Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 10, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'UNIVERSAL ELECTRONICS INC | ' | ' |
Entity Central Index Key | '0000101984 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $344,164,361 |
Entity Common Stock, Shares Outstanding | ' | 15,889,800 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $76,174 | $44,593 |
Accounts receivable, net | 95,408 | 91,048 |
Inventories, net | 96,309 | 84,381 |
Prepaid expenses and other current assets | 4,395 | 3,661 |
Income tax receivable | 13 | 270 |
Deferred income taxes | 6,167 | 5,210 |
Total current assets | 278,466 | 229,163 |
Property, plant, and equipment, net | 75,570 | 77,706 |
Goodwill | 31,000 | 30,890 |
Intangible assets, net | 26,963 | 29,835 |
Other assets | 5,279 | 5,361 |
Deferred income taxes | 6,455 | 6,369 |
Total assets | 423,733 | 379,324 |
Current liabilities: | ' | ' |
Accounts payable | 58,498 | 59,831 |
Line of credit | 0 | 0 |
Accrued compensation | 38,317 | 33,398 |
Accrued sales discounts, rebates and royalties | 8,539 | 8,093 |
Accrued income taxes | 3,032 | 3,668 |
Deferred income taxes | 303 | 41 |
Other accrued expenses | 11,229 | 10,644 |
Total current liabilities | 119,918 | 115,675 |
Long-term liabilities: | ' | ' |
Deferred income taxes | 9,887 | 10,687 |
Income tax payable | 606 | 525 |
Other long-term liabilities | 2,052 | 1,787 |
Total liabilities | 132,463 | 128,674 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock, $0.01 par value, 5,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $0.01 par value, 50,000,000 shares authorized; 22,344,121 and 21,491,398 shares issued on December 31, 2013 and 2012, respectively | 223 | 215 |
Paid-in capital | 199,513 | 180,607 |
Accumulated other comprehensive income (loss) | 2,982 | 1,052 |
Retained earnings | 193,532 | 170,569 |
Stockholders' equity before treasury stock | 396,250 | 352,443 |
Less cost of common stock in treasury, 6,639,497 and 6,516,382 shares on December 31, 2013 and 2012, respectively | -104,980 | -101,793 |
Total stockholders' equity | 291,270 | 250,650 |
Total liabilities and stockholders' equity | $423,733 | $379,324 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 22,344,121 | 21,491,398 |
Treasury stock, shares (in shares) | 6,639,497 | 6,516,382 |
CONSOLIDATED_INCOME_STATEMENTS
CONSOLIDATED INCOME STATEMENTS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Net sales | $529,354 | $463,090 | $468,630 |
Cost of sales | 377,892 | 329,653 | 338,569 |
Gross profit | 151,462 | 133,437 | 130,061 |
Research and development expenses | 16,447 | 14,152 | 12,267 |
Selling, general and administrative expenses | 102,861 | 93,083 | 91,218 |
Operating income | 32,154 | 26,202 | 26,576 |
Interest income (expense), net | 51 | -151 | -270 |
Other income (expense), net | -3,169 | -1,413 | -1,075 |
Income before provision for income taxes | 29,036 | 24,638 | 25,231 |
Provision for income taxes | 6,073 | 8,085 | 5,285 |
Net income | $22,963 | $16,553 | $19,946 |
Earnings per share: | ' | ' | ' |
Basic (in dollars per share) | $1.51 | $1.11 | $1.34 |
Diluted (in dollars per share) | $1.47 | $1.10 | $1.31 |
Shares used in computing earnings per share: | ' | ' | ' |
Basic (in shares) | 15,248 | 14,952 | 14,912 |
Diluted (in shares) | 15,601 | 15,110 | 15,213 |
CONSOLIDATED_COMPREHENSIVE_INC
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $22,963 | $16,553 | $19,946 |
Other comprehensive income (loss): | ' | ' | ' |
Change in foreign currency translation adjustment | 1,930 | 114 | 1,427 |
Comprehensive income | $24,893 | $16,667 | $21,373 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERSb EQUITY (USD $) | Total | Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings |
In Thousands | ||||||
Beginning balance at Dec. 31, 2010 | $211,204 | $209 | ($89,526) | $166,940 | ($489) | $134,070 |
Beginning balance (in shares) at Dec. 31, 2010 | ' | 20,877 | 5,926 | ' | ' | ' |
Net income | 19,946 | ' | ' | ' | ' | 19,946 |
Currency translation adjustment | 1,427 | ' | ' | ' | 1,427 | ' |
Shares issued for employee benefit plan and compensation (in shares) | ' | 164 | ' | ' | ' | ' |
Shares issued for employee benefit plan and compensation | 729 | 1 | ' | 728 | ' | ' |
Purchase of treasury shares (in shares) | -457 | ' | -457 | ' | ' | ' |
Purchase of treasury shares | -9,785 | ' | -9,785 | ' | ' | ' |
Stock options exercised (in shares) | 102 | 102 | ' | ' | ' | ' |
Stock options exercised | 1,677 | 1 | ' | 1,676 | ' | ' |
Shares Issued to Directors (in shares) | ' | ' | 30 | ' | ' | ' |
Shares issued to Directors | 0 | ' | 434 | -434 | ' | ' |
Stock-based compensation expense | 4,511 | ' | ' | 4,511 | ' | ' |
Tax benefit from exercise of non-qualified stock options and vested restricted stock | 280 | ' | ' | 280 | ' | ' |
Ending balance at Dec. 31, 2011 | 229,989 | 211 | -98,877 | 173,701 | 938 | 154,016 |
Ending balance (in shares) at Dec. 31, 2011 | ' | 21,143 | 6,353 | ' | ' | ' |
Net income | 16,553 | ' | ' | ' | ' | 16,553 |
Currency translation adjustment | 114 | ' | ' | ' | 114 | ' |
Shares issued for employee benefit plan and compensation (in shares) | ' | 159 | ' | ' | ' | ' |
Shares issued for employee benefit plan and compensation | 749 | 2 | ' | 747 | ' | ' |
Purchase of treasury shares (in shares) | -201 | ' | -201 | ' | ' | ' |
Purchase of treasury shares | -3,451 | ' | -3,451 | ' | ' | ' |
Stock options exercised (in shares) | 189 | 189 | ' | ' | ' | ' |
Stock options exercised | 2,204 | 2 | ' | 2,202 | ' | ' |
Shares Issued to Directors (in shares) | ' | ' | 38 | ' | ' | ' |
Shares issued to Directors | 0 | ' | 535 | -535 | ' | ' |
Stock-based compensation expense | 4,575 | ' | ' | 4,575 | ' | ' |
Tax benefit from exercise of non-qualified stock options and vested restricted stock | -83 | ' | ' | -83 | ' | ' |
Ending balance at Dec. 31, 2012 | 250,650 | 215 | -101,793 | 180,607 | 1,052 | 170,569 |
Ending balance (in shares) at Dec. 31, 2012 | ' | 21,491 | 6,516 | ' | ' | ' |
Net income | 22,963 | ' | ' | ' | ' | 22,963 |
Currency translation adjustment | 1,930 | ' | ' | ' | 1,930 | ' |
Shares issued for employee benefit plan and compensation (in shares) | ' | 174 | ' | ' | ' | ' |
Shares issued for employee benefit plan and compensation | 747 | 1 | ' | 746 | ' | ' |
Purchase of treasury shares (in shares) | -153 | ' | -153 | ' | ' | ' |
Purchase of treasury shares | -3,607 | ' | -3,607 | ' | ' | ' |
Stock options exercised (in shares) | 679 | 679 | ' | ' | ' | ' |
Stock options exercised | 12,371 | 7 | ' | 12,364 | ' | ' |
Shares Issued to Directors (in shares) | ' | ' | 30 | ' | ' | ' |
Shares issued to Directors | 0 | ' | 420 | -420 | ' | ' |
Stock-based compensation expense | 5,342 | ' | ' | 5,342 | ' | ' |
Tax benefit from exercise of non-qualified stock options and vested restricted stock | 874 | ' | ' | 874 | ' | ' |
Ending balance at Dec. 31, 2013 | $291,270 | $223 | ($104,980) | $199,513 | $2,982 | $193,532 |
Ending balance (in shares) at Dec. 31, 2013 | ' | 22,344 | 6,639 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash provided by operating activities: | ' | ' | ' |
Net income | $22,963 | $16,553 | $19,946 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 18,363 | 17,613 | 17,335 |
Provision for doubtful accounts | 190 | 73 | 277 |
Provision for inventory write-downs | 3,680 | 2,994 | 5,625 |
Deferred income taxes | -1,617 | 2,536 | -1,043 |
Tax benefit from exercise of stock options and vested restricted stock | 874 | -83 | 280 |
Excess tax benefit from stock-based compensation | -1,274 | -111 | -439 |
Shares issued for employee benefit plan | 747 | 749 | 729 |
Stock-based compensation | 5,342 | 4,575 | 4,511 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -4,509 | -8,998 | 3,142 |
Inventories | -15,353 | 2,987 | -30,597 |
Prepaid expenses and other assets | -633 | -588 | -345 |
Accounts payable and accrued expenses | 2,285 | 8,186 | -4,319 |
Accrued income and other taxes | -364 | -2,943 | -302 |
Net cash provided by operating activities | 30,694 | 43,543 | 14,800 |
Cash used for investing activities: | ' | ' | ' |
Acquisition of property, plant, and equipment | -10,355 | -10,463 | -13,630 |
Acquisition of intangible assets | -1,319 | -1,140 | -1,064 |
Net cash used for investing activities | -11,674 | -11,603 | -14,694 |
Cash (used for) provided by financing activities: | ' | ' | ' |
Issuance of debt | 19,500 | 30,800 | 4,200 |
Payment of debt | -19,500 | -47,200 | -22,800 |
Debt issuance costs | 0 | -42 | 0 |
Proceeds from stock options exercised | 12,371 | 2,204 | 1,677 |
Treasury stock purchased | -3,607 | -3,451 | -9,785 |
Excess tax benefit from stock-based compensation | 1,274 | 111 | 439 |
Net cash (used for) provided by financing activities | 10,038 | -17,578 | -26,269 |
Effect of exchange rate changes on cash | 2,523 | 859 | 1,286 |
Net increase (decrease) in cash and cash equivalents | 31,581 | 15,221 | -24,877 |
Cash and cash equivalents at beginning of year | 44,593 | 29,372 | 54,249 |
Cash and cash equivalents at end of period | 76,174 | 44,593 | 29,372 |
Supplemental Cash Flow Information: | ' | ' | ' |
Income taxes paid | 6,068 | 10,445 | 8,097 |
Interest payments | $44 | $304 | $438 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Description of Business | ' |
Description of Business | |
Universal Electronics Inc. ("UEI"), based in Southern California, develops and manufactures a broad line of easy-to-use, pre-programmed universal wireless control products and audio-video accessories as well as software designed to enable consumers to wirelessly connect, control and interact with an increasingly complex home entertainment environment. In addition, over the past 25 years we have developed a broad portfolio of patented technologies and a database of home connectivity software that we license to our customers, including many leading Fortune 500 companies. | |
Our primary markets include cable and satellite television service provider, original equipment manufacturer ("OEM"), retail, private label, and personal computing companies. We sell directly to our customers, and for retail we also sell through distributors in Europe, Australia, New Zealand, South Africa, the Middle East, Mexico, and selected countries in Asia and Latin America under the One For All® and Nevo® brand names. | |
As used herein, the terms "we", "us" and "our" refer to Universal Electronics Inc. and its subsidiaries unless the context indicates to the contrary. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Summary of Significant Accounting Policies | ' | |
Summary of Significant Accounting Policies | ||
Principles of Consolidation | ||
The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All the intercompany accounts and transactions have been eliminated in the consolidated financial statements. | ||
Reclassifications | ||
Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net income or stockholders' equity. | ||
Estimates and Assumptions | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowances for sales returns and doubtful accounts, warranties, inventory valuation, business combination purchase price allocations, our review for impairment of long-lived assets, intangible assets and goodwill, income taxes and compensation expense. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. | ||
Revenue Recognition | ||
We recognize revenue on the sale of products when title of the goods has transferred, there is persuasive evidence of an arrangement (such as when a purchase order is received from the customer), the sales price is fixed or determinable, and collectability is reasonably assured. | ||
The provision recorded for estimated sales returns is deducted from gross sales to arrive at net sales in the period the related revenue is recorded. These estimates are based on historical sales returns, analysis of credit memo data and other known factors. We have no obligations after delivery of our products other than the associated warranties. See Note 13 for further information concerning our warranty obligations. | ||
We accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers. Accruals for discounts and rebates are recorded as a reduction to sales in the same period as the related revenues. Changes in such accruals may be required if future rebates and incentives differ from our estimates. | ||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Sales allowances are recognized as reductions of gross accounts receivable to arrive at accounts receivable, net if the sales allowances are distributed in customer account credits. See Note 4 for further information concerning our sales allowances. | ||
Revenue for the sale of tooling is recognized when the related services have been provided, customer acceptance documentation has been obtained, the sales price is fixed or determinable, and collectability is reasonably assured. | ||
We generate service revenue, which is paid monthly, as a result of providing consumer support programs to some of our customers through our call centers. These service revenues are recognized when services are performed, persuasive evidence of an arrangement exists (such as when a signed agreement is received from the customer), the sales price is fixed or determinable, and collectability is reasonably assured. | ||
We license our intellectual property including our patented technologies, trademarks, and database of infrared codes. When our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property, persuasive evidence of an arrangement exists, the sales price is fixed or determinable, and collectability is reasonably assured. When a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process, we record revenues when delivery has occurred, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured. Revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we cannot reliably predict in which periods, within the term of the license, the licensee will benefit from the use of our patented inventions. | ||
We present all non-income government-assessed taxes (sales, use and value added taxes) collected from our customers and remitted to governmental agencies on a net basis (excluded from revenue) in our financial statements. The government-assessed taxes are recorded in other accrued expenses until they are remitted to the government agency. | ||
Income Taxes | ||
Income tax expense includes U.S. and foreign income taxes. We account for income taxes using the liability method. We record deferred tax assets and deferred tax liabilities on our balance sheet for expected future tax consequences of events recognized in our financial statements in a different period than our tax return using enacted tax rates that will be in effect when these differences reverse. We record a valuation allowance to reduce net deferred tax assets if we determine that it is more likely than not that the deferred tax assets will not be realized. A current tax asset or liability is recognized for the estimated taxes refundable or payable for the current year. | ||
Accounting standards prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of the positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. A "more likely than not" tax position is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement, or else a full reserve is established against the tax asset or a liability is recorded. See Note 9 for further information concerning income taxes. | ||
Research and Development | ||
Research and development costs are expensed as incurred and consist primarily of salaries, employee benefits, supplies and materials. | ||
Advertising | ||
Advertising costs are expensed as incurred. Advertising expense totaled $1.2 million, $1.3 million, and $1.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||
Shipping and Handling Fees and Costs | ||
We include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound freight are recorded in cost of goods sold. Other shipping and handling costs are included in selling, general and administrative expenses and totaled $11.3 million, $9.2 million and $9.7 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||
Stock-Based Compensation | ||
We recognize the grant date fair value of stock-based compensation awards as expense, net of estimated forfeitures, in proportion to vesting during the requisite service period, which ranges from one to four years. Estimated forfeiture rates are based upon historical forfeitures. | ||
We determine the fair value of restricted stock awards utilizing the average of the high and low trade prices of our Company's shares on the date they were granted. | ||
The fair value of stock options granted to employees and directors is determined utilizing the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model include risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate over the expected term is equal to the prevailing U.S. Treasury note rate over the same period. Expected volatility is determined utilizing historical volatility over a period of time equal to the expected life of the stock option. Expected life is computed utilizing historical exercise patterns and post-vesting behavior. The dividend yield is assumed to be zero since we have not historically declared dividends and do not have any plans to declare dividends in the future. See Note 16 for further information regarding stock-based compensation. | ||
Foreign Currency Translation and Foreign Currency Transactions | ||
We use the U.S. Dollar as our functional currency for financial reporting purposes. The functional currency for most of our foreign subsidiaries is their local currency. The translation of foreign currencies into U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using the average exchange rate during each period. The gains and losses resulting from the translation are included in the foreign currency translation adjustment account, a component of accumulated other comprehensive income in stockholders' equity, and are excluded from net income. The portions of intercompany accounts receivable and accounts payable that are intended for settlement are translated at exchange rates in effect at the balance sheet date. Our intercompany foreign investments and long-term debt that are not intended for settlement are translated using historical exchange rates. | ||
Transaction gains and losses generated by the effect of changes in foreign currency exchange rates on recorded assets and liabilities denominated in a currency different than the functional currency of the applicable entity are recorded in other income (expense), net. See Note 17 for further information concerning transaction gains and losses. | ||
Earnings Per Share | ||
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares, including the dilutive effect of stock option and restricted stock awards, outstanding during the period. Dilutive potential common shares for all periods presented are computed utilizing the treasury stock method. | ||
In the computation of diluted earnings per common share we exclude stock options with exercise prices greater than the average market price of the underlying common stock because their inclusion would be anti-dilutive. Furthermore, we exclude shares of restricted stock whose combined unamortized fair value and excess tax benefits are greater than the average market price of the underlying common stock during the period, as their effect would be anti-dilutive. | ||
Financial Instruments | ||
Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and debt. The carrying value of our financial instruments approximates fair value as a result of their short maturities. See Notes 3, 4, 5, 8, 10, and 11 for further information concerning our financial instruments. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions. See Note 3 for further information concerning cash and cash equivalents. | ||
Allowance for Doubtful Accounts | ||
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered. The allowance for doubtful accounts is based on a variety of factors, including credit reviews, historical experience, length of time receivables are past due, current economic trends and changes in customer payment behavior. | ||
We also record specific provisions for individual accounts when we become aware of a customer's inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer's operating results or financial position. If circumstances related to a customer change, our estimates of the recoverability of the receivables would be further adjusted. | ||
Inventories | ||
Inventories consist of remote controls, audio-video accessories as well as the related component parts and raw materials. Inventoriable costs include materials, labor, freight-in and manufacturing overhead related to the purchase and production of inventories. We value our inventories at the lower of cost or market. Cost is determined using the first-in, first-out method. We attempt to carry inventories in amounts necessary to satisfy our customer requirements on a timely basis. See Note 5 for further information concerning our inventories and suppliers. | ||
Product innovations and technological advances may shorten a given product's life cycle. We continually monitor our inventories to identify any excess or obsolete items on hand. We write-down our inventories for estimated excess and obsolescence in an amount equal to the difference between the cost of the inventories and estimated net realizable value. These estimates are based upon management's judgment about future demand and market conditions. Actual results may differ from management's judgments and additional write-downs may be required. | ||
Property, Plant, and Equipment | ||
Property, plant, and equipment are recorded at cost. The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. We capitalize additions and improvements and expense maintenance and repairs as incurred. To qualify for capitalization an asset must have a useful life greater than one year and a cost greater than $1,000 for individual assets or $5,000 for assets purchased in bulk. | ||
We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. | ||
For financial reporting purposes, depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included as a component of depreciation expense in operating income. | ||
Estimated useful lives consist of the following: | ||
Buildings | 25 years | |
Tooling and equipment | 2-7 Years | |
Computer equipment | 3-7 Years | |
Software | 3-5 Years | |
Furniture and fixtures | 5-7 Years | |
Leasehold improvements | Lesser of lease term or useful life | |
(approximately 2 to 10 years) | ||
See Note 6 for further information concerning our property, plant, and equipment. | ||
Goodwill | ||
We record the excess purchase price of net tangible and intangible assets acquired over their estimated fair value as goodwill. We evaluate the carrying value of goodwill on December 31 of each year and between annual evaluations if events occur or circumstances change that may reduce the fair value of the reporting unit below its carrying amount. Such circumstances may include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. | ||
When performing the impairment review, we determine the carrying amount of each reporting unit by assigning assets and liabilities, including the existing goodwill, to those reporting units. A reporting unit is defined as an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is deemed a reporting unit if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. We have a single reporting unit. | ||
To evaluate whether goodwill is impaired, we conduct a two-step quantitative goodwill impairment test. In the first step we compare the estimated fair value of the reporting unit to which the goodwill is assigned to the reporting unit's carrying amount, including goodwill. We estimate the fair value of our reporting unit based on income and market approaches. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. Under the market approach, we estimate the fair value based on market multiples of Enterprise Value to EBITDA for comparable companies. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. To calculate the implied fair value of the reporting unit's goodwill, the fair value of the reporting unit is first allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the reporting unit's fair value over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized equal to the amount by which the carrying value of goodwill exceeds its implied fair value. | ||
See Note 7 for further information concerning goodwill. | ||
Long-Lived and Intangible Assets Impairment | ||
Intangible assets consist principally of distribution rights, patents, trademarks, trade names, developed and core technologies, capitalized software development costs (see also Note 2 under the caption Capitalized Software Development Costs) and customer relationships. Capitalized amounts related to patents represent external legal costs for the application and maintenance of patents. Intangible assets are amortized using the straight-line method over their estimated period of benefit, ranging from one to fifteen years. | ||
We assess the impairment of long-lived assets and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important which may trigger an impairment review include the following: (1) significant underperformance relative to expected historical or projected future operating results; (2) significant changes in the manner or use of the assets or strategy for the overall business; (3) significant negative industry or economic trends and (4) a significant decline in our stock price for a sustained period. | ||
We conduct an impairment review when we determine that the carrying value of a long-lived or intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment. The asset is impaired if its carrying value exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. In assessing recoverability, we must make assumptions regarding estimated future cash flows and other factors. | ||
The impairment loss is the amount by which the carrying value of the asset exceeds its fair value. We estimate fair value utilizing the projected discounted cash flow method and a discount rate determined by our management to be commensurate with the risk inherent in our current business model. When calculating fair value, we must make assumptions regarding estimated future cash flows, discount rates and other factors. | ||
See Notes 6 and 15 for further information concerning long-lived assets. See Note 7 for further information concerning intangible assets. | ||
Capitalized Software Development Costs | ||
Costs incurred to develop software for resale are expensed when incurred as research and development until technological feasibility has been established. We have determined that technological feasibility for our products is typically established when a working prototype is complete. Once technological feasibility is established, software development costs are capitalized until the product is available for general release to customers. | ||
Capitalized software development costs are amortized on a product-by-product basis. Amortization is recorded in cost of sales and is the greater of the amounts computed using: | ||
a. | the net book value at the beginning of the period multiplied by the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product; or | |
b. | the straight-line method over the remaining estimated economic life of the product including the period being reported on. | |
The amortization of capitalized software development costs begins when the related product is available for general release to customers. The amortization periods normally range from one to two years. | ||
We compare the unamortized capitalized software development costs of a product to its net realizable value at each balance sheet date. The amount by which the unamortized capitalized software development costs exceed the product's net realizable value is written off. The net realizable value is the estimated future gross revenues of a product reduced by its estimated completion and disposal costs. Any remaining amount of capitalized software development costs are considered to be the cost for subsequent accounting purposes and the amount of the write-down is not subsequently restored. See Note 7 for further information concerning capitalized software development costs. | ||
Derivatives | ||
Our foreign currency exposures are primarily concentrated in the Argentinian Peso, Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, and Singapore Dollar. We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. We do not enter into financial instruments for speculation or trading purposes. | ||
The derivatives we enter into have not qualified for hedge accounting. The gains and losses on both the derivatives and the foreign currency-denominated balances are recorded as foreign exchange transaction gains or losses and are classified in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair value of derivative financial instruments represents the amount required to enter into similar offsetting contracts with similar remaining maturities based on quoted market prices. See Note 19 for further information concerning derivatives. | ||
Fair-Value Measurements | ||
We measure fair value using the framework established by the Financial Accounting Standards Board ("FASB") for fair value measurements and disclosures. This framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. | ||
The valuation techniques are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources. Unobservable inputs require management to make certain assumptions and judgments based on the best information available. Observable inputs are the preferred data source. These two types of inputs result in the following fair value hierarchy: | ||
Level 1: | Quoted prices (unadjusted) for identical instruments in active markets. | |
Level 2: | Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3: | Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. | |
Recent Accounting Pronouncements | ||
In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This standard requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-11 is not expected to have a material impact on our consolidated results of operations or financial position. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents were held in the following geographic regions: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
United States | $ | 30,082 | $ | 2,742 | ||||
Asia | 34,627 | 27,317 | ||||||
Europe | 7,161 | 9,361 | ||||||
South America | 4,304 | 5,173 | ||||||
Total cash and cash equivalents | $ | 76,174 | $ | 44,593 | ||||
Accounts_Receivable_Net_and_Re
Accounts Receivable, Net and Revenue Concentrations | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||
Accounts Receivable, Net and Revenue Concentrations | ' | ||||||||||||||||||||
Accounts Receivable, Net and Revenue Concentrations | |||||||||||||||||||||
Accounts receivable, net were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||
Trade receivables, gross | $ | 94,325 | $ | 90,056 | |||||||||||||||||
Allowance for doubtful accounts | (478 | ) | (322 | ) | |||||||||||||||||
Allowance for sales returns | (865 | ) | (996 | ) | |||||||||||||||||
Net trade receivables | 92,982 | 88,738 | |||||||||||||||||||
Other | 2,426 | 2,310 | |||||||||||||||||||
Accounts receivable, net | $ | 95,408 | $ | 91,048 | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||
Changes in the allowance for doubtful accounts were as follows: | |||||||||||||||||||||
(In thousands) | Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Balance at beginning of period | $ | 322 | $ | 1,021 | $ | 878 | |||||||||||||||
Additions to costs and expenses | 190 | 73 | 277 | ||||||||||||||||||
(Write-offs)/FX effects | (34 | ) | (772 | ) | (134 | ) | |||||||||||||||
Balance at end of period | $ | 478 | $ | 322 | $ | 1,021 | |||||||||||||||
Sales Returns | |||||||||||||||||||||
The allowance for sales returns at December 31, 2013 and 2012 included reserves for items returned prior to year-end that were not completely processed, and therefore had not yet been removed from the allowance for sales returns balance. If these returns had been fully processed, the allowance for sales returns balance would have been approximately $0.5 million and $0.6 million on December 31, 2013 and 2012, respectively. The value of these returned goods was included in our inventory balance at December 31, 2013 and 2012. | |||||||||||||||||||||
Significant Customers | |||||||||||||||||||||
Net sales to individual customers that totaled more than 10% of our net sales were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
$ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | ||||||||||||||||
DIRECTV | $ | 82,679 | 15.6 | % | $ | 78,325 | 16.9 | % | $ | 57,371 | 12.2 | % | |||||||||
Sony | — | — | — | — | 48,483 | 10.3 | |||||||||||||||
Trade receivables associated with significant customer activity that totaled more than 10% of our accounts receivable, net were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
$ (thousands) | % of Accounts | $ (thousands) | % of Accounts | ||||||||||||||||||
receivable, net | Receivable, net | ||||||||||||||||||||
DIRECTV | $ | — | — | % | $ | 9,277 | 10.2 | % | |||||||||||||
The loss of either of these customers or any other customer, either in the United States or abroad, due to their financial weakness or bankruptcy, or our inability to obtain orders or maintain our order volume with them, may have a material adverse effect on our financial condition, results of operations and cash flows. |
Inventories_Net_and_Significan
Inventories, Net and Significant Suppliers | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||||||||||
Inventories, Net and Significant Suppliers | ' | ||||||||||||||||||||
Inventories, Net and Significant Suppliers | |||||||||||||||||||||
Inventories, net were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||
Raw materials | $ | 18,990 | $ | 17,438 | |||||||||||||||||
Components | 18,623 | 20,978 | |||||||||||||||||||
Work in process | 2,017 | 1,050 | |||||||||||||||||||
Finished goods | 59,393 | 46,939 | |||||||||||||||||||
Reserve for excess and obsolete inventory | (2,714 | ) | (2,024 | ) | |||||||||||||||||
Inventories, net | $ | 96,309 | $ | 84,381 | |||||||||||||||||
Reserve for Excess and Obsolete Inventory | |||||||||||||||||||||
Changes in the reserve for excess and obsolete inventory were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||
Balance at beginning of period | $ | 2,024 | $ | 3,447 | $ | 2,135 | |||||||||||||||
Additions charged to costs and expenses (1) | 3,387 | 2,511 | 4,568 | ||||||||||||||||||
Sell through (2) | (365 | ) | (1,166 | ) | (1,295 | ) | |||||||||||||||
Write-offs/FX effects | (2,332 | ) | (2,768 | ) | (1,961 | ) | |||||||||||||||
Balance at end of period | $ | 2,714 | $ | 2,024 | $ | 3,447 | |||||||||||||||
(1) | The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.3 million, $0.5 million, and $1.0 million for the years ended December 31, 2013, 2012, and 2011, respectively. These amounts are production waste and are not included in management’s reserve for excess and obsolete inventory. | ||||||||||||||||||||
(2) | These amounts represent the reversal of reserves associated with inventory items that were sold during the period. Sell through is the result of differences between our judgment concerning the saleability of inventory items during the excess and obsolete inventory review process and our subsequent experience. | ||||||||||||||||||||
Significant Suppliers | |||||||||||||||||||||
We purchase integrated circuits, components and finished goods from multiple sources. In 2013 and 2012, no single supplier provided more than 10% of our total inventory purchases. Samsung provided $29.1 million, or 10.2% of total inventory purchases during the year ended December 31, 2011. | |||||||||||||||||||||
Related Party Vendor | |||||||||||||||||||||
We purchase certain printed circuit board assemblies from a related party vendor. The vendor is considered a related party for financial reporting purposes because our Senior Vice President of Manufacturing owns 40% of this vendor. Inventory purchases from this vendor were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | ||||||||||||||||
Related party vendor | $ | 9,846 | 3.5 | % | $ | 8,845 | 3.8 | % | $ | 8,677 | 3 | % | |||||||||
Total accounts payable to this vendor were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
$ (thousands) | % of Accounts Payable | $ (thousands) | % of Accounts Payable | ||||||||||||||||||
Related party vendor | $ | 2,439 | 4.2 | % | $ | 1,815 | 3 | % | |||||||||||||
Our payable terms and pricing with this vendor are consistent with the terms offered by other vendors in the ordinary course of business. The accounting policies that we apply to our transactions with our related party vendor are consistent with those applied in transactions with independent third parties. Corporate management routinely monitors purchases from our related party vendor to ensure these purchases remain consistent with our business objectives. |
Property_Plant_and_Equipment_N
Property, Plant, and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant, and Equipment, Net | ' | |||||||
Property, Plant, and Equipment, Net | ||||||||
Property, plant, and equipment, net were as follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Buildings | $ | 51,901 | $ | 44,607 | ||||
Machinery and equipment | 48,859 | 44,168 | ||||||
Tooling | 26,495 | 24,496 | ||||||
Leasehold improvements | 17,749 | 16,153 | ||||||
Software | 8,504 | 7,373 | ||||||
Furniture and Fixtures | 6,231 | 5,360 | ||||||
Computer Equipment | 2,691 | 2,630 | ||||||
162,430 | 144,787 | |||||||
Accumulated depreciation | (87,703 | ) | (74,766 | ) | ||||
74,727 | 70,021 | |||||||
Construction in progress | 843 | 7,685 | ||||||
Total property, plant, and equipment, net | $ | 75,570 | $ | 77,706 | ||||
Depreciation expense, including tooling depreciation which is recorded in cost of goods sold, was $14.2 million, $13.4 million and $13.1 million for the years ended December 31, 2013, 2012, and 2011, respectively. | ||||||||
The net book value of property, plant, and equipment located within the People's Republic of China ("PRC") was $68.2 million and $69.2 million on December 31, 2013 and 2012, respectively. | ||||||||
Construction in progress was as follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Buildings | $ | — | $ | 5,639 | ||||
Machinery and equipment | 158 | 594 | ||||||
Tooling | 134 | 395 | ||||||
Leasehold improvements | 104 | 285 | ||||||
Software | 372 | 742 | ||||||
Other | 75 | 30 | ||||||
Total construction in progress | $ | 843 | $ | 7,685 | ||||
We expect that the remaining construction in progress costs will be placed into service during the first quarter of 2014. We will begin to depreciate these assets once the assets are placed into service. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets, Net | ' | |||||||||||||||||||||||
Goodwill and Intangible Assets, Net | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Goodwill and changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 30,820 | ||||||||||||||||||||||
Goodwill adjustments (1) | 70 | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 30,890 | ||||||||||||||||||||||
Goodwill adjustments (1) | 110 | |||||||||||||||||||||||
Balance at December 31, 2013 | $ | 31,000 | ||||||||||||||||||||||
(1) | Adjustments were the result of fluctuations in the foreign currency exchange rate used to translate balances into U.S. Dollars. | |||||||||||||||||||||||
We conducted annual goodwill impairment reviews on December 31, 2013, 2012, and 2011 utilizing significant unobservable inputs (level 3). Based on the analysis performed, we determined that our goodwill was not impaired. | ||||||||||||||||||||||||
Intangible Assets, Net | ||||||||||||||||||||||||
The components of intangible assets, net were as follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(In thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Carrying amount(1): | ||||||||||||||||||||||||
Distribution rights (10 years) | $ | 395 | $ | (52 | ) | $ | 343 | $ | 378 | $ | (50 | ) | $ | 328 | ||||||||||
Patents (10 years) | 8,879 | (4,251 | ) | 4,628 | 8,113 | (3,847 | ) | 4,266 | ||||||||||||||||
Trademark and trade names | 2,841 | (1,411 | ) | 1,430 | 2,841 | (1,127 | ) | 1,714 | ||||||||||||||||
(10 years) | ||||||||||||||||||||||||
Developed and core technology (5-15 years) | 3,506 | (1,140 | ) | 2,366 | 3,507 | (906 | ) | 2,601 | ||||||||||||||||
Capitalized software development costs (1-2 years) | 311 | (133 | ) | 178 | 1,276 | (913 | ) | 363 | ||||||||||||||||
Customer relationships | 26,406 | (8,388 | ) | 18,018 | 26,415 | (5,852 | ) | 20,563 | ||||||||||||||||
(10-15 years) | ||||||||||||||||||||||||
Total carrying amount | $ | 42,338 | $ | (15,375 | ) | $ | 26,963 | $ | 42,530 | $ | (12,695 | ) | $ | 29,835 | ||||||||||
(1) | This table excludes the gross value of fully amortized intangible assets totaling $6.6 million and $9.1 million on December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs which is recorded in cost of sales. Amortization expense by income statement caption was as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Cost of sales | $ | 213 | $ | 312 | $ | 451 | ||||||||||||||||||
Selling, general and administrative | 3,914 | 3,862 | 3,795 | |||||||||||||||||||||
Total amortization expense | $ | 4,127 | $ | 4,174 | $ | 4,246 | ||||||||||||||||||
Estimated future amortization expense related to our intangible assets at December 31, 2013, is as follows: | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
2014 | $ | 4,088 | ||||||||||||||||||||||
2015 | 3,924 | |||||||||||||||||||||||
2016 | 3,886 | |||||||||||||||||||||||
2017 | 3,857 | |||||||||||||||||||||||
2018 | 3,847 | |||||||||||||||||||||||
Thereafter | 7,361 | |||||||||||||||||||||||
$ | 26,963 | |||||||||||||||||||||||
The remaining weighted average amortization period of our intangible assets is 7.1 years. | ||||||||||||||||||||||||
We recorded immaterial impairment charges related to our intangible assets for the years ended December 31, 2013, 2012, and 2011. Impairment charges are recorded in selling, general and administrative expenses as a component of amortization expense, except impairment charges related to capitalized software development costs which are recorded in cost of sales. Quoted prices for identical or similar patents, trademarks and trade names are unavailable. The fair value of intangible assets is based upon management's judgment. Management believes that the net book value represents the fair value of our patents, trademarks and trade names. |
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
Line of Credit | |
On October 2, 2012, we entered into an Amended and Restated Credit Agreement ("Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank"). Under the Amended Credit Agreement, the existing secured revolving credit line ("Credit Line") was increased from $20.0 million to $55.0 million and the expiration date was extended from November 1, 2012 to November 1, 2014. The Amended Credit Agreement required that the Credit Line be used to pay off the remaining outstanding balance of the existing term loan with U.S. Bank. The Credit Line may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. Amounts available for borrowing under the Credit Line are reduced by the balance of any outstanding letters of credit, of which there were $13 thousand at December 31, 2013. | |
All obligations under the Credit Line are secured by substantially all of our U.S. personal property and tangible and intangible assets as well as 65% of our ownership interest in Enson, our wholly-owned subsidiary which controls our manufacturing factories in the PRC. | |
Under the Amended Credit Agreement, we may elect to pay interest on the Credit Line based on LIBOR plus an applicable margin (varying from 1.25% to 1.75%) or base rate (based on the prime rate of U.S. Bank or as otherwise specified in the Amended Credit Agreement) plus an applicable margin (varying from -0.25% to +0.25%). The applicable margins are calculated quarterly and vary based on our leverage ratio as set forth in the Amended Credit Agreement. There are no commitment fees or unused line fees under the Amended Credit Agreement. | |
The Amended Credit Agreement includes financial covenants requiring a minimum fixed charge coverage ratio, a maximum leverage ratio and minimum liquidity levels. In addition, the Amended Credit Agreement also contains other customary affirmative and negative covenants and events of default. As of December 31, 2013, we were in compliance with the covenants and conditions of the Amended Credit Agreement. | |
Our total interest expense on borrowings was $23 thousand, $0.2 million and $0.4 million during the years ended December 31, 2013, 2012 and 2011, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Pre-tax income was attributed to the following jurisdictions: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Domestic operations | $ | 2,425 | $ | (2,203 | ) | $ | 3,279 | |||||
Foreign operations | 26,611 | 26,841 | 21,952 | |||||||||
Total | $ | 29,036 | $ | 24,638 | $ | 25,231 | ||||||
The provision for income taxes charged to operations were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Current tax expense: | ||||||||||||
U.S. federal | $ | 971 | $ | (891 | ) | $ | 1,319 | |||||
State and local | 254 | (75 | ) | 12 | ||||||||
Foreign | 6,426 | 6,464 | 5,122 | |||||||||
Total current | 7,651 | 5,498 | 6,453 | |||||||||
Deferred tax (benefit) expense: | ||||||||||||
U.S. federal | (101 | ) | (882 | ) | 153 | |||||||
State and local | (67 | ) | 3,630 | (409 | ) | |||||||
Foreign | (1,410 | ) | (161 | ) | (912 | ) | ||||||
Total deferred | (1,578 | ) | 2,587 | (1,168 | ) | |||||||
Total provision for income taxes | $ | 6,073 | $ | 8,085 | $ | 5,285 | ||||||
Net deferred tax assets were comprised of the following: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Inventory reserves | $ | 1,582 | $ | 1,017 | ||||||||
Capitalized research costs | 97 | 106 | ||||||||||
Capitalized inventory costs | 920 | 760 | ||||||||||
Net operating losses | 1,101 | 1,339 | ||||||||||
Acquired intangible assets | 49 | 10 | ||||||||||
Accrued liabilities | 4,215 | 3,785 | ||||||||||
Income tax credits | 5,982 | 4,321 | ||||||||||
Stock-based compensation | 2,260 | 3,525 | ||||||||||
Total deferred tax assets | 16,206 | 14,863 | ||||||||||
Deferred tax liability: | ||||||||||||
Depreciation | (4,679 | ) | (5,132 | ) | ||||||||
Allowance for doubtful accounts | (80 | ) | (41 | ) | ||||||||
Amortization of intangible assets | (2,583 | ) | (2,858 | ) | ||||||||
Other | (1,600 | ) | (1,922 | ) | ||||||||
Total deferred tax liabilities | (8,942 | ) | (9,953 | ) | ||||||||
Net deferred tax assets before valuation allowance | 7,264 | 4,910 | ||||||||||
Less: Valuation allowance | (4,832 | ) | (4,059 | ) | ||||||||
Net deferred tax assets | $ | 2,432 | $ | 851 | ||||||||
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Tax provision at statutory U.S. rate | $ | 9,872 | $ | 8,377 | $ | 8,578 | ||||||
Increase (decrease) in tax provision resulting from: | ||||||||||||
State and local taxes, net | (397 | ) | (246 | ) | (262 | ) | ||||||
Foreign tax rate differential | (3,804 | ) | (3,488 | ) | (3,528 | ) | ||||||
Nondeductible items | 989 | 388 | 407 | |||||||||
Federal research and development credits | (1,149 | ) | (369 | ) | (503 | ) | ||||||
Change in deductibility of social insurance | 214 | 617 | — | |||||||||
Valuation allowance | 520 | 2,592 | — | |||||||||
Other | (172 | ) | 214 | 593 | ||||||||
Tax provision | $ | 6,073 | $ | 8,085 | $ | 5,285 | ||||||
At December 31, 2013, we had federal and state Research and Experimentation ("R&E") income tax credit carry forwards of approximately $0.6 million and $6.2 million, respectively. The federal R&E credits begin to expire in 2032. The state R&E income tax credits do not have an expiration date. | ||||||||||||
At December 31, 2013, we had federal, state and foreign net operating losses of approximately $2.3 million, $4.1 million and $0.2 million, respectively. All of the federal and state net operating loss carry forwards were acquired as part of the 2004 acquisition of SimpleDevices. The federal, state, and foreign net operating loss carry forwards begin to expire during 2024, 2018, and 2022, respectively. | ||||||||||||
Internal Revenue Code Section 382 places certain limitations on the annual amount of net operating loss carry forwards that may be utilized if certain changes to a company’s ownership occur. Our acquisition of SimpleDevices was a change in ownership pursuant to Section 382 of the Internal Revenue Code, and the federal and state net operating loss carry forwards of SimpleDevices are limited but considered realizable in future periods. The annual federal limitation is approximately $0.6 million for 2013 and thereafter. | ||||||||||||
At December 31, 2013, we assessed the realizability of our deferred tax assets by considering whether it is “more likely than not” some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. We considered taxable income in carry-back years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of the Company’s deferred tax assets, primarily including state R&E income tax credits generated during the prior years and current year, the Company established a valuation allowance against its deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. Accordingly, a valuation allowance of $4.7 million was recorded as of December 31, 2013 related to the state R&E deferred tax asset. | ||||||||||||
During the year ended December 31, 2013, we recognized an increase to paid-in capital and a decrease to income taxes payable of $0.9 million related to the tax benefit from the exercise of non-qualified stock options and vesting of restricted stock under our stock-based incentive plans. During the year ended December 31, 2012 we recognized a decrease to paid-in capital and an increase to income taxes payable of $0.1 million, related to the tax benefit from the exercise of non-qualified stock options and vesting of restricted stock under our stock-based incentive plans. During the year ended December 31, 2011 we recognized an increase to paid-in capital and a decrease to income taxes payable of $0.3 million, related to the tax benefit from the exercise of non-qualified stock options and vesting of restricted stock under our stock-based incentive plans. | ||||||||||||
The undistributed earnings of our foreign subsidiaries are considered to be indefinitely reinvested. Accordingly, no provision for U.S. federal and state income taxes or foreign withholding taxes has been provided on such undistributed earnings. Determination of the potential amount of unrecognized deferred U.S. income tax liability and foreign withholding taxes is not practicable because of the complexities associated with its hypothetical calculation; however, unrecognized foreign tax credits would be available to reduce some portion of the U.S. liability. | ||||||||||||
During 2012, China's State Administration of Taxation issued Circular 15 which required us to reevaluate our foreign deferred tax assets relating to our Chinese subsidiaries. These subsidiaries have recorded a deferred tax asset for social insurance and housing funds with the intent of being able to deduct these expenses once such liabilities have been settled. Circular 15 stipulates that payments into the aforementioned funds must be made within five years of recording the initial accrual or the tax deduction for these expenses will be forfeited. At December 31, 2013, we evaluated fund payments made prior to the preceding five years and determined that $0.2 million of our foreign deferred tax assets would not provide a future tax benefit due to the change in Chinese law. In adhering to the new law, we recorded increases to income tax expense of $0.2 million and $0.6 million for the years ended December 31, 2013 and 2012, respectively, relating to decreases in the deferred tax assets of our Chinese subsidiaries. | ||||||||||||
Uncertain Tax Positions | ||||||||||||
At December 31, 2013 and 2012, we had unrecognized tax benefits of approximately $3.6 million and $5.1 million, including interest and penalties, respectively. In accordance with accounting guidance, we have elected to classify interest and penalties as components of tax expense. Interest and penalties were $0.1 million, $0.1 million, and $0.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. Interest and penalties are included in the unrecognized tax benefits. | ||||||||||||
Our gross unrecognized tax benefits at December 31, 2013, 2012 and 2011, and the changes during those years then ended, were the following: | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 5,006 | $ | 5,387 | $ | 5,411 | ||||||
Additions as a result of tax provisions taken during the current year | 357 | 261 | 138 | |||||||||
Subtractions as a result of tax provisions taken during the prior year | (126 | ) | (346 | ) | (67 | ) | ||||||
Foreign currency translation | 45 | — | 133 | |||||||||
Lapse in statute of limitations | (63 | ) | (296 | ) | (224 | ) | ||||||
Settlements | (1,729 | ) | — | (15 | ) | |||||||
Acquisition | — | — | 11 | |||||||||
Ending balance | $ | 3,490 | $ | 5,006 | $ | 5,387 | ||||||
Approximately $3.2 million and $4.7 million of the total amount of gross unrecognized tax benefits at December 31, 2013 and 2012, respectively, would affect the annual effective tax rate, if recognized. Current year reductions to the unrecognized tax benefit relate to liabilities recorded by our Chinese subsidiaries. Furthermore, we are unaware of any positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change within the next twelve months. We anticipate a decrease in gross unrecognized tax benefits of approximately $0.2 million within the next twelve months based on federal, state, and foreign statute expirations in various jurisdictions. | ||||||||||||
We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. At December 31, 2013 the open statutes of limitations for our significant tax jurisdictions are the following: federal are 2010 through 2012, state are 2009 through 2012 and non-U.S. are 2007 through 2012. At December 31, 2013, of our gross unrecognized tax benefits of $3.6 million, which included $0.1 million of interest, $1.5 million are classified as current and $2.1 million are classified as long term. |
Accrued_Compensation
Accrued Compensation | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Compensation | ' | |||||||
Accrued Compensation | ||||||||
The components of accrued compensation are listed below: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Accrued social insurance(1) | $ | 20,492 | $ | 19,842 | ||||
Accrued salary/wages | 5,324 | 4,862 | ||||||
Accrued vacation/holiday | 2,113 | 2,048 | ||||||
Accrued bonus(2) | 7,186 | 4,181 | ||||||
Accrued commission | 1,350 | 478 | ||||||
Accrued medical insurance claims | 201 | 643 | ||||||
Other accrued compensation | 1,651 | 1,344 | ||||||
Total accrued compensation | $ | 38,317 | $ | 33,398 | ||||
(1) | Effective January 1, 2008, the Chinese Labor Contract Law was enacted in the PRC. This law mandated that PRC employers remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on December 31, 2013 and 2012. | |||||||
(2) | Accrued bonus includes an accrual for an extra month of salary ("13th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13th month salary was $0.6 million and $0.5 million at December 31, 2013 and 2012, respectively. |
Other_Accrued_Expenses
Other Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Other Accrued Expenses | ' | |||||||
Other Accrued Expenses | ||||||||
The components of other accrued expenses are listed below: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Advertising and marketing | $ | 238 | $ | 501 | ||||
Duties | 797 | 584 | ||||||
Freight | 1,374 | 1,666 | ||||||
Product development | 614 | 569 | ||||||
Product warranty claim costs | 41 | 404 | ||||||
Professional fees | 1,757 | 1,234 | ||||||
Sales taxes and VAT | 1,637 | 1,979 | ||||||
Third-party commissions | 511 | 337 | ||||||
Tooling (1) | 758 | 221 | ||||||
Utilities | 311 | 316 | ||||||
Other | 3,191 | 2,833 | ||||||
Total other accrued expenses | $ | 11,229 | $ | 10,644 | ||||
(1) | The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. |
Leases
Leases | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Leases | ' | |||
Leases | ||||
We lease land, office and warehouse space, and certain office equipment under operating leases that expire at various dates through November 30, 2060. | ||||
Rent expense for our operating leases was $3.5 million, $3.7 million and $3.2 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
The following table summarizes future minimum non-cancelable operating lease payments at December 31, 2013: | ||||
(In thousands) | Amount | |||
Year ending December 31: | ||||
2014 | $ | 2,699 | ||
2015 | 2,117 | |||
2016 | 1,803 | |||
2017 | 1,415 | |||
2018 | 1,248 | |||
Thereafter | 3,423 | |||
Total operating lease commitments | $ | 12,705 | ||
Non-level Rents and Lease Incentives | ||||
Some of our leases are subject to rent escalations. For these leases, we recognize rent expense for the total contractual obligation utilizing the straight-line method over the lease term, ranging from 60 months to 125 months. The related short term liability is recorded in other accrued expenses (see Note 11) and the related long term liability is recorded in other long term liabilities. The total liability related to rent escalations was $1.0 million and $0.5 million at December 31, 2013 and 2012, respectively. | ||||
The lease agreement for our corporate headquarters contains an allowance for moving expenses and tenant improvements of $1.5 million. These moving and tenant improvement allowances are recorded within other accrued expenses and other long term liabilities, depending on the short term or long term nature, and are being amortized as a reduction of rent expense over the 125-month term of the lease, which began on May 15, 2012. | ||||
Rental Costs During Construction | ||||
Rental costs associated with operating leases incurred during a construction period are expensed. | ||||
Prepaid Leases | ||||
We operate two factories within the PRC on which the land is leased from the government as of December 31, 2013. These land leases were prepaid to the PRC government at the time our subsidiary occupied the land. We have obtained land-use right certificates for the land pertaining to these factories. | ||||
The first factory is located in the city of Guangzhou in the Guangdong province. The remaining net book value of this prepaid lease was $1.5 million on December 31, 2013, and will be amortized on a straight-line basis over approximately 21 years. The buildings located on this land have a net book value of $13.7 million on December 31, 2013 and are being amortized over an estimated remaining life of approximately 18 years. | ||||
The second factory is located in the city of Yangzhou in the Jiangsu province. The remaining net book value of this prepaid lease was $2.9 million on December 31, 2013, and will be amortized on a straight-line basis over the remaining term of approximately 45 years. The buildings located on this land have a net book value of $24.8 million on December 31, 2013 and are being amortized over an estimated remaining life of 24 years. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Commitments and Contingencies | ' | |||||||||||
Commitments and Contingencies | ||||||||||||
Indemnifications | ||||||||||||
We indemnify our directors and officers to the maximum extent permitted under the laws of the State of Delaware and we have entered into Indemnification Agreements with each of our directors and executive officers. In addition, we insure our individual directors and officers against certain claims and attorney’s fees and related expenses incurred in connection with the defense of such claims. The amounts and types of coverage may vary from period to period as dictated by market conditions. Management is not aware of any matters that require indemnification of its officers or directors. | ||||||||||||
Fair Price Provisions and Other Anti-Takeover Measures | ||||||||||||
Our Restated Certificate of Incorporation, as amended, contains certain provisions restricting business combinations with interested stockholders under certain circumstances and imposing higher voting requirements for the approval of certain transactions ("fair price" provisions). Any of these provisions may delay or prevent a change in control. | ||||||||||||
The "fair price" provisions require that holders of at least two-thirds of our outstanding shares of voting stock approve certain business combinations and significant transactions with interested stockholders. | ||||||||||||
Product Warranties | ||||||||||||
Changes in the liability for product warranty claim costs were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of period | $ | 404 | $ | 6 | $ | 71 | ||||||
Accruals for warranties issued during the period | 416 | 398 | (27 | ) | ||||||||
Settlements (in cash or in kind) during the period | (779 | ) | — | (38 | ) | |||||||
Balance at end of period | $ | 41 | $ | 404 | $ | 6 | ||||||
Litigation | ||||||||||||
On July 15, 2011, we filed a lawsuit against Logitech, Inc., Logitech International S.A. and Logitech Europe S.A. in the United States District Court, Central District of California (Universal Electronics Inc. v. Logitech, Inc., Logitech International S.A. and Logitech Europe S.A., SACV 11-1056-JVS(ANx)) alleging that the Logitech companies were infringing seventeen of our patents related to remote control technology. We alleged that this complaint related to multiple Logitech remote control products and were seeking monetary relief for the infringement, including enhanced damages due to the willfulness of the Logitech companies' actions, injunctive relief to enjoin the Logitech companies from further infringing, including contributory infringement and/or inducing infringement, and attorney's fees. In its answer, filed on November 3, 2011, the Logitech companies generally denied all of our allegations of infringement and counterclaimed that we were infringing five of their patents. On November 24, 2011, we answered the Logitech companies' counterclaims, generally denying all of their allegations of infringement. On September 26, 2012, the Logitech companies and the Company entered into a long-term, confidential Settlement and License Agreement with an effective date of July 1, 2012 (the “Agreement”). During the term of the Agreement, the Logitech companies and the Company dismissed all lawsuits and, among other things, the Logitech companies will pay royalties to the Company to license the technologies covered by our patents in this suit. Additionally, the Logitech companies agreed to pay the Company $2.0 million for past royalties for the period covering July 1, 2010 through June 30, 2012. Due to the historical and ongoing relationship with the Logitech companies, this amount was included in net sales for the year ended December 31, 2012. | ||||||||||||
On March 2, 2012, we filed a lawsuit against Universal Remote Control, Inc. ("URC") in the United States District Court, Central District of California (Universal Electronics Inc. v. Universal Remote Control, Inc., SACV12-0039 AG (JPRx)) alleging that URC is infringing, directly and indirectly, four of our patents related to remote control technology. We have alleged that this complaint relates to multiple URC remote control products, including the URC model numbers UR5U-9000L, WR7 and other remote controls with different model names or numbers, but with substantially the same designs, features, and functionalities. We are seeking monetary relief for the infringement, including enhanced damages due to the willfulness of URC's actions, injunctive relief to enjoin URC from further infringing, including contributory infringement and/or inducing infringement, and attorney's fees. URC has denied infringing our patents. On January 29, 2013, the Court held its "Markman" hearing and on February 1, 2013, the Court issued its ruling that four of the 24 claims we have asserted against URC were invalid, effectively removing one of the four patents alleged by us to be infringed by URC from this litigation. In our estimation this ruling does not materially affect our position in this litigation. In all other respects, this litigation is continuing as scheduled with expert discovery and pre-trial motions continuing and trial is scheduled for May 2014. | ||||||||||||
In addition, on June 28, 2013, we filed a second lawsuit against URC, also in the United States District Court, Central District of California (Universal Electronics Inc. v. Universal Remote Control, Inc., SACV13-00987 JAK (SHx)). In this second lawsuit, we are alleging that URC is infringing, directly and indirectly, nine additional patents that we own related to remote control technology. As in the first lawsuit, in this second lawsuit we have alleged that this complaint relates to multiple URC remote control products. | ||||||||||||
We are seeking monetary relief for infringement, including enhanced damages due to the willfulness of URC's actions, injunctive relief to enjoin URC from further infringing, including contributory infringement and/or inducing infringement, and attorney's fees. In mid-July 2013, URC filed a Notice of Related Cases seeking to join this lawsuit with the lawsuit we filed against URC on March 2, 2012 and we did not object to this Notice. Consequently, this lawsuit was transferred to the Judge and Magistrate hearing our first lawsuit filed in March 2013. In mid-November 2013, UEI filed a motion to add affiliated URC suppliers, Ohsung Electronics Co, Ltd (a South Korean entity) and Ohsung Electronics USA, Inc. (a California entity) to the lawsuit. We are waiting for these additional parties to answer the motion, and will continue efforts to join both parties to the lawsuit. In all other respects this litigation is continuing as scheduled with URC answering this compliant with a denial of infringement, asserting affirmative defenses, and seeking a ruling that URC has not infringed our patents, that our patents are invalid and unenforceable, that the patents have been licensed to URC, and an award of attorneys’ fees and costs. Discovery is underway. | ||||||||||||
On September 23, 2013, we filed a lawsuit against Peel Technologies, Inc. (“Peel”) in the United States District Court, Central District of California (Universal Electronics Inc. v. Peel Technologies, Inc., SACV13-01484 GAF (RNBx)) alleging that Peel is infringing, directly and indirectly, five of our patents related to remote control technology. We have alleged that this complaint relates to software and hardware used in connection with remote control devices, including Peel’s software products called “TV App” (sometimes referred to as “Sense TV”), “WatchOn App” and “Peel Smart Remote App”, and a product called “Peel Universal Remote” consisting of a Peel “Fruit” hardware device and a software component for use with the iOS operating system. We are seeking monetary relief for the infringement, including enhanced damages due to the willfulness of Peel’s actions, injunctive relief to enjoin Peel from further infringing, including contributory infringement and/or inducing infringement, and attorney’s fees. On November 14, 2013, Peel answered our complaint with a general denial that it is infringing our patents and has filed counter-claims, seeking declaratory judgments that our patents are not infringed and are invalid. They are also seeking attorney’s fees. In our reply to Peel’s counterclaims, which we filed on December 5, 2013, we have asked the Court to deny and dismiss with prejudice Peel’s counterclaims and sought after relief. Discovery has just begun. | ||||||||||||
There are no other material pending legal proceedings to which we or any of our subsidiaries is a party or of which our respective property is the subject. However, as is typical in our industry and to the nature and kind of business in which we are engaged, from time to time, various claims, charges and litigation are asserted or commenced by third parties against us or by us against third parties arising from or related to product liability, infringement of patent or other intellectual property rights, breach of warranty, contractual relations, or employee relations. The amounts claimed may be substantial but may not bear any reasonable relationship to the merits of the claims or the extent of any real risk of court awards assessed against us or in our favor. However, no assurances can be made as to the outcome of any of these matters, nor can we estimate the range of potential losses to us. In our opinion, final judgments, if any, which might be rendered against us in potential or pending litigation would not have a material adverse effect on our financial condition, results of operations, or cash flows. Moreover, we believe that our products do not infringe any third parties' patents or other intellectual property rights. | ||||||||||||
We maintain directors' and officers' liability insurance which insures our individual directors and officers against certain claims, as well as attorney's fees and related expenses incurred in connection with the defense of such claims. | ||||||||||||
Defined Benefit Plan | ||||||||||||
Our subsidiary in India maintains a defined benefit pension plan ("India Plan") for local employees, which is consistent with local statutes and practices. The pension plan was adequately funded on December 31, 2013 based on its latest actuarial report. The India Plan has an independent external manager that advises us of the appropriate funding contribution requirements to which we comply. At December 31, 2013, approximately 35 percent of our India subsidiary employees had qualified for eligibility. An individual must be employed by our India subsidiary for a minimum of 5 years before becoming eligible. Upon the termination, resignation or retirement of an eligible employee, we are liable to pay the employee an amount equal to 15 days salary for each full year of service completed. The total amount of liability outstanding at December 31, 2013 and 2012 for the India Plan is not material. During the years ended December 31, 2013, 2012, and 2011, the net periodic benefit costs were also not material. |
Treasury_Stock
Treasury Stock | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Treasury Stock | ' | |||||||||||
Treasury Stock | ||||||||||||
Repurchased shares of our common stock were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Shares repurchased | 153 | 201 | 457 | |||||||||
Cost of shares repurchased | $ | 3,607 | $ | 3,451 | $ | 9,785 | ||||||
Repurchased shares are recorded as shares held in treasury at cost. We hold these shares for future use as management and the Board of Directors deem appropriate, which has included compensating our outside directors. During the years ended December 31, 2013, 2012, and 2011, we issued 30,000, 37,500, and 30,000 shares from treasury, respectively, to outside directors for services performed (see Note 16). | ||||||||||||
From time to time, our Board of Directors authorizes management to repurchase shares of our issued and outstanding common stock. Repurchases may be made to manage dilution created by shares issued under our stock incentive plans or whenever we deem a repurchase is a good use of our cash and the price to be paid is at or below a threshold approved by our Board. As of December 31, 2013, we had 933,456 shares available for repurchase under the Board's authorizations. |
Business_Segment_and_Foreign_O
Business Segment and Foreign Operations | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Business Segment and Foreign Operations | ' | |||||||||||
Business Segment and Foreign Operations | ||||||||||||
Reportable Segment | ||||||||||||
An operating segment, in part, is a component of an enterprise whose operating results are regularly reviewed by the chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance. Operating segments may be aggregated only to a limited extent. Our chief operating decision maker, the Chief Executive Officer, reviews financial information presented on a consolidated basis, accompanied by disaggregated information about revenues for purposes of making operating decisions and assessing financial performance. Accordingly, we only have a single operating and reportable segment. | ||||||||||||
Foreign Operations | ||||||||||||
Our net sales to external customers by geographic area were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Net sales: | ||||||||||||
United States | $ | 195,308 | $ | 165,209 | $ | 137,799 | ||||||
Asia (excluding PRC) | 107,886 | 108,979 | 121,089 | |||||||||
People’s Republic of China | 89,918 | 76,873 | 106,597 | |||||||||
Europe | 72,852 | 61,617 | 56,448 | |||||||||
Latin America | 35,179 | 28,677 | 17,585 | |||||||||
Other | 28,211 | 21,735 | 29,112 | |||||||||
Total net sales | $ | 529,354 | $ | 463,090 | $ | 468,630 | ||||||
Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. | ||||||||||||
Long-lived tangible assets were as follows: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Long-lived tangible assets: | ||||||||||||
United States | $ | 4,662 | $ | 5,541 | ||||||||
People's Republic of China | 72,957 | 73,804 | ||||||||||
All other countries | 3,230 | 3,722 | ||||||||||
Total | $ | 80,849 | $ | 83,067 | ||||||||
StockBased_Compensation_StockB
Stock-Based Compensation Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
Stock-Based Compensation | ' | ||||||||||||||||||||||||||||
Stock-Based Compensation | |||||||||||||||||||||||||||||
Stock-based compensation expense for each employee and director is presented in the same income statement caption as their cash compensation. Stock-based compensation expense by income statement caption and the related income tax benefit were as follows: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Cost of sales | $ | 1 | $ | — | $ | 15 | |||||||||||||||||||||||
Research and development | 226 | 223 | 267 | ||||||||||||||||||||||||||
Selling, general and administrative: | |||||||||||||||||||||||||||||
Employees | 4,494 | 3,733 | 3,499 | ||||||||||||||||||||||||||
Outside directors | 621 | 619 | 730 | ||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 5,342 | $ | 4,575 | $ | 4,511 | |||||||||||||||||||||||
Income tax benefit | $ | 1,575 | $ | 1,488 | $ | 1,505 | |||||||||||||||||||||||
Stock Options | |||||||||||||||||||||||||||||
The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Weighted average fair value of grants (1) | $ | 9.26 | $ | 9.57 | $ | 13.74 | |||||||||||||||||||||||
Risk-free interest rate | 0.95 | % | 0.86 | % | 2.29 | % | |||||||||||||||||||||||
Expected volatility | 53.39 | % | 55.22 | % | 52.25 | % | |||||||||||||||||||||||
Expected life in years | 5.2 | 5.15 | 5.03 | ||||||||||||||||||||||||||
(1) | The weighted average fair value of grants was calculated utilizing the stock options granted during each respective period. | ||||||||||||||||||||||||||||
Stock option activity was as follows: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms | Aggregate Intrinsic Value | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms | Number of Options | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms | Aggregate Intrinsic Value | ||||||||||||||||||
(in 000's) | (in years) | (in 000's) | (in 000's) | (in years) | (in 000's) | (in 000's) | (in years) | (in 000's) | |||||||||||||||||||||
Outstanding at beginning of the year | 1,412 | $ | 20.56 | 1,502 | $ | 19.53 | 1,502 | 1,525 | $ | 18.78 | |||||||||||||||||||
Granted | 201 | 19.68 | 153 | 19.92 | 153 | 108 | 28.97 | ||||||||||||||||||||||
Exercised | (679 | ) | 18.22 | $ | 8,355 | (189 | ) | 11.62 | 1,155 | (102 | ) | 16.51 | $ | 820 | |||||||||||||||
Forfeited/canceled/expired | (10 | ) | 24.75 | (54 | ) | 21.48 | (54 | ) | (29 | ) | 25.53 | ||||||||||||||||||
Outstanding at end of the year (1) | 924 | $ | 22.04 | 6.09 | $ | 14,854 | 1,412 | $ | 20.56 | 4.91 | 2,452 | 1,502 | $ | 19.53 | 4.81 | $ | 1,972 | ||||||||||||
Vested and expected to vest at the end of the year (1) | 921 | $ | 22.05 | 6.08 | $ | 14,791 | 1,409 | $ | 20.56 | 4.9 | 2,446 | 1,494 | $ | 19.51 | 4.78 | $ | 1,971 | ||||||||||||
Exercisable at the end of the year (1) | 671 | $ | 22.62 | 5.14 | $ | 10,388 | 1,181 | $ | 20.24 | 4.25 | 2,347 | 1,229 | $ | 18.71 | 4.05 | $ | 1,889 | ||||||||||||
(1) | The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2013, 2012, and 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on December 31, 2013, 2012, and 2011. This amount will change based on the fair market value of our stock. | ||||||||||||||||||||||||||||
During 2013, 2012, and 2011, there were no modifications made to outstanding stock options. | |||||||||||||||||||||||||||||
Cash received from option exercises for the years ended December 31, 2013, 2012, and 2011 was $12.4 million, $2.2 million, and $1.7 million, respectively. The actual tax benefit realized from option exercises was $2.3 million, $0.2 million and $0.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||||
Significant option groups outstanding at December 31, 2013 and the related weighted average exercise price and life information are listed below: | |||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted-Average | Weighted-Average | Number | Weighted-Average | ||||||||||||||||||||||||
Outstanding | Remaining Years of | Exercise Price | Exercisable | Exercise Price | |||||||||||||||||||||||||
(in 000’s) | Contractual Life | (in 000’s) | |||||||||||||||||||||||||||
$12.58 to $14.92 | 20 | 4.22 | $ | 13.66 | 16 | $ | 13.36 | ||||||||||||||||||||||
16.20 to 17.62 | 125 | 3.34 | 16.83 | 125 | 16.83 | ||||||||||||||||||||||||
18.04 to 21.95 | 460 | 7.47 | 20.05 | 249 | 20.43 | ||||||||||||||||||||||||
23.15 to 29.25 | 312 | 5.32 | 27.32 | 274 | 27.51 | ||||||||||||||||||||||||
32.40 to 35.35 | 7 | 3.94 | 34.51 | 7 | 34.51 | ||||||||||||||||||||||||
924 | 6.09 | $ | 22.04 | 671 | $ | 22.62 | |||||||||||||||||||||||
As of December 31, 2013, we expect to recognize $2.1 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.8 years. | |||||||||||||||||||||||||||||
On February 12, 2014, the Board of Directors granted certain executive employees 133,430 stock options in connection with the 2013 annual review cycle. The options were granted as part of long-term incentive compensation to assist us in meeting our performance and retention objectives and are subject to a three-year vesting period (33.33% on February 12, 2015 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $1.8 million. | |||||||||||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||||||||||
Non-vested restricted stock award activity was as follows: | |||||||||||||||||||||||||||||
Shares | Weighted- | ||||||||||||||||||||||||||||
Granted | Average | ||||||||||||||||||||||||||||
(in 000’s) | Grant Date | ||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
Non-vested at December 31, 2010 | 195 | $ | 17.3 | ||||||||||||||||||||||||||
Granted | 176 | 25.76 | |||||||||||||||||||||||||||
Vested | (162 | ) | 17.53 | ||||||||||||||||||||||||||
Forfeited | (4 | ) | 16.24 | ||||||||||||||||||||||||||
Non-vested at December 31, 2011 | 205 | 24.43 | |||||||||||||||||||||||||||
Granted | 205 | 15.22 | |||||||||||||||||||||||||||
Vested | (133 | ) | 21.91 | ||||||||||||||||||||||||||
Forfeited | (7 | ) | 23.11 | ||||||||||||||||||||||||||
Non-vested at December 31, 2012 | 270 | 18.72 | |||||||||||||||||||||||||||
Granted | 196 | 28.86 | |||||||||||||||||||||||||||
Vested | (178 | ) | 20.44 | ||||||||||||||||||||||||||
Forfeited | (3 | ) | 15.49 | ||||||||||||||||||||||||||
Non-vested at December 31, 2013 | 285 | $ | 24.64 | ||||||||||||||||||||||||||
As of December 31, 2013, we expect to recognize $6.3 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 2.2 years. | |||||||||||||||||||||||||||||
On February 12, 2014, the Board of Directors granted certain executive employees 51,595 restricted stock awards in connection with the 2013 annual review cycle. The awards were granted as part of long-term incentive compensation to assist us in meeting our performance and retention objectives and are subject to a three-year vesting period (33.33% on February 12, 2015 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $1.8 million. | |||||||||||||||||||||||||||||
Stock Incentive Plans | |||||||||||||||||||||||||||||
Our active stock-based incentive plans include those adopted in 1998, 1999A, 2002, 2003, 2006, and 2010 ("Stock Incentive Plans"). Under the Stock Incentive Plans, we may grant stock options, stock appreciation rights, restricted stock units, performance stock units, or any combination thereof for a period of ten years from the approval date of each respective plan, unless the plan is terminated by resolution of our Board of Directors. No stock appreciation rights or performance stock units have been awarded under our Stock Incentive Plans. Only directors and employees meeting certain employment qualifications are eligible to receive stock-based awards. | |||||||||||||||||||||||||||||
The grant price of stock option and restricted stock awards granted under our Stock Incentive Plans is the average of the high and low trades of our stock on the grant date. We prohibit the re-pricing or backdating of stock options. Our stock options become exercisable in various proportions over a three or four year time frame. Stock options have a maximum ten-year term. Restricted stock awards vest in various proportions over a three or four year time period. | |||||||||||||||||||||||||||||
Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2013: | |||||||||||||||||||||||||||||
Name | Approval Date | Initial Shares | Remaining Shares | Outstanding Shares | |||||||||||||||||||||||||
Available for Grant | Available for Grant | Granted Under the | |||||||||||||||||||||||||||
Under the Plan | Under the Plan | Plan | |||||||||||||||||||||||||||
1998 Stock Incentive Plan | 5/27/98 | 630,000 | — | 5,000 | |||||||||||||||||||||||||
1999A Stock Incentive Plan | 10/7/99 | 1,000,000 | — | 28,750 | |||||||||||||||||||||||||
2002 Stock Incentive Plan | 2/5/02 | 1,000,000 | — | 28,730 | |||||||||||||||||||||||||
2003 Stock Incentive Plan | 6/18/03 | 1,000,000 | — | 180,963 | |||||||||||||||||||||||||
2006 Stock Incentive Plan | 6/13/06 | 1,000,000 | 3,670 | 356,606 | |||||||||||||||||||||||||
2010 Stock Incentive Plan | 6/15/10 | 1,000,000 | 215,969 | 594,536 | |||||||||||||||||||||||||
219,639 | 1,194,585 | ||||||||||||||||||||||||||||
Other_Income_Expense_Net
Other Income (Expense), Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Income (Expense), Net | ' | |||||||||||
Other Income (Expense), Net | ||||||||||||
Other income (expense), net consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Net gain (loss) on foreign currency exchange contracts(1) | $ | 888 | $ | 35 | $ | (271 | ) | |||||
Net gain (loss) on foreign currency exchange transactions | (4,155 | ) | (1,721 | ) | (1,141 | ) | ||||||
Other income | 98 | 273 | 337 | |||||||||
Other income (expense), net | $ | (3,169 | ) | $ | (1,413 | ) | $ | (1,075 | ) | |||
(1) | This represents the gains and (losses) incurred on foreign currency hedging derivatives (see Note 19 for further details). |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings Per Share | ' | |||||||||||
Earnings Per Share | ||||||||||||
Earnings per share was calculated as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per-share amounts) | 2013 | 2012 | 2011 | |||||||||
BASIC | ||||||||||||
Net income | $ | 22,963 | $ | 16,553 | $ | 19,946 | ||||||
Weighted-average common shares outstanding | 15,248 | 14,952 | 14,912 | |||||||||
Basic earnings per share | $ | 1.51 | $ | 1.11 | $ | 1.34 | ||||||
DILUTED | ||||||||||||
Net income | $ | 22,963 | $ | 16,553 | $ | 19,946 | ||||||
Weighted-average common shares outstanding for basic | 15,248 | 14,952 | 14,912 | |||||||||
Dilutive effect of stock options and restricted stock | 353 | 158 | 301 | |||||||||
Weighted-average common shares outstanding on a diluted basis | 15,601 | 15,110 | 15,213 | |||||||||
Diluted earnings per share | $ | 1.47 | $ | 1.1 | $ | 1.31 | ||||||
The number of stock options and shares of restricted stock excluded from the computation of diluted earnings per common share were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Stock options | 366 | 1,038 | 593 | |||||||||
Restricted stock shares | 18 | 166 | 120 | |||||||||
Derivatives
Derivatives | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Derivatives | ' | ||||||||||||||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||
Derivatives Measured at Fair Value on a Recurring Basis | |||||||||||||||||||||||||||||||||
We are exposed to market risks from foreign currency exchange rates, which may adversely affect our operating results and financial position. Our foreign currency exposures are primarily concentrated in the Argentinian Peso, Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, and Singapore Dollar. We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes. We do not use leveraged derivative financial instruments and these derivatives have not qualified for hedge accounting. | |||||||||||||||||||||||||||||||||
The gains and losses on the derivatives are recorded in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair values of our derivative financial instruments represent the amount required to enter into offsetting contracts with similar remaining maturities based on quoted market prices. We have determined that the fair value of our derivatives are derived from level 2 inputs in the fair value hierarchy. The following table sets forth the fair value of derivatives: | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Fair Value Measurement Using | Total | Fair Value Measurement Using | Total | ||||||||||||||||||||||||||||||
(In thousands) | (Level 1) | (Level 2) | (Level 3) | Balance | (Level 1) | (Level 2) | (Level 3) | Balance | |||||||||||||||||||||||||
Foreign currency exchange futures contracts | $ | — | $ | 509 | $ | — | $ | 509 | $ | — | $ | (13 | ) | $ | — | $ | (13 | ) | |||||||||||||||
We held foreign currency exchange contracts which resulted in a net pre-tax gain of approximately $0.9 million, a net pre-tax gain of approximately $35 thousand, and a net pre-tax loss of $0.3 million for the years ended December 31, 2013, 2012, and 2011, respectively. | |||||||||||||||||||||||||||||||||
Futures Contracts | |||||||||||||||||||||||||||||||||
Details of futures contracts held were as follows: | |||||||||||||||||||||||||||||||||
Date Held | Type | Position Held | Notional Value | Forward Rate | Gain/(Loss) Recorded at Balance Sheet | Settlement Date | |||||||||||||||||||||||||||
(in millions) | Date | ||||||||||||||||||||||||||||||||
(in thousands)(1) | |||||||||||||||||||||||||||||||||
December 31, 2013 | USD/Euro | Euro | $ | 11 | 1.3782 | $ | (2 | ) | January 31, 2014 | ||||||||||||||||||||||||
December 31, 2013 | USD/Chinese Yuan Renminbi | Chinese Yuan Renminbi | $ | 15 | 6.2047 | $ | 358 | January 15, 2014 | |||||||||||||||||||||||||
December 31, 2013 | USD/Brazilian Real | USD | $ | 3 | 2.3442 | $ | 34 | January 17, 2014 | |||||||||||||||||||||||||
December 31, 2013 | USD/Brazilian Real | USD | $ | 2 | 2.2301 | $ | 119 | January 17, 2014 | |||||||||||||||||||||||||
December 31, 2012 | USD/Euro | Euro | $ | 5 | 1.3228 | $ | (13 | ) | January 18, 2013 | ||||||||||||||||||||||||
(1) | Gains on futures contracts are recorded in prepaid expenses and other current assets. Losses on futures contracts are recorded in other accrued expenses. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plans | ' |
Employee Benefit Plans | |
We maintain a retirement and profit sharing plan under Section 401(k) of the Internal Revenue Code for all of our domestic employees that meet certain qualifications. Participants in the plan may elect to contribute up to the maximum allowed by law. We match 50% of the participants’ contributions up to 15% of their gross salary in the form of newly issued shares of our common stock. We may also make other discretionary contributions to the plan. We recorded $0.7 million, $0.6 million and $0.7 million of expense for company contributions for the years ended December 31, 2013, 2012, and 2011, respectively. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ' | |||||||||||||||
Quarterly Financial Data (Unaudited) | ||||||||||||||||
Summarized quarterly financial data is presented below: | ||||||||||||||||
2013 | ||||||||||||||||
(In thousands, except per share amounts) | March 31, | June 30, | September 30, | December 31, | ||||||||||||
Net sales | $ | 114,722 | $ | 136,109 | $ | 142,389 | $ | 136,134 | ||||||||
Gross profit | 32,549 | 37,836 | 40,449 | 40,628 | ||||||||||||
Operating income | 3,895 | 9,976 | 10,471 | 7,812 | ||||||||||||
Net income | 2,946 | 5,841 | 8,623 | 5,553 | ||||||||||||
Earnings per share (1): | ||||||||||||||||
Basic | $ | 0.2 | $ | 0.39 | $ | 0.56 | $ | 0.36 | ||||||||
Diluted | $ | 0.19 | $ | 0.38 | $ | 0.55 | $ | 0.35 | ||||||||
Shares used in computing earnings per share: | ||||||||||||||||
Basic | 14,965 | 15,098 | 15,324 | 15,602 | ||||||||||||
Diluted | 15,225 | 15,419 | 15,743 | 16,011 | ||||||||||||
2012 | ||||||||||||||||
(In thousands, except per share amounts) | March 31, | June 30, | September 30, | December 31, | ||||||||||||
Net sales | $ | 103,732 | $ | 116,704 | $ | 124,871 | $ | 117,783 | ||||||||
Gross profit | 28,327 | 32,970 | 36,438 | 35,702 | ||||||||||||
Operating income | 2,312 | 6,466 | 9,534 | 7,890 | ||||||||||||
Net income | 1,632 | 5,153 | 6,850 | 2,918 | ||||||||||||
Earnings per share (1): | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.35 | $ | 0.46 | $ | 0.19 | ||||||||
Diluted | $ | 0.11 | $ | 0.34 | $ | 0.45 | $ | 0.19 | ||||||||
Shares used in computing earnings per share: | ||||||||||||||||
Basic | 14,871 | 14,933 | 14,984 | 15,016 | ||||||||||||
Diluted | 15,108 | 15,048 | 15,099 | 15,180 | ||||||||||||
(1) | The earnings per common share calculations for each of the quarters were based upon the weighted average number of shares and share equivalents outstanding during each period, and the sum of the quarters may not be equal to the full year earnings per share amounts. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Principles of Consolidation | ' | |
Principles of Consolidation | ||
The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All the intercompany accounts and transactions have been eliminated in the consolidated financial statements. | ||
Reclassifications | ' | |
Reclassifications | ||
Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net income or stockholders' equity. | ||
Estimates and Assumptions | ' | |
Estimates and Assumptions | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. On an on-going basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowances for sales returns and doubtful accounts, warranties, inventory valuation, business combination purchase price allocations, our review for impairment of long-lived assets, intangible assets and goodwill, income taxes and compensation expense. Actual results may differ from these assumptions and estimates, and they may be adjusted as more information becomes available. Any adjustment may be material. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
We recognize revenue on the sale of products when title of the goods has transferred, there is persuasive evidence of an arrangement (such as when a purchase order is received from the customer), the sales price is fixed or determinable, and collectability is reasonably assured. | ||
The provision recorded for estimated sales returns is deducted from gross sales to arrive at net sales in the period the related revenue is recorded. These estimates are based on historical sales returns, analysis of credit memo data and other known factors. We have no obligations after delivery of our products other than the associated warranties. See Note 13 for further information concerning our warranty obligations. | ||
We accrue for discounts and rebates based on historical experience and our expectations regarding future sales to our customers. Accruals for discounts and rebates are recorded as a reduction to sales in the same period as the related revenues. Changes in such accruals may be required if future rebates and incentives differ from our estimates. | ||
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. Sales allowances are recognized as reductions of gross accounts receivable to arrive at accounts receivable, net if the sales allowances are distributed in customer account credits. See Note 4 for further information concerning our sales allowances. | ||
Revenue for the sale of tooling is recognized when the related services have been provided, customer acceptance documentation has been obtained, the sales price is fixed or determinable, and collectability is reasonably assured. | ||
We generate service revenue, which is paid monthly, as a result of providing consumer support programs to some of our customers through our call centers. These service revenues are recognized when services are performed, persuasive evidence of an arrangement exists (such as when a signed agreement is received from the customer), the sales price is fixed or determinable, and collectability is reasonably assured. | ||
We license our intellectual property including our patented technologies, trademarks, and database of infrared codes. When our license fees are paid on a per unit basis we record license revenue when our customers ship a product incorporating our intellectual property, persuasive evidence of an arrangement exists, the sales price is fixed or determinable, and collectability is reasonably assured. When a fixed upfront license fee is received in exchange for the delivery of a particular database of infrared codes that represents the culmination of the earnings process, we record revenues when delivery has occurred, persuasive evidence of an arrangement exists, the sales price is fixed or determinable and collectability is reasonably assured. Revenue for term license fees is recognized on a straight-line basis over the effective term of the license when we cannot reliably predict in which periods, within the term of the license, the licensee will benefit from the use of our patented inventions. | ||
We present all non-income government-assessed taxes (sales, use and value added taxes) collected from our customers and remitted to governmental agencies on a net basis (excluded from revenue) in our financial statements. The government-assessed taxes are recorded in other accrued expenses until they are remitted to the government agency. | ||
Income Taxes | ' | |
Income Taxes | ||
Income tax expense includes U.S. and foreign income taxes. We account for income taxes using the liability method. We record deferred tax assets and deferred tax liabilities on our balance sheet for expected future tax consequences of events recognized in our financial statements in a different period than our tax return using enacted tax rates that will be in effect when these differences reverse. We record a valuation allowance to reduce net deferred tax assets if we determine that it is more likely than not that the deferred tax assets will not be realized. A current tax asset or liability is recognized for the estimated taxes refundable or payable for the current year. | ||
Accounting standards prescribe a recognition threshold and a measurement attribute for the financial statement recognition and measurement of the positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. A "more likely than not" tax position is measured as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement, or else a full reserve is established against the tax asset or a liability is recorded. See Note 9 for further information concerning income taxes. | ||
Research and Development | ' | |
Research and Development | ||
Research and development costs are expensed as incurred and consist primarily of salaries, employee benefits, supplies and materials. | ||
Advertising | ' | |
Advertising | ||
Advertising costs are expensed as incurred. | ||
Shipping and Handling Fees and Costs | ' | |
Shipping and Handling Fees and Costs | ||
We include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with in-bound freight are recorded in cost of goods sold. | ||
Stock-Based Compensation | ' | |
Stock-Based Compensation | ||
We recognize the grant date fair value of stock-based compensation awards as expense, net of estimated forfeitures, in proportion to vesting during the requisite service period, which ranges from one to four years. Estimated forfeiture rates are based upon historical forfeitures. | ||
We determine the fair value of restricted stock awards utilizing the average of the high and low trade prices of our Company's shares on the date they were granted. | ||
The fair value of stock options granted to employees and directors is determined utilizing the Black-Scholes option pricing model. The assumptions utilized in the Black-Scholes model include risk-free interest rate, expected volatility, and expected life in years. The risk-free interest rate over the expected term is equal to the prevailing U.S. Treasury note rate over the same period. Expected volatility is determined utilizing historical volatility over a period of time equal to the expected life of the stock option. Expected life is computed utilizing historical exercise patterns and post-vesting behavior. The dividend yield is assumed to be zero since we have not historically declared dividends and do not have any plans to declare dividends in the future. See Note 16 for further information regarding stock-based compensation. | ||
Foreign Currency Translation and Foreign Currency Transactions | ' | |
Foreign Currency Translation and Foreign Currency Transactions | ||
We use the U.S. Dollar as our functional currency for financial reporting purposes. The functional currency for most of our foreign subsidiaries is their local currency. The translation of foreign currencies into U.S. Dollars is performed for balance sheet accounts using exchange rates in effect at the balance sheet dates and for revenue and expense accounts using the average exchange rate during each period. The gains and losses resulting from the translation are included in the foreign currency translation adjustment account, a component of accumulated other comprehensive income in stockholders' equity, and are excluded from net income. The portions of intercompany accounts receivable and accounts payable that are intended for settlement are translated at exchange rates in effect at the balance sheet date. Our intercompany foreign investments and long-term debt that are not intended for settlement are translated using historical exchange rates. | ||
Transaction gains and losses generated by the effect of changes in foreign currency exchange rates on recorded assets and liabilities denominated in a currency different than the functional currency of the applicable entity are recorded in other income (expense), net. See Note 17 for further information concerning transaction gains and losses. | ||
Earnings Per Share | ' | |
Earnings Per Share | ||
Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of common shares and dilutive potential common shares, including the dilutive effect of stock option and restricted stock awards, outstanding during the period. Dilutive potential common shares for all periods presented are computed utilizing the treasury stock method. | ||
In the computation of diluted earnings per common share we exclude stock options with exercise prices greater than the average market price of the underlying common stock because their inclusion would be anti-dilutive. Furthermore, we exclude shares of restricted stock whose combined unamortized fair value and excess tax benefits are greater than the average market price of the underlying common stock during the period, as their effect would be anti-dilutive. | ||
Financial Instruments | ' | |
Financial Instruments | ||
Our financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, accrued liabilities and debt. The carrying value of our financial instruments approximates fair value as a result of their short maturities. See Notes 3, 4, 5, 8, 10, and 11 for further information concerning our financial instruments. | ||
Cash and Cash Equivalents | ' | |
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less. We attempt to mitigate our exposure to liquidity, credit and other relevant risks by placing our cash and cash equivalents with financial institutions we believe are high quality. These financial institutions are located in many different geographic regions. As part of our cash and risk management processes, we perform periodic evaluations of the relative credit standing of our financial institutions. We have not sustained credit losses from instruments held at financial institutions. See Note 3 for further information concerning cash and cash equivalents. | ||
Allowance for Doubtful Accounts | ' | |
Allowance for Doubtful Accounts | ||
We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make payments for products sold or services rendered. The allowance for doubtful accounts is based on a variety of factors, including credit reviews, historical experience, length of time receivables are past due, current economic trends and changes in customer payment behavior. | ||
We also record specific provisions for individual accounts when we become aware of a customer's inability to meet its financial obligations to us, such as in the case of bankruptcy filings or deterioration in the customer's operating results or financial position. If circumstances related to a customer change, our estimates of the recoverability of the receivables would be further adjusted. | ||
Inventories | ' | |
Inventories | ||
Inventories consist of remote controls, audio-video accessories as well as the related component parts and raw materials. Inventoriable costs include materials, labor, freight-in and manufacturing overhead related to the purchase and production of inventories. We value our inventories at the lower of cost or market. Cost is determined using the first-in, first-out method. We attempt to carry inventories in amounts necessary to satisfy our customer requirements on a timely basis. See Note 5 for further information concerning our inventories and suppliers. | ||
Product innovations and technological advances may shorten a given product's life cycle. We continually monitor our inventories to identify any excess or obsolete items on hand. We write-down our inventories for estimated excess and obsolescence in an amount equal to the difference between the cost of the inventories and estimated net realizable value. These estimates are based upon management's judgment about future demand and market conditions. Actual results may differ from management's judgments and additional write-downs may be required. | ||
Property, Plant and Equipment | ' | |
Property, Plant, and Equipment | ||
Property, plant, and equipment are recorded at cost. The cost of property, plant, and equipment includes the purchase price of the asset and all expenditures necessary to prepare the asset for its intended use. We capitalize additions and improvements and expense maintenance and repairs as incurred. To qualify for capitalization an asset must have a useful life greater than one year and a cost greater than $1,000 for individual assets or $5,000 for assets purchased in bulk. | ||
We capitalize certain internal and external costs incurred to acquire or create internal use software, principally related to software coding, designing system interfaces and installation and testing of the software. | ||
For financial reporting purposes, depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. When assets are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the appropriate accounts and any gain or loss is included as a component of depreciation expense in operating income. | ||
Estimated useful lives consist of the following: | ||
Buildings | 25 years | |
Tooling and equipment | 2-7 Years | |
Computer equipment | 3-7 Years | |
Software | 3-5 Years | |
Furniture and fixtures | 5-7 Years | |
Leasehold improvements | Lesser of lease term or useful life | |
(approximately 2 to 10 years) | ||
See Note 6 for further information concerning our property, plant, and equipment. | ||
Goodwill | ' | |
Goodwill | ||
We record the excess purchase price of net tangible and intangible assets acquired over their estimated fair value as goodwill. We evaluate the carrying value of goodwill on December 31 of each year and between annual evaluations if events occur or circumstances change that may reduce the fair value of the reporting unit below its carrying amount. Such circumstances may include, but are not limited to: (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. | ||
When performing the impairment review, we determine the carrying amount of each reporting unit by assigning assets and liabilities, including the existing goodwill, to those reporting units. A reporting unit is defined as an operating segment or one level below an operating segment (referred to as a component). A component of an operating segment is deemed a reporting unit if the component constitutes a business for which discrete financial information is available, and segment management regularly reviews the operating results of that component. We have a single reporting unit. | ||
To evaluate whether goodwill is impaired, we conduct a two-step quantitative goodwill impairment test. In the first step we compare the estimated fair value of the reporting unit to which the goodwill is assigned to the reporting unit's carrying amount, including goodwill. We estimate the fair value of our reporting unit based on income and market approaches. Under the income approach, we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. Under the market approach, we estimate the fair value based on market multiples of Enterprise Value to EBITDA for comparable companies. If the carrying value of the net assets assigned to the reporting unit exceeds the fair value of the reporting unit, then we perform the second step of the impairment test in order to determine the implied fair value of the reporting unit's goodwill. To calculate the implied fair value of the reporting unit's goodwill, the fair value of the reporting unit is first allocated to all of the other assets and liabilities of that unit based on their fair values. The excess of the reporting unit's fair value over the amount assigned to its other assets and liabilities is the implied fair value of goodwill. An impairment loss would be recognized equal to the amount by which the carrying value of goodwill exceeds its implied fair value. | ||
See Note 7 for further information concerning goodwill. | ||
Long-Lived and Intangible Assets Impairment | ' | |
Long-Lived and Intangible Assets Impairment | ||
Intangible assets consist principally of distribution rights, patents, trademarks, trade names, developed and core technologies, capitalized software development costs (see also Note 2 under the caption Capitalized Software Development Costs) and customer relationships. Capitalized amounts related to patents represent external legal costs for the application and maintenance of patents. Intangible assets are amortized using the straight-line method over their estimated period of benefit, ranging from one to fifteen years. | ||
We assess the impairment of long-lived assets and intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors considered important which may trigger an impairment review include the following: (1) significant underperformance relative to expected historical or projected future operating results; (2) significant changes in the manner or use of the assets or strategy for the overall business; (3) significant negative industry or economic trends and (4) a significant decline in our stock price for a sustained period. | ||
We conduct an impairment review when we determine that the carrying value of a long-lived or intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment. The asset is impaired if its carrying value exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. In assessing recoverability, we must make assumptions regarding estimated future cash flows and other factors. | ||
The impairment loss is the amount by which the carrying value of the asset exceeds its fair value. We estimate fair value utilizing the projected discounted cash flow method and a discount rate determined by our management to be commensurate with the risk inherent in our current business model. When calculating fair value, we must make assumptions regarding estimated future cash flows, discount rates and other factors. | ||
See Notes 6 and 15 for further information concerning long-lived assets. See Note 7 for further information concerning intangible assets. | ||
Capitalized Software Development Costs | ' | |
Capitalized Software Development Costs | ||
Costs incurred to develop software for resale are expensed when incurred as research and development until technological feasibility has been established. We have determined that technological feasibility for our products is typically established when a working prototype is complete. Once technological feasibility is established, software development costs are capitalized until the product is available for general release to customers. | ||
Capitalized software development costs are amortized on a product-by-product basis. Amortization is recorded in cost of sales and is the greater of the amounts computed using: | ||
a. | the net book value at the beginning of the period multiplied by the ratio that current gross revenues for a product bear to the total of current and anticipated future gross revenues for that product; or | |
b. | the straight-line method over the remaining estimated economic life of the product including the period being reported on. | |
The amortization of capitalized software development costs begins when the related product is available for general release to customers. The amortization periods normally range from one to two years. | ||
We compare the unamortized capitalized software development costs of a product to its net realizable value at each balance sheet date. The amount by which the unamortized capitalized software development costs exceed the product's net realizable value is written off. The net realizable value is the estimated future gross revenues of a product reduced by its estimated completion and disposal costs. Any remaining amount of capitalized software development costs are considered to be the cost for subsequent accounting purposes and the amount of the write-down is not subsequently restored. See Note 7 for further information concerning capitalized software development costs. | ||
Derivatives | ' | |
Derivatives | ||
Our foreign currency exposures are primarily concentrated in the Argentinian Peso, Brazilian Real, British Pound, Chinese Yuan Renminbi, Euro, Hong Kong Dollar, Indian Rupee, and Singapore Dollar. We periodically enter into foreign currency exchange contracts with terms normally lasting less than nine months to protect against the adverse effects that exchange-rate fluctuations may have on our foreign currency-denominated receivables, payables, cash flows and reported income. We do not enter into financial instruments for speculation or trading purposes. | ||
The derivatives we enter into have not qualified for hedge accounting. The gains and losses on both the derivatives and the foreign currency-denominated balances are recorded as foreign exchange transaction gains or losses and are classified in other income (expense), net. Derivatives are recorded on the balance sheet at fair value. The estimated fair value of derivative financial instruments represents the amount required to enter into similar offsetting contracts with similar remaining maturities based on quoted market prices. See Note 19 for further information concerning derivatives. | ||
Fair-Value Measurements | ' | |
Fair-Value Measurements | ||
We measure fair value using the framework established by the Financial Accounting Standards Board ("FASB") for fair value measurements and disclosures. This framework requires fair value to be determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. | ||
The valuation techniques are based upon observable and unobservable inputs. Observable or market inputs reflect market data obtained from independent sources. Unobservable inputs require management to make certain assumptions and judgments based on the best information available. Observable inputs are the preferred data source. These two types of inputs result in the following fair value hierarchy: | ||
Level 1: | Quoted prices (unadjusted) for identical instruments in active markets. | |
Level 2: | Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
Level 3: | Prices or valuations that require management inputs that are both significant to the fair value measurement and unobservable. | |
Recent Accounting Pronouncements | ' | |
Recent Accounting Pronouncements | ||
In July 2013, the FASB issued ASU 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists". This standard requires an entity to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. Early adoption is permitted. The adoption of ASU 2013-11 is not expected to have a material impact on our consolidated results of operations or financial position. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Property, plant and equipment useful lives | ' | |||||||
Estimated useful lives consist of the following: | ||||||||
Buildings | 25 years | |||||||
Tooling and equipment | 2-7 Years | |||||||
Computer equipment | 3-7 Years | |||||||
Software | 3-5 Years | |||||||
Furniture and fixtures | 5-7 Years | |||||||
Leasehold improvements | Lesser of lease term or useful life | |||||||
(approximately 2 to 10 years) | ||||||||
Construction in progress was as follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Buildings | $ | — | $ | 5,639 | ||||
Machinery and equipment | 158 | 594 | ||||||
Tooling | 134 | 395 | ||||||
Leasehold improvements | 104 | 285 | ||||||
Software | 372 | 742 | ||||||
Other | 75 | 30 | ||||||
Total construction in progress | $ | 843 | $ | 7,685 | ||||
Property, plant, and equipment, net were as follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Buildings | $ | 51,901 | $ | 44,607 | ||||
Machinery and equipment | 48,859 | 44,168 | ||||||
Tooling | 26,495 | 24,496 | ||||||
Leasehold improvements | 17,749 | 16,153 | ||||||
Software | 8,504 | 7,373 | ||||||
Furniture and Fixtures | 6,231 | 5,360 | ||||||
Computer Equipment | 2,691 | 2,630 | ||||||
162,430 | 144,787 | |||||||
Accumulated depreciation | (87,703 | ) | (74,766 | ) | ||||
74,727 | 70,021 | |||||||
Construction in progress | 843 | 7,685 | ||||||
Total property, plant, and equipment, net | $ | 75,570 | $ | 77,706 | ||||
Cash_and_Cash_Equivalents_Tabl
Cash and Cash Equivalents (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Cash and Cash Equivalents [Abstract] | ' | |||||||
Schedule of Cash and Cash Equivalents | ' | |||||||
Cash and cash equivalents were held in the following geographic regions: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
United States | $ | 30,082 | $ | 2,742 | ||||
Asia | 34,627 | 27,317 | ||||||
Europe | 7,161 | 9,361 | ||||||
South America | 4,304 | 5,173 | ||||||
Total cash and cash equivalents | $ | 76,174 | $ | 44,593 | ||||
Accounts_Receivable_Net_and_Re1
Accounts Receivable, Net and Revenue Concentrations (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||
Schedule of Accounts Receivable | ' | ||||||||||||||||||||
Accounts receivable, net were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||
Trade receivables, gross | $ | 94,325 | $ | 90,056 | |||||||||||||||||
Allowance for doubtful accounts | (478 | ) | (322 | ) | |||||||||||||||||
Allowance for sales returns | (865 | ) | (996 | ) | |||||||||||||||||
Net trade receivables | 92,982 | 88,738 | |||||||||||||||||||
Other | 2,426 | 2,310 | |||||||||||||||||||
Accounts receivable, net | $ | 95,408 | $ | 91,048 | |||||||||||||||||
Allowance for Doubtful Accounts | |||||||||||||||||||||
Changes in the allowance for doubtful accounts were as follows: | |||||||||||||||||||||
(In thousands) | Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Balance at beginning of period | $ | 322 | $ | 1,021 | $ | 878 | |||||||||||||||
Additions to costs and expenses | 190 | 73 | 277 | ||||||||||||||||||
(Write-offs)/FX effects | (34 | ) | (772 | ) | (134 | ) | |||||||||||||||
Balance at end of period | $ | 478 | $ | 322 | $ | 1,021 | |||||||||||||||
Schedule of Significant Customers to Net Sales | ' | ||||||||||||||||||||
Net sales to individual customers that totaled more than 10% of our net sales were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
$ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | $ (thousands) | % of Net Sales | ||||||||||||||||
DIRECTV | $ | 82,679 | 15.6 | % | $ | 78,325 | 16.9 | % | $ | 57,371 | 12.2 | % | |||||||||
Sony | — | — | — | — | 48,483 | 10.3 | |||||||||||||||
Schedule of Receivables by Major Customers | ' | ||||||||||||||||||||
Trade receivables associated with significant customer activity that totaled more than 10% of our accounts receivable, net were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
$ (thousands) | % of Accounts | $ (thousands) | % of Accounts | ||||||||||||||||||
receivable, net | Receivable, net | ||||||||||||||||||||
DIRECTV | $ | — | — | % | $ | 9,277 | 10.2 | % | |||||||||||||
Inventories_Net_and_Significan1
Inventories, Net and Significant Suppliers (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Inventory Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Inventories, Net | ' | ||||||||||||||||||||
Inventories, net were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | |||||||||||||||||||
Raw materials | $ | 18,990 | $ | 17,438 | |||||||||||||||||
Components | 18,623 | 20,978 | |||||||||||||||||||
Work in process | 2,017 | 1,050 | |||||||||||||||||||
Finished goods | 59,393 | 46,939 | |||||||||||||||||||
Reserve for excess and obsolete inventory | (2,714 | ) | (2,024 | ) | |||||||||||||||||
Inventories, net | $ | 96,309 | $ | 84,381 | |||||||||||||||||
Schedule of Reserve for Excess and Obsolete Inventory | ' | ||||||||||||||||||||
Changes in the reserve for excess and obsolete inventory were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||
Balance at beginning of period | $ | 2,024 | $ | 3,447 | $ | 2,135 | |||||||||||||||
Additions charged to costs and expenses (1) | 3,387 | 2,511 | 4,568 | ||||||||||||||||||
Sell through (2) | (365 | ) | (1,166 | ) | (1,295 | ) | |||||||||||||||
Write-offs/FX effects | (2,332 | ) | (2,768 | ) | (1,961 | ) | |||||||||||||||
Balance at end of period | $ | 2,714 | $ | 2,024 | $ | 3,447 | |||||||||||||||
(1) | The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.3 million, $0.5 million, and $1.0 million for the years ended December 31, 2013, 2012, and 2011, respectively. These amounts are production waste and are not included in management’s reserve for excess and obsolete inventory. | ||||||||||||||||||||
(2) | These amounts represent the reversal of reserves associated with inventory items that were sold during the period. Sell through is the result of differences between our judgment concerning the saleability of inventory items during the excess and obsolete inventory review process and our subsequent experience. | ||||||||||||||||||||
Schedule of Related Party Transactions | ' | ||||||||||||||||||||
Inventory purchases from this vendor were as follows: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
$ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | $ (thousands) | % of Total Inventory Purchases | ||||||||||||||||
Related party vendor | $ | 9,846 | 3.5 | % | $ | 8,845 | 3.8 | % | $ | 8,677 | 3 | % | |||||||||
Total accounts payable to this vendor were as follows: | |||||||||||||||||||||
December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
$ (thousands) | % of Accounts Payable | $ (thousands) | % of Accounts Payable | ||||||||||||||||||
Related party vendor | $ | 2,439 | 4.2 | % | $ | 1,815 | 3 | % | |||||||||||||
Property_Plant_and_Equipment_N1
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment, Net | ' | |||||||
Estimated useful lives consist of the following: | ||||||||
Buildings | 25 years | |||||||
Tooling and equipment | 2-7 Years | |||||||
Computer equipment | 3-7 Years | |||||||
Software | 3-5 Years | |||||||
Furniture and fixtures | 5-7 Years | |||||||
Leasehold improvements | Lesser of lease term or useful life | |||||||
(approximately 2 to 10 years) | ||||||||
Construction in progress was as follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Buildings | $ | — | $ | 5,639 | ||||
Machinery and equipment | 158 | 594 | ||||||
Tooling | 134 | 395 | ||||||
Leasehold improvements | 104 | 285 | ||||||
Software | 372 | 742 | ||||||
Other | 75 | 30 | ||||||
Total construction in progress | $ | 843 | $ | 7,685 | ||||
Property, plant, and equipment, net were as follows: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Buildings | $ | 51,901 | $ | 44,607 | ||||
Machinery and equipment | 48,859 | 44,168 | ||||||
Tooling | 26,495 | 24,496 | ||||||
Leasehold improvements | 17,749 | 16,153 | ||||||
Software | 8,504 | 7,373 | ||||||
Furniture and Fixtures | 6,231 | 5,360 | ||||||
Computer Equipment | 2,691 | 2,630 | ||||||
162,430 | 144,787 | |||||||
Accumulated depreciation | (87,703 | ) | (74,766 | ) | ||||
74,727 | 70,021 | |||||||
Construction in progress | 843 | 7,685 | ||||||
Total property, plant, and equipment, net | $ | 75,570 | $ | 77,706 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Goodwill | ' | |||||||||||||||||||||||
Goodwill and changes in the carrying amount of goodwill were as follows: | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance at December 31, 2011 | $ | 30,820 | ||||||||||||||||||||||
Goodwill adjustments (1) | 70 | |||||||||||||||||||||||
Balance at December 31, 2012 | $ | 30,890 | ||||||||||||||||||||||
Goodwill adjustments (1) | 110 | |||||||||||||||||||||||
Balance at December 31, 2013 | $ | 31,000 | ||||||||||||||||||||||
(1) | Adjustments were the result of fluctuations in the foreign currency exchange rate used to translate balances into U.S. Dollars. | |||||||||||||||||||||||
Schedule of Components of Intangible Assets | ' | |||||||||||||||||||||||
The components of intangible assets, net were as follows: | ||||||||||||||||||||||||
December 31, | ||||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||||
(In thousands) | Gross | Accumulated | Net | Gross | Accumulated | Net | ||||||||||||||||||
Amortization | Amortization | |||||||||||||||||||||||
Carrying amount(1): | ||||||||||||||||||||||||
Distribution rights (10 years) | $ | 395 | $ | (52 | ) | $ | 343 | $ | 378 | $ | (50 | ) | $ | 328 | ||||||||||
Patents (10 years) | 8,879 | (4,251 | ) | 4,628 | 8,113 | (3,847 | ) | 4,266 | ||||||||||||||||
Trademark and trade names | 2,841 | (1,411 | ) | 1,430 | 2,841 | (1,127 | ) | 1,714 | ||||||||||||||||
(10 years) | ||||||||||||||||||||||||
Developed and core technology (5-15 years) | 3,506 | (1,140 | ) | 2,366 | 3,507 | (906 | ) | 2,601 | ||||||||||||||||
Capitalized software development costs (1-2 years) | 311 | (133 | ) | 178 | 1,276 | (913 | ) | 363 | ||||||||||||||||
Customer relationships | 26,406 | (8,388 | ) | 18,018 | 26,415 | (5,852 | ) | 20,563 | ||||||||||||||||
(10-15 years) | ||||||||||||||||||||||||
Total carrying amount | $ | 42,338 | $ | (15,375 | ) | $ | 26,963 | $ | 42,530 | $ | (12,695 | ) | $ | 29,835 | ||||||||||
(1) | This table excludes the gross value of fully amortized intangible assets totaling $6.6 million and $9.1 million on December 31, 2013 and 2012, respectively. | |||||||||||||||||||||||
Intangible Assets Amortization Expense | ' | |||||||||||||||||||||||
Amortization expense by income statement caption was as follows: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Cost of sales | $ | 213 | $ | 312 | $ | 451 | ||||||||||||||||||
Selling, general and administrative | 3,914 | 3,862 | 3,795 | |||||||||||||||||||||
Total amortization expense | $ | 4,127 | $ | 4,174 | $ | 4,246 | ||||||||||||||||||
Schedule of Estimated Future Amortization Expense | ' | |||||||||||||||||||||||
Estimated future amortization expense related to our intangible assets at December 31, 2013, is as follows: | ||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
2014 | $ | 4,088 | ||||||||||||||||||||||
2015 | 3,924 | |||||||||||||||||||||||
2016 | 3,886 | |||||||||||||||||||||||
2017 | 3,857 | |||||||||||||||||||||||
2018 | 3,847 | |||||||||||||||||||||||
Thereafter | 7,361 | |||||||||||||||||||||||
$ | 26,963 | |||||||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Income before Income Tax | ' | |||||||||||
Pre-tax income was attributed to the following jurisdictions: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Domestic operations | $ | 2,425 | $ | (2,203 | ) | $ | 3,279 | |||||
Foreign operations | 26,611 | 26,841 | 21,952 | |||||||||
Total | $ | 29,036 | $ | 24,638 | $ | 25,231 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||||||||||
The provision for income taxes charged to operations were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Current tax expense: | ||||||||||||
U.S. federal | $ | 971 | $ | (891 | ) | $ | 1,319 | |||||
State and local | 254 | (75 | ) | 12 | ||||||||
Foreign | 6,426 | 6,464 | 5,122 | |||||||||
Total current | 7,651 | 5,498 | 6,453 | |||||||||
Deferred tax (benefit) expense: | ||||||||||||
U.S. federal | (101 | ) | (882 | ) | 153 | |||||||
State and local | (67 | ) | 3,630 | (409 | ) | |||||||
Foreign | (1,410 | ) | (161 | ) | (912 | ) | ||||||
Total deferred | (1,578 | ) | 2,587 | (1,168 | ) | |||||||
Total provision for income taxes | $ | 6,073 | $ | 8,085 | $ | 5,285 | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
Net deferred tax assets were comprised of the following: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Deferred tax assets: | ||||||||||||
Inventory reserves | $ | 1,582 | $ | 1,017 | ||||||||
Capitalized research costs | 97 | 106 | ||||||||||
Capitalized inventory costs | 920 | 760 | ||||||||||
Net operating losses | 1,101 | 1,339 | ||||||||||
Acquired intangible assets | 49 | 10 | ||||||||||
Accrued liabilities | 4,215 | 3,785 | ||||||||||
Income tax credits | 5,982 | 4,321 | ||||||||||
Stock-based compensation | 2,260 | 3,525 | ||||||||||
Total deferred tax assets | 16,206 | 14,863 | ||||||||||
Deferred tax liability: | ||||||||||||
Depreciation | (4,679 | ) | (5,132 | ) | ||||||||
Allowance for doubtful accounts | (80 | ) | (41 | ) | ||||||||
Amortization of intangible assets | (2,583 | ) | (2,858 | ) | ||||||||
Other | (1,600 | ) | (1,922 | ) | ||||||||
Total deferred tax liabilities | (8,942 | ) | (9,953 | ) | ||||||||
Net deferred tax assets before valuation allowance | 7,264 | 4,910 | ||||||||||
Less: Valuation allowance | (4,832 | ) | (4,059 | ) | ||||||||
Net deferred tax assets | $ | 2,432 | $ | 851 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||||||
The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. statutory federal income tax rate to pre-tax income from operations as a result of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Tax provision at statutory U.S. rate | $ | 9,872 | $ | 8,377 | $ | 8,578 | ||||||
Increase (decrease) in tax provision resulting from: | ||||||||||||
State and local taxes, net | (397 | ) | (246 | ) | (262 | ) | ||||||
Foreign tax rate differential | (3,804 | ) | (3,488 | ) | (3,528 | ) | ||||||
Nondeductible items | 989 | 388 | 407 | |||||||||
Federal research and development credits | (1,149 | ) | (369 | ) | (503 | ) | ||||||
Change in deductibility of social insurance | 214 | 617 | — | |||||||||
Valuation allowance | 520 | 2,592 | — | |||||||||
Other | (172 | ) | 214 | 593 | ||||||||
Tax provision | $ | 6,073 | $ | 8,085 | $ | 5,285 | ||||||
Schedule of Unrecognized Tax Benefits Roll Forward | ' | |||||||||||
Our gross unrecognized tax benefits at December 31, 2013, 2012 and 2011, and the changes during those years then ended, were the following: | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Beginning balance | $ | 5,006 | $ | 5,387 | $ | 5,411 | ||||||
Additions as a result of tax provisions taken during the current year | 357 | 261 | 138 | |||||||||
Subtractions as a result of tax provisions taken during the prior year | (126 | ) | (346 | ) | (67 | ) | ||||||
Foreign currency translation | 45 | — | 133 | |||||||||
Lapse in statute of limitations | (63 | ) | (296 | ) | (224 | ) | ||||||
Settlements | (1,729 | ) | — | (15 | ) | |||||||
Acquisition | — | — | 11 | |||||||||
Ending balance | $ | 3,490 | $ | 5,006 | $ | 5,387 | ||||||
Accrued_Compensation_Tables
Accrued Compensation (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Components of Accrued Compensation | ' | |||||||
The components of accrued compensation are listed below: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Accrued social insurance(1) | $ | 20,492 | $ | 19,842 | ||||
Accrued salary/wages | 5,324 | 4,862 | ||||||
Accrued vacation/holiday | 2,113 | 2,048 | ||||||
Accrued bonus(2) | 7,186 | 4,181 | ||||||
Accrued commission | 1,350 | 478 | ||||||
Accrued medical insurance claims | 201 | 643 | ||||||
Other accrued compensation | 1,651 | 1,344 | ||||||
Total accrued compensation | $ | 38,317 | $ | 33,398 | ||||
(1) | Effective January 1, 2008, the Chinese Labor Contract Law was enacted in the PRC. This law mandated that PRC employers remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on December 31, 2013 and 2012. | |||||||
(2) | Accrued bonus includes an accrual for an extra month of salary ("13th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13th month salary was $0.6 million and $0.5 million at December 31, 2013 and 2012, respectively. |
Other_Accrued_Expenses_Tables
Other Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Components of Other Accrued Expenses | ' | |||||||
The components of other accrued expenses are listed below: | ||||||||
December 31, | ||||||||
(In thousands) | 2013 | 2012 | ||||||
Advertising and marketing | $ | 238 | $ | 501 | ||||
Duties | 797 | 584 | ||||||
Freight | 1,374 | 1,666 | ||||||
Product development | 614 | 569 | ||||||
Product warranty claim costs | 41 | 404 | ||||||
Professional fees | 1,757 | 1,234 | ||||||
Sales taxes and VAT | 1,637 | 1,979 | ||||||
Third-party commissions | 511 | 337 | ||||||
Tooling (1) | 758 | 221 | ||||||
Utilities | 311 | 316 | ||||||
Other | 3,191 | 2,833 | ||||||
Total other accrued expenses | $ | 11,229 | $ | 10,644 | ||||
(1) | The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. |
Leases_Tables
Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||
The following table summarizes future minimum non-cancelable operating lease payments at December 31, 2013: | ||||
(In thousands) | Amount | |||
Year ending December 31: | ||||
2014 | $ | 2,699 | ||
2015 | 2,117 | |||
2016 | 1,803 | |||
2017 | 1,415 | |||
2018 | 1,248 | |||
Thereafter | 3,423 | |||
Total operating lease commitments | $ | 12,705 | ||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||
Schedule of Changes in Reserve for Product Warranty Claim Costs | ' | |||||||||||
Changes in the liability for product warranty claim costs were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Balance at beginning of period | $ | 404 | $ | 6 | $ | 71 | ||||||
Accruals for warranties issued during the period | 416 | 398 | (27 | ) | ||||||||
Settlements (in cash or in kind) during the period | (779 | ) | — | (38 | ) | |||||||
Balance at end of period | $ | 41 | $ | 404 | $ | 6 | ||||||
Treasury_Stock_Tables
Treasury Stock (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Equity [Abstract] | ' | |||||||||||
Treasury Stock | ' | |||||||||||
Repurchased shares of our common stock were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Shares repurchased | 153 | 201 | 457 | |||||||||
Cost of shares repurchased | $ | 3,607 | $ | 3,451 | $ | 9,785 | ||||||
Business_Segment_and_Foreign_O1
Business Segment and Foreign Operations (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Schedule of Net Sales to External Customers by Geographic Area | ' | |||||||||||
Our net sales to external customers by geographic area were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Net sales: | ||||||||||||
United States | $ | 195,308 | $ | 165,209 | $ | 137,799 | ||||||
Asia (excluding PRC) | 107,886 | 108,979 | 121,089 | |||||||||
People’s Republic of China | 89,918 | 76,873 | 106,597 | |||||||||
Europe | 72,852 | 61,617 | 56,448 | |||||||||
Latin America | 35,179 | 28,677 | 17,585 | |||||||||
Other | 28,211 | 21,735 | 29,112 | |||||||||
Total net sales | $ | 529,354 | $ | 463,090 | $ | 468,630 | ||||||
Schedule of Long-lived Assets | ' | |||||||||||
Long-lived tangible assets were as follows: | ||||||||||||
December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | ||||||||||
Long-lived tangible assets: | ||||||||||||
United States | $ | 4,662 | $ | 5,541 | ||||||||
People's Republic of China | 72,957 | 73,804 | ||||||||||
All other countries | 3,230 | 3,722 | ||||||||||
Total | $ | 80,849 | $ | 83,067 | ||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Stock-based Compensation Expense | ' | ||||||||||||||||||||||||||||
Stock-based compensation expense by income statement caption and the related income tax benefit were as follows: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
(In thousands) | 2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Cost of sales | $ | 1 | $ | — | $ | 15 | |||||||||||||||||||||||
Research and development | 226 | 223 | 267 | ||||||||||||||||||||||||||
Selling, general and administrative: | |||||||||||||||||||||||||||||
Employees | 4,494 | 3,733 | 3,499 | ||||||||||||||||||||||||||
Outside directors | 621 | 619 | 730 | ||||||||||||||||||||||||||
Total stock-based compensation expense | $ | 5,342 | $ | 4,575 | $ | 4,511 | |||||||||||||||||||||||
Income tax benefit | $ | 1,575 | $ | 1,488 | $ | 1,505 | |||||||||||||||||||||||
Schedule of Black Scholes Assumptions | ' | ||||||||||||||||||||||||||||
The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following: | |||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Weighted average fair value of grants (1) | $ | 9.26 | $ | 9.57 | $ | 13.74 | |||||||||||||||||||||||
Risk-free interest rate | 0.95 | % | 0.86 | % | 2.29 | % | |||||||||||||||||||||||
Expected volatility | 53.39 | % | 55.22 | % | 52.25 | % | |||||||||||||||||||||||
Expected life in years | 5.2 | 5.15 | 5.03 | ||||||||||||||||||||||||||
(1) | The weighted average fair value of grants was calculated utilizing the stock options granted during each respective period. | ||||||||||||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||||||||||
Stock option activity was as follows: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms | Aggregate Intrinsic Value | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms | Number of Options | Number of Options | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Terms | Aggregate Intrinsic Value | ||||||||||||||||||
(in 000's) | (in years) | (in 000's) | (in 000's) | (in years) | (in 000's) | (in 000's) | (in years) | (in 000's) | |||||||||||||||||||||
Outstanding at beginning of the year | 1,412 | $ | 20.56 | 1,502 | $ | 19.53 | 1,502 | 1,525 | $ | 18.78 | |||||||||||||||||||
Granted | 201 | 19.68 | 153 | 19.92 | 153 | 108 | 28.97 | ||||||||||||||||||||||
Exercised | (679 | ) | 18.22 | $ | 8,355 | (189 | ) | 11.62 | 1,155 | (102 | ) | 16.51 | $ | 820 | |||||||||||||||
Forfeited/canceled/expired | (10 | ) | 24.75 | (54 | ) | 21.48 | (54 | ) | (29 | ) | 25.53 | ||||||||||||||||||
Outstanding at end of the year (1) | 924 | $ | 22.04 | 6.09 | $ | 14,854 | 1,412 | $ | 20.56 | 4.91 | 2,452 | 1,502 | $ | 19.53 | 4.81 | $ | 1,972 | ||||||||||||
Vested and expected to vest at the end of the year (1) | 921 | $ | 22.05 | 6.08 | $ | 14,791 | 1,409 | $ | 20.56 | 4.9 | 2,446 | 1,494 | $ | 19.51 | 4.78 | $ | 1,971 | ||||||||||||
Exercisable at the end of the year (1) | 671 | $ | 22.62 | 5.14 | $ | 10,388 | 1,181 | $ | 20.24 | 4.25 | 2,347 | 1,229 | $ | 18.71 | 4.05 | $ | 1,889 | ||||||||||||
(1) | The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2013, 2012, and 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on December 31, 2013, 2012, and 2011. This amount will change based on the fair market value of our stock. | ||||||||||||||||||||||||||||
Schedule of Exercise Price Range | ' | ||||||||||||||||||||||||||||
Significant option groups outstanding at December 31, 2013 and the related weighted average exercise price and life information are listed below: | |||||||||||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||||||||||
Range of Exercise Prices | Number | Weighted-Average | Weighted-Average | Number | Weighted-Average | ||||||||||||||||||||||||
Outstanding | Remaining Years of | Exercise Price | Exercisable | Exercise Price | |||||||||||||||||||||||||
(in 000’s) | Contractual Life | (in 000’s) | |||||||||||||||||||||||||||
$12.58 to $14.92 | 20 | 4.22 | $ | 13.66 | 16 | $ | 13.36 | ||||||||||||||||||||||
16.20 to 17.62 | 125 | 3.34 | 16.83 | 125 | 16.83 | ||||||||||||||||||||||||
18.04 to 21.95 | 460 | 7.47 | 20.05 | 249 | 20.43 | ||||||||||||||||||||||||
23.15 to 29.25 | 312 | 5.32 | 27.32 | 274 | 27.51 | ||||||||||||||||||||||||
32.40 to 35.35 | 7 | 3.94 | 34.51 | 7 | 34.51 | ||||||||||||||||||||||||
924 | 6.09 | $ | 22.04 | 671 | $ | 22.62 | |||||||||||||||||||||||
Schedule of Non-vested Restricted Stock Awards Activity | ' | ||||||||||||||||||||||||||||
Non-vested restricted stock award activity was as follows: | |||||||||||||||||||||||||||||
Shares | Weighted- | ||||||||||||||||||||||||||||
Granted | Average | ||||||||||||||||||||||||||||
(in 000’s) | Grant Date | ||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||
Non-vested at December 31, 2010 | 195 | $ | 17.3 | ||||||||||||||||||||||||||
Granted | 176 | 25.76 | |||||||||||||||||||||||||||
Vested | (162 | ) | 17.53 | ||||||||||||||||||||||||||
Forfeited | (4 | ) | 16.24 | ||||||||||||||||||||||||||
Non-vested at December 31, 2011 | 205 | 24.43 | |||||||||||||||||||||||||||
Granted | 205 | 15.22 | |||||||||||||||||||||||||||
Vested | (133 | ) | 21.91 | ||||||||||||||||||||||||||
Forfeited | (7 | ) | 23.11 | ||||||||||||||||||||||||||
Non-vested at December 31, 2012 | 270 | 18.72 | |||||||||||||||||||||||||||
Granted | 196 | 28.86 | |||||||||||||||||||||||||||
Vested | (178 | ) | 20.44 | ||||||||||||||||||||||||||
Forfeited | (3 | ) | 15.49 | ||||||||||||||||||||||||||
Non-vested at December 31, 2013 | 285 | $ | 24.64 | ||||||||||||||||||||||||||
Schedule of Information Regarding Stock Incentive Plans | ' | ||||||||||||||||||||||||||||
Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2013: | |||||||||||||||||||||||||||||
Name | Approval Date | Initial Shares | Remaining Shares | Outstanding Shares | |||||||||||||||||||||||||
Available for Grant | Available for Grant | Granted Under the | |||||||||||||||||||||||||||
Under the Plan | Under the Plan | Plan | |||||||||||||||||||||||||||
1998 Stock Incentive Plan | 5/27/98 | 630,000 | — | 5,000 | |||||||||||||||||||||||||
1999A Stock Incentive Plan | 10/7/99 | 1,000,000 | — | 28,750 | |||||||||||||||||||||||||
2002 Stock Incentive Plan | 2/5/02 | 1,000,000 | — | 28,730 | |||||||||||||||||||||||||
2003 Stock Incentive Plan | 6/18/03 | 1,000,000 | — | 180,963 | |||||||||||||||||||||||||
2006 Stock Incentive Plan | 6/13/06 | 1,000,000 | 3,670 | 356,606 | |||||||||||||||||||||||||
2010 Stock Incentive Plan | 6/15/10 | 1,000,000 | 215,969 | 594,536 | |||||||||||||||||||||||||
219,639 | 1,194,585 | ||||||||||||||||||||||||||||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Schedule of Components of Other Income (Expense), Net | ' | |||||||||||
Other income (expense), net consisted of the following: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Net gain (loss) on foreign currency exchange contracts(1) | $ | 888 | $ | 35 | $ | (271 | ) | |||||
Net gain (loss) on foreign currency exchange transactions | (4,155 | ) | (1,721 | ) | (1,141 | ) | ||||||
Other income | 98 | 273 | 337 | |||||||||
Other income (expense), net | $ | (3,169 | ) | $ | (1,413 | ) | $ | (1,075 | ) | |||
(1) | This represents the gains and (losses) incurred on foreign currency hedging derivatives (see Note 19 for further details). |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Schedule of Basic and Diluted Earnings Per Share | ' | |||||||||||
Earnings per share was calculated as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands, except per-share amounts) | 2013 | 2012 | 2011 | |||||||||
BASIC | ||||||||||||
Net income | $ | 22,963 | $ | 16,553 | $ | 19,946 | ||||||
Weighted-average common shares outstanding | 15,248 | 14,952 | 14,912 | |||||||||
Basic earnings per share | $ | 1.51 | $ | 1.11 | $ | 1.34 | ||||||
DILUTED | ||||||||||||
Net income | $ | 22,963 | $ | 16,553 | $ | 19,946 | ||||||
Weighted-average common shares outstanding for basic | 15,248 | 14,952 | 14,912 | |||||||||
Dilutive effect of stock options and restricted stock | 353 | 158 | 301 | |||||||||
Weighted-average common shares outstanding on a diluted basis | 15,601 | 15,110 | 15,213 | |||||||||
Diluted earnings per share | $ | 1.47 | $ | 1.1 | $ | 1.31 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | |||||||||||
The number of stock options and shares of restricted stock excluded from the computation of diluted earnings per common share were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
(In thousands) | 2013 | 2012 | 2011 | |||||||||
Stock options | 366 | 1,038 | 593 | |||||||||
Restricted stock shares | 18 | 166 | 120 | |||||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||||||
Schedule of Derivatives at Fair Value on a Recurring Basis | ' | ||||||||||||||||||||||||||||||||
The following table sets forth the fair value of derivatives: | |||||||||||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Fair Value Measurement Using | Total | Fair Value Measurement Using | Total | ||||||||||||||||||||||||||||||
(In thousands) | (Level 1) | (Level 2) | (Level 3) | Balance | (Level 1) | (Level 2) | (Level 3) | Balance | |||||||||||||||||||||||||
Foreign currency exchange futures contracts | $ | — | $ | 509 | $ | — | $ | 509 | $ | — | $ | (13 | ) | $ | — | $ | (13 | ) | |||||||||||||||
Schedule of Futures Contracts | ' | ||||||||||||||||||||||||||||||||
Details of futures contracts held were as follows: | |||||||||||||||||||||||||||||||||
Date Held | Type | Position Held | Notional Value | Forward Rate | Gain/(Loss) Recorded at Balance Sheet | Settlement Date | |||||||||||||||||||||||||||
(in millions) | Date | ||||||||||||||||||||||||||||||||
(in thousands)(1) | |||||||||||||||||||||||||||||||||
December 31, 2013 | USD/Euro | Euro | $ | 11 | 1.3782 | $ | (2 | ) | January 31, 2014 | ||||||||||||||||||||||||
December 31, 2013 | USD/Chinese Yuan Renminbi | Chinese Yuan Renminbi | $ | 15 | 6.2047 | $ | 358 | January 15, 2014 | |||||||||||||||||||||||||
December 31, 2013 | USD/Brazilian Real | USD | $ | 3 | 2.3442 | $ | 34 | January 17, 2014 | |||||||||||||||||||||||||
December 31, 2013 | USD/Brazilian Real | USD | $ | 2 | 2.2301 | $ | 119 | January 17, 2014 | |||||||||||||||||||||||||
December 31, 2012 | USD/Euro | Euro | $ | 5 | 1.3228 | $ | (13 | ) | January 18, 2013 | ||||||||||||||||||||||||
(1) | Gains on futures contracts are recorded in prepaid expenses and other current assets. Losses on futures contracts are recorded in other accrued expenses. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Summarized Quarterly Financial Data | ' | |||||||||||||||
Summarized quarterly financial data is presented below: | ||||||||||||||||
2013 | ||||||||||||||||
(In thousands, except per share amounts) | March 31, | June 30, | September 30, | December 31, | ||||||||||||
Net sales | $ | 114,722 | $ | 136,109 | $ | 142,389 | $ | 136,134 | ||||||||
Gross profit | 32,549 | 37,836 | 40,449 | 40,628 | ||||||||||||
Operating income | 3,895 | 9,976 | 10,471 | 7,812 | ||||||||||||
Net income | 2,946 | 5,841 | 8,623 | 5,553 | ||||||||||||
Earnings per share (1): | ||||||||||||||||
Basic | $ | 0.2 | $ | 0.39 | $ | 0.56 | $ | 0.36 | ||||||||
Diluted | $ | 0.19 | $ | 0.38 | $ | 0.55 | $ | 0.35 | ||||||||
Shares used in computing earnings per share: | ||||||||||||||||
Basic | 14,965 | 15,098 | 15,324 | 15,602 | ||||||||||||
Diluted | 15,225 | 15,419 | 15,743 | 16,011 | ||||||||||||
2012 | ||||||||||||||||
(In thousands, except per share amounts) | March 31, | June 30, | September 30, | December 31, | ||||||||||||
Net sales | $ | 103,732 | $ | 116,704 | $ | 124,871 | $ | 117,783 | ||||||||
Gross profit | 28,327 | 32,970 | 36,438 | 35,702 | ||||||||||||
Operating income | 2,312 | 6,466 | 9,534 | 7,890 | ||||||||||||
Net income | 1,632 | 5,153 | 6,850 | 2,918 | ||||||||||||
Earnings per share (1): | ||||||||||||||||
Basic | $ | 0.11 | $ | 0.35 | $ | 0.46 | $ | 0.19 | ||||||||
Diluted | $ | 0.11 | $ | 0.34 | $ | 0.45 | $ | 0.19 | ||||||||
Shares used in computing earnings per share: | ||||||||||||||||
Basic | 14,871 | 14,933 | 14,984 | 15,016 | ||||||||||||
Diluted | 15,108 | 15,048 | 15,099 | 15,180 | ||||||||||||
(1) | The earnings per common share calculations for each of the quarters were based upon the weighted average number of shares and share equivalents outstanding during each period, and the sum of the quarters may not be equal to the full year earnings per share amounts. |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Narrative (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Abstract] | ' | ' | ' |
Advertising costs | $1.20 | $1.30 | $1.20 |
Other shipping and handling costs | $11.30 | $9.20 | $9.70 |
Foreign currency exchange contracts term | '9 months | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Stock-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '1 year |
Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ' |
Capitalization threshold, minimum useful life | '1 year |
Individual assets | ' |
Property, Plant and Equipment [Line Items] | ' |
Capitalization threshold, minimum cost | 1,000 |
Assets purchased in bulk | ' |
Property, Plant and Equipment [Line Items] | ' |
Capitalization threshold, minimum cost | 5,000 |
Buildings | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '25 years |
Tooling and equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '2 years |
Tooling and equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '7 years |
Computer equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Computer equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '7 years |
Software | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '3 years |
Software | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Furniture and fixtures | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '5 years |
Furniture and fixtures | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '7 years |
Leasehold improvements | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '2 years |
Leasehold improvements | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life | '10 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible asset, estimated period of benefit | '1 year |
Maximum | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible asset, estimated period of benefit | '15 years |
Capitalized software development | Minimum | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible asset, estimated period of benefit | '1 year |
Capitalized software development | Maximum | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible asset, estimated period of benefit | '2 years |
Cash_and_Cash_Equivalents_Cash
Cash and Cash Equivalents Cash and Cash Equivalents - Geographic Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | $76,174 | $44,593 | $29,372 | $54,249 |
United States | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | 30,082 | 2,742 | ' | ' |
Asia | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | 34,627 | 27,317 | ' | ' |
Europe | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | 7,161 | 9,361 | ' | ' |
South America | ' | ' | ' | ' |
Cash and Cash Equivalents [Line Items] | ' | ' | ' | ' |
Total cash and cash equivalents | $4,304 | $5,173 | ' | ' |
Accounts_Receivable_Net_and_Re2
Accounts Receivable, Net and Revenue Concentrations - Accounts Receivable, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Accounts Receivable, Net, Current [Abstract] | ' | ' | ' | ' |
Trade receivables, gross | $94,325 | $90,056 | ' | ' |
Allowance for doubtful accounts | -478 | -322 | -1,021 | -878 |
Allowance for sales returns | -865 | -996 | ' | ' |
Net trade receivables | 92,982 | 88,738 | ' | ' |
Other | 2,426 | 2,310 | ' | ' |
Accounts receivable, net | $95,408 | $91,048 | ' | ' |
Accounts_Receivable_Net_and_Re3
Accounts Receivable, Net and Revenue Concentrations - Allowance for Doubtful Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Allowance for Doubtful Accounts | ' | ' | ' |
Balance at beginning of period | $322 | $1,021 | $878 |
Additions to costs and expenses | 190 | 73 | 277 |
(Write-offs)/FX effects | -34 | -772 | -134 |
Balance at end of period | $478 | $322 | $1,021 |
Accounts_Receivable_Net_and_Re4
Accounts Receivable, Net and Revenue Concentrations - Sales Returns (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Allowance for sales return | $0.50 | $0.60 |
Accounts_Receivable_Net_and_Re5
Accounts Receivable, Net and Revenue Concentrations - Revenue by Significant Customer (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $136,134 | $142,389 | $136,109 | $114,722 | $117,783 | $124,871 | $116,704 | $103,732 | $529,354 | $463,090 | $468,630 |
Sales | DIRECTV | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 82,679 | 78,325 | 57,371 |
Concentration risk | ' | ' | ' | ' | ' | ' | ' | ' | 15.60% | 16.90% | 12.20% |
Sales | Sony | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $48,483 |
Concentration risk | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | 10.30% |
Accounts_Receivable_Net_and_Re6
Accounts Receivable, Net and Revenue Concentrations - AR by Significant Customer (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, net | $95,408 | $91,048 |
Accounts receivable | DIRECTV | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable, net | $0 | $9,277 |
Concentration risk | 0.00% | 10.20% |
Inventories_Net_and_Significan2
Inventories, Net and Significant Suppliers - Inventories, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Inventory Disclosure [Abstract] | ' | ' | ' | ' |
Raw materials | $18,990 | $17,438 | ' | ' |
Components | 18,623 | 20,978 | ' | ' |
Work in process | 2,017 | 1,050 | ' | ' |
Finished goods | 59,393 | 46,939 | ' | ' |
Reserve for excess and obsolete inventory | -2,714 | -2,024 | -3,447 | -2,135 |
Inventories, net | $96,309 | $84,381 | ' | ' |
Inventories_Net_and_Significan3
Inventories, Net and Significant Suppliers - Inventory Reserves (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Schedule of Reserve for Excess and Obsolete Inventory | ' | ' | ' | |||
Balance at beginning of period | $2,024,000 | $3,447,000 | $2,135,000 | |||
Additions charged to costs and expenses | 3,387,000 | [1] | 2,511,000 | [1] | 4,568,000 | [1] |
Sell through | -365,000 | [2] | -1,166,000 | [2] | -1,295,000 | [2] |
Write-offs/FX effects | -2,332,000 | -2,768,000 | -1,961,000 | |||
Balance at end of period | 2,714,000 | 2,024,000 | 3,447,000 | |||
Inventory scrapped during production | $300,000 | $500,000 | $1,000,000 | |||
[1] | The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.3 million, $0.5 million, and $1.0 million for the years ended DecemberB 31, 2013, 2012, and 2011, respectively. These amounts are production waste and are not included in managementbs reserve for excess and obsolete inventory. | |||||
[2] | These amounts represent the reversal of reserves associated with inventory items that were sold during the period. Sell through is the result of differences between our judgment concerning the saleability of inventory items during the excess and obsolete inventory review process and our subsequent experience. |
Inventories_Net_and_Significan4
Inventories, Net and Significant Suppliers - Significant Suppliers (Details) (Supplier Concentration Risk, Cost of goods, Samsung, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Supplier Concentration Risk | Cost of goods | Samsung | ' |
Concentration Risk [Line Items] | ' |
Inventory purchases | $29.10 |
Concentration risk | 10.20% |
Inventories_Net_and_Significan5
Inventories, Net and Significant Suppliers - Related Party Vendor (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Senior Vice President of Manufacturing | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Ownership percentage in third party by executive | 40.00% | ' | ' |
Supplier Concentration Risk | Cost of goods | Related party vendor | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party purchases | $9,846 | $8,845 | $8,677 |
Concentration risk | 3.50% | 3.80% | 3.00% |
Supplier Concentration Risk | Accounts payable | Related party vendor | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party accounts payable | $2,439 | $1,815 | ' |
Concentration risk | 4.20% | 3.00% | ' |
Property_Plant_and_Equipment_N2
Property, Plant, and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | $162,430,000 | $144,787,000 | ' |
Accumulated depreciation | -87,703,000 | -74,766,000 | ' |
Property, plant and equipment, net, excluding contruction in progress | 74,727,000 | 70,021,000 | ' |
Construction in progress | 843,000 | 7,685,000 | ' |
Total property, plant, and equipment, net | 75,570,000 | 77,706,000 | ' |
Depreciation expense | 14,200,000 | 13,400,000 | 13,100,000 |
Buildings | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 51,901,000 | 44,607,000 | ' |
Construction in progress | 0 | 5,639,000 | ' |
Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 48,859,000 | 44,168,000 | ' |
Construction in progress | 158,000 | 594,000 | ' |
Tooling | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 26,495,000 | 24,496,000 | ' |
Construction in progress | 134,000 | 395,000 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 17,749,000 | 16,153,000 | ' |
Construction in progress | 104,000 | 285,000 | ' |
Software | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 8,504,000 | 7,373,000 | ' |
Construction in progress | 372,000 | 742,000 | ' |
Furniture and fixtures | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 6,231,000 | 5,360,000 | ' |
Computer equipment | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant and equipment, gross | 2,691,000 | 2,630,000 | ' |
Other | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Construction in progress | 75,000 | 30,000 | ' |
People's Republic of China | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Total property, plant, and equipment, net | $68,200,000 | $69,200,000 | ' |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net - Goodwill (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | ||
Schedule of Goodwill | ' | ' | ||
Goodwill, Opening balance | $30,890 | $30,820 | ||
Goodwill adjustments | 110 | [1] | 70 | [1] |
Goodwill, Closing balance | $31,000 | $30,890 | ||
[1] | Adjustments were the result of fluctuations in the foreign currency exchange rate used to translate balances into U.S. Dollars. |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net - Finite-Lived Intangibles (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | $42,338,000 | $42,530,000 | ' | ||
Accumulated Amortization | -15,375,000 | -12,695,000 | ' | ||
Intangible assets, net | 26,963,000 | 29,835,000 | ' | ||
Finite-lived intangible assets, fully amortized, gross | 6,600,000 | 9,100,000 | ' | ||
Amortization expense | 4,127,000 | 4,174,000 | 4,246,000 | ||
Minimum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '1 year | ' | ' | ||
Maximum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '15 years | ' | ' | ||
Cost of sales | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Amortization expense | 213,000 | 312,000 | 451,000 | ||
Selling, general and administrative | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Amortization expense | 3,914,000 | 3,862,000 | 3,795,000 | ||
Distribution rights | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | 395,000 | [1] | 378,000 | [1] | ' |
Accumulated Amortization | -52,000 | [1] | -50,000 | [1] | ' |
Intangible assets, net | 343,000 | [1] | 328,000 | [1] | ' |
Intangible asset, estimated period of benefit | '10 years | ' | ' | ||
Patents | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | 8,879,000 | [1] | 8,113,000 | [1] | ' |
Accumulated Amortization | -4,251,000 | [1] | -3,847,000 | [1] | ' |
Intangible assets, net | 4,628,000 | [1] | 4,266,000 | [1] | ' |
Intangible asset, estimated period of benefit | '10 years | ' | ' | ||
Trademark and trade names | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | 2,841,000 | [1] | 2,841,000 | [1] | ' |
Accumulated Amortization | -1,411,000 | [1] | -1,127,000 | [1] | ' |
Intangible assets, net | 1,430,000 | [1] | 1,714,000 | [1] | ' |
Intangible asset, estimated period of benefit | '10 years | ' | ' | ||
Developed and core technology | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | 3,506,000 | [1] | 3,507,000 | [1] | ' |
Accumulated Amortization | -1,140,000 | [1] | -906,000 | [1] | ' |
Intangible assets, net | 2,366,000 | [1] | 2,601,000 | [1] | ' |
Developed and core technology | Minimum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '5 years | ' | ' | ||
Developed and core technology | Maximum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '15 years | ' | ' | ||
Capitalized software development costs | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | 311,000 | [1] | 1,276,000 | [1] | ' |
Accumulated Amortization | -133,000 | [1] | -913,000 | [1] | ' |
Intangible assets, net | 178,000 | [1] | 363,000 | [1] | ' |
Capitalized software development costs | Minimum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '1 year | ' | ' | ||
Capitalized software development costs | Maximum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '2 years | ' | ' | ||
Customer relationships | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Gross | 26,406,000 | [1] | 26,415,000 | [1] | ' |
Accumulated Amortization | -8,388,000 | [1] | -5,852,000 | [1] | ' |
Intangible assets, net | $18,018,000 | [1] | $20,563,000 | [1] | ' |
Customer relationships | Minimum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '10 years | ' | ' | ||
Customer relationships | Maximum | ' | ' | ' | ||
Finite-Lived Intangible Assets, Net [Abstract] | ' | ' | ' | ||
Intangible asset, estimated period of benefit | '15 years | ' | ' | ||
[1] | This table excludes the gross value of fully amortized intangible assets totaling $6.6 million and $9.1 million on DecemberB 31, 2013 and 2012, respectively. |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net - Future Amortization Expense (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Estimated Future Amortization expense | ' | ' |
2014 | $4,088 | ' |
2015 | 3,924 | ' |
2016 | 3,886 | ' |
2017 | 3,857 | ' |
2018 | 3,847 | ' |
Thereafter | 7,361 | ' |
Intangible assets, net | $26,963 | $29,835 |
Remaining weighted average amortization period | '7 years 1 month | ' |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 02, 2012 | Dec. 31, 2013 | Oct. 02, 2012 | Oct. 02, 2012 | Oct. 02, 2012 | Oct. 02, 2012 | Oct. 02, 2012 | Oct. 02, 2012 | |
Previous line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | Line of credit | ||||
US Bank | US Bank | US Bank | US Bank | US Bank | |||||||
LIBOR | LIBOR | Base rate | Base rate | Enson | |||||||
Minimum | Maximum | Minimum | Maximum | ||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | $20,000,000 | ' | $55,000,000 | ' | ' | ' | ' | ' |
Letter of credit outstanding amount | ' | ' | ' | ' | 13,000 | ' | ' | ' | ' | ' | ' |
Subsidiary ownership percentage securing facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 65.00% |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | 1.25% | 1.75% | -0.25% | 0.25% | ' |
Total interest expense on borrowings | $23,000 | $200,000 | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Pretax_Income_Det
Income Taxes - Pre-tax Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Domestic operations | $2,425 | ($2,203) | $3,279 |
Foreign operations | 26,611 | 26,841 | 21,952 |
Income before provision for income taxes | $29,036 | $24,638 | $25,231 |
Income_Taxes_Provision_Details
Income Taxes - Provision (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current tax expense: | ' | ' | ' |
U.S. federal | $971 | ($891) | $1,319 |
State and local | 254 | -75 | 12 |
Foreign | 6,426 | 6,464 | 5,122 |
Total current | 7,651 | 5,498 | 6,453 |
Deferred tax (benefit) expense: | ' | ' | ' |
U.S. federal | -101 | -882 | 153 |
State and local | -67 | 3,630 | -409 |
Foreign | -1,410 | -161 | -912 |
Total deferred | -1,578 | 2,587 | -1,168 |
Total provision for income taxes | $6,073 | $8,085 | $5,285 |
Income_Taxes_Net_Deferred_Tax_
Income Taxes - Net Deferred Tax Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Inventory reserves | $1,582 | $1,017 |
Capitalized research costs | 97 | 106 |
Capitalized inventory costs | 920 | 760 |
Net operating losses | 1,101 | 1,339 |
Acquired intangible assets | 49 | 10 |
Accrued liabilities | 4,215 | 3,785 |
Income tax credits | 5,982 | 4,321 |
Stock-based compensation | 2,260 | 3,525 |
Total deferred tax assets | 16,206 | 14,863 |
Deferred tax liability: | ' | ' |
Depreciation | -4,679 | -5,132 |
Allowance for doubtful accounts | -80 | -41 |
Amortization of intangible assets | -2,583 | -2,858 |
Other | -1,600 | -1,922 |
Total deferred tax liabilities | -8,942 | -9,953 |
Net deferred tax assets before valuation allowance | 7,264 | 4,910 |
Less: Valuation allowance | -4,832 | -4,059 |
Net deferred tax assets | $2,432 | $851 |
Income_Taxes_Income_Tax_Reconc
Income Taxes - Income Tax Reconciliation (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' |
Tax provision at statutory U.S. rate | $9,872 | $8,377 | $8,578 |
Increase (decrease) in tax provision resulting from: | ' | ' | ' |
State and local taxes, net | -397 | -246 | -262 |
Foreign tax rate differential | -3,804 | -3,488 | -3,528 |
Nondeductible items | 989 | 388 | 407 |
Federal research and development credits | -1,149 | -369 | -503 |
Change in deductibility of social insurance | 214 | 617 | 0 |
Valuation allowance | 520 | 2,592 | 0 |
Other | -172 | 214 | 593 |
Total provision for income taxes | $6,073 | $8,085 | $5,285 |
Income_Taxes_Tax_Credit_Carryf
Income Taxes - Tax Credit Carryforward (Details) (Research & Experimentation, USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Federal | ' |
Tax Credit Carryforward [Line Items] | ' |
Tax credit carryforwards | $0.60 |
State | ' |
Tax Credit Carryforward [Line Items] | ' |
Tax credit carryforwards | $6.20 |
Income_Taxes_Net_Operating_Los
Income Taxes - Net Operating Loss Carryforwards (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Foreign | ' |
Net Operating Loss Carryforwards [Line Items] | ' |
Net operating losses | $0.20 |
SimpleDevices | Federal | ' |
Net Operating Loss Carryforwards [Line Items] | ' |
Net operating losses | 2.3 |
Operating losses annual limitation | 0.6 |
SimpleDevices | State | ' |
Net Operating Loss Carryforwards [Line Items] | ' |
Net operating losses | $4.10 |
Income_Taxes_Valuation_Allowan
Income Taxes - Valuation Allowance (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Allowance [Line Items] | ' | ' |
Deferred tax assets, valuation allowance | $4,832,000 | $4,059,000 |
State | Research & Experimentation | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Deferred tax assets, valuation allowance | 4,700,000 | ' |
People's Republic of China | ' | ' |
Valuation Allowance [Line Items] | ' | ' |
Period of recognition for deductible expenses or deferred tax assets | '5 years | ' |
Deferred other tax expense | $200,000 | $600,000 |
Income_Taxes_Other_Narrative_D
Income Taxes - Other Narrative (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Tax benefit from the exercises of non-qualified stock options and vesting of restricted stock under our stock-based incentive plans | $900,000 | ($100,000) | $300,000 |
Provision for undistributed earnings of our foreign subsidiaries | $0 | ' | ' |
Income_Taxes_Uncertain_Tax_Pos
Income Taxes - Uncertain Tax Positions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Interest and penalties | $100,000 | $100,000 | $200,000 |
Schedule reconciliation of gross unrecognized tax benefits | ' | ' | ' |
Beginning balance | 5,006,000 | 5,387,000 | 5,411,000 |
Additions as a result of tax provisions taken during the current year | 357,000 | 261,000 | 138,000 |
Subtractions as a result of tax provisions taken during the prior year | -126,000 | -346,000 | -67,000 |
Foreign currency translation | 45,000 | 0 | 133,000 |
Lapse in statute of limitations | -63,000 | -296,000 | -224,000 |
Settlements | -1,729,000 | 0 | -15,000 |
Acquisition | 0 | 0 | 11,000 |
Ending balance | 3,490,000 | 5,006,000 | 5,387,000 |
Unrecognized tax benefits that would impact effective tax rate | 3,200,000 | 4,700,000 | ' |
Decrease in unrecognized tax benefits is reasonably possible in next 12 months | 200,000 | ' | ' |
Interest on income taxes accrued | 100,000 | ' | ' |
Unrecognized tax benefits including interest and penalties | 3,600,000 | 5,100,000 | ' |
Unrecognized tax benefits, income tax interest and penalties accrued, current | 1,500,000 | ' | ' |
Unrecognized tax benefits, income tax penalties and interest accrued, noncurrent | $2,100,000 | ' | ' |
Accrued_Compensation_Details
Accrued Compensation (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
Components of Accrued Compensation | ' | ' | ||
Accrued social insurance | $20,492,000 | [1] | $19,842,000 | [1] |
Accrued salary/wages | 5,324,000 | 4,862,000 | ||
Accrued vacation/holiday | 2,113,000 | 2,048,000 | ||
Accrued bonus | 7,186,000 | [2] | 4,181,000 | [2] |
Accrued commission | 1,350,000 | 478,000 | ||
Accrued medical insurance claims | 201,000 | 643,000 | ||
Other accrued compensation | 1,651,000 | 1,344,000 | ||
Total accrued compensation | 38,317,000 | 33,398,000 | ||
Accrued salaries - 13th month salaries | $600,000 | $500,000 | ||
[1] | Effective JanuaryB 1, 2008, the Chinese Labor Contract Law was enacted in the PRC. This law mandated that PRC employers remit the applicable social insurance payments to their local government. Social insurance is comprised of various components such as pension, medical insurance, job injury insurance, unemployment insurance, and a housing assistance fund, and is administered in a manner similar to social security in the United States. This amount represents our estimate of the amounts due to the PRC government for social insurance on DecemberB 31, 2013 and 2012. | |||
[2] | Accrued bonus includes an accrual for an extra month of salary ("13th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13th month salary is paid to these employees if they remain employed with us through DecemberB 31st. The total accrued for the 13th month salary was $0.6 million and $0.5 million at DecemberB 31, 2013 and 2012, respectively. |
Other_Accrued_Expenses_Details
Other Accrued Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | ||
In Thousands, unless otherwise specified | ||||||
Payables and Accruals [Abstract] | ' | ' | ' | ' | ||
Advertising and marketing | $238 | $501 | ' | ' | ||
Duties | 797 | 584 | ' | ' | ||
Freight | 1,374 | 1,666 | ' | ' | ||
Product development | 614 | 569 | ' | ' | ||
Product warranty claim costs | 41 | 404 | 6 | 71 | ||
Professional fees | 1,757 | 1,234 | ' | ' | ||
Sales taxes and VAT | 1,637 | 1,979 | ' | ' | ||
Third-party commissions | 511 | 337 | ' | ' | ||
Tooling | 758 | [1] | 221 | [1] | ' | ' |
Utilities | 311 | 316 | ' | ' | ||
Other | 3,191 | 2,833 | ' | ' | ||
Total other accrued expenses | $11,229 | $10,644 | ' | ' | ||
[1] | The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Leases [Abstract] | ' | ' | ' |
Rent expense | $3,500,000 | $3,700,000 | $3,200,000 |
Liability related to rent escalations | 1,000,000 | 500,000 | ' |
Allowance for moving expenses and tenant improvements | 1,500,000 | ' | ' |
Future minimum non-cancelable operating lease payments | ' | ' | ' |
2014 | 2,699,000 | ' | ' |
2015 | 2,117,000 | ' | ' |
2016 | 1,803,000 | ' | ' |
2017 | 1,415,000 | ' | ' |
2018 | 1,248,000 | ' | ' |
Thereafter | 3,423,000 | ' | ' |
Total operating lease commitments | $12,705,000 | ' | ' |
Property subject to rent escalations | Minimum | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Term of lease | '60 months | ' | ' |
Property subject to rent escalations | Maximum | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Term of lease | '125 months | ' | ' |
Corporate headquarters | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Term of lease | '125 months | ' | ' |
Leases_Prepaid_Leases_Details
Leases - Prepaid Leases (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
People's Republic of China | Guangzhou | Guangzhou | Yangzhou | Yangzhou | |||
factory | Buildings on Prepaid Land | Buildings on Prepaid Land | |||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of factories | ' | ' | 2 | ' | ' | ' | ' |
Net book value of prepaid lease | ' | ' | ' | $1,500,000 | ' | $2,900,000 | ' |
Prepaid lease, estimated remaining life | ' | ' | ' | '21 years | ' | '45 years | ' |
Net book value of asset | $75,570,000 | $77,706,000 | ' | ' | $13,700,000 | ' | $24,800,000 |
Asset, remaining useful life | ' | ' | ' | ' | '18 years | ' | '24 years |
Commitments_and_Contingencies_1
Commitments and Contingencies - Fair Price Provisions (Details) | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ' |
Percentage of voting stock required for approval | 66.66% |
Commitments_and_Contingencies_2
Commitments and Contingencies - Warranty (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in the liability for product warranty claim costs | ' | ' | ' |
Balance at beginning of period | $404 | $6 | $71 |
Accruals for warranties issued during the period | 416 | 398 | -27 |
Settlements (in cash or in kind) during the period | -779 | 0 | -38 |
Balance at end of period | $41 | $404 | $6 |
Commitments_and_Contingencies_3
Commitments and Contingencies - Litigation (Details) (USD $) | 0 Months Ended | 24 Months Ended | 0 Months Ended | ||||
In Millions, unless otherwise specified | Nov. 03, 2011 | Jul. 15, 2011 | Jun. 30, 2012 | Jun. 28, 2013 | Feb. 01, 2013 | Mar. 02, 2012 | Sep. 23, 2013 |
Patent Counterclaim Lawsuit Against Universal Electronics | Positive Outcome of Litigation | Positive Outcome of Litigation | Positive Outcome of Litigation | Positive Outcome of Litigation | Positive Outcome of Litigation | Positive Outcome of Litigation | |
patent | Patent Lawsuit Against Logitech, Inc., Logitech International S.A. and Logitech Europe S.A. | Patent Lawsuit Against Logitech, Inc., Logitech International S.A. and Logitech Europe S.A. | Patent Lawsuit Against Universal Remote Control | Patent Lawsuit Against Universal Remote Control | Patent Lawsuit Against Universal Remote Control | Patent Lawsuit Against Peel Technologies, Inc. | |
patent | patent | claim | patent | patent | |||
patent | |||||||
Gain Contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Gain contingency, patents allegedly infringed upon, number | ' | 17 | ' | 9 | 4 | 4 | 5 |
Loss contingency, patents allegedly infringed upon, number | 5 | ' | ' | ' | ' | ' | ' |
Royalties settlement amount | ' | ' | $2 | ' | ' | ' | ' |
Gain contingency, claims deemed invalid, number | ' | ' | ' | ' | 4 | ' | ' |
Gain contingency, claims against defendant, number | ' | ' | ' | ' | 24 | ' | ' |
Gain contingency, patents found not infringed upon, number | ' | ' | ' | ' | 1 | ' | ' |
Commitments_and_Contingencies_4
Commitments and Contingencies - Defined Benefit Plan (Details) (India subsidiary) | 12 Months Ended |
Dec. 31, 2013 | |
India subsidiary | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
Percentage of employees eligible for benefits | 35.00% |
Minimum service period of employees to be eligible under plan | '5 years |
Number of days salary payable under termination, resignation, or retirement | '15 days |
Treasury_Stock_Details
Treasury Stock (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Shares repurchased (in shares) | 153,000 | 201,000 | 457,000 |
Cost of shares repurchased | $3,607 | $3,451 | $9,785 |
Treasury stock reissued (in shares) | 30,000 | 37,500 | 30,000 |
Shares available for repurchase (in shares) | 933,456 | ' | ' |
Business_Segment_and_Foreign_O2
Business Segment and Foreign Operations - Net Sales (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | $136,134 | $142,389 | $136,109 | $114,722 | $117,783 | $124,871 | $116,704 | $103,732 | $529,354 | $463,090 | $468,630 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 195,308 | 165,209 | 137,799 |
Asia (excluding PRC) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 107,886 | 108,979 | 121,089 |
People's Republic of China | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 89,918 | 76,873 | 106,597 |
Europe | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 72,852 | 61,617 | 56,448 |
Latin America | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | 35,179 | 28,677 | 17,585 |
All Other Countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule of Revenues from Geographical Segments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net sales | ' | ' | ' | ' | ' | ' | ' | ' | $28,211 | $21,735 | $29,112 |
Business_Segment_and_Foreign_O3
Business Segment and Foreign Operations - Long-lived Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived tangible assets | $80,849 | $83,067 |
United States | ' | ' |
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived tangible assets | 4,662 | 5,541 |
People's Republic of China | ' | ' |
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived tangible assets | 72,957 | 73,804 |
All Other Countries | ' | ' |
Long-lived Assets from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Long-lived tangible assets | $3,230 | $3,722 |
StockBased_Compensation_Expens
Stock-Based Compensation - Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation | $5,342 | $4,575 | $4,511 |
Income tax benefit | 1,575 | 1,488 | 1,505 |
Cost of sales | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation | 1 | 0 | 15 |
Research and development | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation | 226 | 223 | 267 |
Employees | Selling, general and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation | 4,494 | 3,733 | 3,499 |
Outside directors | Selling, general and administrative | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation | $621 | $619 | $730 |
StockBased_Compensation_Valuat
Stock-Based Compensation - Valuation Assumptions (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | |||
Weighted average fair value of grants | $9.26 | [1] | $9.57 | [1] | $13.74 | [1] |
Risk-free interest rate | 0.95% | 0.86% | 2.29% | |||
Expected volatility | 53.39% | 55.22% | 52.25% | |||
Expected life in years | '5 years 2 months 12 days | '5 years 1 month 24 days | '5 years 0 months 11 days | |||
[1] | The weighted average fair value of grants was calculated utilizing the stock options granted during each respective period. |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Options and Restricted Stock Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 12, 2014 | Feb. 12, 2014 | Feb. 12, 2014 | Feb. 12, 2014 | Feb. 12, 2014 | Feb. 12, 2014 | Feb. 12, 2014 | |
Minimum | Maximum | Stock options | Stock options | Stock options | Stock options | Stock options | Non-vested restricted stock award | Non-vested restricted stock award | Non-vested restricted stock award | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | Subsequent event | ||||
Minimum | Maximum | Minimum | Maximum | Certain Executive Employees | Stock options | Stock options | Stock options | Non-vested restricted stock award | Non-vested restricted stock award | Non-vested restricted stock award | ||||||||||
Certain Executive Employees | Certain Executive Employees | Certain Executive Employees | Certain Executive Employees | Certain Executive Employees | Certain Executive Employees | |||||||||||||||
Quarterly Vesting | Percent Vesting on February 12, 2015 | Quarterly Vesting | Percent Vesting on February 12, 2015 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | ' | ' | '1 year | '4 years | ' | ' | ' | '3 years | '4 years | ' | '3 years | '4 years | ' | '3 years | ' | ' | '3 years | ' | ' |
Modification expense | ' | ' | ' | ' | ' | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from stock options exercised | 12,371,000 | 2,204,000 | 1,677,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit from stock options exercised | 2,300,000 | 200,000 | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized pre-tax stock-based compensation expense | ' | ' | ' | ' | ' | 2,100,000 | ' | ' | ' | ' | 6,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized pre-tax stock-based compensation expense, period for recognition | ' | ' | ' | ' | ' | '1 year 9 months 18 days | ' | ' | ' | ' | '2 years 2 months 12 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted (in shares) | 201,000 | 153,000 | 108,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,430 | ' | ' | ' | ' | ' | ' |
Options grant date fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' |
Award vesting rights percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.33% | 33.33% | ' | 8.33% | 33.33% |
Restricted stock granted (in shares) | 196,000 | 205,000 | 176,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51,595 | ' | ' |
Restricted stock, grant date fair value (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,800,000 | ' | ' |
StockBased_Compensation_Option
Stock-Based Compensation - Option Activity (Details) (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Number of Options | ' | ' | ' | |||
Outstanding at beginning of the year | 1,412 | 1,502 | 1,525 | |||
Granted | 201 | 153 | 108 | |||
Exercised | -679 | -189 | -102 | |||
Forfeited/canceled/expired | -10 | -54 | -29 | |||
Outstanding at end of the year | 924 | 1,412 | 1,502 | |||
Vested and expected to vest at the end of the year | 921 | 1,409 | 1,494 | |||
Exercisable at the end of the year | 671 | 1,181 | 1,229 | |||
Weighted-Average Exercise Price | ' | ' | ' | |||
Outstanding at beginning of the year | $20.56 | $19.53 | $18.78 | |||
Granted | $19.68 | $19.92 | $28.97 | |||
Exercised | $18.22 | $11.62 | $16.51 | |||
Forfeited/canceled/expired | $24.75 | $21.48 | $25.53 | |||
Outstanding at end of the year | $22.04 | $20.56 | $19.53 | |||
Vested and expected to vest at the end of the year | $22.05 | $20.56 | $19.51 | |||
Exercisable at the end of the year | $22.62 | $20.24 | $18.71 | |||
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | ' | ' | ' | |||
Outstanding at beginning of the year | '6 years 1 month 3 days | '4 years 10 months 28 days | '4 years 9 months 22 days | |||
Vested and expected to vest at the end of the year | '6 years 0 months 28 days | '4 years 10 months 24 days | '4 years 9 months 11 days | |||
Exercisable at the end of the year | '5 years 1 month 20 days | '4 years 3 months | '4 years 0 months 18 days | |||
Exercised | $8,355 | $1,155 | $820 | |||
Outstanding at end of the year | 14,854 | [1] | 2,452 | [1] | 1,972 | [1] |
Vested and expected to vest at the end of the year | 14,791 | [1] | 2,446 | [1] | 1,971 | [1] |
Exercisable at the end of the year | $10,388 | [1] | $2,347 | [1] | $1,889 | [1] |
[1] | The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2013, 2012, and 2011 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on DecemberB 31, 2013, 2012, and 2011. This amount will change based on the fair market value of our stock. |
StockBased_Compensation_Exerci
Stock-Based Compensation - Exercise Price Range (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Options Outstanding - Number Outstanding | 924 | 1,412 | 1,502 | 1,525 |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | '6 years 1 month 3 days | '4 years 10 months 28 days | '4 years 9 months 22 days | ' |
Options Outstanding - Weighted-Average Exercise Price | $22.04 | $20.56 | $19.53 | $18.78 |
Options Exercisable - Number Exercisable | 671 | 1,181 | 1,229 | ' |
Options Exercisable - Weighted-Average Exercise Price | $22.62 | $20.24 | $18.71 | ' |
$12.58 to $14.92 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Range Limit | $12.58 | ' | ' | ' |
Range of Exercise Prices, Upper Range Limit | $14.92 | ' | ' | ' |
Options Outstanding - Number Outstanding | 20 | ' | ' | ' |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | '4 years 2 months 19 days | ' | ' | ' |
Options Outstanding - Weighted-Average Exercise Price | $13.66 | ' | ' | ' |
Options Exercisable - Number Exercisable | 16 | ' | ' | ' |
Options Exercisable - Weighted-Average Exercise Price | $13.36 | ' | ' | ' |
16.20 to 17.62 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Range Limit | $16.20 | ' | ' | ' |
Range of Exercise Prices, Upper Range Limit | $17.62 | ' | ' | ' |
Options Outstanding - Number Outstanding | 125 | ' | ' | ' |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | '3 years 4 months 2 days | ' | ' | ' |
Options Outstanding - Weighted-Average Exercise Price | $16.83 | ' | ' | ' |
Options Exercisable - Number Exercisable | 125 | ' | ' | ' |
Options Exercisable - Weighted-Average Exercise Price | $16.83 | ' | ' | ' |
18.04 to 21.95 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Range Limit | $18.04 | ' | ' | ' |
Range of Exercise Prices, Upper Range Limit | $21.95 | ' | ' | ' |
Options Outstanding - Number Outstanding | 460 | ' | ' | ' |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | '7 years 5 months 19 days | ' | ' | ' |
Options Outstanding - Weighted-Average Exercise Price | $20.05 | ' | ' | ' |
Options Exercisable - Number Exercisable | 249 | ' | ' | ' |
Options Exercisable - Weighted-Average Exercise Price | $20.43 | ' | ' | ' |
23.15 to 29.25 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Range Limit | $23.15 | ' | ' | ' |
Range of Exercise Prices, Upper Range Limit | $29.25 | ' | ' | ' |
Options Outstanding - Number Outstanding | 312 | ' | ' | ' |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | '5 years 3 months 25 days | ' | ' | ' |
Options Outstanding - Weighted-Average Exercise Price | $27.32 | ' | ' | ' |
Options Exercisable - Number Exercisable | 274 | ' | ' | ' |
Options Exercisable - Weighted-Average Exercise Price | $27.51 | ' | ' | ' |
32.40 to 35.35 | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' | ' |
Range of Exercise Prices, Lower Range Limit | $32.40 | ' | ' | ' |
Range of Exercise Prices, Upper Range Limit | $35.35 | ' | ' | ' |
Options Outstanding - Number Outstanding | 7 | ' | ' | ' |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | '3 years 11 months 8 days | ' | ' | ' |
Options Outstanding - Weighted-Average Exercise Price | $34.51 | ' | ' | ' |
Options Exercisable - Number Exercisable | 7 | ' | ' | ' |
Options Exercisable - Weighted-Average Exercise Price | $34.51 | ' | ' | ' |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Shares Granted | ' | ' | ' |
Non-vested at beginning of period | 270 | 205 | 195 |
Shares granted (in shares) | 196 | 205 | 176 |
Shares Vested | -178 | -133 | -162 |
Shares Forfeited | -3 | -7 | -4 |
Non-vested at end of period | 285 | 270 | 205 |
Weighted-Average Grant Date Fair Value | ' | ' | ' |
Weighted-Average Grant Date Fair Value Non-vested at beginning of period | $18.72 | $24.43 | $17.30 |
Weighted-Average Grant Date Fair Value Granted | $28.86 | $15.22 | $25.76 |
Weighted-Average Grant Date Fair Value Vested | $20.44 | $21.91 | $17.53 |
Weighted-Average Grant Date Fair Value Forfeited | $15.49 | $23.11 | $16.24 |
Weighted-Average Grant Date Fair Value Non-vested at end of period | $24.64 | $18.72 | $24.43 |
StockBased_Compensation_Inform
Stock-Based Compensation - Information by Plan (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Term of plans / awards | '10 years |
Remaining Shares Available for Grant Under the Plan (in shares) | 219,639 |
Outstanding Shares Granted Under the Plan (in shares) | 1,194,585 |
Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '1 year |
Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Stock options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Term of plans / awards | '10 years |
Stock options | Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '3 years |
Stock options | Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Stock appreciation rights and performance stock units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Awards granted to date (in shares) | 0 |
Non-vested restricted stock award | Minimum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '3 years |
Non-vested restricted stock award | Maximum | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Vesting period | '4 years |
1998 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Initial Shares Available for Grant Under the Plan (in shares) | 630,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 0 |
Outstanding Shares Granted Under the Plan (in shares) | 5,000 |
1999A Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Initial Shares Available for Grant Under the Plan (in shares) | 1,000,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 0 |
Outstanding Shares Granted Under the Plan (in shares) | 28,750 |
2002 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Initial Shares Available for Grant Under the Plan (in shares) | 1,000,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 0 |
Outstanding Shares Granted Under the Plan (in shares) | 28,730 |
2003 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Initial Shares Available for Grant Under the Plan (in shares) | 1,000,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 0 |
Outstanding Shares Granted Under the Plan (in shares) | 180,963 |
2006 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Initial Shares Available for Grant Under the Plan (in shares) | 1,000,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 3,670 |
Outstanding Shares Granted Under the Plan (in shares) | 356,606 |
2010 Stock Incentive Plan | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Initial Shares Available for Grant Under the Plan (in shares) | 1,000,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 215,969 |
Outstanding Shares Granted Under the Plan (in shares) | 594,536 |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other Income and Expenses [Abstract] | ' | ' | ' | |||
Net gain (loss) on foreign currency exchange contracts | $888 | [1] | $35 | [1] | ($271) | [1] |
Net gain (loss) on foreign currency exchange transactions | -4,155 | -1,721 | -1,141 | |||
Other income | 98 | 273 | 337 | |||
Other income (expense), net | ($3,169) | ($1,413) | ($1,075) | |||
[1] | This represents the gains and (losses) incurred on foreign currency hedging derivatives (see Note 19 for further details). |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
BASIC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income | $5,553 | $8,623 | $5,841 | $2,946 | $2,918 | $6,850 | $5,153 | $1,632 | $22,963 | $16,553 | $19,946 | ||||||||
Weighted-average common shares outstanding (in shares) | 15,602 | 15,324 | 15,098 | 14,965 | 15,016 | 14,984 | 14,933 | 14,871 | 15,248 | 14,952 | 14,912 | ||||||||
Basic earnings per share (in dollars per share) | $0.36 | [1] | $0.56 | [1] | $0.39 | [1] | $0.20 | [1] | $0.19 | [1] | $0.46 | [1] | $0.35 | [1] | $0.11 | [1] | $1.51 | $1.11 | $1.34 |
DILUTED | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income | $5,553 | $8,623 | $5,841 | $2,946 | $2,918 | $6,850 | $5,153 | $1,632 | $22,963 | $16,553 | $19,946 | ||||||||
Weighted-average common shares outstanding (in shares) | 15,602 | 15,324 | 15,098 | 14,965 | 15,016 | 14,984 | 14,933 | 14,871 | 15,248 | 14,952 | 14,912 | ||||||||
Dilutive effect of stock options and restricted stock (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 353 | 158 | 301 | ||||||||
Weighted-average common shares outstanding on a diluted basis (in shares) | 16,011 | 15,743 | 15,419 | 15,225 | 15,180 | 15,099 | 15,048 | 15,108 | 15,601 | 15,110 | 15,213 | ||||||||
Diluted earnings per share (in dollars per share) | $0.35 | [1] | $0.55 | [1] | $0.38 | [1] | $0.19 | [1] | $0.19 | [1] | $0.45 | [1] | $0.34 | [1] | $0.11 | [1] | $1.47 | $1.10 | $1.31 |
[1] | The earnings per common share calculations for each of the quarters were based upon the weighted average number of shares and share equivalents outstanding during each period, and the sum of the quarters may not be equal to the full year earnings per share amounts. |
Earnings_Per_Share_Antidilutiv
Earnings Per Share - Antidilutive Shares (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stock options | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Stock options and restricted stock excluded in computation of diluted earning per share | 366 | 1,038 | 593 |
Restricted stock shares | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Stock options and restricted stock excluded in computation of diluted earning per share | 18 | 166 | 120 |
Derivatives_Fair_Value_Details
Derivatives - Fair Value (Details) (Fair value measurements, recurring, Foreign currency exchange futures contracts, Not designated as hedging instrument, USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
(Level 1) | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange futures contracts fair value | $0 | $0 |
(Level 2) | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange futures contracts fair value | 509 | -13 |
(Level 3) | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange futures contracts fair value | 0 | 0 |
Estimate of fair value | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Foreign currency exchange futures contracts fair value | $509 | ($13) |
Derivatives_Narrative_Details
Derivatives - Narrative (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Foreign currency exchange contracts term | '9 months | ' | ' | |||
Net gain (loss) on foreign currency exchange contracts | $888 | [1] | $35 | [1] | ($271) | [1] |
Not designated as hedging instrument | Foreign currency exchange futures contracts | Other Income (Expense), Net [Member] | ' | ' | ' | |||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | |||
Net gain (loss) on foreign currency exchange contracts | $900 | [1] | $35 | ($300) | ||
[1] | This represents the gains and (losses) incurred on foreign currency hedging derivatives (see Note 19 for further details). |
Derivatives_Contracts_Held_Det
Derivatives - Contracts Held (Details) (Not designated as hedging instrument, Foreign currency exchange futures contracts, USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Euro | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Value | $11,000,000 | $5,000,000 | ||
Forward Rate | 1.3782 | 1.3228 | ||
Gain/(Loss) Recorded at Balance Sheet Date | -2,000 | [1] | -13,000 | [1] |
Chinese Yuan Renminbi | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Value | 15,000,000 | ' | ||
Forward Rate | 6.2047 | ' | ||
Gain/(Loss) Recorded at Balance Sheet Date | 358,000 | [1] | ' | |
Brazilian Real | Future Contract 1 | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Value | 3,000,000 | ' | ||
Forward Rate | 2.3442 | ' | ||
Gain/(Loss) Recorded at Balance Sheet Date | 34,000 | [1] | ' | |
Brazilian Real | Future Contract 2 | ' | ' | ||
Derivative [Line Items] | ' | ' | ||
Notional Value | 2,000,000 | ' | ||
Forward Rate | 2.2301 | ' | ||
Gain/(Loss) Recorded at Balance Sheet Date | $119,000 | [1] | ' | |
[1] | Gains on futures contracts are recorded in prepaid expenses and other current assets. Losses on futures contracts are recorded in other accrued expenses. |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Percent of employer matching contribution | 50.00% | ' | ' |
Maximum percent of annual employer matched contribution per employee | 15.00% | ' | ' |
Company contributions expense | $0.70 | $0.60 | $0.70 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net sales | $136,134 | $142,389 | $136,109 | $114,722 | $117,783 | $124,871 | $116,704 | $103,732 | $529,354 | $463,090 | $468,630 | ||||||||
Gross profit | 40,628 | 40,449 | 37,836 | 32,549 | 35,702 | 36,438 | 32,970 | 28,327 | 151,462 | 133,437 | 130,061 | ||||||||
Operating income | 7,812 | 10,471 | 9,976 | 3,895 | 7,890 | 9,534 | 6,466 | 2,312 | 32,154 | 26,202 | 26,576 | ||||||||
Net income | $5,553 | $8,623 | $5,841 | $2,946 | $2,918 | $6,850 | $5,153 | $1,632 | $22,963 | $16,553 | $19,946 | ||||||||
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in dollars per share) | $0.36 | [1] | $0.56 | [1] | $0.39 | [1] | $0.20 | [1] | $0.19 | [1] | $0.46 | [1] | $0.35 | [1] | $0.11 | [1] | $1.51 | $1.11 | $1.34 |
Diluted (in dollars per share) | $0.35 | [1] | $0.55 | [1] | $0.38 | [1] | $0.19 | [1] | $0.19 | [1] | $0.45 | [1] | $0.34 | [1] | $0.11 | [1] | $1.47 | $1.10 | $1.31 |
Shares used in computing earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in shares) | 15,602 | 15,324 | 15,098 | 14,965 | 15,016 | 14,984 | 14,933 | 14,871 | 15,248 | 14,952 | 14,912 | ||||||||
Diluted (in shares) | 16,011 | 15,743 | 15,419 | 15,225 | 15,180 | 15,099 | 15,048 | 15,108 | 15,601 | 15,110 | 15,213 | ||||||||
[1] | The earnings per common share calculations for each of the quarters were based upon the weighted average number of shares and share equivalents outstanding during each period, and the sum of the quarters may not be equal to the full year earnings per share amounts. |