Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Nov. 30, 2013 | |
Document and Entity Information | ' |
Entity Registrant Name | 'XYRATEX LTD |
Entity Central Index Key | '0001284823 |
Document Type | '20-F |
Document Period End Date | 30-Nov-13 |
Amendment Flag | 'false |
Current Fiscal Year End Date | '--11-30 |
Entity Well-known Seasoned Issuer | 'No |
Entity Voluntary Filers | 'No |
Entity Current Reporting Status | 'Yes |
Entity Filer Category | 'Accelerated Filer |
Entity Common Stock, Shares Outstanding | 27,562,789 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'FY |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $102,992 | $117,174 |
Accounts receivable, net | 90,835 | 132,917 |
Inventories | 132,227 | 171,605 |
Prepaid expenses | 3,316 | 3,134 |
Deferred income taxes | 762 | 228 |
Other current assets | 11,612 | 7,121 |
Total current assets | 341,744 | 432,179 |
Property, plant and equipment, net | 41,595 | 40,194 |
Intangible assets, net | 14,274 | 14,975 |
Deferred income taxes | 6,583 | 23,929 |
Total assets | 404,196 | 511,277 |
Current liabilities: | ' | ' |
Accounts payable | 67,061 | 82,125 |
Employee compensation and benefits payable | 18,896 | 17,961 |
Deferred revenue | 4,880 | 18,521 |
Income taxes payable | 1,649 | 369 |
Other accrued liabilities | 16,886 | 17,767 |
Total current liabilities | 109,372 | 136,743 |
Total liabilities | 109,372 | 136,743 |
Commitments and contingencies (note 13) | ' | ' |
Shareholders' equity | ' | ' |
Common shares (in thousands), par value $0.01 per share 70,000 authorized, 27,563 and 27,024 issued and outstanding | 275 | 270 |
Additional paid-in capital | 312,391 | 354,593 |
Accumulated other comprehensive income | 2,123 | 863 |
Accumulated income (deficit) | -19,965 | 18,808 |
Total shareholders' equity | 294,824 | 374,534 |
Total liabilities and shareholders' equity | $404,196 | $511,277 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | ' |
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, authorized shares | 70,000 | 70,000 |
Common shares, issued shares | 27,563 | 27,024 |
Common shares, outstanding shares | 27,563 | 27,024 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHESIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' | ' |
Revenues | $814,318 | $1,158,898 | $1,448,476 |
Cost of revenues | 643,237 | 963,062 | 1,226,404 |
Gross profit | 171,081 | 195,836 | 222,072 |
Operating expenses: | ' | ' | ' |
Research and development | 98,101 | 103,667 | 115,558 |
Selling, general and administrative | 69,466 | 68,432 | 66,377 |
Amortization of intangible assets | 2,057 | 3,154 | 4,176 |
Impairment of intangible assets | 0 | ' | 2,230 |
Restructuring costs | 3,672 | 4,120 | 2,750 |
Total operating expenses | 173,296 | 179,373 | 191,091 |
Operating income (loss) | -2,215 | 16,463 | 30,981 |
Interest income | 258 | 801 | 397 |
Interest expense | -1 | -2 | -5 |
Income (loss) before income taxes | -1,958 | 17,262 | 31,373 |
Provision (benefit) for income taxes | 19,253 | -398 | 3,076 |
Net income (loss) | -21,211 | 17,660 | 28,297 |
Net earnings per share: | ' | ' | ' |
Basic (in dollars per share) | ($0.77) | $0.64 | $0.96 |
Diluted (in dollars per share) | ($0.77) | $0.63 | $0.92 |
Weighted average common shares (in thousands), used in computing net earnings per share: | ' | ' | ' |
Basic (in shares) | 27,463 | 27,513 | 29,605 |
Diluted (in shares) | 27,463 | 28,199 | 30,631 |
Cash dividends declared per share (in dollars per share) | $2.30 | $0.29 | $0.11 |
Comprehensive income (loss): | ' | ' | ' |
Net income (loss) | -21,211 | 17,660 | 28,297 |
Unrealized gain (loss) on forward foreign currency contracts | 438 | 1,323 | -1,337 |
Reclassification of loss (gain) into net income | 822 | 877 | -496 |
Total comprehensive income | ($19,951) | $19,860 | $26,464 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $) | Total | Common Shares | Additional paid-in capital | Accumulated income (deficit) | Accumulated other comprehensive income (loss) |
In Thousands, unless otherwise specified | |||||
Balances at Nov. 30, 2010 | $367,331 | $303 | $382,684 | ($16,152) | $496 |
Balances (in shares) at Nov. 30, 2010 | ' | 30,276 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common shares | 3,344 | 9 | 3,335 | ' | ' |
Issuance of common shares (in shares) | ' | 894 | ' | ' | ' |
Repurchase of common shares | -32,290 | -36 | -32,254 | ' | ' |
Repurchase of common shares (in shares) | -3,602 | -3,602 | ' | ' | ' |
Non-cash equity compensation | 7,127 | ' | 7,127 | ' | ' |
Tax on equity compensation | 178 | ' | 178 | ' | ' |
Net income (loss) | 28,297 | ' | ' | 28,297 | ' |
Other comprehensive income | -1,833 | ' | ' | ' | -1,833 |
Dividends to shareholders | -2,980 | ' | ' | -2,980 | ' |
Balances at Nov. 30, 2011 | 369,174 | 276 | 361,070 | 9,165 | -1,337 |
Balances (in shares) at Nov. 30, 2011 | ' | 27,568 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common shares | 661 | 6 | 655 | ' | ' |
Issuance of common shares (in shares) | ' | 655 | ' | ' | ' |
Repurchase of common shares | -13,600 | -12 | -13,588 | ' | ' |
Repurchase of common shares (in shares) | -1,199 | -1,199 | ' | ' | ' |
Non-cash equity compensation | 6,602 | ' | 6,602 | ' | ' |
Tax on equity compensation | -146 | ' | -146 | ' | ' |
Net income (loss) | 17,660 | ' | ' | 17,660 | ' |
Other comprehensive income | 2,200 | ' | ' | ' | 2,200 |
Dividends to shareholders | -8,017 | ' | ' | -8,017 | ' |
Balances at Nov. 30, 2012 | 374,534 | 270 | 354,593 | 18,808 | 863 |
Balances (in shares) at Nov. 30, 2012 | 27,024 | 27,024 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' |
Issuance of common shares | 30 | 5 | 25 | ' | ' |
Issuance of common shares (in shares) | ' | 539 | ' | ' | ' |
Repurchase of common shares (in shares) | 0 | ' | ' | ' | ' |
Non-cash equity compensation | 3,158 | ' | 3,158 | ' | ' |
Tax on equity compensation | -713 | ' | -713 | ' | ' |
Net income (loss) | -21,211 | ' | ' | -21,211 | ' |
Other comprehensive income | 1,260 | ' | ' | ' | 1,260 |
Dividends to shareholders | -62,234 | ' | -44,672 | -17,562 | ' |
Balances at Nov. 30, 2013 | $294,824 | $275 | $312,391 | ($19,965) | $2,123 |
Balances (in shares) at Nov. 30, 2013 | 27,563 | 27,563 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Basic | ($21,211) | $17,660 | $28,297 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 15,760 | 17,936 | 19,405 |
Amortization of intangible assets | 2,057 | 3,154 | 4,176 |
Impairment of intangible assets | 0 | ' | 2,230 |
Non-cash equity compensation | 3,158 | 6,602 | 7,127 |
Loss on sale of assets | ' | 2,297 | 1,299 |
Deferred income taxes | 16,387 | -2,541 | 1,438 |
Changes in assets and liabilities, net of impact of acquisitions and divestitures | ' | ' | ' |
Accounts receivable | 42,082 | 67,825 | 8,753 |
Inventories | 39,378 | -7,425 | 31,846 |
Prepaid expenses and other current assets | -3,701 | 1,208 | -3,971 |
Accounts payable | -15,064 | -86,571 | 15,162 |
Employee compensation and benefits payable | 935 | -3,825 | -852 |
Deferred revenue | -13,641 | 10,829 | -10,266 |
Income taxes payable | 1,280 | 326 | -687 |
Other accrued liabilities | -882 | -1,742 | 2,975 |
Net cash provided by operating activities | 66,538 | 25,733 | 106,932 |
Cash flows from investing activities: | ' | ' | ' |
Investments in property, plant and equipment | -17,161 | -15,212 | -20,232 |
Acquisition of intangible assets | -1,355 | -3,500 | -4,700 |
Acquisition of businesses, net of cash received | ' | ' | -7,433 |
Net cash used in investing activities | -18,516 | -18,712 | -32,365 |
Cash flows from financing activities: | ' | ' | ' |
Repurchase of common shares | ' | -13,600 | -32,290 |
Increase (decrease) in book overdraft | ' | ' | -2,374 |
Proceeds from issuance of common shares | 30 | 661 | 3,344 |
Dividends to shareholders | -62,234 | -9,538 | -1,459 |
Net cash used in financing activities | -62,204 | -22,477 | -32,779 |
Change in cash and cash equivalents | -14,182 | -15,456 | 41,788 |
Cash and cash equivalents at beginning of period | 117,174 | 132,630 | 90,842 |
Cash and cash equivalents at end of period | $102,992 | $117,174 | $132,630 |
The_Company_and_its_Operations
The Company and its Operations | 12 Months Ended |
Nov. 30, 2013 | |
The Company and its Operations | ' |
The Company and its Operations | ' |
1. The Company and its Operations | |
Operations. We are a leading provider of data storage technology with principal operations in the United Kingdom (“U.K.”), the United States of America (“U.S.”), Mexico and Malaysia. We report our business in two product groups: Enterprise Data Storage Solutions and HDD Capital equipment. Our Enterprise Data Storage Solutions products are primarily hard disk drive based data storage subsystems and solutions which we supply to Original Equipment Manufacturers or OEMs. Our HDD Capital Equipment products include capital process, inspection and test equipment which we supply to the hard disk drive industry. | |
Parent company. Xyratex Ltd, a company incorporated in Bermuda, is our parent company. In these notes Xyratex Ltd together with its subsidiaries is referred to as the “Company”. |
Basis_of_Presentation_and_Summ
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Nov. 30, 2013 | |
Basis of Presentation and Summary of Significant Accounting Policies | ' |
Basis of Presentation and Summary of Significant Accounting Policies | ' |
2. Basis of Presentation and Summary of Significant Accounting Policies | |
A summary of the significant accounting policies followed in the preparation of the accompanying consolidated financial statements, which conform to accounting principles generally accepted in the United States, is presented below. | |
Fiscal year. The Company’s fiscal year ends on November 30. | |
Principles of consolidation. The consolidated financial statements include the accounts of Xyratex Ltd and its wholly and majority-owned subsidiaries. Wholly and majority-owned subsidiaries are all entities over which the Company has the power to control the entity’s financial and operating policies. All significant intercompany accounts and transactions have been eliminated. | |
Use of estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Some of the more significant estimates include inventory valuation reserves, depreciation, amortization and impairment of long-lived assets including goodwill, deferred tax asset valuation allowance, warranty reserves and equity compensation expense. Actual results could differ from those estimates. | |
Foreign currency. The U.S. dollar is the functional currency of all operations as most revenues and expenses are incurred in U.S. dollars. As such, non-monetary assets and liabilities of operations located outside of the U.S. are remeasured into U.S. dollars using historical exchange rates. Monetary assets and liabilities are remeasured using the current rate at each balance sheet date. Revenue and expenses are generally translated at a monthly exchange rate, being the actual rate at the beginning of each month, except for those expenses related to balance sheet amounts that are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. Net foreign currency remeasurement losses of $4, $30 and $26 are included in selling general and administrative expenses, in the years ended November 30, 2013, 2012 and 2011, respectively. | |
Comprehensive income. In addition to net income, comprehensive income includes charges or credits to equity that are not the result of transactions with shareholders. For the Company, this includes unrealized gains and losses on forward foreign currency contracts and foreign currency options. The Company has included components of comprehensive income within the Consolidated Statements of Shareholders’ Equity and Comprehensive Income. | |
Revenue recognition. Revenue from product sales is recognized once delivery has occurred provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectibility is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. | |
Certain product sales, primarily for the Capital Equipment segment, include customer acceptance provisions. For products produced according to the Company’s published specifications and where no substantive customer acceptance provisions exist, revenue is recognized when title passes to the customer, generally on delivery. For products produced according to a particular customer’s specifications, revenue is recognized when the product has been tested and it has been demonstrated that it meets the customer’s specifications and title passes to the customer. For new products, new applications of existing products or for products with substantive customer acceptance provisions where performance cannot be fully assessed prior to meeting customer specifications at the customer site, revenue is recognized upon receipt of final customer acceptance. | |
In certain instances, the Company requires advanced deposits for a portion of the sales price in advance of shipment. These amounts are recorded as deferred revenue until the revenue recognition criteria above are met. | |
A number of the Company’s contracts for the supply of products have included payments upon the achievement of milestones for Non-Recurring Engineering (“NRE”) during the product development phase. For those contracts where we determine that the product development phase constitutes a separate earnings process revenue relating to the NRE payments is recognized upon the achievement of the applicable milestones. Other NRE payments and up-front fees received on execution of a contract are recognized over the estimated period of product shipments. Revenue related to NRE payments which was recognized on the achievement of substantive milestones amounted to approximately $7,105, $1,581 and $987 in the years ended November 30, 2013, 2012 and 2011 respectively. | |
Research and development. Amounts spent by the Company for research and development efforts are recorded as research and development expenses when incurred. | |
Warranty expense. The Company generally offers warranties between one and three years. Estimated future warranty obligations related to product sales are charged to operations in the period in which the related revenue is recognized. These estimates are based on historical warranty experience and other relevant information of which the Company is aware. During the years ended November 30, 2013, 2012 and 2011, warranty expense was $2,267, $2,996 and $3,780 respectively. | |
Shipping and handling costs. Shipping and handling costs charged to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. | |
Advertising. Advertising costs are expensed as incurred and amounted to $168, $52 and $31during the years ended November 30, 2013, 2012 and 2011, respectively. | |
Pensions and 401(k) plan. Retirement benefits are provided for U.K. and Malaysian employees by defined contribution pension plans whereby the assets of the plans are held separately from those of the Company and are independently administered. The Company also makes contributions to a 401(k) savings plan for U.S. employees. Contributions by the Company to defined contribution pension plans are charged to income as they become payable and amounted to $4,939, $4,962 and $5,088 during the years ended November 30, 2013, 2012 and 2011, respectively. | |
Equity compensation. The Company accounts for employee equity awards under the fair value method. Accordingly, the Company measures equity compensation at the grant date based on the fair value of the award. Equity compensation is based on the graded vesting of the share-based award, adjusted for expected forfeitures. | |
In the three years ended November 30, 2013 the Company’s share based awards were primarily in the form of Restricted Stock Units (“RSUs”). The valuation of these awards is based on the share price on the date of grant and requires the estimate of forfeiture levels and the achievement of performance conditions. | |
The Company uses the Black-Scholes option pricing model as the method of valuation for share option grants under the Company’s share purchase plans. | |
Income taxes. Provision for income taxes is based on income before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets also arise from net operating losses and are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce the deferred tax assets to the amount more likely than not to be realized. | |
We recognize the tax liability for uncertain income tax positions using the two step method set out in accounting guidance. Firstly we assess whether each income tax position is “more likely than not” to be sustained on audit, including resolution of related appeals or litigation process, if any. Secondly, for each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. | |
Net earnings per share. Basic net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding, during the period, excluding the dilutive effect of RSUs and share options. Diluted net earnings per share gives effect to all potentially dilutive common share equivalents outstanding during the period including RSUs and share options. | |
Cash and cash equivalents. Investments are classified as cash equivalents if their original maturity is three months or less. Cash equivalents are stated at cost, which approximates fair value. | |
Accounts receivable. Accounts receivable are stated at cost less the allowance for doubtful amounts. No interest has been charged on accounts receivable. | |
Inventory. Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. | |
Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in current income. Depreciation is provided using the straight-line method, principally over five to twenty five years for buildings and improvements and two to seven years for machinery and equipment. Depreciation of leasehold improvements is provided using the straight-line method over the life of the asset or the minimum term of the lease, whichever is shorter. Land is not depreciated. | |
Software Development Cost. Costs related to internally developed software and software purchased for internal use are capitalized. Capitalized software is included in property, plant and equipment and is depreciated between two and seven years when development is complete, and amounted to $697, $1,746 and $1,660 for the years ended November 30, 2013, 2012 and 2011 respectively. | |
Goodwill and purchased intangible assets. Purchased intangible assets with identifiable lives are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated economic lives of the respective assets. Under the provisions of the accounting guidance, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually or more frequently if impairment indicators arise. The Company will determine whether it is appropriate to to use qualitative factors to establish that it is more likely than not that the fair value of a reporting unit greater than its carrying amount. If qualitative assessment is not appropriate then impairment of goodwill is tested quantitatively using a two-step approach at the reporting unit level. The first step requires comparison of the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using the discounted cash flows approach which utilizes market data including the Company’s market value. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment. The second step involves determining the implied fair value of goodwill for each reporting unit. Any excess carrying amount of goodwill over the fair value determined in the second step will be recorded as a goodwill impairment loss. | |
Impairment of long-lived assets. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. | |
Treasury stock. The Company accounts for its repurchase of shares under the cost method of accounting for treasury stock, whereby the treasury stock is recorded at the cost of reacquisition and reported as a deduction from shareholders equity. Differences in the share price upon subsequent reissuance from the original issuance are recorded through paid in capital. Retirement of treasury shares results in elimination of the original par value, with any excess amounts recorded in retained earnings. | |
Derivative financial instruments. The Company enters into derivative financial instruments (forward foreign currency contracts and foreign currency options) in order to manage currency risks arising from its forecasted and firmly committed foreign currency denominated cash flows. The Company enters into these hedging relationships to limit foreign exchange rate risk for periods not exceeding 24 months. The Company does not utilize financial instruments for trading or speculative purposes. | |
The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheet at fair value. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions. This documentation includes linking all derivatives to specific forecasted cash flows. The Company also formally assesses both at the hedge’s inception and on an ongoing basis whether the derivatives used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. | |
Where hedge instruments continue to be highly effective changes in fair value of these instruments are deferred and recorded, net of the related tax effects, as a component of accumulated other comprehensive income (AOCI) until the hedged transactions affect earnings, at which time the deferred gains and losses on the forward foreign currency contracts are recognized in the income statement. When it is determined that a derivative is not, or has ceased to be, highly effective as a hedge, the Company discontinues hedge accounting prospectively and recognizes future changes in fair value in current earnings. | |
The Company has designated all its forward foreign currency contracts as qualifying for hedge accounting and as remaining highly effective throughout their existence. | |
Fair Value Measurements. The fair value of the Company’s financial instruments other than derivative financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate cost because of their short maturities. The fair value of the Company’s forward foreign exchange contracts and options is based on foreign currency spot rates and forward rates quoted by banks. | |
Concentration of credit risk. Financial instruments which potentially subject the Company to concentrations of credit risk include cash and cash equivalents, short-term investments and accounts receivable. The Company places its cash and cash equivalents and short-term investments with high-credit quality financial institutions. Cash deposits are placed with up to three institutions and such deposits generally exceed governmentally insured limits. Concentrations of credit risk, with respect to accounts receivable, exist to the extent of amounts presented in the financial statements. Two customers, each with balances greater than 10% of total accounts receivable, represented 58% and 60% of the total accounts receivable balance at November 30, 2013 and 2012, respectively. Generally, the Company does not require collateral or other security to support customer receivables. The Company performs periodic credit evaluations of its customers and maintains an allowance for potential credit losses based on historical experience and other information available to management. Losses to date have been within management’s expectations. | |
Revenues of the Enterprise Data Storage Solutions segment include revenue from four customers accounting for 25%, 20%, 12% and 11% of the Company’s revenues in the year ended November 30, 2013, three customers accounting for 38%, 19% and 15% of the Company’s revenues in the year ended November 30, 2012 and three customers accounting for 42%, 22% and 13% of the Company’s revenues in the year ended November 30, 2011. Revenues of the HDD Capital equipment segment include revenue from one customer accounting for 11% of the Company’s revenues in the year ended November 30, 2013. No other customer accounted for more than 10% of revenues. | |
Supplier risk. The Company integrates highly specialized components, such as disk drives, printed circuit board assemblies and power supplies into its products. These components are generally available from a single source or a limited number of suppliers. If any of these suppliers failed to meet the Company’s timing and quality requirements or unexpectedly discontinued its business relations with the Company, and no alternative supplier were found within a reasonable period of time, the Company’s ability to manufacture products at acceptable prices or to deliver products on time could be impaired, possibly resulting in loss of sales. | |
Recent accounting pronouncements | |
In July, 2013, the FASB issued ASU No. 2013-11, Income Taxes (ASC Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists . The amendments in this ASU provide explicit guidance that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with limited exceptions. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and do not require new recurring disclosures. The adoption of this new guidance will be assessed as part of Seagate, but would not have had a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606) , Revenue from Contracts with Customers. The ASU outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU would have been effective in the Company’s 2017 fiscal year. The impact, if any, of ASU 2014-09 will be assessed as part of Seagate Technology. |
Net_earnings_per_share
Net earnings per share | 12 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Net earnings per share | ' | |||||||
Net earnings per share | ' | |||||||
3. Net earnings per share | ||||||||
Basic net earnings per share is computed by dividing net income by the weighted average number of common shares. Diluted net earnings per share gives effect to all potentially dilutive common share equivalents outstanding during the period. | ||||||||
Number of common shares | ||||||||
Year Ended November 30, | ||||||||
2013 | 2012 | 2011 | ||||||
Total weighted average common shares—basic | 27,463 | 27,513 | 29,605 | |||||
Dilutive effect of share options | — | 16 | 60 | |||||
Dilutive effect of restricted stock units | 412 | 670 | 966 | |||||
Total weighted average common shares—diluted | 27,875 | 28,199 | 30,631 | |||||
Restructuring_costs
Restructuring costs | 12 Months Ended |
Nov. 30, 2013 | |
Restructuring costs. | ' |
Restructuring costs | ' |
4. Restructuring costs | |
During the year ended November 30, 2013 the Company carried out a cost reduction program in response to reduced customer demand. This included a compulsory headcount reduction program. The Company reduced its overall employee numbers by 216, or approximately 11%. The cost of employee terminations totaled $3,672. Of this amount $3,028 was paid in the year ended November 30, 2013 and the remaining amount will be paid in the year ending November 30, 2014. | |
During the year ended November 30, 2012 the Company carried out a cost reduction program in response to reduced customer demand. This included a compulsory headcount reduction program. The Company reduced its overall employee numbers by 264, or approximately 13%. The cost of employee terminations totaled $3,520. Of this amount $2,484 was paid in the year ended November 30, 2012 and the remaining amount was paid in the year ending November 30, 2013. In addition the Company recorded an expense of $600 for the cost of retiring assets associated with leased properties. This amount was paid in the year ending November 30, 2013. | |
During the year ended November 30, 2011 the Company carried out a cost reduction program in response to reduced customer demand for HDD Capital equipment products. This included a compulsory headcount reduction program. The Company reduced its overall employee numbers by 129, or approximately 6%. The cost of employee terminations totaled $2,750. Of this amount $1,439 was paid in the year ended November 30, 2011 and the remaining amount was paid in the year ended November 30, 2012. |
Acquisitions_and_intangible_as
Acquisitions and intangible assets | 12 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Acquisitions and intangible assets | ' | ||||||||||
Acquisitions and intangible assets | ' | ||||||||||
5. Acquisitions and intangible assets | |||||||||||
Intangible asset purchases in the year ended November 30, 2013 | |||||||||||
During the year ended November 30, 2013, the Company acquired software for a cash purchase price of $1,300. This amount has been allocated to intangible assets as software to be amortized over five years. | |||||||||||
Acquisition of business and intangible asset purchases in the year ended November 30, 2011 | |||||||||||
During the year ended November 30, 2011, the Company completed an acquisition for a cash purchase price totaling $6,130. The Company has estimated the fair values of the acquired assets and liabilities and the allocation of the purchase price to intangible assets. | |||||||||||
Pro forma operating results have not been presented for the acquisition because the acquisition was not material to the Company. Goodwill of $2,805 has been recognized on this transaction. $425 has been allocated to tangible assets and $2,900 to intangible assets as developed technology to be amortized over five years. The intangible assets are expected to be deductible for tax purposes. | |||||||||||
During the year ended November 30, 2011, the Company acquired software for a cash purchase price of $1,200. This amount has been allocated to intangible assets as software to be amortized over five years. The Company also extended and expanded its patent cross license agreement with IBM for consideration of $7,000. This amount has been allocated to intangible assets as patents to be amortized over six years. The Company made additional payments of $1,304 for acquisitions completed in previous years. This amount has been added to goodwill. Of this amount, $1,200 related to an acquisition completed in 2004. The intangible assets are expected to be deductible for tax purposes. | |||||||||||
Goodwill | |||||||||||
The changes in the carrying amount of goodwill for the years ended November 30, 2013, 2012 and 2011 are as follows: | |||||||||||
Enterprise | HDD | Total | |||||||||
Data Storage | Capital | ||||||||||
Solutions | Equipment | ||||||||||
Balance at November 30, 2010 | $ | 794 | $ | 2197 | $ | 2991 | |||||
Acquisition of business | $ | — | $ | 2,805 | $ | 2,805 | |||||
Additional contingent consideration | $ | — | $ | 1,304 | $ | 1,304 | |||||
Balance at November 30, 2011 | $ | 794 | $ | 6,306 | $ | 7,100 | |||||
Balance at November 30, 2012 | $ | 794 | $ | 6,306 | $ | 7,100 | |||||
Additional contingent consideration | $ | 56 | $ | — | $ | 56 | |||||
Balance at November 30, 2013 | $ | 850 | $ | 6,306 | $ | 7,156 | |||||
Identified intangible assets | |||||||||||
Identified intangible assets balances are summarized as follows: | |||||||||||
November 30, 2013 | |||||||||||
Gross | Accumulated | Net | |||||||||
Assets | Amortization | Assets | |||||||||
Existing technology | $ | 700 | $ | 324 | $ | 376 | |||||
Patents and core technology | 10,000 | 6,103 | 3,897 | ||||||||
In Process Research and Development | 2,100 | 840 | 1,260 | ||||||||
Software | 2,500 | 915 | 1,585 | ||||||||
Total | $ | 15,300 | $ | 8,182 | $ | 7,118 | |||||
November 30, 2012 | |||||||||||
Gross | Accumulated | Net | |||||||||
Assets | Amortization | Assets | |||||||||
Existing technology | $ | 700 | $ | 184 | $ | 516 | |||||
Patents and core technology | 10,000 | 5,041 | 4,959 | ||||||||
In Process Research and Development | 2,100 | 420 | 1,680 | ||||||||
Software | 1,200 | 480 | 720 | ||||||||
Total | $ | 14,000 | $ | 6,125 | $ | 7,875 | |||||
Fully amortized intangible assets with a recorded cost of $9,900 were removed from the intangible assets register during the year ended November 30, 2012. | |||||||||||
The Company expects to record amortization of these intangible assets in its statements of operations as follows: | |||||||||||
Amortization | |||||||||||
2014 | $ | 2,227 | |||||||||
2015 | 2,184 | ||||||||||
2016 | 1,847 | ||||||||||
2017 | $ | 357 | |||||||||
Impairment of goodwill and intangible assets | |||||||||||
The Company carried out its annual goodwill test at November 30, 2013. The Company determined, based on carrying out the first step of the two step impairment test set out in accounting guidance, that the fair value of its HDD Capital Equipment and Enterprise Data Storage Solutions reporting units were greater than their carrying values and therefore no impairment of goodwill was recorded. The first step of the impairment test required comparison of the carrying value of reporting units, including goodwill, with the fair market value of the reporting unit. This test is carried out at the reporting unit level which the Company determined to be consistent with its two business segments above. The fair values of the reporting unit were determined through the discounted cash flow approach. The discounted cash flows were based on assumptions consistent with the strategic plan used to manage the underlying business. The Company made adjustments to the cash flows and discount rate to reflect the fair value of the reporting units implied by the Company’s share price after allowing for a control premium. The valuation, incorporating these adjustments, was based on a seven year cash flow model with a long term growth rate of 1%, a discount rate of 16% and a terminal value based on comparable company multiples. The calculated fair value of the reporting unit showed significant headroom over the carrying value. | |||||||||||
As part of its cost reduction exercise in 2011, carried out in response to the reduction in demand for HDD Capital Equipment products, the Company decided to cease expenditure on development of certain products, including the developed technology purchased as part of an acquisition in December 2010. This was due to the Company’s assessment that there was a reduced likelihood of achieving significant revenues from the related product. The Company therefore determined that the carrying value of this developed technology was less than its fair value and recorded an impairment of $2,200 at November 30, 2011. |
Inventories
Inventories | 12 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Inventories | ' | |||||||
Inventories | ' | |||||||
6. Inventories | ||||||||
November 30, | ||||||||
2013 | 2012 | |||||||
Finished goods | $ | 36,755 | $ | 30,456 | ||||
Work in progress | 28,766 | 33,202 | ||||||
Raw materials | 66,706 | 107,947 | ||||||
$ | 132,227 | $ | 171,605 |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Property, Plant and Equipment, Net. | ' | |||||||
Property, Plant and Equipment, Net | ' | |||||||
7. Property, Plant and Equipment, Net | ||||||||
November 30, | ||||||||
2013 | 2012 | |||||||
Land | $ | 1,421 | $ | 1,421 | ||||
Buildings and leasehold improvements | 17,622 | 16,250 | ||||||
Machinery and equipment | 138,822 | 139,342 | ||||||
157,865 | 157,013 | |||||||
Accumulated depreciation | (116,270 | ) | (116,819 | ) | ||||
$ | 41,595 | $ | 40,194 | |||||
Depreciation expense during the years ended November 30, 2013, 2012 and 2011 was $15,760, $17,936 and $19,405 respectively. For the years ended November 30, 2013, 2012 and 2011 the Company disposed of fully-depreciated machinery and equipment with a recorded cost of $16,309, $4,158 and $5,927 respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
8. Income Taxes | |||||||||||||
The provision (benefit) from income taxes is comprised as follows: | |||||||||||||
Year Ended November 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.K. | Current | $ | — | $ | — | $ | — | ||||||
U.S. | Current | 2,608 | 1,941 | 1,604 | |||||||||
Other jurisdictions | Current | 315 | 178 | 40 | |||||||||
Deferred | 16,330 | (2,517 | ) | 1,432 | |||||||||
Total | $ | 19,253 | $ | (398 | ) | $ | 3,076 | ||||||
The significant components of deferred tax assets and liabilities included in the Consolidated Balance Sheets are: | |||||||||||||
November 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
U.K. net operating loss carryforwards | $ | 14,262 | $ | 8,929 | |||||||||
U.S. net operating loss carryforwards | 4,235 | 5,263 | |||||||||||
Other net operating loss carryforwards | 2,256 | 2,131 | |||||||||||
Timing difference on equity compensation | 2,274 | 4,100 | |||||||||||
Property, plant and equipment | 4,375 | 4,619 | |||||||||||
Timing differences on inventory | 2,142 | 2,228 | |||||||||||
Forward foreign exchange contracts | — | — | |||||||||||
Other deferred tax assets | 181 | 102 | |||||||||||
Less: valuation allowance | (21,056 | ) | (2,131 | ) | |||||||||
Total deferred tax assets | 8,669 | 25,241 | |||||||||||
Deferred tax liabilities | |||||||||||||
Forward foreign exchange contracts | (424 | ) | (265 | ) | |||||||||
Intangible assets | (900 | ) | (819 | ) | |||||||||
Net deferred tax assets | $ | 7,345 | $ | 24,157 | |||||||||
Current | $ | 762 | $ | 228 | |||||||||
Non-current | $ | 6,583 | $ | 23,929 | |||||||||
At November 30, 2013 the Company has recorded a valuation allowance of $18,800 against U.K. deferred tax assets with an amount of $19,200 being recorded as an income tax provision offset by $400 recorded in Accumulated Other Comprehensive Income. This valuation allowance relates to U.K. tax losses, timing differences related to property, plant and equipment and other timing differences the utilization of which is no longer probable as a result of the legal and tax structure of the overall group, the recording of cumulative losses in the Company’s U.K. subsidiary over the last three years, forecast performance of the subsidiary in the future, together with certain tax concessions in the U.K. across this time frame, particularly related to R&D tax credits. | |||||||||||||
In the United Kingdom, tax operating loss carryforwards have no expiration date. The utilization of tax operating loss carryforwards is, however, restricted to the taxable income of the subsidiary generating the losses. A change in ownership of the Company can also prevent the Company utilizing the carryforwards. As part of the acquisition of nStor Technologies in 2005 the Company acquired operating loss carryforwards of nStor Technologies Inc. in the United States. These are subject to an annual limitation, could be subject to further more restrictive annual limitations if certain substantial changes in the ownership of the Company occur and will expire on various dates beginning in 2018, if not utilized. The Company has recorded a deferred tax asset relating to these loss carryforwards of $4,235 at November 30, 2013. | |||||||||||||
Deferred tax liabilities arising from temporary differences related to investments in foreign subsidiaries have not been recognized because the Company consider overseas earnings to have been permanently reinvested in the relevant subsidiary. Therefore the repatriation of these earnings has been postponed indefinitely. Determination of the amount of the unrecognized deferred tax liability is not practical. | |||||||||||||
At November 30, 2013 the Company recorded other net operating loss carryforwards in respect of its activities in Singapore and Japan of $2,256, together with a full valuation allowance against these deferred tax assets. These loss carryforwards can be utilized against future trading profits of the activities being carried on in these two locations, subject to the availability of such profits. At November 30, 2013 the Company’s forecast for its activities in these locations does not make it more likely than not that these deferred tax assets will be utilized. | |||||||||||||
Included in deferred tax assets at November 30, 2013 are amounts totaling $2,131 related to the Company’s Malaysia operations. As a result of certain employment and capital investment actions undertaken by the Company, income from activities in Malaysia was substantially exempt from income taxes until May 2012. This beneficial tax status applied separately to the Company’s two operating segments. The exemption relating to Enterprise Data Storage Solutions products ends in 2017 whereas the exemption relating to HDD Capital Equipment products ended in May 2012. The Company is seeking to obtain future incentives to extend the beneficial arrangements for both product groups. If the incentive is renewed the recording of this asset will be reversed and a tax expense of this amount recorded. While the incentive has not been renewed the Company is recording a tax expense of approximately 25% on income of the Malaysia operations related to HDD Capital Equipment products. | |||||||||||||
The Company records equity compensation expense using the fair value method, beginning on the grant date. The tax deduction for equity compensation only arises when the related share award is vested, which occurs later than the grant date. This timing difference has resulted in the recording of a net deferred tax asset of $2,274 and $4,100 before valuation allowances at November 30, 2013 and November 30, 2012, respectively. The amount of any benefit realized from this asset is dependent on future share price movements over the next four fiscal years as the awards vest. The Company anticipates recording any variation to the value of this asset as an adjustment to Additional Paid in Capital (“APIC”). For the years ended November 30, 2013 and November 30, 2012 the Company recorded charges to APIC of $713 and $146 respectively. The Company has elected to adopt the short-form method to calculate its pool of windfall tax benefits, as of December 1, 2005. Authoritative accounting guidance prohibits the recognition of net operating losses generated by windfall tax benefits. The Company has elected to adopt an accounting policy where windfall tax benefits are recognized in APIC only if an incremental benefit is provided after considering all other tax attributes presently available to the Company. The tax benefit not recognized in APIC totals $1,521 at November 30, 2013 and $1,750 at November 30, 2012. | |||||||||||||
The applicable statutory rate of tax in Bermuda was zero for each of the years ended November 30, 2013, 2012 and 2011. For purposes of reconciliation between the provision for (benefit from) income taxes at the statutory rate and the effective tax rate, a notional U.K. rate is applied as follows: | |||||||||||||
Year Ended | |||||||||||||
November 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision (benefit) for income taxes at corporation tax rate | 23 | % | 24 | % | 26 | % | |||||||
Adjustment in respect of prior years | 17.6 | (8.4 | ) | 1.8 | |||||||||
Other nondeductible expenses | 3.1 | 0.1 | (0.3 | ) | |||||||||
Research and development tax credits | 94.7 | (26.2 | ) | (13.6 | ) | ||||||||
Effect of change in U.K. tax rate | (144.6 | ) | 6.8 | 3.3 | |||||||||
Tax differentials on foreign income | (9.5 | ) | (3.9 | ) | (2.2 | ) | |||||||
Other valuation allowances | (975.8 | ) | 1.4 | 2.2 | |||||||||
Movement in unrecognized tax benefits | 8.2 | 3.9 | (7.1 | ) | |||||||||
Provision (benefit) for income taxes | (983.3 | )% | (2.3 | )% | 10.1 | % | |||||||
The enacted U.K. corporation tax rate reduced 27% to 26% in the year ended November 30, 2011, to 24% in the year ended November 30, 2012 and to 23% in the year ended 30 November 2013. Furthermore, the rate will be reduced to 21% on April 1, 2014 and 20% on April 1, 2015. The U.K. deferred tax asset is not expected to unwind before April 1, 2015 and therefore the U.K. deferred tax asset has been calculated at the rate of 20%, before valuation allowances. | |||||||||||||
The components of income before income taxes are: | |||||||||||||
Year Ended November 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.K. | $ | (18,329 | ) | $ | 7,536 | $ | 17,937 | ||||||
U.S. | 8,090 | 6,000 | 8,726 | ||||||||||
Malaysia | 7,497 | 5,376 | 8,702 | ||||||||||
Other | 784 | (1,650 | ) | (3,992 | ) | ||||||||
Total | $ | (1,958 | ) | $ | 17,262 | $ | 31,373 | ||||||
The income tax benefit attributable to the beneficial tax status in Malaysia was estimated to be $1,774 ($0.06 per share, basic and diluted), $2,002 ($0.07 per share, diluted) and $2,176 ($0.07 per share, diluted) during the years ended November 30, 2013, 2012 and 2011, respectively. | |||||||||||||
The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: | |||||||||||||
Year Ended | |||||||||||||
November 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance of unrecognized tax benefits at December 1 | $ | 4,301 | $ | 3,859 | |||||||||
Gross increase for tax positions taken during a prior period | — | 29 | |||||||||||
Gross decrease for tax positions taken during a prior period | (106 | ) | (60 | ) | |||||||||
Gross increase for tax positions taken during the current period | 872 | 810 | |||||||||||
Settlements | (247 | ) | (147 | ) | |||||||||
Reductions as a result of a lapse of the applicable statute of limitations | (1,080 | ) | (190 | ) | |||||||||
Balance of unrecognized tax benefits at November 30 | $ | 3,740 | $ | 4,301 | |||||||||
At November 30, 2013, $2,801 of the unrecognized tax benefit would affect the effective tax rate, if recognized and $939 would not affect the effective tax rate, if recognized. | |||||||||||||
At November 30, 2013 and 2012 the Company had accrued in current tax approximately $200 and $150 respectively for the payment of interest and penalties relating to unrecognized tax benefits. | |||||||||||||
The Company’s subsidiaries are subject to income tax in the U.K. and the U.S. Federal jurisdiction as well as other state and foreign jurisdictions. During the period ended November 30, 2013 a tax authority enquiry into the Company’s U.K. income tax return for fiscal year 2011 was opened and is ongoing. During the period ended November 30, 2012 a tax authority enquiry into the Company’s U.K. income tax return for fiscal year 2010 was opened and is ongoing. During the period ended November 30, 2011 a tax authority enquiry into the Company’s U.K. income tax return for fiscal year 2007 was concluded without adjustment. The income tax returns for fiscal years 2012 and 2013 remain open to examination. The Company does not expect the total gross amounts of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company’s U.S. Federal and state income tax returns for fiscal years 2009 through fiscal year 2013 remain open to examination. In addition, the Company files tax returns in multiple other foreign taxing jurisdictions and generally is not subject to tax examination in these jurisdictions for fiscal years prior to 2007. |
Equity_compensation_plans
Equity compensation plans | 12 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Equity compensation plans | ' | |||||||||||||
Equity compensation plans | ' | |||||||||||||
9. Equity compensation plans | ||||||||||||||
During the three years ended November 30, 2013 the Company’s share based awards have primarily consisted of Restricted Stock Units (“RSUs”). The Company also granted share options in the year ended November 30, 2013. In addition, the Company operates an Employee Share Purchase Plan (“ESPP”) for U.S. employees and a Sharesave option plan for U.K. employees. | ||||||||||||||
As of November 30, 2013, there were 3,855 shares authorized for future grants under all share plans. | ||||||||||||||
Equity Compensation | ||||||||||||||
The following table summarizes equity compensation expense related to share-based awards: | ||||||||||||||
Year ended November 30, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Equity compensation: | ||||||||||||||
Cost of revenues | $ | 224 | $ | 965 | $ | 824 | ||||||||
Research and development | 738 | 2,300 | 2,534 | |||||||||||
Selling, general and administrative | 2,196 | 3,337 | 3,769 | |||||||||||
Total equity compensation | 3,158 | 6,602 | 7,127 | |||||||||||
Related income tax benefit | $ | 632 | $ | 1,518 | $ | 1,782 | ||||||||
Restricted Stock Units | ||||||||||||||
RSUs require that shares be awarded over four years from the date of grant, subject to continued service. The holders of RSUs are not entitled to receive dividends or dividend equivalents. The vesting of certain of these units is also subject to the achievement of certain performance conditions in the year of grant. The RSUs vest annually on February 1. An employee ceases to be entitled to the RSUs upon termination of their employment. Equity compensation expense related to RSUs of $2,543, $6,186 and $6,837 has been recorded in the years ended November 30, 2013, 2012 and 2011 respectively. The calculation of the number of units expected to vest is based on management’s assessment of achievement of the related performance conditions. Restricted stock units granted, exercised, canceled and expired are summarized as follows: | ||||||||||||||
RSU | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Grant Date | Remaining | Value | ||||||||||||
Fair Value | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Non-vested restricted stock units at November 30, 2010 | 2,073 | $ | 11.32 | 1.7 | ||||||||||
Granted | 980 | 13.04 | ||||||||||||
Vested | (659 | ) | 11.74 | |||||||||||
Cancelled/forfeited | (446 | ) | 11.36 | |||||||||||
Non-vested restricted stock units at November 30, 2011 | 1,948 | $ | 12.09 | 1.6 | ||||||||||
Granted | 1,118 | 13.64 | ||||||||||||
Vested | (544 | ) | 11.27 | |||||||||||
Cancelled/forfeited | (686 | ) | 13.31 | |||||||||||
Non-vested restricted stock units at November 30, 2012 | 1,836 | $ | 14.03 | 1.6 | ||||||||||
Granted | 154 | 10.75 | ||||||||||||
Vested | (533 | ) | 11.74 | |||||||||||
Cancelled/forfeited | (799 | ) | 15.99 | |||||||||||
Non-vested restricted stock units at November 30, 2013 | 658 | $ | 12.7 | 0.7 | ||||||||||
Non-vested restricted stock units expected to vest at November 30, 2013 | 623 | $ | 12.69 | 0.7 | $ | 6,432 | ||||||||
The Sharesave Plan | ||||||||||||||
Options granted under this plan have certain tax advantages for employees. Options can only be exercised at the end of a three year period based on the amount paid by an employee into an independent savings account. The options have been granted with an exercise price at a discount of 15% to the market price and the maximum monthly contribution to this plan, stated in U.K. pounds, is £250 determined at the commencement of the three year period. | ||||||||||||||
Sharesave Plan activity was as follows: | ||||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at November 30, 2010 | 76 | $ | 15.66 | 2.1 | ||||||||||
Granted | 190 | 8.25 | ||||||||||||
Canceled/forfeited | (61 | ) | 15.57 | |||||||||||
Outstanding at November 30, 2011 | 205 | $ | 8.82 | 2.9 | ||||||||||
Granted | 28 | 13.1 | ||||||||||||
Canceled/forfeited | (62 | ) | 9.61 | |||||||||||
Outstanding at November 30, 2012 | 171 | $ | 9.23 | 2 | ||||||||||
Granted | 28 | 9.88 | ||||||||||||
Exercised | (5 | ) | 8.25 | |||||||||||
Canceled/forfeited | (11 | ) | 16.01 | |||||||||||
Outstanding at November 30, 2013 | 183 | $ | 8.95 | 1.4 | 298 | |||||||||
There were no options exercisable at November 30, 2013, 2012 and 2011. | ||||||||||||||
Share Option Plans | ||||||||||||||
The Company has four plans, under which employees were granted options to purchase Xyratex Ltd common shares prior to November 30, 2005. Options granted under each plan vest in line with certain criteria, including at the earlier of a takeover or liquidation of the Company, or ratably, over a period of up to four years from the grant date. Options granted under these plans expire under certain criteria including at the earlier of ten years from the date of grant, following a change of control, amalgamation or liquidation of the Company or immediately upon termination of employment with the Company. | ||||||||||||||
Options exercised and canceled or forfeited under these share option plans are summarized as follows: | ||||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at November 30, 2010 | 832 | $ | 12.42 | |||||||||||
Exercised | (301 | ) | 11.6 | |||||||||||
Canceled/forfeited | (5 | ) | 13.6 | |||||||||||
Outstanding at November 30, 2011 | 526 | $ | 12.81 | |||||||||||
Exercised | (71 | ) | 4.24 | |||||||||||
Canceled/forfeited | (11 | ) | 14.78 | |||||||||||
Outstanding at November 30, 2012 | 444 | $ | 14.14 | |||||||||||
Granted | 250 | 10.84 | ||||||||||||
Canceled/forfeited | (174 | ) | 10.16 | |||||||||||
Outstanding at November 30, 2013 | 520 | $ | 12.83 | 4.3 | $ | 2 | ||||||||
Exercisable at November 30, 2011 | 526 | $ | 12.81 | |||||||||||
Exercisable at November 30, 2012 | 444 | $ | 14.14 | |||||||||||
Exercisable at November 30, 2013 | 320 | $ | 14.06 | 0.8 | $ | 2 | ||||||||
The aggregate intrinsic value of options outstanding at November 30, 2013 is calculated as the difference between the market price of the underlying common share and the exercise price of the options. All of the outstanding options at November 30, 2013, had exercise prices that were higher than the $9.37 closing market price of the Company’s common shares on that date. The total intrinsic value of options exercised during the years ended November 30, 2013, 2012 and 2011 was $0, $693 and $731, respectively, determined as of the date of exercise. The total fair value of options that vested during all three years was $0. The total fair value of options that were forfeited during the years ended November 30, 2013, 2012 and 2011 was $1,102, $88 and $22, respectively. | ||||||||||||||
The following table summarizes information about share options outstanding at November 30, 2013: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Exercise Prices | Number | Weighted-Average | Weighted-Average | Number | Weighted-Average | |||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | ||||||||||
Contractual Life | ||||||||||||||
(in years) | ||||||||||||||
$9.65 - $10.84 | 203 | 9.3 | $ | 10.82 | 3 | $ | 9.65 | |||||||
$13.51 - $14.47 | 317 | 1.1 | $ | 14.11 | 317 | $ | 14.11 | |||||||
520 | 4.3 | $ | 12.83 | 320 | $ | 14.06 | ||||||||
ESPP | ||||||||||||||
The Company also operates an employee stock purchase plan (“ESPP”), under which any eligible U.S. employee of the Company receives the rights to purchase the Company’s shares. A purchase right entitles a participant to purchase at the end of each year the number of common shares determined by dividing the participant’s accumulated payroll deductions in his or her plan account by the purchase price for that offering period. Generally, the per share purchase price is 85% of the lower of the fair market value of one common share on the first trading day of the offering period or the fair market value of such a share on the last trading day of the offering period. The payroll deductions may not exceed two hundred dollars per pay period per employee, and an employee may not purchase more than $25 of fair value of shares in any annual period. The ESPP terminates in December 2021. | ||||||||||||||
ESPP activity was as follows: | ||||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at November 30, 2010 | 26 | $ | 13.8 | 0.4 | ||||||||||
Granted | 46 | 8.54 | ||||||||||||
Canceled/forfeited | (26 | ) | 13.8 | |||||||||||
Outstanding at November 30, 2011 | 46 | $ | 8.54 | 0.4 | ||||||||||
Granted | 51 | 12.36 | ||||||||||||
Exercised | (39 | ) | 8.54 | |||||||||||
Canceled/forfeited | (7 | ) | 8.54 | |||||||||||
Outstanding at November 30, 2012 | 51 | $ | 12.36 | 0.4 | ||||||||||
Granted | 26 | 8.78 | ||||||||||||
Canceled/forfeited | (51 | ) | 12.36 | |||||||||||
Outstanding at November 30, 2013 | 26 | $ | 8.78 | 0.4 | $ | 40 | ||||||||
Determining Fair Value of Share Options | ||||||||||||||
Valuation and Amortization Method. The Company estimated the fair value of share options using the Black-Scholes option valuation model and amortized the fair value using graded vesting over the vesting periods. | ||||||||||||||
Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company determined the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and pre-vesting and post-vesting forfeitures. | ||||||||||||||
Expected Volatility. The volatility factor the Company used in the Black-Scholes option valuation model is based on the Company’s historical share prices. | ||||||||||||||
Risk-Free Interest Rate. The Company based the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. | ||||||||||||||
Expected Dividend Yield. Prior to August 2011, the Company had never paid any cash dividends on its common shares and did not anticipate paying any cash dividends. Consequently, the Company used an assumption of a dividend yield of zero in the Black-Scholes option valuation model. For future grants a dividend yield of 3.00% would be used, based on the levels of dividends paid. | ||||||||||||||
Expected Forfeitures. The Company uses historical data to estimate pre-vesting option forfeitures. The Company records share-based compensation only for those awards that are expected to vest. | ||||||||||||||
The fair value of the options was estimated at grant date using the following weighted average assumptions: | ||||||||||||||
Year ended November 30, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Risk-free interest rate | 0.13 | % | 0.16 | % | 1 | % | ||||||||
Dividend yield | 3 | % | 2.3 | % | 0 | % | ||||||||
Volatility | 62 | % | 42 | % | 66 | % | ||||||||
Expected option life | 4.0 years | 1.5 years | 1.5 years | |||||||||||
At November 30, 2013, the Company had 1,352 non-vested share based awards that had a weighted average grant date fair value of $12.16. As of November 30, 2013, the Company had $2,460 of total unrecognized compensation cost related to non-vested share-based awards granted under all equity compensation plans. Total unrecognized compensation cost will be adjusted for any future changes in estimated forfeitures. The Company expects to recognize this cost over a weighted average period of 2.8 years. |
Equity_and_dividends
Equity and dividends | 12 Months Ended |
Nov. 30, 2013 | |
Equity and dividends | ' |
Equity and dividends | ' |
10. Equity and dividends | |
The Company’s authorized share capital consists of three classes; 70,000 common shares; 1,000 preference shares; and 1,200 deferred shares. All shares have a par value of $0.01. As of November 30, 2013, there were 27,563 common shares outstanding. No other class of shares has been issued. | |
Common shares—Holders of common shares are entitled to one vote per share on all matters upon which the common shares are entitled to vote, including the election of directors. The holders of common shares are entitled to receive dividends when and as declared by the Company’s board of directors. Upon any liquidation, dissolution, or winding up of the Company, surplus assets will be distributed ratably to holders of common shares. There are no restrictions on these shares. | |
Preference shares—The Board is authorized to provide for the issuance of the preference shares in one or more series, and to establish from time to time the number of shares to be included in each such series, and to fix the designation, powers, preferences and rights of the shares of each such series and the qualifications, limitations or restrictions thereof (and, for the avoidance of doubt, such matters and the issuance of such preference shares shall not be deemed to vary the rights attached to the common shares). As of November 30, 2013, there were no preference shares outstanding. | |
Deferred shares—While ever and whenever any shares of the Company of any other class are in issue: (a) Holders of deferred shares shall have no right to receive notice of general meetings nor shall deferred shares entitle the holder to any votes at general meetings of the Company; (b) deferred shares shall have no right to participate in any dividend or distribution and, on a return of capital shall entitle the holder to no rights other than to repayment of the par value thereof and then only once $1,000,000 per share has been paid to holders of all other classes of shares of the Company then in issue. As of November 30, 2013, there were no deferred shares outstanding. | |
Repurchases of Common Shares | |
The Company announced in March 2011 that it would recommence the share repurchase plan initially approved during the first quarter of 2008, and increased the maximum value of shares that may be repurchased. According to the revised terms of the plan, the Company may repurchase up to an additional $50,000 of the outstanding shares following April 30, 2011. Under the plan the Company repurchased 3,602 shares at an aggregate cost of $32,290 in the year ended November 30, 2011 and 1,199 shares at an aggregate cost of $13,600 in the year ended November 30, 2012. No shares were repurchased in the year ended November 30, 2013. | |
Dividends | |
In the third fiscal quarter of the year ended November 30, 2011 the Company commenced paying dividends to holders of its common shares. The Company declared two dividends totaling 10.5 cents per share with a total value of $2,980. Of this amount $1,521 was paid in the year ended November 30, 2012. | |
In the year ended November 30, 2012 the Company declared four dividends totaling 29 cents per share with a total value of $8,017. | |
In the year ended November 30, 2013 the Company declared four dividends totaling $2.30 per share with a total value of $62,234. These included a one-time, special cash dividend of $2.00 per common share. |
Employee_benefit_trust
Employee benefit trust | 12 Months Ended |
Nov. 30, 2013 | |
Employee benefit trust | ' |
Employee benefit trust | ' |
11. Employee benefit trust | |
The Company operates an employee benefit trust. The trust holds 95 common shares in Xyratex Ltd, included in unissued shares at November 30, 2013. Shares held by this trust will be used to satisfy the exercise by employees of certain share options of the Company. |
Financial_Instruments
Financial Instruments | 12 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Financial Instruments | ' | |||||||||||||
12. Financial Instruments | ||||||||||||||
The Company’s principal financial instruments, other than derivatives, comprise cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. The Company also enters into derivatives in order to manage currency risks arising from the Company’s operations. The Company does not hold financial instruments for trading purposes. | ||||||||||||||
Forward foreign exchange contracts and options | ||||||||||||||
Over 90% of the Company’s revenues are denominated in the U.S. dollar, whereas certain expenses are incurred in U.K. pounds and Malaysian Ringgits. Therefore, the Company is exposed to foreign currency exchange rate risk which creates volatility in income and cash flows from period to period. In part, the Company manages this exposure through entering into forward foreign exchange contracts and options to reduce the volatility of income and cash flows associated with this risk. The Company designated all of its forward foreign currency contracts as qualifying for cash flow hedge accounting. Changes in the fair value of these instruments are deferred and recorded as a component of accumulated other comprehensive income (AOCI) until the hedged transactions affect earnings, at which time the deferred gains and losses on the forward foreign currency contracts are recognized in the income statement. The Company enters into these foreign exchange contracts to hedge a portion of its forecasted foreign currency denominated expense in the normal course of business and accordingly, they are not speculative in nature. The counterparty to the foreign currency contracts is an international bank. Such contracts are for two years or less at inception. | ||||||||||||||
The following table summarizes the foreign currency derivative contract activity: | ||||||||||||||
Number | ||||||||||||||
of contracts | ||||||||||||||
At November 30, 2011 | 31 | |||||||||||||
Matured during the period | (31 | ) | ||||||||||||
New contracts entered into during the period | 34 | |||||||||||||
At November 30, 2012 | 34 | |||||||||||||
Matured during the period | (34 | ) | ||||||||||||
New contracts entered into during the period | 35 | |||||||||||||
At November 30, 2013 | 35 | |||||||||||||
The fair value of derivative instruments and their location in the consolidated balance sheet as of November 30, 2013 and November 30, 2012 were as follows: | ||||||||||||||
Derivatives designated as hedging instruments: | Balance Sheet Location | November 30, | November 30, | |||||||||||
2013 | 2012 | |||||||||||||
Asset derivatives | Other current assets | $ | 2,288 | $ | 1,313 | |||||||||
The effect of derivative instruments designated as cash flow hedges on the consolidated statement of operations for the year ended November 30, 2012 was as follows: | ||||||||||||||
Derivatives in Cash Flow Hedging Relationships – Foreign exchange contracts | Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized(1) | Reclassified(2) | |||||||||||||
Year ended November 30 2013 | $ | 1,699 | $ | 1,313 | ||||||||||
Year ended November 30 2012 | $ | 1,313 | $ | (1,539 | ) | |||||||||
Year ended November 30 2011 | $ | (1,539 | ) | $ | 697 | |||||||||
(1) Amount recognized in AOCI (effective portion) net of tax of $0, $288 and $(632) respectively. | ||||||||||||||
(2) Amount of gain (loss) reclassified from AOCI into income (effective portion) located in expense. | ||||||||||||||
Unrealized gains and losses reported in AOCI will be reclassified to earnings as the forecast expenditures for which the foreign exchange contracts have been entered into arise. It is estimated that all of the unrealized amounts in respect of foreign exchange contracts are expected to be reclassified to earnings during the next twelve months. | ||||||||||||||
The following table shows derivatives existing as of November 30, 2013 and November 30, 2012: | ||||||||||||||
November 30, | ||||||||||||||
Derivatives between U.K. pound and U.S. dollar | 2013 | 2012 | ||||||||||||
Nominal value of forward exchange contracts and options | $ | 49,583 | $ | 50,232 | ||||||||||
Fair value of contracts—asset (liability) | $ | 2,641 | $ | 932 | ||||||||||
Average rate of contract | $ | 1.56 | $ | 1.57 | ||||||||||
Period end rate | $ | 1.63 | $ | 1.6 | ||||||||||
November 30, | ||||||||||||||
Derivatives between Malaysian ringgit and U.S. dollar | 2013 | 2012 | ||||||||||||
Nominal value of forward exchange contracts and options | $ | 18,000 | $ | 18,000 | ||||||||||
Fair value of contracts—asset (liability) | $ | (352 | ) | $ | 381 | |||||||||
Average rate of contract | $ | 0.31 | $ | 0.32 | ||||||||||
Period end rate | $ | 0.31 | $ | 0.33 | ||||||||||
Fair values | ||||||||||||||
The carrying values of all financial instruments, including forward foreign exchange contracts, approximate their fair values. Assets and liabilities required to be carried at fair value will be classified and disclosed in one of the following three categories: | ||||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | ||||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | ||||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | ||||||||||||||
The following table presents the Company’s assets and liabilities measured at fair value on a recurring basis as of November 30, 2013 and at November 30, 2012 aggregated by the level in the fair-value hierarchy within which those measurements fall: | ||||||||||||||
November 30, 2013 | November 30, 2012 | |||||||||||||
Total | Significant | Total | Significant | |||||||||||
Other | Other | |||||||||||||
Observable | Observable | |||||||||||||
Inputs | Inputs | |||||||||||||
(Level 2) | (Level 2) | |||||||||||||
Foreign currency forward contracts—asset position | $ | 2,288 | $ | 2,288 | $ | 1,313 | $ | 1,313 | ||||||
The Company’s forward foreign exchange contracts and options are measured on a recurring basis based on foreign currency spot rates and forward rates quoted by banks (level 2 criteria) and are marked-to-market each period with gains and losses on these contracts recorded in Other Comprehensive Income with the offsetting amount for unsettled positions being included in either other current assets or other accrued liabilities in the balance sheet. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Nov. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
Commitments and Contingencies | ' | ||||
13. Commitments and Contingencies | |||||
Operating Lease Commitments. Future minimum lease payments under non-cancelable operating lease agreements as of November 30, 2013 are as follows: | |||||
Year Ending November 30, | |||||
2014 | 5,465 | ||||
2015 | 2,777 | ||||
2016 | 1,782 | ||||
2017 | 676 | ||||
2018 | — | ||||
Total minimum payments required | $ | 10,700 | |||
Certain leases require the Company to pay property taxes, insurance and routine maintenance. Rent expense was $6,869, $8,518 and $8,221 for the years ended November 30, 2013, 2012 and 2011, respectively. | |||||
Customer Indemnity. As an element of standard customer contracts, the Company includes certain clauses that indemnify the customer against liability and damages, including legal defense costs, which might arise from claims of patent, copyright, trademark or trade secret infringement by the products manufactured by the Company. | |||||
Contingencies. The Company is involved in lawsuits, claims, investigations and proceedings, including patent and commercial matters that arise in the ordinary course of business. There are no such matters pending that the Company expects to be material in relation to its business, consolidated financial position, results of operations or cash flows. | |||||
Product warranty. The following table provides the changes in the product warranty accrual for the year ended November 30, 2013: | |||||
Amount of | |||||
liability | |||||
Balance at November 30, 2010: | $ | 5,585 | |||
Accruals for warranties issued during the year | 3,780 | ||||
Settlements made during the year | (4,437 | ) | |||
Balance at November 30, 2011: | $ | 4,928 | |||
Accruals for warranties issued during the year | 2,996 | ||||
Settlements made during the year | (3,918 | ) | |||
Balance at November 30, 2012: | $ | 4,006 | |||
Accruals for warranties issued during the year | 2,267 | ||||
Settlements made during the year | (3,311 | ) | |||
Balance at November 30, 2013: | $ | 2,962 | |||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended |
Nov. 30, 2013 | |
Supplemental Cash Flow Information | ' |
Supplemental Cash Flow Information | ' |
14. Supplemental Cash Flow Information | |
Cash paid for income taxes was $3,066, $2,032 and $2,572 for the years ended November 30, 2013, 2012 and 2011, respectively. Cash received from income tax refunds was $1,550, $0 and $0 for the years ended November 30, 2013, 2012 and 2011, respectively. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
15. Segment Information | |||||||||||||||||
The Company reports its operations in two product segments— | |||||||||||||||||
Enterprise Data Storage Solutions and HDD Capital Equipment. | |||||||||||||||||
Description of the Company’s segments: | |||||||||||||||||
Enterprise Data Storage Solutions. Hard disk drive (HDD) based storage subsystems and solutions which are sold to Original Equipment Manufacturers (OEMs). | |||||||||||||||||
HDD Capital Equipment. HDD manufacturing process equipment, which is sold directly to manufacturers of HDDs and their component suppliers. | |||||||||||||||||
Segment revenue and profit. | |||||||||||||||||
The accounting policies used to derive reportable segment results are generally the same as those described in Note 2, “Summary of Significant Accounting Policies”. | |||||||||||||||||
The following tables reflect the results of the Company’s reportable segments under the Company’s management reporting system. These results are not necessarily a depiction that is in conformity with accounting principles generally accepted in the United States and in particular does not include equity compensation expense. The performance of each segment is generally measured based on gross profit before non-cash equity compensation. | |||||||||||||||||
Year Ended November 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Revenues: | |||||||||||||||||
Enterprise Data Storage Solutions | $ | 655,184 | $ | 974,043 | $ | 1,324,547 | |||||||||||
HDD Capital Equipment | 159,134 | 184,855 | 123,929 | ||||||||||||||
Total Segments | $ | 814,318 | $ | 1,158,898 | $ | 1,448,476 | |||||||||||
Gross profit: | |||||||||||||||||
Enterprise Data Storage Solutions | $ | 122,212 | $ | 155,326 | $ | 212,654 | |||||||||||
HDD Capital Equipment | 49,093 | 41,475 | 10,242 | ||||||||||||||
Total Segments | 171,305 | 196,801 | 222,896 | ||||||||||||||
Non cash equity compensation | (224 | ) | (965 | ) | (824 | ) | |||||||||||
Total | $ | 171,081 | $ | 195,836 | $ | 222,072 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
Enterprise Data Storage Solutions | $ | 10,373 | $ | 9,799 | $ | 10,326 | |||||||||||
HDD Capital Equipment | 2,925 | 6,949 | 8,854 | ||||||||||||||
Total Segments | 13,298 | 16,748 | 19,180 | ||||||||||||||
Corporate | 4,519 | 4,342 | 4,401 | ||||||||||||||
Total | $ | 17,817 | $ | 21,090 | $ | 23,581 | |||||||||||
Total segments revenue represents total revenues as reported by the Company for all periods presented. Gross profit above represents gross profit as reported by the Company for all periods presented. Income before income taxes as reported by the Company for all periods presented also includes total operating expenses, other income and net interest income. The chief operating decision maker does not review asset information by segment and therefore no asset information is presented. | |||||||||||||||||
Geographic Information | |||||||||||||||||
Americas | United | Malaysia | Other | Total | |||||||||||||
Kingdom | |||||||||||||||||
Revenues (based on location at which the sale originated): | |||||||||||||||||
Year Ended November 30, 2013 | $ | 355,340 | $ | 133,618 | $ | 322,631 | $ | 2,729 | $ | 814,318 | |||||||
Year Ended November 30, 2012 | $ | 533,580 | $ | 235,352 | $ | 388,780 | $ | 1,186 | $ | 1,158,898 | |||||||
Year Ended November 30, 2011 | $ | 770,249 | $ | 248,296 | $ | 428,597 | $ | 1,334 | $ | 1,448,476 | |||||||
Long-lived assets (all non-current assets): | |||||||||||||||||
November 30, 2013 | $ | 8,475 | $ | 27,706 | $ | 15,554 | $ | 4,134 | $ | 55,869 | |||||||
November 30, 2012 | $ | 8,703 | $ | 28,891 | $ | 16,659 | $ | 916 | $ | 55,169 | |||||||
November 30, 2011 | $ | 8,967 | $ | 33,695 | $ | 19,618 | $ | 1,063 | $ | 63,343 | |||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Nov. 30, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
16. Subsequent Events | |
The Company announced on December 23, 2013 that it had entered into a definitive agreement to be acquired by Seagate Technology plc under which Seagate would acquire all outstanding shares of Xyratex Ltd in an all-cash transaction valued at $13.25 per share, or a total of approximately $376 million (the “Merger”). On March 31, 2014, the Merger was consummated and Seagate Technology International, an indirect subsidiary of Seagate Technology plc, is now the sole shareholder of Xyratex Ltd. No adjustments are required to be made in these financial statements for the effects on the business of this transaction. |
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ' | ||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||
Balance at | Charged to | Acquisition | Charged to | Deductions | Balance at | ||||||||||||
beginning | costs and | other | end of | ||||||||||||||
of period | expenses | accounts | period | ||||||||||||||
(U.S. dollars in thousands) | |||||||||||||||||
Year ended November 30, 2013: | |||||||||||||||||
Deferred tax valuation allowance | $ | 2,131 | — | — | $ | 18,925 | — | $ | 21,056 | ||||||||
Warranty provision | $ | 4,006 | 2,267 | — | — | (3,311 | ) | $ | 2,962 | ||||||||
Allowance for doubtful accounts | $ | 160 | — | — | — | — | $ | 160 | |||||||||
Year ended November 30, 2012: | |||||||||||||||||
Deferred tax valuation allowance | $ | 4,751 | — | — | (2,620 | ) | — | $ | 2,131 | ||||||||
Warranty provision | $ | 4,928 | 2,996 | — | — | (3,918 | ) | $ | 4,006 | ||||||||
Allowance for doubtful accounts | $ | 148 | 12 | — | — | — | $ | 160 | |||||||||
Year ended November 30, 2011: | |||||||||||||||||
Deferred tax valuation allowance | $ | 1,009 | — | — | 3,742 | — | $ | 4,751 | |||||||||
Warranty provision | $ | 5,585 | 3,780 | — | — | (4,437 | ) | $ | 4,928 | ||||||||
Allowance for doubtful accounts | $ | 310 | — | — | — | (162 | ) | $ | 148 | ||||||||
Basis_of_Presentation_and_Summ1
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Nov. 30, 2013 | |
Basis of Presentation and Summary of Significant Accounting Policies | ' |
Fiscal year | ' |
Fiscal year. The Company’s fiscal year ends on November 30. | |
Principles of consolidation | ' |
Principles of consolidation. The consolidated financial statements include the accounts of Xyratex Ltd and its wholly and majority-owned subsidiaries. Wholly and majority-owned subsidiaries are all entities over which the Company has the power to control the entity’s financial and operating policies. All significant intercompany accounts and transactions have been eliminated. | |
Use of estimates | ' |
Use of estimates. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States 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 consolidated financial statements and the reported amount of revenues and expenses during the reporting periods. Some of the more significant estimates include inventory valuation reserves, depreciation, amortization and impairment of long-lived assets including goodwill, deferred tax asset valuation allowance, warranty reserves and equity compensation expense. Actual results could differ from those estimates. | |
Foreign currency | ' |
Foreign currency. The U.S. dollar is the functional currency of all operations as most revenues and expenses are incurred in U.S. dollars. As such, non-monetary assets and liabilities of operations located outside of the U.S. are remeasured into U.S. dollars using historical exchange rates. Monetary assets and liabilities are remeasured using the current rate at each balance sheet date. Revenue and expenses are generally translated at a monthly exchange rate, being the actual rate at the beginning of each month, except for those expenses related to balance sheet amounts that are remeasured at historical exchange rates. Gains or losses from foreign currency remeasurement are included in income. Net foreign currency remeasurement losses of $4, $30 and $26 are included in selling general and administrative expenses, in the years ended November 30, 2013, 2012 and 2011, respectively. | |
Comprehensive income | ' |
Comprehensive income. In addition to net income, comprehensive income includes charges or credits to equity that are not the result of transactions with shareholders. For the Company, this includes unrealized gains and losses on forward foreign currency contracts and foreign currency options. The Company has included components of comprehensive income within the Consolidated Statements of Shareholders’ Equity and Comprehensive Income. | |
Revenue recognition | ' |
Revenue recognition. Revenue from product sales is recognized once delivery has occurred provided that persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectibility is reasonably assured. Delivery is considered to have occurred when title and risk of loss have transferred to the customer. | |
Certain product sales, primarily for the Capital Equipment segment, include customer acceptance provisions. For products produced according to the Company’s published specifications and where no substantive customer acceptance provisions exist, revenue is recognized when title passes to the customer, generally on delivery. For products produced according to a particular customer’s specifications, revenue is recognized when the product has been tested and it has been demonstrated that it meets the customer’s specifications and title passes to the customer. For new products, new applications of existing products or for products with substantive customer acceptance provisions where performance cannot be fully assessed prior to meeting customer specifications at the customer site, revenue is recognized upon receipt of final customer acceptance. | |
In certain instances, the Company requires advanced deposits for a portion of the sales price in advance of shipment. These amounts are recorded as deferred revenue until the revenue recognition criteria above are met. | |
A number of the Company’s contracts for the supply of products have included payments upon the achievement of milestones for Non-Recurring Engineering (“NRE”) during the product development phase. For those contracts where we determine that the product development phase constitutes a separate earnings process revenue relating to the NRE payments is recognized upon the achievement of the applicable milestones. Other NRE payments and up-front fees received on execution of a contract are recognized over the estimated period of product shipments. Revenue related to NRE payments which was recognized on the achievement of substantive milestones amounted to approximately $7,105, $1,581 and $987 in the years ended November 30, 2013, 2012 and 2011 respectively. | |
Research and development | ' |
Research and development. Amounts spent by the Company for research and development efforts are recorded as research and development expenses when incurred. | |
Warranty expense | ' |
Warranty expense. The Company generally offers warranties between one and three years. Estimated future warranty obligations related to product sales are charged to operations in the period in which the related revenue is recognized. These estimates are based on historical warranty experience and other relevant information of which the Company is aware. During the years ended November 30, 2013, 2012 and 2011, warranty expense was $2,267, $2,996 and $3,780 respectively. | |
Shipping and handling costs | ' |
Shipping and handling costs. Shipping and handling costs charged to customers are included in revenues and the associated expense is recorded in cost of revenues for all periods presented. | |
Advertising | ' |
Advertising. Advertising costs are expensed as incurred and amounted to $168, $52 and $31during the years ended November 30, 2013, 2012 and 2011, respectively. | |
Pensions and 401(k) plan | ' |
Pensions and 401(k) plan. Retirement benefits are provided for U.K. and Malaysian employees by defined contribution pension plans whereby the assets of the plans are held separately from those of the Company and are independently administered. The Company also makes contributions to a 401(k) savings plan for U.S. employees. Contributions by the Company to defined contribution pension plans are charged to income as they become payable and amounted to $4,939, $4,962 and $5,088 during the years ended November 30, 2013, 2012 and 2011, respectively. | |
Equity compensation | ' |
Equity compensation. The Company accounts for employee equity awards under the fair value method. Accordingly, the Company measures equity compensation at the grant date based on the fair value of the award. Equity compensation is based on the graded vesting of the share-based award, adjusted for expected forfeitures. | |
In the three years ended November 30, 2013 the Company’s share based awards were primarily in the form of Restricted Stock Units (“RSUs”). The valuation of these awards is based on the share price on the date of grant and requires the estimate of forfeiture levels and the achievement of performance conditions. | |
The Company uses the Black-Scholes option pricing model as the method of valuation for share option grants under the Company’s share purchase plans. | |
Income taxes | ' |
Income taxes. Provision for income taxes is based on income before taxes. Deferred tax assets and liabilities are recognized principally for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. Deferred tax assets also arise from net operating losses and are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce the deferred tax assets to the amount more likely than not to be realized. | |
We recognize the tax liability for uncertain income tax positions using the two step method set out in accounting guidance. Firstly we assess whether each income tax position is “more likely than not” to be sustained on audit, including resolution of related appeals or litigation process, if any. Secondly, for each income tax position that meets the “more likely than not” recognition threshold, the Company then assesses the largest amount of tax benefit that is greater than 50% likely of being realized upon effective settlement with the tax authority. | |
Net earnings per share | ' |
Net earnings per share. Basic net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding, during the period, excluding the dilutive effect of RSUs and share options. Diluted net earnings per share gives effect to all potentially dilutive common share equivalents outstanding during the period including RSUs and share options. | |
Cash and cash equivalents | ' |
Cash and cash equivalents. Investments are classified as cash equivalents if their original maturity is three months or less. Cash equivalents are stated at cost, which approximates fair value. | |
Accounts receivable | ' |
Accounts receivable. Accounts receivable are stated at cost less the allowance for doubtful amounts. No interest has been charged on accounts receivable. | |
Inventory | ' |
Inventory. Inventory is valued at standard cost, which approximates actual cost computed on a first-in, first-out basis, not in excess of market value. | |
Property, plant and equipment | ' |
Property, plant and equipment. Property, plant and equipment are stated at cost less accumulated depreciation. Additions, improvements and major renewals are capitalized; maintenance, repairs and minor renewals are expensed as incurred. When assets are retired or disposed of, the assets and related accumulated depreciation and amortization are removed from the balance sheet and the resulting gain or loss is reflected in current income. Depreciation is provided using the straight-line method, principally over five to twenty five years for buildings and improvements and two to seven years for machinery and equipment. Depreciation of leasehold improvements is provided using the straight-line method over the life of the asset or the minimum term of the lease, whichever is shorter. Land is not depreciated. | |
Software Development Cost | ' |
Software Development Cost. Costs related to internally developed software and software purchased for internal use are capitalized. Capitalized software is included in property, plant and equipment and is depreciated between two and seven years when development is complete, and amounted to $697, $1,746 and $1,660 for the years ended November 30, 2013, 2012 and 2011 respectively. | |
Goodwill and purchased intangible assets | ' |
Goodwill and purchased intangible assets. Purchased intangible assets with identifiable lives are carried at cost less accumulated amortization. Amortization is computed using the straight-line method over the estimated economic lives of the respective assets. Under the provisions of the accounting guidance, goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment at least annually or more frequently if impairment indicators arise. The Company will determine whether it is appropriate to to use qualitative factors to establish that it is more likely than not that the fair value of a reporting unit greater than its carrying amount. If qualitative assessment is not appropriate then impairment of goodwill is tested quantitatively using a two-step approach at the reporting unit level. The first step requires comparison of the reporting unit’s carrying amount, including goodwill, to the fair value of the reporting unit. The fair values of the reporting units are estimated using the discounted cash flows approach which utilizes market data including the Company’s market value. If the carrying amount of the reporting unit exceeds its fair value, goodwill is considered impaired and a second step is performed to measure the amount of impairment. The second step involves determining the implied fair value of goodwill for each reporting unit. Any excess carrying amount of goodwill over the fair value determined in the second step will be recorded as a goodwill impairment loss. | |
Impairment of long-lived assets | ' |
Impairment of long-lived assets. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances are present, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the future cash flows is less than the carrying amount of those assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair value of the assets. | |
Treasury stock | ' |
Treasury stock. The Company accounts for its repurchase of shares under the cost method of accounting for treasury stock, whereby the treasury stock is recorded at the cost of reacquisition and reported as a deduction from shareholders equity. Differences in the share price upon subsequent reissuance from the original issuance are recorded through paid in capital. Retirement of treasury shares results in elimination of the original par value, with any excess amounts recorded in retained earnings. | |
Derivative financial instruments | ' |
Derivative financial instruments. The Company enters into derivative financial instruments (forward foreign currency contracts and foreign currency options) in order to manage currency risks arising from its forecasted and firmly committed foreign currency denominated cash flows. The Company enters into these hedging relationships to limit foreign exchange rate risk for periods not exceeding 24 months. The Company does not utilize financial instruments for trading or speculative purposes. | |
The Company recognizes all derivatives as either assets or liabilities in the consolidated balance sheet at fair value. The Company formally documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking hedge transactions. This documentation includes linking all derivatives to specific forecasted cash flows. The Company also formally assesses both at the hedge’s inception and on an ongoing basis whether the derivatives used in hedging transactions have been highly effective in offsetting changes in the cash flows of hedged items and whether those derivatives may be expected to remain highly effective in future periods. | |
Where hedge instruments continue to be highly effective changes in fair value of these instruments are deferred and recorded, net of the related tax effects, as a component of accumulated other comprehensive income (AOCI) until the hedged transactions affect earnings, at which time the deferred gains and losses on the forward foreign currency contracts are recognized in the income statement. When it is determined that a derivative is not, or has ceased to be, highly effective as a hedge, the Company discontinues hedge accounting prospectively and recognizes future changes in fair value in current earnings. | |
The Company has designated all its forward foreign currency contracts as qualifying for hedge accounting and as remaining highly effective throughout their existence. | |
Fair Value Measurements | ' |
Fair Value Measurements. The fair value of the Company’s financial instruments other than derivative financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate cost because of their short maturities. The fair value of the Company’s forward foreign exchange contracts and options is based on foreign currency spot rates and forward rates quoted by banks. | |
Concentration of credit risk | ' |
Concentration of credit risk. Financial instruments which potentially subject the Company to concentrations of credit risk include cash and cash equivalents, short-term investments and accounts receivable. The Company places its cash and cash equivalents and short-term investments with high-credit quality financial institutions. Cash deposits are placed with up to three institutions and such deposits generally exceed governmentally insured limits. Concentrations of credit risk, with respect to accounts receivable, exist to the extent of amounts presented in the financial statements. Two customers, each with balances greater than 10% of total accounts receivable, represented 58% and 60% of the total accounts receivable balance at November 30, 2013 and 2012, respectively. Generally, the Company does not require collateral or other security to support customer receivables. The Company performs periodic credit evaluations of its customers and maintains an allowance for potential credit losses based on historical experience and other information available to management. Losses to date have been within management’s expectations. | |
Revenues of the Enterprise Data Storage Solutions segment include revenue from four customers accounting for 25%, 20%, 12% and 11% of the Company’s revenues in the year ended November 30, 2013, three customers accounting for 38%, 19% and 15% of the Company’s revenues in the year ended November 30, 2012 and three customers accounting for 42%, 22% and 13% of the Company’s revenues in the year ended November 30, 2011. Revenues of the HDD Capital equipment segment include revenue from one customer accounting for 11% of the Company’s revenues in the year ended November 30, 2013. No other customer accounted for more than 10% of revenues. | |
Supplier risk | ' |
Supplier risk. The Company integrates highly specialized components, such as disk drives, printed circuit board assemblies and power supplies into its products. These components are generally available from a single source or a limited number of suppliers. If any of these suppliers failed to meet the Company’s timing and quality requirements or unexpectedly discontinued its business relations with the Company, and no alternative supplier were found within a reasonable period of time, the Company’s ability to manufacture products at acceptable prices or to deliver products on time could be impaired, possibly resulting in loss of sales. | |
Recent accounting pronouncements | ' |
Recent accounting pronouncements | |
In July, 2013, the FASB issued ASU No. 2013-11, Income Taxes (ASC Topic 740) - Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists . The amendments in this ASU provide explicit guidance that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, with limited exceptions. The amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and do not require new recurring disclosures. The adoption of this new guidance will be assessed as part of Seagate, but would not have had a material impact on the Company’s consolidated financial statements. | |
In May 2014, the FASB issued ASU 2014-09 (ASC Topic 606) , Revenue from Contracts with Customers. The ASU outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. It also requires entities to disclose both quantitative and qualitative information that enable financial statements users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The ASU would have been effective in the Company’s 2017 fiscal year. The impact, if any, of ASU 2014-09 will be assessed as part of Seagate Technology. |
Net_earnings_per_share_Tables
Net earnings per share (Tables) | 12 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Net earnings per share | ' | |||||||
Schedule of weighted average common shares | ' | |||||||
Number of common shares | ||||||||
Year Ended November 30, | ||||||||
2013 | 2012 | 2011 | ||||||
Total weighted average common shares—basic | 27,463 | 27,513 | 29,605 | |||||
Dilutive effect of share options | — | 16 | 60 | |||||
Dilutive effect of restricted stock units | 412 | 670 | 966 | |||||
Total weighted average common shares—diluted | 27,875 | 28,199 | 30,631 | |||||
Acquisitions_and_intangible_as1
Acquisitions and intangible assets (Tables) | 12 Months Ended | ||||||||||
Nov. 30, 2013 | |||||||||||
Acquisitions and intangible assets | ' | ||||||||||
Schedule of changes in the carrying amount of goodwill | ' | ||||||||||
Enterprise | HDD | Total | |||||||||
Data Storage | Capital | ||||||||||
Solutions | Equipment | ||||||||||
Balance at November 30, 2010 | $ | 794 | $ | 2197 | $ | 2991 | |||||
Acquisition of business | $ | — | $ | 2,805 | $ | 2,805 | |||||
Additional contingent consideration | $ | — | $ | 1,304 | $ | 1,304 | |||||
Balance at November 30, 2011 | $ | 794 | $ | 6,306 | $ | 7,100 | |||||
Balance at November 30, 2012 | $ | 794 | $ | 6,306 | $ | 7,100 | |||||
Additional contingent consideration | $ | 56 | $ | — | $ | 56 | |||||
Balance at November 30, 2013 | $ | 850 | $ | 6,306 | $ | 7,156 | |||||
Schedule of identified intangible assets | ' | ||||||||||
November 30, 2013 | |||||||||||
Gross | Accumulated | Net | |||||||||
Assets | Amortization | Assets | |||||||||
Existing technology | $ | 700 | $ | 324 | $ | 376 | |||||
Patents and core technology | 10,000 | 6,103 | 3,897 | ||||||||
In Process Research and Development | 2,100 | 840 | 1,260 | ||||||||
Software | 2,500 | 915 | 1,585 | ||||||||
Total | $ | 15,300 | $ | 8,182 | $ | 7,118 | |||||
November 30, 2012 | |||||||||||
Gross | Accumulated | Net | |||||||||
Assets | Amortization | Assets | |||||||||
Existing technology | $ | 700 | $ | 184 | $ | 516 | |||||
Patents and core technology | 10,000 | 5,041 | 4,959 | ||||||||
In Process Research and Development | 2,100 | 420 | 1,680 | ||||||||
Software | 1,200 | 480 | 720 | ||||||||
Total | $ | 14,000 | $ | 6,125 | $ | 7,875 | |||||
Schedule of expected amortization of intangible assets | ' | ||||||||||
Amortization | |||||||||||
2014 | $ | 2,227 | |||||||||
2015 | 2,184 | ||||||||||
2016 | 1,847 | ||||||||||
2017 | $ | 357 |
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Inventories | ' | |||||||
Schedule of inventories | ' | |||||||
November 30, | ||||||||
2013 | 2012 | |||||||
Finished goods | $ | 36,755 | $ | 30,456 | ||||
Work in progress | 28,766 | 33,202 | ||||||
Raw materials | 66,706 | 107,947 | ||||||
$ | 132,227 | $ | 171,605 |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | |||||||
Nov. 30, 2013 | ||||||||
Property, Plant and Equipment, Net. | ' | |||||||
Schedule of property, plant and equipment, net | ' | |||||||
November 30, | ||||||||
2013 | 2012 | |||||||
Land | $ | 1,421 | $ | 1,421 | ||||
Buildings and leasehold improvements | 17,622 | 16,250 | ||||||
Machinery and equipment | 138,822 | 139,342 | ||||||
157,865 | 157,013 | |||||||
Accumulated depreciation | (116,270 | ) | (116,819 | ) | ||||
$ | 41,595 | $ | 40,194 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Nov. 30, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
Schedule of provision (benefit) from income taxes | ' | ||||||||||||
Year Ended November 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.K. | Current | $ | — | $ | — | $ | — | ||||||
U.S. | Current | 2,608 | 1,941 | 1,604 | |||||||||
Other jurisdictions | Current | 315 | 178 | 40 | |||||||||
Deferred | 16,330 | (2,517 | ) | 1,432 | |||||||||
Total | $ | 19,253 | $ | (398 | ) | $ | 3,076 | ||||||
Schedule of components of deferred tax assets and liabilities | ' | ||||||||||||
November 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Deferred tax assets: | |||||||||||||
U.K. net operating loss carryforwards | $ | 14,262 | $ | 8,929 | |||||||||
U.S. net operating loss carryforwards | 4,235 | 5,263 | |||||||||||
Other net operating loss carryforwards | 2,256 | 2,131 | |||||||||||
Timing difference on equity compensation | 2,274 | 4,100 | |||||||||||
Property, plant and equipment | 4,375 | 4,619 | |||||||||||
Timing differences on inventory | 2,142 | 2,228 | |||||||||||
Forward foreign exchange contracts | — | — | |||||||||||
Other deferred tax assets | 181 | 102 | |||||||||||
Less: valuation allowance | (21,056 | ) | (2,131 | ) | |||||||||
Total deferred tax assets | 8,669 | 25,241 | |||||||||||
Deferred tax liabilities | |||||||||||||
Forward foreign exchange contracts | (424 | ) | (265 | ) | |||||||||
Intangible assets | (900 | ) | (819 | ) | |||||||||
Net deferred tax assets | $ | 7,345 | $ | 24,157 | |||||||||
Current | $ | 762 | $ | 228 | |||||||||
Non-current | $ | 6,583 | $ | 23,929 | |||||||||
Schedule of application of notional U.K. rate for purposes of reconciliation between the provision for (benefit from) income taxes at the statutory rate and the effective tax rate | ' | ||||||||||||
Year Ended | |||||||||||||
November 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Provision (benefit) for income taxes at corporation tax rate | 23 | % | 24 | % | 26 | % | |||||||
Adjustment in respect of prior years | 17.6 | (8.4 | ) | 1.8 | |||||||||
Other nondeductible expenses | 3.1 | 0.1 | (0.3 | ) | |||||||||
Research and development tax credits | 94.7 | (26.2 | ) | (13.6 | ) | ||||||||
Effect of change in U.K. tax rate | (144.6 | ) | 6.8 | 3.3 | |||||||||
Tax differentials on foreign income | (9.5 | ) | (3.9 | ) | (2.2 | ) | |||||||
Other valuation allowances | (975.8 | ) | 1.4 | 2.2 | |||||||||
Movement in unrecognized tax benefits | 8.2 | 3.9 | (7.1 | ) | |||||||||
Provision (benefit) for income taxes | (983.3 | )% | (2.3 | )% | 10.1 | % | |||||||
Schedule of components of income before income taxes | ' | ||||||||||||
Year Ended November 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.K. | $ | (18,329 | ) | $ | 7,536 | $ | 17,937 | ||||||
U.S. | 8,090 | 6,000 | 8,726 | ||||||||||
Malaysia | 7,497 | 5,376 | 8,702 | ||||||||||
Other | 784 | (1,650 | ) | (3,992 | ) | ||||||||
Total | $ | (1,958 | ) | $ | 17,262 | $ | 31,373 | ||||||
Summary of activity related to the Company's gross unrecognized tax benefits | ' | ||||||||||||
Year Ended | |||||||||||||
November 30, | |||||||||||||
2013 | 2012 | ||||||||||||
Balance of unrecognized tax benefits at December 1 | $ | 4,301 | $ | 3,859 | |||||||||
Gross increase for tax positions taken during a prior period | — | 29 | |||||||||||
Gross decrease for tax positions taken during a prior period | (106 | ) | (60 | ) | |||||||||
Gross increase for tax positions taken during the current period | 872 | 810 | |||||||||||
Settlements | (247 | ) | (147 | ) | |||||||||
Reductions as a result of a lapse of the applicable statute of limitations | (1,080 | ) | (190 | ) | |||||||||
Balance of unrecognized tax benefits at November 30 | $ | 3,740 | $ | 4,301 | |||||||||
Equity_compensation_plans_Tabl
Equity compensation plans (Tables) | 12 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Equity compensation plans | ' | |||||||||||||
Summary of equity compensation expense related to share-based awards | ' | |||||||||||||
Year ended November 30, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Equity compensation: | ||||||||||||||
Cost of revenues | $ | 224 | $ | 965 | $ | 824 | ||||||||
Research and development | 738 | 2,300 | 2,534 | |||||||||||
Selling, general and administrative | 2,196 | 3,337 | 3,769 | |||||||||||
Total equity compensation | 3,158 | 6,602 | 7,127 | |||||||||||
Related income tax benefit | $ | 632 | $ | 1,518 | $ | 1,782 | ||||||||
Summary of restricted stock units granted, exercised, canceled and expired | ' | |||||||||||||
RSU | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Grant Date | Remaining | Value | ||||||||||||
Fair Value | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Non-vested restricted stock units at November 30, 2010 | 2,073 | $ | 11.32 | 1.7 | ||||||||||
Granted | 980 | 13.04 | ||||||||||||
Vested | (659 | ) | 11.74 | |||||||||||
Cancelled/forfeited | (446 | ) | 11.36 | |||||||||||
Non-vested restricted stock units at November 30, 2011 | 1,948 | $ | 12.09 | 1.6 | ||||||||||
Granted | 1,118 | 13.64 | ||||||||||||
Vested | (544 | ) | 11.27 | |||||||||||
Cancelled/forfeited | (686 | ) | 13.31 | |||||||||||
Non-vested restricted stock units at November 30, 2012 | 1,836 | $ | 14.03 | 1.6 | ||||||||||
Granted | 154 | 10.75 | ||||||||||||
Vested | (533 | ) | 11.74 | |||||||||||
Cancelled/forfeited | (799 | ) | 15.99 | |||||||||||
Non-vested restricted stock units at November 30, 2013 | 658 | $ | 12.7 | 0.7 | ||||||||||
Non-vested restricted stock units expected to vest at November 30, 2013 | 623 | $ | 12.69 | 0.7 | $ | 6,432 | ||||||||
Equity compensation plans | ' | |||||||||||||
Summary of information about share options outstanding | ' | |||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Exercise Prices | Number | Weighted-Average | Weighted-Average | Number | Weighted-Average | |||||||||
Outstanding | Remaining | Exercise Price | Exercisable | Exercise Price | ||||||||||
Contractual Life | ||||||||||||||
(in years) | ||||||||||||||
$9.65 - $10.84 | 203 | 9.3 | $ | 10.82 | 3 | $ | 9.65 | |||||||
$13.51 - $14.47 | 317 | 1.1 | $ | 14.11 | 317 | $ | 14.11 | |||||||
520 | 4.3 | $ | 12.83 | 320 | $ | 14.06 | ||||||||
Summary of ESPP activity | ' | |||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at November 30, 2010 | 26 | $ | 13.8 | 0.4 | ||||||||||
Granted | 46 | 8.54 | ||||||||||||
Canceled/forfeited | (26 | ) | 13.8 | |||||||||||
Outstanding at November 30, 2011 | 46 | $ | 8.54 | 0.4 | ||||||||||
Granted | 51 | 12.36 | ||||||||||||
Exercised | (39 | ) | 8.54 | |||||||||||
Canceled/forfeited | (7 | ) | 8.54 | |||||||||||
Outstanding at November 30, 2012 | 51 | $ | 12.36 | 0.4 | ||||||||||
Granted | 26 | 8.78 | ||||||||||||
Canceled/forfeited | (51 | ) | 12.36 | |||||||||||
Outstanding at November 30, 2013 | 26 | $ | 8.78 | 0.4 | $ | 40 | ||||||||
Summary of fair value of options estimated using weighted average assumptions | ' | |||||||||||||
Year ended November 30, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||
Risk-free interest rate | 0.13 | % | 0.16 | % | 1 | % | ||||||||
Dividend yield | 3 | % | 2.3 | % | 0 | % | ||||||||
Volatility | 62 | % | 42 | % | 66 | % | ||||||||
Expected option life | 4.0 years | 1.5 years | 1.5 years | |||||||||||
Sharesave Plan | ' | |||||||||||||
Equity compensation plans | ' | |||||||||||||
Summary of options activity | ' | |||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at November 30, 2010 | 76 | $ | 15.66 | 2.1 | ||||||||||
Granted | 190 | 8.25 | ||||||||||||
Canceled/forfeited | (61 | ) | 15.57 | |||||||||||
Outstanding at November 30, 2011 | 205 | $ | 8.82 | 2.9 | ||||||||||
Granted | 28 | 13.1 | ||||||||||||
Canceled/forfeited | (62 | ) | 9.61 | |||||||||||
Outstanding at November 30, 2012 | 171 | $ | 9.23 | 2 | ||||||||||
Granted | 28 | 9.88 | ||||||||||||
Exercised | (5 | ) | 8.25 | |||||||||||
Canceled/forfeited | (11 | ) | 16.01 | |||||||||||
Outstanding at November 30, 2013 | 183 | $ | 8.95 | 1.4 | 298 | |||||||||
Share Option Plans | ' | |||||||||||||
Equity compensation plans | ' | |||||||||||||
Summary of options activity | ' | |||||||||||||
Options | Weighted- | Weighted- | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise | Remaining | Value | ||||||||||||
Price | Contractual | |||||||||||||
Term | ||||||||||||||
(years) | ||||||||||||||
Outstanding at November 30, 2010 | 832 | $ | 12.42 | |||||||||||
Exercised | (301 | ) | 11.6 | |||||||||||
Canceled/forfeited | (5 | ) | 13.6 | |||||||||||
Outstanding at November 30, 2011 | 526 | $ | 12.81 | |||||||||||
Exercised | (71 | ) | 4.24 | |||||||||||
Canceled/forfeited | (11 | ) | 14.78 | |||||||||||
Outstanding at November 30, 2012 | 444 | $ | 14.14 | |||||||||||
Granted | 250 | 10.84 | ||||||||||||
Canceled/forfeited | (174 | ) | 10.16 | |||||||||||
Outstanding at November 30, 2013 | 520 | $ | 12.83 | 4.3 | $ | 2 | ||||||||
Exercisable at November 30, 2011 | 526 | $ | 12.81 | |||||||||||
Exercisable at November 30, 2012 | 444 | $ | 14.14 | |||||||||||
Exercisable at November 30, 2013 | 320 | $ | 14.06 | 0.8 | $ | 2 | ||||||||
Financial_Instruments_Tables
Financial Instruments (Tables) | 12 Months Ended | |||||||||||||
Nov. 30, 2013 | ||||||||||||||
Financial Instruments | ' | |||||||||||||
Summary of foreign currency derivative contract activity | ' | |||||||||||||
Number | ||||||||||||||
of contracts | ||||||||||||||
At November 30, 2011 | 31 | |||||||||||||
Matured during the period | (31 | ) | ||||||||||||
New contracts entered into during the period | 34 | |||||||||||||
At November 30, 2012 | 34 | |||||||||||||
Matured during the period | (34 | ) | ||||||||||||
New contracts entered into during the period | 35 | |||||||||||||
At November 30, 2013 | 35 | |||||||||||||
Schedule of fair value of derivative instruments and their location in consolidated balance sheet | ' | |||||||||||||
Derivatives designated as hedging instruments: | Balance Sheet Location | November 30, | November 30, | |||||||||||
2013 | 2012 | |||||||||||||
Asset derivatives | Other current assets | $ | 2,288 | $ | 1,313 | |||||||||
Schedule of effect of derivative instruments designated as cash flow hedges on the consolidated statement of operations | ' | |||||||||||||
Derivatives in Cash Flow Hedging Relationships – Foreign exchange contracts | Gain (Loss) | Gain (Loss) | ||||||||||||
Recognized(1) | Reclassified(2) | |||||||||||||
Year ended November 30 2013 | $ | 1,699 | $ | 1,313 | ||||||||||
Year ended November 30 2012 | $ | 1,313 | $ | (1,539 | ) | |||||||||
Year ended November 30 2011 | $ | (1,539 | ) | $ | 697 | |||||||||
(1) Amount recognized in AOCI (effective portion) net of tax of $0, $288 and $(632) respectively. | ||||||||||||||
(2) Amount of gain (loss) reclassified from AOCI into income (effective portion) located in expense. | ||||||||||||||
Schedule of existing derivatives | ' | |||||||||||||
November 30, | ||||||||||||||
Derivatives between U.K. pound and U.S. dollar | 2013 | 2012 | ||||||||||||
Nominal value of forward exchange contracts and options | $ | 49,583 | $ | 50,232 | ||||||||||
Fair value of contracts—asset (liability) | $ | 2,641 | $ | 932 | ||||||||||
Average rate of contract | $ | 1.56 | $ | 1.57 | ||||||||||
Period end rate | $ | 1.63 | $ | 1.6 | ||||||||||
November 30, | ||||||||||||||
Derivatives between Malaysian ringgit and U.S. dollar | 2013 | 2012 | ||||||||||||
Nominal value of forward exchange contracts and options | $ | 18,000 | $ | 18,000 | ||||||||||
Fair value of contracts—asset (liability) | $ | (352 | ) | $ | 381 | |||||||||
Average rate of contract | $ | 0.31 | $ | 0.32 | ||||||||||
Period end rate | $ | 0.31 | $ | 0.33 | ||||||||||
Schedule of the Company's assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||
November 30, 2013 | November 30, 2012 | |||||||||||||
Total | Significant | Total | Significant | |||||||||||
Other | Other | |||||||||||||
Observable | Observable | |||||||||||||
Inputs | Inputs | |||||||||||||
(Level 2) | (Level 2) | |||||||||||||
Foreign currency forward contracts—asset position | $ | 2,288 | $ | 2,288 | $ | 1,313 | $ | 1,313 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Nov. 30, 2013 | |||||
Commitments and Contingencies | ' | ||||
Schedule of future minimum lease payments under non-cancelable operating lease agreements | ' | ||||
Year Ending November 30, | |||||
2014 | 5,465 | ||||
2015 | 2,777 | ||||
2016 | 1,782 | ||||
2017 | 676 | ||||
2018 | — | ||||
Total minimum payments required | $ | 10,700 | |||
Schedule of changes in the product warranty accrual | ' | ||||
Amount of | |||||
liability | |||||
Balance at November 30, 2010: | $ | 5,585 | |||
Accruals for warranties issued during the year | 3,780 | ||||
Settlements made during the year | (4,437 | ) | |||
Balance at November 30, 2011: | $ | 4,928 | |||
Accruals for warranties issued during the year | 2,996 | ||||
Settlements made during the year | (3,918 | ) | |||
Balance at November 30, 2012: | $ | 4,006 | |||
Accruals for warranties issued during the year | 2,267 | ||||
Settlements made during the year | (3,311 | ) | |||
Balance at November 30, 2013: | $ | 2,962 |
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||
Nov. 30, 2013 | |||||||||||||||||
Segment Information | ' | ||||||||||||||||
Schedule of results of the Company's reportable segments under the Company's management reporting system | ' | ||||||||||||||||
Year Ended November 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Revenues: | |||||||||||||||||
Enterprise Data Storage Solutions | $ | 655,184 | $ | 974,043 | $ | 1,324,547 | |||||||||||
HDD Capital Equipment | 159,134 | 184,855 | 123,929 | ||||||||||||||
Total Segments | $ | 814,318 | $ | 1,158,898 | $ | 1,448,476 | |||||||||||
Gross profit: | |||||||||||||||||
Enterprise Data Storage Solutions | $ | 122,212 | $ | 155,326 | $ | 212,654 | |||||||||||
HDD Capital Equipment | 49,093 | 41,475 | 10,242 | ||||||||||||||
Total Segments | 171,305 | 196,801 | 222,896 | ||||||||||||||
Non cash equity compensation | (224 | ) | (965 | ) | (824 | ) | |||||||||||
Total | $ | 171,081 | $ | 195,836 | $ | 222,072 | |||||||||||
Depreciation and amortization: | |||||||||||||||||
Enterprise Data Storage Solutions | $ | 10,373 | $ | 9,799 | $ | 10,326 | |||||||||||
HDD Capital Equipment | 2,925 | 6,949 | 8,854 | ||||||||||||||
Total Segments | 13,298 | 16,748 | 19,180 | ||||||||||||||
Corporate | 4,519 | 4,342 | 4,401 | ||||||||||||||
Total | $ | 17,817 | $ | 21,090 | $ | 23,581 | |||||||||||
Schedule of geographic information | ' | ||||||||||||||||
Americas | United | Malaysia | Other | Total | |||||||||||||
Kingdom | |||||||||||||||||
Revenues (based on location at which the sale originated): | |||||||||||||||||
Year Ended November 30, 2013 | $ | 355,340 | $ | 133,618 | $ | 322,631 | $ | 2,729 | $ | 814,318 | |||||||
Year Ended November 30, 2012 | $ | 533,580 | $ | 235,352 | $ | 388,780 | $ | 1,186 | $ | 1,158,898 | |||||||
Year Ended November 30, 2011 | $ | 770,249 | $ | 248,296 | $ | 428,597 | $ | 1,334 | $ | 1,448,476 | |||||||
Long-lived assets (all non-current assets): | |||||||||||||||||
November 30, 2013 | $ | 8,475 | $ | 27,706 | $ | 15,554 | $ | 4,134 | $ | 55,869 | |||||||
November 30, 2012 | $ | 8,703 | $ | 28,891 | $ | 16,659 | $ | 916 | $ | 55,169 | |||||||
November 30, 2011 | $ | 8,967 | $ | 33,695 | $ | 19,618 | $ | 1,063 | $ | 63,343 |
The_Company_and_its_Operations1
The Company and its Operations (Details) | 12 Months Ended |
Nov. 30, 2013 | |
item | |
The Company and its Operations | ' |
Number of product groups | 2 |
Basis_of_Presentation_and_Summ2
Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Foreign currency | ' | ' | ' |
Net foreign currency remeasurement losses | $4 | $30 | $26 |
Revenue recognition | ' | ' | ' |
Revenue related to NRE payments recognized on the achievement of substantive milestones | 7,105 | 1,581 | 987 |
Warranty expense | ' | ' | ' |
Warranty period, minimum | '1 year | ' | ' |
Warranty period, maximum | '3 years | ' | ' |
Warranty expense | 2,267 | 2,996 | 3,780 |
Advertising | ' | ' | ' |
Advertising costs | 168 | 52 | 31 |
Pensions and 401(k) plan | ' | ' | ' |
Contributions to defined contribution pension plans | 4,939 | 4,962 | 5,088 |
Property, plant and equipment | ' | ' | ' |
Capitalized software | $697 | $1,746 | $1,660 |
Buildings and improvements | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '5 years | ' | ' |
Buildings and improvements | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '25 years | ' | ' |
Machinery and equipment | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '2 years | ' | ' |
Machinery and equipment | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '7 years | ' | ' |
Internally developed software and purchased software costs | Minimum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '2 years | ' | ' |
Internally developed software and purchased software costs | Maximum | ' | ' | ' |
Property, plant and equipment | ' | ' | ' |
Useful life | '7 years | ' | ' |
Basis_of_Presentation_and_Summ3
Basis of Presentation and Summary of Significant Accounting Policies (Details 2) | 12 Months Ended | ||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | |
Derivative financial instruments | ' | ' | ' |
Maximum period hedged to limit foreign exchange rate risk | '24 months | ' | ' |
Maximum | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Number of institutions in which the Company has cash deposits | 3 | ' | ' |
Accounts receivable | Customers | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk (as a percent) | 58.00% | 60.00% | ' |
Revenues | Customers | Enterprise Data Storage Solutions | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk customers | 4 | 3 | 3 |
Revenues | Customers | HDD Capital Equipment | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk customers | 1 | ' | ' |
Revenues | Customers | Customer one | Enterprise Data Storage Solutions | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk (as a percent) | 25.00% | 38.00% | 42.00% |
Revenues | Customers | Customer one | HDD Capital Equipment | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk (as a percent) | 11.00% | ' | ' |
Revenues | Customers | Customer two | Enterprise Data Storage Solutions | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk (as a percent) | 20.00% | 19.00% | 22.00% |
Revenues | Customers | Customer three | Enterprise Data Storage Solutions | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk (as a percent) | 12.00% | 15.00% | 13.00% |
Revenues | Customers | Customer four | Enterprise Data Storage Solutions | ' | ' | ' |
Concentration of credit risk | ' | ' | ' |
Concentration risk (as a percent) | 11.00% | ' | ' |
Net_earnings_per_share_Details
Net earnings per share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Dilutive effect: | ' | ' | ' |
Total weighted average common shares-basic | 27,463 | 27,513 | 29,605 |
Total weighted average common shares-diluted | 27,463 | 28,199 | 30,631 |
Share options | ' | ' | ' |
Dilutive effect: | ' | ' | ' |
Dilutive effect | ' | 16 | 60 |
Restricted stock units | ' | ' | ' |
Dilutive effect: | ' | ' | ' |
Dilutive effect | 412 | 670 | 966 |
Restructuring_costs_Details
Restructuring costs (Details) (Employee termination, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
item | item | item | |
Employee termination | ' | ' | ' |
Restructuring costs | ' | ' | ' |
Number of employees of the entity reduced | 216 | 264 | 129 |
Employee reduction (as a percent) | 11.00% | 13.00% | 6.00% |
Total cost of employee terminations | $3,672 | $3,520 | $2,750 |
Cash paid for restructuring costs | 3,028 | 2,484 | 1,439 |
Cost of retiring assets associated with leased properties | ' | $600 | ' |
Acquisitions_and_intangible_as2
Acquisitions and intangible assets (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2011 |
Acquisitions and intangible assets | ' | ' |
Cash purchase price | ' | $6,130 |
Goodwill recognized on acquisition | ' | 2,805 |
Amount allocated to tangible assets | ' | 425 |
Additional payments for acquisitions completed in previous years | ' | 1,304 |
Acquisition completed in 2004 | ' | ' |
Acquisitions and intangible assets | ' | ' |
Additional payments for acquisitions completed in previous years | ' | 1,200 |
Developed technology | ' | ' |
Acquisitions and intangible assets | ' | ' |
Amount allocated to intangible assets | ' | 2,900 |
Amortization period | ' | '5 years |
Software | ' | ' |
Acquisitions and intangible assets | ' | ' |
Cash purchase price | 1,300 | 1,200 |
Amortization period | '5 years | '5 years |
Patents | ' | ' |
Acquisitions and intangible assets | ' | ' |
Amortization period | ' | '6 years |
Agreement extension consideration | ' | $7,000 |
Acquisitions_and_intangible_as3
Acquisitions and intangible assets (Details 2) (USD $) | 12 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2011 | Nov. 30, 2013 | Nov. 30, 2011 | Nov. 30, 2010 | Nov. 30, 2011 | Nov. 30, 2013 | Nov. 30, 2012 |
Enterprise Data Storage Solutions | Enterprise Data Storage Solutions | Enterprise Data Storage Solutions | HDD Capital Equipment | HDD Capital Equipment | HDD Capital Equipment | |||
Changes in the carrying amount of goodwill | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | $7,100 | $2,991 | $794 | $794 | $794 | $2,197 | $6,306 | $6,306 |
Acquisition of business | ' | 2,805 | ' | ' | ' | 2,805 | ' | ' |
Additional contingent consideration | 56 | 1,304 | 56 | ' | ' | 1,304 | ' | ' |
Balance at the end of the period | $7,156 | $7,100 | $850 | $794 | $794 | $6,306 | $6,306 | $6,306 |
Acquisitions_and_intangible_as4
Acquisitions and intangible assets (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
item | |||
Identified intangible assets | ' | ' | ' |
Gross Assets | $15,300 | $14,000 | ' |
Accumulated Amortization | 8,182 | 6,125 | ' |
Net Assets | 7,118 | 7,875 | ' |
Cost of fully amortized intangible assets removed from the intangible assets register | ' | 9,900 | ' |
Expected amortization of intangible assets | ' | ' | ' |
2014 | 2,227 | ' | ' |
2015 | 2,184 | ' | ' |
2016 | 1,847 | ' | ' |
2017 | 357 | ' | ' |
Impairment of goodwill and intangible assets | ' | ' | ' |
Goodwill impairment | 0 | ' | 2,230 |
Number of business segments | 2 | ' | ' |
Term used for valuation of intangible assets | '7 years | ' | ' |
Long term growth rate (as a percent) | 1.00% | ' | ' |
Discount rate (as a percent) | 16.00% | ' | ' |
Existing technology | ' | ' | ' |
Identified intangible assets | ' | ' | ' |
Gross Assets | 700 | 700 | ' |
Accumulated Amortization | 324 | 184 | ' |
Net Assets | 376 | 516 | ' |
Patents and core technology | ' | ' | ' |
Identified intangible assets | ' | ' | ' |
Gross Assets | 10,000 | 10,000 | ' |
Accumulated Amortization | 6,103 | 5,041 | ' |
Net Assets | 3,897 | 4,959 | ' |
In Process Research and Development | ' | ' | ' |
Identified intangible assets | ' | ' | ' |
Gross Assets | 2,100 | 2,100 | ' |
Accumulated Amortization | 840 | 420 | ' |
Net Assets | 1,260 | 1,680 | ' |
Software | ' | ' | ' |
Identified intangible assets | ' | ' | ' |
Gross Assets | 2,500 | 1,200 | ' |
Accumulated Amortization | 915 | 480 | ' |
Net Assets | 1,585 | 720 | ' |
Developed technology | ' | ' | ' |
Impairment of goodwill and intangible assets | ' | ' | ' |
Impairment | ' | ' | $2,200 |
Inventories_Details
Inventories (Details) (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Finished goods | $36,755 | $30,456 |
Work in progress | 28,766 | 33,202 |
Raw materials | 66,706 | 107,947 |
Total | $132,227 | $171,605 |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | $157,865 | $157,013 | ' |
Accumulated depreciation | -116,270 | -116,819 | ' |
Property, plant and equipment, net | 41,595 | 40,194 | ' |
Additional disclosure of property, plant and equipment | ' | ' | ' |
Depreciation expense | 15,760 | 17,936 | 19,405 |
Land | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | 1,421 | 1,421 | ' |
Buildings and leasehold improvements | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | 17,622 | 16,250 | ' |
Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment, Net | ' | ' | ' |
Property, plant and equipment, gross | 138,822 | 139,342 | ' |
Additional disclosure of property, plant and equipment | ' | ' | ' |
Disposal of fully-depreciated assets | $16,309 | $4,158 | $5,927 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
item | |||
Provision (benefit) from income taxes | ' | ' | ' |
Deferred | $16,330 | ($2,517) | $1,432 |
Total | 19,253 | -398 | 3,076 |
Deferred tax assets: | ' | ' | ' |
Timing difference on equity compensation | 2,274 | 4,100 | ' |
Property, plant and equipment | 4,375 | 4,619 | ' |
Timing differences on inventory | 2,142 | 2,228 | ' |
Other deferred tax assets | 181 | 102 | ' |
Less: valuation allowance | -21,056 | -2,131 | ' |
Total deferred tax assets | 8,669 | 25,241 | ' |
Deferred tax liabilities | ' | ' | ' |
Forward foreign exchange contracts | -424 | -265 | ' |
Intangible assets | -900 | -819 | ' |
Net deferred tax assets | 7,345 | 24,157 | ' |
Current | 762 | 228 | ' |
Non-current | 6,583 | 23,929 | ' |
Additional disclosures | ' | ' | ' |
Net deferred tax asset recorded on timing difference related to equity compensation expense | 2,274 | 4,100 | ' |
Number of operating segments | 2 | ' | ' |
Period over which any benefit from the equity compensation deferred tax asset may be realized | '4 years | ' | ' |
Charges to APIC | -713 | -146 | 178 |
Tax benefit not recognized in APIC | 1,521 | 1,750 | ' |
U.K. | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 14,262 | 8,929 | ' |
Less: valuation allowance | -18,800 | ' | ' |
Additional disclosures | ' | ' | ' |
Valuation allowance against deferred tax assets recoded as income tax provision | 19,200 | ' | ' |
Valuation allowance against deferred tax assets recoded in Accumulated Other Comprehensive Income | 400 | ' | ' |
Previous performance period of subsidiary with which valuation allowance relates | '3 years | ' | ' |
U.S. | ' | ' | ' |
Provision (benefit) from income taxes | ' | ' | ' |
Current | 2,608 | 1,941 | 1,604 |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 4,235 | 5,263 | ' |
U.S. | nStor Technologies | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 4,235 | ' | ' |
Other jurisdictions | ' | ' | ' |
Provision (benefit) from income taxes | ' | ' | ' |
Current | 315 | 178 | 40 |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 2,256 | 2,131 | ' |
Singapore and Japan | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
Net operating loss carryforwards | 2,256 | ' | ' |
Additional disclosures | ' | ' | ' |
Number of locations from which future trading profits can be utilized to set off loss carryforwards | 2 | ' | ' |
Malaysia | ' | ' | ' |
Deferred tax assets: | ' | ' | ' |
Total deferred tax assets | $2,131 | ' | ' |
Additional disclosures | ' | ' | ' |
Percentage of tax expense to be recorded if the incentive is not renewed | 25.00% | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) | 12 Months Ended | 0 Months Ended | ||||
Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2010 | Apr. 01, 2015 | Apr. 01, 2014 | |
Forecast | Forecast | |||||
Notional U.K. rate applied for reconciliation between the provision for (benefit from) income taxes at the statutory rate and the effective tax rate | ' | ' | ' | ' | ' | ' |
Provision (benefit) for income taxes at corporation tax rate (as a percent) | 23.00% | 24.00% | 26.00% | ' | ' | ' |
Adjustment in respect of prior years (as a percent) | 17.60% | -8.40% | 1.80% | ' | ' | ' |
Other nondeductible expenses (as a percent) | 3.10% | 0.10% | -0.30% | ' | ' | ' |
Research and development tax credits (as a percent) | 94.70% | -26.20% | -13.60% | ' | ' | ' |
Effect of change in U.K. tax rate (as a percent) | -144.60% | 6.80% | 3.30% | ' | ' | ' |
Tax differentials on foreign income (as a percent) | -9.50% | -3.90% | -2.20% | ' | ' | ' |
Other valuation allowances (as a percent) | -975.80% | 1.40% | 2.20% | ' | ' | ' |
Movement in unrecognized tax benefits (as a percent) | 8.20% | 3.90% | -7.10% | ' | ' | ' |
Provision (benefit) for income taxes (as a percent) | -983.30% | -2.30% | 10.10% | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' |
Enacted U.K. corporation tax rate (as a percent) | 23.00% | 24.00% | 26.00% | 27.00% | 20.00% | 21.00% |
Rate at which deferred tax asset is calculated (as a percent) | 20.00% | ' | ' | ' | ' | ' |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Income Taxes | ' | ' | ' |
Income (loss) before income taxes | ($1,958) | $17,262 | $31,373 |
United Kingdom | ' | ' | ' |
Income Taxes | ' | ' | ' |
Income (loss) before income taxes | -18,329 | 7,536 | 17,937 |
U.S. | ' | ' | ' |
Income Taxes | ' | ' | ' |
Income (loss) before income taxes | 8,090 | 6,000 | 8,726 |
Malaysia | ' | ' | ' |
Income Taxes | ' | ' | ' |
Income (loss) before income taxes | 7,497 | 5,376 | 8,702 |
Income tax benefit attributable to exempted income tax status | 1,774 | 2,002 | 2,176 |
Income tax benefit attributable to exempted income tax status, diluted (in dollars per share) | $0.06 | $0.07 | $0.07 |
Other jurisdictions | ' | ' | ' |
Income Taxes | ' | ' | ' |
Income (loss) before income taxes | $784 | ($1,650) | ($3,992) |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 |
Summary of activity related to gross unrecognized tax benefits | ' | ' |
Balance of unrecognized tax benefits at the beginning of the period | $4,301 | $3,859 |
Gross increase for tax positions taken during a prior period | ' | 29 |
Gross decrease for tax positions taken during a prior period | -106 | -60 |
Gross increase for tax positions taken during the current period | 872 | 810 |
Settlements | -247 | -147 |
Reductions as a result of a lapse of the applicable statute of limitations | -1,080 | -190 |
Balance of unrecognized tax benefits at the end of the period | 3,740 | 4,301 |
Additional disclosures | ' | ' |
Unrecognized tax benefit that would affect the effective tax rate, if recognized | 2,801 | ' |
Unrecognized tax benefit that would not affect the effective tax rate, if recognized | 939 | ' |
Interest and penalties accrued in current tax | $200 | $150 |
Equity_compensation_plans_Deta
Equity compensation plans (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Equity compensation plans | ' | ' | ' |
Number of shares authorized for future grants under all share plans | 3,855 | ' | ' |
Equity Compensation | ' | ' | ' |
Total equity compensation | $3,158 | $6,602 | $7,127 |
Related income tax benefit | 632 | 1,518 | 1,782 |
Cost of revenues | ' | ' | ' |
Equity Compensation | ' | ' | ' |
Total equity compensation | 224 | 965 | 824 |
Research and development | ' | ' | ' |
Equity Compensation | ' | ' | ' |
Total equity compensation | 738 | 2,300 | 2,534 |
Selling, general and administrative | ' | ' | ' |
Equity Compensation | ' | ' | ' |
Total equity compensation | $2,196 | $3,337 | $3,769 |
Equity_compensation_plans_Deta1
Equity compensation plans (Details 2) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2010 |
RSU | ' | ' | ' | ' |
Vesting period | '4 years | ' | ' | ' |
Equity compensation expense | $3,158 | $6,602 | $7,127 | ' |
Restricted Stock Units | ' | ' | ' | ' |
RSU | ' | ' | ' | ' |
Vesting period | '4 years | ' | ' | ' |
Equity compensation expense | 2,543 | 6,186 | 6,837 | ' |
Non-vested awards outstanding at the beginning of the period (in shares) | 1,836 | 1,948 | 2,073 | ' |
Granted (in shares) | 154 | 1,118 | 980 | ' |
Vested (in shares) | -533 | -544 | -659 | ' |
Cancelled/forfeited (in shares) | -799 | -686 | -446 | ' |
Non-vested awards outstanding at the end of the period (in shares) | 658 | 1,836 | 1,948 | 2,073 |
Awards expected to vest (in shares) | 623 | ' | ' | ' |
Weighted-Average Grant Date Fair Value | ' | ' | ' | ' |
Non-vested awards outstanding at the beginning of the period (in dollars per share) | $14.03 | $12.09 | $11.32 | ' |
Granted (in dollars per share) | $10.75 | $13.64 | $13.04 | ' |
Vested (in dollars per share) | $11.74 | $11.27 | $11.74 | ' |
Cancelled/forfeited (in dollars per share) | $15.99 | $13.31 | $11.36 | ' |
Non-vested awards outstanding at the end of the period (in dollars per share) | $12.70 | $14.03 | $12.09 | $11.32 |
Awards expected to vest (in dollars per share) | $12.69 | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' |
Weighted-average remaining contractual term of awards outstanding at the end of the period | '8 months 12 days | '1 year 7 months 6 days | '1 year 7 months 6 days | '1 year 8 months 12 days |
Weighted-average remaining contractual term of awards expected to vest | '8 months 12 days | ' | ' | ' |
Aggregate intrinsic value of awards expected to vest (in dollars) | $6,432 | ' | ' | ' |
Equity_compensation_plans_Deta2
Equity compensation plans (Details 3) | 12 Months Ended | ||||||||||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2010 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 | Nov. 30, 2010 | Nov. 30, 2013 |
Sharesave Plan | Sharesave Plan | Sharesave Plan | Sharesave Plan | Sharesave Plan | Share Option Plans | Share Option Plans | Share Option Plans | Share Option Plans | ESPP | ESPP | ESPP | ESPP | ESPP | ||
Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | Options | ||
USD ($) | GBP (£) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | USD ($) | USD ($) | USD ($) | USD ($) | Maximum | ||
item | USD ($) | ||||||||||||||
Equity compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercisable at the end of the period | ' | '3 years | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of discount on market price of the options granted | ' | 15.00% | 15.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employees monthly contribution under plan (in pounds) | ' | ' | £ 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of plans | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' |
Expiration period | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Per share purchase price as percentage of fair market value of one common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 85.00% | ' | ' | ' | ' |
Payroll deductions per pay period per employee (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200 |
Fair value of shares available for purchase by employee in any annual period (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 |
Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | ' | 171 | 171 | 205 | 76 | ' | 444 | 526 | 832 | ' | 51 | 46 | 26 | ' | ' |
Granted (in shares) | ' | 28 | 28 | 28 | 190 | ' | 250 | ' | ' | ' | 26 | 51 | 46 | ' | ' |
Exercised (in shares) | ' | -5 | -5 | ' | ' | ' | ' | -71 | -301 | ' | ' | -39 | ' | ' | ' |
Canceled/forfeited (in shares) | ' | -11 | -11 | -62 | -61 | ' | -174 | -11 | -5 | ' | -51 | -7 | -26 | ' | ' |
Outstanding at the end of the period (in shares) | ' | 183 | 183 | 171 | 205 | 76 | 520 | 444 | 526 | ' | 26 | 51 | 46 | 26 | ' |
Exercisable (in shares) | ' | 0 | 0 | 0 | 0 | ' | 320 | 444 | 526 | ' | ' | ' | ' | ' | ' |
Weighted-Average Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | ' | $9.23 | ' | $8.82 | $15.66 | ' | $14.14 | $12.81 | $12.42 | ' | $12.36 | $8.54 | $13.80 | ' | ' |
Granted (in dollars per share) | ' | $9.88 | ' | $13.10 | $8.25 | ' | $10.84 | ' | ' | ' | $8.78 | $12.36 | $8.54 | ' | ' |
Exercised (in dollars per share) | ' | $8.25 | ' | ' | ' | ' | ' | $4.24 | $11.60 | ' | ' | $8.54 | ' | ' | ' |
Canceled/forfeited (in dollars per share) | ' | $16.01 | ' | $9.61 | $15.57 | ' | $10.16 | $14.78 | $13.60 | ' | $12.36 | $8.54 | $13.80 | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | $8.95 | ' | $9.23 | $8.82 | $15.66 | $12.83 | $14.14 | $12.81 | ' | $8.78 | $12.36 | $8.54 | $13.80 | ' |
Exercisable (in dollars per share) | ' | ' | ' | ' | ' | ' | $14.06 | $14.14 | $12.81 | ' | ' | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period | ' | '1 year 4 months 24 days | '1 year 4 months 24 days | '2 years | '2 years 10 months 24 days | '2 years 1 month 6 days | '4 years 3 months 18 days | ' | ' | ' | '4 months 24 days | '4 months 24 days | '4 months 24 days | '4 months 24 days | ' |
Options exercisable | ' | ' | ' | ' | ' | ' | '9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding at the end of the period (in dollars) | ' | 298,000 | ' | ' | ' | ' | 2,000 | ' | ' | ' | 40,000 | ' | ' | ' | ' |
Options exercisable (in dollars) | ' | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosure | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Closing market price (in dollars per share) | ' | ' | ' | ' | ' | ' | $9.37 | ' | ' | ' | ' | ' | ' | ' | ' |
Total intrinsic value (in dollars) | ' | ' | ' | ' | ' | ' | 0 | 693,000 | 731,000 | ' | ' | ' | ' | ' | ' |
Total fair value of options vested (in dollars) | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Total fair value of options forfeited (in dollars) | ' | ' | ' | ' | ' | ' | $1,102,000 | $88,000 | $22,000 | ' | ' | ' | ' | ' | ' |
Equity_compensation_plans_Deta3
Equity compensation plans (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Additional disclosure | ' | ' | ' |
Awards outstanding (in shares) | 1,352 | ' | ' |
Weighted average grant date fair value of awards (in dollars per share) | 12.16 | ' | ' |
Total unrecognized compensation cost (in dollars) | 2,460 | ' | ' |
Weighted average period for recognizing unrecognized compensation cost | '2 years 9 months 18 days | ' | ' |
Options | ' | ' | ' |
Weighted average assumptions used to estimate the fair value of options granted | ' | ' | ' |
Risk-free interest rate (as a percent) | 0.13% | 0.16% | 1.00% |
Dividend yield (as a percent) | 3.00% | 2.30% | 0.00% |
Volatility (as a percent) | 62.00% | 42.00% | 66.00% |
Expected option life | '4 years | '1 year 6 months | '1 year 6 months |
Share Option Plans | Options | ' | ' | ' |
Equity compensation plans | ' | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 520 | ' | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life | '4 years 3 months 18 days | ' | ' |
Options Outstanding, Weighted-Average Exercise Price Per Share | 12.83 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 320 | ' | ' |
Options Exercisable, Weighted-Average Exercise Price Per Share | 14.06 | ' | ' |
Share Option Plans | Options | $9.65-$10.84 | ' | ' | ' |
Equity compensation plans | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | 9.65 | ' | ' |
Exercise price, high end of range (in dollars per share) | 10.84 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 203 | ' | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life | '9 years 3 months 18 days | ' | ' |
Options Outstanding, Weighted-Average Exercise Price Per Share | 10.82 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 3 | ' | ' |
Options Exercisable, Weighted-Average Exercise Price Per Share | 9.65 | ' | ' |
Share Option Plans | Options | $13.51-$14.47 | ' | ' | ' |
Equity compensation plans | ' | ' | ' |
Exercise price, low end of range (in dollars per share) | 13.51 | ' | ' |
Exercise price, high end of range (in dollars per share) | 14.47 | ' | ' |
Options Outstanding, Number Outstanding (in shares) | 317 | ' | ' |
Options Outstanding, Weighted-Average Remaining Contractual Life | '1 year 1 month 6 days | ' | ' |
Options Outstanding, Weighted-Average Exercise Price Per Share | 14.11 | ' | ' |
Options Exercisable, Number Exercisable (in shares) | 317 | ' | ' |
Options Exercisable, Weighted-Average Exercise Price Per Share | 14.11 | ' | ' |
Equity_and_dividends_Details
Equity and dividends (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Apr. 30, 2011 | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
item | item | item | ||
Equity and dividends | ' | ' | ' | ' |
Number of classes of authorized share capital | ' | 3 | ' | ' |
Common shares, authorized shares | ' | 70,000 | 70,000 | ' |
Preference shares, authorized | ' | 1,000 | 1,000 | ' |
Deferred shares, authorized | ' | 1,200 | 1,200 | ' |
Common shares, par value (in dollars per share) | ' | $0.01 | $0.01 | ' |
Preference shares, par value (in dollars per share) | ' | $0.01 | $0.01 | ' |
Deferred shares, par value (in dollars per share) | ' | $0.01 | $0.01 | ' |
Common shares, outstanding shares | ' | 27,563 | 27,024 | ' |
Number of votes per common share | ' | 1 | ' | ' |
Minimum number of series of preference shares authorized for issuance | ' | 1 | ' | ' |
Preference shares, outstanding | ' | 0 | ' | ' |
Deferred shares, outstanding | ' | 0 | ' | ' |
Amount per share to be paid to holders of all other classes of shares then in issue for return of capital to deferred shareholders (in dollars per share) | ' | $1,000,000 | ' | ' |
Repurchases of Common Shares | ' | ' | ' | ' |
Additional authorized share repurchase amount under the plan (in dollars) | $50,000 | ' | ' | ' |
Shares repurchased under the plan | ' | 0 | 1,199 | 3,602 |
Aggregate cost of shares repurchased under plan (in dollars) | ' | ' | 13,600 | 32,290 |
Dividends | ' | ' | ' | ' |
Number of dividends declared to common shareholders | ' | 4 | 4 | 2 |
Dividends declared (in dollars per share) | ' | $2.30 | $0.29 | $0.11 |
Dividends declared (in dollars) | ' | 62,234 | 8,017 | 2,980 |
Dividends paid (in dollars) | ' | $62,234 | $9,538 | $1,459 |
Special cash dividend declared per common share (in dollars per share) | ' | $2 | ' | ' |
Employee_benefit_trust_Details
Employee benefit trust (Details) | Nov. 30, 2013 |
In Thousands, unless otherwise specified | |
Employee benefit trust | ' |
Number of shares held by trust | 95 |
Financial_Instruments_Details
Financial Instruments (Details) | 12 Months Ended | |
Nov. 30, 2013 | Nov. 30, 2012 | |
item | item | |
Financial Instruments | ' | ' |
Revenues denominated in U.S. Dollar (as a percent) | 90.00% | ' |
Forward foreign exchange contracts and options | ' | ' |
Financial Instruments | ' | ' |
Maximum maturity period of derivative contracts | '2 years | ' |
Summary of foreign currency derivative contract activity | ' | ' |
Number of contracts outstanding at the beginning of the period | 34 | 31 |
Number of contracts matured during the period | -34 | -31 |
Number of new contracts entered into during the period | 35 | 34 |
Number of contracts outstanding at the end of the period | 35 | 34 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (Forward foreign exchange contracts and options, Designated as hedging instruments, USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | ||
Forward foreign exchange contracts and options | Designated as hedging instruments | ' | ' |
Fair value of derivative instruments | ' | ' |
Asset derivatives | $2,288 | $1,313 |
Financial_Instruments_Details_1
Financial Instruments (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Effect of derivative instruments designated as cash flow hedges on the consolidated statement of operations | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Basic | ($21,211) | $17,660 | $28,297 |
Foreign exchange contracts | Cash Flow Hedging | ' | ' | ' |
Effect of derivative instruments designated as cash flow hedges on the consolidated statement of operations | ' | ' | ' |
Gain (Loss) Recognized | 1,699 | 1,313 | -1,539 |
Tax effect of amount recognized in AOCI (effective portion) | 0 | 288 | -632 |
Expected period for reclassification of unrealized amounts to earnings | '12 months | ' | ' |
Foreign exchange contracts | Cash Flow Hedging | Reclassification out of accumulated other comprehensive income | ' | ' | ' |
Effect of derivative instruments designated as cash flow hedges on the consolidated statement of operations | ' | ' | ' |
Net Income (Loss) Available to Common Stockholders, Basic | $1,313 | ($1,539) | $697 |
Financial_Instruments_Details_2
Financial Instruments (Details 4) (USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | ||
Derivatives between U.K. pound and U.S. dollar | ' | ' |
Financial Instruments | ' | ' |
Fair value of contracts-asset (liability) | $2,641 | $932 |
Average rate of contract | 1.56 | 1.57 |
Period end rate | 1.63 | 1.6 |
Derivatives between U.K. pound and U.S. dollar | Cash flow hedge | ' | ' |
Financial Instruments | ' | ' |
Nominal value of forward exchange contracts and options | 49,583 | 50,232 |
Derivatives between Malaysian ringgit and U.S. dollar | ' | ' |
Financial Instruments | ' | ' |
Fair value of contracts-asset (liability) | -352 | 381 |
Average rate of contract | 0.31 | 0.32 |
Period end rate | 0.31 | 0.33 |
Derivatives between Malaysian ringgit and U.S. dollar | Cash flow hedge | ' | ' |
Financial Instruments | ' | ' |
Nominal value of forward exchange contracts and options | $18,000 | $18,000 |
Financial_Instruments_Details_3
Financial Instruments (Details 5) (Recurring, Foreign exchange contracts, USD $) | Nov. 30, 2013 | Nov. 30, 2012 |
In Thousands, unless otherwise specified | ||
Total | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Asset position | $2,288 | $1,313 |
Level 2 | ' | ' |
Assets and liabilities measured at fair value | ' | ' |
Asset position | $2,288 | $1,313 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Future minimum lease payments under non-cancelable operating lease agreements | ' | ' | ' |
2014 | $5,465 | ' | ' |
2015 | 2,777 | ' | ' |
2016 | 1,782 | ' | ' |
2017 | 676 | ' | ' |
Total minimum payments required | 10,700 | ' | ' |
Rent expense | 6,869 | 8,518 | 8,221 |
Changes in the product warranty accrual | ' | ' | ' |
Balance at the beginning of the period | 4,006 | 4,928 | 5,585 |
Accruals for warranties issued during the year | 2,267 | 2,996 | 3,780 |
Settlements made during the year | -3,311 | -3,918 | -4,437 |
Balance at the end of the period | $2,962 | $4,006 | $4,928 |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Supplemental Cash Flow Information | ' | ' | ' |
Cash paid for income taxes | $3,066 | $2,032 | $2,572 |
Cash received from income tax refunds | $1,550 | $0 | $0 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
item | |||
Segment Information | ' | ' | ' |
Number of product segments | 2 | ' | ' |
Segment Information | ' | ' | ' |
Revenues: | $814,318 | $1,158,898 | $1,448,476 |
Gross profit: | 171,081 | 195,836 | 222,072 |
Non cash equity compensation | -3,158 | -6,602 | -7,127 |
Depreciation and amortization: | 17,817 | 21,090 | 23,581 |
Operating segment | ' | ' | ' |
Segment Information | ' | ' | ' |
Gross profit: | 171,305 | 196,801 | 222,896 |
Depreciation and amortization: | 13,298 | 16,748 | 19,180 |
Unallocated | ' | ' | ' |
Segment Information | ' | ' | ' |
Non cash equity compensation | -224 | -965 | -824 |
Enterprise Data Storage Solutions | ' | ' | ' |
Segment Information | ' | ' | ' |
Revenues: | 655,184 | 974,043 | 1,324,547 |
Gross profit: | 122,212 | 155,326 | 212,654 |
Depreciation and amortization: | 10,373 | 9,799 | 10,326 |
HDD Capital Equipment | ' | ' | ' |
Segment Information | ' | ' | ' |
Revenues: | 159,134 | 184,855 | 123,929 |
Gross profit: | 49,093 | 41,475 | 10,242 |
Depreciation and amortization: | 2,925 | 6,949 | 8,854 |
Corporate | ' | ' | ' |
Segment Information | ' | ' | ' |
Depreciation and amortization: | $4,519 | $4,342 | $4,401 |
Segment_Information_Details_2
Segment Information (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Segment information | ' | ' | ' |
Revenues (based on location at which the sale originated): | $814,318 | $1,158,898 | $1,448,476 |
Long-lived assets (all non-current assets): | 55,869 | 55,169 | 63,343 |
Americas | ' | ' | ' |
Segment information | ' | ' | ' |
Revenues (based on location at which the sale originated): | 355,340 | 533,580 | 770,249 |
Long-lived assets (all non-current assets): | 8,475 | 8,703 | 8,967 |
United Kingdom | ' | ' | ' |
Segment information | ' | ' | ' |
Revenues (based on location at which the sale originated): | 133,618 | 235,352 | 248,296 |
Long-lived assets (all non-current assets): | 27,706 | 28,891 | 33,695 |
Malaysia | ' | ' | ' |
Segment information | ' | ' | ' |
Revenues (based on location at which the sale originated): | 322,631 | 388,780 | 428,597 |
Long-lived assets (all non-current assets): | 15,554 | 16,659 | 19,618 |
Other | ' | ' | ' |
Segment information | ' | ' | ' |
Revenues (based on location at which the sale originated): | 2,729 | 1,186 | 1,334 |
Long-lived assets (all non-current assets): | $4,134 | $916 | $1,063 |
Subsequent_Events_Details
Subsequent Events (Details) (Xyratex Ltd, USD $) | 12 Months Ended | 0 Months Ended |
Nov. 30, 2013 | Dec. 23, 2013 | |
Subsequent events | ||
Subsequent events | ' | ' |
Share price (in dollars per share) | ' | $13.25 |
Purchase price | ' | $376,000,000 |
Adjustments in financial statements for effects on the business of definitive agreement | $0 | ' |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Nov. 30, 2013 | Nov. 30, 2012 | Nov. 30, 2011 |
Deferred tax valuation allowance | ' | ' | ' |
Valuation And Qualifying Accounts And Reserves | ' | ' | ' |
Balance at beginning of period | $2,131 | $4,751 | $1,009 |
Charged to other accounts | 18,925 | -2,620 | 3,742 |
Balance at end of period | 21,056 | 2,131 | 4,751 |
Warranty provision | ' | ' | ' |
Valuation And Qualifying Accounts And Reserves | ' | ' | ' |
Balance at beginning of period | 4,006 | 4,928 | 5,585 |
Charged to costs and expenses | 2,267 | 2,996 | 3,780 |
Deductions | -3,311 | -3,918 | -4,437 |
Balance at end of period | 2,962 | 4,006 | 4,928 |
Allowance for doubtful accounts | ' | ' | ' |
Valuation And Qualifying Accounts And Reserves | ' | ' | ' |
Balance at beginning of period | ' | 148 | 310 |
Charged to costs and expenses | ' | 12 | ' |
Deductions | ' | ' | -162 |
Balance at end of period | $160 | $160 | $148 |