Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 07, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | UNIVERSAL ELECTRONICS INC | ||
Entity Central Index Key | 101,984 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
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 | $ 492,823,552 | ||
Entity Common Stock, Shares Outstanding | 14,382,289 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 52,966 | $ 112,521 |
Restricted cash | 4,623 | 0 |
Accounts receivable, net | 121,801 | 97,989 |
Inventories, net | 122,366 | 97,474 |
Prepaid expenses and other current assets | 6,217 | 6,856 |
Income tax receivable | 55 | 77 |
Deferred income taxes | 7,296 | 5,048 |
Total current assets | 315,324 | 319,965 |
Property, plant, and equipment, net | 90,015 | 76,135 |
Goodwill | 43,116 | 30,739 |
Intangible assets, net | 32,926 | 24,614 |
Deferred income taxes | 8,474 | 6,146 |
Other assets | 5,365 | 5,471 |
Total assets | 495,220 | 463,070 |
Current liabilities: | ||
Accounts payable | 93,843 | 69,991 |
Line of credit | 50,000 | 0 |
Accrued compensation | 37,452 | 40,656 |
Accrued sales discounts, rebates and royalties | 7,618 | 8,097 |
Accrued income taxes | 4,745 | 4,263 |
Other accrued expenses | 21,466 | 13,358 |
Total current liabilities | 215,124 | 136,365 |
Long-term liabilities: | ||
Long-term contingent consideration | 11,751 | 0 |
Deferred income taxes | 7,891 | 8,456 |
Income tax payable | 629 | 566 |
Other long-term liabilities | 1,917 | 2,062 |
Total liabilities | $ 237,312 | $ 147,449 |
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; 23,176,277 and 22,909,884 shares issued on December 31, 2015 and 2014, respectively | 232 | 229 |
Paid-in capital | 228,269 | 214,710 |
Treasury stock, at cost, 8,824,768 and 7,008,475 shares on December 31, 2015 and 2014, respectively | (210,333) | (120,938) |
Accumulated other comprehensive income (loss) | (15,799) | (4,446) |
Retained earnings | 255,240 | 226,066 |
Universal Electronics Inc. stockholders' equity | 257,609 | 315,621 |
Noncontrolling interest | 299 | 0 |
Total stockholders' equity | 257,908 | 315,621 |
Total liabilities and stockholders' equity | $ 495,220 | $ 463,070 |
CONSOLIDATED BALANCE SHEETS CON
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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) | 23,176,277 | 22,909,884 |
Treasury stock, shares (in shares) | 8,824,768 | 7,008,475 |
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 602,833 | $ 562,329 | $ 529,354 |
Cost of sales | 436,084 | 395,429 | 377,892 |
Gross profit | 166,749 | 166,900 | 151,462 |
Research and development expenses | 18,141 | 16,975 | 16,447 |
Selling, general and administrative expenses | 112,689 | 108,645 | 102,861 |
Operating income | 35,919 | 41,280 | 32,154 |
Interest income (expense), net | 63 | 11 | 51 |
Other income (expense), net | (7) | (840) | (3,169) |
Income before provision for income taxes | 35,975 | 40,451 | 29,036 |
Provision for income taxes | 6,802 | 7,917 | 6,073 |
Net income | 29,173 | 32,534 | 22,963 |
Net income (loss) attributable to noncontrolling interest | (1) | 0 | 0 |
Net income attributable to Universal Electronics Inc. | $ 29,174 | $ 32,534 | $ 22,963 |
Earnings per share attributable to Universal Electronics Inc.: | |||
Basic (in dollars per share) | $ 1.91 | $ 2.06 | $ 1.51 |
Diluted (in dollars per share) | $ 1.88 | $ 2.01 | $ 1.47 |
Shares used in computing earnings per share: | |||
Basic (in shares) | 15,248 | 15,781 | 15,248 |
Diluted (in shares) | 15,542 | 16,152 | 15,601 |
CONSOLIDATED COMPREHENSIVE INCO
CONSOLIDATED COMPREHENSIVE INCOME STATEMENTS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 29,173 | $ 32,534 | $ 22,963 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (11,353) | (7,428) | 1,930 |
Total comprehensive income (loss) | 17,820 | 25,106 | 24,893 |
Comprehensive income (loss) attributable to noncontrolling interest | (1) | 0 | 0 |
Comprehensive income (loss) attributable to Universal Electronics Inc. | $ 17,821 | $ 25,106 | $ 24,893 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Common Stock in Treasury | Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest |
Beginning balance (in shares) at Dec. 31, 2012 | 21,491 | 6,516 | |||||
Beginning balance at Dec. 31, 2012 | $ 250,650 | $ 215 | $ (101,793) | $ 180,607 | $ 1,052 | $ 170,569 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (loss) | 22,963 | 22,963 | 0 | ||||
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 (in shares) at Dec. 31, 2013 | 22,344 | 6,639 | |||||
Ending balance at Dec. 31, 2013 | 291,270 | $ 223 | $ (104,980) | 199,513 | 2,982 | 193,532 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (loss) | 32,534 | 32,534 | 0 | ||||
Currency translation adjustment | (7,428) | (7,428) | |||||
Shares issued for employee benefit plan and compensation (in shares) | 160 | ||||||
Shares issued for employee benefit plan and compensation | $ 847 | $ 2 | 845 | ||||
Purchase of treasury shares (in shares) | (384) | (384) | |||||
Purchase of treasury shares | $ (16,168) | $ (16,168) | |||||
Stock options exercised (in shares) | 391 | 391 | |||||
Stock options exercised | $ 8,122 | $ 4 | 8,118 | ||||
Shares Issued to Directors (in shares) | 15 | 15 | |||||
Shares issued to Directors | 0 | $ 0 | $ 210 | (210) | |||
Stock-based compensation expense | 6,444 | 6,444 | |||||
Ending balance (in shares) at Dec. 31, 2014 | 22,910 | 7,008 | |||||
Ending balance at Dec. 31, 2014 | 315,621 | $ 229 | $ (120,938) | 214,710 | (4,446) | 226,066 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income (loss) | 29,173 | 29,174 | (1) | ||||
Currency translation adjustment | (11,353) | (11,353) | |||||
Shares issued for employee benefit plan and compensation (in shares) | 165 | ||||||
Shares issued for employee benefit plan and compensation | $ 868 | $ 2 | 866 | ||||
Purchase of treasury shares (in shares) | (1,817) | (1,817) | |||||
Purchase of treasury shares | $ (89,395) | $ (89,395) | |||||
Stock options exercised (in shares) | 71 | 71 | |||||
Stock options exercised | $ 1,712 | $ 1 | 1,711 | ||||
Shares Issued to Directors (in shares) | 30 | ||||||
Shares issued to Directors | 0 | $ 0 | 0 | ||||
Stock-based compensation expense | 7,913 | 7,913 | |||||
Tax benefit from exercise of non-qualified stock options and vested restricted stock | 3,069 | 3,069 | |||||
Business Combination | 378 | 378 | |||||
Distribution to noncontrolling interest | (78) | (78) | |||||
Ending balance (in shares) at Dec. 31, 2015 | 23,176 | 8,825 | |||||
Ending balance at Dec. 31, 2015 | $ 257,908 | $ 232 | $ (210,333) | $ 228,269 | $ (15,799) | $ 255,240 | $ 299 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net income | $ 29,173 | $ 32,534 | $ 22,963 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 20,452 | 18,244 | 18,363 |
Provision for doubtful accounts | 299 | 249 | 190 |
Provision for inventory write-downs | 3,382 | 3,473 | 3,680 |
Deferred income taxes | (5,348) | (538) | (1,617) |
Tax benefit from exercise of stock options and vested restricted stock | 3,069 | 0 | 874 |
Excess tax benefit from stock-based compensation | (2,619) | 0 | (1,274) |
Shares issued for employee benefit plan | 868 | 847 | 747 |
Stock-based compensation | 7,913 | 6,444 | 5,342 |
Changes in operating assets and liabilities: | |||
Restricted cash | (4,623) | 0 | 0 |
Accounts receivable | (29,407) | (7,966) | (4,509) |
Inventories | (31,877) | (8,161) | (15,353) |
Prepaid expenses and other assets | 774 | (2,803) | (633) |
Accounts payable and accrued expenses | 33,309 | 19,964 | 2,285 |
Accrued income taxes | 729 | 1,186 | (364) |
Net cash provided by operating activities | 26,094 | 63,473 | 30,694 |
Cash used for investing activities: | |||
Acquisition of net assets of Ecolink Intelligent Technology, Inc., net of cash acquired | (12,265) | 0 | 0 |
Acquisition of property, plant, and equipment | (32,989) | (16,566) | (10,355) |
Acquisition of intangible assets | (2,395) | (1,853) | (1,319) |
Net cash used for investing activities | (47,649) | (18,419) | (11,674) |
Cash provided by (used for) financing activities: | |||
Borrowings under line of credit | 84,500 | 0 | 19,500 |
Repayments on line of credit | (34,500) | 0 | (19,500) |
Proceeds from stock options exercised | 1,712 | 8,122 | 12,371 |
Treasury stock purchased | (89,395) | (16,168) | (3,607) |
Distribution to noncontrolling interest | (78) | 0 | 0 |
Excess tax benefit from stock-based compensation | 2,619 | 0 | 1,274 |
Net cash provided by (used for) financing activities | (35,142) | (8,046) | 10,038 |
Effect of exchange rate changes on cash | (2,858) | (661) | 2,523 |
Net increase (decrease) in cash and cash equivalents | (59,555) | 36,347 | 31,581 |
Cash and cash equivalents at beginning of year | 112,521 | 76,174 | 44,593 |
Cash and cash equivalents at end of period | 52,966 | 112,521 | 76,174 |
Supplemental cash flow information: | |||
Income taxes paid | 7,793 | 7,178 | 6,068 |
Interest paid | $ 255 | $ 0 | $ 44 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
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, audio-video accessories and intelligent wireless automation components as well as software designed to enable consumers to wirelessly connect, control and interact with an increasingly complex home entertainment and automation environment. In addition, over the past 28 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, pro-security installation 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 and jointly owned entities in which we have a controlling interest. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. 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, inventory valuation, our review for impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes and stock-based 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 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, or else a full reserve is established against the tax asset or a liability is recorded. 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. 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 $1.1 million , $1.2 million , and $1.2 million for the years ended December 31, 2015 , 2014 and 2013 , 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 $12.7 million , $11.3 million and $11.3 million for the years ended December 31, 2015 , 2014 and 2013 , 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 the 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, restricted cash, 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. Domestically we generally maintain balances in excess of federally insured limits. 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. See Note 4 for further information concerning our allowance for doubtful accounts. Inventories Inventories consist of remote controls, wireless sensors and 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 market value. These estimates are based upon management's judgment about future demand and market conditions. 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, excluding computer equipment, must have a useful life greater than one year and a cost equal to or greater than $5,000 for individual assets or $5,000 for assets purchased in bulk. To qualify for capitalization, computer equipment, must have a useful life of greater than one year and a cost equal to or 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. Estimated useful lives are as follows: Buildings 25-33 Years Tooling and equipment 2-7 Years Computer equipment 3-5 Years Software 3-7 Years Furniture and fixtures 5-8 Years Leasehold and building improvements Lesser of lease term or useful life 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, maintenance and extension of the useful life 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 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 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 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 expense 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 period is generally 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 periods and the amount of the write-down is not subsequently restored. See Note 7 for further information concerning capitalized software development costs. Business Combinations We allocate the purchase price of acquired businesses to the tangible and intangible assets and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. We engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant fair value estimates and assumptions, especially with respect to intangible assets and contingent consideration. Management estimates the fair value of certain intangible assets and contingent consideration by utilizing the following (but not limited to): • future cash flow from customer contracts, customer lists, distribution agreements, acquired developed technologies, trademarks, trade names and patents; • expected costs to complete development of in-process technology into commercially viable products and cash flows from the products once they are completed; • brand awareness and market position as well as assumptions regarding the period of time the brand will continue to be used in our product portfolio; and • discount rates utilized in discounted cash flow models. In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability at each reporting period and record changes in the fair value within operating expenses. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of earnings estimates or in the timing or likelihood of achieving earnings-based milestones. Results of operations and cash flows of acquired businesses are included in our operating results from the date of acquisition. See Note 21 for further information concerning business combinations. 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, Japanese Yen and Mexican Peso. 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 May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers", which will supersede most existing U.S. GAAP revenue recognition guidance. This new standard requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 contains expanded disclosure requirements relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for fiscal periods beginning after December 15, 2016 and permits the use of either the full retrospective or cumulative effect transition method. On July 9, 2015, the FASB postponed the effective date of the new revenue standard by one year; however, early adoption is permitted as of the original effective date. We do not expect to early adopt ASU 2014-09. We have not yet selected a transition method and are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement," which amends Accounting Standards Codification ("ASC") 350, "Intangibles - Goodwill and Other". The amendments provide guidance as to whether a cloud computing arrangement includes a software license, and based on that determination, how to account for such arrangements. ASU 2015-05 is effective for fiscal periods beginning after December 15, 2015 and permits the use of either the prospective or retrospective transition method. Early adoption is not permitted. We are currently evaluating the impact that ASU 2015-05 will have on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory", which states that inventory should be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal periods beginning after December 15, 2016 and must be applied prospectively. Early adoption is permitted. We are currently evaluating the impact that ASU 2015-11 will have on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-period Adjustments." This new guidance requires an acquirer in a business combination to recognize adjustments to the provisional amounts that are identified during the measurement period to be reported in the period in which the adjustment amounts are determined. In addition, the effect on earnings of changes in depreciation, amortization and other items as a result of the change to the provisional amounts, calculated as if the accounting had been complete as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal periods beginning after December 15, 2015 and must be applied prospectively. Early adoption is permitted. We have not yet adopted ASU 2015-16 and do not expect the adoption of this guidance to have a material impact on our consolidated financial position or results of operations. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." This new guidance requires all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. ASU 2015-17 is effective for fiscal periods beginning after December 15, 2016 and may be adopted either prospectively or retrospectively. Early adoption is permitted. We have not yet selected a transition method and are currently evaluating the impact that ASU 2015-17 will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases", which changes the accounting for leases and requires expanded disclosures about leasing activities. This new guidance will require lessees to recognize a right of use asset and a lease liability at the commencement date for all leases with terms greater than twelve months. Accounting by lessors is largely unchanged. ASU 2016-02 is effective for fiscal periods beginning after December 15, 2018 and must be adopted using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents Cash and cash equivalents were held in the following geographic regions: December 31, (In thousands) 2015 2014 United States $ 8,458 $ 43,546 People's Republic of China ("PRC") 28,681 45,283 Asia (excluding the PRC) 5,346 5,516 Europe 8,093 12,912 South America 2,388 5,264 Total cash and cash equivalents $ 52,966 $ 112,521 Restricted Cash In connection with the court order issued on September 4, 2015, we placed $4.6 million of cash into a collateralized surety bond. This bond has certain restrictions for liquidation and has therefore been classified as restricted cash. Refer to Note 13 for further information about this ongoing litigation. |
Accounts Receivable, Net and Re
Accounts Receivable, Net and Revenue Concentrations | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Accounts Receivable, Net and Revenue Concentrations | Accounts Receivable, Net and Revenue Concentrations Accounts receivable, net were as follows: December 31, (In thousands) 2015 2014 Trade receivables, gross $ 119,090 $ 91,605 Allowance for doubtful accounts (822 ) (616 ) Allowance for sales returns (507 ) (617 ) Net trade receivables 117,761 90,372 Other 4,040 7,617 Accounts receivable, net $ 121,801 $ 97,989 Allowance for Doubtful Accounts Changes in the allowance for doubtful accounts were as follows: (In thousands) Year Ended December 31, 2015 2014 2013 Balance at beginning of period $ 616 $ 478 $ 322 Additions to costs and expenses 299 249 190 (Write-offs)/FX effects (93 ) (111 ) (34 ) Balance at end of period $ 822 $ 616 $ 478 Sales Returns The allowance for sales returns at December 31, 2015 and 2014 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 $0.3 million and $0.4 million on December 31, 2015 and 2014 , respectively. The value of these returned goods was included in our inventory balance at December 31, 2015 and 2014 . Significant Customers Net sales to the following customers totaled more than 10% of our net sales: Year Ended December 31, 2015 2014 2013 Amount (thousands) % of Net Sales Amount (thousands) % of Net Sales Amount (thousands) % of Net Sales Comcast Corporation $ 129,475 21.5 % $ — (1) — % (1) $ — (1) — % (1) DIRECTV 74,857 12.4 58,622 10.4 82,679 15.6 (1) Net sales to this customer did not total more than 10% of our total net sales in the prior period. Trade receivables associated with Comcast Corporation accounted for $29.4 million , or 24.1% of our accounts receivable, net at December 31, 2015. We had no other customers with trade receivables greater than 10% of our accounts receivable, net at December 31, 2015 or 2014. |
Inventories, Net and Significan
Inventories, Net and Significant Suppliers | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories, Net and Significant Suppliers | Inventories, Net and Significant Supplier Inventories, net were as follows: December 31, (In thousands) 2015 2014 Raw materials $ 29,290 $ 24,763 Components 12,228 16,170 Work in process 5,671 2,622 Finished goods 78,222 56,458 Reserve for excess and obsolete inventory (3,045 ) (2,539 ) Inventories, net $ 122,366 $ 97,474 Reserve for Excess and Obsolete Inventory Changes in the reserve for excess and obsolete inventory were as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 2,539 $ 2,714 $ 2,024 Additions charged to costs and expenses (1) 3,070 3,181 3,387 Sell through (2) (1,108 ) (869 ) (365 ) Write-offs/FX effects (1,456 ) (2,487 ) (2,332 ) Balance at end of period $ 3,045 $ 2,539 $ 2,714 (1) The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.3 million , $0.3 million , and $0.3 million for the years ended December 31, 2015 , 2014 , and 2013 , 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. Significant Supplier We purchase integrated circuits, components and finished goods from multiple sources. Maxim Integrated Products International Limited provided $31.2 million or 10.7% of total inventory purchases during the year ended December 31, 2014. No single supplier provided more than 10% of our total inventory purchases during the years ended December 31, 2015 and 2013. Related Party Supplier We purchase certain printed circuit board assemblies from a related party supplier. The supplier is considered a related party for financial reporting purposes because our Senior Vice President of Manufacturing owns 40% of this supplier. Inventory purchases from this supplier were as follows: Year Ended December 31, 2015 2014 2013 Amount (thousands) % of Total Inventory Purchases Amount (thousands) % of Total Inventory Purchases Amount (thousands) % of Total Inventory Purchases Related party supplier $ 8,550 2.5 % $ 9,188 3.2 % $ 9,846 3.5 % Total accounts payable to this supplier were as follows: December 31, 2015 2014 Amount (thousands) % of Accounts Payable Amount (thousands) % of Accounts Payable Related party supplier $ 2,361 2.5 % $ 2,378 3.4 % Our payable terms and pricing with this supplier are consistent with the terms offered by other suppliers in the ordinary course of business. The accounting policies that we apply to our transactions with our related party supplier are consistent with those applied in transactions with independent third parties. Corporate management routinely monitors purchases from our related party supplier to ensure these purchases remain consistent with our business objectives. |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 Buildings $ 50,044 $ 51,046 Machinery and equipment 60,078 52,449 Tooling 26,231 22,558 Leasehold and building improvements 19,926 18,344 Software 11,067 10,957 Furniture and fixtures 4,005 3,899 Computer equipment 4,557 4,421 175,908 163,674 Accumulated depreciation (96,365 ) (90,048 ) 79,543 73,626 Construction in progress 10,472 2,509 Total property, plant, and equipment, net $ 90,015 $ 76,135 Depreciation expense, including tooling depreciation which is recorded in cost of goods sold, was $15.6 million , $14.1 million and $14.2 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. The net book value of property, plant, and equipment located within the PRC was $79.4 million and $66.0 million on December 31, 2015 and 2014 , respectively. Construction in progress was as follows: December 31, (In thousands) 2015 2014 Buildings $ 105 $ 146 Machinery and equipment 6,620 1,045 Tooling 1,265 284 Leasehold and building improvements 244 370 Software 1,888 335 Other 350 329 Total construction in progress $ 10,472 $ 2,509 We expect that most of the assets under construction will be placed into service during the first six months of 2016 . We will begin to depreciate the cost of these assets under construction once they are placed into service. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2015 | |
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, 2013 $ 31,000 FX effects (261 ) Balance at December 31, 2014 30,739 Goodwill acquired during the period (1) 12,564 FX effects (187 ) Balance at December 31, 2015 $ 43,116 (1) During 2015, we recognized $12.6 million of goodwill related to the Ecolink Intelligent Technology, Inc. acquisition. Please refer to Note 21 for further information about this acquisition. We conducted annual goodwill impairment reviews on December 31, 2015 , 2014 , and 2013 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, 2015 2014 (In thousands) Gross (1) Accumulated Amortization (1) Net (1) Gross (1) Accumulated Amortization (1) Net (1) Distribution rights (10 years) $ 312 $ (96 ) $ 216 $ 347 $ (76 ) $ 271 Patents (10 years) 11,425 (4,737 ) 6,688 10,107 (4,736 ) 5,371 Trademarks and trade names (10 years) (2) 2,401 (1,053 ) 1,348 2,001 (834 ) 1,167 Developed and core technology (5-15 years) (2) 12,587 (2,144 ) 10,443 3,506 (1,373 ) 2,133 Capitalized software development costs (2 years) 167 (97 ) 70 276 (85 ) 191 Customer relationships (10-15 years) (2) 27,715 (13,554 ) 14,161 26,406 (10,925 ) 15,481 Total intangible assets, net $ 54,607 $ (21,681 ) $ 32,926 $ 42,643 $ (18,029 ) $ 24,614 (1) This table excludes the gross value of fully amortized intangible assets totaling $9.0 million and $7.9 million on December 31, 2015 and 2014 , respectively. (2) During the third quarter of 2015, we purchased a trade name valued at $0.4 million , which is being amortized ratably over seven years ; developed technology valued at $9.1 million , which is being amortized over a weighted average period of approximately five years ; and customer relationships valued at $1.3 million , which are being amortized ratably over five years . Refer to Note 21 for further information regarding our purchase of these intangible assets. 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) 2015 2014 2013 Cost of sales $ 123 $ 153 $ 213 Selling, general and administrative 4,719 4,009 3,914 Total amortization expense $ 4,842 $ 4,162 $ 4,127 Estimated future amortization expense related to our intangible assets at December 31, 2015 , is as follows: (In thousands) 2016 $ 6,276 2017 6,204 2018 6,176 2019 6,170 2020 5,394 Thereafter 2,706 Total $ 32,926 The remaining weighted average amortization period of our intangible assets is 5.5 years . |
Line of Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Line of Credit | Line of Credit On October 9, 2014, we extended the term of our Amended and Restated Credit Agreement ("Amended Credit Agreement") with U.S. Bank National Association ("U.S. Bank") to November 1, 2017. The Amended Credit Agreement provided for a $55.0 million line of credit ("Credit Line") that may be used for working capital and other general corporate purposes including acquisitions, share repurchases and capital expenditures. On September 3, 2015, we entered into the Second Amendment to the Amended Credit Agreement in which the Credit Line was increased to $65.0 million . On November 10, 2015, we entered into the Third Amendment to the Amended Credit Agreement in which the Credit Line was increased to $85.0 million . On February 3, 2016, we entered into the Fourth Amendment to the Amended Credit Agreement in which the Credit Line was temporarily increased to $105.0 million through March 15, 2016, after which the Credit Line will revert back to $85.0 million . 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, 2015 . 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 Assets Limited, 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 0.00% to 0.50% ). The applicable margins are calculated quarterly and vary based on our cash flow 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 and a maximum cash flow leverage ratio. In addition, the Amended Credit Agreement also contains other customary affirmative and negative covenants and events of default. As of December 31, 2015 , we were in compliance with the covenants and conditions of the Amended Credit Agreement. At December 31, 2015, we had $50.0 million outstanding under the Credit Line. Our total interest expense on borrowings was $0.3 million , $23 thousand and $0.2 million during the years ended December 31, 2015, 2014 and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Pre-tax income was attributed to the following jurisdictions: Year Ended December 31, (In thousands) 2015 2014 2013 Domestic operations $ (6,857 ) $ (2,793 ) $ 2,425 Foreign operations 42,832 43,244 26,611 Total $ 35,975 $ 40,451 $ 29,036 The provision for income taxes charged to operations were as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Current tax expense: U.S. federal $ 2,726 $ 47 $ 971 State and local 189 49 254 Foreign 9,028 8,127 6,426 Total current 11,943 8,223 7,651 Deferred tax (benefit) expense: U.S. federal (4,588 ) (687 ) (101 ) State and local (87 ) 74 (67 ) Foreign (466 ) 307 (1,410 ) Total deferred (5,141 ) (306 ) (1,578 ) Total provision for income taxes $ 6,802 $ 7,917 $ 6,073 Net deferred tax assets were comprised of the following: December 31, (In thousands) 2015 2014 Deferred tax assets: Inventory reserves $ 1,228 $ 904 Capitalized research costs 52 79 Capitalized inventory costs 926 684 Net operating losses 582 1,151 Acquired intangible assets 148 143 Accrued liabilities 5,194 4,168 Income tax credits 11,251 8,568 Stock-based compensation 2,064 1,749 Total deferred tax assets 21,445 17,446 Deferred tax liabilities: Depreciation (2,639 ) (4,402 ) Allowance for doubtful accounts (223 ) (180 ) Amortization of intangible assets (1,274 ) (2,154 ) Other (2,752 ) (2,256 ) Total deferred tax liabilities (6,888 ) (8,992 ) Net deferred tax assets before valuation allowance 14,557 8,454 Less: Valuation allowance (6,678 ) (5,716 ) Net deferred tax assets $ 7,879 $ 2,738 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) 2015 2014 2013 Tax provision at statutory U.S. rate $ 12,232 $ 13,753 $ 9,872 Increase (decrease) in tax provision resulting from: State and local taxes, net (554 ) (580 ) (397 ) Foreign tax rate differential (5,762 ) (7,150 ) (3,804 ) Nondeductible items 874 1,093 989 Federal research and development credits (678 ) (842 ) (1,149 ) Change in deductibility of social insurance 649 688 214 Valuation allowance 621 661 520 Foreign permanent benefit (675 ) — — Other 95 294 (172 ) Tax provision $ 6,802 $ 7,917 $ 6,073 At December 31, 2015 , we had foreign tax credit carryforwards of approximately $2.1 million , and federal and state Research and Experimentation ("R&E") income tax credit carryforwards of approximately $2.3 million and $6.7 million , respectively. The foreign tax credits begin to expire in 2024. 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, 2015 , we had federal, state and foreign net operating loss carryforwards of approximately $1.2 million , $2.9 million and $35 thousand , respectively. Included in the Company's U.S. net operating loss deferred tax assets above is approximately $2.2 million of unrealized gross deferred tax assets attributable to excess tax benefits associated with stock-based compensation that will impact stockholders' equity if and when such excess benefits are ultimately realized. Of the federal and state net operating loss carryforwards above, $1.2 million and $2.9 million , respectively, were acquired as part of our 2004 acquisition of SimpleDevices. The federal, state, and foreign net operating loss carryforwards 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 carryforwards that may be utilized if certain changes to a company’s ownership occur. Our 2004 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 carryforwards of SimpleDevices are limited but considered realizable in future periods. The annual federal limitation is approximately $0.6 million for 2015 and thereafter. At December 31, 2015 , 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 related to state R&E income tax credits generated during prior years and the 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. The total valuation allowance increased by $1.0 million and $0.9 million as of December 31, 2015 and 2014 , respectively. During the year ended December 31, 2015 we recognized an increase to paid-in capital and a decrease to income taxes payable of $3.1 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, 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. 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, 2015 , we evaluated fund payments made prior to the preceding five years and determined that $0.6 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 $0.6 million , $0.7 million and $0.2 million for the years ended December 31, 2015 , 2014 and 2013 , respectively, relating to decreases in the deferred tax assets of our Chinese subsidiaries. Uncertain Tax Positions At December 31, 2015 and 2014 , we had unrecognized tax benefits of approximately $3.7 million and $3.6 million , including interest and penalties, respectively. We classify interest and penalties as components of tax expense. Interest and penalties were $0.2 million , $0.2 million , and $0.1 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Interest and penalties are included in the unrecognized tax benefits. Changes to our gross unrecognized tax benefits were as follows: Year ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 3,486 $ 3,490 $ 5,006 Additions as a result of tax provisions taken during the current year 463 213 357 Subtractions as a result of tax provisions taken during the prior year (161 ) (150 ) (126 ) Foreign currency translation (79 ) (8 ) 45 Lapse in statute of limitations (241 ) (59 ) (63 ) Settlements — — (1,729 ) Other 1 $ — $ — Balance at end of period $ 3,469 $ 3,486 $ 3,490 Approximately $3.3 million , $3.2 million and $3.2 million of the total amount of gross unrecognized tax benefits at December 31, 2015 , 2014 and 2013, respectively, if not for the state Research and Experimentation income tax credit valuation allowance, would affect the annual effective tax rate, if recognized. 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 $0.1 million within the next twelve months based on federal, state, and foreign statute expirations in various jurisdictions. We have classified uncertain tax positions as non-current income tax liabilities unless expected to be paid within one year. We file income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. At December 31, 2015 , the open statutes of limitations for our significant tax jurisdictions are the following: federal are 2012 through 2014 , state are 2011 through 2014 and foreign are 2009 through 2014 . |
Accrued Compensation
Accrued Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Compensation | Accrued Compensation The components of accrued compensation were as follows: December 31, (In thousands) 2015 2014 Accrued social insurance (1) $ 18,923 $ 19,941 Accrued salary/wages 7,549 6,114 Accrued vacation/holiday 2,227 2,222 Accrued bonus (2) 5,914 8,492 Accrued commission 1,084 1,797 Accrued medical insurance claims 218 236 Other accrued compensation 1,537 1,854 Total accrued compensation $ 37,452 $ 40,656 (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, 2015 and 2014 . (2) Accrued bonus includes an accrual for an extra month of salary ("13 th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13 th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13 th month salary was $0.7 million and $0.6 million at December 31, 2015 and 2014 , respectively. Other Accrued Expenses The components of other accrued expenses were as follows: December 31, (In thousands) 2015 2014 Advertising and marketing $ 191 $ 174 Deferred revenue 1,434 648 Duties 1,318 947 Freight and handling fees 1,942 1,522 Product development 630 751 Product warranty claim costs 35 353 Professional fees 1,714 1,493 Property, plant and equipment 551 141 Sales taxes and VAT 3,170 2,057 Third-party commissions 585 553 Tooling (1) 1,173 1,089 Unrealized loss on foreign currency exchange futures contracts 1,164 113 URC court order (Notes 3 and 13) 4,629 — Utilities 278 275 Other 2,652 3,242 Total other accrued expenses $ 21,466 $ 13,358 (1) The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. Related Party Vendor We have obtained certain engineering support services for our India subsidiary from JAP Techno Solutions ("JAP"). The owner of JAP is the spouse of the managing director of our India operations. Total fees paid to JAP for the years ended December 31, 2015 and 2014 were $77 thousand and $39 thousand , respectively. No amounts were paid to this vendor during the year ended December 31, 2013. |
Other Accrued Expenses
Other Accrued Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | Accrued Compensation The components of accrued compensation were as follows: December 31, (In thousands) 2015 2014 Accrued social insurance (1) $ 18,923 $ 19,941 Accrued salary/wages 7,549 6,114 Accrued vacation/holiday 2,227 2,222 Accrued bonus (2) 5,914 8,492 Accrued commission 1,084 1,797 Accrued medical insurance claims 218 236 Other accrued compensation 1,537 1,854 Total accrued compensation $ 37,452 $ 40,656 (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, 2015 and 2014 . (2) Accrued bonus includes an accrual for an extra month of salary ("13 th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13 th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13 th month salary was $0.7 million and $0.6 million at December 31, 2015 and 2014 , respectively. Other Accrued Expenses The components of other accrued expenses were as follows: December 31, (In thousands) 2015 2014 Advertising and marketing $ 191 $ 174 Deferred revenue 1,434 648 Duties 1,318 947 Freight and handling fees 1,942 1,522 Product development 630 751 Product warranty claim costs 35 353 Professional fees 1,714 1,493 Property, plant and equipment 551 141 Sales taxes and VAT 3,170 2,057 Third-party commissions 585 553 Tooling (1) 1,173 1,089 Unrealized loss on foreign currency exchange futures contracts 1,164 113 URC court order (Notes 3 and 13) 4,629 — Utilities 278 275 Other 2,652 3,242 Total other accrued expenses $ 21,466 $ 13,358 (1) The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. Related Party Vendor We have obtained certain engineering support services for our India subsidiary from JAP Techno Solutions ("JAP"). The owner of JAP is the spouse of the managing director of our India operations. Total fees paid to JAP for the years ended December 31, 2015 and 2014 were $77 thousand and $39 thousand , respectively. No amounts were paid to this vendor during the year ended December 31, 2013. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
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 $3.6 million , $3.7 million and $3.5 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. Estimated future minimum non-cancelable operating lease payments at December 31, 2015 were as follows: (In thousands) Amount 2016 $ 3,183 2017 2,767 2018 2,164 2019 1,281 2020 1,198 Thereafter 2,389 Total operating lease commitments $ 12,982 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 48 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 $1.1 million and $1.1 million at December 31, 2015 and 2014 , 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 Land Leases We operate two factories within the PRC on which the land is leased from the government as of December 31, 2015 . 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 $1.2 million on December 31, 2015 , and will be amortized on a straight-line basis over approximately 15 years . The buildings located on this land had a net book value of $12.4 million on December 31, 2015 and will be depreciated over a remaining weighted average period of 16 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 $2.7 million on December 31, 2015 , and will be amortized on a straight-line basis over the remaining term of approximately 43 years . The buildings located on this land had a net book value of $22.3 million on December 31, 2015 and will be depreciated over a remaining weighted average period of 24 years . The remaining net book value of prepaid land leases is included within prepaid expenses and other current assets and other assets, depending on the short term or long term nature. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Balance at beginning of period $ 353 $ 41 $ 404 Accruals for warranties issued during the period 23 1,178 416 Settlements (in cash or in kind) during the period (341 ) (866 ) (779 ) Balance at end of period $ 35 $ 353 $ 41 Litigation 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 was infringing, directly and indirectly, four of our patents related to remote control technology. Following a jury verdict in favor of URC, on September 4, 2015 the District Court awarded URC $4.6 million in attorneys’ fees and costs, approximately 50% of the attorneys’ fees and costs URC claims it incurred. Both parties filed Notices of Appeal. URC is appealing various portions of the judgment and the District Court’s decision to award less than the full amount of attorneys’ fees. We have elected not to appeal the award of attorneys’ fees. URC has filed its opening appellate brief and we filed our response on February 26, 2016. We expect oral arguments in the summer of 2016, with a decision approximately six months later. As a result of the District Court's order, we accrued $4.6 million within selling, general and administrative expenses for the year ended December 31, 2015. Additionally, as described in Note 3, we placed $4.6 million into a surety bond as collateral for this court order. 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)) claiming that URC has violated ten patents not implicated in our first lawsuit against it. Of the ten patents, four of them have expired. In mid-November 2013, we filed a motion to add affiliated URC suppliers, Ohsung Electronics Co, Ltd., a South Korean entity, and Ohsung Electronics USA, Inc., a California entity, (collectively "Ohsung"), to the lawsuit. In late June and early July of 2014, URC and Ohsung requested inter partes review ("IPR") with the US Patent and Trademark Office Appeal Board ("PTAB") for each of the ten patents pending in the second URC lawsuit. On July 9, 2014, the Court entered stipulated stay, pending the IPR outcome. In January 2016, the PTAB issued its decisions in all of the IPR proceedings, sustaining most of the claims of the six unexpired patents and invalidating the majority of the claims of the four expired patents. URC has filed a notice of appeal with respect to the PTAB’s ruling against it. We have elected to not appeal the PTAB’s rulings. On March 21, 2016, a status conference is scheduled with the Court. On or about June 10, 2015, FM Marketing GmbH ("FMH") and Ruwido Austria GmbH ("Ruwido"), filed a Summons in Summary Proceedings in Belgium court against one of our subsidiaries, Universal Electronics BV ("UEBV") and one of its customers, Telenet N.V. ("Telenet"), claiming that one of the products UEBV supplies Telenet violates two design patents and one utility patent owned by FMH and/or Ruwido. By this summons, FMH and Ruwido sought to enjoin Telenet and UEBV from continued distribution and use of the products at issue. After the September 29, 2015 hearing, the Court issued its ruling in our and Telenet’s favor, rejecting FMH and Ruwido’s request entirely. On October 22, 2015, Ruwido filed its notice of appeal in this ruling. The parties have fully briefed the appeal and on February 15, 2016, the appellate court heard oral arguments. We expect the appellate court’s ruling on the motion in the next three to six months. In addition, in September 2015, UEBV filed an Opposition with the European Patent Office seeking to invalidate the one utility patent asserted against UEBV and Telenet by Ruwido. Finally, on or about February 9, 2016, Ruwido filed a writ of summons for proceeding on the merits with respect to asserted patents. UEBV and Telenet intend to vigorously defend against Ruwido's claims. 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, 2015 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, 2015 , approximately 45 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, 2015 and 2014 for the India Plan was not material. During the years ended December 31, 2015 , 2014 , and 2013 , the net periodic benefit costs were also not material. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Treasury Stock | Treasury Stock 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, 2015 , we had 300,000 shares available for repurchase under the Board's authorizations. On February 10, 2016, our Board increased these share repurchase authorizations by 100,000 shares bringing the total authorization as of the approval date to 400,000 shares. Repurchased shares of our common stock were as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Shares repurchased 1,817 384 153 Cost of shares repurchased $ 89,395 $ 16,168 $ 3,607 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, 2014 , and 2013 , we issued 15,000 , and 30,000 shares from treasury, respectively, to outside directors for services performed (see Note 16). |
Business Segment and Foreign Op
Business Segment and Foreign Operations | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 United States $ 287,678 $ 201,579 $ 195,308 Asia (excluding PRC) 109,960 129,614 107,886 People’s Republic of China 74,475 98,057 89,918 Europe 65,579 70,663 72,852 Latin America 38,985 38,912 35,179 Other 26,156 23,504 28,211 Total net sales $ 602,833 $ 562,329 $ 529,354 Specific identification of the customer billing location was the basis used for attributing revenues from external customers to geographic areas. Long-lived tangible assets by geographic area were as follows: December 31, (In thousands) 2015 2014 United States $ 7,015 $ 5,716 People's Republic of China 83,794 70,619 All other countries 4,571 5,271 Total long-lived tangible assets $ 95,380 $ 81,606 |
Stock-Based Compensation Stock-
Stock-Based Compensation Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Cost of sales $ 39 $ 16 $ 1 Research and development 428 323 226 Selling, general and administrative: Employees 5,946 4,927 4,494 Outside directors 1,500 1,178 621 Total stock-based compensation expense $ 7,913 $ 6,444 $ 5,342 Income tax benefit $ 2,366 $ 1,897 $ 1,575 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, 2015 2014 2013 Weighted average fair value of grants $ 24.47 $ 13.64 $ 9.26 Risk-free interest rate 1.39 % 1.29 % 0.95 % Expected volatility 43.36 % 44.84 % 53.39 % Expected life in years 4.57 4.56 5.20 Stock option activity was as follows: 2015 2014 2013 Number of Options (in 000's) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value (in 000's) Number of Options (in 000's) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Number of Options (in 000's) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value (in 000's) Outstanding at beginning of the year 650 $ 25.56 924 $ 22.04 1,412 $ 20.56 Granted 77 64.81 133 35.28 201 19.68 Exercised (71 ) 23.97 $ 2,193 (391 ) 20.76 $ 10,651 (679 ) 18.22 $ 8,355 Forfeited/canceled/expired (8 ) 20.64 (16 ) 20.77 (10 ) 24.75 Outstanding at end of the year (1) 648 $ 30.50 4.85 $ 14,556 650 $ 25.56 5.59 $ 25,653 924 $ 22.04 6.09 $ 14,854 Vested and expected to vest at the end of the year (1) 648 $ 30.50 4.85 $ 14,551 649 $ 25.57 5.58 $ 25,618 921 $ 22.05 6.08 $ 14,791 Exercisable at the end of the year (1) 493 $ 25.03 4.51 $ 12,979 421 $ 23.84 4.87 $ 17,345 671 $ 22.62 5.14 $ 10,388 (1) The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2015 , 2014 , and 2013 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, 2015 , 2014 , and 2013 . This amount will change based on the fair market value of our stock. During the years ended December 31, 2015 , 2014 , and 2013 , there were no modifications made to outstanding stock options. Cash received from option exercises for the years ended December 31, 2015 , 2014 , and 2013 was $1.7 million , $8.1 million , and $12.4 million , respectively. The actual tax benefit realized from option exercises was $0.5 million , $3.1 million and $2.3 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Significant option groups outstanding at December 31, 2015 and the related weighted average exercise price and life information were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in 000’s) Weighted-Average Remaining Years of Contractual Life Weighted-Average Exercise Price Number Exercisable (in 000’s) Weighted-Average Exercise Price $17.60 to $21.95 279 5.32 $ 20.23 257 $ 20.26 24.91 to 29.25 163 3.26 27.99 163 27.99 35.28 to 35.35 128 5.05 35.28 73 35.28 51.38 to 65.54 78 6.17 64.81 — — 648 4.85 $ 30.50 493 $ 25.03 As of December 31, 2015 , 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 January 1, 2016 , certain executive employees were granted 93,135 stock options in connection with the 2015 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 January 1, 2017 and 8.33% each quarter thereafter). The total grant date fair value of these awards was $1.8 million . On February 10, 2016, members of the board of directors were granted 150,000 stock options. The options are subject to a three -year vesting period ( 33.33% per year beginning on February 10, 2017). The total grant date fair value of these awards was $2.6 million . Restricted Stock Non-vested restricted stock award activity was as follows: 2015 2014 2013 Shares Weighted-Average Shares Weighted-Average Shares Granted (in 000’s) Weighted-Average Grant Date Fair Value Non-vested at beginning of the year 266 39.28 285 24.64 270 $ 18.72 Granted 138 53.64 155 51.29 196 28.86 Vested (178 ) 35.09 (171 ) 25.78 (178 ) 20.44 Forfeited (1 ) 63.19 (3 ) 37.78 (3 ) 15.49 Non-vested at end of the year 225 51.31 266 39.28 285 24.64 As of December 31, 2015 , we expect to recognize $10.7 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 2.1 years. On January 1, 2016 , certain executive employees were granted 34,060 restricted stock awards in connection with the 2015 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 January 1, 2017 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, 1999, 2002, 2003, 2006, 2010 and 2014 ("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 one - to three -year time period. Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2015 : Name Approval Date Initial Shares Available for Grant Under the Plan Remaining Shares Available for Grant Under the Plan Outstanding Shares Granted Under the Plan 1998 Stock Incentive Plan 5/27/1998 630,000 — 3,400 1999A Stock Incentive Plan 10/7/1999 1,000,000 — 20,500 2002 Stock Incentive Plan 2/5/2002 1,000,000 — 480 2003 Stock Incentive Plan 6/18/2003 1,000,000 — 63,241 2006 Stock Incentive Plan 6/13/2006 1,000,000 — 196,357 2010 Stock Incentive Plan 6/15/2010 1,000,000 13,219 379,673 2014 Stock Incentive Plan 6/12/2014 1,100,000 821,820 209,180 835,039 872,831 |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net gain (loss) on foreign currency exchange contracts (1) $ 294 $ (491 ) $ 888 Net gain (loss) on foreign currency exchange transactions (522 ) (363 ) (4,155 ) Other income 221 14 98 Other income (expense), net $ (7 ) $ (840 ) $ (3,169 ) (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, 2015 | |
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) 2015 2014 2013 BASIC Net income attributable to Universal Electronics Inc. $ 29,174 $ 32,534 $ 22,963 Weighted-average common shares outstanding 15,248 15,781 15,248 Basic earnings per share attributable to Universal Electronics Inc. $ 1.91 $ 2.06 $ 1.51 DILUTED Net income attributable to Universal Electronics Inc. $ 29,174 $ 32,534 $ 22,963 Weighted-average common shares outstanding for basic 15,248 15,781 15,248 Dilutive effect of stock options and restricted stock 294 371 353 Weighted-average common shares outstanding on a diluted basis 15,542 16,152 15,601 Diluted earnings per share attributable to Universal Electronics Inc. $ 1.88 $ 2.01 $ 1.47 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) 2015 2014 2013 Stock options 66 52 366 Restricted stock awards 28 10 18 |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | Derivatives 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 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, Japanese Yen and Mexican Peso. 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. Gains and losses on 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: December 31, 2015 December 31, 2014 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 $ — $ (1,146 ) $ — $ (1,146 ) $ — $ 810 $ — $ 810 We held foreign currency exchange contracts which resulted in a net pre-tax gain of $0.3 million , a net pre-tax loss of $0.5 million , and a net pre-tax gain of $0.9 million for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Details of foreign currency exchange contracts held were as follows: Date Held Type Position Held Notional Value (in millions) Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date December 31, 2015 USD/Euro USD $ 7.0 1.0864 $ (7 ) January 22, 2016 December 31, 2015 USD/Chinese Yuan Renminbi Chinese Yuan Renminbi $ 22.5 6.2565 $ (1,100 ) January 15, 2016 December 31, 2015 USD/Brazilian Real Brazilian Real $ 1.0 3.7461 $ (57 ) January 15, 2016 December 31, 2015 USD/Brazilian Real USD $ 3.0 3.9503 $ 18 January 15, 2016 December 31, 2014 USD/Euro USD $ 5.0 1.2450 $ 140 January 23, 2015 December 31, 2014 USD/Chinese Yuan Renminbi Chinese Yuan $ 20.0 6.2757 $ 174 January 16, 2015 December 31, 2014 USD/Brazilian Real USD $ 5.0 2.3401 $ 609 January 16, 2015 December 31, 2014 USD/Brazilian Real Brazilian Real $ 2.5 2.5442 $ (113 ) January 16, 2015 (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, 2015 | |
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 $0.9 million , $0.8 million and $0.7 million of expense for company contributions for the years ended December 31, 2015 , 2014 , and 2013 , respectively. |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination On August 4, 2015, we entered into an Asset Purchase Agreement (the "APA") to acquire substantially all of the net assets of Ecolink Intelligent Technology, Inc. ("Ecolink"), a leading developer of smart home technology that designs, develops and manufactures a wide range of intelligent wireless security and home automation products. This transaction closed on August 31, 2015. The purchase price of $24.1 million was comprised of $12.9 million in cash and $11.2 million of contingent consideration. Additionally, we incurred $0.2 million in acquisition costs, consisting primarily of legal and accounting expenses, which are included within selling, general and administrative expenses for the year ended December 31, 2015. The acquisition of these assets will allow us to extend our product offerings to include home security and automation products previously marketed by Ecolink and to sell these products to our existing customers. Included in the net assets acquired from Ecolink was a 50% ownership interest in Encore Controls LLC ("Encore"), a developer of smart home technology that designs and sells intelligent wireless fire safety products for use in home security systems. Management has determined that we are the primary beneficiary of Encore due to our ability to direct the activities that most significantly impact the economic performance of Encore, and thus we have consolidated the financial statements of Encore commencing on the acquisition date. The aggregate fair value of Encore’s net assets on the acquisition date was $0.7 million , of which $0.4 million was attributable to the noncontrolling interest. The fair value attributable to the noncontrolling interest was based on the noncontrolling interest's ownership percentage in the fair values of the assets and liabilities of Encore. The carrying amount of Encore's assets and liabilities consolidated at December 31, 2015 did not materially change from the opening balances at the acquisition date. The operations of Encore are financed through cash flows from operations, and we do not intend to provide support to Encore beyond our respective ownership obligation. Furthermore, the creditors of Encore do not have any recourse to our general credit. Our consolidated income statement for the the year ended December 31, 2015 includes net sales of $1.6 million and a net loss of $1.0 million attributable to Ecolink for the period commencing on August 31, 2015. Contingent Consideration We are required to make additional earnout payments upon the achievement of certain operating income levels attributable to Ecolink over each of the next 5 years. The amount of contingent consideration has no upper limit and is calculated at the end of each calendar year based upon certain percentages of operating income target levels as defined in the APA. Ecolink's operating income will be calculated using certain revenues, costs and expenses directly attributable to Ecolink as specified in the APA. At the acquisition date, the value of earnout contingent consideration was estimated using a valuation methodology based on projections of future operating income calculated in accordance with the APA. Such projections were then discounted using an average discount rate of 15.5% to reflect the risk in achieving the projected operating income levels as well as the time value of money. The fair value measurement of the earnout contingent consideration was based primarily on significant inputs not observable in an active market and thus represents a Level 3 measurement as defined under U.S. GAAP. During the period subsequent to the acquisition date, the fair value of the earnout contingent consideration was increased by $0.6 million to $11.8 million , primarily to reflect accretion driven by the time value of money, and this adjustment was recorded within selling, general and administrative expenses for the year ended December 31, 2015. The fair value of the earnout consideration liability is presented as long-term contingent consideration in our consolidated balance sheet at December 31, 2015 . Purchase Price Allocation Using the acquisition method of accounting, the acquisition date fair value of the consideration transferred was allocated to the net tangible and intangible assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the estimated fair value of net assets acquired is recorded as goodwill. The goodwill is expected to be deductible for income tax purposes. Management's purchase price allocation was the following: (in thousands) Estimated Lives Fair Value Cash and cash equivalents $ 685 Accounts receivable 374 Inventories 1,412 Prepaid expenses and other current assets 253 Property, plant and equipment 1-4 years 16 Non-interest bearing liabilities (1,557 ) Net tangible assets acquired 1,183 Trade name 7 years 400 Developed technology 4-14 years 9,080 Customer relationships 5 years 1,300 Goodwill 12,564 Total purchase price 24,527 Noncontrolling interest (378 ) Net purchase price 24,149 Less: Contingent consideration (11,200 ) Cash paid $ 12,949 Management's determination of the fair value of intangible assets acquired are based primarily on significant inputs not observable in an active market and thus represent Level 3 fair value measurements as defined under U.S. GAAP. The fair value assigned to Ecolink’s trade name intangible asset was determined utilizing a relief from royalty method. Under the relief from royalty method, the fair value of the intangible asset is estimated to be the present value of the royalties saved because the company owns the intangible asset. Revenue projections and estimated useful life were significant inputs into estimating the value of Ecolink’s trade name. The fair value assigned to Ecolink's developed technology was determined utilizing a multi-period excess earnings approach. Under the multi-period excess earnings approach, the fair value of the intangible asset is estimated to be the present value of future earnings attributable to the asset and utilizes revenue and cost projections, including an assumed contributory asset charge. The fair value assigned to Ecolink's customer relationships intangible asset was determined utilizing the with and without method. Under the with and without method, the fair value of the intangible asset is estimated based on the difference in projected earnings utilizing the existing Ecolink customer base versus projected earnings based on starting with no customers and reacquiring the customer base. Revenue and earnings projections were significant inputs into estimating the value of Ecolink’s customer relationships. The trade name, developed technology and customer relationships intangible assets are expected to be deductible for income tax purposes. Pro Forma Results (Unaudited) The following unaudited pro forma financial information presents the combined results of our operations and the operations of Ecolink as if this transaction had occurred on January 1, 2014. This unaudited pro forma financial information is not intended to represent or be indicative of the consolidated results of operations that would have been achieved had the acquisition actually been completed as of January 1, 2014, and should not be taken as a projection of the future consolidated results of our operations. Year Ended December 31, (In thousands, except per-share amounts) 2015 2014 Net sales $ 606,872 $ 569,804 Net income 28,947 31,861 Net income attributable to Universal Electronics Inc. 28,886 31,456 Basic earnings per share attributable to Universal Electronics Inc. 1.89 1.99 Diluted earnings per share attributable to Universal Electronics Inc. 1.86 1.95 For purposes of determining pro forma net income attributable to Universal Electronics Inc., adjustments were made to each period presented in the table above. The pro forma net income and net income attributable to Universal Electronics Inc. assumes that amortization of acquired intangible assets and of fair value adjustments related to inventories began at January 1, 2014 rather than on September 1, 2015. The result is a net increase in amortization expense of $1.3 million and $2.3 million for the years ended December 31, 2015 and 2014 , respectively. Additionally, acquisition costs totaling $0.2 million are excluded from pro forma net income attributable to Universal Electronics Inc. All adjustments have been made net of their related tax effects. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) Summarized quarterly financial data is as follows: 2015 (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Net sales $ 132,705 $ 147,551 $ 160,467 $ 162,110 Gross profit 37,409 40,280 42,809 46,251 Operating income 6,103 10,400 9,033 10,383 Net income 5,189 8,375 6,274 9,335 Net income attributable to Universal Electronics Inc. 5,189 8,375 6,271 9,339 Earnings per share attributable to Universal Electronics Inc. (1) : Basic $ 0.33 $ 0.53 $ 0.42 $ 0.65 Diluted $ 0.32 $ 0.52 $ 0.41 $ 0.64 2014 (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Net sales $ 129,845 $ 146,315 $ 147,780 $ 138,389 Gross profit 36,546 43,558 45,115 41,681 Operating income 5,990 11,674 13,785 9,831 Net income 4,273 8,488 10,871 8,902 Net income attributable to Universal Electronics Inc. 4,273 8,488 10,871 8,902 Earnings per share attributable to Universal Electronics Inc. (1) : Basic $ 0.27 $ 0.54 $ 0.69 $ 0.56 Diluted $ 0.26 $ 0.53 $ 0.68 $ 0.55 (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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On March 9, 2016, we issued common stock purchase warrants to Comcast Corporation ("Comcast") to purchase up to 725,000 shares of our common stock at a price of $54.55 per share. The right to exercise the warrants under this agreement is subject to vesting over three successive two -year periods (with the first two -year period commencing on January 1, 2016) based on the level of purchases of goods and services from us by Comcast and its affiliates, as defined in the warrant agreement. The table below presents the purchase levels and number of warrants that will vest in each period based upon achieving these purchase levels. Incremental Warrants That Will Vest Aggregate Level of Purchases by Comcast and Affiliates January 1, 2016 - December 31, 2017 January 1, 2018 - December 31, 2019 January 1, 2020 - December 31, 2021 $260 million 100,000 100,000 75,000 $300 million 75,000 75,000 75,000 $340 million 75,000 75,000 75,000 Maximum Potential Warrants Earned by Comcast 250,000 250,000 225,000 If total aggregate purchases by Comcast and its affiliates are below $260 million in any of the two -year periods above, no warrants will vest related to that two -year period. If total aggregate purchases of goods and services by Comcast and its affiliates exceed $340 million during either the first or second two -year period, the amount of any such excess will count toward aggregate purchases in the following two -year period. To fully vest in the rights to purchase all of the underlying shares, Comcast and its affiliates must purchase an aggregate of $1.02 billion in goods and services from us during the six -year vesting period. The warrants provide for certain adjustments that may be made to the exercise price and the number of shares issuable upon exercise due to customary anti-dilution provisions. Additionally, in connection with the common stock purchase warrants, we have also entered into a registration rights agreement with Comcast under which Comcast may from time to time request that we register the shares of common stock underlying vested warrants with the SEC. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries and jointly owned entities in which we have a controlling interest. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. |
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, inventory valuation, our review for impairment of long-lived assets, intangible assets and goodwill, business combinations, income taxes and stock-based 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 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, or else a full reserve is established against the tax asset or a liability is recorded. 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. 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 the 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, restricted cash, 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. Domestically we generally maintain balances in excess of federally insured limits. 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, wireless sensors and 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 market value. These estimates are based upon management's judgment about future demand and market conditions. |
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, excluding computer equipment, must have a useful life greater than one year and a cost equal to or greater than $5,000 for individual assets or $5,000 for assets purchased in bulk. To qualify for capitalization, computer equipment, must have a useful life of greater than one year and a cost equal to or 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. Estimated useful lives are as follows: Buildings 25-33 Years Tooling and equipment 2-7 Years Computer equipment 3-5 Years Software 3-7 Years Furniture and fixtures 5-8 Years Leasehold and building improvements Lesser of lease term or useful life 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, maintenance and extension of the useful life 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 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 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 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 expense 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 period is generally 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 periods and the amount of the write-down is not subsequently restored. See Note 7 for further information concerning capitalized software development costs. |
Business Combinations Policy | Business Combinations We allocate the purchase price of acquired businesses to the tangible and intangible assets and the liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over the fair value of net assets acquired is recorded as goodwill. We engage independent third-party appraisal firms to assist us in determining the fair values of assets acquired and liabilities assumed. Such valuations require management to make significant fair value estimates and assumptions, especially with respect to intangible assets and contingent consideration. Management estimates the fair value of certain intangible assets and contingent consideration by utilizing the following (but not limited to): • future cash flow from customer contracts, customer lists, distribution agreements, acquired developed technologies, trademarks, trade names and patents; • expected costs to complete development of in-process technology into commercially viable products and cash flows from the products once they are completed; • brand awareness and market position as well as assumptions regarding the period of time the brand will continue to be used in our product portfolio; and • discount rates utilized in discounted cash flow models. In those circumstances where an acquisition involves a contingent consideration arrangement, we recognize a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We re-measure this liability at each reporting period and record changes in the fair value within operating expenses. Increases or decreases in the fair value of the contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of earnings estimates or in the timing or likelihood of achieving earnings-based milestones. Results of operations and cash flows of acquired businesses are included in our operating results from the date of acquisition. |
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, Japanese Yen and Mexican Peso. 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 May 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, "Revenue from Contracts with Customers", which will supersede most existing U.S. GAAP revenue recognition guidance. This new standard requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. In addition, ASU 2014-09 contains expanded disclosure requirements relating to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 is effective for fiscal periods beginning after December 15, 2016 and permits the use of either the full retrospective or cumulative effect transition method. On July 9, 2015, the FASB postponed the effective date of the new revenue standard by one year; however, early adoption is permitted as of the original effective date. We do not expect to early adopt ASU 2014-09. We have not yet selected a transition method and are currently evaluating the impact that ASU 2014-09 will have on our consolidated financial statements. In April 2015, the FASB issued ASU 2015-05, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement," which amends Accounting Standards Codification ("ASC") 350, "Intangibles - Goodwill and Other". The amendments provide guidance as to whether a cloud computing arrangement includes a software license, and based on that determination, how to account for such arrangements. ASU 2015-05 is effective for fiscal periods beginning after December 15, 2015 and permits the use of either the prospective or retrospective transition method. Early adoption is not permitted. We are currently evaluating the impact that ASU 2015-05 will have on our consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory", which states that inventory should be measured at the lower of cost and net realizable value. Net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. ASU 2015-11 is effective for fiscal periods beginning after December 15, 2016 and must be applied prospectively. Early adoption is permitted. We are currently evaluating the impact that ASU 2015-11 will have on our consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-period Adjustments." This new guidance requires an acquirer in a business combination to recognize adjustments to the provisional amounts that are identified during the measurement period to be reported in the period in which the adjustment amounts are determined. In addition, the effect on earnings of changes in depreciation, amortization and other items as a result of the change to the provisional amounts, calculated as if the accounting had been complete as of the acquisition date, must be recorded in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal periods beginning after December 15, 2015 and must be applied prospectively. Early adoption is permitted. We have not yet adopted ASU 2015-16 and do not expect the adoption of this guidance to have a material impact on our consolidated financial position or results of operations. In November 2015, the FASB issued ASU 2015-17, "Balance Sheet Classification of Deferred Taxes." This new guidance requires all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. ASU 2015-17 is effective for fiscal periods beginning after December 15, 2016 and may be adopted either prospectively or retrospectively. Early adoption is permitted. We have not yet selected a transition method and are currently evaluating the impact that ASU 2015-17 will have on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, "Leases", which changes the accounting for leases and requires expanded disclosures about leasing activities. This new guidance will require lessees to recognize a right of use asset and a lease liability at the commencement date for all leases with terms greater than twelve months. Accounting by lessors is largely unchanged. ASU 2016-02 is effective for fiscal periods beginning after December 15, 2018 and must be adopted using a modified retrospective approach. Early adoption is permitted. We are currently evaluating the impact that ASU 2016-02 will have on our consolidated financial statements. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Property, plant and equipment useful lives | Estimated useful lives are as follows: Buildings 25-33 Years Tooling and equipment 2-7 Years Computer equipment 3-5 Years Software 3-7 Years Furniture and fixtures 5-8 Years Leasehold and building improvements Lesser of lease term or useful life Construction in progress was as follows: December 31, (In thousands) 2015 2014 Buildings $ 105 $ 146 Machinery and equipment 6,620 1,045 Tooling 1,265 284 Leasehold and building improvements 244 370 Software 1,888 335 Other 350 329 Total construction in progress $ 10,472 $ 2,509 Property, plant, and equipment, net were as follows: December 31, (In thousands) 2015 2014 Buildings $ 50,044 $ 51,046 Machinery and equipment 60,078 52,449 Tooling 26,231 22,558 Leasehold and building improvements 19,926 18,344 Software 11,067 10,957 Furniture and fixtures 4,005 3,899 Computer equipment 4,557 4,421 175,908 163,674 Accumulated depreciation (96,365 ) (90,048 ) 79,543 73,626 Construction in progress 10,472 2,509 Total property, plant, and equipment, net $ 90,015 $ 76,135 |
Cash and Cash Equivalents and33
Cash and Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 United States $ 8,458 $ 43,546 People's Republic of China ("PRC") 28,681 45,283 Asia (excluding the PRC) 5,346 5,516 Europe 8,093 12,912 South America 2,388 5,264 Total cash and cash equivalents $ 52,966 $ 112,521 |
Accounts Receivable, Net and 34
Accounts Receivable, Net and Revenue Concentrations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable, net were as follows: December 31, (In thousands) 2015 2014 Trade receivables, gross $ 119,090 $ 91,605 Allowance for doubtful accounts (822 ) (616 ) Allowance for sales returns (507 ) (617 ) Net trade receivables 117,761 90,372 Other 4,040 7,617 Accounts receivable, net $ 121,801 $ 97,989 Allowance for Doubtful Accounts Changes in the allowance for doubtful accounts were as follows: (In thousands) Year Ended December 31, 2015 2014 2013 Balance at beginning of period $ 616 $ 478 $ 322 Additions to costs and expenses 299 249 190 (Write-offs)/FX effects (93 ) (111 ) (34 ) Balance at end of period $ 822 $ 616 $ 478 |
Schedule of Significant Customers to Net Sales | Net sales to the following customers totaled more than 10% of our net sales: Year Ended December 31, 2015 2014 2013 Amount (thousands) % of Net Sales Amount (thousands) % of Net Sales Amount (thousands) % of Net Sales Comcast Corporation $ 129,475 21.5 % $ — (1) — % (1) $ — (1) — % (1) DIRECTV 74,857 12.4 58,622 10.4 82,679 15.6 (1) Net sales to this customer did not total more than 10% of our total net sales in the prior period. |
Inventories, Net and Signific35
Inventories, Net and Significant Suppliers (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net were as follows: December 31, (In thousands) 2015 2014 Raw materials $ 29,290 $ 24,763 Components 12,228 16,170 Work in process 5,671 2,622 Finished goods 78,222 56,458 Reserve for excess and obsolete inventory (3,045 ) (2,539 ) Inventories, net $ 122,366 $ 97,474 |
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) 2015 2014 2013 Balance at beginning of period $ 2,539 $ 2,714 $ 2,024 Additions charged to costs and expenses (1) 3,070 3,181 3,387 Sell through (2) (1,108 ) (869 ) (365 ) Write-offs/FX effects (1,456 ) (2,487 ) (2,332 ) Balance at end of period $ 3,045 $ 2,539 $ 2,714 (1) The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.3 million , $0.3 million , and $0.3 million for the years ended December 31, 2015 , 2014 , and 2013 , 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. |
Schedule of Related Party Transactions | Inventory purchases from this supplier were as follows: Year Ended December 31, 2015 2014 2013 Amount (thousands) % of Total Inventory Purchases Amount (thousands) % of Total Inventory Purchases Amount (thousands) % of Total Inventory Purchases Related party supplier $ 8,550 2.5 % $ 9,188 3.2 % $ 9,846 3.5 % Total accounts payable to this supplier were as follows: December 31, 2015 2014 Amount (thousands) % of Accounts Payable Amount (thousands) % of Accounts Payable Related party supplier $ 2,361 2.5 % $ 2,378 3.4 % |
Property, Plant, and Equipmen36
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Estimated useful lives are as follows: Buildings 25-33 Years Tooling and equipment 2-7 Years Computer equipment 3-5 Years Software 3-7 Years Furniture and fixtures 5-8 Years Leasehold and building improvements Lesser of lease term or useful life Construction in progress was as follows: December 31, (In thousands) 2015 2014 Buildings $ 105 $ 146 Machinery and equipment 6,620 1,045 Tooling 1,265 284 Leasehold and building improvements 244 370 Software 1,888 335 Other 350 329 Total construction in progress $ 10,472 $ 2,509 Property, plant, and equipment, net were as follows: December 31, (In thousands) 2015 2014 Buildings $ 50,044 $ 51,046 Machinery and equipment 60,078 52,449 Tooling 26,231 22,558 Leasehold and building improvements 19,926 18,344 Software 11,067 10,957 Furniture and fixtures 4,005 3,899 Computer equipment 4,557 4,421 175,908 163,674 Accumulated depreciation (96,365 ) (90,048 ) 79,543 73,626 Construction in progress 10,472 2,509 Total property, plant, and equipment, net $ 90,015 $ 76,135 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2013 $ 31,000 FX effects (261 ) Balance at December 31, 2014 30,739 Goodwill acquired during the period (1) 12,564 FX effects (187 ) Balance at December 31, 2015 $ 43,116 |
Schedule of Components of Intangible Assets | The components of intangible assets, net were as follows: December 31, 2015 2014 (In thousands) Gross (1) Accumulated Amortization (1) Net (1) Gross (1) Accumulated Amortization (1) Net (1) Distribution rights (10 years) $ 312 $ (96 ) $ 216 $ 347 $ (76 ) $ 271 Patents (10 years) 11,425 (4,737 ) 6,688 10,107 (4,736 ) 5,371 Trademarks and trade names (10 years) (2) 2,401 (1,053 ) 1,348 2,001 (834 ) 1,167 Developed and core technology (5-15 years) (2) 12,587 (2,144 ) 10,443 3,506 (1,373 ) 2,133 Capitalized software development costs (2 years) 167 (97 ) 70 276 (85 ) 191 Customer relationships (10-15 years) (2) 27,715 (13,554 ) 14,161 26,406 (10,925 ) 15,481 Total intangible assets, net $ 54,607 $ (21,681 ) $ 32,926 $ 42,643 $ (18,029 ) $ 24,614 (1) This table excludes the gross value of fully amortized intangible assets totaling $9.0 million and $7.9 million on December 31, 2015 and 2014 , respectively. (2) During the third quarter of 2015, we purchased a trade name valued at $0.4 million , which is being amortized ratably over seven years ; developed technology valued at $9.1 million , which is being amortized over a weighted average period of approximately five years ; and customer relationships valued at $1.3 million , which are being amortized ratably over five years . Refer to Note 21 for further information regarding our purchase of these intangible assets. |
Intangible Assets Amortization Expense | Amortization expense by income statement caption was as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Cost of sales $ 123 $ 153 $ 213 Selling, general and administrative 4,719 4,009 3,914 Total amortization expense $ 4,842 $ 4,162 $ 4,127 |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense related to our intangible assets at December 31, 2015 , is as follows: (In thousands) 2016 $ 6,276 2017 6,204 2018 6,176 2019 6,170 2020 5,394 Thereafter 2,706 Total $ 32,926 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Domestic operations $ (6,857 ) $ (2,793 ) $ 2,425 Foreign operations 42,832 43,244 26,611 Total $ 35,975 $ 40,451 $ 29,036 |
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) 2015 2014 2013 Current tax expense: U.S. federal $ 2,726 $ 47 $ 971 State and local 189 49 254 Foreign 9,028 8,127 6,426 Total current 11,943 8,223 7,651 Deferred tax (benefit) expense: U.S. federal (4,588 ) (687 ) (101 ) State and local (87 ) 74 (67 ) Foreign (466 ) 307 (1,410 ) Total deferred (5,141 ) (306 ) (1,578 ) Total provision for income taxes $ 6,802 $ 7,917 $ 6,073 |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets were comprised of the following: December 31, (In thousands) 2015 2014 Deferred tax assets: Inventory reserves $ 1,228 $ 904 Capitalized research costs 52 79 Capitalized inventory costs 926 684 Net operating losses 582 1,151 Acquired intangible assets 148 143 Accrued liabilities 5,194 4,168 Income tax credits 11,251 8,568 Stock-based compensation 2,064 1,749 Total deferred tax assets 21,445 17,446 Deferred tax liabilities: Depreciation (2,639 ) (4,402 ) Allowance for doubtful accounts (223 ) (180 ) Amortization of intangible assets (1,274 ) (2,154 ) Other (2,752 ) (2,256 ) Total deferred tax liabilities (6,888 ) (8,992 ) Net deferred tax assets before valuation allowance 14,557 8,454 Less: Valuation allowance (6,678 ) (5,716 ) Net deferred tax assets $ 7,879 $ 2,738 |
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) 2015 2014 2013 Tax provision at statutory U.S. rate $ 12,232 $ 13,753 $ 9,872 Increase (decrease) in tax provision resulting from: State and local taxes, net (554 ) (580 ) (397 ) Foreign tax rate differential (5,762 ) (7,150 ) (3,804 ) Nondeductible items 874 1,093 989 Federal research and development credits (678 ) (842 ) (1,149 ) Change in deductibility of social insurance 649 688 214 Valuation allowance 621 661 520 Foreign permanent benefit (675 ) — — Other 95 294 (172 ) Tax provision $ 6,802 $ 7,917 $ 6,073 |
Schedule of Unrecognized Tax Benefits Roll Forward | were as follows: Year ended December 31, (In thousands) 2015 2014 2013 Balance at beginning of period $ 3,486 $ 3,490 $ 5,006 Additions as a result of tax provisions taken during the current year 463 213 357 Subtractions as a result of tax provisions taken during the prior year (161 ) (150 ) (126 ) Foreign currency translation (79 ) (8 ) 45 Lapse in statute of limitations (241 ) (59 ) (63 ) Settlements — — (1,729 ) Other 1 $ — $ — Balance at end of period $ 3,469 $ 3,486 $ 3,490 |
Accrued Compensation (Tables)
Accrued Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Components of Accrued Compensation | The components of accrued compensation were as follows: December 31, (In thousands) 2015 2014 Accrued social insurance (1) $ 18,923 $ 19,941 Accrued salary/wages 7,549 6,114 Accrued vacation/holiday 2,227 2,222 Accrued bonus (2) 5,914 8,492 Accrued commission 1,084 1,797 Accrued medical insurance claims 218 236 Other accrued compensation 1,537 1,854 Total accrued compensation $ 37,452 $ 40,656 (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, 2015 and 2014 . (2) Accrued bonus includes an accrual for an extra month of salary ("13 th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13 th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13 th month salary was $0.7 million and $0.6 million at December 31, 2015 and 2014 , respectively. The components of other accrued expenses were as follows: December 31, (In thousands) 2015 2014 Advertising and marketing $ 191 $ 174 Deferred revenue 1,434 648 Duties 1,318 947 Freight and handling fees 1,942 1,522 Product development 630 751 Product warranty claim costs 35 353 Professional fees 1,714 1,493 Property, plant and equipment 551 141 Sales taxes and VAT 3,170 2,057 Third-party commissions 585 553 Tooling (1) 1,173 1,089 Unrealized loss on foreign currency exchange futures contracts 1,164 113 URC court order (Notes 3 and 13) 4,629 — Utilities 278 275 Other 2,652 3,242 Total other accrued expenses $ 21,466 $ 13,358 (1) The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Payables and Accruals [Abstract] | |
Components of Other Accrued Expenses | The components of accrued compensation were as follows: December 31, (In thousands) 2015 2014 Accrued social insurance (1) $ 18,923 $ 19,941 Accrued salary/wages 7,549 6,114 Accrued vacation/holiday 2,227 2,222 Accrued bonus (2) 5,914 8,492 Accrued commission 1,084 1,797 Accrued medical insurance claims 218 236 Other accrued compensation 1,537 1,854 Total accrued compensation $ 37,452 $ 40,656 (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, 2015 and 2014 . (2) Accrued bonus includes an accrual for an extra month of salary ("13 th month salary") to be paid to employees in certain geographies where it is the customary business practice. This 13 th month salary is paid to these employees if they remain employed with us through December 31st. The total accrued for the 13 th month salary was $0.7 million and $0.6 million at December 31, 2015 and 2014 , respectively. The components of other accrued expenses were as follows: December 31, (In thousands) 2015 2014 Advertising and marketing $ 191 $ 174 Deferred revenue 1,434 648 Duties 1,318 947 Freight and handling fees 1,942 1,522 Product development 630 751 Product warranty claim costs 35 353 Professional fees 1,714 1,493 Property, plant and equipment 551 141 Sales taxes and VAT 3,170 2,057 Third-party commissions 585 553 Tooling (1) 1,173 1,089 Unrealized loss on foreign currency exchange futures contracts 1,164 113 URC court order (Notes 3 and 13) 4,629 — Utilities 278 275 Other 2,652 3,242 Total other accrued expenses $ 21,466 $ 13,358 (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, 2015 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Estimated future minimum non-cancelable operating lease payments at December 31, 2015 were as follows: (In thousands) Amount 2016 $ 3,183 2017 2,767 2018 2,164 2019 1,281 2020 1,198 Thereafter 2,389 Total operating lease commitments $ 12,982 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Balance at beginning of period $ 353 $ 41 $ 404 Accruals for warranties issued during the period 23 1,178 416 Settlements (in cash or in kind) during the period (341 ) (866 ) (779 ) Balance at end of period $ 35 $ 353 $ 41 |
Treasury Stock (Tables)
Treasury Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Treasury Stock | Repurchased shares of our common stock were as follows: Year Ended December 31, (In thousands) 2015 2014 2013 Shares repurchased 1,817 384 153 Cost of shares repurchased $ 89,395 $ 16,168 $ 3,607 |
Business Segment and Foreign 44
Business Segment and Foreign Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 United States $ 287,678 $ 201,579 $ 195,308 Asia (excluding PRC) 109,960 129,614 107,886 People’s Republic of China 74,475 98,057 89,918 Europe 65,579 70,663 72,852 Latin America 38,985 38,912 35,179 Other 26,156 23,504 28,211 Total net sales $ 602,833 $ 562,329 $ 529,354 |
Schedule of Long-lived Assets | Long-lived tangible assets by geographic area were as follows: December 31, (In thousands) 2015 2014 United States $ 7,015 $ 5,716 People's Republic of China 83,794 70,619 All other countries 4,571 5,271 Total long-lived tangible assets $ 95,380 $ 81,606 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Cost of sales $ 39 $ 16 $ 1 Research and development 428 323 226 Selling, general and administrative: Employees 5,946 4,927 4,494 Outside directors 1,500 1,178 621 Total stock-based compensation expense $ 7,913 $ 6,444 $ 5,342 Income tax benefit $ 2,366 $ 1,897 $ 1,575 |
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, 2015 2014 2013 Weighted average fair value of grants $ 24.47 $ 13.64 $ 9.26 Risk-free interest rate 1.39 % 1.29 % 0.95 % Expected volatility 43.36 % 44.84 % 53.39 % Expected life in years 4.57 4.56 5.20 |
Schedule of Stock Option Activity | Stock option activity was as follows: 2015 2014 2013 Number of Options (in 000's) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value (in 000's) Number of Options (in 000's) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value Number of Options (in 000's) Weighted-Average Exercise Price Weighted-Average Remaining Contractual Terms (in years) Aggregate Intrinsic Value (in 000's) Outstanding at beginning of the year 650 $ 25.56 924 $ 22.04 1,412 $ 20.56 Granted 77 64.81 133 35.28 201 19.68 Exercised (71 ) 23.97 $ 2,193 (391 ) 20.76 $ 10,651 (679 ) 18.22 $ 8,355 Forfeited/canceled/expired (8 ) 20.64 (16 ) 20.77 (10 ) 24.75 Outstanding at end of the year (1) 648 $ 30.50 4.85 $ 14,556 650 $ 25.56 5.59 $ 25,653 924 $ 22.04 6.09 $ 14,854 Vested and expected to vest at the end of the year (1) 648 $ 30.50 4.85 $ 14,551 649 $ 25.57 5.58 $ 25,618 921 $ 22.05 6.08 $ 14,791 Exercisable at the end of the year (1) 493 $ 25.03 4.51 $ 12,979 421 $ 23.84 4.87 $ 17,345 671 $ 22.62 5.14 $ 10,388 (1) The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2015 , 2014 , and 2013 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, 2015 , 2014 , and 2013 . 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, 2015 and the related weighted average exercise price and life information were as follows: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding (in 000’s) Weighted-Average Remaining Years of Contractual Life Weighted-Average Exercise Price Number Exercisable (in 000’s) Weighted-Average Exercise Price $17.60 to $21.95 279 5.32 $ 20.23 257 $ 20.26 24.91 to 29.25 163 3.26 27.99 163 27.99 35.28 to 35.35 128 5.05 35.28 73 35.28 51.38 to 65.54 78 6.17 64.81 — — 648 4.85 $ 30.50 493 $ 25.03 |
Schedule of Non-vested Restricted Stock Awards Activity | Non-vested restricted stock award activity was as follows: 2015 2014 2013 Shares Weighted-Average Shares Weighted-Average Shares Granted (in 000’s) Weighted-Average Grant Date Fair Value Non-vested at beginning of the year 266 39.28 285 24.64 270 $ 18.72 Granted 138 53.64 155 51.29 196 28.86 Vested (178 ) 35.09 (171 ) 25.78 (178 ) 20.44 Forfeited (1 ) 63.19 (3 ) 37.78 (3 ) 15.49 Non-vested at end of the year 225 51.31 266 39.28 285 24.64 |
Schedule of Information Regarding Stock Incentive Plans | Detailed information regarding our active Stock Incentive Plans was as follows at December 31, 2015 : Name Approval Date Initial Shares Available for Grant Under the Plan Remaining Shares Available for Grant Under the Plan Outstanding Shares Granted Under the Plan 1998 Stock Incentive Plan 5/27/1998 630,000 — 3,400 1999A Stock Incentive Plan 10/7/1999 1,000,000 — 20,500 2002 Stock Incentive Plan 2/5/2002 1,000,000 — 480 2003 Stock Incentive Plan 6/18/2003 1,000,000 — 63,241 2006 Stock Incentive Plan 6/13/2006 1,000,000 — 196,357 2010 Stock Incentive Plan 6/15/2010 1,000,000 13,219 379,673 2014 Stock Incentive Plan 6/12/2014 1,100,000 821,820 209,180 835,039 872,831 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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) 2015 2014 2013 Net gain (loss) on foreign currency exchange contracts (1) $ 294 $ (491 ) $ 888 Net gain (loss) on foreign currency exchange transactions (522 ) (363 ) (4,155 ) Other income 221 14 98 Other income (expense), net $ (7 ) $ (840 ) $ (3,169 ) (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, 2015 | |
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) 2015 2014 2013 BASIC Net income attributable to Universal Electronics Inc. $ 29,174 $ 32,534 $ 22,963 Weighted-average common shares outstanding 15,248 15,781 15,248 Basic earnings per share attributable to Universal Electronics Inc. $ 1.91 $ 2.06 $ 1.51 DILUTED Net income attributable to Universal Electronics Inc. $ 29,174 $ 32,534 $ 22,963 Weighted-average common shares outstanding for basic 15,248 15,781 15,248 Dilutive effect of stock options and restricted stock 294 371 353 Weighted-average common shares outstanding on a diluted basis 15,542 16,152 15,601 Diluted earnings per share attributable to Universal Electronics Inc. $ 1.88 $ 2.01 $ 1.47 |
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) 2015 2014 2013 Stock options 66 52 366 Restricted stock awards 28 10 18 |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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: December 31, 2015 December 31, 2014 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 $ — $ (1,146 ) $ — $ (1,146 ) $ — $ 810 $ — $ 810 |
Schedule of Futures Contracts | Details of foreign currency exchange contracts held were as follows: Date Held Type Position Held Notional Value (in millions) Forward Rate Unrealized Gain/(Loss) Recorded at Balance Sheet Date (in thousands) (1) Settlement Date December 31, 2015 USD/Euro USD $ 7.0 1.0864 $ (7 ) January 22, 2016 December 31, 2015 USD/Chinese Yuan Renminbi Chinese Yuan Renminbi $ 22.5 6.2565 $ (1,100 ) January 15, 2016 December 31, 2015 USD/Brazilian Real Brazilian Real $ 1.0 3.7461 $ (57 ) January 15, 2016 December 31, 2015 USD/Brazilian Real USD $ 3.0 3.9503 $ 18 January 15, 2016 December 31, 2014 USD/Euro USD $ 5.0 1.2450 $ 140 January 23, 2015 December 31, 2014 USD/Chinese Yuan Renminbi Chinese Yuan $ 20.0 6.2757 $ 174 January 16, 2015 December 31, 2014 USD/Brazilian Real USD $ 5.0 2.3401 $ 609 January 16, 2015 December 31, 2014 USD/Brazilian Real Brazilian Real $ 2.5 2.5442 $ (113 ) January 16, 2015 (1) Gains on futures contracts are recorded in prepaid expenses and other current assets. Losses on futures contracts are recorded in other accrued expenses. |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Purchase Price Allocation | Management's purchase price allocation was the following: (in thousands) Estimated Lives Fair Value Cash and cash equivalents $ 685 Accounts receivable 374 Inventories 1,412 Prepaid expenses and other current assets 253 Property, plant and equipment 1-4 years 16 Non-interest bearing liabilities (1,557 ) Net tangible assets acquired 1,183 Trade name 7 years 400 Developed technology 4-14 years 9,080 Customer relationships 5 years 1,300 Goodwill 12,564 Total purchase price 24,527 Noncontrolling interest (378 ) Net purchase price 24,149 Less: Contingent consideration (11,200 ) Cash paid $ 12,949 |
Business Combination, Pro Forma Results | Year Ended December 31, (In thousands, except per-share amounts) 2015 2014 Net sales $ 606,872 $ 569,804 Net income 28,947 31,861 Net income attributable to Universal Electronics Inc. 28,886 31,456 Basic earnings per share attributable to Universal Electronics Inc. 1.89 1.99 Diluted earnings per share attributable to Universal Electronics Inc. 1.86 1.95 |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summarized Quarterly Financial Data | Summarized quarterly financial data is as follows: 2015 (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Net sales $ 132,705 $ 147,551 $ 160,467 $ 162,110 Gross profit 37,409 40,280 42,809 46,251 Operating income 6,103 10,400 9,033 10,383 Net income 5,189 8,375 6,274 9,335 Net income attributable to Universal Electronics Inc. 5,189 8,375 6,271 9,339 Earnings per share attributable to Universal Electronics Inc. (1) : Basic $ 0.33 $ 0.53 $ 0.42 $ 0.65 Diluted $ 0.32 $ 0.52 $ 0.41 $ 0.64 2014 (In thousands, except per share amounts) March 31, June 30, September 30, December 31, Net sales $ 129,845 $ 146,315 $ 147,780 $ 138,389 Gross profit 36,546 43,558 45,115 41,681 Operating income 5,990 11,674 13,785 9,831 Net income 4,273 8,488 10,871 8,902 Net income attributable to Universal Electronics Inc. 4,273 8,488 10,871 8,902 Earnings per share attributable to Universal Electronics Inc. (1) : Basic $ 0.27 $ 0.54 $ 0.69 $ 0.56 Diluted $ 0.26 $ 0.53 $ 0.68 $ 0.55 (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. |
Subsequent Event (Tables)
Subsequent Event (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Schedule of purchase level and number of warrants that will vest | Incremental Warrants That Will Vest Aggregate Level of Purchases by Comcast and Affiliates January 1, 2016 - December 31, 2017 January 1, 2018 - December 31, 2019 January 1, 2020 - December 31, 2021 $260 million 100,000 100,000 75,000 $300 million 75,000 75,000 75,000 $340 million 75,000 75,000 75,000 Maximum Potential Warrants Earned by Comcast 250,000 250,000 225,000 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 1.1 | $ 1.2 | $ 1.2 |
Other shipping and handling costs | $ 12.7 | $ 11.3 | $ 11.3 |
Maximum Remaining Maturity of Foreign Currency Derivatives | 9 months |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Stock-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 4 years |
Summary of Significant Accoun54
Summary of Significant Accounting Policies - Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Individual assets excluding computer equipment | |
Property, Plant and Equipment [Line Items] | |
Capitalization threshold, minimum useful life | 1 year |
Capitalization threshold, minimum cost | $ 5,000 |
Assets purchased in bulk | |
Property, Plant and Equipment [Line Items] | |
Capitalization threshold, minimum cost | $ 5,000 |
Buildings | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Buildings | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 33 years |
Tooling and equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Tooling and equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Capitalization threshold, minimum useful life | 1 year |
Capitalization threshold, minimum cost | $ 1,000 |
Computer equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Software | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Software | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Furniture and fixtures | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Furniture and fixtures | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 8 years |
Leasehold and building improvements | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 2 years |
Leasehold and building improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, estimated period of benefit | 1 year |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, estimated period of benefit | 15 years |
Capitalized software development | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible asset, estimated period of benefit | 2 years |
Cash and Cash Equivalents and56
Cash and Cash Equivalents and Restricted Cash Cash and Cash Equivalents - Geographic Information (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Sep. 04, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Line Items] | |||||
Total cash and cash equivalents | $ 52,966 | $ 112,521 | $ 76,174 | $ 44,593 | |
United States [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Total cash and cash equivalents | 8,458 | 43,546 | |||
CHINA | |||||
Cash and Cash Equivalents [Line Items] | |||||
Total cash and cash equivalents | 28,681 | 45,283 | |||
Asia, Excluding The People's Republic of China [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Total cash and cash equivalents | 5,346 | 5,516 | |||
Europe [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Total cash and cash equivalents | 8,093 | 12,912 | |||
South America [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Total cash and cash equivalents | $ 2,388 | $ 5,264 | |||
Surety Bond [Member] | |||||
Cash and Cash Equivalents [Line Items] | |||||
Restricted Cash | $ 4,600 |
Accounts Receivable, Net and 57
Accounts Receivable, Net and Revenue Concentrations (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Receivable, Net, Current [Abstract] | ||||
Trade receivables, gross | $ 119,090 | $ 91,605 | ||
Allowance for doubtful accounts | (822) | (616) | $ (478) | $ (322) |
Allowance for sales returns | (507) | (617) | ||
Net trade receivables | 117,761 | 90,372 | ||
Other | 4,040 | 7,617 | ||
Accounts receivable, net | $ 121,801 | $ 97,989 |
Accounts Receivable, Net and 58
Accounts Receivable, Net and Revenue Concentrations - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Allowance for Doubtful Accounts | |||
Balance at beginning of period | $ 616 | $ 478 | $ 322 |
Additions to costs and expenses | 299 | 249 | 190 |
(Write-offs)/FX effects | (93) | (111) | (34) |
Balance at end of period | $ 822 | $ 616 | $ 478 |
Accounts Receivable, Net and 59
Accounts Receivable, Net and Revenue Concentrations - Sales Returns (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Allowance for sales return | $ 0.3 | $ 0.4 |
Accounts Receivable, Net and 60
Accounts Receivable, Net and Revenue Concentrations - Revenue by Significant Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Revenue, Major Customer [Line Items] | |||||||||||||
Revenue, Net | $ 162,110 | $ 160,467 | $ 147,551 | $ 132,705 | $ 138,389 | $ 147,780 | $ 146,315 | $ 129,845 | $ 602,833 | $ 562,329 | $ 529,354 | ||
Accounts Receivable, net | 117,761 | $ 90,372 | 117,761 | 90,372 | |||||||||
Revenue net [Member] | Comcast Corporation [Member] | |||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||
Revenue, Net | $ 129,475 | $ 0 | [1] | $ 0 | [1] | ||||||||
Concentration risk | 21.50% | 0.00% | [1] | 0.00% | [1] | ||||||||
Revenue net [Member] | DIRECTV [Member] | |||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||
Revenue, Net | $ 74,857 | $ 58,622 | $ 82,679 | ||||||||||
Concentration risk | 12.40% | 10.40% | 15.60% | ||||||||||
Trade Accounts Receivable [Member] | Comcast Corporation [Member] | |||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||
Accounts Receivable, net | $ 29,400 | $ 29,400 | |||||||||||
Concentration risk | 24.10% | ||||||||||||
[1] | Net sales to this customer did not total more than 10% of our total net sales in the prior period. |
Inventories, Net and Signific61
Inventories, Net and Significant Suppliers - Inventories, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ||||
Raw materials | $ 29,290 | $ 24,763 | ||
Components | 12,228 | 16,170 | ||
Work in process | 5,671 | 2,622 | ||
Finished goods | 78,222 | 56,458 | ||
Reserve for excess and obsolete inventory | (3,045) | (2,539) | $ (2,714) | $ (2,024) |
Inventories, net | $ 122,366 | $ 97,474 |
Inventories, Net and Signific62
Inventories, Net and Significant Suppliers - Inventory Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Reserve for Excess and Obsolete Inventory | ||||
Balance at beginning of period | $ 2,539 | $ 2,714 | $ 2,024 | |
Additions charged to costs and expenses | [1] | 3,070 | 3,181 | 3,387 |
Sell through | [2] | (1,108) | (869) | (365) |
Write-offs/FX effects | (1,456) | (2,487) | (2,332) | |
Balance at end of period | 3,045 | 2,539 | 2,714 | |
Inventory scrapped during production | $ 300 | $ 300 | $ 300 | |
[1] | The additions charged to costs and expenses do not include inventory directly written-off that was scrapped during production totaling $0.3 million, $0.3 million, and $0.3 million for the years ended December 31, 2015, 2014, and 2013, 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. |
Inventories, Net and Signific63
Inventories, Net and Significant Suppliers - Significant Suppliers (Details) - Maxim [Member] - Cost of goods, Total [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Concentration Risk [Line Items] | |
Inventory Purchases | $ 31.2 |
Supplier Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration risk | 10.70% |
Inventories, Net and Signific64
Inventories, Net and Significant Suppliers - Related Party Supplier (Details) - Supplier Concentration Risk [Member] - Affiliated Entity [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cost of Goods, Total [Member] | |||
Related Party Transactions [Line Items] | |||
Inventory purchases form related party | $ 8,550 | $ 9,188 | $ 9,846 |
Concentration risk | 2.50% | 3.20% | 3.50% |
Accounts Payable [Member] | |||
Related Party Transactions [Line Items] | |||
Accounts payable, related parties | $ 2,361 | $ 2,378 | |
Concentration risk | 2.50% | 3.40% |
Property, Plant, and Equipmen65
Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 175,908 | $ 163,674 | |
Accumulated depreciation | (96,365) | (90,048) | |
Property, plant and equipment, net, excluding contruction in progress | 79,543 | 73,626 | |
Construction in progress | 10,472 | 2,509 | |
Total property, plant, and equipment, net | 90,015 | 76,135 | |
Depreciation expense | 15,600 | 14,100 | $ 14,200 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 50,044 | 51,046 | |
Construction in progress | 105 | 146 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 60,078 | 52,449 | |
Construction in progress | 6,620 | 1,045 | |
Tooling | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 26,231 | 22,558 | |
Construction in progress | 1,265 | 284 | |
Leasehold and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 19,926 | 18,344 | |
Construction in progress | 244 | 370 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 11,067 | 10,957 | |
Construction in progress | 1,888 | 335 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,005 | 3,899 | |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 4,557 | 4,421 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Construction in progress | 350 | 329 | |
People's Republic of China [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Total property, plant, and equipment, net | $ 79,400 | $ 66,000 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Goodwill | |||
Goodwill beginning balance | $ 30,739 | $ 31,000 | |
FX effects | (187) | (261) | |
Goodwill, Acquired During Period | [1] | 12,564 | |
Goodwill closing balance | $ 43,116 | $ 30,739 | |
[1] | During 2015, we recognized $12.6 million of goodwill related to the Ecolink Intelligent Technology, Inc. acquisition. Please refer to Note 21 for further information about this acquisition. |
Goodwill and Intangible Asset67
Goodwill and Intangible Assets, Net - Finite-Lived Intangibles (Details) - USD ($) $ in Thousands | Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross | $ 54,607 | $ 42,643 | |||
Accumulated Amortization | (21,681) | (18,029) | |||
Intangible assets, net | 32,926 | 24,614 | |||
Finite-lived intangible assets, fully amortized, gross | 9,000 | 7,900 | |||
Amortization expense | $ 4,842 | 4,162 | $ 4,127 | ||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years 6 months | ||||
Minimum [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 1 year | ||||
Maximum [Member] | |||||
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 | $ 123 | 153 | 213 | ||
Selling, general and administrative | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortization expense | 4,719 | 4,009 | $ 3,914 | ||
Distribution rights | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross | [1] | 312 | 347 | ||
Accumulated Amortization | [1] | (96) | (76) | ||
Intangible assets, net | [1] | $ 216 | 271 | ||
Intangible asset, estimated period of benefit | 10 years | ||||
Patents | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross | [1] | $ 11,425 | 10,107 | ||
Accumulated Amortization | [1] | (4,737) | (4,736) | ||
Intangible assets, net | [1] | $ 6,688 | 5,371 | ||
Intangible asset, estimated period of benefit | 10 years | ||||
Trademark and trade names | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross | [1] | $ 2,401 | 2,001 | ||
Accumulated Amortization | [1] | (1,053) | (834) | ||
Intangible assets, net | [1] | $ 1,348 | 1,167 | ||
Intangible asset, estimated period of benefit | 10 years | ||||
Developed and core technology | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross | [1] | $ 12,587 | 3,506 | ||
Accumulated Amortization | [1] | (2,144) | (1,373) | ||
Intangible assets, net | [1] | $ 10,443 | 2,133 | ||
Developed and core technology | Minimum [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 5 years | ||||
Developed and core technology | Maximum [Member] | |||||
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 | [1] | $ 167 | 276 | ||
Accumulated Amortization | [1] | (97) | (85) | ||
Intangible assets, net | [1] | $ 70 | 191 | ||
Intangible asset, estimated period of benefit | 2 years | ||||
Customer relationships | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Gross | [1] | $ 27,715 | 26,406 | ||
Accumulated Amortization | [1] | (13,554) | (10,925) | ||
Intangible assets, net | [1] | $ 14,161 | $ 15,481 | ||
Customer relationships | Minimum [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 10 years | ||||
Customer relationships | Maximum [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 15 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Trade Names [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 7 years | 7 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 400 | $ 400 | |||
Ecolink Intelligent Technology, Inc. [Member] | Developed and core technology | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 9,100 | $ 9,080 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Developed and core technology | Minimum [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 4 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Developed and core technology | Maximum [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 14 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Customer relationships | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Intangible asset, estimated period of benefit | 5 years | 5 years | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 1,300 | $ 1,300 | |||
[1] | This table excludes the gross value of fully amortized intangible assets totaling $9.0 million and $7.9 million on December 31, 2015 and 2014, respectively. |
Goodwill and Intangible Asset68
Goodwill and Intangible Assets, Net - Future Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Estimated Future Amortization expense | ||
2,016 | $ 6,276 | |
2,017 | 6,204 | |
2,018 | 6,176 | |
2,019 | 6,170 | |
2,020 | 5,394 | |
Thereafter | 2,706 | |
Intangible assets, net | $ 32,926 | $ 24,614 |
Remaining weighted average amortization period | 5 years 6 months |
Line of Credit (Details)
Line of Credit (Details) - USD ($) $ in Thousands | Oct. 09, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 15, 2016 | Feb. 03, 2016 | Nov. 10, 2015 | Sep. 03, 2015 |
Line of Credit Facility [Line Items] | ||||||||
Line of Credit, Current | $ 50,000 | $ 0 | ||||||
Total interest expense on borrowings | 300 | $ 23 | $ 200 | |||||
Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 55,000 | $ 85,000 | $ 65,000 | |||||
Line of Credit [Member] | US Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Line of Credit [Member] | US Bank [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Line of Credit [Member] | US Bank [Member] | Base rate [Member] | Minimum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Line of Credit [Member] | US Bank [Member] | Base rate [Member] | Maximum [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Line of Credit [Member] | US Bank [Member] | Enson [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Subsidiary ownership percentage securing facility | 65.00% | |||||||
Letter of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Letter of credit outstanding amount | $ 13 | |||||||
Subsequent event | Line of Credit [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 85,000 | $ 105,000 |
Income Taxes - Pre-tax Income (
Income Taxes - Pre-tax Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic operations | $ (6,857) | $ (2,793) | $ 2,425 |
Foreign operations | 42,832 | 43,244 | 26,611 |
Income before provision for income taxes | $ 35,975 | $ 40,451 | $ 29,036 |
Income Taxes - Provision (Detai
Income Taxes - Provision (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current tax expense: | |||
U.S. federal | $ 2,726 | $ 47 | $ 971 |
State and local | 189 | 49 | 254 |
Foreign | 9,028 | 8,127 | 6,426 |
Total current | 11,943 | 8,223 | 7,651 |
Deferred tax (benefit) expense: | |||
U.S. federal | (4,588) | (687) | (101) |
State and local | (87) | 74 | (67) |
Foreign | (466) | 307 | (1,410) |
Total deferred | (5,141) | (306) | (1,578) |
Total provision for income taxes | $ 6,802 | $ 7,917 | $ 6,073 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Inventory reserves | $ 1,228 | $ 904 |
Capitalized research costs | 52 | 79 |
Capitalized inventory costs | 926 | 684 |
Net operating losses | 582 | 1,151 |
Acquired intangible assets | 148 | 143 |
Accrued liabilities | 5,194 | 4,168 |
Income tax credits | 11,251 | 8,568 |
Stock-based compensation | 2,064 | 1,749 |
Total deferred tax assets | 21,445 | 17,446 |
Deferred tax liabilities: | ||
Depreciation | (2,639) | (4,402) |
Allowance for doubtful accounts | (223) | (180) |
Amortization of intangible assets | (1,274) | (2,154) |
Other | (2,752) | (2,256) |
Total deferred tax liabilities | (6,888) | (8,992) |
Net deferred tax assets before valuation allowance | 14,557 | 8,454 |
Less: Valuation allowance | (6,678) | (5,716) |
Net deferred tax assets | $ 7,879 | $ 2,738 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||
Tax provision at statutory U.S. rate | $ 12,232 | $ 13,753 | $ 9,872 |
Increase (decrease) in tax provision resulting from: | |||
State and local taxes, net | (554) | (580) | (397) |
Foreign tax rate differential | (5,762) | (7,150) | (3,804) |
Nondeductible items | 874 | 1,093 | 989 |
Federal research and development credits | (678) | (842) | (1,149) |
Change in deductibility of social insurance | 649 | 688 | 214 |
Valuation allowance | 621 | 661 | 520 |
Effective Income Tax Rate Reconciliation, Tax Settlement, Foreign, Amount | (675) | 0 | 0 |
Other | 95 | 294 | (172) |
Total provision for income taxes | $ 6,802 | $ 7,917 | $ 6,073 |
Income Taxes - Tax Credit Carry
Income Taxes - Tax Credit Carryforward (Details) - Research & Experimentation $ in Millions | Dec. 31, 2015USD ($) |
Foreign | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 2.1 |
Federal | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | 2.3 |
State | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforwards | $ 6.7 |
Income Taxes - Net Operating Lo
Income Taxes - Net Operating Loss Carryforwards (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Net Operating Loss Carryforwards [Line Items] | |
Unrealized gross deferred tax assets attributable to excess tax benefits associated with stock-based compensation | $ 2,200 |
Federal | |
Net Operating Loss Carryforwards [Line Items] | |
Net operating losses | 1,200 |
State | |
Net Operating Loss Carryforwards [Line Items] | |
Net operating losses | 2,900 |
Foreign | |
Net Operating Loss Carryforwards [Line Items] | |
Net operating losses | 35 |
SimpleDevices | Federal | |
Net Operating Loss Carryforwards [Line Items] | |
Net operating losses | 1,200 |
Operating losses annual limitation | 600 |
SimpleDevices | State | |
Net Operating Loss Carryforwards [Line Items] | |
Net operating losses | $ 2,900 |
Income Taxes - Other Narrative
Income Taxes - Other Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||
Tax benefit from the exercises of non-qualified stock options and vesting of restricted stock under our stock-based incentive plans | $ 3,100,000 | $ 900,000 | |
Provision for undistributed earnings of our foreign subsidiaries | $ 0 | ||
State Administration of Taxation, China [Member] | |||
Income Taxes [Line Items] | |||
Period of recognition for deductible expenses or deferred tax assets | 5 years | ||
Increase in income tax expense due to write-off of deferred tax assets for social insurance and housing funds | $ 600,000 | $ 700,000 | $ 200,000 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation Allowance [Line Items] | ||
Deferred tax assets, valuation allowance | $ 6,678 | $ 5,716 |
Increase in valuation allowance | $ 1,000 | $ 900 |
Income Taxes - Uncertain Tax Po
Income Taxes - Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits including interest and penalties | $ 3,700 | $ 3,600 | |
Interest and penalties | 200 | 200 | $ 100 |
Schedule reconciliation of gross unrecognized tax benefits | |||
Beginning balance | 3,486 | 3,490 | 5,006 |
Additions as a result of tax provisions taken during the current year | 463 | 213 | 357 |
Subtractions as a result of tax provisions taken during the prior year | (161) | (150) | (126) |
Foreign currency translation | (79) | (8) | (45) |
Lapse in statute of limitations | (241) | (59) | (63) |
Settlements | 0 | 0 | (1,729) |
Other | 1 | 0 | 0 |
Ending balance | 3,469 | 3,486 | 3,490 |
Unrecognized tax benefits that would impact effective tax rate | 3,300 | $ 3,200 | $ 3,200 |
Decrease in unrecognized tax benefits is reasonably possible in next 12 months | $ 100 |
Accrued Compensation (Details)
Accrued Compensation (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | |
Components of Accrued Compensation | |||
Accrued social insurance | [1] | $ 18,923 | $ 19,941 |
Accrued salary/wages | 7,549 | 6,114 | |
Accrued vacation/holiday | 2,227 | 2,222 | |
Accrued bonus | [2] | 5,914 | 8,492 |
Accrued commission | 1,084 | 1,797 | |
Accrued medical insurance claims | 218 | 236 | |
Other accrued compensation | 1,537 | 1,854 | |
Total accrued compensation | 37,452 | 40,656 | |
Accrued salaries - 13th month salaries | $ 700 | $ 600 | |
[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, 2015 and 2014. | ||
[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 $0.7 million and $0.6 million at December 31, 2015 and 2014, respectively. |
Other Accrued Expenses (Details
Other Accrued Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Payables and Accruals [Abstract] | |||||
Advertising and marketing | $ 191 | $ 174 | |||
Deferred revenue | 1,434 | 648 | |||
Duties | 1,318 | 947 | |||
Freight and handling fees | 1,942 | 1,522 | |||
Product development | 630 | 751 | |||
Product warranty claim costs | 35 | 353 | $ 41 | $ 404 | |
Professional fees | 1,714 | 1,493 | |||
Property, Plant and Equipment, Current | 551 | 141 | |||
Sales taxes and VAT | 3,170 | 2,057 | |||
Third-party commissions | 585 | 553 | |||
Tooling | [1] | 1,173 | 1,089 | ||
Unrealized loss on foreign currency exchange futures contracts | 1,164 | 113 | |||
URC Court Order, Current | 4,629 | 0 | |||
Utilities | 278 | 275 | |||
Other | 2,652 | 3,242 | |||
Total other accrued expenses | 21,466 | 13,358 | |||
JAP Techno Solutions | Related Party Fees Paid | |||||
Related Party Transactions [Line Items] | |||||
Fees paid to related party | $ 77 | $ 39 | |||
[1] | The tooling accrual balance relates to unearned revenue for tooling that will be sold to customers. |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Rent expense | $ 3,600 | $ 3,700 | $ 3,500 |
Liability related to rent escalations | 1,100 | $ 1,100 | |
Allowance for moving expenses and tenant improvements | 1,500 | ||
Future minimum non-cancelable operating lease payments | |||
2,016 | 3,183 | ||
2,017 | 2,767 | ||
2,018 | 2,164 | ||
2,019 | 1,281 | ||
2,020 | 1,198 | ||
Thereafter | 2,389 | ||
Total operating lease commitments | $ 12,982 | ||
Property subject to rent escalations | Minimum [Member] | |||
Operating Leased Assets [Line Items] | |||
Term of lease | 48 months | ||
Property subject to rent escalations | Maximum [Member] | |||
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 (Detail
Leases - Prepaid Leases (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)factory | Dec. 31, 2014USD ($) | |
Operating Leased Assets [Line Items] | ||
Net book value of asset | $ 90,015 | $ 76,135 |
People's Republic of China [Member] | ||
Operating Leased Assets [Line Items] | ||
Number of factories | factory | 2 | |
Guangzhou | ||
Operating Leased Assets [Line Items] | ||
Net book value of prepaid lease | $ 1,200 | |
Prepaid lease assets, remaining amortization period | 15 years | |
Guangzhou | Buildings on Prepaid Land | ||
Operating Leased Assets [Line Items] | ||
Net book value of asset | $ 12,400 | |
Asset, remaining depreciable period | 16 years | |
Yangzhou | ||
Operating Leased Assets [Line Items] | ||
Net book value of prepaid lease | $ 2,700 | |
Prepaid lease assets, remaining amortization period | 43 years | |
Yangzhou | Buildings on Prepaid Land | ||
Operating Leased Assets [Line Items] | ||
Net book value of asset | $ 22,300 | |
Asset, remaining depreciable period | 24 years |
Commitments and Contingencies -
Commitments and Contingencies - Fair Price Provisions (Details) | Dec. 31, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |
Percentage of voting stock required for approval | 66.66% |
Commitments and Contingencies84
Commitments and Contingencies - Warranty (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in the liability for product warranty claim costs | |||
Balance at beginning of period | $ 353 | $ 41 | $ 404 |
Accruals for warranties issued during the period | 23 | 1,178 | 416 |
Settlements (in cash or in kind) during the period | (341) | (866) | (779) |
Balance at end of period | $ 35 | $ 353 | $ 41 |
Commitments and Contingencies85
Commitments and Contingencies - Gain and Loss Contingencies (Details) $ in Thousands | Sep. 04, 2015USD ($) | Jun. 10, 2015subsidiarypatentcustomer | Jun. 28, 2013patent | Mar. 02, 2012patent | Jan. 31, 2016claimpatent | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Contingencies [Line Items] | |||||||
URC Court Order, Current | $ | $ 4,629 | $ 0 | |||||
Patent Lawsuit Against Universal Remote Control [Member] | |||||||
Contingencies [Line Items] | |||||||
Litigation Settlement, Amount | $ | $ 4,600 | ||||||
Patent Lawsuit Against Universal Remote Control [Member] | Pending Litigation [Member] | |||||||
Contingencies [Line Items] | |||||||
Gain contingency, patents allegedly infringed upon, number | 10 | 4 | |||||
Patent Lawsuit Against Universal Remote Control [Member] | All Claims Denied for Review by USPTO [Member] | Subsequent event | |||||||
Contingencies [Line Items] | |||||||
Gain Contingency, Patents Found Infringed upon, Number | claim | 4 | ||||||
Patent Lawsuit Against Universal Remote Control [Member] | All Claims Accepted for Review by USPTO [Member] | Subsequent event | |||||||
Contingencies [Line Items] | |||||||
Gain contingency, patents allegedly infringed upon, number | 6 | ||||||
Patent Lawsuit Against UEBV and Telenet [Member] | Pending Litigation [Member] | |||||||
Contingencies [Line Items] | |||||||
Loss Contingency, Number of Subsidiaries Named in Lawsuit | subsidiary | 1 | ||||||
Loss Contingency, Number of Customers Named in Lawsuit | customer | 1 | ||||||
Surety Bond [Member] | |||||||
Contingencies [Line Items] | |||||||
Restricted Cash | $ | $ 4,600 | ||||||
Design Patents [Member] | Patent Lawsuit Against UEBV and Telenet [Member] | Pending Litigation [Member] | |||||||
Contingencies [Line Items] | |||||||
Loss contingency, patents allegedly infringed, number | 2 | ||||||
Utility Patent [Member] | Patent Lawsuit Against UEBV and Telenet [Member] | Pending Litigation [Member] | |||||||
Contingencies [Line Items] | |||||||
Loss contingency, patents allegedly infringed, number | 1 |
Commitments and Contingencies86
Commitments and Contingencies - Defined Benefit Plan (Details) - India subsidiary | 12 Months Ended |
Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Percentage of employees eligible for benefits | 45.00% |
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 ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 10, 2016 | |
Equity [Abstract] | ||||
Shares available for repurchase (in shares) | 300,000 | |||
Shares repurchased (in shares) | 1,817,000 | 384,000 | 153,000 | |
Cost of shares repurchased | $ 89,395 | $ 16,168 | $ 3,607 | |
Treasury stock reissued (in shares) | 15,000 | 30,000 | ||
Subsequent event | ||||
Class of stock [Line Items] | ||||
Stock repurchase program, additional number of shares authorized | 100,000 | |||
Stock repurchase program, number of shares authorized to be repurchased | 400,000 |
Business Segment and Foreign 88
Business Segment and Foreign Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | $ 162,110 | $ 160,467 | $ 147,551 | $ 132,705 | $ 138,389 | $ 147,780 | $ 146,315 | $ 129,845 | $ 602,833 | $ 562,329 | $ 529,354 |
United States [Member] | |||||||||||
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | 287,678 | 201,579 | 195,308 | ||||||||
Asia (excluding PRC) [Member] | |||||||||||
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | 109,960 | 129,614 | 107,886 | ||||||||
People's Republic of China [Member] | |||||||||||
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | 74,475 | 98,057 | 89,918 | ||||||||
Europe [Member] | |||||||||||
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | 65,579 | 70,663 | 72,852 | ||||||||
Latin America [Member] | |||||||||||
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | 38,985 | 38,912 | 35,179 | ||||||||
All Other Countries [Member] | |||||||||||
Schedule of Revenues from Geographical Segments [Line Items] | |||||||||||
Net sales | $ 26,156 | $ 23,504 | $ 28,211 |
Business Segment and Foreign 89
Business Segment and Foreign Operations - Long-lived Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | $ 95,380 | $ 81,606 |
United States [Member] | ||
Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 7,015 | 5,716 |
People's Republic of China [Member] | ||
Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | 83,794 | 70,619 |
All Other Countries [Member] | ||
Long-Lived Assets [Line Items] | ||
Long-lived tangible assets | $ 4,571 | $ 5,271 |
Stock-Based Compensation - Expe
Stock-Based Compensation - Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 7,913 | $ 6,444 | $ 5,342 |
Income tax benefit | 2,366 | 1,897 | 1,575 |
Cost of sales | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 39 | 16 | 1 |
Research and development | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 428 | 323 | 226 |
Employees | Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 5,946 | 4,927 | 4,494 |
Outside directors | Selling, general and administrative | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 1,500 | $ 1,178 | $ 621 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average fair value of grants | $ 24.47 | $ 13.64 | $ 9.26 |
Risk-free interest rate | 1.39% | 1.29% | 0.95% |
Expected volatility | 43.36% | 44.84% | 53.39% |
Expected life in years | 4 years 6 months 25 days | 4 years 6 months 21 days | 5 years 2 months 12 days |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options and Restricted Stock Narrative (Details) - USD ($) $ in Thousands | Feb. 10, 2016 | Jan. 01, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Proceeds from stock options exercised | $ 1,712 | $ 8,122 | $ 12,371 | ||
Tax benefit from stock options exercised | $ 500 | $ 3,100 | $ 2,300 | ||
Options granted (in shares) | 77,000 | 133,000 | 201,000 | ||
Restricted stock granted (in shares) | 138,000 | 155,000 | 196,000 | ||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Maximum [Member] | |||||
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] | |||||
Modification expense | $ 0 | $ 0 | $ 0 | ||
Unrecognized pre-tax stock-based compensation expense | $ 2,100 | ||||
Unrecognized pre-tax stock-based compensation expense, period for recognition | 1 year 9 months 18 days | ||||
Stock options | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Stock options | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Non-vested restricted stock award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized pre-tax stock-based compensation expense | $ 10,700 | ||||
Unrecognized pre-tax stock-based compensation expense, period for recognition | 2 years 1 month 6 days | ||||
Non-vested restricted stock award | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Non-vested restricted stock award | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Subsequent event | Certain Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 93,135 | ||||
Subsequent event | Non-executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Options granted (in shares) | 150,000 | ||||
Subsequent event | Stock options | Certain Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Options grant date fair value | $ 1,800 | ||||
Subsequent event | Stock options | Certain Executive Employees | Percent Vesting on January 1, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 33.33% | ||||
Subsequent event | Stock options | Certain Executive Employees | Quarterly Vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 8.33% | ||||
Subsequent event | Stock options | Non-executives [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Options grant date fair value | $ 2,600 | ||||
Subsequent event | Stock options | Non-executives [Member] | Percent Vesting on February 10, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 33.33% | ||||
Subsequent event | Non-vested restricted stock award | Certain Executive Employees | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted stock granted (in shares) | 34,060 | ||||
Restricted stock, grant date fair value (in dollars per share) | $ 1,800 | ||||
Subsequent event | Non-vested restricted stock award | Certain Executive Employees | Percent Vesting on January 1, 2017 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 33.33% | ||||
Subsequent event | Non-vested restricted stock award | Certain Executive Employees | Quarterly Vesting | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting rights percentage | 8.33% |
Stock-Based Compensation - Opti
Stock-Based Compensation - Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Number of Options | ||||
Outstanding at beginning of the year | 650 | 924 | 1,412 | |
Granted | 77 | 133 | 201 | |
Exercised | (71) | (391) | (679) | |
Forfeited/canceled/expired | (8) | (16) | (10) | |
Outstanding at end of the year | 648 | 650 | 924 | |
Vested and expected to vest at the end of the year | 648 | 649 | 921 | |
Exercisable at the end of the year | 493 | 421 | 671 | |
Weighted-Average Exercise Price | ||||
Outstanding at beginning of the year | $ 25.56 | $ 22.04 | $ 20.56 | |
Granted | 64.81 | 35.28 | 19.68 | |
Exercised | 23.97 | 20.76 | 18.22 | |
Forfeited/canceled/expired | 20.64 | 20.77 | 24.75 | |
Outstanding at end of the year | 30.50 | 25.56 | 22.04 | |
Vested and expected to vest at the end of the year | 30.50 | 25.57 | 22.05 | |
Exercisable at the end of the year | $ 25.03 | $ 23.84 | $ 22.62 | |
Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value | ||||
Outstanding at beginning of the year | 4 years 10 months 5 days | 5 years 7 months 2 days | 6 years 1 month 3 days | |
Vested and expected to vest at the end of the year | 4 years 10 months 5 days | 5 years 6 months 28 days | 6 years 28 days | |
Exercisable at the end of the year | 4 years 6 months 3 days | 4 years 10 months 13 days | 5 years 1 month 20 days | |
Exercised | $ 2,193 | $ 10,651 | $ 8,355 | |
Outstanding at end of the year | [1] | 14,556 | 25,653 | 14,854 |
Vested and expected to vest at the end of the year | [1] | 14,551 | 25,618 | 14,791 |
Exercisable at the end of the year | [1] | $ 12,979 | $ 17,345 | $ 10,388 |
[1] | The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of 2015, 2014, and 2013 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, 2015, 2014, and 2013. This amount will change based on the fair market value of our stock. |
Stock-Based Compensation - Exer
Stock-Based Compensation - Exercise Price Range (Details) - $ / shares shares in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Outstanding - Number Outstanding | 648 | 650 | 924 | 1,412 |
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | 4 years 10 months 5 days | 5 years 7 months 2 days | 6 years 1 month 3 days | |
Options Outstanding - Weighted-Average Exercise Price | $ 30.50 | $ 25.56 | $ 22.04 | $ 20.56 |
Options Exercisable - Number Exercisable | 493 | 421 | 671 | |
Options Exercisable - Weighted-Average Exercise Price | $ 25.03 | $ 23.84 | $ 22.62 | |
$17.60 to $21.95 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Range Limit | 17.60 | |||
Range of Exercise Prices, Upper Range Limit | $ 21.95 | |||
Options Outstanding - Number Outstanding | 279 | |||
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | 5 years 3 months 25 days | |||
Options Outstanding - Weighted-Average Exercise Price | $ 20.23 | |||
Options Exercisable - Number Exercisable | 257 | |||
Options Exercisable - Weighted-Average Exercise Price | $ 20.26 | |||
24.91 to 29.25 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Range Limit | 24.91 | |||
Range of Exercise Prices, Upper Range Limit | $ 29.25 | |||
Options Outstanding - Number Outstanding | 163 | |||
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | 3 years 3 months 3 days | |||
Options Outstanding - Weighted-Average Exercise Price | $ 27.99 | |||
Options Exercisable - Number Exercisable | 163 | |||
Options Exercisable - Weighted-Average Exercise Price | $ 27.99 | |||
35.28 to 35.35 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Range Limit | 35.28 | |||
Range of Exercise Prices, Upper Range Limit | $ 35.35 | |||
Options Outstanding - Number Outstanding | 128 | |||
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | 5 years 17 days | |||
Options Outstanding - Weighted-Average Exercise Price | $ 35.28 | |||
Options Exercisable - Number Exercisable | 73 | |||
Options Exercisable - Weighted-Average Exercise Price | $ 35.28 | |||
51.38 to 65.54 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of Exercise Prices, Lower Range Limit | 51.38 | |||
Range of Exercise Prices, Upper Range Limit | $ 65.54 | |||
Options Outstanding - Number Outstanding | 78 | |||
Options Outstanding - Weighted-Average Remaining Years of Contractual Life | 6 years 2 months 1 day | |||
Options Outstanding - Weighted-Average Exercise Price | $ 64.81 | |||
Options Exercisable - Number Exercisable | 0 | |||
Options Exercisable - Weighted-Average Exercise Price | $ 0 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Shares Granted | |||
Non-vested at beginning of period | 266 | 285 | 270 |
Shares granted (in shares) | 138 | 155 | 196 |
Shares Vested | (178) | (171) | (178) |
Shares Forfeited | (1) | (3) | (3) |
Non-vested at end of period | 225 | 266 | 285 |
Weighted-Average Grant Date Fair Value | |||
Weighted-Average Grant Date Fair Value Non-vested at beginning of period | $ 39.28 | $ 24.64 | $ 18.72 |
Weighted-Average Grant Date Fair Value Granted | 53.64 | 51.29 | 28.86 |
Weighted-Average Grant Date Fair Value Vested | 35.09 | 25.78 | 20.44 |
Weighted-Average Grant Date Fair Value Forfeited | 63.19 | 37.78 | 15.49 |
Weighted-Average Grant Date Fair Value Non-vested at end of period | $ 51.31 | $ 39.28 | $ 24.64 |
Stock-Based Compensation - Info
Stock-Based Compensation - Information by Plan (Details) | 12 Months Ended |
Dec. 31, 2015shares | |
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) | 835,039 |
Outstanding Shares Granted Under the Plan (in shares) | 872,831 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Maximum [Member] | |
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 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
Stock options | Maximum [Member] | |
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 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 1 year |
Non-vested restricted stock award | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 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) | 3,400 |
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) | 20,500 |
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) | 480 |
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) | 63,241 |
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) | 0 |
Outstanding Shares Granted Under the Plan (in shares) | 196,357 |
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) | 13,219 |
Outstanding Shares Granted Under the Plan (in shares) | 379,673 |
2014 Stock Incentive Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Initial Shares Available for Grant Under the Plan (in shares) | 1,100,000 |
Remaining Shares Available for Grant Under the Plan (in shares) | 821,820 |
Outstanding Shares Granted Under the Plan (in shares) | 209,180 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other Income and Expenses [Abstract] | ||||
Net gain (loss) on foreign currency exchange contracts | [1] | $ 294 | $ (491) | $ 888 |
Net gain (loss) on foreign currency exchange transactions | (522) | (363) | (4,155) | |
Other income | 221 | 14 | 98 | |
Other income (expense), net | $ (7) | $ (840) | $ (3,169) | |
[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 ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
BASIC | |||||||||||||||||||
Net income attributable to Universal Electronics | $ 9,339 | $ 6,271 | $ 8,375 | $ 5,189 | $ 8,902 | $ 10,871 | $ 8,488 | $ 4,273 | $ 29,174 | $ 32,534 | $ 22,963 | ||||||||
Weighted-average common shares outstanding (in shares) | 15,248 | 15,781 | 15,248 | ||||||||||||||||
Basic earnings per share attributable to Universal Electronics Inc. (in dollars per share) | $ 0.65 | [1] | $ 0.42 | [1] | $ 0.53 | [1] | $ 0.33 | [1] | $ 0.56 | [1] | $ 0.69 | [1] | $ 0.54 | [1] | $ 0.27 | [1] | $ 1.91 | $ 2.06 | $ 1.51 |
DILUTED | |||||||||||||||||||
Net income attributable to Universal Electronics | $ 9,339 | $ 6,271 | $ 8,375 | $ 5,189 | $ 8,902 | $ 10,871 | $ 8,488 | $ 4,273 | $ 29,174 | $ 32,534 | $ 22,963 | ||||||||
Weighted-average common shares outstanding (in shares) | 15,248 | 15,781 | 15,248 | ||||||||||||||||
Dilutive effect of stock options and restricted stock (in shares) | 294 | 371 | 353 | ||||||||||||||||
Weighted-average common shares outstanding on a diluted basis (in shares) | 15,542 | 16,152 | 15,601 | ||||||||||||||||
Diluted earnings per share attributable to Universal Electronics Inc. (in dollars per share) | $ 0.64 | [1] | $ 0.41 | [1] | $ 0.52 | [1] | $ 0.32 | [1] | $ 0.55 | [1] | $ 0.68 | [1] | $ 0.53 | [1] | $ 0.26 | [1] | $ 1.88 | $ 2.01 | $ 1.47 |
[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 - Antidiluti
Earnings Per Share - Antidilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 66 | 52 | 366 |
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 | 28 | 10 | 18 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - Fair value measurements, recurring - Foreign currency exchange futures contracts - Not designated as hedging instrument - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Estimate of fair value | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange futures contracts fair value | $ (1,146) | $ (810) |
(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 | (1,146) | (810) |
(Level 3) | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency exchange futures contracts fair value | $ 0 | $ 0 |
Derivatives - Narrative (Detail
Derivatives - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Maximum Remaining Maturity of Foreign Currency Derivatives | 9 months | |||
Net gain (loss) on foreign currency exchange contracts | [1] | $ 294 | $ (491) | $ 888 |
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 | $ 300 | $ (500) | $ 900 | |
[1] | This represents the gains and (losses) incurred on foreign currency hedging derivatives (see Note 19 for further details). |
Derivatives - Contracts Held (D
Derivatives - Contracts Held (Details) - Not designated as hedging instrument - Foreign currency exchange futures contracts $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)BRL / $¥ / $$ / € | Dec. 31, 2014USD ($)BRL / $¥ / $$ / € | ||
Euro | Future Contract 1 | |||
Derivative [Line Items] | |||
Notional Value | $ 7,000 | $ 5,000 | |
Forward Rate | $ / € | 1.0864 | 1.245 | |
Gain/(Loss) Recorded at Balance Sheet Date | [1] | $ (7) | $ 140 |
Chinese Yuan Renminbi | |||
Derivative [Line Items] | |||
Notional Value | $ 22,500 | $ 20,000 | |
Forward Rate | ¥ / $ | 6.2565 | 6.2757 | |
Gain/(Loss) Recorded at Balance Sheet Date | [1] | $ (1,100) | $ 174 |
Brazilian Real | Future Contract 1 | |||
Derivative [Line Items] | |||
Notional Value | $ 1,000 | $ 5,000 | |
Forward Rate | BRL / $ | 3.7461 | 2.3401 | |
Gain/(Loss) Recorded at Balance Sheet Date | [1] | $ (57) | $ 609 |
Brazilian Real | Future Contract 2 | |||
Derivative [Line Items] | |||
Notional Value | $ 3,000 | $ 2,500 | |
Forward Rate | BRL / $ | 3.9503 | 2.54420 | |
Gain/(Loss) Recorded at Balance Sheet Date | [1] | $ 18 | $ (113) |
[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 ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 0.9 | $ 0.8 | $ 0.7 |
Business Combination - Addition
Business Combination - Additional Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Aug. 31, 2015 | |
Business Acquisition [Line Items] | |||
Contingent consideration | $ 11,751 | $ 0 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 600 | ||
Ecolink Intelligent Technology, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Purchase price | 24,100 | ||
Cash consideration | 12,949 | ||
Contingent consideration | 11,200 | ||
Acquisition costs | 200 | ||
Fair value of noncontrolling interest | 378 | ||
Net sales since acquisition date | 1,600 | ||
Net loss since acquisition date | $ 1,000 | ||
Period of recognition for earnout payment to Acquiree (in years) | 5 years | ||
Increase in amortization and fair value used to compute pro forma net income and net income attributable to Universal Electronics | $ 1,300 | $ 2,300 | |
Ecolink Intelligent Technology, Inc. [Member] | Income Approach Valuation Technique [Member] | Contingent Consideration [Member] | |||
Business Acquisition [Line Items] | |||
Fair value inputs, discount rate | 15.50% | ||
Ecolink Intelligent Technology, Inc. [Member] | Encore Controls LLC [Member] | Variable Interest Entity, Primary Beneficiary [Member] | |||
Business Acquisition [Line Items] | |||
Acquired ownership interest of Acquiree's subsidiary (percentage) | 50.00% | ||
Aggregated fair value of net assets acquired | $ 700 | ||
Fair value of noncontrolling interest | $ 400 |
Business Combination Business C
Business Combination Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Aug. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Goodwill, Acquired During Period | [1] | $ 12,564 | |||
Goodwill | 43,116 | $ 30,739 | $ 31,000 | ||
Less: Contingent consideration | $ (11,751) | $ 0 | |||
Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 1 year | ||||
Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 15 years | ||||
Developed Technology [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 5 years | ||||
Developed Technology [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 15 years | ||||
Customer Relationships [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 10 years | ||||
Customer Relationships [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 15 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 685 | ||||
Accounts receivable | 374 | ||||
Inventories | 1,412 | ||||
Prepaid expenses and other current assets | 253 | ||||
Property, plant and equipment | 16 | ||||
Non-interest bearing liabilities | (1,557) | ||||
Net tangible assets acquired | 1,183 | ||||
Total purchase price | 24,527 | ||||
Noncontrolling interest | (378) | ||||
Net purchase price | 24,149 | ||||
Less: Contingent consideration | (11,200) | ||||
Cash paid | $ 12,949 | ||||
Ecolink Intelligent Technology, Inc. [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment, estimated useful life | 1 year | ||||
Ecolink Intelligent Technology, Inc. [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Property, plant and equipment, estimated useful life | 4 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 400 | $ 400 | |||
Intangible asset, estimated useful life | 7 years | 7 years | |||
Ecolink Intelligent Technology, Inc. [Member] | Developed Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 9,100 | $ 9,080 | |||
Ecolink Intelligent Technology, Inc. [Member] | Developed Technology [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 4 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Developed Technology [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible asset, estimated useful life | 14 years | ||||
Ecolink Intelligent Technology, Inc. [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,300 | $ 1,300 | |||
Intangible asset, estimated useful life | 5 years | 5 years | |||
[1] | During 2015, we recognized $12.6 million of goodwill related to the Ecolink Intelligent Technology, Inc. acquisition. Please refer to Note 21 for further information about this acquisition. |
Business Combination - Pro Form
Business Combination - Pro Forma Results (Details) - Ecolink Intelligent Technology, Inc. [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Net sales | $ 606,872 | $ 569,804 |
Net income | 28,947 | 31,861 |
Net income attributable to Universal Electronics, Inc. | $ 28,886 | $ 31,456 |
Basic earnings per share attributable to Universal Electronics, Inc. (in dollars per share) | $ 1.89 | $ 1.99 |
Diluted earnings per share attributable to Universal Electronics, Inc. (in dollars per share) | $ 1.86 | $ 1.95 |
Quarterly Financial Data (Un107
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||
Net sales | $ 162,110 | $ 160,467 | $ 147,551 | $ 132,705 | $ 138,389 | $ 147,780 | $ 146,315 | $ 129,845 | $ 602,833 | $ 562,329 | $ 529,354 | ||||||||
Gross profit | 46,251 | 42,809 | 40,280 | 37,409 | 41,681 | 45,115 | 43,558 | 36,546 | 166,749 | 166,900 | 151,462 | ||||||||
Operating income | 10,383 | 9,033 | 10,400 | 6,103 | 9,831 | 13,785 | 11,674 | 5,990 | 35,919 | 41,280 | 32,154 | ||||||||
Net income | 9,335 | 6,274 | 8,375 | 5,189 | 8,902 | 10,871 | 8,488 | 4,273 | |||||||||||
Net income attributable to Universal Electronics Inc. | $ 9,339 | $ 6,271 | $ 8,375 | $ 5,189 | $ 8,902 | $ 10,871 | $ 8,488 | $ 4,273 | $ 29,174 | $ 32,534 | $ 22,963 | ||||||||
Earnings per share attributable to Universal Electronics Inc.: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.65 | [1] | $ 0.42 | [1] | $ 0.53 | [1] | $ 0.33 | [1] | $ 0.56 | [1] | $ 0.69 | [1] | $ 0.54 | [1] | $ 0.27 | [1] | $ 1.91 | $ 2.06 | $ 1.51 |
Diluted (in dollars per share) | $ 0.64 | [1] | $ 0.41 | [1] | $ 0.52 | [1] | $ 0.32 | [1] | $ 0.55 | [1] | $ 0.68 | [1] | $ 0.53 | [1] | $ 0.26 | [1] | $ 1.88 | $ 2.01 | $ 1.47 |
[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. |
Subsequent Event - Additional D
Subsequent Event - Additional Disclosures (Details) - Common Stock Purchase Warrant - Subsequent event | Mar. 09, 2016USD ($)vesting_period$ / sharesshares |
Subsequent Event [Line Items] | |
Number of shares called by warrants | shares | 725,000 |
Exercise price of warrants (in dollars per share) | $ / shares | $ 54.55 |
Number of vesting periods | vesting_period | 3 |
Term of successive vesting periods (in years) | 2 years |
Vesting period one (in years) | 2 years |
Total vesting period (in years) | 6 years |
Supply Threshold | |
Subsequent Event [Line Items] | |
Supply threshold level one, amount | $ 260,000,000 |
Supply threshold level three, amount | 340,000,000 |
Supply threshold, amount | $ 1,020,000,000 |
Subsequent Event - Purchase Lev
Subsequent Event - Purchase Level and Number of Warrants to Vest (Details) - Common Stock Purchase Warrant - Supply Threshold - Subsequent event | Mar. 09, 2016USD ($)shares |
Subsequent Event [Line Items] | |
Supply threshold level one, amount | $ | $ 260,000,000 |
Supply threshold level two, amount | $ | 300,000,000 |
Supply threshold level three, amount | $ | $ 340,000,000 |
Incremental warrants that will vest, vesting period one, supply threshold level one | 100,000,000 |
Incremental warrants that will vest, vesting period one, supply threshold level two | 75,000,000 |
Incremental warrants that will vest, vesting period one, supply threshold level three | 75,000,000 |
Maximum potential warrants that will vest, vesting period one | 250,000,000 |
Incremental warrants that will vest, vesting period two, supply threshold level one | 100,000,000 |
Incremental warrants that will vest, vesting period two, supply threshold level two | 75,000,000 |
Incremental warrants that will vest, vesting period two, supply threshold level three | 75,000,000 |
Maximum potential warrants that will vest, vesting period two | 250,000,000 |
Incremental warrants that will vest, vesting period three, supply threshold level one | 75,000,000 |
Incremental warrants that will vest, vesting period three, supply threshold level two | 75,000,000 |
Incremental warrants that will vest, vesting period three, supply threshold level three | 75,000,000 |
Maxiumum potential warrants that will vest, vesting period three | 225,000,000 |