Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 26, 2015 | Mar. 03, 2016 | Jun. 26, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | FORMFACTOR INC. | ||
Entity Central Index Key | 1,039,399 | ||
Current Fiscal Year End Date | --12-26 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 26, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 58,912,756 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 363,290,833 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 146,264 | $ 113,940 |
Marketable securities | 41,325 | 49,897 |
Accounts receivable, net | 36,725 | 45,152 |
Inventories, net | 27,223 | 25,548 |
Deferred tax assets | 0 | 2,036 |
Refundable income taxes | 0 | 782 |
Prepaid expenses and other current assets | 6,481 | 6,919 |
Total current assets | 258,018 | 244,274 |
Restricted cash | 435 | 435 |
Property, plant and equipment, net | 23,853 | 25,498 |
Goodwill | 30,731 | 30,731 |
Intangibles, net | 25,552 | 38,689 |
Deferred tax assets | 3,281 | 3,466 |
Other assets | 853 | 1,150 |
Total assets | 342,723 | 344,243 |
Current liabilities: | ||
Accounts payable | 18,072 | 20,274 |
Accrued liabilities | 21,507 | 21,217 |
Income taxes payable | 110 | 68 |
Deferred revenue | 3,892 | 6,303 |
Total current liabilities | 43,581 | 47,862 |
Long-term income taxes payable | 1,069 | 1,094 |
Deferred tax liabilities | 0 | 2,208 |
Deferred rent and other liabilities | 3,392 | 3,643 |
Total liabilities | $ 48,042 | $ 54,807 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
10,000,000 shares authorized; no shares issued and outstanding at December 26, 2015 and December 27, 2014 | $ 0 | $ 0 |
250,000,000 shares authorized; 58,088,969 and 56,518,428 shares issued and outstanding at December 26, 2015 and December 27, 2014, respectively | 58 | 57 |
Additional paid-in capital | 718,904 | 711,676 |
Accumulated other comprehensive loss | (2,222) | (1,761) |
Accumulated deficit | (422,059) | (420,536) |
Total stockholders' equity | 294,681 | 289,436 |
Total liabilities and stockholders' equity | $ 342,723 | $ 344,243 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Dec. 26, 2015 | Dec. 27, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value (Per Share) | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized (Shares) | 10,000,000 | 10,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 250,000,000 | 250,000,000 |
Common Stock, Shares, Issued | 58,088,969 | 56,518,428 |
Common Stock, Shares, Outstanding | 58,088,969 | 56,518,428 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Income Statement [Abstract] | |||
Revenues | $ 282,358 | $ 268,530 | $ 231,533 |
Cost of revenues | 196,620 | 191,091 | 189,249 |
Gross profit | 85,738 | 77,439 | 42,284 |
Operating expenses: | |||
Research and development | 44,184 | 42,725 | 42,139 |
Selling, general and administrative | 45,090 | 51,385 | 53,217 |
Restructuring charges, net | 559 | 2,668 | 4,658 |
Loss on sale of subsidiary | 0 | 0 | 300 |
Impairment of long-lived assets | 8 | 1,219 | 761 |
Total operating expenses | 89,841 | 97,997 | 101,075 |
Operating loss | (4,103) | (20,558) | (58,791) |
Interest income, net | 285 | 302 | 386 |
Other income, net | 2,547 | 161 | 623 |
Loss before income taxes | (1,271) | (20,095) | (57,782) |
Provision (benefit) from income taxes | 252 | (910) | (99) |
Net loss | $ (1,523) | $ (19,185) | $ (57,683) |
Net loss per share: | |||
Basic and diluted (usd per share) | $ (0.03) | $ (0.34) | $ (1.06) |
Weighted-average number of shares used in per share calculations: | |||
Basic and diluted (in shares) | 57,850 | 55,908 | 54,204 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (1,523) | $ (19,185) | $ (57,683) |
Foreign currency translation adjustments | (397) | (1,502) | (1,825) |
Unrealized losses on available-for-sale marketable securities | (64) | (10) | (139) |
Other comprehensive loss, net of tax | (461) | (1,512) | (1,964) |
Comprehensive loss | $ (1,984) | $ (20,697) | $ (59,647) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Balances at Dec. 29, 2012 | $ 339,258 | $ 54 | $ 681,157 | $ 1,715 | $ (343,668) |
Balances (in shares) at Dec. 29, 2012 | 53,286,703 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash | 106 | $ 0 | 106 | 0 | 0 |
Issuance of common stock pursuant to exercise of options for cash (in shares) | 20,000 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld | (4) | $ 0 | (4) | 0 | 0 |
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld (in shares) | 759,724 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 2,502 | $ 1 | 2,501 | 0 | 0 |
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 583,173 | ||||
Stock-based compensation | 11,871 | $ 0 | 11,871 | 0 | 0 |
Stock Issued During Period (in shares) | 0 | ||||
Components of other comprehensive income (loss): | |||||
Change in unrealized gain (loss) on marketable securities, net of tax | (139) | $ 0 | 0 | (139) | 0 |
Foreign currency translation adjustments | (1,825) | 0 | 0 | (1,825) | 0 |
Net loss | (57,683) | 0 | 0 | 0 | (57,683) |
Balances at Dec. 28, 2013 | 294,086 | $ 55 | 695,631 | (249) | (401,351) |
Balances (in shares) at Dec. 28, 2013 | 54,649,600 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash | 0 | $ 0 | 0 | 0 | 0 |
Issuance of common stock pursuant to exercise of options for cash (in shares) | 0 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld | 1 | $ 1 | 0 | 0 | 0 |
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld (in shares) | 1,282,442 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 2,812 | $ 1 | 2,811 | 0 | 0 |
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 586,386 | ||||
Stock-based compensation | 13,234 | $ 0 | 13,234 | 0 | 0 |
Stock Issued During Period (in shares) | 0 | ||||
Components of other comprehensive income (loss): | |||||
Change in unrealized gain (loss) on marketable securities, net of tax | (10) | $ 0 | 0 | (10) | 0 |
Foreign currency translation adjustments | (1,502) | 0 | 0 | (1,502) | 0 |
Net loss | (19,185) | 0 | 0 | 0 | (19,185) |
Balances at Dec. 27, 2014 | $ 289,436 | $ 57 | 711,676 | (1,761) | (420,536) |
Balances (in shares) at Dec. 27, 2014 | 56,518,428 | 56,518,428 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock pursuant to exercise of options for cash | $ 209 | $ 0 | 209 | 0 | 0 |
Issuance of common stock pursuant to exercise of options for cash (in shares) | 24,607 | ||||
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld | 2 | $ 2 | 0 | 0 | 0 |
Issuance of common stock pursuant to vesting of restricted stock units, net of stock withheld (in shares) | 1,993,603 | ||||
Issuance of common stock under the Employee Stock Purchase Plan | 3,206 | $ 0 | 3,206 | 0 | 0 |
Purchase and retirement of common stock (in shares) | (1,013,162) | ||||
Purchase and retirement of common stock | (8,211) | $ (1) | (8,210) | 0 | 0 |
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 565,493 | ||||
Stock-based compensation | 12,023 | $ 0 | 12,023 | 0 | 0 |
Stock Issued During Period (in shares) | 0 | ||||
Components of other comprehensive income (loss): | |||||
Change in unrealized gain (loss) on marketable securities, net of tax | (64) | $ 0 | 0 | (64) | 0 |
Foreign currency translation adjustments | (397) | 0 | 0 | (397) | 0 |
Net loss | (1,523) | 0 | 0 | 0 | (1,523) |
Balances at Dec. 26, 2015 | $ 294,681 | $ 58 | $ 718,904 | $ (2,222) | $ (422,059) |
Balances (in shares) at Dec. 26, 2015 | 58,088,969 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Cash flows from operating activities: | |||
Net loss | $ (1,523) | $ (19,185) | $ (57,683) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 23,771 | 30,491 | 28,909 |
(Accretion) amortization of discount on investments | (10) | 208 | 463 |
Stock-based compensation expense | 11,575 | 13,279 | 12,124 |
Deferred income tax (benefit) provision | (14) | 230 | 445 |
Provision (recovery) for doubtful accounts receivable | 18 | 1 | (19) |
Provision for excess and obsolete inventories | 6,493 | 7,127 | 10,461 |
(Gain) loss on disposal and write-off of long-lived assets | (1,009) | (10) | 365 |
Impairment of long-lived assets | 8 | 1,219 | 761 |
Loss on sale of subsidiary | 0 | 0 | 300 |
Non-cash restructuring | 500 | 600 | 2,743 |
Foreign currency transaction (gains) losses | (275) | 2,489 | 620 |
Changes in assets and liabilities: | |||
Accounts receivable | 8,261 | (15,949) | (2,102) |
Inventories | (8,167) | (11,975) | (7,980) |
Prepaid expenses and other current assets | 173 | (822) | 3,557 |
Refundable income taxes | 782 | 0 | 5,143 |
Other assets | 250 | 25 | 138 |
Accounts payable | (2,036) | 4,155 | (2,324) |
Accrued liabilities | (333) | 7,765 | (2,474) |
Income taxes payable | 19 | (1,511) | (346) |
Deferred rent and other liabilities | 52 | 248 | 83 |
Deferred revenues | (2,413) | (726) | 1,014 |
Net cash provided by (used in) operating activities | 36,122 | 17,659 | (5,802) |
Cash flows from investing activities: | |||
Acquisition of property, plant and equipment | (8,640) | (5,670) | (8,530) |
Proceeds (use of cash) from sale of subsidiary | 53 | 115 | (210) |
Proceeds from sale of intellectual property and property, plant and equipment | 1,200 | 1,114 | 61 |
Purchases of marketable securities | (66,234) | (31,693) | (91,338) |
Proceeds from maturities of marketable securities | 74,750 | 73,473 | 90,385 |
Proceeds from sale of marketable securities | 0 | 0 | 2,000 |
Change in restricted cash | 0 | 0 | (118) |
Net cash provided by (used in) investing activities | 1,129 | 37,339 | (7,750) |
Cash flows from financing activities: | |||
Proceeds from issuances of common stock | 3,418 | 2,813 | 2,602 |
Purchase and retirement of common stock | (8,210) | 0 | 0 |
Payments made on capital leases | 0 | (271) | (603) |
Net cash (used in) provided by financing activities | (4,792) | 2,542 | 1,999 |
Effect of exchange rate changes on cash and cash equivalents | (135) | (2,796) | (1,494) |
Net increase (decrease) in cash and cash equivalents | 32,324 | 54,744 | (13,047) |
Cash and cash equivalents, beginning of year | 113,940 | 59,196 | 72,243 |
Cash and cash equivalents, end of year | 146,264 | 113,940 | 59,196 |
Non-cash investing and financing activities: | |||
Changes in accounts payable and accrued liabilities related to property, plant and equipment purchases | 361 | (122) | 1,528 |
Supplemental disclosure of cash flow information: | |||
Income and property taxes paid (refunded), net | $ 27 | $ 950 | $ (6,152) |
Formation and Business of the C
Formation and Business of the Company | 12 Months Ended |
Dec. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Formation and Business of the Company | Formation and Business of the Company FormFactor, Inc. ("FormFactor" or the "Company" and also referred to as "we" or "our") was incorporated in Delaware on April 15, 1993 and designs, develops, manufactures, sells and supports precision, high performance advanced semiconductor probe card products. We are based in Livermore, California, which is our corporate office, research and development center, and one of our manufacturing locations. We have facilities in the United States, Singapore, Japan, Taiwan, South Korea, Germany, Italy and the People's Republic of China. Fiscal Year Our fiscal year ends on the last Saturday in December. The fiscal years ended on December 26, 2015 , December 27, 2014 and December 28, 2013 , respectively, consisted of 52 weeks each. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity under “Accumulated other comprehensive income (loss).” Certain other of our foreign subsidiaries use the U.S. Dollar as their functional currency. Accordingly, monetary assets and liabilities in non-functional currencies of these subsidiaries are remeasured using exchange rates in effect at the end of the period. Revenues and costs in local currency are remeasured using average exchange rates for the period, except for costs related to those balance sheet items that are remeasured using historical exchange rates. The resulting remeasurement gains and losses are included in the Consolidated Statements of Operations as incurred. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Estimates may change as new information is obtained. We believe that the estimates, assumptions and judgments involved in revenue recognition, fair value of marketable securities, allowance for doubtful accounts, reserves for product warranty, valuation of obsolete and slow moving inventory, assets acquired and liabilities assumed in business combinations, legal contingencies, valuation of goodwill, the assessment of recoverability of long-lived assets, valuation and recognition of stock-based compensation, provision for income taxes and valuation of deferred tax assets have the greatest potential impact on our consolidated financial statements. Actual results could differ from those estimates. Business Acquisitions Our consolidated financial statements include the operations of an acquired business after the completion of the acquisition. We account for acquired businesses using the acquisition method of accounting. The acquisition method of accounting for acquired businesses requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles including in-process research and development (IPR&D) be recorded on the balance sheet. Also, transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill. Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We generally classify our marketable securities at the date of acquisition as available-for-sale. These securities are reported at fair value with the related unrealized gains and losses included in "Accumulated other comprehensive income (loss)", a component of stockholder's equity, net of tax. Any unrealized losses which are considered to be other-than-temporary impairments are recorded in "Other income, net" in the Consolidated Statements of Operations. Realized gains (losses) on the sale of marketable securities are determined using the specific-identification method and recorded in "Other income, net" in the Consolidated Statements of Operations. All of our available-for-sale investments are subject to a periodic impairment review. We record a charge to earnings when a decline in fair value is significantly below cost basis and judged to be other-than-temporary, or have other indicators of impairments. If the fair value of an available-for-sale investment is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) we intend to sell the instrument, (2) it is more likely than not that we will be required to sell the instrument before recovery of its amortized cost basis or (3) a credit loss exists where we do not expect to recover the entire amortized cost basis of the instrument. If we intend to sell or it is more likely than not that we will be required to sell the available-for-sale investment before recovery of its amortized cost basis, we recognize an other-than- temporary impairment charge equal to the entire difference between the investment's amortized cost basis and its fair value. Fair Value of Financial Instruments We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of the Company's cash, cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their carrying amounts due to the relatively short maturity of these items. Estimates of fair value of our marketable securities are based on quoted market prices from active markets or third party, market-based pricing sources which we believe to be reliable. These estimates represent the third parties' good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets; • Level 2 inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations are based on unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures. Gains and losses resulting from the impact of currency exchange rate movements on forward foreign exchange contracts designated to offset certain foreign currency balance sheet exposures are recognized as "Other income, net" in the Consolidated Statements of Operations in the period in which the exchange rates change. These gains and losses are intended to partially offset the foreign currency exchange gains and losses on the underlying exposures being hedged. We record the fair value of these contracts as of the end of our reporting period in the Consolidated Balance Sheet. We do not use derivative financial instruments for trading or speculative purposes. Restricted Cash Under the terms of one of our facility leases, we provide security to the landlord in the form of letters of credit. As of December 26, 2015 and December 27, 2014 , restricted cash included $0.4 million , respectively, for letters of credit secured by a certificate of deposit. Inventories Inventories are stated at the lower of cost (principally standard cost which approximates actual cost on a first-in, first-out basis) or market value. The provision for potentially excess and obsolete inventory is made based on management's analysis of inventory levels and forecasted future sales. On a quarterly basis, we review inventory quantities on hand and on order under non-cancelable purchase commitments in comparison to our past usage and estimated forecast of product demand for the next six to twelve months to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. Once the value is adjusted, the original cost of our inventory less the related inventory write-down represents the new cost basis of such products. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of "Cost of revenues" in the Consolidated Statements of Operations. We design, manufacture and sell a fully custom product into a market that has been subject to cyclicality and significant demand fluctuations. Probe cards are complex products, custom to a specific chip design and have to be delivered on short lead-times. Probe cards are manufactured in low volumes, but for certain materials, the purchases are often subject to minimum order quantities in excess of the actual underlying probe card demand. It is not uncommon for us to acquire production materials and commence production activities based on estimated production yields and forecasted demand prior to or in excess of actual demand for our probe cards. These factors result in normal recurring inventory valuation adjustments to cost of revenues. Aggregate inventory write downs were $6.5 million , $7.1 million and $10.5 million for fiscal 2015 , 2014 and 2013 , respectively. When our products have been delivered, but the revenue associated with that product is deferred because the related revenue recognition criteria have not been met, we may defer the related inventory costs. The deferred inventory costs do not exceed the deferred revenue amounts. The deferred inventory costs are classified as a component of "Prepaid expenses and other current assets" in the Consolidated Balance Sheet. Property, Plant, and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line method over the following estimated useful lives of the assets: 1 to 5 years for machinery and equipment, 1 to 5 years for computer equipment and software and 1 to 5 years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization, are removed from the balance sheet and the resulting gain or loss is reflected in operations. Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Since our acquisition of MicroProbe in Fiscal 2012, we had historically operated in one reportable segment consisting of two operating segments and for the purposes of our goodwill impairment analysis, we had two reporting units, all of which related to our FormFactor and MicroProbe product groups. During the fourth quarter of fiscal 2015, we determined that we now operate in one reportable segment consisting of one operating segment and for the purposes of our goodwill impairment analysis, we further concluded that we now have one reporting unit, all of which relates to the design, development, manufacture and sale of high performance advanced probe cards as a result of the successful integration of the MicroProbe business into our overall consolidated operations. The Company first assesses qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. If an entity determines as a result of the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. The performance of the quantitative impairment test involves a two-step process. The first step of the impairment test involves comparing the fair value of the applicable reporting unit with its aggregate carrying value, including goodwill. We generally determine the fair value of our reporting unit using a combination of the income approach (that includes the use of the discounted cash flow method) and the market approach (guideline company approach) valuation methodologies. If the carrying amount of a reporting unit exceeds the fair value of that reporting unit, we perform the second step of the quantitative impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. During the fourth quarter of fiscal 2015 , we performed our annual goodwill impairment test prior to and subsequent to the change in our reporting unit structure by assessing qualitative factors and we concluded that our goodwill was not impaired as of December 26, 2015 . Our qualitative review included, among other factors, an assessment of our market capitalization which was significantly higher than our book value. No impairment charges associated with our goodwill were recorded during fiscal 2014 and 2013 . Refer to Note 8 to Notes to Consolidated Financial Statements - Goodwill and Intangible Assets for further details. Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized, over 1 to 10 years. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. Impairment of Long-Lived Assets We test long-lived assets or asset groups such as property, plant and equipment and intangible assets for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. Recoverability is assessed based on the carrying amounts of the asset or asset group and the sum of the undiscounted cash flows expected to result from the use and the eventual disposal of the asset. An impairment loss is recognized when the carrying amount is not recoverable and exceeds fair value. Refer to Note 6 to Notes to Consolidated Financial Statements - Impairment of Long-lived Assets , for additional information. Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and trade receivables. Our cash equivalents and marketable securities are held in safekeeping by large, credit worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. We market and sell our products to a narrow base of customers and generally do not require collateral. The following customers represented greater than 10% of our revenues in fiscal 2015 , fiscal 2014 and fiscal 2013 : Fiscal 2015 Fiscal 2014 Fiscal 2013 Intel 19.6 % 19.7 % 17.7 % Samsung 14.6 * * SK hynix 14.3 16.9 16.5 Micron 11.7 15.0 11.7 Total 60.2 % 51.6 % 45.9 % * Less than 10% of revenues At December 26, 2015 , one customer accounted for 29% of gross accounts receivable. At December 27, 2014 , two customers accounted for 26% and 18% of gross accounts receivable. We operate in the intensely competitive semiconductor industry, including the Dynamic Random Access Memory, or DRAM, Flash memory, and System-on-Chip, or SoC markets, which have been characterized by price erosion, rapid technological change, short product life cycles and heightened foreign and domestic competition. Significant technological changes in the industry could adversely affect our operating results. We are exposed to non-performance risk by counterparties on the currency forward exchange contracts used in hedging activities. We seek to minimize risk by diversifying our hedging program across multiple financial institutions. These counterparties are large international financial institutions, and to date no such counterparty has failed to meet its financial obligations to us. Certain components for our wafer probe card products that meet our requirements are available only from a limited number of suppliers. The rapid rate of technological change and the necessity of developing and manufacturing products with short life cycles may intensify our reliance on such suppliers. The inability to obtain components as required, or to develop alternative sources, if and as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on our business, financial condition, results of operations or cash flows. Revenue Recognition We recognize revenue when persuasive evidence of a sales arrangement exists, title and risk of loss has transferred to the customer, the selling price is fixed or determinable and collection of the related receivable is reasonably assured. In instances where final acceptance of the deliverable is specified by the customer, revenue is deferred until all acceptance criteria have been met. Revenues from the licensing of our design and manufacturing technology, which have not been material to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled. Warranty Obligations We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Operations as a cost of revenues. A reconciliation of the changes in our warranty liability is as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Balance at beginning of year $ 1,592 $ 691 Accruals 2,536 2,972 Settlements (3,012 ) (2,071 ) Balance at end of year $ 1,116 $ 1,592 Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred. Allowance for Doubtful Accounts The majority of our trade receivables are derived from sales to large multinational semiconductor manufacturers throughout the world. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense. The allowance for doubtful accounts receivable consisted of the following activity for fiscal years 2015 , 2014 and 2013 (in thousands): Balance at Beginning of Year Additions Reductions Balance at End of Year Fiscal year ended December 28, 2013 $ 289 $ — $ (24 ) $ 265 Fiscal year ended December 27, 2014 265 5 (4 ) 266 Fiscal year ended December 26, 2015 $ 266 $ 20 $ (2 ) $ 284 Restructuring Charges Restructuring charges include costs related to employee termination benefits, cost of long-lived assets abandoned or impaired, as well as contract termination costs. The determination of when we accrue for employee termination benefits depends on whether the termination benefits are provided under a one-time benefit arrangement or under an on-going benefit arrangement. For restructuring charges recorded as an on-going benefit arrangement, a liability for post-employment benefits is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. For restructuring charges recorded as a one-time benefit arrangement, we recognize a liability for employee termination benefits when a plan of termination, approved by management and establishing the terms of the benefit arrangement, has been communicated to employees. The timing of the recognition of one-time employee termination benefits is dependent upon the period of time the employees are required to render service after communication. If employees are not required to render service in order to receive the termination benefits or if employees will not be retained to render service beyond the minimum legal notification period, a liability for the termination benefits is recognized at the communication date. In instances where employees will be retained to render service beyond the minimum legal notification period, the liability for employee termination benefits is measured initially at the communication date based on the fair value of the liability as of the termination date and is recognized ratably over the future service period. We continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives. We record charges related to long-lived assets to be abandoned when the assets cease to be used. When we cease using a building or other asset with remaining non-cancelable lease payments continuing beyond our use period, we record a liability for remaining payments under lease arrangements and contract termination costs that continue for the remaining term without economic benefit to us at the cease-use date. Given the significance of, and the timing of the execution of such activities, this process is complex and involves periodic reassessments of estimates made at the time the original decisions were made, including evaluating real estate market conditions for expected vacancy periods and sub-lease rents. Although we believe that these estimates accurately reflect the costs of our restructuring plans, actual results may differ, thereby requiring us to record additional provisions or reverse a portion of such provisions. The Company recorded restructuring charges of $0.6 million , $2.7 million and $4.7 million for fiscal years 2015 , 2014 and 2013 , respectively. Refer to Note 4, Restructuring Charges in Notes to Consolidated Financial Statements for further details. Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative losses and our ability to carryback losses against prior taxable income and, commensurate with objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. We recognize and measure uncertain tax positions taken or expected to be taken in a tax return if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. We report a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. We adjust these reserves in light of changing facts and circumstances, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate, as well as the related net interest. We recognize interest and penalties related to unrecognized tax benefits within the income tax provision. Accrued interest and penalties are included within the related tax liability caption line in the consolidated balance sheet. We file annual income tax returns in multiple taxing jurisdictions around the world. A number of years may elapse before an uncertain tax position is audited and finally resolved. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our reserves for income taxes reflect the most likely outcome. We adjust these reserves, as well as the related interest, in light of changing facts and circumstances. Settlement of any particular position could require the use of cash. Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statement of Operations. The fair value of stock options is measured using the Black-Scholes option pricing model while the fair value for restricted stock awards and restricted stock units is measured based on the closing market price of our common stock on the date of grant. Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed giving effect to all potential dilutive common stock, including stock options, restricted stock units and common stock subject to repurchase. Diluted loss per share was based only on the weighted-average number of shares outstanding during that period as the inclusion of any common stock equivalents would have been anti-dilutive. A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share is as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Numerator: Net loss used in computing basic and diluted net loss per share $ (1,523 ) $ (19,185 ) $ (57,683 ) Denominator: Weighted-average shares used in computing basic net loss per share 57,850 55,908 54,204 Add potentially dilutive securities — — — Weighted-average shares used in computing basic and diluted net loss per share 57,850 55,908 54,204 The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Options to purchase common stock 2,320 2,874 3,805 Restricted stock units 2,578 — 373 Employee stock purchase plan 8 28 22 Total potentially dilutive securities 4,906 2,902 4,200 Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes foreign currency translation adjustments and unrealized losses on available-for-sale securities net of tax, the impact of which has been excluded from earnings and reflected as components of stockholders' equity. Components of accumulated other comprehensive loss was as follows (in thousands): December 26, 2015 December 27, 2014 Unrealized loss on marketable securities, net of tax of $428 in fiscal 2015 and fiscal 2014, respectively $ (483 ) $ (419 ) Cumulativ |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 26, 2015 | |
Balance Sheet Components [Abstract] | |
Balance Sheet Components | Balance Sheet Components Marketable Securities Marketable securities at December 26, 2015 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 18,896 $ 1 $ (44 ) $ 18,853 Agency securities (Federal) 22,484 — (12 ) 22,472 $ 41,380 $ 1 $ (56 ) $ 41,325 Marketable securities at December 27, 2014 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 42,386 $ 13 $ (4 ) $ 42,395 Agency securities (Federal) 7,502 — — 7,502 $ 49,888 $ 13 $ (4 ) $ 49,897 We classify our marketable securities as available-for-sale. All marketable securities represent the investment of funds available for current operations, notwithstanding their contractual maturities. Such marketable securities are recorded at fair value and unrealized gains and losses are recorded in accumulated other comprehensive income until realized. We typically invest in highly-rated securities with low probabilities of default. Our investment policy requires investments to be rated single-A or better, limits the types of acceptable investments, concentration as to security holder and duration of the investment. The gross unrealized losses on the Company's investments in fiscal 2015 and 2014 , respectively, were caused primarily by changes in interest rates. Our investment portfolio consists of both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. We anticipate recovering the full cost of the securities either as market conditions improve, or as the securities mature. Accordingly, we believe that the unrealized losses are not other-than-temporary. When evaluating the investments for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below the amortized cost basis, review of current market liquidity, interest rate risk, the financial condition of the issuer, as well as credit rating downgrades. As of December 26, 2015 and December 27, 2014 , none of our investments had been in a continuous loss position for 12 months or more. The contractual maturities of marketable securities as of December 26, 2015 and December 27, 2014 were as follows (in thousands): December 26, 2015 December 27, 2014 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 33,882 $ 33,871 $ 38,499 $ 38,509 Due after one year to five years 7,498 7,454 11,389 11,388 $ 41,380 $ 41,325 $ 49,888 $ 49,897 Realized gains on sales or maturities of marketable securities were immaterial for each of the fiscal years 2015 , 2014 , and 2013 . Asset Retirement Obligations We account for the fair value of a liability for an asset retirement obligation to be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made. The fair value of the liability is added to the carrying amount of the associated asset and this additional carrying amount is amortized over the life of the asset. Our asset retirement obligation is associated with our commitment to return property subject to operating leases in the People's Republic of China, Taiwan, South Korea, Singapore and Japan to their original condition upon lease termination. We have estimated that as of December 26, 2015 , gross expected future cash flows of $0.9 million would be required to fulfill these obligations. The carrying amount of a majority of the leasehold improvements resulting from asset retirement obligations were fully amortized by fiscal 2013 and over the original term of the related leases. Leasehold improvements amortization expense was immaterial for each of fiscal years 2015 and 2014 . The following is a reconciliation of the aggregate asset retirement liability associated with our commitment to return property to its original condition upon lease termination (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Asset retirement obligation beginning balance $ 903 $ 988 Initial amount recorded for new asset retirement obligation 10 — Currency translation 6 (85 ) Asset retirement obligation ending balance $ 919 $ 903 The aggregate asset retirement liability was further classsified in the Consolidated Balance Sheets as (in thousands): Other accrued liabilities, current $ 212 $ — Deferred rent and other liabilities, non-current 707 903 $ 919 $ 903 Inventories Net inventories consisted of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Raw materials $ 12,996 $ 10,646 Work-in-progress 12,492 12,813 Finished goods 1,735 2,089 $ 27,223 $ 25,548 Property, Plant and Equipment Property, plant and equipment consisted of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Machinery and equipment 150,983 145,995 Computer equipment and software 27,951 28,953 Furniture and fixtures 5,380 5,402 Leasehold improvements 67,121 66,821 Sub-total 251,435 247,171 Less: Accumulated depreciation and amortization (232,005 ) (224,135 ) Net long-lived assets 19,430 23,036 Construction-in-progress 4,423 2,462 Total $ 23,853 $ 25,498 In fiscal 2015 and 2014 , we ceased use of fully depreciated assets with an acquired cost of $1.6 million and $6.6 million , respectively. As discussed in Note 6 to the Notes to Consolidated Financial Statements - Impairment of Long-lived Assets , in fiscal 2015 , long-lived asset impairment charges recorded were insignificant. In fiscal 2014 and 2013 , we recorded impairment charges of $1.2 million and $0.8 million , respectively, for manufacturing assets and software that we no longer utilize. Depreciation and amortization of property, plant and equipment, excluding the impairments charges discussed above, for the fiscal years 2015 , 2014 and 2013 was $10.6 million , $11.7 million and $12.2 million , respectively. Accrued Liabilities Accrued liabilities consisted of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Accrued compensation and benefits $ 12,286 $ 12,431 Accrued indirect and other taxes 2,189 2,223 Accrued commissions 366 460 Accrued warranty 1,116 1,592 Deferred rent 325 216 Accrued restructuring 2 584 Other accrued expenses 5,223 3,711 $ 21,507 $ 21,217 |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 26, 2015 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges Restructuring charges include costs related to employee termination benefits, cost of long-lived assets abandoned or impaired, as well as contract termination costs. Restructuring charges are reflected separately as "Restructuring charges, net" in the Consolidated Statements of Operations. A summary of the actions we have taken during fiscal 2015 , 2014 , and 2013 , the purpose of which were to improve operating efficiency, streamline and simplify our operations and reduce our operating costs, are discussed below. 2015 Restructuring Activities During fiscal 2015, we recorded restructuring charges of approximately $0.6 million which included stock-based compensation expense of approximately $0.5 million relating to the modification of an equity-based award. All other restructuring charges recorded in fiscal 2015 were insignificant. 2014 Restructuring Activities On January 27, 2014, we announced a global organizational restructuring and cost reduction plan. As part of the plan, the Company eliminated 52 full-time employees. In addition, we reduced our temporary workforce by 9 positions. We recorded $2.0 million of restructuring charges during the first quarter of fiscal 2014, which was comprised of $1.4 million in severance and related benefits and $0.6 million in impairment charges for certain equipment that would no longer be utilized. During the remainder of fiscal 2014, we further eliminated an additional 5 full-time positions and recorded $0.7 million in severance charges. The activities comprising these restructuring activities were substantially completed in fiscal 2014 and the remaining cash payments associated with these activities were paid in fiscal 2015. 2013 Restructuring Activities I n the first fiscal quarter of 2013, we implemented a restructuring plan which resulted in the reduction of our global workforce by 31 employees across the organization. In addition, we reduced our temporary workforce by approximately 20 positions. We also suspended development activities and engineering efforts for our next generation DRAM Matrix platform and terminated development activities for a certain SoC product platform. We recorded $4.0 million of restructuring charges during the first fiscal quarter of 2013, which was comprised of $1.3 million in severance and related benefits and $2.7 million in impairment charges for certain equipment that would no longer be utilized. I n the fourth fiscal quarter of 2013, we implemented a restructuring plan which resulted in the reduction of our global workforce by 17 full-time employees across the organization. In addition, we reduced our temporary workforce by 17 positions. We recorded $0.4 million of restructuring charges during the fourth fiscal quarter of 2013 for severance and related benefits. The above activities comprising the reduction in workforce were completed in fiscal 2013. The remaining cash payments as of December 28, 2013 associated with the various reductions in workforce were paid in fiscal 2014. The following table summarizes the activities related to the restructuring actions from fiscal 2013 to 2015 (in thousands): Employee Property and Equipment Impairment Contract Total Accrual at December 31, 2012 $ 548 $ — $ 68 $ 616 Restructuring charges 2,083 2,743 15 4,841 Asset impairments — (2,743 ) — (2,743 ) Adjustments to restructuring charges (178 ) (5 ) — (183 ) Cash payments (2,320 ) (32 ) (17 ) (2,369 ) Non-cash settlements 5 37 (66 ) (24 ) Accrual at December 28, 2013 138 — — 138 Restructuring charges 2,068 600 — 2,668 Asset impairments — (600 ) — (600 ) Cash payments (1,620 ) — — (1,620 ) Non-cash settlements (2 ) — — (2 ) Accrual at December 27, 2014 584 — — 584 Restructuring charges 59 — 500 559 Cash payments (641 ) — — (641 ) Non-cash settlements — — (500 ) (500 ) Accrual at December 26, 2015 $ 2 $ — $ — $ 2 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We operate and sell our products in various global markets. As a result, we are exposed to changes in foreign currency exchange rates. We utilize foreign currency forward contracts to hedge against future movements in foreign exchange rates that affect certain existing foreign currency denominated assets and liabilities. Under this program, our strategy is to have increases or decreases in our foreign currency exposures offset by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses. We do not use derivative financial instruments for speculative or trading purposes. Our derivative instruments are not designated as hedging instruments for accounting purposes. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. We record the fair value of these contracts as of the end of our reporting period to our Consolidated Balance Sheet with changes in fair value recorded within " Other income, net " in our Consolidated Statement of Operations for both realized and unrealized gains and losses. As of December 26, 2015 , there were three outstanding foreign exchange forward contracts, one contract to sell Japanese Yen and two contracts to buy Korean Won and Taiwan Dollars. The following tables provide information about our foreign currency forward contracts outstanding as of December 26, 2015 and December 27, 2014 (in thousands): December 26, 2015 Contract Position Contract Amount Contract Amount (In thousands) Japanese Yen Sell 3,328,268 $ 27,635 Taiwan Dollar Buy (37,152 ) (1,136 ) Korean Won Buy (840,111 ) (718 ) Total USD notional amount of outstanding foreign exchange contracts $ 25,781 December 27, 2014 Contract Position Contract Amount Contract Amount (In thousands) Japanese Yen Sell 1,955,798 $ 16,241 Taiwan Dollar Buy (30,886 ) (977 ) Korean Won Buy (1,763,054 ) (1,613 ) Total USD notional amount of outstanding foreign exchange contracts $ 13,651 The contracts outstanding at December 26, 2015 were entered into on December 24, 2015 and matured on January 26, 2016 for the Japanese Yen, Korean Won and Taiwan Dollar. Our foreign currency contracts are classified within Level 2 of the fair value hierarchy as they are valued using pricing models that utilize observable market inputs. There was no change in the value of these contracts as of December 26, 2015 . Additionally, no gains or losses relating to the outstanding derivative contracts as of December 26, 2015 and December 27, 2014 were recorded during their respective fiscal periods. The location and amount of gains (losses) related to non-designated derivative instruments that matured in fiscal 2015 and 2014 in the Consolidated Statements of Operations are as follows (in thousands): Fiscal Years Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized December 26, 2015 December 27, 2014 Foreign exchange forward contracts Other Income, net $ (310 ) $ 1,768 |
Impairment of Long-lived Assets
Impairment of Long-lived Assets | 12 Months Ended |
Dec. 26, 2015 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Impairment of Long-lived Assets | Impairment of Long-lived Assets The following table summarizes the components of the impairments that we recorded in fiscal 2015 , 2014 and 2013 (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Impairment of long-lived assets: Assets held for sale $ — $ 191 $ — Assets to be disposed of other than by sale 8 1,028 761 Total $ 8 $ 1,219 $ 761 Assets held for sale In fiscal 2015 , we did not record any impairment charge on assets held for sale and there were no long-lived assets classified as held for sale as of December 26, 2015 . During fiscal 2014 , we reclassified $0.6 million of building and $0.5 million of machinery and equipment from "Property, plant and equipment, net" to "Prepaid expenses and other current assets" in our Consolidated Balance Sheet as these assets were identified as held for sale. In the same fiscal year, we recorded a gain of $0.2 million and $52.0 thousand on the sale of the building and machinery and equipment, respectively. In addition, we also recorded a $0.2 million impairment charge related to machinery and equipment which was held for sale. There were no long-lived assets classified as held for sale as of December 27, 2014 . In fiscal 2013 , we did not record any impairment charge on assets held for sale. These impairments were included within "Impairment of long-lived assets" in the Consolidated Statement of Operations for their respective periods. Assets to be disposed of other than by sale In fiscal 2015 , long-lived asset impairment charges recorded were insignificant. In fiscal 2014 and 2013 , we recorded impairment charges of $1.2 million and $0.8 million , respectively, for manufacturing assets and software that we no longer utilize. All of these charges are included in "Impairment of long-lived assets" in the Consolidated Statements of Operations for their respective periods. Refer to Note 8 to the Notes to Consolidated Financial Statements - Goodwill and Intangible Assets for further details relating to our intangible long-lived assets. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value We use fair value measurements to record adjustments to certain financial and non-financial assets and to determine fair value disclosures. The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities, approximate fair value because of their short maturities. Our marketable securities are financial assets recorded at fair value on a recurring basis. The accounting standards for fair value defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The standard describes a fair value hierarchy based on three levels of inputs, the first two of which are considered observable and the last unobservable. We apply the following fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Inputs, other than the quoted prices in active markets, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. We obtain the fair value of our Level 1 investments in certain money market funds, at the expected market price. These investments are expected to maintain a net asset value of $1 per share. We determine the fair value of our Level 2 financial instruments from several third party asset managers, custodian banks, and the accounting service providers. Independently, these service providers use professional pricing services to gather pricing data, which may include quoted market prices for identical or comparable instruments or inputs other than quoted prices that are observable either directly or indirectly. We utilize the market approach to measure the fair value of our fixed income securities. The market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. The fair value of our fixed income securities is obtained using readily-available market prices from a variety of industry standard data providers, large financial institutions and other third-party sources for the identical underlying securities. Our fair value processes include controls that are designed to ensure appropriate fair values are recorded. Such controls include model validation, review of key model inputs, analysis of period-over-period fluctuations and independent recalculation of prices. Assets Measured at Fair Value on a Recurring Basis We measure and report certain assets and liabilities at fair value on a recurring basis, including money market funds, U.S. Treasury securities, agency securities and foreign currency derivatives (refer to Note 5 to Notes to Consolidated Financial Statements - Derivative Financial Instruments for a discussion of fair value of foreign currency derivatives). Fair values measured on a recurring basis as of December 26, 2015 (in thousands): Level 1 Level 2 Total Assets: Cash equivalents Money market funds $ 82,935 $ — $ 82,935 Marketable securities U.S. Treasuries — 18,853 18,853 Agency securities (Federal) — 22,472 22,472 Total $ 82,935 $ 41,325 $ 124,260 Fair values measured on a recurring basis as of December 27, 2014 (in thousands): Level 1 Level 2 Total Assets: Cash equivalents Money market funds $ 65,303 $ — $ 65,303 Marketable securities U.S. Treasuries — 42,395 42,395 Agency securities (Federal) — 7,502 7,502 Total $ 65,303 $ 49,897 $ 115,200 The Level 1 assets consist of our money market fund deposits. The Level 2 assets consist of our available-for-sale investment portfolio, which are valued utilizing a market approach. Our investments are priced by pricing vendors who provided observable inputs for their pricing without applying significant judgment. Broker pricing is used mainly when a quoted price is not available, the investment is not priced by our pricing vendors or when a broker price is more reflective of fair values in the market in which the investment trades. Our broker-priced investments are labeled as Level 2 investments because fair values of these investments are based on similar assets without applying significant judgments. In addition, all of our investments have a sufficient level of trading volume to demonstrate that the fair values used are appropriate for these investments. We did not have any transfers of assets measured at fair value on a recurring basis to or from Level 1 and Level 2 during fiscal 2015 and 2014 . Assets Measured at Fair Value on a Non-recurring Basis We measure and report goodwill and intangible assets at fair value on a non-recurring basis. Refer to Note 8 to Notes to Consolidated Financial Statements - Goodwill and Intangible Assets , for further details. There were no assets measured at fair value on a non-recurring basis during fiscal 2015 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill of $30.7 million as of December 26, 2015 remained unchanged from the amounts recorded as of December 27, 2014 . For the purposes of our goodwill impairment analysis and since our acquisition of MicroProbe in Fiscal 2012, we had historically two reporting units, all of which related to our FormFactor and MicroProbe product groups. During the fourth quarter of fiscal 2015, we determined that we now have one reporting unit relating to the design, development, manufacture and sale of high performance advanced probe cards as a result of the successful integration of the MicroProbe business into our overall consolidated operations. During the fourth quarter of fiscal 2015 , we performed our annual goodwill impairment test prior to and subsequent to the change in our reporting unit structure by assessing qualitative factors and we concluded that our goodwill was not impaired as of December 26, 2015 . Our qualitative review included, among other factors, an assessment of our market capitalization which was significantly higher than our book value. During the fourth quarter of fiscal 2014 , we also performed our annual goodwill impairment test by an assessment of qualitative factors and concluded that our goodwill was not impaired as December 27, 2014 . Furthermore, the Company has not recorded any historical goodwill impairments as of December 26, 2015 . The evaluation of goodwill and intangible assets for impairment requires the exercise of significant judgment. In the event of future changes in business conditions, we will be required to reassess and update our forecasts and estimates used in future impairment analyses. If the results of these analyses are lower than current estimates, a material impairment charge may result at that time. The changes in intangible assets for fiscal 2015 and the net book value of intangible assets at December 26, 2015 and December 27, 2014 were as follows (in thousands): Intangible Assets, Gross Amount Accumulated Amortization Intangible Assets, Net Weight Average Useful Life Other Intangible Assets (1) December 27, 2014 Additions/Disposals December 26, 2015 December 27, 2014 Expense, net December 26, 2015 December 27, 2014 December 26, 2015 December 26, 2015 Existing developed technologies (2) $ 45,300 $ 6,900 $ 52,200 $ 29,097 $ 10,484 $ 39,581 $ 16,203 $ 12,619 2.0 Trade name 4,388 — 4,388 970 439 1,409 3,418 2,979 6.8 Customer relationships 17,000 — 17,000 4,832 2,214 7,046 12,168 9,954 4.8 Total finite-lived intangible assets 66,688 6,900 73,588 34,899 13,137 48,036 31,789 25,552 In-process research and development 6,900 (6,900 ) — — — — 6,900 — Total intangible assets $ 73,588 $ — $ 73,588 $ 34,899 $ 13,137 $ 48,036 $ 38,689 $ 25,552 (1) Excludes fully amortized intangible assets. (2) As of December 26, 2015, we excluded approximately $5.9 million of fully amortized existing developed technology intangible assets from gross intangible assets and accumulated amortization due to the sale of these intangible assets to MarTek Inc. These intangible assets were fully amortized as of December 27, 2014 but were in use until their sale to MarTek Inc. Refer to Note 9 in Notes to Consolidated Financial Statements- Commitments and Contingencies , for further details. During the year ended December 26, 2015 , purchased in-process research and development ("IPR&D") projects with carrying values of $6.9 million were completed and reclassified to finite-lived intangible assets, and are currently being amortized over their remaining estimated weighted average useful lives of 2.8 years as of December 26, 2015 . We recorded $13.1 million , $18.8 million and $16.7 million , in amortization expense related to our intangible assets in fiscal 2015 , 2014 , and 2013 , respectively. Of the total amortization expense for fiscal 2015 , 2014 , and 2013 , $10.4 million , $16.1 million , and $13.8 million were charged to cost of revenues, respectively, and $2.7 million , $2.7 million and $2.9 million were charged to selling, general and administrative expenses, respectively. Based on the carrying value of the finite-lived intangible assets recorded as of December 26, 2015 , and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated annual amortization expense is expected to be as follows (in thousands): Fiscal Year Amount 2016 $ 10,060 2017 4,943 2018 4,666 2019 3,052 2020 2,045 and thereafter 786 Total $ 25,552 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases We lease facilities under non-cancellable operating leases with various expiration dates through 2021. The facilities generally require us to pay property taxes, insurance and maintenance costs. Further, several lease agreements contain rent escalation clauses or rent holidays. For purposes of recognizing minimum rental expenses on a straight-line basis over the terms of the leases, we use the date of initial possession to begin amortization. We have the option to extend or renew most of our leases which may increase the future minimum lease commitments. Rent expense for the fiscal years 2015 , 2014 , and 2013 was $4.9 million , $4.8 million and $4.9 million , respectively. As of December 26, 2015 and December 27, 2014 , we did not lease any equipment under capital leases. The depreciation expense of certain equipment under capital leases was $0.2 million in fiscal 2014 and $0.5 million in fiscal 2013 . Future minimum payments under our non-cancelable operating leases are as follows as of December 26, 2015 (in thousands): Operating Fiscal years: 2016 $ 3,994 2017-2018 7,194 2019-2020 7,064 Thereafter 2,505 Total $ 20,757 Other Contractual Obligations The following table sets forth our commitments to settle other contractual obligations in cash as of December 26, 2015 (in thousands): Payments Due In Fiscal Years 2016 2017-2018 2019-2020 After 2020 Total (In thousands) Purchase obligations $ 20,899 $ 9,580 $ 30 $ — $ 30,509 Purchase obligations are primarily for purchases of inventory and manufacturing related service contracts. For the purposes of this table, purchase obligations are defined as agreements that are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. The expected timing of payment of the obligations discussed above is estimated based on information available to us as of December 26, 2015 . Timing of payments and actual amounts paid may be different depending on the time of receipt of goods or services or changes to agreed-upon amounts for some obligations. The table above excludes our gross liability for unrecognized tax benefits, which totaled $17.0 million as of December 26, 2015 . The timing of any payments which could result from these unrecognized tax benefits will depend upon a number of factors. Accordingly, the timing of payment cannot be estimated and has been excluded from the table above. As of December 26, 2015 , the changes to our uncertain tax positions in the next 12 months, that are reasonably possible, are not expected to have a significant impact on our financial position or results of operations. Environmental Matters We are subject to U.S. Federal, State, local, and foreign governmental laws and regulations relating to the protection of the environment, including those governing the discharge of pollutants into the air and water, the management and disposal of hazardous substances and wastes, the clean-up of contaminated sites and the maintenance of a safe workplace. We believe that we comply in all material respects with the environmental laws and regulations that apply to us, including those of the California Department of Toxic Substances Control, the Bay Area Air Quality Management District, the City of Livermore Water Resources Division, County of Santa Clara Department of Environmental Health, County of San Diego Hazardous Materials Division and Encino Water District, and the California Division of Occupational Safety and Health. We did not receive any notices of violations of environmental laws and regulations in fiscal 2015 , 2014 or 2013 . In the future, we may receive notices of violations of environmental regulations, or otherwise learn of such violations. Environmental contamination or violations may negatively impact our business. Indemnification Arrangements We have entered, and may from time to time in the ordinary course of our business enter, into contractual arrangements with third parties that include indemnification obligations. Under these contractual arrangements, we have agreed to defend, indemnify and/or hold the third party harmless from and against certain liabilities. These arrangements include indemnities in favor of customers in the event that our products or services infringe a third party's intellectual property or cause property or other damages and indemnities in favor of our lessors in connection with facility leasehold liabilities that we may cause. In addition, we have entered into indemnification agreements with our directors and certain of our officers, and our bylaws contain indemnification obligations in favor of our directors, officers and agents. These indemnity arrangements may limit the type of the claim, the total amount that we can be required to be paid in connection with the indemnification obligation and the time within which an indemnification claim can be made. The duration of the indemnification obligation may vary, and for most arrangements, survives the agreement term and is indefinite. We believe that substantially all of our indemnity arrangements provide either for limitations on the maximum potential future payments we could be obligated to make, or for limitations on the types of claims and damages we could be obligated to indemnify, or both. However, it is not possible to determine or reasonably estimate the maximum potential amount of future payments under these indemnification obligations due to the varying terms of such obligations, a lack of history of prior indemnification claims, the unique facts and circumstances involved in each particular contractual arrangement and in each potential future claim for indemnification, and the contingency of any potential liabilities upon the occurrence of events that are not reasonably determinable. We have not had any material requests for indemnification under these arrangements. Our management believes that any liability for these indemnity arrangements would not be material to our accompanying consolidated financial statements. We have not recorded any liabilities for these indemnification arrangements on our consolidated balance sheet as of December 26, 2015 . Legal Matters From time to time, we may be subject to legal proceedings and claims in the ordinary course of business. For the year ended December 26, 2015 , we were not involved in any material legal proceedings. We identify below in "Other Litigation", a proceeding filed in fiscal 2013, which, if not resolved amicably, either (i) includes allegations that could potentially result in a material legal proceeding, or (ii) the cost to defend the allegations through trial could be material. In the future we may become a party to additional legal proceedings that may require us to spend significant resources, including proceedings designed to protect our intellectual property rights. Litigation can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict, and the costs incurred in litigation can be substantial, regardless of outcome. In March 2014, we filed a lawsuit against MarTek, Inc. ("MarTek"), asserting breach of contract, copyright infringement and related claims arising out of a licensing agreement we entered into with MarTek for the use by MarTek of certain intellectual property assets (the “IP”). MarTek asserted counterclaims against us for breach of contract and related claims regarding that license. On July 13, 2015, we entered into an agreement with MarTek under which the parties agreed to dismiss the pending litigation and release each other from any and all claims relating to the license agreement. As part of the agreement, we agreed to sell the IP to MarTek for $2 million , of which $1.2 million was received on July 17, 2015, and the remaining $0.8 million is in the form of a promissory note secured by the IP and scheduled to be repaid by MarTek in two equal tranches on the first and second anniversary of the settlement. We recognized a net gain of approximately $1.0 million (which was classified in our Consolidated Statement of Operations under Other Income, net) from the agreement proceeds of $1.2 million received on July 17, 2015. Other Litigation In August 2013, a former employee filed a class action lawsuit against the Company in the Superior Court of California, alleging violations of California’s wage and hour laws and unfair business practices on behalf of himself and all other similarly situated current and former employees at the Company’s Livermore facilities from August 21, 2009, to the present. On January 4, 2016, the court certified the plaintiff class. The lawsuit is currently proceeding to notice to class members and merits discovery. The Company denies the allegations contained in the lawsuit, and, based on available information, believes it has significant defenses to the allegations of the lawsuit. The Company currently believes that any settlement reached would be an amount that is not material to the Company's financial statements. If the matter is not settled, the Company could incur material attorneys’ fees in defending the lawsuit. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 26, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Preferred Stock We have authorized 10,000,000 shares of undesignated preferred stock, $0.001 par value, none of which is issued and outstanding. Our Board of Directors shall determine the rights, preferences, privileges and restrictions of the preferred stock, including dividends rights, conversion rights, voting rights, terms of redemption, liquidation preferences, sinking fund terms and the number of shares constituting any series or the designation of any series. Common Stock Each share of common stock has the right to one vote. The holders of common stock are also entitled to receive dividends whenever funds are legally available and when declared by the Board of Directors, subject to the prior rights of holders of all classes of stock outstanding having priority rights as to dividends. No dividends have been declared or paid as of December 26, 2015 . Common Stock Repurchase Program On April 16, 2015, our Board of Directors authorized a program to repurchase up to $25.0 million of outstanding common stock. Under the authorized stock repurchase program, we may repurchase shares from time-to-time on the open market. The pace of repurchase activity will depend on levels of cash generation, current stock price and other factors. The stock repurchase program was announced on April 16, 2015 and expires on April 15, 2016. The program may be modified or discontinued at any time. During fiscal 2015 , under this repurchase authorization, we repurchased and retired 1,013,162 shares of common stock for approximately $8.2 million . Repurchased shares are retired upon the settlement of the related trade transactions. Our policy related to repurchases of our common stock is to charge the excess of cost over par value to additional paid-in capital. All repurchases were made in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. Equity Incentive Plan We currently grant equity-based awards under our Equity Incentive Plan (the "2012 Plan") which was approved by our stockholders at our Annual Meeting of Stockholders on April 18, 2012. On May 1, 2015, at our Annual Meeting of Stockholders, our stockholders further approved the amended and restated 2012 Plan which increased the maximum number of shares of common stock authorized for issuance by an additional 4.5 million shares and prohibited the cashing out of stock appreciation rights. Refer to the 2015 Proxy Statement filed with the Securities and Exchange Commission on March 19, 2015 for further details. Restricted stock and restricted stock units granted under the 2012 Plan will generally vest over four years in annual tranches though we also have granted and will continue to grant such awards over a shorter vest term for employee retention purposes. Additionally, restricted shares reduce the shares available for issuance at 1.70 shares for every one share issued. The 2012 Plan also provides for the grant of incentive stock options, nonqualified stock options and stock appreciation rights. The incentive stock options may be granted to our employees and the nonqualified stock options, and all awards other than incentive stock options may be granted to employees, directors and consultants. The exercise price of incentive stock options must be at least equal to the fair market value of common stock on the date of grant. All options granted under the 2012 Plan will generally vest over four years and have a term of ten years, unless otherwise determined by the Compensation Committee of the Board of Directors. Stock appreciation rights granted under the 2012 Plan will generally vest over four years in annual tranches. We have not granted any incentive stock options or stock appreciation rights during fiscal 2015 and 2014 . At December 26, 2015 , there were 5.8 million shares available for grant under the 2012 Plan. Stock Options Stock option activity is set forth below: Outstanding Options Number of Weighted Weighted Aggregate Outstanding at December 27, 2014 2,571,376 10.72 Options granted 456,000 8.42 Options exercised (24,607 ) 8.61 Options canceled (682,574 ) 13.75 Outstanding at December 26, 2015 2,320,195 $ 9.40 2.70 $ 1,146,680 Vested and expected to vest at December 26, 2015 2,320,195 $ 9.40 2.70 $ 1,146,680 Exercisable at December 26, 2015 1,864,861 $ 9.64 1.86 $ 833,552 On February 9, 2015, we granted 450,000 stock options to our Chief Executive Officer with a grant-date fair value of approximately $1.7 million which will be recognized as stock compensation expense ratably over the service period. The following weighted average assumptions were used in the estimated grant-date fair value calculations using the Black-Scholes option pricing model: Stock Options: Dividend yield — % Expected volatility 47.5 % Risk-free interest rate 1.6 % Expected term (in years) 5.5 Restricted Stock Units Restricted stock units are converted into shares of our common stock upon vesting on a one-for-one basis. The vesting of restricted stock units is subject to the employee's continuing service to us. Restricted stock unit activity is set forth below: Number of Weighted Restricted stock units at December 29, 2012 2,228,946 $ 7.66 Granted 1,708,000 5.04 Vested (760,590 ) 8.44 Canceled (246,717 ) 8.18 Restricted stock units at December 28, 2013 2,929,639 5.88 Granted 1,900,000 6.52 Vested (1,282,442 ) 6.30 Canceled (297,151 ) 6.17 Restricted stock units at December 27, 2014 3,250,046 6.07 Granted 1,540,250 8.64 Vested (1,993,603 ) 6.00 Canceled (218,555 ) 6.36 Restricted stock units at December 26, 2015 2,578,138 $ 7.63 On May 28, 2015, we issued 195,000 RSUs to seven senior executives of our company that will vest based on certain market performance criteria. The performance criteria are based on a metric called our Total Shareholder Return (TSR) for the period from April 1, 2015 to March 31, 2017 relative to the TSR of the companies identified as being part of the S&P Semiconductor Select Industry Index (FormFactor peer companies), as of April 1, 2015. The total stock-based compensation cost of approximately $1.5 million will be recognized ratably over the requisite service period. On May 5, 2014, we issued 350,000 RSUs to seven senior executives of our company that will vest based on certain market performance criteria. The performance criteria are based on our TSR for the period from April 1, 2014 to March 31, 2016 relative to the TSR of the companies identified as being part of the S&P Semiconductor Select Industry Index (FormFactor peer companies), as of April 1, 2014. The total stock-based compensation cost of approximately $1.8 million will be recognized ratably over the requisite service period. On May 6, 2013, we issued 355,000 RSUs to seven senior executives and one non-executive of our company that would vest based on certain market performance criteria. The performance criteria were based on our TSR for the period from April 1, 2013 to March 31, 2015 relative to the TSR of the companies identified as being part of the S&P Semiconductor Select Industry Index (FormFactor peer companies), as of April 1, 2013. On April 8, 2015, upon the review of the market performance criteria, our Compensation Committee certified a total earn out of 443,750 RSUs which immediately vested as of that date. The total fair value of restricted stock units vested during fiscal 2015 , 2014 and 2013 was $18.1 million , $8.2 million and $3.9 million , respectively. Employee Stock Purchase Plan Under the 2012 Employee Stock Purchase Plan ("ESPP"), the offering periods are 12 months commencing on February 1 of each calendar year and ending on January 31 of the subsequent calendar year, and a six month fixed offering period commencing on August 1 of each calendar year and ending on January 31 of the subsequent calendar year. The 12 month offering period consists of two six-month purchase periods and the six month offering period consists of one six month purchase period. The price of the common stock purchased is 85% of the lesser of the fair market value of the common stock on the first day of the applicable offering period or the last day of each purchase period. During fiscal 2015 , 2014 , and 2013 , employees purchased 565,493 shares, 586,386 shares and 583,173 shares under this program at a weighted average exercise price of $5.67 , $4.80 and $4.29 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation We account for all stock-based compensation to employees and directors, including grants of restricted stock units and stock options, as stock-based compensation costs in the Consolidated Financial Statements based on the fair value measured as of the date of grant. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period and increase additional paid-in capital. The table below shows the stock-based compensation expense included in the Consolidated Statement of Operations (in thousands): Fiscal Years Ended December 26, December 27, December 28, Stock-based compensation expense included in: Cost of revenues $ 2,651 $ 2,433 $ 2,436 Research and development 3,490 3,529 3,440 Selling, general and administrative 5,434 7,317 6,248 Total stock-based compensation 11,575 13,279 12,124 Tax effect on stock-based compensation — — — Total stock-based compensation, net of tax $ 11,575 $ 13,279 $ 12,124 During fiscal 2015 , we recorded stock-based compensation expense of approximately $0.5 million relating to a full-time employee who was impacted by our restructuring activities. Hence, we classified this stock-based compensation expense as a restructuring expense. The table above does not include this expense. Refer to Note 4 to Notes to Consolidated Financial Statements - Restructuring Charges for further details. Restricted Stock Units The fair value of restricted stock units is determined using the market closing price of our common stock on the grant date and compensation cost is recognized over the vesting period on a straight line basis. The restricted stock units generally vest over four years though we also have granted and will continue to grant such awards over a shorter vest term for employee retention purposes. During fiscal 2015 , 2014 and 2013 , we granted 1,540,250 shares, 1,900,000 shares and 1,708,000 shares of restricted stock units with the weighted average grant-date fair values of $8.64 , $6.52 and $5.04 per share, respectively. As of December 26, 2015 , the unamortized stock-based compensation balance related to restricted stock units was $11.8 million after estimated forfeitures, which will be recognized over an estimated period of 2.03 years based on the weighted average days to vest. Stock Options The exercise price of each stock option equals the market price of our stock on the date of grant. Most options are scheduled to vest over three to four years and expire five to ten years from the grant date. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. In addition, we estimate forfeitures when recognizing compensation expense, and adjust our estimates of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures are recognized as a change in estimate in the period of change and will also impact the amount of compensation expense to be recognized in future periods. The following weighted-average assumptions were used in the estimated grant-date fair value calculations for stock options granted in fiscal 2015 . There were no options granted in fiscal 2014 and 2013 . Stock Options: Dividend yield — % Expected volatility 47.5 % Risk-free interest rate 1.6 % Expected life (in years) 5.5 During fiscal 2015 , we granted 456,000 stock options under our approved plans with a weighted average grant-date fair value of $3.78 per share. Our computation of expected volatility was based on a combination of historical and market-based implied volatility from traded options on our common stock. We believe that including market-based implied volatility in the calculation of expected volatility results in a more accurate measure of the volatility expected in future periods. Risk-free interest rates are yields for zero-coupon U.S. Treasury notes maturing approximately at the end of the expected option life. We determine the expected term by considering several factors, including historical option exercise behavior, post vesting turnover rates, contractual terms and vesting periods of the options granted. As of December 26, 2015 , the unamortized stock-based compensation balance related to stock options was $1.3 million after estimated forfeitures, which will be recognized over an estimated period of 3.1 years based on the weighted average days to vest. Employee Stock Purchase Plan During fiscal 2015 , we issued 565,493 shares under our approved employee stock purchase plans. As of December 26, 2015 , we had $0.1 million of total unrecognized stock-based compensation expense, which will be recognized over the weighted average period of approximately one month. Compensation expense is calculated using the fair value of the employees' purchase rights under the Black-Scholes model. The following assumptions were used in estimating the fair value of employees' purchase rights under the approved employee stock purchase plans: Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Employee Stock Purchase Plan: Dividend yield — % — % — % Expected volatility 51.78 % 41.71 % 39.80 % Risk-free interest rate 0.12 % 0.09 % 0.13 % Expected life (in years) 0.7 0.7 0.7 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of loss before income taxes were as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 United States $ (3,069 ) $ (23,230 ) $ (60,447 ) Foreign 1,798 3,135 2,665 $ (1,271 ) $ (20,095 ) $ (57,782 ) The components of the provision for income taxes are as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Current provision (benefit): Federal $ (3 ) $ (983 ) $ (770 ) State 72 (386 ) 76 Foreign 198 234 287 267 (1,135 ) (407 ) Deferred provision (benefit): Federal — — — State — — — Foreign (15 ) 225 308 (15 ) 225 308 Total provision (benefit) from income taxes $ 252 $ (910 ) $ (99 ) The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 35% and the provision (benefit) from income taxes for fiscal 2015 , 2014 and 2013 (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 U.S. statutory federal tax rate $ (445 ) $ (7,033 ) $ (20,224 ) State taxes and credits, net of Federal benefit 17 (186 ) (345 ) Amortization of stock-based compensation 907 686 923 Research and development credits (1,872 ) (1,183 ) (560 ) Foreign taxes at rates different than the U.S. (66 ) (84 ) 162 Other permanent differences 238 (972 ) (378 ) Change in valuation allowance 1,457 7,886 20,505 Other 16 (24 ) (182 ) Total $ 252 $ (910 ) $ (99 ) Deferred tax assets and liabilities are recognized for the future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax bases using enacted tax rates in effect for the year in which the differences are expected to be reversed. Significant deferred tax assets and liabilities consist of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Tax credits $ 30,968 $ 28,458 Inventory reserve 14,010 16,612 Unrealized investment gains 20 — Other reserves and accruals 5,953 7,610 Non-statutory stock options 4,936 18,096 Depreciation and amortization 13,440 14,037 Net operating loss carryforwards 119,327 120,110 Gross deferred tax assets 188,654 204,923 Valuation allowance (176,196 ) (187,759 ) Total deferred tax assets 12,458 17,164 Acquired intangibles & fixed assets (9,177 ) (13,867 ) Unrealized investment gains — (3 ) Total deferred tax liabilities (9,177 ) (13,870 ) Net deferred tax assets $ 3,281 $ 3,294 We are required to evaluate the realizability of our deferred tax assets in both our U.S. and non-U.S. jurisdictions on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. During fiscal 2015 and 2014 , we maintained a valuation allowance against our U.S. deferred tax assets. We intend to maintain a valuation allowance until sufficient positive evidence exists to support the realization of such deferred tax assets. The valuation allowance against deferred tax assets consisted of the following activity for the fiscal years 2015 , 2014 and 2013 (in thousands): Description Balance at Additions Reduction Balance at Allowance against deferred tax assets Year ended December 31, 2015 $ 187,759 $ — $ (11,563 ) $ 176,196 Year ended December 31, 2014 180,913 6,846 — 187,759 Year ended December 31, 2013 $ 163,265 $ 17,648 $ — $ 180,913 At December 26, 2015 , we had Federal research and development tax credit, net operating loss, and foreign tax credit carryforwards of $21.0 million , $298.7 million and $2.0 million , respectively, which will expire at various dates from 2016 through 2035 . We had alternative minimum tax credits of $2.4 million which do not expire. We had California research credit and net operating loss carryforwards of $28.4 million and $270.7 million , respectively. The California research credit can be carried forward indefinitely while California net operating loss carryforwards will expire at various dates from 2016 through 2035 . We had Japan and Singapore net operating loss carryforwards of approximately $0.3 million and $10.0 million , respectively. Japan net operating loss carryforwards will expire in 2022 while Singapore net operating loss carryforwards can be carried forward indefinitely. We have not provided U.S. Federal and State income taxes, nor foreign withholding taxes, on approximately $5.4 million of undistributed earnings for certain non-US subsidiaries, because such earnings are intended to be indefinitely reinvested. If these earnings were distributed to the U.S. in the form of dividends or otherwise, or if the shares of the relevant foreign subsidiaries were sold or otherwise transferred, we would be subject to additional U.S. income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes, of approximately $0.4 million . Determination of the amount of unrecognized deferred tax liability for temporary differences related to investment in these non-U.S. subsidiaries that are essentially permanent in duration is not practicable. During fiscal 2015, there is $6.3 million tax benefit associated with the exercise of employee stock options and other employee stock programs. During fiscal 2014 and 2013 , there were no tax benefits associated with the exercise of employee stock options and other employee stock programs. The following table reflects changes in the unrecognized tax benefits (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Unrecognized tax benefit beginning balance $ 16,333 $ 16,972 $ 17,181 Additions based on tax positions related to the current year 667 498 307 Additions based on tax position from prior year 163 324 — Reductions for tax positions of prior years (18 ) (1,109 ) (60 ) Reductions to unrecognized tax benefits due to lapse of the applicable statute of limitations (112 ) (352 ) (456 ) Unrecognized tax benefit ending balance $ 17,033 $ 16,333 $ 16,972 At December 26, 2015 , we had total tax-effected unrecognized tax benefits of $17.0 million of which $1.1 million , if recognized, would impact the effective tax rate. We recognize interest (benefit) charges and penalties related to uncertain tax positions as part of the income tax provision. We recognized interest (benefit) charges and penalties of $50 thousand , $(0.1) million and $(0.2) million in fiscal 2015 , 2014 , and 2013 , respectively. As of December 26, 2015 and December 27, 2014 , we have accrued total interest charges and penalties of $0.2 million and $0.1 million , respectively, related to uncertain tax positions. The amount of income taxes we pay is subject to ongoing audits by Federal, State and foreign tax authorities which might result in proposed assessments. Our estimate for the potential outcome for any uncertain tax issue is judgmental in nature. However, we believe we have adequately provided for any reasonably foreseeable outcome related to those matters. Our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved or when statutes of limitation on potential assessments expire. As of December 26, 2015 changes to our uncertain tax positions in the next 12 months that are reasonably possible are not expected to have a significant impact on our financial position or results of operations. We and our subsidiaries file income tax returns in the U.S. Federal jurisdiction, various states and non U.S jurisdictions. The material income tax jurisdictions are the United States (Federal), California, Singapore, China and Japan. The audit of income tax returns for Federal and California for the tax years 2010 to 2012 stub period and 2010 to 2011, respectively, have been settled. However, as a result of net operating loss carryforwards, we are subject to audit for tax years 2007 and forward for Federal purposes and 2008 and forward for California purposes. For Singapore, China and Japan purposes, we are subject to audit for tax years after 2011. On December 18, 2015, Protecting Americans from Tax Hikes Act of 2015 (PATH Act) was signed into law, which retroactively reinstated and made permanent the federal research tax credit provisions from January 1, 2015 through December 31, 2015. Since the Company has a full valuation allowance in the U.S., there is no income tax benefit recognized for federal research and development tax credit. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 26, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans We have an employee savings plan that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. We match up to 50% of an eligible employee's contributions to a maximum of the first 1.5% of the eligible employee's contributions through a fiscal year. We also provide a tax-qualified profit sharing retirement plan for the benefit of eligible employees in the U.S. The plan is designed to provide employees with an accumulation of funds for retirement on a tax-deferred basis and provide for annual discretionary employer contributions. The total charge to operations under the 401(k) and the profit sharing retirement plans for fiscal 2015 , 2014 and 2013 aggregated $1.1 million , $1.0 million and $1.0 million , respectively. |
Operating Segment and Geographi
Operating Segment and Geographic Information | 12 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Operating Segment and Geographic Information | Operating Segments and Geographic Information Since our acquisition of MicroProbe in Fiscal 2012, we had historically operated in one reportable segment consisting of two operating segments related to our FormFactor and MicroProbe product groups. During the fourth quarter of fiscal 2015, we determined that we now operate in one reportable segment consisting of one operating segment relating to the design, development, manufacture and sale of high performance advanced probe cards as a result of the successful integration of the MicroProbe business into our overall consolidated operations. Our chief operating decision maker is the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. The following table summarizes revenue by country as a percentage of total revenues based upon ship-to location: Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 South Korea 25.2 % 19.6 % 19.8 % North America 23.4 28.1 27.2 Taiwan 21.9 18.4 27.9 Asia-Pacific (1) 11.1 12.9 9.2 Japan 9.4 9.6 7.3 Europe 9.0 11.4 8.6 Total Revenues 100.0 % 100.0 % 100.0 % (1) Asia-Pacific includes all countries in the region except Taiwan, Japan and South Korea, which are disclosed separately. The following table summarizes revenue by product group (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 SoC $ 145,839 $ 142,360 $ 115,597 DRAM 125,512 110,800 92,603 Flash 11,007 15,370 23,333 Total revenues $ 282,358 $ 268,530 $ 231,533 Long-lived assets, comprising of net property, plant and equipment, goodwill and net intangibles assets are reported based on the location of the asset. Long-lived assets by geographic location are as follows (in thousands): December 26, 2015 December 27, 2014 North America $ 77,257 $ 91,862 South Korea 1,128 1,578 Asia-Pacific (1) 689 935 Japan 295 358 Singapore 112 172 Europe 655 13 Total $ 80,136 $ 94,918 (1) Asia-Pacific includes all countries in the region except South Korea, Singapore, and Japan, which are disclosed separately. The following customers represented greater than 10% of our revenues in fiscal 2015 , fiscal 2014 and fiscal 2013 : Fiscal 2015 Fiscal 2014 Fiscal 2013 Intel 19.6 % 19.7 % 17.7 % Samsung 14.6 * * SK hynix 14.3 16.9 16.5 Micron 11.7 15.0 11.7 Total 60.2 % 51.6 % 45.9 % * Less than 10% of revenues |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 26, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) The following selected quarterly financial data should be read in conjunction with our consolidated financial statements and the related notes and "Item 7: Management's Discussion and Analysis of Financial Condition and Results of Operations." This information has been derived from our unaudited consolidated financial statements that, in our opinion, reflect all recurring adjustments necessary to fairly present this information when read in conjunction with our consolidated financial statements and the related notes appearing in the section entitled "Consolidated Financial Statements." The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period. Fiscal Quarters Ended Dec. 26, Sep. 26, June. 27, 2015 March 28, Dec. 27, Sep. 27, June. 28, March 29, (in thousands, except per share data) Revenues $ 71,782 $ 65,862 $ 73,885 $ 70,829 $ 71,285 $ 73,934 $ 67,352 $ 55,959 Cost of revenues 50,591 47,407 50,582 48,040 50,337 49,792 47,328 43,634 Gross profit 21,191 18,455 23,303 22,789 20,948 24,142 20,024 12,325 Operating Expenses: Research and development 11,236 10,645 11,217 11,086 10,706 11,198 11,074 9,747 Selling, general and administrative 10,719 11,108 11,381 11,882 12,631 13,309 13,191 12,254 Restructuring charges, net (3 ) 59 — 503 584 28 59 1,997 Impairment of long-lived assets — — 8 — 390 86 — 743 Total operating expenses 21,952 21,812 22,606 23,471 24,311 24,621 24,324 24,741 Operating income (loss) (761 ) (3,357 ) 697 (682 ) (3,363 ) (479 ) (4,300 ) (12,416 ) Interest income, net 70 65 65 85 69 75 79 79 Other income (expense), net (36 ) 982 100 1,501 155 228 (156 ) (66 ) Income (loss) before income taxes (727 ) (2,310 ) 862 904 (3,139 ) (176 ) (4,377 ) (12,403 ) Provision (benefit) for income taxes (108 ) 215 24 121 (1,268 ) 101 (51 ) 308 Net income (loss) $ (619 ) $ (2,525 ) $ 838 $ 783 $ (1,871 ) $ (277 ) $ (4,326 ) $ (12,711 ) Net income (loss) per share: Basic $ (0.01 ) $ (0.04 ) $ 0.01 $ 0.01 $ (0.03 ) $ 0.00 $ (0.08 ) $ (0.23 ) Diluted $ (0.01 ) $ (0.04 ) $ 0.01 $ 0.01 $ (0.03 ) $ 0.00 $ (0.08 ) $ (0.23 ) Weighted average number of shares used in per share calculations: Basic 58,128 58,209 58,109 56,594 56,472 56,297 55,812 55,050 Diluted 58,128 58,209 59,094 58,838 56,472 56,297 55,812 55,050 (1) In the first quarter of fiscal 2015, we recorded a $1.5 million gain from a business interruption insurance claim relating to a factory fire at a customer. See Note 16, Business Interruption Insurance Claim Recovery , to the Notes to Consolidated Financial Statements for further details. (2) In the third quarter of fiscal 2015, we recorded a $1.0 million net gain from the sale of intellectual property. See Note 9, Commitments and contingencies , to the Notes to Consolidated Financial Statements for further details. |
Business Interruption Insurance
Business Interruption Insurance Claim Recovery | 12 Months Ended |
Dec. 26, 2015 | |
Extraordinary and Unusual Items [Abstract] | |
Business Interruption Insurance Claim Recovery | Business Interruption Insurance Claim Recovery During fiscal 2015, we received approximately $1.5 million as a result of a payment from our insurer arising from a business interruption insurance claim related to a factory fire at a customer during the second half of fiscal 2013. We recorded this cash receipt within “Other income, net” in our Consolidated Statements of Operations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 26, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cascade Microtech Acquisition On February 3, 2016, we entered into an Agreement and Plan of Merger under which we agreed to acquire Cascade Microtech through the merger of a wholly owned subsidiary with and into Cascade Microtech. Subject to the terms of the merger agreement, at the effective time of the merger, each outstanding share of Cascade Microtech common stock will be cancelled and converted into the right to receive (a) $16.00 in cash, without interest, and (b) 0.6534 shares of FormFactor common stock. Cascade Microtech is an Oregon corporation that designs, develops, manufactures and markets advanced wafer probing, thermal and reliability solutions for the electrical measurement and testing of high performance semiconductor devices. Subject to the terms of the merger agreement, at the effective time of the merger all of the outstanding and vested equity awards of Cascade Microtech will be cancelled and converted into the right to receive an amount in cash in respect of the merger consideration the shares of Cascade Microtech common stock underlying the awards would have received, and all of the outstanding and unvested equity awards of Cascade Microtech will be assumed on substantially the same terms, except that the number of shares of our common stock that will underlie the assumed award and the exercise price of any assumed option will be determined pursuant to a formula intended to preserve the intrinsic value of the original award. Completion of the merger is subject to customary closing conditions, including approval by Cascade Microtech’s shareholders and expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, among others, and therefore has not been reflected in the financial statements included in this Annual Report on Form 10-K. There is no financing condition to our obligations under the merger agreement. We expect the merger to be completed in mid-2016. To finance a portion of the consideration for the proposed merger, we entered into a commitment letter with certain lenders to provide a senior secured term loan facility in an aggregate amount of $150 million . The funding of the term loan facility is subject to certain conditions, including the execution of definitive financing documentation, the consummation of the merger in accordance with the merger agreement, the absence of a Company Material Adverse Effect (as defined in the merger agreement), a minimum liquidity condition and other customary closing conditions. The above description of the merger agreement and the proposed merger is a summary and is qualified in its entirety by reference to the merger agreement included as Exhibit 2.1 to our Current Report on Form 8-K, filed with the SEC on February 9, 2016. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2015 | |
Accounting Policies [Abstract] | |
Fiscal Year | Fiscal Year Our fiscal year ends on the last Saturday in December. The fiscal years ended on December 26, 2015 , December 27, 2014 and December 28, 2013 , respectively, consisted of 52 weeks each. |
Basis of Consolidation | Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include our accounts and those of our wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Foreign Currency Translation | The functional currencies of certain of our foreign subsidiaries are the local currencies and, accordingly, all assets and liabilities of these foreign operations are translated to U.S. Dollars at current period-end exchange rates, and revenues and expenses are translated to U.S. Dollars using average exchange rates in effect during the period. The gains and losses from the foreign currency translation of these subsidiaries' financial statements are included as a separate component of stockholders' equity under “Accumulated other comprehensive income (loss).” |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. Estimates may change as new information is obtained. |
Business Aquisitions | Business Acquisitions Our consolidated financial statements include the operations of an acquired business after the completion of the acquisition. We account for acquired businesses using the acquisition method of accounting. The acquisition method of accounting for acquired businesses requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date, and that the fair value of acquired intangibles including in-process research and development (IPR&D) be recorded on the balance sheet. Also, transaction costs are expensed as incurred. Any excess of the purchase price over the assigned fair values of the net assets acquired is recorded as goodwill. |
Cash and Cash Equivalents | Cash, Cash Equivalents and Marketable Securities Cash and cash equivalents consist of deposits and financial instruments which are readily convertible into cash and have original maturities of 90 days or less at the time of acquisition. |
Marketable Securities | Marketable securities consist primarily of highly liquid investments with maturities of greater than 90 days when purchased. We generally classify our marketable securities at the date of acquisition as available-for-sale. These securities are reported at fair value with the related unrealized gains and losses included in "Accumulated other comprehensive income (loss)", a component of stockholder's equity, net of tax. Any unrealized losses which are considered to be other-than-temporary impairments are recorded in "Other income, net" in the Consolidated Statements of Operations. Realized gains (losses) on the sale of marketable securities are determined using the specific-identification method and recorded in "Other income, net" in the Consolidated Statements of Operations. All of our available-for-sale investments are subject to a periodic impairment review. We record a charge to earnings when a decline in fair value is significantly below cost basis and judged to be other-than-temporary, or have other indicators of impairments. If the fair value of an available-for-sale investment is less than its amortized cost basis, an other-than-temporary impairment is triggered in circumstances where (1) we intend to sell the instrument, (2) it is more likely than not that we will be required to sell the instrument before recovery of its amortized cost basis or (3) a credit loss exists where we do not expect to recover the entire amortized cost basis of the instrument. If we intend to sell or it is more likely than not that we will be required to sell the available-for-sale investment before recovery of its amortized cost basis, we recognize an other-than- temporary impairment charge equal to the entire difference between the investment's amortized cost basis and its fair value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of the Company's cash, cash equivalents, accounts receivable, accounts payable and other current liabilities approximate their carrying amounts due to the relatively short maturity of these items. Estimates of fair value of our marketable securities are based on quoted market prices from active markets or third party, market-based pricing sources which we believe to be reliable. These estimates represent the third parties' good faith opinion as to what a buyer in the marketplace would pay for a security in a current sale. Whenever possible, the fair values of our financial assets and liabilities are determined using quoted market prices of identical assets or quoted market prices of similar assets from active markets. The three levels of inputs that may be used to measure fair value are as follows: • Level 1 valuations are obtained from real-time quotes for transactions in active exchange markets involving identical assets; • Level 2 inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3 valuations are based on unobservable inputs to the valuation methodology and include our own data about assumptions market participants would use in pricing the asset or liability based on the best information available under the circumstances. Each level of input has different levels of subjectivity and difficulty involved in determining fair value. |
Foreign Exchange Management | Foreign Exchange Management We transact business in various foreign currencies. We enter into forward foreign exchange contracts in an effort to mitigate the risks associated with currency fluctuations on certain foreign currency balance sheet exposures. Gains and losses resulting from the impact of currency exchange rate movements on forward foreign exchange contracts designated to offset certain foreign currency balance sheet exposures are recognized as "Other income, net" in the Consolidated Statements of Operations in the period in which the exchange rates change. These gains and losses are intended to partially offset the foreign currency exchange gains and losses on the underlying exposures being hedged. We record the fair value of these contracts as of the end of our reporting period in the Consolidated Balance Sheet. We do not use derivative financial instruments for trading or speculative purposes. |
Restricted Cash | Restricted Cash Under the terms of one of our facility leases, we provide security to the landlord in the form of letters of credit. |
Inventories | Inventories Inventories are stated at the lower of cost (principally standard cost which approximates actual cost on a first-in, first-out basis) or market value. The provision for potentially excess and obsolete inventory is made based on management's analysis of inventory levels and forecasted future sales. On a quarterly basis, we review inventory quantities on hand and on order under non-cancelable purchase commitments in comparison to our past usage and estimated forecast of product demand for the next six to twelve months to determine what inventory quantities, if any, may not be sellable. Based on this analysis, we write down the affected inventory value for estimated excess and obsolescence charges. Once the value is adjusted, the original cost of our inventory less the related inventory write-down represents the new cost basis of such products. Reversal of these write downs is recognized only when the related inventory has been scrapped or sold. Shipping and handling costs are classified as a component of "Cost of revenues" in the Consolidated Statements of Operations. We design, manufacture and sell a fully custom product into a market that has been subject to cyclicality and significant demand fluctuations. Probe cards are complex products, custom to a specific chip design and have to be delivered on short lead-times. Probe cards are manufactured in low volumes, but for certain materials, the purchases are often subject to minimum order quantities in excess of the actual underlying probe card demand. It is not uncommon for us to acquire production materials and commence production activities based on estimated production yields and forecasted demand prior to or in excess of actual demand for our probe cards. These factors result in normal recurring inventory valuation adjustments to cost of revenues. Aggregate inventory write downs were $6.5 million , $7.1 million and $10.5 million for fiscal 2015 , 2014 and 2013 , respectively. When our products have been delivered, but the revenue associated with that product is deferred because the related revenue recognition criteria have not been met, we may defer the related inventory costs. The deferred inventory costs do not exceed the deferred revenue amounts. The deferred inventory costs are classified as a component of "Prepaid expenses and other current assets" in the Consolidated Balance Sheet. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property and equipment is stated at cost less accumulated depreciation and amortization. Depreciation is provided on a straight-line method over the following estimated useful lives of the assets: 1 to 5 years for machinery and equipment, 1 to 5 years for computer equipment and software and 1 to 5 years for furniture and fixtures. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the related asset. Construction-in-progress assets are not depreciated until the assets are placed in service. Upon sale or retirement of assets, the cost and related accumulated depreciation or amortization, are removed from the balance sheet and the resulting gain or loss is reflected in operations. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed. Since our acquisition of MicroProbe in Fiscal 2012, we had historically operated in one reportable segment consisting of two operating segments and for the purposes of our goodwill impairment analysis, we had two reporting units, all of which related to our FormFactor and MicroProbe product groups. During the fourth quarter of fiscal 2015, we determined that we now operate in one reportable segment consisting of one operating segment and for the purposes of our goodwill impairment analysis, we further concluded that we now have one reporting unit, all of which relates to the design, development, manufacture and sale of high performance advanced probe cards as a result of the successful integration of the MicroProbe business into our overall consolidated operations. The Company first assesses qualitative factors to determine whether it is necessary to perform a two-step quantitative goodwill impairment test. If an entity determines as a result of the qualitative assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the quantitative impairment test is required. Otherwise, no further testing is required. The performance of the quantitative impairment test involves a two-step process. The first step of the impairment test involves comparing the fair value of the applicable reporting unit with its aggregate carrying value, including goodwill. We generally determine the fair value of our reporting unit using a combination of the income approach (that includes the use of the discounted cash flow method) and the market approach (guideline company approach) valuation methodologies. If the carrying amount of a reporting unit exceeds the fair value of that reporting unit, we perform the second step of the quantitative impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. During the fourth quarter of fiscal 2015 , we performed our annual goodwill impairment test prior to and subsequent to the change in our reporting unit structure by assessing qualitative factors and we concluded that our goodwill was not impaired as of December 26, 2015 . Our qualitative review included, among other factors, an assessment of our market capitalization which was significantly higher than our book value. No impairment charges associated with our goodwill were recorded during fiscal 2014 and 2013 . Refer to Note 8 to Notes to Consolidated Financial Statements - Goodwill and Intangible Assets for further details. |
Intangible Assets | Intangible Assets Intangible assets consist of acquisition related intangible assets and intellectual property. The intangible assets are being amortized over periods which reflect the pattern in which economic benefits of the assets are expected to be realized, over 1 to 10 years. We perform a review of intangible assets when facts and circumstances indicate that the useful life is shorter than originally estimated or that the carrying amount of assets may not be recoverable. Such facts and circumstances include significant adverse changes in the business climate or legal factors; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the intangible assets; and current expectation that the intangible assets will more likely than not be sold or disposed of before the end of their estimated useful lives. We assess the recoverability of identified intangible assets by comparing the projected undiscounted net cash flows associated with the related asset or group of assets over their remaining lives against their respective carrying amounts. Impairments, if any, are based on the excess of the carrying amount over the fair value of those assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We test long-lived assets or asset groups such as property, plant and equipment and intangible assets for recoverability when events or changes in circumstances indicate that their carrying amounts may not be recoverable. Circumstances which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will more likely than not be sold or disposed of before the end of its estimated useful life. |
Concentration of Credit Risk and Other Risk and Uncertainties | Concentration of Credit Risk and Other Risks and Uncertainties Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, marketable securities and trade receivables. Our cash equivalents and marketable securities are held in safekeeping by large, credit worthy financial institutions. We invest our excess cash primarily in U.S. banks, government and agency bonds, money market funds and corporate obligations. We have established guidelines relative to credit ratings, diversification and maturities that seek to maintain safety and liquidity. Deposits in these banks may exceed the amounts of insurance provided on such deposits. To date, we have not experienced any losses on our deposits of cash and cash equivalents. |
Revenue Recognition | Revenue Recognition We recognize revenue when persuasive evidence of a sales arrangement exists, title and risk of loss has transferred to the customer, the selling price is fixed or determinable and collection of the related receivable is reasonably assured. In instances where final acceptance of the deliverable is specified by the customer, revenue is deferred until all acceptance criteria have been met. Revenues from the licensing of our design and manufacturing technology, which have not been material to date, are recognized over the term of the license agreement or when the significant contractual obligations have been fulfilled. |
Warranty Obligations | Warranty Obligations We offer warranties on certain products and record a liability for the estimated future costs associated with warranty claims at the time revenue is recognized. The warranty liability is based upon historical experience and our estimate of the level of future costs. While we engage in product quality programs and processes, our warranty obligation is affected by product failure rates, material usage and service delivery costs incurred in correcting a product failure. We continuously monitor product returns for warranty and maintain a reserve for the related expenses based upon our historical experience and any specifically identified field failures. As we sell new products to our customers, we must exercise considerable judgment in estimating the expected failure rates. This estimating process is based on historical experience of similar products, as well as various other assumptions that we believe to be reasonable under the circumstances. We provide for the estimated cost of product warranties at the time revenue is recognized. Warranty costs are reflected in the Consolidated Statement of Operations as a cost of revenues |
Research and Development | Research and Development Research and development expenses include expenses related to product development, engineering and material costs. All research and development costs are expensed as incurred |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The majority of our trade receivables are derived from sales to large multinational semiconductor manufacturers throughout the world. In order to monitor potential credit losses, we perform ongoing credit evaluations of our customers' financial condition. An allowance for doubtful accounts is maintained based upon our assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed and assessed for adequacy on a quarterly basis. We take into consideration (1) any circumstances of which we are aware of a customer's inability to meet its financial obligations and (2) our judgments as to prevailing economic conditions in the industry and their impact on our customers. If circumstances change, and the financial condition of our customers is adversely affected and they are unable to meet their financial obligations, we may need to take additional allowances, which would result in an increase in our operating expense. |
Restructuring Charges | Restructuring Charges Restructuring charges include costs related to employee termination benefits, cost of long-lived assets abandoned or impaired, as well as contract termination costs. The determination of when we accrue for employee termination benefits depends on whether the termination benefits are provided under a one-time benefit arrangement or under an on-going benefit arrangement. For restructuring charges recorded as an on-going benefit arrangement, a liability for post-employment benefits is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. For restructuring charges recorded as a one-time benefit arrangement, we recognize a liability for employee termination benefits when a plan of termination, approved by management and establishing the terms of the benefit arrangement, has been communicated to employees. The timing of the recognition of one-time employee termination benefits is dependent upon the period of time the employees are required to render service after communication. If employees are not required to render service in order to receive the termination benefits or if employees will not be retained to render service beyond the minimum legal notification period, a liability for the termination benefits is recognized at the communication date. In instances where employees will be retained to render service beyond the minimum legal notification period, the liability for employee termination benefits is measured initially at the communication date based on the fair value of the liability as of the termination date and is recognized ratably over the future service period. We continually evaluate the adequacy of the remaining liabilities under our restructuring initiatives. We record charges related to long-lived assets to be abandoned when the assets cease to be used. When we cease using a building or other asset with remaining non-cancelable lease payments continuing beyond our use period, we record a liability for remaining payments under lease arrangements and contract termination costs that continue for the remaining term without economic benefit to us at the cease-use date. |
Income Taxes | Income Taxes We utilize the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on the temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the basis differences reverse and for operating losses and tax credit carryforwards. We estimate our provision for income taxes and amounts ultimately payable or recoverable in numerous tax jurisdictions around the world. Estimates involve interpretations of regulations and are inherently complex. Resolution of income tax treatments in individual jurisdictions may not be known for many years after completion of any fiscal year. We are required to evaluate the realizability of our deferred tax assets on an ongoing basis to determine whether there is a need for a valuation allowance with respect to such deferred tax assets. A valuation allowance is recorded when it is more likely than not that some or all of the deferred tax assets will not be realized. Significant management judgment is required in determining any valuation allowance recorded against deferred tax assets. In evaluating the ability to recover deferred tax assets, we consider all available positive and negative evidence giving greater weight to our recent cumulative losses and our ability to carryback losses against prior taxable income and, commensurate with objective verifiability, the forecast of future taxable income including the reversal of temporary differences and the implementation of feasible and prudent tax planning strategies. |
Stock-based Compensation | Stock-Based Compensation We recognize compensation expense for all stock-based awards based on the grant-date estimated fair values, net of an estimated forfeiture rate. The value of the portion of the award that is ultimately expected to vest is recognized as expense ratably over the requisite service periods in our Consolidated Statement of Operations. The fair value of stock options is measured using the Black-Scholes option pricing model while the fair value for restricted stock awards and restricted stock units is measured based on the closing market price of our common stock on the date of grant. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is computed giving effect to all potential dilutive common stock, including stock options, restricted stock units and common stock subject to repurchase. Diluted loss per share was based only on the weighted-average number of shares outstanding during that period as the inclusion of any common stock equivalents would have been anti-dilutive. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss includes foreign currency translation adjustments and unrealized losses on available-for-sale securities net of tax, the impact of which has been excluded from earnings and reflected as components of stockholders' equity. |
Recent Adopted Accounting Standards | Recent Adopted Accounting Standards In November 2015, the FASB issued ASU 2015-17, Balance Sheet Classification of Deferred Taxes , related to balance sheet classification of deferred taxes. The ASU requires that deferred tax assets and liabilities be classified as noncurrent in the statement of financial position, thereby simplifying the current guidance that requires an entity to separate deferred assets and liabilities into current and noncurrent amounts. The ASU will be effective for us beginning in the first quarter of fiscal year 2018 though early adoption is permitted. We have early-adopted the ASU as of December 26, 2015 prospectively and our statement of financial position as of this date reflects the revised classification of current deferred tax assets and liabilities as noncurrent. No prior periods were retrospectively adjusted. There is no other impact on our financial statements of early-adopting the ASU. |
Derivative Financial Instruments | We do not use derivative financial instruments for speculative or trading purposes. Our derivative instruments are not designated as hedging instruments for accounting purposes. Accordingly, changes in the fair value of these hedges are recorded in earnings to offset the changes in the fair value of the assets or liabilities being hedged. We record the fair value of these contracts as of the end of our reporting period to our Consolidated Balance Sheet with changes in fair value recorded within " Other income, net " in our Consolidated Statement of Operations for both realized and unrealized gains and losses. |
Fair Value Measurement | We use fair value measurements to record adjustments to certain financial and non-financial assets and to determine fair value disclosures. The carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, accrued compensation and other accrued liabilities, approximate fair value because of their short maturities. Our marketable securities are financial assets recorded at fair value on a recurring basis. The accounting standards for fair value defines fair value, establishes a framework for measuring fair value and requires disclosures about fair value measurements. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions and risk of nonperformance. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The standard describes a fair value hierarchy based on three levels of inputs, the first two of which are considered observable and the last unobservable. We apply the following fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: • Level 1—Quoted prices in active markets for identical assets or liabilities; • Level 2—Inputs, other than the quoted prices in active markets, such as quoted prices for similar assets or liabilities, quoted prices near the reporting date in markets that are less active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Accounting Policies [Abstract] | |
Schedules of Concentration of Risk, by Customer | The following customers represented greater than 10% of our revenues in fiscal 2015 , fiscal 2014 and fiscal 2013 : Fiscal 2015 Fiscal 2014 Fiscal 2013 Intel 19.6 % 19.7 % 17.7 % Samsung 14.6 * * SK hynix 14.3 16.9 16.5 Micron 11.7 15.0 11.7 Total 60.2 % 51.6 % 45.9 % * Less than 10% of revenues |
Schedule of Product Warranty Liability | A reconciliation of the changes in our warranty liability is as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Balance at beginning of year $ 1,592 $ 691 Accruals 2,536 2,972 Settlements (3,012 ) (2,071 ) Balance at end of year $ 1,116 $ 1,592 |
Schedule of Allowance for Doubtful Accounts | The allowance for doubtful accounts receivable consisted of the following activity for fiscal years 2015 , 2014 and 2013 (in thousands): Balance at Beginning of Year Additions Reductions Balance at End of Year Fiscal year ended December 28, 2013 $ 289 $ — $ (24 ) $ 265 Fiscal year ended December 27, 2014 265 5 (4 ) 266 Fiscal year ended December 26, 2015 $ 266 $ 20 $ (2 ) $ 284 |
Schedule of Calculation of Numerator and Denominator in Earnings Per Share | A reconciliation of the numerator and denominator used in the calculation of basic and diluted net loss per share is as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Numerator: Net loss used in computing basic and diluted net loss per share $ (1,523 ) $ (19,185 ) $ (57,683 ) Denominator: Weighted-average shares used in computing basic net loss per share 57,850 55,908 54,204 Add potentially dilutive securities — — — Weighted-average shares used in computing basic and diluted net loss per share 57,850 55,908 54,204 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following securities were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Options to purchase common stock 2,320 2,874 3,805 Restricted stock units 2,578 — 373 Employee stock purchase plan 8 28 22 Total potentially dilutive securities 4,906 2,902 4,200 |
Schedule of Accumulated Other Comprehensive Loss | Components of accumulated other comprehensive loss was as follows (in thousands): December 26, 2015 December 27, 2014 Unrealized loss on marketable securities, net of tax of $428 in fiscal 2015 and fiscal 2014, respectively $ (483 ) $ (419 ) Cumulative translation adjustments (1,739 ) (1,342 ) Accumulated other comprehensive loss $ (2,222 ) $ (1,761 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Balance Sheet Components [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation | Marketable securities at December 26, 2015 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 18,896 $ 1 $ (44 ) $ 18,853 Agency securities (Federal) 22,484 — (12 ) 22,472 $ 41,380 $ 1 $ (56 ) $ 41,325 Marketable securities at December 27, 2014 consisted of the following (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasuries $ 42,386 $ 13 $ (4 ) $ 42,395 Agency securities (Federal) 7,502 — — 7,502 $ 49,888 $ 13 $ (4 ) $ 49,897 |
Investments Classified by Contractual Maturity Date | The contractual maturities of marketable securities as of December 26, 2015 and December 27, 2014 were as follows (in thousands): December 26, 2015 December 27, 2014 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 33,882 $ 33,871 $ 38,499 $ 38,509 Due after one year to five years 7,498 7,454 11,389 11,388 $ 41,380 $ 41,325 $ 49,888 $ 49,897 |
Schedule of Asset Retirement Obligations | The following is a reconciliation of the aggregate asset retirement liability associated with our commitment to return property to its original condition upon lease termination (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Asset retirement obligation beginning balance $ 903 $ 988 Initial amount recorded for new asset retirement obligation 10 — Currency translation 6 (85 ) Asset retirement obligation ending balance $ 919 $ 903 The aggregate asset retirement liability was further classsified in the Consolidated Balance Sheets as (in thousands): Other accrued liabilities, current $ 212 $ — Deferred rent and other liabilities, non-current 707 903 $ 919 $ 903 |
Schedule of Inventory, Current | Net inventories consisted of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Raw materials $ 12,996 $ 10,646 Work-in-progress 12,492 12,813 Finished goods 1,735 2,089 $ 27,223 $ 25,548 |
Property, plant and equipment Including Construction-in-progress | Property, plant and equipment consisted of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Machinery and equipment 150,983 145,995 Computer equipment and software 27,951 28,953 Furniture and fixtures 5,380 5,402 Leasehold improvements 67,121 66,821 Sub-total 251,435 247,171 Less: Accumulated depreciation and amortization (232,005 ) (224,135 ) Net long-lived assets 19,430 23,036 Construction-in-progress 4,423 2,462 Total $ 23,853 $ 25,498 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Accrued compensation and benefits $ 12,286 $ 12,431 Accrued indirect and other taxes 2,189 2,223 Accrued commissions 366 460 Accrued warranty 1,116 1,592 Deferred rent 325 216 Accrued restructuring 2 584 Other accrued expenses 5,223 3,711 $ 21,507 $ 21,217 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring Actions | The following table summarizes the activities related to the restructuring actions from fiscal 2013 to 2015 (in thousands): Employee Property and Equipment Impairment Contract Total Accrual at December 31, 2012 $ 548 $ — $ 68 $ 616 Restructuring charges 2,083 2,743 15 4,841 Asset impairments — (2,743 ) — (2,743 ) Adjustments to restructuring charges (178 ) (5 ) — (183 ) Cash payments (2,320 ) (32 ) (17 ) (2,369 ) Non-cash settlements 5 37 (66 ) (24 ) Accrual at December 28, 2013 138 — — 138 Restructuring charges 2,068 600 — 2,668 Asset impairments — (600 ) — (600 ) Cash payments (1,620 ) — — (1,620 ) Non-cash settlements (2 ) — — (2 ) Accrual at December 27, 2014 584 — — 584 Restructuring charges 59 — 500 559 Cash payments (641 ) — — (641 ) Non-cash settlements — — (500 ) (500 ) Accrual at December 26, 2015 $ 2 $ — $ — $ 2 |
Derivative Financial Instrume29
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of outstanding foreign currency forward contracts | The following tables provide information about our foreign currency forward contracts outstanding as of December 26, 2015 and December 27, 2014 (in thousands): December 26, 2015 Contract Position Contract Amount Contract Amount (In thousands) Japanese Yen Sell 3,328,268 $ 27,635 Taiwan Dollar Buy (37,152 ) (1,136 ) Korean Won Buy (840,111 ) (718 ) Total USD notional amount of outstanding foreign exchange contracts $ 25,781 December 27, 2014 Contract Position Contract Amount Contract Amount (In thousands) Japanese Yen Sell 1,955,798 $ 16,241 Taiwan Dollar Buy (30,886 ) (977 ) Korean Won Buy (1,763,054 ) (1,613 ) Total USD notional amount of outstanding foreign exchange contracts $ 13,651 |
Schedule of non-designated derivative gains (losses) | The location and amount of gains (losses) related to non-designated derivative instruments that matured in fiscal 2015 and 2014 in the Consolidated Statements of Operations are as follows (in thousands): Fiscal Years Ended Derivatives Not Designated as Hedging Instruments Location of Gain (Loss) Recognized December 26, 2015 December 27, 2014 Foreign exchange forward contracts Other Income, net $ (310 ) $ 1,768 |
Impairment of Long-lived Asse30
Impairment of Long-lived Assets (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Schedule Of Impairment of Long Lived Assets | The following table summarizes the components of the impairments that we recorded in fiscal 2015 , 2014 and 2013 (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Impairment of long-lived assets: Assets held for sale $ — $ 191 $ — Assets to be disposed of other than by sale 8 1,028 761 Total $ 8 $ 1,219 $ 761 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measured on Recurring Basis | Fair values measured on a recurring basis as of December 26, 2015 (in thousands): Level 1 Level 2 Total Assets: Cash equivalents Money market funds $ 82,935 $ — $ 82,935 Marketable securities U.S. Treasuries — 18,853 18,853 Agency securities (Federal) — 22,472 22,472 Total $ 82,935 $ 41,325 $ 124,260 Fair values measured on a recurring basis as of December 27, 2014 (in thousands): Level 1 Level 2 Total Assets: Cash equivalents Money market funds $ 65,303 $ — $ 65,303 Marketable securities U.S. Treasuries — 42,395 42,395 Agency securities (Federal) — 7,502 7,502 Total $ 65,303 $ 49,897 $ 115,200 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The changes in intangible assets for fiscal 2015 and the net book value of intangible assets at December 26, 2015 and December 27, 2014 were as follows (in thousands): Intangible Assets, Gross Amount Accumulated Amortization Intangible Assets, Net Weight Average Useful Life Other Intangible Assets (1) December 27, 2014 Additions/Disposals December 26, 2015 December 27, 2014 Expense, net December 26, 2015 December 27, 2014 December 26, 2015 December 26, 2015 Existing developed technologies (2) $ 45,300 $ 6,900 $ 52,200 $ 29,097 $ 10,484 $ 39,581 $ 16,203 $ 12,619 2.0 Trade name 4,388 — 4,388 970 439 1,409 3,418 2,979 6.8 Customer relationships 17,000 — 17,000 4,832 2,214 7,046 12,168 9,954 4.8 Total finite-lived intangible assets 66,688 6,900 73,588 34,899 13,137 48,036 31,789 25,552 In-process research and development 6,900 (6,900 ) — — — — 6,900 — Total intangible assets $ 73,588 $ — $ 73,588 $ 34,899 $ 13,137 $ 48,036 $ 38,689 $ 25,552 (1) Excludes fully amortized intangible assets. (2) As of December 26, 2015, we excluded approximately $5.9 million of fully amortized existing developed technology intangible assets from gross intangible assets and accumulated amortization due to the sale of these intangible assets to MarTek Inc. These intangible assets were fully amortized as of December 27, 2014 but were in use until their sale to MarTek Inc. Refer to Note 9 in Notes to Consolidated Financial Statements- Commitments and Contingencies , for further details. |
Schedule of Remaining Estimated Amortization Expense | Based on the carrying value of the finite-lived intangible assets recorded as of December 26, 2015 , and assuming no subsequent additions to or impairment of the underlying assets, the remaining estimated annual amortization expense is expected to be as follows (in thousands): Fiscal Year Amount 2016 $ 10,060 2017 4,943 2018 4,666 2019 3,052 2020 2,045 and thereafter 786 Total $ 25,552 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Capital and Operating Leases | Future minimum payments under our non-cancelable operating leases are as follows as of December 26, 2015 (in thousands): Operating Fiscal years: 2016 $ 3,994 2017-2018 7,194 2019-2020 7,064 Thereafter 2,505 Total $ 20,757 |
Schedule of Purchase Obligations | The following table sets forth our commitments to settle other contractual obligations in cash as of December 26, 2015 (in thousands): Payments Due In Fiscal Years 2016 2017-2018 2019-2020 After 2020 Total (In thousands) Purchase obligations $ 20,899 $ 9,580 $ 30 $ — $ 30,509 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock Option Activity | Stock option activity is set forth below: Outstanding Options Number of Weighted Weighted Aggregate Outstanding at December 27, 2014 2,571,376 10.72 Options granted 456,000 8.42 Options exercised (24,607 ) 8.61 Options canceled (682,574 ) 13.75 Outstanding at December 26, 2015 2,320,195 $ 9.40 2.70 $ 1,146,680 Vested and expected to vest at December 26, 2015 2,320,195 $ 9.40 2.70 $ 1,146,680 Exercisable at December 26, 2015 1,864,861 $ 9.64 1.86 $ 833,552 |
Schedule of Weighted Average Assumptions | The following weighted average assumptions were used in the estimated grant-date fair value calculations using the Black-Scholes option pricing model: Stock Options: Dividend yield — % Expected volatility 47.5 % Risk-free interest rate 1.6 % Expected term (in years) 5.5 The following weighted-average assumptions were used in the estimated grant-date fair value calculations for stock options granted in fiscal 2015 . There were no options granted in fiscal 2014 and 2013 . Stock Options: Dividend yield — % Expected volatility 47.5 % Risk-free interest rate 1.6 % Expected life (in years) 5.5 |
Schedule of Restricted Stock Unit Activity | Restricted stock unit activity is set forth below: Number of Weighted Restricted stock units at December 29, 2012 2,228,946 $ 7.66 Granted 1,708,000 5.04 Vested (760,590 ) 8.44 Canceled (246,717 ) 8.18 Restricted stock units at December 28, 2013 2,929,639 5.88 Granted 1,900,000 6.52 Vested (1,282,442 ) 6.30 Canceled (297,151 ) 6.17 Restricted stock units at December 27, 2014 3,250,046 6.07 Granted 1,540,250 8.64 Vested (1,993,603 ) 6.00 Canceled (218,555 ) 6.36 Restricted stock units at December 26, 2015 2,578,138 $ 7.63 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The table below shows the stock-based compensation expense included in the Consolidated Statement of Operations (in thousands): Fiscal Years Ended December 26, December 27, December 28, Stock-based compensation expense included in: Cost of revenues $ 2,651 $ 2,433 $ 2,436 Research and development 3,490 3,529 3,440 Selling, general and administrative 5,434 7,317 6,248 Total stock-based compensation 11,575 13,279 12,124 Tax effect on stock-based compensation — — — Total stock-based compensation, net of tax $ 11,575 $ 13,279 $ 12,124 |
Schedule of Weighted Average Assumptions | The following weighted average assumptions were used in the estimated grant-date fair value calculations using the Black-Scholes option pricing model: Stock Options: Dividend yield — % Expected volatility 47.5 % Risk-free interest rate 1.6 % Expected term (in years) 5.5 The following weighted-average assumptions were used in the estimated grant-date fair value calculations for stock options granted in fiscal 2015 . There were no options granted in fiscal 2014 and 2013 . Stock Options: Dividend yield — % Expected volatility 47.5 % Risk-free interest rate 1.6 % Expected life (in years) 5.5 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used in estimating the fair value of employees' purchase rights under the approved employee stock purchase plans: Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Employee Stock Purchase Plan: Dividend yield — % — % — % Expected volatility 51.78 % 41.71 % 39.80 % Risk-free interest rate 0.12 % 0.09 % 0.13 % Expected life (in years) 0.7 0.7 0.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The components of loss before income taxes were as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 United States $ (3,069 ) $ (23,230 ) $ (60,447 ) Foreign 1,798 3,135 2,665 $ (1,271 ) $ (20,095 ) $ (57,782 ) |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes are as follows (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Current provision (benefit): Federal $ (3 ) $ (983 ) $ (770 ) State 72 (386 ) 76 Foreign 198 234 287 267 (1,135 ) (407 ) Deferred provision (benefit): Federal — — — State — — — Foreign (15 ) 225 308 (15 ) 225 308 Total provision (benefit) from income taxes $ 252 $ (910 ) $ (99 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the difference between income taxes computed by applying the federal statutory rate of 35% and the provision (benefit) from income taxes for fiscal 2015 , 2014 and 2013 (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 U.S. statutory federal tax rate $ (445 ) $ (7,033 ) $ (20,224 ) State taxes and credits, net of Federal benefit 17 (186 ) (345 ) Amortization of stock-based compensation 907 686 923 Research and development credits (1,872 ) (1,183 ) (560 ) Foreign taxes at rates different than the U.S. (66 ) (84 ) 162 Other permanent differences 238 (972 ) (378 ) Change in valuation allowance 1,457 7,886 20,505 Other 16 (24 ) (182 ) Total $ 252 $ (910 ) $ (99 ) |
Schedule of Deferred Tax Assets and Liabilities | Significant deferred tax assets and liabilities consist of the following (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 Tax credits $ 30,968 $ 28,458 Inventory reserve 14,010 16,612 Unrealized investment gains 20 — Other reserves and accruals 5,953 7,610 Non-statutory stock options 4,936 18,096 Depreciation and amortization 13,440 14,037 Net operating loss carryforwards 119,327 120,110 Gross deferred tax assets 188,654 204,923 Valuation allowance (176,196 ) (187,759 ) Total deferred tax assets 12,458 17,164 Acquired intangibles & fixed assets (9,177 ) (13,867 ) Unrealized investment gains — (3 ) Total deferred tax liabilities (9,177 ) (13,870 ) Net deferred tax assets $ 3,281 $ 3,294 |
Summary of Valuation Allowance | The valuation allowance against deferred tax assets consisted of the following activity for the fiscal years 2015 , 2014 and 2013 (in thousands): Description Balance at Additions Reduction Balance at Allowance against deferred tax assets Year ended December 31, 2015 $ 187,759 $ — $ (11,563 ) $ 176,196 Year ended December 31, 2014 180,913 6,846 — 187,759 Year ended December 31, 2013 $ 163,265 $ 17,648 $ — $ 180,913 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table reflects changes in the unrecognized tax benefits (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 Unrecognized tax benefit beginning balance $ 16,333 $ 16,972 $ 17,181 Additions based on tax positions related to the current year 667 498 307 Additions based on tax position from prior year 163 324 — Reductions for tax positions of prior years (18 ) (1,109 ) (60 ) Reductions to unrecognized tax benefits due to lapse of the applicable statute of limitations (112 ) (352 ) (456 ) Unrecognized tax benefit ending balance $ 17,033 $ 16,333 $ 16,972 |
Operating Segment and Geograp37
Operating Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Country as a Percentage of Total Revenues | The following table summarizes revenue by country as a percentage of total revenues based upon ship-to location: Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 South Korea 25.2 % 19.6 % 19.8 % North America 23.4 28.1 27.2 Taiwan 21.9 18.4 27.9 Asia-Pacific (1) 11.1 12.9 9.2 Japan 9.4 9.6 7.3 Europe 9.0 11.4 8.6 Total Revenues 100.0 % 100.0 % 100.0 % (1) Asia-Pacific includes all countries in the region except Taiwan, Japan and South Korea, which are disclosed separately. |
Schedule of Revenue by Product Group | The following table summarizes revenue by product group (in thousands): Fiscal Years Ended December 26, 2015 December 27, 2014 December 28, 2013 SoC $ 145,839 $ 142,360 $ 115,597 DRAM 125,512 110,800 92,603 Flash 11,007 15,370 23,333 Total revenues $ 282,358 $ 268,530 $ 231,533 |
Schedule of Long-Lived Assets, by Geographical Location | Long-lived assets, comprising of net property, plant and equipment, goodwill and net intangibles assets are reported based on the location of the asset. Long-lived assets by geographic location are as follows (in thousands): December 26, 2015 December 27, 2014 North America $ 77,257 $ 91,862 South Korea 1,128 1,578 Asia-Pacific (1) 689 935 Japan 295 358 Singapore 112 172 Europe 655 13 Total $ 80,136 $ 94,918 (1) Asia-Pacific includes all countries in the region except South Korea, Singapore, and Japan, which are disclosed separately. |
Schedule of Major Customers With Revenues Greater Than 10% | The following customers represented greater than 10% of our revenues in fiscal 2015 , fiscal 2014 and fiscal 2013 : Fiscal 2015 Fiscal 2014 Fiscal 2013 Intel 19.6 % 19.7 % 17.7 % Samsung 14.6 * * SK hynix 14.3 16.9 16.5 Micron 11.7 15.0 11.7 Total 60.2 % 51.6 % 45.9 % * Less than 10% of revenues |
Selected Quarterly Financial 38
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The results of operations for any quarter are not necessarily indicative of the results to be expected for any future period. Fiscal Quarters Ended Dec. 26, Sep. 26, June. 27, 2015 March 28, Dec. 27, Sep. 27, June. 28, March 29, (in thousands, except per share data) Revenues $ 71,782 $ 65,862 $ 73,885 $ 70,829 $ 71,285 $ 73,934 $ 67,352 $ 55,959 Cost of revenues 50,591 47,407 50,582 48,040 50,337 49,792 47,328 43,634 Gross profit 21,191 18,455 23,303 22,789 20,948 24,142 20,024 12,325 Operating Expenses: Research and development 11,236 10,645 11,217 11,086 10,706 11,198 11,074 9,747 Selling, general and administrative 10,719 11,108 11,381 11,882 12,631 13,309 13,191 12,254 Restructuring charges, net (3 ) 59 — 503 584 28 59 1,997 Impairment of long-lived assets — — 8 — 390 86 — 743 Total operating expenses 21,952 21,812 22,606 23,471 24,311 24,621 24,324 24,741 Operating income (loss) (761 ) (3,357 ) 697 (682 ) (3,363 ) (479 ) (4,300 ) (12,416 ) Interest income, net 70 65 65 85 69 75 79 79 Other income (expense), net (36 ) 982 100 1,501 155 228 (156 ) (66 ) Income (loss) before income taxes (727 ) (2,310 ) 862 904 (3,139 ) (176 ) (4,377 ) (12,403 ) Provision (benefit) for income taxes (108 ) 215 24 121 (1,268 ) 101 (51 ) 308 Net income (loss) $ (619 ) $ (2,525 ) $ 838 $ 783 $ (1,871 ) $ (277 ) $ (4,326 ) $ (12,711 ) Net income (loss) per share: Basic $ (0.01 ) $ (0.04 ) $ 0.01 $ 0.01 $ (0.03 ) $ 0.00 $ (0.08 ) $ (0.23 ) Diluted $ (0.01 ) $ (0.04 ) $ 0.01 $ 0.01 $ (0.03 ) $ 0.00 $ (0.08 ) $ (0.23 ) Weighted average number of shares used in per share calculations: Basic 58,128 58,209 58,109 56,594 56,472 56,297 55,812 55,050 Diluted 58,128 58,209 59,094 58,838 56,472 56,297 55,812 55,050 (1) In the first quarter of fiscal 2015, we recorded a $1.5 million gain from a business interruption insurance claim relating to a factory fire at a customer. See Note 16, Business Interruption Insurance Claim Recovery , to the Notes to Consolidated Financial Statements for further details. (2) In the third quarter of fiscal 2015, we recorded a $1.0 million net gain from the sale of intellectual property. See Note 9, Commitments and contingencies , to the Notes to Consolidated Financial Statements for further details. |
Formation and Business of the39
Formation and Business of the Company - Fiscal Year (Details) | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Number of weeks In fiscal year | P52W | P52W | P52W |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 435 | $ 435 |
Letter of Credit | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash | $ 400 | $ 0 |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Accounting Policies [Abstract] | |||
Aggregate inventory write downs. | $ 6,493 | $ 7,127 | $ 10,461 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Property, Plant, and Equipment (Details) | 12 Months Ended |
Dec. 26, 2015 | |
Machinery & Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Machinery & Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Computer equipment & Software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Computer equipment & Software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture & Fixtures | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 1 year |
Furniture & Fixtures | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Goodwill (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 26, 2015unitsegment | Dec. 26, 2015segment | Dec. 29, 2012unitsegment | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of Reportable Segments | 1 | 1 | 1 |
Number of Operating Segments | 1 | 2 | 2 |
Number of Reporting Units | unit | 1 | 2 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Intangibles (Details) | 12 Months Ended |
Dec. 26, 2015 | |
Minimum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weight Average Useful Life | 1 year |
Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weight Average Useful Life | 10 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Concentration of Credit Risk and Other Risks and Uncertainties (Details) - Customer Concentration Risk - Customer | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Sales Revenue, Goods, Net | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 60.20% | 51.60% | 45.90% |
Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Number of major customers. | 1 | 2 | |
Intel | Sales Revenue, Goods, Net | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 14.60% | ||
Samsung | Sales Revenue, Goods, Net | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 19.60% | 19.70% | 17.70% |
SK hynix | Sales Revenue, Goods, Net | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 14.30% | 16.90% | 16.50% |
Micron | Sales Revenue, Goods, Net | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 11.70% | 15.00% | 11.70% |
Major Customer 1 | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 29.00% | 26.00% | |
Major Customer 2 | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Percentage of concentration of risk | 18.00% |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Warrany Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty Accrual beginning balance | $ 1,592 | $ 691 |
Accruals | 2,536 | 2,972 |
Settlements | (3,012) | (2,071) |
Warranty Accrual ending balance | $ 1,116 | $ 1,592 |
Summary of Significant Accoun47
Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at Beginning of Year | $ 266 | $ 265 | $ 289 |
Additions | 20 | 5 | 0 |
Reductions | (2) | (4) | (24) |
Balance at End of Year | $ 284 | $ 266 | $ 265 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies - Restructuring Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Restructuring charges, net | $ 559 | $ 2,668 | $ 4,658 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Net Loss per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Accounting Policies [Abstract] | |||||||||||
Net loss | $ (619) | $ (2,525) | $ 838 | $ 783 | $ (1,871) | $ (277) | $ (4,326) | $ (12,711) | $ (1,523) | $ (19,185) | $ (57,683) |
Weighted-average shares used in computing basic net loss per share (in shares) | 58,128 | 58,209 | 58,109 | 56,594 | 56,472 | 56,297 | 55,812 | 55,050 | 57,850 | 55,908 | 54,204 |
Add potentially dilutive securities (in shares) | 0 | 0 | 0 | ||||||||
Weighted-average shares used in computing basic and diluted net loss per share (in shares) | 57,850 | 55,908 | 54,204 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Net Loss Per Share Weighted-Average Dilutive Securities (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of earnings per share | 4,906 | 2,902 | 4,200 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of earnings per share | 2,320 | 2,874 | 3,805 |
Restricted Stock Units (RSUs) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of earnings per share | 2,578 | 0 | 373 |
Employee stock purchase plan | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potentially dilutive securities excluded from computation of earnings per share | 8 | 28 | 22 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Accounting Policies [Abstract] | ||
Tax on marketable securities | $ 428 | $ 428 |
Unrealized loss on marketable securities, net of tax of $428 in fiscal 2015 and fiscal 2014, respectively | (483) | (419) |
Cumulative translation adjustments | (1,739) | (1,342) |
Accumulated other comprehensive loss | $ (2,222) | $ (1,761) |
Balance Sheet Components - Mark
Balance Sheet Components - Marketable Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Available-for-sale Securities [Abstract] | ||
Amortized Cost | $ 41,380,000 | $ 49,888,000 |
Available-for-sale Securities, Gross Unrealized Gains | 1,000 | 13,000 |
Available-for-sale Securities, Gross Unrealized Losses | (56,000) | (4,000) |
Available-for-sale Securities Fair Value | $ 41,325,000 | 49,897,000 |
Maximum Remaining Maturity of Foreign Currency Derivatives | 3 years | |
Continuous Unrealized Loss Position, 12 Months or More, Fair Value | $ 0 | 0 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Due in one year or less - Amortized Cost | 33,882,000 | 38,499,000 |
Due in one year to five years - Amortized Cost | 7,498,000 | 11,389,000 |
Amortized Cost | 41,380,000 | 49,888,000 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Due in one year or less - Fair Value | 33,871,000 | 38,509,000 |
Due in one year to five years - Fair Value | 7,454,000 | 11,388,000 |
Available-for-sale Securities Fair Value | 41,325,000 | 49,897,000 |
U.S. Treasuries | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 18,896,000 | 42,386,000 |
Available-for-sale Securities, Gross Unrealized Gains | 1,000 | 13,000 |
Available-for-sale Securities, Gross Unrealized Losses | (44,000) | (4,000) |
Available-for-sale Securities Fair Value | 18,853,000 | 42,395,000 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 18,896,000 | 42,386,000 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Available-for-sale Securities Fair Value | 18,853,000 | 42,395,000 |
Agency securities (Federal) | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 22,484,000 | 7,502,000 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | (12,000) | 0 |
Available-for-sale Securities Fair Value | 22,472,000 | 7,502,000 |
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity [Abstract] | ||
Amortized Cost | 22,484,000 | 7,502,000 |
Available-for-sale Securities, Debt Maturities, Fair Value, Rolling Maturity [Abstract] | ||
Available-for-sale Securities Fair Value | $ 22,472,000 | $ 7,502,000 |
Balance Sheet Components - Asse
Balance Sheet Components - Asset Retirement Obligation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation beginning balance | $ 903 | $ 988 |
Initial amount recorded for new asset retirement obligation | 10 | 0 |
Currency translation | 6 | (85) |
Asset retirement obligation ending balance | 919 | 903 |
Other Current Liabilities | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation beginning balance | 0 | |
Asset retirement obligation ending balance | 212 | 0 |
Other Noncurrent Liabilities | ||
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Asset retirement obligation beginning balance | 903 | |
Asset retirement obligation ending balance | $ 707 | $ 903 |
Balance Sheet Components - Inve
Balance Sheet Components - Inventory (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Balance Sheet Components [Abstract] | ||
Raw materials | $ 12,996 | $ 10,646 |
Work-in-progress | 12,492 | 12,813 |
Finished goods | 1,735 | 2,089 |
Inventory, Net | $ 27,223 | $ 25,548 |
Balance Sheet Components - Prop
Balance Sheet Components - Property Plant and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||||||||||
Property Plant And Equipment Gross, Excludes Construction in Progress Gross | $ 251,435 | $ 247,171 | $ 251,435 | $ 247,171 | |||||||
Less: Accumulated depreciation and amortization | (232,005) | (224,135) | (232,005) | (224,135) | |||||||
Net long-lived assets | 19,430 | 23,036 | 19,430 | 23,036 | |||||||
Construction-in-progress | 4,423 | 2,462 | 4,423 | 2,462 | |||||||
Property, plant and equipment, net | 23,853 | 25,498 | 23,853 | 25,498 | |||||||
Fully depreciated assets | 1,600 | 6,600 | 1,600 | 6,600 | |||||||
Impairment of long-lived assets | 0 | $ 0 | $ 8 | $ 0 | 390 | $ 86 | $ 0 | $ 743 | 8 | 1,219 | $ 761 |
Depreciation, excluding impairments | 10,600 | 11,700 | $ 12,200 | ||||||||
Machinery & Equipment | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property Plant And Equipment Gross, Excludes Construction in Progress Gross | 150,983 | 145,995 | 150,983 | 145,995 | |||||||
Computer equipment & Software | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property Plant And Equipment Gross, Excludes Construction in Progress Gross | 27,951 | 28,953 | 27,951 | 28,953 | |||||||
Furniture & Fixtures | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property Plant And Equipment Gross, Excludes Construction in Progress Gross | 5,380 | 5,402 | 5,380 | 5,402 | |||||||
Leasehold Improvements | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property Plant And Equipment Gross, Excludes Construction in Progress Gross | $ 67,121 | $ 66,821 | $ 67,121 | $ 66,821 |
Balance Sheet Components - Accr
Balance Sheet Components - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 12,286 | $ 12,431 |
Accrued indirect and other taxes | 2,189 | 2,223 |
Accrued commissions | 366 | 460 |
Accrued warranty | 1,116 | 1,592 |
Deferred rent | 325 | 216 |
Accrued restructuring | 2 | 584 |
Other accrued expense | 5,223 | 3,711 |
Total | $ 21,507 | $ 21,217 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Actions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 30, 2013 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Restructuring Reserve [Roll Forward] | ||||||||||||||
Restructuring reserve | $ 584 | $ 138 | $ 616 | $ 584 | $ 138 | $ 616 | ||||||||
Restructuring charges, net | $ (3) | $ 59 | $ 0 | 503 | $ 584 | $ 28 | $ 59 | 1,997 | $ 400 | 4,000 | 559 | 2,668 | 4,841 | |
Asset impairments | (600) | (2,743) | ||||||||||||
Adjustments to restructuring charges | (183) | |||||||||||||
Cash payments | (641) | (1,620) | (2,369) | |||||||||||
Non-cash settlements | (500) | (2) | (24) | |||||||||||
Restructuring reserve | 2 | 584 | 138 | $ 584 | 2 | 584 | 138 | |||||||
Employee Severance and Benefits | ||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Restructuring reserve | 584 | 138 | 548 | 584 | 138 | 548 | ||||||||
Restructuring charges, net | 1,400 | 1,300 | 700 | 59 | 2,068 | 2,083 | ||||||||
Asset impairments | 0 | 0 | ||||||||||||
Adjustments to restructuring charges | (178) | |||||||||||||
Cash payments | (641) | (1,620) | (2,320) | |||||||||||
Non-cash settlements | 0 | (2) | 5 | |||||||||||
Restructuring reserve | 2 | 584 | 138 | 584 | 2 | 584 | 138 | |||||||
Property and Equipment Impairment | ||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Restructuring reserve | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Restructuring charges, net | 0 | 600 | 2,743 | |||||||||||
Asset impairments | (600) | (2,743) | ||||||||||||
Adjustments to restructuring charges | (5) | |||||||||||||
Cash payments | 0 | 0 | (32) | |||||||||||
Non-cash settlements | 0 | 0 | 37 | |||||||||||
Restructuring reserve | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |||||||
Contract Termination and Other Costs | ||||||||||||||
Restructuring Reserve [Roll Forward] | ||||||||||||||
Restructuring reserve | $ 0 | $ 0 | $ 68 | 0 | 0 | 68 | ||||||||
Restructuring charges, net | 500 | 0 | 15 | |||||||||||
Asset impairments | 0 | 0 | ||||||||||||
Adjustments to restructuring charges | 0 | |||||||||||||
Cash payments | 0 | 0 | (17) | |||||||||||
Non-cash settlements | (500) | 0 | (66) | |||||||||||
Restructuring reserve | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) $ in Thousands | Jan. 27, 2014Employeepositions | Dec. 26, 2015USD ($) | Sep. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Mar. 28, 2015USD ($) | Dec. 27, 2014USD ($) | Sep. 27, 2014USD ($) | Jun. 28, 2014USD ($) | Mar. 29, 2014USD ($) | Dec. 28, 2013USD ($)Employeepositions | Mar. 30, 2013USD ($)Employeepositions | Dec. 27, 2014USD ($)positions | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 28, 2013USD ($) |
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring charges, net | $ 559 | $ 2,668 | $ 4,658 | ||||||||||||
Restructuring costs, positions eliminated | Employee | 52 | 17 | 31 | ||||||||||||
Restructuring costs, additional positions eliminated | positions | 9 | 17 | 20 | 5 | |||||||||||
Restructuring charges, net | $ (3) | $ 59 | $ 0 | $ 503 | $ 584 | $ 28 | $ 59 | $ 1,997 | $ 400 | $ 4,000 | 559 | 2,668 | 4,841 | ||
Share-based Compensation Expense | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring charges, net | 500 | ||||||||||||||
Employee Severance and Benefits | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring charges, net | 1,400 | 1,300 | $ 700 | 59 | 2,068 | 2,083 | |||||||||
Property and Equipment Impairment | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||||||
Restructuring charges, net | $ 0 | $ 600 | $ 2,743 | ||||||||||||
Impairment charges | $ 600 | $ 2,700 |
Derivative Financial Instrume59
Derivative Financial Instruments (Details) - Not Designated as Hedging Instrument - Foreign Exchange Forward ₩ in Thousands, ¥ in Thousands, TWD in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 26, 2015KRW (₩) | Dec. 26, 2015TWD | Dec. 26, 2015JPY (¥) | Dec. 27, 2014KRW (₩) | Dec. 27, 2014TWD | Dec. 27, 2014JPY (¥) | |
Derivatives, Fair Value [Line Items] | ||||||||
Notional amount of foreign currency derivatives | $ 25,781 | $ 13,651 | ||||||
Other Income, net | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Foreign exchange forward contracts gain (loss) | (310) | 1,768 | ||||||
Japanese Yen | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Notional amount of foreign currency derivatives | 27,635 | 16,241 | ¥ 3,328,268 | ¥ 1,955,798 | ||||
Taiwan Dollar | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Notional amount of foreign currency derivatives | 1,136 | 977 | TWD 37,152 | TWD 30,886 | ||||
Korean Won | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Notional amount of foreign currency derivatives | $ 718 | $ 1,613 | ₩ 840,111 | ₩ 1,763,054 |
Impairment of Long-lived Asse60
Impairment of Long-lived Assets - Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Impairment of long-lived assets: | |||||||||||
Assets held for sale | $ 0 | $ 191 | $ 0 | ||||||||
Assets to be disposed of other than by sale | 8 | 1,028 | 761 | ||||||||
Total | $ 0 | $ 0 | $ 8 | $ 0 | $ 390 | $ 86 | $ 0 | $ 743 | $ 8 | $ 1,219 | $ 761 |
Impairment of Long-lived Asse61
Impairment of Long-lived Assets - Assets Held for Sale (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Impairment of long-lived assets | $ 8,000 | $ 1,219,000 | $ 761,000 | ||||||||
Gain on sale of property and equipment | 1,009,000 | 10,000 | (365,000) | ||||||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 8,000 | $ 0 | $ 390,000 | $ 86,000 | $ 0 | $ 743,000 | $ 8,000 | 1,219,000 | $ 761,000 |
Long-lived assets classified as held for sale | $ 0 | 0 | |||||||||
Assets previously held for sale | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Impairment of long-lived assets | 200,000 | ||||||||||
Building | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Impairment of long-lived assets | 600,000 | ||||||||||
Gain on sale of property and equipment | 200,000 | ||||||||||
Machinery & Equipment | |||||||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||||||
Impairment of long-lived assets | 500,000 | ||||||||||
Gain on sale of property and equipment | $ 52,000 |
Impairment of Long-lived Asse62
Impairment of Long-lived Assets - Assets to be disposed of other than sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |||||||||||
Impairment of long-lived assets | $ 0 | $ 0 | $ 8 | $ 0 | $ 390 | $ 86 | $ 0 | $ 743 | $ 8 | $ 1,219 | $ 761 |
Fair Value - Asset Measured at
Fair Value - Asset Measured at Fair Value (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 41,325 | $ 49,897 |
Total | 124,260 | 115,200 |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 82,935 | 65,303 |
U.S. Treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 18,853 | 42,395 |
Agency securities (Federal) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 22,472 | 7,502 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | $ 82,935 | 65,303 |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net asset value (per share) | $ 1 | |
Cash equivalents | $ 82,935 | 65,303 |
Level 1 | U.S. Treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Agency securities (Federal) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total | 41,325 | 49,897 |
Level 2 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | U.S. Treasuries | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 18,853 | 42,395 |
Level 2 | Agency securities (Federal) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 22,472 | $ 7,502 |
Goodwill and Intangible Asset64
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 26, 2015USD ($)unit | Dec. 29, 2012unit | Dec. 27, 2014USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ | $ 30,731 | $ 30,731 | |
Number of Reporting Units | unit | 1 | 2 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets - Indefinite and Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross Amount, Beginning Balance | $ 66,688 | ||
Additions/Disposals | 6,900 | ||
Intangible Assets, Gross Amount, Ending Balance | 73,588 | $ 66,688 | |
Accumulated Amortization, Beginning Balance | 34,899 | ||
Expense, net | 13,137 | 18,800 | $ 16,700 |
Accumulated Amortization, Ending Balance | 48,036 | 34,899 | |
Intangible Assets, Net | 25,552 | 31,789 | |
Intangible Assets Net Excluding Goodwill [Roll Forward] | |||
Intangible Assets Net Excluding Goodwill Gross | 73,588 | ||
Intangible Assets Net Excluding Goodwill Acquired During Period | 0 | ||
Intangible Assets Net Excluding Goodwill Gross | 73,588 | 73,588 | |
Intangible Assets, Net (Excluding Goodwill) | 25,552 | 38,689 | |
Existing Developed Technologies | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross Amount, Beginning Balance | 45,300 | ||
Additions/Disposals | 6,900 | ||
Intangible Assets, Gross Amount, Ending Balance | 52,200 | 45,300 | |
Accumulated Amortization, Beginning Balance | 29,097 | ||
Expense, net | 10,484 | ||
Accumulated Amortization, Ending Balance | 39,581 | 29,097 | |
Intangible Assets, Net | $ 12,619 | 16,203 | |
Weight Average Useful Life | 2 years | ||
Trade name | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross Amount, Beginning Balance | $ 4,388 | ||
Additions/Disposals | 0 | ||
Intangible Assets, Gross Amount, Ending Balance | 4,388 | 4,388 | |
Accumulated Amortization, Beginning Balance | 970 | ||
Expense, net | 439 | ||
Accumulated Amortization, Ending Balance | 1,409 | 970 | |
Intangible Assets, Net | $ 2,979 | 3,418 | |
Weight Average Useful Life | 6 years 9 months 6 days | ||
Customer relationships | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Intangible Assets, Gross Amount, Beginning Balance | $ 17,000 | ||
Additions/Disposals | 0 | ||
Intangible Assets, Gross Amount, Ending Balance | 17,000 | 17,000 | |
Accumulated Amortization, Beginning Balance | 4,832 | ||
Expense, net | 2,214 | ||
Accumulated Amortization, Ending Balance | 7,046 | 4,832 | |
Intangible Assets, Net | $ 9,954 | 12,168 | |
Weight Average Useful Life | 4 years 9 months 6 days | ||
In Process Research and Development | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Additions/Disposals | $ 6,900 | ||
Weight Average Useful Life | 2 years 9 months 6 days | ||
Indefinite-lived Intangible Assets [Roll Forward] | |||
Indefinite-lived Intangible Assets, Beginning Balance | $ 6,900 | ||
Indefinite-lived Intangible Assets, Additions/Disposals During Period | (6,900) | ||
Indefinite-lived Intangible Assets, Ending balance | 0 | $ 6,900 | |
Intangible Assets Disposed of by Sale | Existing Developed Technologies | |||
Finite-lived Intangible Assets [Roll Forward] | |||
Additions/Disposals | $ 5,900 |
Goodwill and Intangible Asset66
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | $ 13,137 | $ 18,800 | $ 16,700 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Rolling Maturity [Abstract] | |||
2,016 | 10,060 | ||
2,017 | 4,943 | ||
2,018 | 4,666 | ||
2,019 | 3,052 | ||
2,020 | 2,045 | ||
and thereafter | 786 | ||
Total | 25,552 | ||
Intellectual Property | Cost of Sales | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | 10,400 | 16,100 | 13,800 |
Intellectual Property | Selling, General and Administrative Expenses | |||
Property, Plant and Equipment [Line Items] | |||
Amortization of intangible assets | $ 2,700 | $ 2,700 | $ 2,900 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | Jul. 17, 2015USD ($) | Jul. 13, 2015USD ($)tranche | Sep. 26, 2015USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 28, 2013USD ($) | Dec. 29, 2012USD ($) |
Loss Contingencies [Line Items] | |||||||
Rent Expense | $ 4,900 | $ 4,800 | $ 4,900 | ||||
Depreciation expense under capital leases | 200 | 500 | |||||
Unrecognized Tax Benefits | $ 17,033 | $ 16,333 | $ 16,972 | $ 17,181 | |||
MarTek | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement amount | $ 2,000 | ||||||
Receivable from legal settlement, number of equal tranches | tranche | 2 | ||||||
MarTek | Other Income, net | Settled Litigation | |||||||
Loss Contingencies [Line Items] | |||||||
Gain related to legal settlement | $ 1,000 | ||||||
MarTek | Cash | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement amount | $ 1,200 | ||||||
MarTek | Notes Receivable | |||||||
Loss Contingencies [Line Items] | |||||||
Litigation settlement amount | $ 800 |
Commitments and Contingencies68
Commitments and Contingencies - Operating Lease (Details) $ in Thousands | Dec. 26, 2015USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,016 | $ 3,994 |
2017-2018 | 7,194 |
2019-2020 | 7,064 |
Thereafter | 2,505 |
Total | $ 20,757 |
Commitments and Contingencies69
Commitments and Contingencies - Other Contractual Obligations (Details) $ in Thousands | Dec. 26, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,016 | $ 20,899 |
2017-2018 | 9,580 |
2019-2020 | 30 |
After 2,020 | 0 |
Total | $ 30,509 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Dec. 26, 2015 | Dec. 27, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred Stock, Shares Authorized (Shares) | 10,000,000 | 10,000,000 |
Preferred Stock, Par or Stated Value (Per Share) | $ 0.001 | $ 0.001 |
Preferred Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Preferred Stock, Shares Authorized (Shares) | 10,000,000 | |
Preferred Stock, Par or Stated Value (Per Share) | $ 0.001 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2015 | Apr. 16, 2015 | |
Class of Stock [Line Items] | ||
Stock repurchased during the period, amount | $ 8,211 | |
Common Stock | ||
Class of Stock [Line Items] | ||
Stock repurchase program authorized amount | $ 25,000 | |
Stock repurchased during the period (in shares) | 1,013,162 | |
Stock repurchased during the period, amount | $ 8,200 |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans (Details) - USD ($) | Feb. 09, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | May. 01, 2015 | Jan. 01, 2015 |
Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total amount of shares authorized (in shares) | 4,500,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Number of Shares Outstanding | 2,571,376 | |||||
Stock options granted (in shares) | 456,000 | 0 | 0 | |||
Options exercised (Shares) | (24,607) | |||||
Options canceled (Shares) | (682,574) | |||||
Number of Shares Outstanding | 2,320,195 | 2,571,376 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||||||
Weighted Average Exercise Price Outstanding (Per Share) | $ 10.72 | |||||
Weighted Average Exercise Price, Options granted (Per Share) | 8.42 | |||||
Weighted Average Exercise Price, Options exercised (Per Share) | 8.61 | |||||
Weighted Average Exercise Price, Options canceled (Per Share) | 13.75 | |||||
Weighted Average Exercise Price Outstandin (Per Share) | $ 9.40 | $ 10.72 | ||||
Weighted Average Remaining Contractual Life in Years | 2 years 8 months 12 days | |||||
Aggregate Intrinsic Value | $ 1,146,680 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest [Abstract] | ||||||
Vested and expected to vest at December 27, 2014 (Shares) | 2,320,195 | |||||
Weighted Average Exercise Price, Vested and expected to vest at December 27, 2014 (Per Share) | $ 9.40 | |||||
Weighted Average Remaining Contractual Term | 2 years 8 months 12 days | |||||
Aggregate Intrinsic Value | $ 1,146,680 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Exercisable at December 27, 2014 (Shares) | 1,864,861 | |||||
Weighted average exercise price, exercisable (Per Share) | $ 9.64 | |||||
Weighted Average Remaining Contractual Term | 1 year 10 months 8 days | |||||
Aggregate Intrinsic Value | $ 833,552 | |||||
Stock Options | Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock conversion rate | 1.70 | |||||
Stock option vesting period | 4 years | |||||
Stock Options Granted, Expiration Period | 10 years | |||||
Shares available for grant (in shares) | 5,800,000 | |||||
Stock Appreciation Rights (SARs) | Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock option vesting period | 4 years | |||||
Chief Executive Officer | Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options granted | 450,000 | |||||
Stock-based compensation expense | $ 1,700,000 |
Stockholders' Equity - Weighted
Stockholders' Equity - Weighted Average Assumptions (Details) | 12 Months Ended |
Dec. 26, 2015 | |
Statement of Stockholders' Equity [Abstract] | |
Dividend yield | 0.00% |
Expected volatility | 47.50% |
Risk-free interest rate | 1.60% |
Expected term (in years) | 5 years 6 months 6 days |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units (Details) - Restricted Stock Units (RSUs) $ / shares in Units, $ in Millions | May. 28, 2015USD ($)executiveshares | Apr. 08, 2015shares | May. 05, 2014USD ($)executiveshares | May. 06, 2013executiveshares | Dec. 26, 2015USD ($)$ / sharesshares | Dec. 27, 2014USD ($)$ / sharesshares | Dec. 28, 2013USD ($)$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Vested (Shares) | (443,750) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Stock options granted | 195,000 | 350,000 | 355,000 | ||||
Number of recipients | executive | 7 | 7 | 7 | ||||
Stock-based compensation expense | $ | $ 1.5 | $ 1.8 | |||||
Fair value of restricted stock units vested during the period | $ | $ 18.1 | $ 8.2 | $ 3.9 | ||||
Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Restricted stock units (Shares) | 3,250,046 | 2,929,639 | 2,228,946 | ||||
Granted (in shares) | 1,540,250 | 1,900,000 | 1,708,000 | ||||
Vested (Shares) | (1,993,603) | (1,282,442) | (760,590) | ||||
Canceled (Shares) | (218,555) | (297,151) | (246,717) | ||||
Restricted stock units (Shares) | 2,578,138 | 3,250,046 | 2,929,639 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Restricted stock units (Per Share) | $ / shares | $ 6.07 | $ 5.88 | $ 7.66 | ||||
Granted (in dollars per share) | $ / shares | 8.64 | 6.52 | 5.04 | ||||
Vested (Per Share) | $ / shares | 6 | 6.30 | 8.44 | ||||
Canceled (Per Share) | $ / shares | 6.36 | 6.17 | 8.18 | ||||
Restricted stock units (Per Share) | $ / shares | $ 7.63 | $ 6.07 | $ 5.88 |
Stockholders' Equity - Employee
Stockholders' Equity - Employee Stock Purchase Plan (Details) | 12 Months Ended | ||
Dec. 26, 2015purchase_period$ / sharesshares | Dec. 27, 2014$ / sharesshares | Dec. 28, 2013$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount from market price, offering date | 85.00% | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of purchase periods, 12 months offering period | 2 | ||
Number of purchase periods, 6 months offering period | 1 | ||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | shares | 565,493 | 586,386 | 583,173 |
Weighted average exercise price, exercisable (Per Share) | $ / shares | $ 5.67 | $ 4.80 | $ 4.29 |
Stock-Based Compensation - Incl
Stock-Based Compensation - Included in Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax effect on stock-based compensation | $ (6,300) | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 11,575 | $ 13,279 | $ 12,124 |
Tax effect on stock-based compensation | 0 | 0 | 0 |
Total stock-based compensation, net of tax | 11,575 | 13,279 | 12,124 |
Employee Stock | Cost of Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,651 | 2,433 | 2,436 |
Employee Stock | Research and Development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 3,490 | 3,529 | 3,440 |
Employee Stock | Selling, General and Administrative Expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 5,434 | $ 7,317 | $ 6,248 |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Expected volatility | 47.50% | ||
Risk-free interest rate | 1.60% | ||
Expected life (in years) | 5 years 6 months 6 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | ||
Expected volatility | 47.50% | ||
Risk-free interest rate | 1.60% | ||
Expected life (in years) | 5 years 6 months 6 days | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 51.78% | 41.71% | 39.80% |
Risk-free interest rate | 0.12% | 0.09% | 0.13% |
Expected life (in years) | 8 months | 8 months | 8 months |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 30, 2013 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restructuring charges, net | $ (3) | $ 59 | $ 0 | $ 503 | $ 584 | $ 28 | $ 59 | $ 1,997 | $ 400 | $ 4,000 | $ 559 | $ 2,668 | $ 4,841 |
Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Unamortized stock-based compensation balance | 1,300 | $ 1,300 | |||||||||||
Amortization period for stock-based compensation balance | 3 years 1 month 6 days | ||||||||||||
Employee Stock | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Amortization period for stock-based compensation balance | 1 month | ||||||||||||
Issuance of common stock under the Employee Stock Purchase Plan (in shares) | 565,493 | 586,386 | 583,173 | ||||||||||
Total compensation cost not yet recognized, other than options | 100 | $ 100 | |||||||||||
Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Amortization period for stock-based compensation balance | 2 years 11 days | ||||||||||||
Equity Incentive Plan | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock options granted (in shares) | 456,000 | 0 | 0 | ||||||||||
Equity Incentive Plan | Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option vesting period | 4 years | ||||||||||||
Weighted average fair value (in dollars per share) | $ 3.78 | ||||||||||||
Equity Incentive Plan | Restricted Stock Units (RSUs) | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Total compensation cost not yet recognized, other than options | $ 11,800 | $ 11,800 | |||||||||||
Ristricted stock units granted (in shares) | 1,540,250 | 1,900,000 | 1,708,000 | ||||||||||
Weighted average grant value (in dollars per share) | $ 8.64 | $ 6.52 | $ 5.04 | ||||||||||
Minimum | Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option vesting period | 3 years | ||||||||||||
Stock option expiration date | 5 years | ||||||||||||
Maximum | Stock Options | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock option vesting period | 4 years | ||||||||||||
Stock option expiration date | 10 years | ||||||||||||
Share-based Compensation Expense | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Restructuring charges, net | $ 500 |
Income Taxes - Components (Deta
Income Taxes - Components (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||||||||
United States | $ (3,069) | $ (23,230) | $ (60,447) | ||||||||
Foreign | 1,798 | 3,135 | 2,665 | ||||||||
Loss before income taxes | $ (727) | $ (2,310) | $ 862 | $ 904 | $ (3,139) | $ (176) | $ (4,377) | $ (12,403) | $ (1,271) | $ (20,095) | $ (57,782) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Current provision (benefit): | |||||||||||
Federal | $ (3) | $ (983) | $ (770) | ||||||||
State | 72 | (386) | 76 | ||||||||
Foreign | 198 | 234 | 287 | ||||||||
Total | 267 | (1,135) | (407) | ||||||||
Deferred provision (benefit): | |||||||||||
Federal | 0 | 0 | 0 | ||||||||
State | 0 | 0 | 0 | ||||||||
Foreign | (15) | 225 | 308 | ||||||||
Deferred income tax provision (benefit) | (15) | 225 | 308 | ||||||||
Total provision (benefit) from income taxes | $ (108) | $ 215 | $ 24 | $ 121 | $ (1,268) | $ 101 | $ (51) | $ 308 | $ 252 | $ (910) | $ (99) |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal statutory rate | 35.00% | 35.00% | 35.00% | ||||||||
Income Tax Reconciliation, Other Reconciling Items [Abstract] | |||||||||||
U.S. statutory federal tax rate | $ (445) | $ (7,033) | $ (20,224) | ||||||||
State taxes and credits, net of Federal benefit | 17 | (186) | (345) | ||||||||
Amortization of stock-based compensation | 907 | 686 | 923 | ||||||||
Research and development credits | (1,872) | (1,183) | (560) | ||||||||
Foreign taxes at rates different than the U.S. | (66) | (84) | 162 | ||||||||
Other permanent differences | 238 | (972) | (378) | ||||||||
Change in valuation allowance | 1,457 | 7,886 | 20,505 | ||||||||
Other | 16 | (24) | (182) | ||||||||
Total provision (benefit) from income taxes | $ (108) | $ 215 | $ 24 | $ 121 | $ (1,268) | $ 101 | $ (51) | $ 308 | $ 252 | $ (910) | $ (99) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 |
Deferred Tax Assets, Net, Classification [Abstract] | ||||
Tax credits | $ 30,968 | $ 28,458 | ||
Inventory reserve | 14,010 | 16,612 | ||
Unrealized investment gains, asset | 20 | 0 | ||
Other reserves and accruals | 5,953 | 7,610 | ||
Non-statutory stock options | 4,936 | 18,096 | ||
Depreciation and amortization | 13,440 | 14,037 | ||
Net operating loss carryforwards | 119,327 | 120,110 | ||
Gross deferred tax assets | 188,654 | 204,923 | ||
Valuation allowance | (176,196) | (187,759) | $ (180,913) | $ (163,265) |
Total deferred tax assets | 12,458 | 17,164 | ||
Deferred Tax Liabilities, Net, Classification [Abstract] | ||||
Acquired intangibles & fixed assets | (9,177) | (13,867) | ||
Unrealized investment gains, liability | 0 | (3) | ||
Total deferred tax liabilities | (9,177) | (13,870) | ||
Net deferred tax assets | $ 3,281 | $ 3,294 |
Income Taxes - Valuation Allowa
Income Taxes - Valuation Allowance Against Deferred Tax Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Tax effect on stock-based compensation | $ (6,300) | ||
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Balance at Beginning of Year | 187,759 | $ 180,913 | $ 163,265 |
Additions | 0 | 6,846 | 17,648 |
Reduction | (11,563) | 0 | 0 |
Balance at End of Year | 176,196 | $ 187,759 | $ 180,913 |
Federal | |||
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Federal research and development tax credit, carryforwards. | 21,000 | ||
Federal foreign tax credit carryforwards. | 298,700 | ||
Federal foreign tax credit carryforwards. | 2,000 | ||
Alternative minimum tax credits. | 2,400 | ||
California | |||
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Federal foreign tax credit carryforwards. | 270,700 | ||
California research credit carryforwards. | 28,400 | ||
Japan | |||
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Singapore net operating loss carryforwards. | 300 | ||
Singapore | |||
Deferred Tax Assets Valuation Allowance [Roll Forward] | |||
Singapore net operating loss carryforwards. | $ 10,000 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | |||
Repatriation of earnings of foreign subsidiaries. | $ 5,400 | ||
Deferred tax liability, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 400 | ||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefit beginning balance | 16,333 | $ 16,972 | $ 17,181 |
Additions based on tax positions related to the current year | 667 | 498 | 307 |
Additions based on tax position from prior year | 163 | 324 | 0 |
Reductions for tax positions of prior years | (18) | (1,109) | (60) |
Reductions to unrecognized tax benefits due to lapse of the applicable statute of limitations | (112) | (352) | (456) |
Unrecognized tax benefit ending balance | 17,033 | 16,333 | 16,972 |
Amount of unrecognized tax benefit if recognized, would impact the effective tax rate. | 1,100 | ||
As part of the income tax provision we recognized interest charges (benefit) and penalties. | 50 | (100) | $ (200) |
Amount of accrued interest charges and penalties. | $ 200 | $ 100 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employees maximum annual contribution (percent) | 50.00% | ||
Cost recognized under defined contribution plans | $ 1.1 | $ 1 | $ 1 |
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Employer matching contribution, (percent) | 1.50% |
Operating Segment and Geograp86
Operating Segment and Geographic Information - Schedule of Revenue by Country as a Percent of Total Revenues (Details) - segment | 3 Months Ended | 12 Months Ended | ||||
Dec. 26, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 29, 2012 | ||
Product Information [Line Items] | ||||||
Number of Reportable Segments | 1 | 1 | 1 | |||
Number of Operating Segments | 1 | 2 | 2 | |||
Geographic Concentration Risk | Sales Revenue, Goods, Net | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | 100.00% | 100.00% | 100.00% | |||
Geographic Concentration Risk | Sales Revenue, Goods, Net | South Korea | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | 25.20% | 19.60% | 19.80% | |||
Geographic Concentration Risk | Sales Revenue, Goods, Net | North America | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | 23.40% | 28.10% | 27.20% | |||
Geographic Concentration Risk | Sales Revenue, Goods, Net | Taiwan | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | 21.90% | 18.40% | 27.90% | |||
Geographic Concentration Risk | Sales Revenue, Goods, Net | Asia-Pacific | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | [1] | 11.10% | 12.90% | 9.20% | ||
Geographic Concentration Risk | Sales Revenue, Goods, Net | Japan | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | 9.40% | 9.60% | 7.30% | |||
Geographic Concentration Risk | Sales Revenue, Goods, Net | Europe | ||||||
Product Information [Line Items] | ||||||
Percentage of concentration of risk | 9.00% | 11.40% | 8.60% | |||
[1] | Asia-Pacific includes all countries in the region except Taiwan, Japan and South Korea, which are disclosed separately. |
Operating Segment and Geograp87
Operating Segment and Geographic Information - Schedule of Revenue by Product Group (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Revenue from External Customers [Line Items] | |||||||||||
Revenues | $ 71,782 | $ 65,862 | $ 73,885 | $ 70,829 | $ 71,285 | $ 73,934 | $ 67,352 | $ 55,959 | $ 282,358 | $ 268,530 | $ 231,533 |
SoC | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | 145,839 | 142,360 | 115,597 | ||||||||
DRAM | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | 125,512 | 110,800 | 92,603 | ||||||||
Flash | |||||||||||
Revenue from External Customers [Line Items] | |||||||||||
Revenues | $ 11,007 | $ 15,370 | $ 23,333 |
Operating Segment and Geograp88
Operating Segment and Geographic Information - Schedule of Long-Lived Assets by Geographical Location (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Dec. 27, 2014 | |
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 80,136 | $ 94,918 | |
North America | |||
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 77,257 | 91,862 | |
South Korea | |||
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 1,128 | 1,578 | |
Asia-Pacific | |||
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | [1] | 689 | 935 |
Japan | |||
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 295 | 358 | |
Singapore | |||
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | 112 | 172 | |
Europe | |||
Long-Lived Assets [Line Items] | |||
Long-Lived Assets | $ 655 | $ 13 | |
[1] | Asia-Pacific includes all countries in the region except South Korea, Singapore, and Japan, which are disclosed separately. |
Operating Segment and Geograp89
Operating Segment and Geographic Information - Schedule of Major Customers With Revenues Greater Than 10% (Details) - Customer Concentration Risk - Sales Revenue, Goods, Net | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Revenue, Major Customer [Line Items] | |||
Percentage of concentration of risk | 60.20% | 51.60% | 45.90% |
Samsung | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration of risk | 19.60% | 19.70% | 17.70% |
Intel | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration of risk | 14.60% | ||
SK hynix | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration of risk | 14.30% | 16.90% | 16.50% |
Micron | |||
Revenue, Major Customer [Line Items] | |||
Percentage of concentration of risk | 11.70% | 15.00% | 11.70% |
Selected Quarterly Financial 90
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Mar. 30, 2013 | Dec. 26, 2015 | Dec. 27, 2014 | Dec. 28, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||||
Revenues | $ 71,782 | $ 65,862 | $ 73,885 | $ 70,829 | $ 71,285 | $ 73,934 | $ 67,352 | $ 55,959 | $ 282,358 | $ 268,530 | $ 231,533 | ||
Cost of revenues | 50,591 | 47,407 | 50,582 | 48,040 | 50,337 | 49,792 | 47,328 | 43,634 | 196,620 | 191,091 | 189,249 | ||
Gross profit | 21,191 | 18,455 | 23,303 | 22,789 | 20,948 | 24,142 | 20,024 | 12,325 | 85,738 | 77,439 | 42,284 | ||
Research and development | 11,236 | 10,645 | 11,217 | 11,086 | 10,706 | 11,198 | 11,074 | 9,747 | 44,184 | 42,725 | 42,139 | ||
Selling, general and administrative | 10,719 | 11,108 | 11,381 | 11,882 | 12,631 | 13,309 | 13,191 | 12,254 | 45,090 | 51,385 | 53,217 | ||
Restructuring charges, net | (3) | 59 | 0 | 503 | 584 | 28 | 59 | 1,997 | $ 400 | $ 4,000 | 559 | 2,668 | 4,841 |
Impairment of long-lived assets | 0 | 0 | 8 | 0 | 390 | 86 | 0 | 743 | 8 | 1,219 | 761 | ||
Total operating expenses | 21,952 | 21,812 | 22,606 | 23,471 | 24,311 | 24,621 | 24,324 | 24,741 | 89,841 | 97,997 | 101,075 | ||
Operating income (loss) | (761) | (3,357) | 697 | (682) | (3,363) | (479) | (4,300) | (12,416) | (4,103) | (20,558) | (58,791) | ||
Interest income, net | 70 | 65 | 65 | 85 | 69 | 75 | 79 | 79 | 285 | 302 | 386 | ||
Other income, net | (36) | 982 | 100 | 1,501 | 155 | 228 | (156) | (66) | 2,547 | 161 | 623 | ||
Income (loss) before income taxes | (727) | (2,310) | 862 | 904 | (3,139) | (176) | (4,377) | (12,403) | (1,271) | (20,095) | (57,782) | ||
Provision (benefit) from income taxes | (108) | 215 | 24 | 121 | (1,268) | 101 | (51) | 308 | 252 | (910) | (99) | ||
Net loss | $ (619) | $ (2,525) | $ 838 | $ 783 | $ (1,871) | $ (277) | $ (4,326) | $ (12,711) | $ (1,523) | $ (19,185) | $ (57,683) | ||
Net loss per share: Basic (usd per share) | $ (0.01) | $ (0.04) | $ 0.01 | $ 0.01 | $ (0.03) | $ 0 | $ (0.08) | $ (0.23) | |||||
Net loss per share: Diluted (usd per share) | $ (0.01) | $ (0.04) | $ 0.01 | $ 0.01 | $ (0.03) | $ 0 | $ (0.08) | $ (0.23) | |||||
Weighted average number of shares used in per share calculations: Basic (in shares) | 58,128 | 58,209 | 58,109 | 56,594 | 56,472 | 56,297 | 55,812 | 55,050 | 57,850 | 55,908 | 54,204 | ||
Weighted average number of shares used in per share calculations: Diluted (in shares) | 58,128 | 58,209 | 59,094 | 58,838 | 56,472 | 56,297 | 55,812 | 55,050 | |||||
Other Nonoperating Income (Expense) | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Proceeds from business interruption insurance recovery | $ 1,500 | $ 1,500 | |||||||||||
Settled Litigation | MarTek | Other Income, net | |||||||||||||
Loss Contingencies [Line Items] | |||||||||||||
Gain related to legal settlement | $ 1,000 |
Business Interruption Insuran91
Business Interruption Insurance Claim Recovery (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 28, 2015 | Dec. 26, 2015 | |
Other Nonoperating Income (Expense) | ||
Business Interruption Loss [Line Items] | ||
Proceeds from business interruption insurance recovery | $ 1.5 | $ 1.5 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, $ in Millions | Feb. 03, 2016USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |
Cash paid to acquire business (in usd per share) | $ / shares | $ 16 |
Shares issued to acquire business (in shares) | shares | 0.6534 |
Senior Secured Term Loan | |
Subsequent Event [Line Items] | |
Senior secured loan to finance merger | $ | $ 150 |