary representations, warranties and covenants of the parties. UDC Ireland recorded the payment of €86.8 million ($95.8 million) and acquisition costs incurred of $217,000 as acquired technology, which is being amortized over a period of 10 years. Other Intangible Assets As a result of the Adesis acquisition on July 12, 2016, the Company recorded $16.8 million of other intangible assets, including $10.5 million assigned to customer relationships with a weighted average life of 11.5 years, $4.8 million of internally developed IP, processes and recipes with a weighted average life of 15 years, and $1.5 million assigned to trade name and trademarks with a weighted average life of 10 years. December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 10,520 $ (401 ) $ 10,119 Internally-developed IP, processes and recipes 4,820 (146 ) 4,674 Trade name/Trademarks 1,500 (68 ) 1,432 Total identifiable intangible assets $ 16,840 $ (615 ) $ 16,225 Amortization expense related to other intangible assets was $615,000 for the year ended December 31, 2016 and none for both years ended December 31, 2015 and 2014. Amortization expense is included in amortization of acquired technology and other intangible assets expense line item on the consolidated statements of income and is expected to be $1.4 million for each of the five subsequent fiscal years Goodwill As a result of the Adesis acquisition, the Company recorded $15.5 million of goodwill. The Company performs its annual assessment of goodwill during the fourth quarter of the fiscal year unless events suggest an impairment may have been incurred in an interim period. Application of the goodwill impairment test requires the exercise of judgment, including the determination of the fair value of each reporting unit. The Company estimates the fair value of reporting units using an income approach based on the present value of estimated future cash flows. As part of the annual assessment of goodwill completed during the fourth quarter ended December 31, 2016, there were no significant indicators to conclude that an impairment of the goodwill associated with the acquisition of Adesis had occurred. |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
ACCRUED EXPENSES | 9. ACCRUED EXPENSES: Accrued expenses consist of the following (in thousands): December 31, 2016 2015 Compensation $ 10,833 $ 9,885 Royalties 5,823 5,362 Research and development agreements 757 1,389 Consulting 524 407 Professional fees 238 296 Other 1,670 48 $ 19,845 $ 17,387 |
RESEARCH AND LICENSE AGREEMENTS
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN | 12 Months Ended |
Dec. 31, 2016 | |
Research And Development [Abstract] | |
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN | 10. RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN: The Company funded OLED technology research at Princeton University and, on a subcontractor basis, at the University of Southern California for 10 years under a Research Agreement executed with Princeton University in August 1997 (the 1997 Research Agreement). The principal investigator conducting work under the 1997 Research Agreement transferred to the University of 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 the University of Southern California to sponsor OLED technology research and, on a subcontractor basis, with the University of 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 the University of Southern California and the University of Michigan. Payments under the 2006 Research Agreement were made to the University of Southern California 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, 2016, the Company was obligated to pay the University of Southern California up to $1.6 million for work to be actually performed during the remaining extended term, which expires April 30, 2017. From June 1, 2013 through December 31, 2016, the Company incurred $3.9 million in research and development expense for work performed under the 2006 Research Agreement. In connection with entering into the 2006 Research Agreement, the Company amended the 1997 Amended License Agreement to include the University of Michigan as a party to that agreement effective as of January 1, 2006. Under this amendment, Princeton University, the University of Southern California and the University of 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. On October 9, 1997, the Company, Princeton University and the University of Southern California entered into an Amended License Agreement (as amended, the 1997 Amended License Agreement) under which Princeton University and the University of Southern California 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 University and the University of Southern California under the 1997 Research Agreement. Under this 1997 Amended License Agreement, the Company is required to pay Princeton University 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 University 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 University 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 University minimum annual royalties. The minimum royalty payment is $100,000 per year. The Company recorded royalty expense in connection with this agreement of $5.8 million, $5.4 million, and $4.5 million for the years ended December 31, 2016, 2015, and 2014 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. |
EQUITY AND CASH COMPENSATION UN
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS | 12 Months Ended |
Dec. 31, 2016 | |
Long Term Commitment Excluding Unconditional Purchase Obligation [Abstract] | |
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS | 11 . EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS: 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 ran 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 agreement was automatically renewed through December 31, 2017. 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. No shares were issued for services to PPG for the years ended December 31, 2016, 2015, and 2014. 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 recorded research and development expense of $2.3 million, $7.9 million, and $9.2 million for the years ended December 31, 2016, 2015 and 2014, respectively, in relation to the cash portion of the reimbursement of expenses and work performed by PPG Industries, excluding amounts paid for commercial chemicals. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 12. SHAREHOLDERS' EQUITY: 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. As of December 31, 2016, the Company had issued 200,000 shares of preferred stock, all of which were outstanding. Common Stock The Company is authorized to issue 100,000,000 shares of $0.01 par value common stock. Each share of the Company’s common stock entitles the holder to one vote on all matters to be voted upon by the shareholders. As of December 31, 2016, the Company had issued 48,270,990 shares of common stock of which 46,913,127 were outstanding. Scientific Advisory Board and Employee Awards During the first quarters of 2016 and 2015, the Company granted a total of 27,967 and 35,205 shares, respectively, of fully vested common stock to employees and non-employee members of the Scientific Advisory Board for services performed in 2015 and 2014, respectively. The fair value of the shares issued was $1.1 million and $967,000, respectively, for shares issued to employees and $300,000 for both quarters for shares issued to members of the Scientific Advisory Board, which amounts were accrued at December 31, 2015 and 2014, respectively. In connection with the issuance of these grants, 8,106 and 9,565 shares, with fair values of $410,000 and $346,000, were withheld in satisfaction of employee tax withholding obligations in 2016 and 2015, respectively. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended |
Dec. 31, 2016 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | 13. ACCUMULATED OTHER COMPREHENSIVE LOSS: Amounts related to the changes in accumulated other comprehensive loss were as follows (in thousands): Unrealized (loss) on available-for- sale-securities Net unrealized gain (loss) on retirement plan (2) Change in cumulative foreign currency translation adjustment Total Affected line items in the consolidated statements of operations Balance January 1, 2014, net of tax $ (24 ) $ (4,344 ) $ — $ (4,368 ) Other comprehensive loss before reclassification (4 ) (385 ) — (389 ) Reclassification to net income (1) — 375 — 375 Selling, general and administrative, research and development Change during period (4 ) (10 ) — (14 ) Balance December 31 2014, net of tax $ (28 ) $ (4,354 ) $ — $ (4,382 ) Other comprehensive loss before reclassification (83 ) (388 ) — (471 ) Plan amendment cost — (5,963 ) — (5,963 ) Reclassification to net income (1) — 997 — 997 Selling, general and administrative, research and development Change during period (83 ) (5,354 ) — (5,437 ) Balance December 31, 2015, net of tax $ (111 ) $ (9,708 ) $ — $ (9,819 ) Other comprehensive loss before reclassification (135 ) (1,731 ) (65 ) (1,931 ) Reclassification to net income (1) — 1,084 — 1,084 Selling, general and administrative, research and development, and cost of material sales Change during period (135 ) (647 ) (65 ) (847 ) Balance December 31, 2016, net of tax $ (246 ) $ (10,355 ) $ (65 ) $ (10,666 ) (1) The Company reclassified amortization of plan amendment cost, prior service cost, and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income of $1.1 million, $1.0 million, and $375,000 for the years ended December 31, 2016, 2015, and 2014, respectively. (2) Refer to Note 15: Employee Retirement Plans |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK-BASED COMPENSATION | 14. STOCK-BASED COMPENSATION: Equity Compensation Plan In 1995, the Board of Directors of the Company adopted a stock option plan, which was most recently amended and restated in 2014 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, 2016, the Company’s shareholders have approved increases in the number of shares reserved for issuance under the Equity Compensation Plan to 10,500,000, and have extended the term of the plan through 2024. As of December 31, 2016, there were 2,588,837 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, 2016 for all the grants under the Equity Compensation Plan: Options Weighted Average Exercise Price Outstanding at January 1, 2016 16,500 $ 14.83 Granted — — Exercised (12,750 ) 14.51 Forfeited/ Expired (250 ) — Cancelled — — Outstanding at December 31, 2016 3,500 15.99 Vested and expected to vest 3,500 15.99 Exercisable at December 31, 2016 3,500 $ 15.99 No stock options were granted during the years ended December 31, 2016, 2015 or 2014. A summary of stock options outstanding and exercisable by price range at December 31, 2016 is as follows (in thousands, except share and per share data): Outstanding and Exercisable Exercise Price Number of Options Outstanding at December 31, 2016 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value (A) $10.04-$12.70 750 1.7 $ 10.93 $ 34 $14.16-$14.39 250 0.1 $ 14.16 $ 11 $15.22-$18.34 2,500 0.8 $ 17.69 $ 96 Total 3,500 0.93 $ 15.99 $ 141 (A) The difference between the stock option’s exercise price and the closing price of common stock at December 31, 2016. The total intrinsic value of stock options exercised during the years ended December 31, 2016, 2015 and 2014 was $507,000, $12.0 million and $3.7 million, respectively. There was no compensation expense recognized for the years ended December 31, 2016, 2015, and 2014. During the year ended December 31, 2015, 13,959 shares of common stock, with a fair value of $429,000, were tendered to net share settle the exercise of options. During the years ended December 31, 2016 and 2014, no shares of common stock were tendered to net share settle the exercise of options. In connection with the exercise of options during the year ended December 31, 2015, 30,186 shares with a fair value of $1.3 million were withheld in satisfaction of employee tax withholding obligations. Stock Awards The following table summarizes the activity related to restricted stock unit (“RSU”) share based payment awards: Number of Shares Weighted- Average Grant-Date Fair Value Unvested, January 1, 2016 164,674 $ 37.49 Granted 73,793 53.85 Vested (101,739 ) 38.96 Forfeited (5,609 ) 40.34 Unvested, December 31, 2016 131,119 $ 45.44 The weighted average grant-date fair value of RSU awards granted was $53.85, $41.09 and $37.95 during the years ended December 31, 2016, 2015 and 2014, respectively. The fair value as of the respective vesting dates of RSUs was $5.4 million, $5.6 million and $3.1 million for 2016, 2015 and 2014, respectively. The following table summarizes the activity related to restricted stock award (“RSA”) share based payment awards: Number of Shares Weighted- Average Grant-Date Fair Value Unvested, January 1, 2016 787,324 $ 43.43 Granted 124,744 65.37 Vested (162,113 ) 45.48 Forfeited — — Unvested, December 31, 2016 749,955 $ 46.64 The weighted average grant-date fair value of RSA awards granted was $65.37, $43.49 and $32.54 during the years ended December 31, 2016, 2015 and 2014, respectively. The fair value as of the respective vesting dates of RSUs was $8.6 million, $7.3 million and $4.6 million for 2016, 2015 and 2014, 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, 2016, 2015 and 2014, the Company recorded, as compensation charges related to restricted stock awards and units issued to employees and non-employees, selling, general and administrative expense of $6.6 million, $5.8 million, and $3.6 million, manufacturing expense of $1.1 million, $178,000 and $110,000 and research and development expense of $1.7 million, $1.9 million and $1.8 million, respectively. The majority of the Company’s restricted stock awards and units that vested in 2016, 2015 and 2014 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate tax authorities. The total shares withheld were approximately 84,135, 99,345 and 75,760 for 2016, 2015 and 2014, respectively, and were based on the value of the restricted vesting dates as determined by the Company’s closing stock price. Total payments for the employees’ tax obligations to taxing authorities were $4.5 million, $4.2 million and $2.6 million in 2016, 2015 and 2014, respectively, and are reflected as a financing activity within the consolidated statements of cash flows. For the years ended December 31, 2016, 2015 and 2014, the Company recorded as compensation charges related to all restricted stock units to non-employee members of the Scientific Advisory Board whose unvested shares are marked to market each reporting period, research and development expense of $242,000, $426,000 and $175,000, respectively. 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, 2016, 2015 and 2014, 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 and administrative expense of $1.5 million, $865,000 and $797,000, respectively. Restricted stock issued to non-employee members of the Board of Directors during 2016, 2015 and 2014 was 30,000, 29,167 and 23,750 shares, respectively. As of December 31, 2016, the total unrecognized cost related to RSUs and RSAs was $32.3 million, which the Company expects to recognize over a weighted average period of 3.44 years. Performance Unit Awards The following table summarizes the activity related to performance unit awards (“PSU”) share based payment awards: Number of Shares Weighted- Average Grant-Date Fair Value Unvested, January 1, 2016 68,724 $ 34.63 Granted 25,045 58.46 Vested — — Forfeited — — Unvested, December 31, 2016 93,769 $ 46.02 During the years ended December 31, 2016 and 2015, respectively, the Company granted 25,045 and 32,632 performance units, of which 12,520 and 16,315 are subject to performance-based vesting requirements and 12,525 and 16,317 are subject to market-based vesting requirements, and will vest over the terms described below. The weighted average grant date fair value of the performance unit awards granted was $58.46, $35.98 and $38.67 during the years ended December 31, 2016, 2015 and 2014, respectively, as determined by the Company’s common stock on date of grant for the units with performance-based vesting and a Monte-Carlo simulation for the units with market-based vesting. 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 specific performance period. 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 specific performance period. 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 at all. For the years ended December 31, 2016, 2015 and 2014, the Company recorded, as compensation charges related to all performance stock units, selling, general and administrative expense of $1.3 million, $854,000 and $1.4 million, manufacturing expense of $133,000, $17,000 and $28,000 and research and development expenses of $356,000, $237,000 and $408,000, respectively. In connection with the vesting of performance units during the year ended December 31, 2016, no shares were withheld in satisfaction of employee tax withholding obligations. During the year ended December 31, 2015, 16,071 shares with an aggregate fair value of $752,000 were withheld in satisfaction of employee tax withholding obligations. As of December 31, 2016, the total unrecognized compensation cost related to PSUs was $1.6 million, which the Company expects to recognize over a weighted average period of 1.50 years. 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 terminated sooner 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 closing price per share of common stock on the first day of the period or the last business 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 the years ended December 31, 2016, 2015 and 2014, the Company issued 9,386, 12,246 and 12,373 shares, respectively, of its common stock under the ESPP, resulting in proceeds of $439,000, $354,000 and $328,000, respectively. For the years ended December 31, 2016, 2015 and 2014, the Company recorded charges of $45,000, $34,000 and $36,000, respectively, to selling, general and administrative expense, $15,000, $9,000, $8,000, respectively, to manufacturing expense and $67,000, $50,000 and $52,000, respectively, to research and development expense, related to ESPP equal to the amount of the discount and the value of the look-back feature. |
EMPLOYEE RETIREMENT PLANS
EMPLOYEE RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2016 | |
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract] | |
EMPLOYEE RETIREMENT PLANS | 15. EMPLOYEE RETIREMENT PLANS: 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 90% 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, 2016, 2015 and 2014, the Company contributed $459,000 $348,000, and $320,000, respectively, to the Plan. Defined Benefit 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. On March 3, 2015, the Compensation Committee and the Board of Directors amended the SERP to include salary and bonus as part of the plan. Prior to this amendment, the SERP benefit did not take into account any bonuses. 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, 2016 six The SERP benefit is based on a percentage of the participant’s annual base salary and in certain cases, the participant's average annual bonus for the most recent three fiscal years ending prior to the participant's date of termination of employment with the Company for the life of the participant. 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 and bonus 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 and bonus 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 and subsequent amendment of the SERP, the Company recorded cost related to prior service of $12.7 million as accumulated other comprehensive loss as of December 31, 2016. 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, 2017 is $1.8 million. Information relating to the Company’s plan is as follows (in thousands): Year Ended December 31, 2016 2015 Change in benefit obligation: Benefit obligation, beginning of year $ 22,594 $ 10,916 Service cost 1,415 1,186 Interest cost 875 618 Actuarial loss 2,679 606 Plan amendment - 9,268 Benefit obligation, end of year 27,563 22,594 Fair value of plan assets — — Unfunded status of the plan, end of year $ 27,563 $ 22,594 Current liability — — Noncurrent liability $ 27,563 $ 22,594 The accumulated benefit obligation for the plan was approximately $24.7 million and $20.0 million 2016 2015 The components of net periodic pension cost were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Service cost $ 1,415 $ 1,186 $ 669 Interest cost 875 618 426 Amortization of prior service cost 1,660 1,550 584 Amortization of loss 15 — — Total net periodic benefit cost $ 3,965 $ 3,354 $ 1,679 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, 2016 2015 Discount rate 3.57 % 3.78 % Rate of compensation increases 3.50 % 3.50 % Assumptions used to determine the net periodic pension cost were as follows: Year Ended December 31, 2016 2015 2014 Discount rate 3.57 % 3.78 % 4.51 % 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 or credit) is included in the Company’s results of income 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 2017 are as follows (in thousands): Amortization of prior service cost $ 1,660 Amortization of loss 188 Total $ 1,848 Benefit payments, which reflect estimated future service, are currently expected to be paid as follows (in thousands): Year Projected Benefits 2017 $ — 2018 906 2019 2,252 2020 2,375 2021 2,460 2022-2026 16,122 Thereafter 24,429 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 16. 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 10 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 10 for further explanation. The Company has agreements with seven 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. If the executive’s employment is terminated in connection with the change in control, the 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. In order to manage manufacturing lead times and help ensure adequate material supply, the Company entered into a New OLED Materials Agreement (see Note 11) that will allow PPG Industries to procure and produce inventory based upon criteria as defined by the Company. These purchase commitments consist of firm, noncancelable and unconditional commitments. In certain instances, this agreement allows the Company the option to reschedule and adjust the Company’s requirements based on its business needs prior to firm orders being placed. As of December 31, 2016, 2015, and 2014, the Company had purchase commitments for inventory of $5.0 million, $9.0 million, and $9.1 million, respectively. 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 process for requesting and considering such reviews is specific to the jurisdiction that issued the patent in question, and generally does not provide for claims of monetary damages or a review of 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 one or more claims in a 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, as a general matter, 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 OLED technology becomes more established and its patent portfolio increases in size, so will the number of these proceedings. Below are summaries of certain active proceedings that have been commenced against 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 materials 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. 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. An Oral Hearing was held before an European Patent Office (EPO) panel of first instance in Munich, Germany, on April 8-9, 2014. The panel rejected the original claims and amended the claims to comply with EPO requirements by more narrowly defining the scope of the claims. The '870 patent, in its amended form, was held by the panel to comply with the EPO requirements. The Company believes the EPO's decision relating to the broad original claims is erroneous and has appealed the ruling to reinstate a broader set of claims. This patent, as originally granted by the EPO, is deemed valid during the pendency of the appeals process. At this time, based on the Company’s 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. 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 by Semiconductor Energy Laboratory, Co., Ltd. for its Japanese Patent No. JP-4511024 (the JP '024 patent), which was issued on May 14, 2010. 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 Japanese Patent Office (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. The JPO subsequently 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 decision to reinstate a broader set of claims but the IP High Court declined to reinstate the broader claims. The Company appealed the IP High Court's decision to the Japanese Supreme Court for reconsideration of the legal basis of the IP High Court's decision. The Japanese Supreme Court maintained the lower court’s decision and maintained the patent with respect to the narrower set of claims which were not the subject of the IP High Court’s invalidation ruling. 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, and a hearing on this matter was held in December 2015, wherein the EPO Opposition Division revoked the patent claims for alleged insufficiencies under EPC Article 83. The Company believes the EPO's decision relating to the original claims is erroneous, and has appealed the decision. The patent, as originally granted, is deemed valid during the pendency of the appeals process. 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. 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 to the EP ‘637 patent, and, in part, to U.S. Patents 7,001,536, 6,902,830, and 6,830,828, and to JP patents 4358168 and 4357781. 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. On February 26, 2014, the Company appealed the ruling to reinstate a broader set of claims. The patent, as originally granted by the EPO, is deemed to be valid during the pendency of an appeals process. Two of the three opponents also filed their own appeals of the ruling. In January 2015, Sumitomo withdrew its opposition of the '395 patent, and the EPO accepted the withdrawal notice. The appeal proceedings were held in the second quarter of 2016. As a result of the proceedings, the board concluded the oral proceedings and proposed to reinstate a broader set of claims pending the resolution of a remaining question of the applicable law, a question that the board has deferred to the Enlarged Board of Appeals for review. The originally-granted claims remain in force during the pendency of this process. In addition to the above proceedings and now-concluded proceedings which have been referenced in prior filings, from time to time, the Company may have other proceedings that are pending which relate to patents the Company acquired as part of the Fujifilm patent or BASF OLED patent acquisitions or which relate to technologies that are not currently widely utilized in the marketplace. |
CONCENTRATION OF RISK
CONCENTRATION OF RISK | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
CONCENTRATION OF RISK | 17. CONCENTRATION OF RISK: Included in technology development and support revenue in the accompanying consolidated statements of income is $156,000, $185,000, and $118,000 December 31, 2015 2014 1% December 31, 2015 2014 Revenues and accounts receivable from the Company's largest customers for the years ended December 31 were as follows (in thousands): 2016 2015 2014 Customer % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable A 63% $ 12,050 62% $ 13,355 54% $ 8,550 B 28% 9,128 25% 8,477 19% 7,598 C 4% 1,427 1% 1,564 1% 540 Revenues from outside of North America represented approximately 98%, 99%, and 99% December 31, 2015 2014 Year Ended December 31, Country 2016 2015 2014 South Korea $ 181,771 $ 168,267 $ 141,922 China 7,180 2,685 1,260 Japan 4,310 16,542 44,903 Other non-U.S. locations 1,849 2,334 2,240 Total non-U.S. locations $ 195,110 $ 189,828 $ 190,325 United States 3,776 1,218 706 Total revenue $ 198,886 $ 191,046 $ 191,031 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): 2016 2015 United States $ 26,917 $ 22,187 Other 286 220 Total long-lived assets $ 27,203 $ 22,407 Substantially all chemical materials were purchased from one supplier. See Note 11. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 18. INCOME TAXES: The components of income before income taxes are as follows (in thousands): Year ended December 31, 2016 2015 2014 United States $ 69,595 $ 54,338 $ 60,485 Foreign (997 ) (21,279 ) (1,158 ) Income before income tax $ 68,598 $ 33,059 $ 59,327 The components of the income tax expense are as follows (in thousands): Year ended December 31, 2016 2015 2014 Current income tax benefit (expense): Federal $ (4,485 ) $ (1,018 ) $ — State (47 ) (2 ) (2 ) Foreign (12,902 ) (10,224 ) (8,363 ) (17,434 ) (11,244 ) (8,365 ) Deferred income tax (expense) benefit: Federal (2,683 ) (7,145 ) (9,652 ) State (503 ) 51 575 Foreign 92 (43 ) (31 ) (3,094 ) (7,137 ) (9,108 ) Income tax expense $ (20,528 ) $ (18,381 ) $ (17,473 ) Reconciliation of the statutory U.S. federal tax rate to the Company's effective tax rate is as follows: Year ended December 31, 2016 2015 2014 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.5 % (0.1 )% (0.4 )% Effect of foreign operations 0.9 % 15.2 % 0.7 % Accruals and reserves 3.2 % 0.0 % (4.5 )% Nondeductible employee compensation 1.5 % 2.5 % 0.5 % Research tax credits (1.3 )% (4.4 )% (2.5 )% Change in valuation allowance (9.7 )% 8.4 % (0.4 )% Other (0.2 )% (1.0 )% 1.0 % Effective tax rate 29.9 % 55.6 % 29.4 % As of December 31, 2016, 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 tax credit carry forwards relate to tax deductions from stock-based compensation. 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 for tax return purposes at December 31, 2016 (in thousands): Related Tax Deduction Tax Benefit Expiration Date Loss carry forwards: Federal net operating loss $ — $ — Foreign net operating loss 27,473 3,434 n/a Total loss carry forwards $ 27,473 $ 3,434 Tax credit carry forwards: Research tax credits n/a $ 12,696 2027 to 2036 Foreign tax credits n/a 13,754 2023 to 2026 State research tax credits n/a 2,383 2023 to 2030 Total credit carry forwards n/a $ 28,833 The table of carryforwards for tax return purposes includes $75.6 million (tax benefit of $26.9 million) related to excess tax benefits which are not currently included in deferred tax assets on the consolidated balance sheet and are not recognized until the deduction reduces taxes payable (see below). The tax loss and tax credit carryforwards for financial reporting purposes at December 31, 2016 were $3,434 of foreign net operating loss and $1,846 of state research credits. In the first quarter of 2017, the Company will adopt ASU No. 2016-09, Improvements to Employee Share-Based Accounting The Company expects adoption of this standard to result in an increase of $26.9 million in deferred tax assets related to excess tax benefits not previously recognized because the related tax deductions had not reduced income taxes payable. The adjustment will be reflected as an increase to retained earnings as of January 1, 2017. Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax asset: Net operating loss carry forwards $ 3,405 $ 3,716 Capitalized technology license 4,163 3,922 Capitalized research expenditures 8,100 10,206 Accruals and reserves 1,112 3,275 Retirement plan 9,723 8,062 Deferred revenue 516 731 Tax credit carry forwards 1,846 7,973 Stock-based compensation 2,889 2,012 Other 874 1,857 32,628 41,754 Valuation allowance (7,950 ) (14,483 ) Deferred tax assets 24,678 27,271 Deferred tax liability: Acquisition goodwill (185 ) — Deferred tax liabilities (185 ) — Net deferred tax assets $ 24,493 $ 27,271 During 2016, the Company retained the valuation allowance that relates to UDC Ireland and New Jersey research and development credits, but released the valuation allowance related to U.S. foreign tax credits by $6.5 million based on reassessment and tax planning. During the years ended December 31, 2016, 2015 and 2014, the Company paid foreign taxes on South Korean royalty and license fee income of $12.4 million, $9.9 million and $8.3 million, respectively, which were recorded as current income tax expense. SDC has been required to withhold tax at a rate of 16.5% upon payment of royalties and license fees to the Company. |
NET INCOME PER COMMON SHARE
NET INCOME PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
NET INCOME PER COMMON SHARE | 19. NET INCOME PER COMMON SHARE: The Company computes earnings per share in accordance with ASC Topic 260, Earnings per Share Basic net income per common share is computed by dividing net income allocated to common shareholders by the weighted-average number of shares of common stock outstanding for the period excluding unvested restricted stock units and performance units. Net income allocated to the holders of the Company's unvested restricted stock awards is calculated based on the shareholders proportionate share of weighted average shares of common stock outstanding on an if-converted basis. For purposes of determining diluted net income per common share, basic net income per share is further adjusted to include the effect of potential dilutive common shares outstanding, including stock options, 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 year ended December 31, 2016, 2015, and 2014 (in thousands, except share and per share data): Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 48,070 14,678 41,854 Adjustment for basic EPS: Earnings allocated to unvested securities $ (734 ) (138 ) (57 ) Adjusted net income $ 47,336 14,540 41,797 Denominator: Weighted average common shares outstanding – Basic 46,408,460 46,816,394 46,252,960 Effect of dilutive shares: Common stock equivalents arising from stock options and ESPP 5,398 267,145 265,129 Restricted stock awards and units and performance units 122,122 410,649 167,056 Weighted average common shares outstanding – Diluted 46,535,980 47,494,188 46,685,145 Net income per common share: Basic $ 1.02 $ 0.31 $ 0.90 Diluted $ 1.02 $ 0.31 $ 0.90 For the year ended December 31, 2016, 2015, and 2014, the combined effects of unvested restricted stock awards, restricted stock units, performance unit awards and stock options of 2,981, 17,055 and 87,894, respectively, were excluded from the calculation of diluted EPS as their impact would have been antidilutive. |
QUARTERLY SUPPLEMENTAL FINANCIA
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) | 20. 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, 2016. 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, 2016 (in thousands, except per share data): Three Months Ended March 31, 2016 June 30, 2016 (1) September 30, 2016 December 31, 2016 (1) Total Revenue $ 29,703 $ 64,392 $ 30,214 $ 74,577 $ 198,886 Net income (loss) $ 1,949 $ 21,802 $ (1,500 ) $ 25,819 $ 48,070 Net income (loss) per common share: Basic $ 0.04 $ 0.46 $ (0.03 ) $ 0.55 $ 1.02 Diluted $ 0.04 $ 0.46 $ (0.03 ) $ 0.55 $ 1.02 (1) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2015 (in thousands, except per share data): Three Months Ended March 31, 2015 June 30, 2015 (1)(2) September 30, 2015 December 31, 2015 (1) Total Revenue $ 31,223 $ 58,092 $ 39,419 $ 62,312 $ 191,046 Net income (loss) $ 1,314 $ (11,771 ) (2) $ 7,047 $ 18,088 $ 14,678 Basic $ 0.03 $ (0.25 ) $ 0.15 $ 0.39 $ 0.31 Diluted $ 0.03 $ (0.25 ) $ 0.15 $ 0.39 $ 0.31 (1 ) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. (2) Includes a $33.0 million write down of inventory. Per share amounts for each quarter have been calculated separately. Accordingly, quarterly amounts may not add to annual amounts. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 2 1 . SUBSEQUENT EVENTS: In February 2017, the Company’s Board of Directors declared a dividend of $0.03 per share of common stock. Payment of the dividend will be made on March 31, 2017 to shareholders of record at the close of business on March 15, 2017. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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., UDC Ireland Limited, Universal Display Corporation Hong Kong, Limited, Universal Display Corporation Korea, Y.H., Universal Display Corporation Japan GK, Universal Display Corporation China, Ltd. and Adesis, Inc. (Adesis). All intercompany transactions and accounts have been eliminated. |
Business Combinations | Business Combinations Accounting for acquisitions requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While the Company uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date as well as contingent consideration, where applicable, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which is when all information necessary is obtained not to exceed one year, adjustments may be recorded to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the consolidated statements of income. |
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. The estimates made are principally in the areas of revenue recognition for license agreements, the useful life of acquired intangibles, the use and recoverability of inventories, intangibles and income taxes including realization of deferred tax assets, stock-based compensation and retirement benefit plan liabilities. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents 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 and license fees. 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 allowance for doubtful accounts was $0.1 million at December 31, 2016, and none at December 31 2015 and 2014. |
Inventories | Inventories Inventories consist of raw materials, work-in-process and finished goods, including inventory consigned to customers, and are stated at the lower of cost, determined on a first-in, first-out basis, or market. Inventory valuation and firm committed purchase order assessments are performed on a quarterly basis and those items that are identified to be obsolete or in excess of forecasted usage are written down to their estimated realizable value. Estimates of realizable value are based upon management’s analyses and assumptions, including, but not limited to, forecasted sales levels by product, expected product lifecycle, product development plans and future demand requirements. A 12-month rolling forecast based on factors, including, but not limited to, production cycles, anticipated product orders, marketing forecasts, backlog, and shipment activities is used in the inventory analysis. If market conditions are less favorable than forecasts or actual demand from customers is lower than estimates, additional inventory write-downs may be required. If demand is higher than expected, inventories that had previously been written down may be sold. Certain of the Company’s customers have assumed the responsibility for maintaining the Company's inventory at their location based on the customers' demand forecast. Notwithstanding the fact that the Company builds and ships the inventory, the customer does not purchase the consigned inventory until the inventory is drawn or pulled by the customer to be used in the manufacture of the customer’s product. Though the consigned inventory may be at the customer’s physical location, it remains inventory owned by the Company until the inventory is drawn or pulled, which is the time at which the sale takes place. |
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 thirty years for building, fifteen 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. Major renewals and improvements are capitalized and minor replacements, maintenance, and repairs are charged to current operations as incurred. Upon retirement or disposal of assets, the cost and related accumulated depreciation are removed from the consolidated balance sheet and any gain or loss is reflected in other operating expenses. Certain costs of computer software obtained for internal use are capitalized and amortized on a straight-line basis over three years. Costs for maintenance and training, as well as the cost of software that does not add functionality to an existing system, are expensed as incurred. |
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, 2016, 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, 2015 or 2014. |
Goodwill and Purchased Intangible Assets | Goodwill and Purchased Intangible Assets Goodwill is tested for impairment in the fourth fiscal quarter and, when specific circumstances dictate, between annual tests. If it is determined that goodwill has been impaired, then its carrying value is written down to fair value. The goodwill impairment test involves a two-step process. The first step, identifying a potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying value of the reporting unit exceeds its fair value, the second step would need to be conducted; otherwise, no further steps are necessary as no potential impairment exists. If necessary, the second step to measure the impairment loss would be to compare the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Any excess of the reporting unit goodwill carrying value over the respective implied fair value is recognized as an impairment loss. The Company performed its annual impairment assessment as of December 31, 2016 utilizing a qualitative evaluation and concluded that it was more likely than not that the fair value of Adesis (see Note 3) is greater than its carrying value. The Company believes it has made reasonable estimates and assumptions to calculate the fair value of the reporting unit. If actual future results are not consistent with management’s estimates and assumptions, the Company may have to take an impairment charge in the future related to goodwill. Future impairment tests will continue to be performed annually in the fiscal fourth quarter, or sooner if a triggering event occurs. As of December 31, 2016, no indications of impairment exist. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets. |
Fair Value of Financial Instruments | 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. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based on the highest and best use of the asset or liability. The Company uses valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. Observable inputs are inputs that market participants would use in pricing the asset or liability, and are based on market data obtained from sources independent of the Company. Unobservable inputs reflect assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. |
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 title passes, which is typically at the time of shipment or at the time of delivery, 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. These payments may include royalty and license fees made pursuant to license agreements and certain commercial supply agreements. Amounts received are deferred and classified as either current or non-current deferred revenue based upon current contractual remaining terms; however, based upon on-going relationships with customers, as well as future agreement extensions and other factors, amounts classified as current as of December 31, 2016 may not be recognized as revenue over the next twelve months. 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. If the Company used different estimates for the useful life of the licensed technology, or if fees are fixed and determinable, reported revenue during the relevant period would differ. Contract research services revenue is revenue earned by performing organic and organometallic synthetics research, development and commercialization on a contractual basis. These services range from intermediates for structure-activity relationship studies, reference agents and building blocks for combinatorial synthesis, re-synthesis of key intermediates, specialty organic chemistry needs, and selective toll manufacturing. These services are provided to third-party pharmaceutical and life sciences firms and other technology firms at fixed costs or on an annual contract basis. Revenue is recognized as services are performed with billing schedules and payment terms negotiated on a contract-by-contract basis. Payments received in excess of revenue recognized are recorded as deferred revenue. In other cases, services may be provided and revenue is recognized before the client is invoiced. In these cases, revenue recognized will exceed amounts billed and the difference, representing amounts which are currently unbillable to the customer pursuant to contractual terms, is recorded as an unbilled receivable. 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. At the same time the Company entered into the current patent license agreement with SDC, the Company also entered into a new supplemental material purchase agreement with SDC. Under the current supplemental material purchase agreement, SDC agrees to purchase from the Company a minimum dollar amount of phosphorescent emitter materials for use in the manufacture of licensed products. This minimum purchase commitment is subject to SDC’s requirements for phosphorescent emitter materials and the Company’s ability to meet these requirements over the term of the supplemental agreement. The minimum purchase amounts increase on an annual basis over the term of the supplemental agreement. These amounts were determined through negotiation based on a number of factors, including, without limitation, estimates of SDC’s OLED business growth as a percentage of published OLED market forecasts and SDC’s projected minimum usage of red and green phosphorescent emitter materials over the term of the agreement. In 2015, the Company entered into an OLED patent license agreement and an OLED commercial supply agreement with LG Display Co., Ltd. (LG Display) which were effective as of January 1, 2015 and superseded the 2007 commercial supply agreement between the parties. The new agreements have a term that is set to expire by the end of 2022. The patent license agreement provides LG Display a non-exclusive, royalty bearing portfolio license to make and sell OLED displays under the Company's patent portfolio. The patent license calls for license fees, prepaid royalties and running royalties on licensed products. The prepaid royalty amount is included in deferred revenue and a portion of this amount can be credited against total royalties due over the life of the contract. The agreements include customary provisions relating to warranties, indemnities, confidentiality, assignability and business terms. The agreements provide for certain other minimum obligations relating to the volume of material sales anticipated over the term of the agreements, as well as minimum royalty revenue to be generated under the patent license agreement. The Company expects to generate revenue under these agreements that are predominantly tied to LG Display’s sales of OLED licensed products. The OLED commercial supply agreement provides for the sale of materials for use by LG Display, which may include phosphorescent emitters and host materials. In 2016, the Company entered into an OLED Technology License Agreement and Commercial Material Supply Agreement with Tianma Micro-electronics Co., Ltd. (Tianma) which were both effective July 21, 2016 and run for five years. Under the license agreement, the Company, through its wholly-owned subsidiary UDC Ireland Limited, has granted Tianma non-exclusive license rights under various patents owned or controlled by the Company to manufacture and sell OLED display products. The license agreement calls for license fees and running royalties on licensed products. Additionally, the agreement provides for the sale of phosphorescent OLED materials to Tianma for use in its licensed products. The Company records taxes billed to customers and remitted to various governmental entities on a gross basis in both revenues and cost of material sales in the consolidated statements of income. The amounts of these pass through taxes reflected in revenues and cost of material sales were $171,000, $1.3 million and $4.3 million for the years ended December 31, 2016, 2015 and 2014, respectively. All sales transactions are billed and due within 90 days and substantially all are transacted in U.S. dollars. |
Cost of Sales | Cost of Sales Cost of sales consists of labor and material costs associated with the production of materials processed at the Company's manufacturing partners and at the Company's internal manufacturing processing facilities. The Company’s portion of cost of sales also includes depreciation of manufacturing equipment, as well as manufacturing overhead costs and inventory adjustments for excess and obsolete inventory. |
Research and Development | Research and Development Expenditures for research and development are charged to operations as incurred. |
Patent Costs | Patent Costs 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 of Acquired Technology | Amortization of Acquired Technology Amortization costs relate to technology acquired from BASF, Fujifilm and Motorola. These acquisitions were completed in the years ended December 31, 2016, 2012 and 2011, respectively. Acquisition costs are being amortized over a period of 10 years for the BASF and Fujifilm patents and 7.5 years for the Motorola patents. |
Amortization of Other Intangible Assets | Amortization of Other Intangible Assets Other intangible assets from the Adesis acquisition are being amortized over a period of 10 to 15 years. See Note 8 for further discussion. |
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions | 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. |
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 | Share-Based Payment Awards The Company recognizes in the consolidated statements of income the grant-date fair value of equity based awards such as shares issued under employee stock purchase plans, restricted stock awards, restricted stock units and performance unit awards issued to employees and directors. The grant-date fair value of stock awards is based on the closing price of the stock on the date of grant. The fair value of share-based awards is recognized as compensation expense on a straight-line basis over the requisite service period, net of forfeitures. The Company issues new shares upon the respective grant, exercise or vesting of the share-based payment awards, as applicable. 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 | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard entitled Revenue from Contracts with Customers In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No, 2016-02, Leases In March 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Accounting In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. The Company is evaluating the effect that ASU 2016-16 may have on its consolidated financial statements and related disclosures |
Reclassification | Reclassification A reclassification was made to operating expenses in the consolidated statements of income for the years ended December 31, 2015 and 2014 to include non-cash amortization charges of $10,999 and $10,997, respectively, in amortization of acquired technology and other intangible assets. These amounts were previously included in patents and amortization of acquired technology. This reclassification was made to conform to the current year presentation. The change in classification had no impact on reporting operating income, net income or net income per common share. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Assets Acquired and Liabilities Assumed | The following table summarizes the values of the assets acquired and liabilities assumed at the date of acquisition (in thousands): Cash consideration $ 33,872 Contingent consideration 1,670 $ 35,542 Allocation of purchase price: Current assets, including cash of $492 $ 2,204 Property and equipment 1,869 Accounts payable and accrued liabilities (906 ) Net tangible assets 3,167 Identifiable intangible assets 16,840 Goodwill 15,535 Total purchase price $ 35,542 |
Schedule of Intangible Assets Identified | The following table presents the intangible assets identified in the transaction: Category Estimated fair value (in thousands) Estimated useful life (in years) Customer relationships 10,520 11.5 Internally-developed IP, processes and recipes 4,820 15.0 Trade name/Trademarks 1,500 10.0 Total identifiable intangible assets $ 16,840 |
Schedule of Unaudited Pro Forma Information | The following unaudited pro forma information assumes the acquisition of Adesis occurred at the beginning of the respective periods presented (in thousands): Year Ended December 31, Unaudited Pro Forma Information 2016 2015 Revenue $ 202,547 $ 197,375 Net income 44,718 12,661 |
CASH EQUIVALENTS AND INVESTME33
CASH EQUIVALENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Cash And Cash Equivalents [Abstract] | |
Schedule of Cash Equivalents and Investments | Investments as of December 31, 2016 and December 31, 2015 consisted of the following (in thousands): Amortized Unrealized Aggregate Investment Classification Cost Gains (Losses) Market Value December 31, 2016 Certificates of deposit $ 3,362 $ 3 $ — $ 3,365 Money market instruments 2,998 — (2 ) 2,996 Corporate bonds 209,595 6 (377 ) 209,224 U.S. Government bonds 32,996 1 (3 ) 32,994 $ 248,951 $ 10 $ (382 ) $ 248,579 December 31, 2015 Certificates of deposit $ 11,532 $ 3 $ (14 ) $ 11,521 Corporate bonds 233,848 — (139 ) 233,709 U.S. Government bonds 54,953 1 (16 ) 54,938 $ 300,333 $ 4 $ (169 ) $ 300,168 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2016 (in thousands): Fair Value Measurements, Using Total carrying value as of December 31, 2016 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents $ 71,773 $ 71,773 $ — $ — Short-term investments 188,644 188,644 — — Long-term investments 14,960 14,960 — — The following table provides the assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2015 (in thousands): Fair Value Measurements, Using Total carrying value as of December 31, 2015 Quoted prices in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Cash equivalents $ 34,980 $ 34,980 $ — $ — Short-term investments 297,981 297,981 — — Long-term investments 2,187 2,187 — — |
INVENTORY (Tables)
INVENTORY (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventory consisted of the following (in thousands): December 31, 2016 December 31, 2015 Raw materials $ 6,539 $ 6,539 Work-in-process 3,719 1,064 Finished goods 7,056 5,145 Inventory $ 17,314 $ 12,748 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment consist of the following (in thousands): December 31, 2016 2015 Land $ 820 $ 820 Building and improvements 20,384 19,642 Office and lab equipment 30,728 25,086 Furniture, fixtures and computer related assets 3,097 2,457 Construction-in-progress 4,341 2,299 59,370 50,304 Less: Accumulated depreciation (32,167 ) (27,897 ) Property and equipment, net $ 27,203 $ 22,407 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Finite Lived Intangible Assets Net [Abstract] | |
Schedule of Acquired Technology | These intangible assets consist of the following (in thousands): December 31, 2016 2015 PD-LD, Inc. $ 1,481 $ 1,481 Motorola 15,909 15,909 BASF 95,989 — Fujifilm 109,462 109,462 222,841 126,852 Less: Accumulated amortization (70,714 ) (54,837 ) Acquired technology, net $ 152,127 $ 72,015 |
Schedule of Other Intangible Assets | December 31, 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 10,520 $ (401 ) $ 10,119 Internally-developed IP, processes and recipes 4,820 (146 ) 4,674 Trade name/Trademarks 1,500 (68 ) 1,432 Total identifiable intangible assets $ 16,840 $ (615 ) $ 16,225 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | Accrued expenses consist of the following (in thousands): December 31, 2016 2015 Compensation $ 10,833 $ 9,885 Royalties 5,823 5,362 Research and development agreements 757 1,389 Consulting 524 407 Professional fees 238 296 Other 1,670 48 $ 19,845 $ 17,387 |
ACCUMULATED OTHER COMPREHENSI39
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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 (loss) on available-for- sale-securities Net unrealized gain (loss) on retirement plan (2) Change in cumulative foreign currency translation adjustment Total Affected line items in the consolidated statements of operations Balance January 1, 2014, net of tax $ (24 ) $ (4,344 ) $ — $ (4,368 ) Other comprehensive loss before reclassification (4 ) (385 ) — (389 ) Reclassification to net income (1) — 375 — 375 Selling, general and administrative, research and development Change during period (4 ) (10 ) — (14 ) Balance December 31 2014, net of tax $ (28 ) $ (4,354 ) $ — $ (4,382 ) Other comprehensive loss before reclassification (83 ) (388 ) — (471 ) Plan amendment cost — (5,963 ) — (5,963 ) Reclassification to net income (1) — 997 — 997 Selling, general and administrative, research and development Change during period (83 ) (5,354 ) — (5,437 ) Balance December 31, 2015, net of tax $ (111 ) $ (9,708 ) $ — $ (9,819 ) Other comprehensive loss before reclassification (135 ) (1,731 ) (65 ) (1,931 ) Reclassification to net income (1) — 1,084 — 1,084 Selling, general and administrative, research and development, and cost of material sales Change during period (135 ) (647 ) (65 ) (847 ) Balance December 31, 2016, net of tax $ (246 ) $ (10,355 ) $ (65 ) $ (10,666 ) (1) The Company reclassified amortization of plan amendment cost, prior service cost, and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income of $1.1 million, $1.0 million, and $375,000 for the years ended December 31, 2016, 2015, and 2014, respectively. (2) Refer to Note 15: Employee Retirement Plans |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Activity | The following table summarizes the stock option activity during the year ended December 31, 2016 for all the grants under the Equity Compensation Plan: Options Weighted Average Exercise Price Outstanding at January 1, 2016 16,500 $ 14.83 Granted — — Exercised (12,750 ) 14.51 Forfeited/ Expired (250 ) — Cancelled — — Outstanding at December 31, 2016 3,500 15.99 Vested and expected to vest 3,500 15.99 Exercisable at December 31, 2016 3,500 $ 15.99 |
Summary of Stock Options Outstanding and Exercisable By Price Range | A summary of stock options outstanding and exercisable by price range at December 31, 2016 is as follows (in thousands, except share and per share data): Outstanding and Exercisable Exercise Price Number of Options Outstanding at December 31, 2016 Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Aggregate Intrinsic Value (A) $10.04-$12.70 750 1.7 $ 10.93 $ 34 $14.16-$14.39 250 0.1 $ 14.16 $ 11 $15.22-$18.34 2,500 0.8 $ 17.69 $ 96 Total 3,500 0.93 $ 15.99 $ 141 (A) The difference between the stock option’s exercise price and the closing price of common stock at December 31, 2016. |
Restricted Stock and Units Activity | The following table summarizes the activity related to restricted stock unit (“RSU”) share based payment awards: Number of Shares Weighted- Average Grant-Date Fair Value Unvested, January 1, 2016 164,674 $ 37.49 Granted 73,793 53.85 Vested (101,739 ) 38.96 Forfeited (5,609 ) 40.34 Unvested, December 31, 2016 131,119 $ 45.44 The following table summarizes the activity related to restricted stock award (“RSA”) share based payment awards: Number of Shares Weighted- Average Grant-Date Fair Value Unvested, January 1, 2016 787,324 $ 43.43 Granted 124,744 65.37 Vested (162,113 ) 45.48 Forfeited — — Unvested, December 31, 2016 749,955 $ 46.64 |
Schedule of Nonvested Performance-Based Units Activity | The following table summarizes the activity related to performance unit awards (“PSU”) share based payment awards: Number of Shares Weighted- Average Grant-Date Fair Value Unvested, January 1, 2016 68,724 $ 34.63 Granted 25,045 58.46 Vested — — Forfeited — — Unvested, December 31, 2016 93,769 $ 46.02 |
EMPLOYEE RETIREMENT PLANS (Tabl
EMPLOYEE RETIREMENT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 Change in benefit obligation: Benefit obligation, beginning of year $ 22,594 $ 10,916 Service cost 1,415 1,186 Interest cost 875 618 Actuarial loss 2,679 606 Plan amendment - 9,268 Benefit obligation, end of year 27,563 22,594 Fair value of plan assets — — Unfunded status of the plan, end of year $ 27,563 $ 22,594 Current liability — — Noncurrent liability $ 27,563 $ 22,594 |
Components of Net Periodic Pension Cost | The components of net periodic pension cost were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Service cost $ 1,415 $ 1,186 $ 669 Interest cost 875 618 426 Amortization of prior service cost 1,660 1,550 584 Amortization of loss 15 — — Total net periodic benefit cost $ 3,965 $ 3,354 $ 1,679 |
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, 2016 2015 Discount rate 3.57 % 3.78 % Rate of compensation increases 3.50 % 3.50 % Assumptions used to determine the net periodic pension cost were as follows: Year Ended December 31, 2016 2015 2014 Discount rate 3.57 % 3.78 % 4.51 % 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 2017 are as follows (in thousands): Amortization of prior service cost $ 1,660 Amortization of loss 188 Total $ 1,848 |
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 2017 $ — 2018 906 2019 2,252 2020 2,375 2021 2,460 2022-2026 16,122 Thereafter 24,429 |
CONCENTRATION OF RISK (Tables)
CONCENTRATION OF RISK (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Risks And Uncertainties [Abstract] | |
Revenues and Accounts Receivable From Our Largest Customers | Revenues and accounts receivable from the Company's largest customers for the years ended December 31 were as follows (in thousands): 2016 2015 2014 Customer % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable % of Total Revenue Accounts Receivable A 63% $ 12,050 62% $ 13,355 54% $ 8,550 B 28% 9,128 25% 8,477 19% 7,598 C 4% 1,427 1% 1,564 1% 540 |
Revenues by Geographic Area | Revenues by geographic area are as follows (in thousands): Year Ended December 31, Country 2016 2015 2014 South Korea $ 181,771 $ 168,267 $ 141,922 China 7,180 2,685 1,260 Japan 4,310 16,542 44,903 Other non-U.S. locations 1,849 2,334 2,240 Total non-U.S. locations $ 195,110 $ 189,828 $ 190,325 United States 3,776 1,218 706 Total revenue $ 198,886 $ 191,046 $ 191,031 |
Long-Lived Assets (Net) by Geographic Area | Long-lived assets (net), by geographic area are as follows (in thousands): 2016 2015 United States $ 26,917 $ 22,187 Other 286 220 Total long-lived assets $ 27,203 $ 22,407 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 2015 2014 United States $ 69,595 $ 54,338 $ 60,485 Foreign (997 ) (21,279 ) (1,158 ) Income before income tax $ 68,598 $ 33,059 $ 59,327 |
Components of Income Tax Expense | The components of the income tax expense are as follows (in thousands): Year ended December 31, 2016 2015 2014 Current income tax benefit (expense): Federal $ (4,485 ) $ (1,018 ) $ — State (47 ) (2 ) (2 ) Foreign (12,902 ) (10,224 ) (8,363 ) (17,434 ) (11,244 ) (8,365 ) Deferred income tax (expense) benefit: Federal (2,683 ) (7,145 ) (9,652 ) State (503 ) 51 575 Foreign 92 (43 ) (31 ) (3,094 ) (7,137 ) (9,108 ) Income tax expense $ (20,528 ) $ (18,381 ) $ (17,473 ) |
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, 2016 2015 2014 Statutory U.S. federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 0.5 % (0.1 )% (0.4 )% Effect of foreign operations 0.9 % 15.2 % 0.7 % Accruals and reserves 3.2 % 0.0 % (4.5 )% Nondeductible employee compensation 1.5 % 2.5 % 0.5 % Research tax credits (1.3 )% (4.4 )% (2.5 )% Change in valuation allowance (9.7 )% 8.4 % (0.4 )% Other (0.2 )% (1.0 )% 1.0 % Effective tax rate 29.9 % 55.6 % 29.4 % |
Tax Loss and Tax Credit Carryforwards | The following table summarizes Company tax loss and tax credit carry forwards for tax return purposes at December 31, 2016 (in thousands): Related Tax Deduction Tax Benefit Expiration Date Loss carry forwards: Federal net operating loss $ — $ — Foreign net operating loss 27,473 3,434 n/a Total loss carry forwards $ 27,473 $ 3,434 Tax credit carry forwards: Research tax credits n/a $ 12,696 2027 to 2036 Foreign tax credits n/a 13,754 2023 to 2026 State research tax credits n/a 2,383 2023 to 2030 Total credit carry forwards n/a $ 28,833 |
Significant Components of Deferred Tax Assets and Liabilities | Significant components of the Company's net deferred tax assets and liabilities are as follows (in thousands): December 31, 2016 2015 Deferred tax asset: Net operating loss carry forwards $ 3,405 $ 3,716 Capitalized technology license 4,163 3,922 Capitalized research expenditures 8,100 10,206 Accruals and reserves 1,112 3,275 Retirement plan 9,723 8,062 Deferred revenue 516 731 Tax credit carry forwards 1,846 7,973 Stock-based compensation 2,889 2,012 Other 874 1,857 32,628 41,754 Valuation allowance (7,950 ) (14,483 ) Deferred tax assets 24,678 27,271 Deferred tax liability: Acquisition goodwill (185 ) — Deferred tax liabilities (185 ) — Net deferred tax assets $ 24,493 $ 27,271 |
NET INCOME PER COMMON SHARE (Ta
NET INCOME PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per 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 year ended December 31, 2016, 2015, and 2014 (in thousands, except share and per share data): Year Ended December 31, 2016 2015 2014 Numerator: Net income $ 48,070 14,678 41,854 Adjustment for basic EPS: Earnings allocated to unvested securities $ (734 ) (138 ) (57 ) Adjusted net income $ 47,336 14,540 41,797 Denominator: Weighted average common shares outstanding – Basic 46,408,460 46,816,394 46,252,960 Effect of dilutive shares: Common stock equivalents arising from stock options and ESPP 5,398 267,145 265,129 Restricted stock awards and units and performance units 122,122 410,649 167,056 Weighted average common shares outstanding – Diluted 46,535,980 47,494,188 46,685,145 Net income per common share: Basic $ 1.02 $ 0.31 $ 0.90 Diluted $ 1.02 $ 0.31 $ 0.90 |
QUARTERLY SUPPLEMENTAL FINANC45
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
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, 2016 (in thousands, except per share data): Three Months Ended March 31, 2016 June 30, 2016 (1) September 30, 2016 December 31, 2016 (1) Total Revenue $ 29,703 $ 64,392 $ 30,214 $ 74,577 $ 198,886 Net income (loss) $ 1,949 $ 21,802 $ (1,500 ) $ 25,819 $ 48,070 Net income (loss) per common share: Basic $ 0.04 $ 0.46 $ (0.03 ) $ 0.55 $ 1.02 Diluted $ 0.04 $ 0.46 $ (0.03 ) $ 0.55 $ 1.02 (1) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. Presented below is a summary of the unaudited quarterly financial information for the year ended December 31, 2015 (in thousands, except per share data): Three Months Ended March 31, 2015 June 30, 2015 (1)(2) September 30, 2015 December 31, 2015 (1) Total Revenue $ 31,223 $ 58,092 $ 39,419 $ 62,312 $ 191,046 Net income (loss) $ 1,314 $ (11,771 ) (2) $ 7,047 $ 18,088 $ 14,678 Basic $ 0.03 $ (0.25 ) $ 0.15 $ 0.39 $ 0.31 Diluted $ 0.03 $ (0.25 ) $ 0.15 $ 0.39 $ 0.31 (1 ) The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. (2) Includes a $33.0 million write down of inventory. |
BUSINESS - Additional Informati
BUSINESS - Additional Information (Details) | Dec. 31, 2016patent |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of patents issued and pending application | 4,200 |
SUMMARY OF SIGNIFICANT ACCOUN47
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | Jun. 28, 2016 | Jul. 23, 2012 | Mar. 09, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2017 |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Cash and cash equivalents maturity period | three months or less | ||||||
Allowance for doubtful accounts | $ 100,000 | $ 0 | $ 0 | ||||
Goodwill impairment loss | $ 0 | ||||||
License fee agreement, term of agreement | 6 years 4 months 24 days | ||||||
Taxes, other | $ 171,000 | 1,300,000 | 4,300,000 | ||||
Recognized income tax positions measured at likelihood of realization description | Recognized income tax positions are measured at the largest amount of which the likelihood of realization is greater than 50%. | ||||||
Increase in deferred tax non-current asset | $ 15,832,000 | 14,945,000 | |||||
Decrease in deferred tax current asset | (8,661,000) | (12,326,000) | |||||
Reclassification of non-cash amortization | $ 10,999 | $ 10,997 | |||||
ASU No. 2015-17 [Member] | Scenario Forecast [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Increase in deferred tax non-current asset | $ 8,661,000 | ||||||
Decrease in deferred tax current asset | $ (8,661,000) | ||||||
ASU No. 2016-09 [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Adjustment to retained earnings due to adoption of accounting standard | $ 26,900,000 | ||||||
Licensing Agreements [Member] | Motorola [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization period of acquired intangible assets (in years) | 7 years 6 months | ||||||
Patents | FUJIFILM [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
OLED patents useful life | 10 years | ||||||
Patents | BASF [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
OLED patents useful life | 10 years | ||||||
OLED Technology License Agreement [Member] | Tianma [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Agreement effective date | Jul. 21, 2016 | ||||||
Agreement period | 5 years | ||||||
Supplemental Material Purchase Agreement [Member] | Tianma [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Agreement effective date | Jul. 21, 2016 | ||||||
Agreement period | 5 years | ||||||
Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Recognized income tax positions measured at percentage of likelihood of realization | 50.00% | ||||||
Minimum [Member] | Other Intangible Assets [Member] | Adesis, Inc. [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization period of acquired intangible assets (in years) | 10 years | ||||||
Maximum [Member] | Other Intangible Assets [Member] | Adesis, Inc. [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization period of acquired intangible assets (in years) | 15 years | ||||||
Building [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life (in years) | 30 years | ||||||
Building Improvements [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life (in years) | 15 years | ||||||
Office, Lab Equipment and Furniture and Fixtures [Member] | Minimum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life (in years) | 3 years | ||||||
Office, Lab Equipment and Furniture and Fixtures [Member] | Maximum [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life (in years) | 7 years | ||||||
Computer Software [Member] | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Estimated useful life (in years) | 3 years |
BUSINESS COMBINATIONS - Additio
BUSINESS COMBINATIONS - Additional Information (Details) - Adesis, Inc. [Member] | Jul. 11, 2016USD ($) | Jun. 23, 2016USD ($)Employee | Dec. 31, 2016USD ($) |
Business Acquisition [Line Items] | |||
Business acquisition agreement date | Jun. 23, 2016 | ||
Number of employees in contract research organization | Employee | 43 | ||
Shares acquired for cash | $ 33,900,000 | $ 33,872,000 | |
Transaction closed date | Jul. 11, 2016 | ||
Basis for additional consideration payable | if revenues exceed certain threshold levels at the end of each twelve-month period ending December 31, 2016 and December 31, 2017 | ||
Business combination, earn-out payments | $ 1,200,000 | ||
Contingent consideration | $ 1,670,000 | 1,900,000 | |
Selling, General and Administrative Expense [Member] | |||
Business Acquisition [Line Items] | |||
Business acquisition, transaction costs | 360,000 | ||
Increase in contingent consideration | 195,000 | ||
Maximum [Member] | |||
Business Acquisition [Line Items] | |||
Additional cash contingent payable upon achievement of milestone | $ 2,400,000 | ||
Additional consideration payable upon achievement of each milestone | $ 1,200,000 |
BUSINESS COMBINATIONS - Summary
BUSINESS COMBINATIONS - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 11, 2016 | Jun. 23, 2016 | Dec. 31, 2016 |
Allocation of purchase price: | |||
Goodwill | $ 15,535 | ||
Adesis, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Cash consideration | $ 33,900 | $ 33,872 | |
Contingent consideration | 1,670 | 1,900 | |
Total consideration | 35,542 | ||
Allocation of purchase price: | |||
Current assets, including cash of $492 | 2,204 | ||
Property and equipment | 1,869 | ||
Accounts payable and accrued liabilities | (906) | ||
Net tangible assets | 3,167 | ||
Identifiable intangible assets | 16,840 | ||
Goodwill | 15,535 | $ 15,535 | |
Total purchase price | $ 35,542 |
BUSINESS COMBINATIONS - Summa50
BUSINESS COMBINATIONS - Summary of Assets Acquired and Liabilities Assumed (Parenthetical) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Adesis, Inc. [Member] | |
Business Acquisition [Line Items] | |
Current assets, cash | $ 492 |
BUSINESS COMBINATIONS - Schedul
BUSINESS COMBINATIONS - Schedule of Intangible Assets Identified (Details) - Adesis, Inc. [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 16,840 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 10,520 |
Estimated useful life | 11 years 6 months |
Internally-developed IP, Processes and Recipes [Member] | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 4,820 |
Estimated useful life | 15 years |
Trade Name/Trademarks [Member] | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 1,500 |
Estimated useful life | 10 years |
BUSINESS COMBINATIONS - Sched52
BUSINESS COMBINATIONS - Schedule of Unaudited Pro Forma Information (Details) - Adesis, Inc. [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Unaudited Pro Forma Information | ||
Revenue | $ 202,547 | $ 197,375 |
Net income | $ 44,718 | $ 12,661 |
CASH EQUIVALENTS AND INVESTME53
CASH EQUIVALENTS AND INVESTMENTS - Schedule of Cash Equivalents and Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Line Items] | ||
Investments, Amortized Cost Basis | $ 248,951 | $ 300,333 |
Investments, Gross Unrealized Gains | 10 | 4 |
Investments, Gross Unrealized Losses | (382) | (169) |
Investments | 248,579 | 300,168 |
Certificates of Deposit [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | 3,362 | 11,532 |
Cash Equivalents, Gross Unrealized Gain | 3 | 3 |
Cash Equivalents, Gross Unrealized Losses | (14) | |
Cash and Cash Equivalents, Fair Value Disclosure | 3,365 | 11,521 |
Money Market Instruments [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | 2,998 | |
Cash Equivalents, Gross Unrealized Losses | (2) | |
Cash and Cash Equivalents, Fair Value Disclosure | 2,996 | |
Corporate Debt Securities [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | 14,975 | |
Available-for-sale Debt Securities, Amortized Cost Basis | 209,595 | 233,848 |
Available-for-sale Securities, Gross Unrealized Gains | 6 | |
Available-for-sale Securities, Gross Unrealized Losses | (377) | (139) |
Available-for-sale Securities, Fair Value Disclosure | 209,224 | 233,709 |
US Treasury and Government [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Cash Equivalents, at Carrying Value | 30,000 | |
Available-for-sale Debt Securities, Amortized Cost Basis | 32,996 | 54,953 |
Available-for-sale Securities, Gross Unrealized Gains | 1 | 1 |
Available-for-sale Securities, Gross Unrealized Losses | (3) | (16) |
Available-for-sale Securities, Fair Value Disclosure | $ 32,994 | $ 54,938 |
CASH EQUIVALENTS AND INVESTME54
CASH EQUIVALENTS AND INVESTMENTS - Additional Information (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Corporate Bonds [Member] | |
Cash and Cash Equivalents [Line Items] | |
Cash equivalents | $ 14,975 |
U.S. Government Bonds [Member] | |
Cash and Cash Equivalents [Line Items] | |
Cash equivalents | $ 30,000 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 188,644 | $ 297,981 |
Long-term investments | 14,960 | 2,187 |
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 71,773 | 34,980 |
Short-term investments | 188,644 | 297,981 |
Long-term investments | 14,960 | 2,187 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 71,773 | 34,980 |
Short-term investments | 188,644 | 297,981 |
Long-term investments | $ 14,960 | $ 2,187 |
FAIR VALUE MEASUREMENTS - Addit
FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | ||
Other than temporary impairments of investments | $ 0 | $ 0 |
INVENTORY - Schedule of Invento
INVENTORY - Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 6,539 | $ 6,539 |
Work-in-process | 3,719 | 1,064 |
Finished goods | 7,056 | 5,145 |
Inventory | $ 17,314 | $ 12,748 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 59,370 | $ 50,304 |
Less: Accumulated depreciation | (32,167) | (27,897) |
Property and equipment, net | 27,203 | 22,407 |
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 | 20,384 | 19,642 |
Office and lab equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 30,728 | 25,086 |
Furniture and fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,097 | 2,457 |
Construction-in-progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,341 | $ 2,299 |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 4,270 | $ 3,086 | $ 2,077 |
GOODWILL AND INTANGIBLE ASSET60
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Technology (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired technology, gross | $ 222,841 | $ 126,852 |
Less: Accumulated amortization | (70,714) | (54,837) |
Acquired technology, net | 152,127 | 72,015 |
PD LD, Inc [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired technology, gross | 1,481 | 1,481 |
Motorola [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired technology, gross | 15,909 | 15,909 |
BASF [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired technology, gross | 95,989 | |
FUJIFILM [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired technology, gross | $ 109,462 | $ 109,462 |
GOODWILL AND INTANGIBLE ASSET61
GOODWILL AND INTANGIBLE ASSETS - Acquired Technology - Additional Information (Details) € in Millions | Jun. 28, 2016USD ($)patent | Jun. 28, 2016EUR (€)patent | Jul. 23, 2012USD ($)patent | Mar. 09, 2011 | Dec. 31, 2016USD ($)patent | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization related to acquired technology | $ 16,492,000 | $ 10,999,000 | $ 10,997,000 | ||||
Future amortization expense, next twelve months | 20,600,000 | ||||||
Future amortization expense, fiscal year 2 | 20,600,000 | ||||||
Future amortization expense, fiscal year 3 | 20,600,000 | ||||||
Future amortization expense, fiscal year 4 | 20,600,000 | ||||||
Future amortization expense, fiscal year 5 | 20,600,000 | ||||||
Patent Technology [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization related to acquired technology | $ 15,900,000 | ||||||
Licensing Agreements [Member] | Motorola [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Number of patents under license agreement | patent | 74 | ||||||
Amortization period of acquired intangible assets (in years) | 7 years 6 months | ||||||
Patents | FUJIFILM [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Number of patents acquired (more than) | patent | 1,200 | ||||||
Assigned value of acquired intangible assets | $ 105,000,000 | ||||||
Cash paid for OLED patents | $ 4,500,000 | ||||||
OLED patents useful life | 10 years | ||||||
Patents | BASF [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Number of patents acquired (more than) | patent | 500 | 500 | |||||
Assigned value of acquired intangible assets | $ 95,800,000 | € 86.8 | |||||
Cash paid for OLED patents | $ 217,000 | ||||||
OLED patents useful life | 10 years | 10 years |
GOODWILL AND INTANGIBLE ASSET62
GOODWILL AND INTANGIBLE ASSETS - Other Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Jul. 12, 2016 | Jun. 23, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense related to other intangible assets | $ 615,000 | $ 0 | |||
Goodwill | 15,535,000 | ||||
Adesis, Inc. [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets | 16,840,000 | $ 16,800,000 | |||
Amortization expense related to other intangible assets | 615,000 | $ 0 | $ 0 | ||
Future amortization expense of other intangible assets, next twelve months | 1,400,000 | ||||
Future amortization expense of other intangible assets, fiscal year 2 | 1,400,000 | ||||
Future amortization expense of other intangible assets, fiscal year 3 | 1,400,000 | ||||
Future amortization expense of other intangible assets, fiscal year 4 | 1,400,000 | ||||
Future amortization expense of other intangible assets, fiscal year 5 | 1,400,000 | ||||
Goodwill | 15,535,000 | $ 15,535,000 | |||
Adesis, Inc. [Member] | Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets | $ 10,520,000 | 10,500,000 | |||
Estimated useful life | 11 years 6 months | ||||
Amortization expense related to other intangible assets | $ 401,000 | ||||
Adesis, Inc. [Member] | Internally-developed IP, Processes and Recipes [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets | $ 4,820,000 | 4,800,000 | |||
Estimated useful life | 15 years | ||||
Amortization expense related to other intangible assets | $ 146,000 | ||||
Adesis, Inc. [Member] | Trade Name/Trademarks [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets | $ 1,500,000 | $ 1,500,000 | |||
Estimated useful life | 10 years | ||||
Amortization expense related to other intangible assets | $ 68,000 |
GOODWILL AND INTANGIBLE ASSET63
GOODWILL AND INTANGIBLE ASSETS - Schedule of Other Intangible Assets (Details) - USD ($) | Dec. 31, 2016 | Jul. 12, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||
Accumulated Amortization | $ (615,000) | $ 0 | ||
Net Carrying Amount | 16,225,000 | |||
Adesis, Inc. [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 16,840,000 | $ 16,800,000 | ||
Accumulated Amortization | (615,000) | $ 0 | $ 0 | |
Net Carrying Amount | 16,225,000 | |||
Adesis, Inc. [Member] | Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 10,520,000 | 10,500,000 | ||
Accumulated Amortization | (401,000) | |||
Net Carrying Amount | 10,119,000 | |||
Adesis, Inc. [Member] | Internally-developed IP, Processes and Recipes [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 4,820,000 | 4,800,000 | ||
Accumulated Amortization | (146,000) | |||
Net Carrying Amount | 4,674,000 | |||
Adesis, Inc. [Member] | Trade Name/Trademarks [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross Carrying Amount | 1,500,000 | $ 1,500,000 | ||
Accumulated Amortization | (68,000) | |||
Net Carrying Amount | $ 1,432,000 |
ACCRUED EXPENSES - Accrued Expe
ACCRUED EXPENSES - Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Compensation | $ 10,833 | $ 9,885 |
Royalties | 5,823 | 5,362 |
Research and development agreements | 757 | 1,389 |
Consulting | 524 | 407 |
Professional fees | 238 | 296 |
Other | 1,670 | 48 |
Accrued expenses | $ 19,845 | $ 17,387 |
RESEARCH AND LICENSE AGREEMEN65
RESEARCH AND LICENSE AGREEMENTS WITH PRINCETON UNIVERSITY, UNIVERSITY OF SOUTHERN CALIFORNIA AND THE UNIVERSITY OF MICHIGAN - Additional Information (Details) - USD ($) | Jun. 01, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 30, 2009 | Dec. 31, 2016 | Apr. 30, 2013 | Apr. 30, 2013 | Jul. 31, 2007 |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Royalty expense | $ 5,823,000 | $ 5,370,000 | $ 4,519,000 | ||||||
1997 Research Agreement [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Term of agreement (in years) | 10 years | ||||||||
2006 Research Agreement - Original Term [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Term of agreement (in years) | 3 years | 4 years | |||||||
Research and development expense incurred | $ 5,000,000 | ||||||||
2006 Research Agreement - Extended Term [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
Term of agreement (in years) | 4 years | ||||||||
Research and development expense incurred | $ 3,900,000 | ||||||||
Maximum obligation | $ 1,600,000 | $ 1,600,000 | |||||||
1997 Amended License Agreement [Member] | |||||||||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||||||||
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 | 5,800,000 | $ 5,400,000 | $ 4,500,000 | ||||||
Minimum investment per year | $ 800,000 |
EQUITY AND CASH COMPENSATION 66
EQUITY AND CASH COMPENSATION UNDER THE PPG AGREEMENTS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Sep. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term Purchase Commitment [Line Items] | |||||
Percent of services payable in cash or shares | 50.00% | ||||
Issuance of common stock in connection with materials and license agreements (in shares) | 0 | 0 | 0 | ||
New OLED Materials Agreement and OLED Materials Agreement [Member] | Cash Distribution | |||||
Long-term Purchase Commitment [Line Items] | |||||
Charges to expense for cash portion of reimbursement of expenses | $ 2.3 | $ 7.9 | $ 9.2 | ||
New OLED Materials Agreement and OLED Materials Agreement [Member] | Weighted Average | |||||
Long-term Purchase Commitment [Line Items] | |||||
Minimum average closing price of common stock (in dollars per share) | $ 20 | $ 20 |
SHAREHOLDERS' EQUITY - Addition
SHAREHOLDERS' EQUITY - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2016board_member$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 1995shares | |
Class Of Stock [Line Items] | |||
Preferred Stock, shares authorized ( in shares) | 5,000,000 | 5,000,000 | |
Number of board members elected by class A shareholders | board_member | 2 | ||
Common stock voting rights | Each share of the Company’s common stock entitles the holder to one vote on all matters to be voted upon by the shareholders. | ||
Common Stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | |
Common Stock, par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | |
Common Stock, shares issued (in shares) | 48,270,990 | 48,132,223 | |
Common Stock, shares outstanding (in shares) | 46,913,127 | 46,774,360 | |
Series A Nonconvertible Preferred Stock [Member] | |||
Class Of Stock [Line Items] | |||
Preferred Stock, shares issued (in shares) | 200,000 | 200,000 | 200,000 |
Preferred Stock, liquidation value per share (in dollars per share) | $ / shares | $ 7.50 | $ 7.50 | |
Preferred stock voting rights | Holders of the Series A shares are entitled to one vote per share on matters which shareholders are generally entitled to vote. | ||
Preferred Stock, shares outstanding (in shares) | 200,000 | 200,000 |
SHAREHOLDERS' EQUITY - Deferred
SHAREHOLDERS' EQUITY - Deferred Compensation Arrangement - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | |||||
Fair value of shares withheld for tax withholding obligations | $ 4,871,000 | $ 5,337,000 | $ 2,844,000 | ||
Employees and Non Employee Members of Scientific Advisory Board [Member] | |||||
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | |||||
Shares issued (in shares) | 27,967 | 35,205 | |||
Employees [Member] | |||||
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | |||||
Fair value of shares issued | $ 1,100,000 | $ 967,000 | |||
Shares withheld for tax withholding obligations (in shares) | 8,106 | 9,565 | |||
Fair value of shares withheld for tax withholding obligations | $ 410,000 | $ 346,000 | |||
Members of Scientific Advisory Board [Member] | |||||
Deferred Compensation Arrangement with Employees and Non-Employees, Share-Based Payments [Line Items] | |||||
Fair value of shares issued | $ 300,000 | $ 300,000 |
ACCUMULATED OTHER COMPREHENSI69
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | $ 466,765 | $ 448,742 | $ 427,686 | |
Other comprehensive loss before reclassification | (1,931) | (471) | (389) | |
Plan amendment cost | (5,963) | |||
Reclassification to net income | [1] | 1,084 | 997 | 375 |
TOTAL OTHER COMPREHENSIVE LOSS | (847) | (5,437) | (14) | |
BALANCE | 528,468 | 466,765 | 448,742 | |
Unrealized (loss) on available-for-sale securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | (111) | (28) | (24) | |
Other comprehensive loss before reclassification | (135) | (83) | (4) | |
TOTAL OTHER COMPREHENSIVE LOSS | (135) | (83) | (4) | |
BALANCE | (246) | (111) | (28) | |
Net unrealized gain (loss) on retirement plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | [2] | (9,708) | (4,354) | (4,344) |
Other comprehensive loss before reclassification | [2] | (1,731) | (388) | (385) |
Plan amendment cost | [2] | (5,963) | ||
Reclassification to net income | [1],[2] | 1,084 | 997 | 375 |
TOTAL OTHER COMPREHENSIVE LOSS | [2] | (647) | (5,354) | (10) |
BALANCE | [2] | (10,355) | (9,708) | (4,354) |
Change in cumulative foreign currency translation adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Other comprehensive loss before reclassification | (65) | |||
TOTAL OTHER COMPREHENSIVE LOSS | (65) | |||
BALANCE | (65) | |||
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
BALANCE | (9,819) | (4,382) | (4,368) | |
TOTAL OTHER COMPREHENSIVE LOSS | (847) | (5,437) | (14) | |
BALANCE | $ (10,666) | $ (9,819) | $ (4,382) | |
[1] | The Company reclassified amortization of plan amendment cost, prior service cost, and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income of $1.1 million, $1.0 million, and $375,000 for the years ended December 31, 2016, 2015, and 2014, respectively. | |||
[2] | Refer to Note 15: Employee Retirement Plans |
ACCUMULATED OTHER COMPREHENSI70
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||||
Reclassification to net income | [1] | $ 1,084 | $ 997 | $ 375 |
[1] | The Company reclassified amortization of plan amendment cost, prior service cost, and actuarial loss for its retirement plan from accumulated other comprehensive loss to net income of $1.1 million, $1.0 million, and $375,000 for the years ended December 31, 2016, 2015, and 2014, respectively. |
STOCK-BASED COMPENSATION - Equi
STOCK-BASED COMPENSATION - Equity Compensation Plan - Additional Information (Details) - Equity Compensation Plan [Member] | 12 Months Ended |
Dec. 31, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized (in shares) | 10,500,000 |
Number of shares available for grant (in shares) | 2,588,837 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration term (in years) | 10 years |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options, Outstanding at January 1, 2016 | 16,500 | ||
Options, Granted | 0 | 0 | 0 |
Options, Exercised | (12,750) | ||
Options, Forfeited/ Expired | (250) | ||
Options, Cancelled | 0 | ||
Options, Outstanding at December 31, 2016 | 3,500 | 16,500 | |
Options, Vested and expected to vest | 3,500 | ||
Options, Exercisable at December 31, 2016 | 3,500 | ||
Weighted Average Exercise Price, Outstanding at January 1, 2016 | $ 14.83 | ||
Weighted Average Exercise Price, Granted | 0 | ||
Weighted Average Exercise Price, Exercised | 14.51 | ||
Weighted Average Exercise Price, Forfeited/ Expired | 0 | ||
Weighted Average Exercise Price, Cancelled | 0 | ||
Weighted Average Exercise Price, Outstanding at December 31, 2016 | 15.99 | $ 14.83 | |
Weighted Average Exercise Price, Vested and expected to vest | 15.99 | ||
Weighted Average Exercise Price, Exercisable at December 31, 2016 | $ 15.99 |
STOCK-BASED COMPENSATION - St73
STOCK-BASED COMPENSATION - Stock Options - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in shares) | 0 | 0 | 0 |
Total intrinsic value of stock options exercised | $ 507,000 | $ 12,000,000 | $ 3,700,000 |
Compensation expense | $ 0 | $ 0 | $ 0 |
Shares tendered to net share settle (in shares) | 0 | 13,959 | 0 |
Value of shares tendered to net share settle exercise of options | $ 429,000 | ||
Fair value of shares withheld for tax withholding obligations | $ 4,871,000 | $ 5,337,000 | $ 2,844,000 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares withheld for tax withholding obligations (in shares) | 30,186 | ||
Fair value of shares withheld for tax withholding obligations | $ 1,300,000 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock Options Outstanding and Exercisable by Price Range (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)$ / sharesshares | ||
Outstanding and Exercisable [Abstract] | ||
Outstanding and Exercisable, Number of Options Outstanding at December 31, 2016 | shares | 3,500 | |
Outstanding and Exercisable, Weighted Average Remaining Contractual Life (Years) | 11 months 5 days | |
Outstanding and Exercisable, Weighted Average Exercise Price | $ 15.99 | |
Outstanding and Exercisable, Aggregate Intrinsic Value | $ | $ 141 | [1] |
$10.04–$12.70 [Member] | ||
Outstanding and Exercisable [Abstract] | ||
Outstanding and Exercisable, Number of Options Outstanding at December 31, 2016 | shares | 750 | |
Outstanding and Exercisable, Weighted Average Remaining Contractual Life (Years) | 1 year 8 months 12 days | |
Outstanding and Exercisable, Weighted Average Exercise Price | $ 10.93 | |
Outstanding and Exercisable, Aggregate Intrinsic Value | $ | $ 34 | [1] |
Outstanding and Exercisable, Lower range limit (in dollars per share) | $ 10.04 | |
Outstanding and Exercisable, Upper range limit (in dollars per share) | $ 12.70 | |
$14.16-$14.39 [Member] | ||
Outstanding and Exercisable [Abstract] | ||
Outstanding and Exercisable, Number of Options Outstanding at December 31, 2016 | shares | 250 | |
Outstanding and Exercisable, Weighted Average Remaining Contractual Life (Years) | 1 month 6 days | |
Outstanding and Exercisable, Weighted Average Exercise Price | $ 14.16 | |
Outstanding and Exercisable, Aggregate Intrinsic Value | $ | $ 11 | [1] |
Outstanding and Exercisable, Lower range limit (in dollars per share) | $ 14.16 | |
Outstanding and Exercisable, Upper range limit (in dollars per share) | $ 14.39 | |
$15.22–$18.34 [Member] | ||
Outstanding and Exercisable [Abstract] | ||
Outstanding and Exercisable, Number of Options Outstanding at December 31, 2016 | shares | 2,500 | |
Outstanding and Exercisable, Weighted Average Remaining Contractual Life (Years) | 9 months 18 days | |
Outstanding and Exercisable, Weighted Average Exercise Price | $ 17.69 | |
Outstanding and Exercisable, Aggregate Intrinsic Value | $ | $ 96 | [1] |
Outstanding and Exercisable, Lower range limit (in dollars per share) | $ 15.22 | |
Outstanding and Exercisable, Upper range limit (in dollars per share) | $ 18.34 | |
[1] | The difference between the stock option’s exercise price and the closing price of common stock at December 31, 2016. |
STOCK-BASED COMPENSATION, Equit
STOCK-BASED COMPENSATION, Equity Instruments Other Than Options (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock Units (RSUs) [Member] | |||
Equity instruments other than options [Roll Forward] | |||
Number of Shares, Unvested, January 1, 2016 | 164,674 | ||
Number of Shares, Granted | 73,793 | ||
Number of Shares, Vested | (101,739) | ||
Number of Shares, Forfeited | (5,609) | ||
Number of Shares, Unvested, December 31, 2016 | 131,119 | 164,674 | |
Equity instruments other than options, additional disclosures [Abstract] | |||
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2016 | $ 37.49 | ||
Weighted-Average Grant-Date Fair Value, Granted | 53.85 | $ 41.09 | $ 37.95 |
Weighted-Average Grant-Date Fair Value, Vested | 38.96 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 40.34 | ||
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2016 | $ 45.44 | $ 37.49 | |
Restricted Stock [Member] | |||
Equity instruments other than options [Roll Forward] | |||
Number of Shares, Unvested, January 1, 2016 | 787,324 | ||
Number of Shares, Granted | 124,744 | ||
Number of Shares, Vested | (162,113) | ||
Number of Shares, Forfeited | 0 | ||
Number of Shares, Unvested, December 31, 2016 | 749,955 | 787,324 | |
Equity instruments other than options, additional disclosures [Abstract] | |||
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2016 | $ 43.43 | ||
Weighted-Average Grant-Date Fair Value, Granted | 65.37 | $ 43.49 | 32.54 |
Weighted-Average Grant-Date Fair Value, Vested | 45.48 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 0 | ||
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2016 | $ 46.64 | $ 43.43 | |
Performance Shares [Member] | |||
Equity instruments other than options [Roll Forward] | |||
Number of Shares, Unvested, January 1, 2016 | 68,724 | ||
Number of Shares, Granted | 25,045 | 32,632 | |
Number of Shares, Vested | 0 | ||
Number of Shares, Forfeited | 0 | ||
Number of Shares, Unvested, December 31, 2016 | 93,769 | 68,724 | |
Equity instruments other than options, additional disclosures [Abstract] | |||
Weighted-Average Grant-Date Fair Value, Unvested, January 1, 2016 | $ 34.63 | ||
Weighted-Average Grant-Date Fair Value, Granted | 58.46 | $ 35.98 | $ 38.67 |
Weighted-Average Grant-Date Fair Value, Vested | 0 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 0 | ||
Weighted-Average Grant-Date Fair Value, Unvested, December 31, 2016 | $ 46.02 | $ 34.63 |
STOCK-BASED COMPENSATION - Eq76
STOCK-BASED COMPENSATION - Equity Instruments Other Than Options - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 0 | $ 0 | $ 0 |
Fair value of shares withheld for tax withholding obligations | $ 4,871,000 | $ 5,337,000 | $ 2,844,000 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of restricted stock awards and units fully vested (in dollars per share) | $ 53.85 | $ 41.09 | $ 37.95 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 5,400,000 | $ 5,600,000 | $ 3,100,000 |
Grants in period (shares) | 73,793 | ||
Restricted Stock Units (RSUs) [Member] | Research and Development Expense [Member] | Non Employee Members of Scientific Advisory Board [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 242,000 | $ 426,000 | $ 175,000 |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of restricted stock awards and units fully vested (in dollars per share) | $ 65.37 | $ 43.49 | $ 32.54 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 8,600,000 | $ 7,300,000 | $ 4,600,000 |
Shares withheld for employee taxes (shares) | 84,135 | 99,345 | 75,760 |
Shares withheld for employee taxes | $ 4,500,000 | $ 4,200,000 | $ 2,600,000 |
Grants in period (shares) | 124,744 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 32,300,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 5 months 9 days | ||
Restricted Stock [Member] | Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 6,600,000 | 5,800,000 | 3,600,000 |
Restricted Stock [Member] | Manufacturing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 1,100,000 | 178,000 | 110,000 |
Restricted Stock [Member] | Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,700,000 | $ 1,900,000 | $ 1,800,000 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant-date fair value of restricted stock awards and units fully vested (in dollars per share) | $ 58.46 | $ 35.98 | $ 38.67 |
Shares withheld for employee taxes (shares) | 0 | ||
Grants in period (shares) | 25,045 | 32,632 | |
Shares withheld for tax withholding obligations (in shares) | 16,071 | ||
Fair value of shares withheld for tax withholding obligations | $ 752,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,600,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months | ||
Performance Shares [Member] | Performance-Based Vesting Requirement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 12,520 | 16,315 | |
Performance Shares [Member] | Market-Based Vesting Requirement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants in period (shares) | 12,525 | 16,317 | |
Performance Shares [Member] | Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 1,300,000 | $ 854,000 | $ 1,400,000 |
Performance Shares [Member] | Manufacturing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 133,000 | 17,000 | 28,000 |
Performance Shares [Member] | Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | $ 356,000 | $ 237,000 | $ 408,000 |
STOCK-BASED COMPENSATION - Boar
STOCK-BASED COMPENSATION - Board of Directors Compensation - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Stock [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 32,300,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 3 years 5 months 9 days | ||
Director [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Restricted stock awards and units vesting terms | 1 year | ||
Fair value of shares issued | $ 1,500,000 | $ 865,000 | $ 797,000 |
Shares issued (in shares) | 30,000 | 29,167 | 23,750 |
STOCK-BASED COMPENSATION - Empl
STOCK-BASED COMPENSATION - Employee Stock Purchase Plan - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 25, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Proceeds from common stock issued | $ 566,000 | $ 447,000 | $ 328,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [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) | 9,386 | 12,246 | 12,373 | |
Proceeds from common stock issued | $ 439,000 | $ 354,000 | $ 328,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Charges to expense | 45,000 | 34,000 | 36,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | Manufacturing Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Charges to expense | 15,000 | 9,000 | 8,000 | |
Employee Stock Purchase Plan (ESPP) [Member] | Research and Development Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Charges to expense | $ 67,000 | $ 50,000 | $ 52,000 |
EMPLOYEE RETIREMENT PLANS - Add
EMPLOYEE RETIREMENT PLANS - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)participantmultipledenominator | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Maximum contribution percentage (in hundredths) | 90.00% | ||
Matching percentage (in hundredths) | 50.00% | ||
Matching contribution limit (in hundredths) | 6.00% | ||
Contributions to the 401(k) Plan | $ 459,000 | $ 348,000 | $ 320,000 |
Initial prior service cost for retirement plan | 5,963,000 | ||
Prior service cost expected to be amortized in next fiscal year | $ 1,660,000 | ||
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of participants | participant | 6 | ||
Factor used to determine annual base salary | multiple | 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 | denominator | 20 | ||
Installment period (in years) | 10 years | ||
Benefit percentage for special participants (in hundredths) | 50.00% | ||
Initial prior service cost for retirement plan | $ 12,700,000 | ||
Prior service cost expected to be amortized in next fiscal year | 1,800,000 | ||
Accumulated benefit obligation | $ 24,700,000 | $ 20,000,000 | |
Defined benefit plan threshold of benefit obligation at which actuarial losses are amortized (in hundredths) | 10.00% |
EMPLOYEE RETIREMENT PLANS - Inf
EMPLOYEE RETIREMENT PLANS - Information Relating to the Company's Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Change in benefit obligation: | ||
Benefit obligation, beginning of year | $ 22,594 | $ 10,916 |
Service cost | 1,415 | 1,186 |
Interest cost | 875 | 618 |
Actuarial loss | 2,679 | 606 |
Plan amendment | 9,268 | |
Benefit obligation, end of year | 27,563 | 22,594 |
Unfunded status of the plan, end of year | 27,563 | 22,594 |
Noncurrent liability | $ 27,563 | $ 22,594 |
EMPLOYEE RETIREMENT PLANS - Com
EMPLOYEE RETIREMENT PLANS - Components of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of net periodic pension cost [Abstract] | |||
Service cost | $ 1,415 | $ 1,186 | |
Interest cost | 875 | 618 | |
Supplemental Executive Retirement Plan [Member] | |||
Components of net periodic pension cost [Abstract] | |||
Service cost | 1,415 | 1,186 | $ 669 |
Interest cost | 875 | 618 | 426 |
Amortization of prior service cost | 1,660 | 1,550 | 584 |
Amortization of loss | 15 | ||
Total net periodic benefit cost | $ 3,965 | $ 3,354 | $ 1,679 |
EMPLOYEE RETIREMENT PLANS - Ass
EMPLOYEE RETIREMENT PLANS - Assumptions Used to Determine Benefit Obligation (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
Assumptions used to determine the year end benefit obligation [Abstract] | ||
Discount rate | 3.57% | 3.78% |
Rate of compensation increases | 3.50% | 3.50% |
EMPLOYEE RETIREMENT PLANS - A83
EMPLOYEE RETIREMENT PLANS - Assumptions Used to Determine Net Periodic Pension Cost (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Assumptions used to determine the net periodic pension cost [Abstract] | |||
Discount rate | 3.57% | 3.78% | 4.51% |
Rate of compensation increases | 3.50% | 3.50% | 3.50% |
EMPLOYEE RETIREMENT PLANS - Amo
EMPLOYEE RETIREMENT PLANS - Amounts to be Amortized from Accumulated Other Comprehensive Loss into Net Periodic Pension Cost in Next Fiscal Year (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Estimated amounts to be amortized from accumulated other comprehensive loss in next fiscal year [Abstract] | |
Amortization of prior service cost | $ 1,660 |
Amortization of loss | 188 |
Total | $ 1,848 |
EMPLOYEE RETIREMENT PLANS - Ben
EMPLOYEE RETIREMENT PLANS - Benefit Payments Expected to be Paid (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Benefit payments currently expected to be paid [Abstract] | |
2,018 | $ 906 |
2,019 | 2,252 |
2,020 | 2,375 |
2,021 | 2,460 |
2022-2026 | 16,122 |
Thereafter | $ 24,429 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) | Dec. 31, 2016USD ($)multipleexecutive_officer | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Loss Contingencies [Line Items] | |||
Purchase commitments for inventory | $ | $ 5,000,000 | $ 9,000,000 | $ 9,100,000 |
Commitment With Executive Officers [Member] | |||
Loss Contingencies [Line Items] | |||
Number of executive officers under agreement | executive_officer | 7 | ||
Multiple of sum of average annual base salary and bonus agreement terms | multiple | 2 |
CONCENTRATION OF RISK - Additio
CONCENTRATION OF RISK - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016USD ($) | [1] | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | [1] | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | [1] | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | [1],[2] | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)supplier | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Concentration Risk [Line Items] | |||||||||||||||
Revenue | $ 74,577,000 | $ 30,214,000 | $ 64,392,000 | $ 29,703,000 | $ 62,312,000 | $ 39,419,000 | $ 58,092,000 | $ 31,223,000 | $ 198,886,000 | $ 191,046,000 | $ 191,031,000 | ||||
Supplier Concentration Risk [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Number of suppliers from which chemical materials were purchased | supplier | 1 | ||||||||||||||
Total Revenue [Member] | Government Contracts Concentration Risk [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenue | $ 156,000 | $ 185,000 | $ 118,000 | ||||||||||||
Concentration risk, percentage (less than 1% for contracts with U.S. government agencies) | 1.00% | 1.00% | 1.00% | ||||||||||||
Total Revenue [Member] | Customer Concentration Risk [Member] | Excluding North America [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Concentration risk, percentage (less than 1% for contracts with U.S. government agencies) | 98.00% | 99.00% | 99.00% | ||||||||||||
[1] | The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. | ||||||||||||||
[2] | Includes a $33.0 million write down of inventory |
CONCENTRATION OF RISK - Revenue
CONCENTRATION OF RISK - Revenues and Accounts Receivable From Our Largest Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 24,994 | $ 24,729 | |
Major Customer A [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
% of Total Revenue | 63.00% | 62.00% | 54.00% |
Major Customer A [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 12,050 | $ 13,355 | $ 8,550 |
Major Customer B [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
% of Total Revenue | 28.00% | 25.00% | 19.00% |
Major Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 9,128 | $ 8,477 | $ 7,598 |
Major Customer C [Member] | Total Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
% of Total Revenue | 4.00% | 1.00% | 1.00% |
Major Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Accounts Receivable | $ 1,427 | $ 1,564 | $ 540 |
CONCENTRATION OF RISK - Reven89
CONCENTRATION OF RISK - Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | [1] | Sep. 30, 2016 | Jun. 30, 2016 | [1] | Mar. 31, 2016 | Dec. 31, 2015 | [1] | Sep. 30, 2015 | Jun. 30, 2015 | [1],[2] | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||||||||||||||
Revenues | $ 74,577 | $ 30,214 | $ 64,392 | $ 29,703 | $ 62,312 | $ 39,419 | $ 58,092 | $ 31,223 | $ 198,886 | $ 191,046 | $ 191,031 | ||||
South Korea [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenues | 181,771 | 168,267 | 141,922 | ||||||||||||
China [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenues | 7,180 | 2,685 | 1,260 | ||||||||||||
Japan [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenues | 4,310 | 16,542 | 44,903 | ||||||||||||
Other Non-U.S. Locations [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenues | 1,849 | 2,334 | 2,240 | ||||||||||||
Total Non-U.S. Locations [Member] | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenues | 195,110 | 189,828 | 190,325 | ||||||||||||
UNITED STATES | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Revenues | $ 3,776 | $ 1,218 | $ 706 | ||||||||||||
[1] | The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. | ||||||||||||||
[2] | Includes a $33.0 million write down of inventory |
CONCENTRATION OF RISK - Long-Li
CONCENTRATION OF RISK - Long-Lived Assets (Net) by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 27,203 | $ 22,407 |
UNITED STATES | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | 26,917 | 22,187 |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long-lived assets | $ 286 | $ 220 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of income before income taxes [Abstract] | |||
United States | $ 69,595 | $ 54,338 | $ 60,485 |
Foreign | (997) | (21,279) | (1,158) |
INCOME BEFORE INCOME TAXES | $ 68,598 | $ 33,059 | $ 59,327 |
INCOME TAXES - Components of 92
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current income tax benefit (expense): | |||
Federal | $ (4,485) | $ (1,018) | |
State | (47) | (2) | $ (2) |
Foreign | (12,902) | (10,224) | (8,363) |
Current income tax benefit (expense) | (17,434) | (11,244) | (8,365) |
Deferred income tax (expense) benefit: | |||
Federal | (2,683) | (7,145) | (9,652) |
State | (503) | 51 | 575 |
Foreign | 92 | (43) | (31) |
Deferred income tax expense, gross | (3,094) | (7,137) | (9,108) |
Income tax expense | $ (20,528) | $ (18,381) | $ (17,473) |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Statutory U.S. Federal Tax Rate to the Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Continuing Operations Tax Rate Reconciliation [Abstract] | |||
Statutory U.S. federal income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 0.50% | (0.10%) | (0.40%) |
Effect of foreign operations | 0.90% | 15.20% | 0.70% |
Accruals and reserves | 3.20% | 0.00% | (4.50%) |
Nondeductible employee compensation | 1.50% | 2.50% | 0.50% |
Research tax credits | (1.30%) | (4.40%) | (2.50%) |
Change in valuation allowance | (9.70%) | 8.40% | (0.40%) |
Other | (0.20%) | (1.00%) | 1.00% |
Effective tax rate | 29.90% | 55.60% | 29.40% |
INCOME TAXES - Tax Loss and Tax
INCOME TAXES - Tax Loss and Tax Credit Carryforwards (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total loss carry forwards, Related Tax Deduction | $ 27,473 |
Total loss carry forwards, Tax Benefit | 3,434 |
Total credit carry forwards, Tax Benefit | 28,833 |
Foreign [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total loss carry forwards, Related Tax Deduction | 27,473 |
Total loss carry forwards, Tax Benefit | 3,434 |
Total credit carry forwards, Tax Benefit | $ 13,754 |
Foreign [Member] | Minimum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2023 |
Foreign [Member] | Maximum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2026 |
State [Member] | Research Tax Credit [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total credit carry forwards, Tax Benefit | $ 2,383 |
State [Member] | Research Tax Credit [Member] | Minimum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2023 |
State [Member] | Research Tax Credit [Member] | Maximum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2030 |
Federal [Member] | Research Tax Credit [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Total credit carry forwards, Tax Benefit | $ 12,696 |
Federal [Member] | Research Tax Credit [Member] | Minimum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2027 |
Federal [Member] | Research Tax Credit [Member] | Maximum [Member] | |
Tax Credit And Operating Loss Carryforwards [Line Items] | |
Tax credit carryforwards, Expiration Date | Dec. 31, 2036 |
INCOME TAXES - Tax Loss and T95
INCOME TAXES - Tax Loss and Tax Credit Carryforwards (Parenthetical) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Income Tax Disclosure [Abstract] | |
Windfalls included in net operating loss carryforwards | $ 75.6 |
Windfalls included in net operating loss carryforwards, tax benefit | $ 26.9 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Line Items] | |||
Net operating loss carry forwards | $ 3,405 | $ 3,716 | |
Current income tax expense | $ 12,902 | 10,224 | $ 8,363 |
Withholding tax rate for royalty payments | 16.50% | ||
U.S. Foreign Tax Credits [Member] | |||
Income Taxes [Line Items] | |||
U.S. foreign tax credits valuation allowance | $ 6,500 | ||
ASU No. 2016-09 [Member] | |||
Income Taxes [Line Items] | |||
Adjustment to retained earnings due to adoption of accounting standard | 26,900 | ||
Foreign [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carry forwards | 3,434 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Tax credit carryforwards, research | 1,846 | ||
South Korea [Member] | |||
Income Taxes [Line Items] | |||
Current income tax expense | $ 12,400 | $ 9,900 | $ 8,300 |
INCOME TAXES - Significant Comp
INCOME TAXES - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax asset: | ||
Net operating loss carry forwards | $ 3,405 | $ 3,716 |
Capitalized technology license | 4,163 | 3,922 |
Capitalized research expenditures | 8,100 | 10,206 |
Accruals and reserves | 1,112 | 3,275 |
Retirement plan | 9,723 | 8,062 |
Deferred revenue | 516 | 731 |
Tax credit carry forwards | 1,846 | 7,973 |
Stock-based compensation | 2,889 | 2,012 |
Other | 874 | 1,857 |
Deferred Tax Assets, Gross | 32,628 | 41,754 |
Valuation allowance | (7,950) | (14,483) |
Deferred tax assets | 24,678 | 27,271 |
Deferred tax liability: | ||
Acquisition goodwill | (185) | |
Deferred tax liabilities | (185) | |
Net deferred tax assets | $ 24,493 | $ 27,271 |
NET INCOME PER COMMON SHARE - S
NET INCOME PER COMMON SHARE - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Numerator: | ||||||||||||
NET INCOME | $ 25,819 | $ (1,500) | $ 21,802 | $ 1,949 | $ 18,088 | $ 7,047 | $ (11,771) | [1] | $ 1,314 | $ 48,070 | $ 14,678 | $ 41,854 |
Adjustment for basic EPS: | ||||||||||||
Earnings allocated to unvested securities | (734) | (138) | (57) | |||||||||
Adjusted net income | $ 47,336 | $ 14,540 | $ 41,797 | |||||||||
Denominator: | ||||||||||||
Weighted average common shares outstanding – Basic | 46,408,460 | 46,816,394 | 46,252,960 | |||||||||
Effect of dilutive shares: | ||||||||||||
Common stock equivalents arising from stock options and ESPP | 5,398 | 267,145 | 265,129 | |||||||||
Restricted stock awards and units and performance units | 122,122 | 410,649 | 167,056 | |||||||||
Weighted average common shares outstanding – Diluted | 46,535,980 | 47,494,188 | 46,685,145 | |||||||||
Basic | $ 0.55 | $ (0.03) | $ 0.46 | $ 0.04 | $ 0.39 | $ 0.15 | $ (0.25) | $ 0.03 | $ 1.02 | $ 0.31 | $ 0.90 | |
Diluted | $ 0.55 | $ (0.03) | $ 0.46 | $ 0.04 | $ 0.39 | $ 0.15 | $ (0.25) | $ 0.03 | $ 1.02 | $ 0.31 | $ 0.90 | |
[1] | Includes a $33.0 million write down of inventory |
NET INCOME PER COMMON SHARE - A
NET INCOME PER COMMON SHARE - Additional Information (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from calculation of diluted EPS | 2,981 | 17,055 | 87,894 |
QUARTERLY SUPPLEMENTAL FINAN100
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Revenue | $ 74,577 | [1] | $ 30,214 | $ 64,392 | [1] | $ 29,703 | $ 62,312 | [1] | $ 39,419 | $ 58,092 | [1],[2] | $ 31,223 | $ 198,886 | $ 191,046 | $ 191,031 |
Net income (loss) | $ 25,819 | $ (1,500) | $ 21,802 | $ 1,949 | $ 18,088 | $ 7,047 | $ (11,771) | [2] | $ 1,314 | $ 48,070 | $ 14,678 | $ 41,854 | |||
Net income (loss) per common share: | |||||||||||||||
Basic | $ 0.55 | $ (0.03) | $ 0.46 | $ 0.04 | $ 0.39 | $ 0.15 | $ (0.25) | $ 0.03 | $ 1.02 | $ 0.31 | $ 0.90 | ||||
Diluted | $ 0.55 | $ (0.03) | $ 0.46 | $ 0.04 | $ 0.39 | $ 0.15 | $ (0.25) | $ 0.03 | $ 1.02 | $ 0.31 | $ 0.90 | ||||
[1] | The Company receives significant license revenue in the second and fourth quarters; see Note 2 for further details. | ||||||||||||||
[2] | Includes a $33.0 million write down of inventory |
QUARTERLY SUPPLEMENTAL FINAN101
QUARTERLY SUPPLEMENTAL FINANCIAL DATA (UNAUDITED) (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Inventory write-down | $ 33,000 | $ 33,000 | $ 3,900 |
SUBSEQUENT EVENTS - Additional
SUBSEQUENT EVENTS - Additional Information (Details) - $ / shares | Feb. 23, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||
Dividend declared date | 2017-02 | |
Dividend payable date | Mar. 31, 2017 | |
Dividend record date | Mar. 15, 2017 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Common stock dividend declared per share | $ 0.03 |