Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 24, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MAXLINEAR INC | |
Trading Symbol | MXL | |
Entity Central Index Key | 0001288469 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 70,603,629 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 71,102 | $ 73,142 |
Short-term restricted cash | 347 | 645 |
Accounts receivable, net | 59,639 | 59,491 |
Inventory | 42,753 | 41,738 |
Prepaid expenses and other current assets | 5,479 | 5,595 |
Total current assets | 179,320 | 180,611 |
Long-term restricted cash | 418 | 404 |
Property and equipment, net | 16,987 | 18,404 |
Leased right-of-use assets | 21,543 | 0 |
Intangible assets, net | 230,634 | 244,900 |
Goodwill | 238,330 | 238,330 |
Deferred tax assets | 58,067 | 51,518 |
Other long-term assets | 3,583 | 4,664 |
Total assets | 748,882 | 738,831 |
Current liabilities: | ||
Accounts payable | 13,306 | 15,588 |
Accrued price protection liability | 18,943 | 16,454 |
Accrued expenses and other current liabilities | 32,707 | 23,520 |
Accrued compensation | 8,527 | 15,005 |
Total current liabilities | 73,483 | 70,567 |
Long-term lease liabilities | 18,132 | 4,097 |
Long-term debt | 241,044 | 255,757 |
Other long-term liabilities | 8,019 | 8,474 |
Total liabilities | 340,678 | 338,895 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value; 25,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value; 550,000 shares authorized, 70,532 shares issued and outstanding at March 31, 2019 and 550,000 shares authorized, 69,551 shares issued and outstanding December 31, 2018, respectively | 7 | 7 |
Additional paid-in capital | 506,649 | 493,287 |
Accumulated other comprehensive income | 297 | 272 |
Accumulated deficit | (98,749) | (93,630) |
Total stockholders’ equity | 408,204 | 399,936 |
Total liabilities and stockholders’ equity | $ 748,882 | $ 738,831 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares shares in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (shares) | 25,000 | 25,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (shares) | 550,000 | 550,000 |
Common stock, shares issued (shares) | 70,532 | 69,551 |
Common stock, shares outstanding (shares) | 70,532 | 69,551 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net revenue | $ 84,635 | $ 110,827 |
Cost of net revenue | 39,558 | 48,159 |
Gross profit | 45,077 | 62,668 |
Operating expenses: | ||
Research and development | 27,399 | 31,121 |
Selling, general and administrative | 23,591 | 27,117 |
Restructuring charges | 1,917 | 0 |
Total operating expenses | 52,907 | 58,238 |
Income (loss) from operations | (7,830) | 4,430 |
Interest income | 147 | 18 |
Interest expense | (2,975) | (3,894) |
Other income (expense), net | (655) | (571) |
Total interest and other income (expense), net | (3,483) | (4,447) |
Loss before income taxes | (11,313) | (17) |
Income tax benefit | (6,462) | (1,864) |
Net income (loss) | $ (4,851) | $ 1,847 |
Net income (loss) per share: | ||
Basic (usd per share) | $ (0.07) | $ 0.03 |
Diluted (usd per share) | $ (0.07) | $ 0.03 |
Shares used to compute net income (loss) per share: | ||
Basic (shares) | 69,968 | 67,674 |
Diluted (shares) | 69,968 | 70,440 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (4,851) | $ 1,847 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustments, net of tax benefit of $1 and $29 for the three months ended March 30, 2019 and 2018, respectively | 513 | 393 |
Unrealized gain (loss) on interest rate swap, net of tax benefit of $130 and tax expense of $188 for the three months ended March 31, 2019 and 2018, respectively | (488) | 1,196 |
Other comprehensive income | 25 | 1,589 |
Total comprehensive income (loss) | $ (4,826) | $ 3,436 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax (expense) benefit | $ 1 | $ 29 |
Unrealized gain(loss) on interest rate swap, tax (expense) benefit | $ 130 | $ (188) |
Consolidated Statement of Stock
Consolidated Statement of Stockholder's Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Accumulated Deficit [Member] |
Shares issued, beginning of period (in shares) at Dec. 31, 2017 | 67,400 | ||||
Total stockholders' equity, beginning of period at Dec. 31, 2017 | $ 387,424 | $ 7 | $ 455,497 | $ 1,039 | $ (69,119) |
Common Stock Issued Pursuant To Equity Awards Net Shares | 691 | ||||
Common stock issued pursuant to equity awards, net, value | 5,586 | 5,586 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 8,473 | 8,473 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 1,529 | 1,529 | |||
Other Comprehensive Income (Loss), Net of Tax | 1,589 | 1,589 | |||
Net income (loss) | 1,847 | 1,847 | |||
Total stockholders' equity, end of period at Mar. 31, 2018 | 406,448 | $ 7 | 469,556 | 2,628 | (65,743) |
Shares issued, end of period (in shares) at Mar. 31, 2018 | 68,091 | ||||
Shares issued, beginning of period (in shares) at Dec. 31, 2018 | 69,551 | ||||
Total stockholders' equity, beginning of period at Dec. 31, 2018 | 399,936 | $ 7 | 493,287 | 272 | (93,630) |
Common Stock Issued Pursuant To Equity Awards Net Shares | 981 | ||||
Common stock issued pursuant to equity awards, net, value | 5,615 | 5,615 | |||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 7,747 | 7,747 | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (268) | (268) | |||
Other Comprehensive Income (Loss), Net of Tax | 25 | 25 | |||
Net income (loss) | (4,851) | (4,851) | |||
Total stockholders' equity, end of period at Mar. 31, 2019 | $ 408,204 | $ 7 | $ 506,649 | $ 297 | $ (98,749) |
Shares issued, end of period (in shares) at Mar. 31, 2019 | 70,532 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income (loss) | $ (4,851) | $ 1,847 |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ||
Amortization and depreciation | 16,863 | 20,084 |
Amortization of debt issuance costs and accretion of discount on debt and leases | 402 | 287 |
Stock-based compensation | 7,747 | 8,473 |
Deferred income taxes | (6,476) | (2,332) |
Loss on disposal of property and equipment | 35 | 0 |
Impairment of leasehold improvements | 1,442 | 0 |
Impairment of long-lived assets | 2,182 | 0 |
Gain on extinguishment of lease liabilities | (2,880) | 0 |
Loss on foreign currency | 567 | 471 |
Excess tax benefits on stock-based awards | (1,737) | (797) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (142) | (24,533) |
Inventory | (1,015) | 7,676 |
Prepaid expenses and other assets | 604 | 1,003 |
Leased right-of-use assets | 645 | 0 |
Accounts payable, accrued expenses and other current liabilities | 1,921 | (421) |
Accrued compensation | 893 | 2,502 |
Deferred revenue and deferred profit | 0 | (138) |
Accrued price protection liability | 2,489 | (1,359) |
Lease liabilities | (2,125) | 0 |
Other long-term liabilities | (519) | (792) |
Net cash provided by operating activities | 16,045 | 11,971 |
Investing Activities | ||
Purchases of property and equipment | (2,155) | (2,381) |
Net cash used in investing activities | (2,155) | (2,381) |
Financing Activities | ||
Repayment of debt | (15,000) | (25,000) |
Net proceeds from issuance of common stock | 2,628 | 980 |
Minimum tax withholding paid on behalf of employees for restricted stock units | (4,419) | (2,391) |
Net cash used in financing activities | (16,791) | (26,411) |
Effect of exchange rate changes on cash and cash equivalents | 577 | (258) |
Decrease in cash, cash equivalents and restricted cash | (2,324) | (17,079) |
Cash, cash equivalents and restricted cash at beginning of period | 74,191 | 74,412 |
Cash, cash equivalents and restricted cash at end of period | 71,867 | 57,333 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 3,099 | 3,546 |
Cash paid for income taxes | 872 | 203 |
Supplemental disclosures of non-cash activities: | ||
Issuance of shares for payment of bonuses | $ 7,406 | $ 6,997 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Description of Business MaxLinear, Inc. was incorporated in Delaware in September 2003. MaxLinear, Inc., together with its wholly owned subsidiaries, collectively referred to as MaxLinear, or the Company, is a provider of radio-frequency, or RF, high-performance analog, and mixed-signal communications system-on-chip solutions for the connected home, wired and wireless infrastructure, and industrial and multi-market applications. MaxLinear's customers include electronics distributors, module makers, original equipment manufacturers, or OEMs, and original design manufacturers, or ODMs, who incorporate the Company’s products in a wide range of electronic devices, including cable DOCSIS broadband modems and gateways, wireline connectivity devices for in-home networking applications, RF transceivers and modems for wireless carrier access and backhaul infrastructure, fiber-optic modules for data center, metro, and long-haul transport networks, video set-top boxes and gateways, hybrid analog and digital televisions, direct broadcast satellite outdoor and indoor units, and power management and interface products used in these and a range of other markets. The Company is a fabless integrated circuit design company whose products integrate all or a substantial portion of a broadband communication system. Basis of Presentation and Principles of Consolidation The accompanying unaudited consolidated financial statements include the accounts of MaxLinear, Inc. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. All intercompany transactions and investments have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. Such reclassifications include the separate presentation of long-term lease liabilities on the consolidated balance sheets. In the opinion of management, the Company’s unaudited consolidated interim financial statements contain adjustments, including normal recurring accruals necessary to present fairly the Company’s consolidated financial position, results of operations, comprehensive income (loss), stockholders’ equity, and cash flows. The consolidated balance sheet as of December 31, 2018 was derived from the Company’s audited consolidated financial statements at that date. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission, or the SEC, on February 5, 2019 , or the Annual Report. Interim results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes to unaudited consolidated financial statements. Actual results could differ from those estimates. Summary of Significant Accounting Policies Refer to the Company’s Annual Report for a summary of significant accounting policies. On January 1, 2019, the Company adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 842, Leases , or ASC 842, using the modified retrospective transition method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019, and accordingly, modified its policy on accounting for leases as stated below . As described under “Recently Adopted Accounting Pronouncements,” below, the primary impact of adopting ASC 842 for the Company was the recognition in the consolidated balance sheet of certain lease-related assets and liabilities for operating leases with terms longer than 12 months. Such amounts were not previously accounted for in the Company's consolidated balance sheets. There have been no other material changes to the Company's significant accounting policies during the three months ended March 31, 2019 . Leases The Company’s leases primarily consist of facility leases which are classified as operating leases. The Company assesses whether an arrangement contains a lease at inception. The Company recognizes a lease liability to make contractual payments under all leases with terms greater than twelve months and a corresponding right-of-use asset, representing its right to use the underlying asset for the lease term. The lease liability is initially measured at the present value of the lease payments over the lease term using the collateralized incremental borrowing rate since the implicit rate is unknown. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that the Company will exercise such an option. The right-of-use asset is initially measured as the contractual lease liability plus any initial direct costs and prepaid lease payments made, less any lease incentives. Upon adoption of ASC 842 on January 1, 2019, the carrying value of lease-related restructuring liability for certain restructured leases existing at that date, has been offset against the related right-of-use asset. Lease expense is recognized on a straight-line basis over the lease term. On January 1, 2019, the Company adopted ASC 842 using the modified retrospective transition method with a cumulative adjustment to accumulated deficit at the beginning of the period of adoption. Upon adoption, the Company elected certain practical expedients and accordingly has (1) carried forward its prior assessments of (a) whether existing contracts on the January 1, 2019 adoption date contain leases, (b) classification of leases as operating or financing and (c) initial direct costs for existing leases and (2) considered hindsight in determining the lease term and assessing impairment of the right-of-use-asset. In addition, the Company used a portfolio approach for its facility leases when making judgments and estimates, such as the discount rate (Note 12 ). Leased right-of-use assets are subject to impairment testing as a long-lived asset at the asset-group level. The Company monitors its long-lived assets for indicators of impairment. As the Company's leased right-of-use assets relate to facility leases, early abandonment of all or part of facility as part of a restructuring plan is typically an indicator of impairment. If impairment indicators are present, the Company tests whether the carrying amount of the leased right-of-use asset is recoverable including consideration of sublease income, and if not recoverable, measures impairment loss for the right-of-use asset or asset group. Impairment charges on leased right-of-use assets are included in restructuring charges in the statement of operations (Note 3 ). Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this update require a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset. For leases less than twelve months, an entity is permitted to make an accounting policy election by class of underlying asset not to recognize right-of-use assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The Company made this election. Also, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , to provide an additional transition method. An entity can elect not to present comparative financial information under Topic 842 if it recognizes a cumulative-effect adjustment to retained earnings upon adoption. The Company also made this election. Further, in January 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements , which clarified that post-adoption interim transition disclosures normally required in the year of adoption for the effect of a change in accounting principle on an entity’s financial statements are not required for the adoption of ASC 842. The amendments in these updates are effective for the Company for fiscal years beginning with 2019, including interim periods within those years, with early adoption permitted. The Company has completed its assessment of the impact of the adoption of ASC 842. Upon adoption, the Company recognized approximately $24.8 million of right-of-use assets and a net increase of $25.1 million in lease-related liabilities at January 1, 2019. Also, the impact of the adoption of ASC 842 on the Company’s accumulated deficit and deferred tax assets at January 1, 2019 was not material. Lastly, the impact of the adoption of ASC 842 on the Company's consolidated results of operations for the year ending December 31, 2019 is not expected to be material. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , to clarify on how to apply certain aspects of the new lease accounting standard. The amendments in this update, among other things, better articulates the requirement for a lessee’s reassessment of lease classification as of the effective date of a modification, clarifies that a change to an index or rate for variable lease payments does not constitute a resolution of a contingency that would result in the remeasurement of lease payments, and requires entities that apply Topic 842 retrospectively to each reporting period and do not adopt the practical expedients to write off any prior unamortized initial direct costs that do not meet the definition under Topic 842 to equity. The amendments in this update have the same effective date and transition requirements as the new lease standard summarized above. The Company has disclosed the impact of adoption of Topic 842 on the Company’s consolidated financial position and results of operations as stated above. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements , to clarify the Codification and prevent unintended application of the guidance. An amendment to ASC 718-740, Compensation—Stock Compensation—Income Taxes , clarifies that excess tax benefits should be recognized in the period in which the amount of the deduction is determined. The transition and effective date guidance is based on the facts and circumstances of each amendment. The amendment identified above became effective for the Company beginning with fiscal year 2019. The adoption of the amendments in this update in the three months ended March 31, 2019 did not have a material impact on the Company's consolidated financial position and results of operations. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) , which is intended to improve accounting for hedging activities by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update became effective for the Company for fiscal years beginning with fiscal year 2019, including interim periods within those years, with early adoption permitted in any interim period. The amendments in this update were required to be applied prospectively. The adoption of the amendments in this update in the three months ended March 31, 2019 did not have a material impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this update are effective for the Company beginning with fiscal year 2020, including interim periods, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of the amendments in this update is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement , to improve the fair value measurement reporting of financial instruments. The amendments in this update require, among other things, added disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update eliminate, among other things, disclosure of the reasons for and amounts of transfers between Level 1 and Level 2 for assets and liabilities that are measured at fair value on a recurring basis and an entity's valuation processes for Level 3 fair value measurements. The amendments in this update will be effective for the Company beginning with fiscal year 2020, with early adoption permitted. Retrospective application is required for all amendments in this update except the added disclosures, which should be applied prospectively. The adoption of the amendments in this update is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-15, Intangibles- Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , to provide additional guidance on the accounting for costs of implementing cloud computing arrangements that are service contracts. The amendments in this update require the capitalization of implementation costs during the application development stage of such hosting arrangements and amortization of the expense over the term of the arrangement including any option to extend reasonably certain to be exercised or option to terminate reasonably certain not to be exercised. Capitalized implementation costs and amortization thereof are also required to be classified in the same line item in the statements of financial position, operations and cash flows associated with the hosting service fees. The amendments in this update will be effective for the Company beginning with fiscal year 2020, with early adoption permitted. Entities may select retrospective or prospective application to all implementation costs incurred after the adoption date. The adoption of the amendments in this update is not expected to have a material impact on the Company’s consolidated financial position and results of operations. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic earnings per share, or EPS, is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive. In periods in which the Company has a net loss, dilutive common stock equivalents are excluded from the calculation of diluted EPS. The table below presents the computation of basic and diluted EPS: Three Months Ended March 31, 2019 2018 (in thousands, except per share amounts) Numerator: Net income (loss) $ (4,851 ) $ 1,847 Denominator: Weighted average common shares outstanding—basic 69,968 67,674 Dilutive common stock equivalents — 2,766 Weighted average common shares outstanding—diluted 69,968 70,440 Net income (loss) per share: Basic $ (0.07 ) $ 0.03 Diluted $ (0.07 ) $ 0.03 For the three months ended March 31, 2019 , the Company incurred a net loss and accordingly excluded common stock equivalents for outstanding stock-based awards, which represented all potentially dilutive securities, of 2.9 million from the calculation of diluted net loss per share due to their anti-dilutive nature. For the three months ended March 31, 2018 , the Company excluded 1.0 million of common stock equivalents for outstanding stock-based awards from the calculation of diluted net income per share due to their anti-dilutive nature. |
Restructuring Activity
Restructuring Activity | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Activity | Restructuring Activity From time to time, the Company approves and implements restructuring plans as a result of acquisitions, internal resource alignment, and cost saving measures. Such restructuring plans include vacating certain leased facilities, terminating employees, and cancellation of contracts. The following table presents the activity related to the restructuring plans, which is included in restructuring charges in the consolidated statements of operations : Three Months Ended March 31, 2019 2018 (in thousands) Employee separation expenses $ 472 $ — Lease related charges 1,345 — Other 100 — $ 1,917 $ — Lease-related charges for the three months ended March 31, 2019 primarily related to exiting certain facilities and includes the impairment of long-lived assets (right-of-use assets) and leasehold improvements of $2.2 million and $1.4 million , respectively, partially offset by a gain on the extinguishment of lease liabilities of $2.9 million following the release from such liability by the landlord. The Company does not expect to incur additional material costs related to current restructuring plans. The following table presents a roll-forward of the Company's restructuring liability for the three months ended March 31, 2019 . The restructuring liability is included in accrued expenses and other current liabilities in the consolidated balance sheets. Employee Separation Expenses Lease Related Charges Other Total (in thousands) Liability as of December 31, 2018 $ 409 $ 1,490 $ 47 $ 1,946 Restructuring charges 472 1,345 100 1,917 Transfer to right-of-use asset — (299 ) — (299 ) Cash payments (662 ) (1,445 ) (59 ) (2,166 ) Non-cash charges — 12 — 12 Liability as of March 31, 2019 $ 219 $ 1,103 $ 88 $ 1,410 Remaining lease related charges as of March 31, 2019 primarily consist of common area maintenance obligations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. The fair values of net tangible assets and intangible assets acquired are based upon preliminary valuations and the Company's estimates and assumptions are subject to change within the measurement period (potentially up to one year from the acquisition date). During the three months ended March 31, 2019 , there were no changes in the carrying amount of goodwill. The Company performs an annual goodwill impairment assessment on October 31st each year, using a two-step quantitative assessment. Step one is the identification of potential impairment. This involves comparing the fair value of each reporting unit, which the Company has determined to be the entity itself, with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds the carrying amount, the goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the impairment test is performed to measure the amount of impairment loss, if any. In addition to its annual review, the Company performs a test of impairment when indicators of impairment are present. During the three months ended March 31, 2019 and 2018 , no indications of impairment of the Company's goodwill balances were identified and, as a result, no goodwill impairment was recognized. Acquired Intangibles Finite-lived Intangible Assets The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and other purchases: March 31, 2019 December 31, 2018 Weighted Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount (in thousands) Licensed technology 3.7 $ 2,070 $ (1,265 ) $ 805 $ 2,070 $ (1,130 ) $ 940 Developed technology 6.9 240,461 (83,055 ) 157,406 238,961 (74,630 ) 164,331 Trademarks and trade names 6.1 13,800 (4,816 ) 8,984 13,800 (4,252 ) 9,548 Customer relationships 4.6 121,100 (60,697 ) 60,403 121,100 (55,647 ) 65,453 Non-compete covenants 3.0 1,100 (964 ) 136 1,100 (872 ) 228 6.1 $ 378,531 $ (150,797 ) $ 227,734 $ 377,031 $ (136,531 ) $ 240,500 The following table sets forth amortization expense associated with finite-lived intangible assets, which is included in the consolidated statements of operations as follows: Three Months Ended March 31, 2019 2018 (in thousands) Cost of net revenue $ 8,434 $ 8,978 Research and development 34 42 Selling, general and administrative 5,798 7,994 $ 14,266 $ 17,014 Amortization of finite-lived intangible assets in cost of net revenue in the consolidated statements of operations results primarily from acquired developed technology. The following table sets forth the activity related to finite-lived intangible assets: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 240,500 $ 310,645 Transfers to developed technology from IPR&D 1,500 — Amortization (14,266 ) (17,014 ) Ending balance $ 227,734 $ 293,631 The Company regularly reviews the carrying amount of its long-lived assets subject to depreciation and amortization, as well as the related useful lives, to determine whether indicators of impairment may exist that warrant adjustments to carrying values or estimated useful lives. An impairment loss is recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset. Should impairment exist, the impairment loss is measured based on the excess of the carrying amount of the asset over the asset’s fair value. During the three months ended March 31, 2019 and 2018 , no impairment losses related to finite-lived intangible assets were recognized. The following table presents future amortization of the Company’s finite-lived intangible assets at March 31, 2019 : Amount (in thousands) 2019 (9 months) $ 42,715 2020 56,168 2021 55,385 2022 37,855 2023 25,660 Thereafter 9,951 Total $ 227,734 Indefinite-lived Intangible Assets Indefinite-lived intangible assets consist entirely of acquired in-process research and development technology, or IPR&D. The following table sets forth the Company’s activities related to the indefinite-lived intangible assets: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 4,400 $ 4,400 Transfers to developed technology from IPR&D (1,500 ) — Ending balance $ 2,900 $ 4,400 The Company performs its annual assessment of indefinite-lived intangible assets on October 31 each year or more frequently if events or changes in circumstances indicate that the asset might be impaired utilizing a qualitative test as a precursor to the quantitative test comparing the fair value of the assets with their carrying amount. Based on the qualitative test, if it is more likely than not that indicators of impairment exists, the Company proceeds to perform a quantitative analysis. During the three months ended March 31, 2019 and 2018 , no indicators of impairment were identified and, as a result, no IPR&D impairment losses were recorded. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments The composition of financial instruments is as follows: March 31, 2019 December 31, 2018 (in thousands) Assets Interest rate swap $ 1,005 $ 1,623 The fair value of the Company’s financial instrument is the amount that would be received in an asset sale or paid to transfer a liability in an orderly transaction between unaffiliated market participants and is recorded using a hierarchical disclosure framework based upon the level of subjectivity of the inputs used in measuring assets and liabilities. The levels are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The Company classifies its financial instrument within Level 2 of the fair value hierarchy on the basis of models utilizing market observable inputs. The interest rate swap has been valued on the basis of valuations provided by third-party pricing services, as derived from standard valuation or pricing models. Market-based observable inputs for the interest rate swap include one month LIBOR-based yield curves over the term of the swap. The Company reviews third-party pricing provider models, key inputs and assumptions and understands the pricing processes at its third-party providers in determining the overall reasonableness of the fair value of its Level 2 financial instruments. The Company also considers the risk of nonperformance by assessing the swap counterparty's credit risk in the estimate of fair value of the interest rate swap. As of March 31, 2019 and December 31, 2018 , the Company has not made any adjustments to the valuations obtained from its third-party pricing providers. The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis: Fair Value Measurements Balance Quoted Prices Significant Other Significant (in thousands) Assets Interest rate swap, March 31, 2019 $ 1,005 $ — $ 1,005 $ — Interest rate swap, December 31, 2018 $ 1,623 $ — $ 1,623 $ — The following table summarizes activity for the interest rate swap: Three Months Ended March 31, March 31, (in thousands) Interest rate swap asset Beginning balance $ 1,623 $ 734 Unrealized gain (loss) recognized in other comprehensive income (loss) (618 ) 1,384 Ending balance $ 1,005 $ 2,118 There were no transfers between Level 1, Level 2 or Level 3 financial instruments in the three months ended March 31, 2019 and 2018 . Financial Instruments Not Recorded at Fair Value on a Recurring Basis Some of the Company’s financial instruments are not measured at fair value on a recurring basis but are recorded at amounts that approximate fair value due to their liquid or short-term nature. Such financial assets and financial liabilities include: cash and cash equivalents, restricted cash, net receivables, certain other assets, accounts payable, accrued price protection liability, accrued expenses, accrued compensation costs, and other current liabilities. The Company’s long-term debt is not recorded at fair value on a recurring basis, but is measured at fair value for disclosure purposes (Note 7 ). |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Details | Balance Sheet Details Cash, cash equivalents and restricted cash consist of the following: March 31, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 71,102 $ 73,142 Short-term restricted cash 347 645 Long-term restricted cash 418 404 Total cash, cash equivalents and restricted cash $ 71,867 $ 74,191 As of March 31, 2019 and December 31, 2018 , cash and cash equivalents included $20.0 million and $0 of money market funds, respectively. As of March 31, 2019 and December 31, 2018 , the Company has restricted cash of $0.8 million and $1.0 million , respectively. The cash is restricted in connection with guarantees for certain import duties and office leases. Inventory consists of the following: March 31, 2019 December 31, 2018 (in thousands) Work-in-process $ 15,365 $ 17,618 Finished goods 27,388 24,120 $ 42,753 $ 41,738 Property and equipment, net consists of the following: Useful Life March 31, 2019 December 31, 2018 (in thousands) Furniture and fixtures 5 $ 2,183 $ 2,020 Machinery and equipment 3-5 34,710 34,225 Masks and production equipment 2-5 12,645 12,645 Software 3 5,677 5,675 Leasehold improvements 1-5 16,199 17,493 Construction in progress N/A 360 133 71,774 72,191 Less accumulated depreciation and amortization (54,787 ) (53,787 ) $ 16,987 $ 18,404 Depreciation expense for the three months ended March 31, 2019 and 2018 was $2.1 million and $3.1 million , respectively. Accrued price protection liability consists of the following activity: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 16,454 $ 21,571 Charged as a reduction of revenue 10,508 10,744 Reversal of unclaimed rebates — (2,367 ) Payments (8,019 ) (9,736 ) Ending balance $ 18,943 $ 20,212 Accrued expenses and other current liabilities consist of the following: March 31, 2019 December 31, 2018 (in thousands) Accrued technology license payments $ 4,500 $ 4,500 Accrued professional fees 1,428 1,270 Accrued engineering and production costs 2,590 646 Accrued restructuring 1,410 1,946 Accrued royalty 923 980 Short-term lease liabilities 8,033 1,214 Accrued customer credits 556 1,204 Income tax liability 3,846 1,642 Customer contract liabilities 71 71 Accrued obligations to customers for price adjustments 7,317 7,558 Accrued obligations to customers for stock rotation rights 1,980 1,494 Other 53 995 $ 32,707 $ 23,520 The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component: Cumulative Translation Adjustments Interest Rate Hedge Total (in thousands) Balance at December 31, 2018 $ (907 ) $ 1,179 $ 272 Current period other comprehensive income (loss) 513 (488 ) 25 Balance at March 31, 2019 $ (394 ) $ 691 $ 297 |
Debt and Interest Rate Swap
Debt and Interest Rate Swap | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Interest Rate Swap | Debt and Interest Rate Swap Debt The carrying amount of the Company's long-term debt consists of the following: March 31, December 31, (in thousands) Principal $ 247,000 $ 262,000 Less: Unamortized debt discount (1,555 ) (1,630 ) Unamortized debt issuance costs (4,401 ) (4,613 ) Net carrying amount of long-term debt 241,044 255,757 Less: current portion of long-term debt — — Long-term debt, non-current portion $ 241,044 $ 255,757 On May 12, 2017, the Company entered into a credit agreement with certain lenders and a collateral agent in connection with the acquisition of Exar Corporation. The credit agreement provides for an initial secured term B loan facility, or the “Initial Term Loan,” in an aggregate principal amount of $425.0 million . The credit agreement permits the Company to request incremental loans in an aggregate principal amount not to exceed the sum of $160.0 million (subject to adjustments for any voluntary prepayments), plus an unlimited amount that is subject to pro forma compliance with certain secured leverage ratio and total leverage ratio tests. Incremental loans are subject to certain additional conditions, including obtaining additional commitments from the lenders then party to the credit agreement or new lenders. Loans under the credit agreement bear interest, at the Company’s option, at a rate equal to either (i) a base rate equal to the highest of (x) the federal funds rate, plus 0.50% , (y) the prime rate then in effect and (z) an adjusted LIBOR rate determined on the basis of a one- three- or six-month interest period, plus 1.0% or (ii) an adjusted LIBOR rate, subject to a floor of 0.75% , in each case, plus an applicable margin of 2.50% in the case of LIBOR rate loans and 1.50% in the case of base rate loans. Commencing on September 30, 2017, the Initial Term Loan amortizes in equal quarterly installments equal to 0.25% of the original principal amount of the Initial Term Loan, with the balance payable on the maturity date. The Initial Term Loan has a term of seven years and will mature on May 12, 2024, at which time all outstanding principal and accrued and unpaid interest on the Initial Term Loan is due. The Company is also required to pay fees customary for a credit facility of this size and type. The Company is required to make mandatory prepayments of the outstanding principal amount of term loans under the credit agreement with the net cash proceeds from the disposition of certain assets and the receipt of insurance proceeds upon certain casualty and condemnation events, in each case, to the extent not reinvested within a specified time period, from excess cash flow beyond stated threshold amounts, and from the incurrence of certain indebtedness. The Company has the right to prepay its term loans under the credit agreement, in whole or in part, at any time without premium or penalty, subject to certain limitations and a 1.0% soft call premium applicable during the first six months of the loan term. The Company exercised its right to prepay and made aggregate prepayments of principal of $178.0 million from origination through March 31, 2019 . The Company’s obligations under the credit agreement are required to be guaranteed by certain of its domestic subsidiaries meeting materiality thresholds set forth in the credit agreement. Such obligations, including the guaranties, are secured by substantially all of the assets of the Company and the subsidiary guarantors pursuant to a security agreement with the collateral agent. The credit agreement contains customary affirmative and negative covenants, including covenants limiting the ability of the Company and its restricted subsidiaries to, among other things, incur debt, grant liens, undergo certain fundamental changes, make investments, make certain restricted payments, and sell assets, in each case, subject to limitations and exceptions. As of March 31, 2019 , the Company was in compliance with such covenants. The credit agreement also contains customary events of default that include, among other things, certain payment defaults, cross defaults to other indebtedness, covenant defaults, change in control defaults, judgment defaults, and bankruptcy and insolvency defaults. If an event of default exists, the lenders may require immediate payment of all obligations under the credit agreement, and may exercise certain other rights and remedies provided for under the credit agreement, the other loan documents and applicable law. As of March 31, 2019 and December 31, 2018 , the weighted average effective interest rate payable on the long-term debt was approximately 4.8% and 4.6% , respectively. The debt is carried at its principal amount, net of unamortized debt discount and issuance costs, and is not adjusted to fair value each period. The issuance date fair value of the liability component of the debt in the amount of $398.5 million was determined using a discounted cash flow analysis, in which the projected interest and principal payments were discounted back to the issuance date of the term loan at a market interest rate for nonconvertible debt of 4.6% , which represents a Level 3 fair value measurement. The debt discount of $2.1 million and debt issuance costs of $6.0 million are being amortized to interest expense using the effective interest method from the issuance date through the contractual maturity date of the term loan of May 12, 2024. During both the three months ended March 31, 2019 and 2018 , the Company recognized total amortization of debt discount and debt issuance costs of $0.3 million to interest expense. The approximate fair value of the term loan as of March 31, 2019 and December 31, 2018 was $250.2 million and $268.1 million , respectively, which was estimated on the basis of inputs that are observable in the market and which is considered a Level 2 measurement method in the fair value hierarchy. As of March 31, 2019 and December 31, 2018 , the remaining principal balance on the term loan was $247.0 million and $262.0 million , respectively. The remaining principal balance is due on May 12, 2024 at the maturity date on the term loan. Interest Rate Swap In November 2017, the Company entered into a fixed-for-floating interest rate swap with an amortizing notional amount to swap a substantial portion of variable rate LIBOR interest payments under its term loans for fixed interest payments bearing an interest rate of 1.74685% . The Company's outstanding debt is still subject to a 2.5% fixed applicable margin during the term of the loan. The interest rate swap is designated as a cash flow hedge of a portion of floating rate interest payments on long-term debt and effectively fixes the interest rate on a substantial portion of the Company’s long-term debt at approximately 4.25% . Accordingly, the Company applies cash flow hedge accounting to the interest rate swap and it is recorded at fair value as an asset or liability and the effective portion of changes in the fair value of the interest rate swap, as measured quarterly, are reported in other comprehensive income (loss). As of March 31, 2019 and December 31, 2018 , the fair value of the interest rate swap asset was $1.0 million and $1.6 million (Note 5 ), respectively, and is included in other long-term assets in the consolidated balance sheets. The decrease in fair value related to the interest rate swap asset included in other comprehensive loss for the three months ended March 31, 2019 was $0.6 million . The interest rate swap expires in October 2020 and the total $1.0 million of unrealized gain recorded in accumulated other comprehensive income at March 31, 2019 is not expected to be recorded against interest expense over the next twelve months. |
Stock-Based Compensation and Em
Stock-Based Compensation and Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation and Employee Benefit Plans | Stock-Based Compensation and Employee Benefit Plans Employee Stock-Based Benefit Plans At March 31, 2019 , the Company had stock-based compensation awards outstanding under the following plans: the 2004 Stock Plan, the 2010 Equity Incentive Plan, as amended, or 2010 Plan, the 2010 Employee Stock Purchase Plan, or ESPP, and plans under which equity incentive awards were assumed in connection with the acquisitions of Entropic in 2015 and Exar Corporation in 2017. Refer to the Company’s Annual Report for a summary of the Company's stock-based compensation and equity plans as of December 31, 2018 . There have been no material changes to the terms of the Company's equity incentive plans during the three months ended March 31, 2019 . All current stock awards are issued under the 2010 Plan and ESPP. As of March 31, 2019 , the number of shares of common stock available for future issuance under the 2010 Plan and awards outstanding under the 2004 Plan was 14,636,122 shares and 416,007 shares, respectively. As of March 31, 2019 , the number of shares of common stock available for future issuance under the ESPP was 3,000,253 shares. Stock-Based Compensation The Company recognizes stock-based compensation in the consolidated statements of operations , based on the department to which the related employee reports, as follows: Three Months Ended March 31, 2019 2018 (in thousands) Cost of net revenue $ 130 $ 106 Research and development 4,213 4,374 Selling, general and administrative 3,404 3,993 $ 7,747 $ 8,473 The total unrecognized compensation cost related to unvested restricted stock units and restricted stock awards as of March 31, 2019 was $46.3 million , and the weighted average period over which these equity awards are expected to vest is 2.49 years. The total unrecognized compensation cost related to unvested stock options as of March 31, 2019 was $3.7 million , and the weighted average period over which these equity awards are expected to vest is 2.71 years. Restricted Stock Units and Restricted Stock Awards The Company calculates the fair value of restricted stock units based on the fair market value of the Company's common stock on the grant date. Stock based compensation is recognized over the vesting period using the straight-line method. A summary of the Company’s restricted stock unit and restricted stock award activity is as follows: Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value per Share Outstanding at December 31, 2018 3,263 $ 20.23 Granted 367 23.51 Vested (636 ) 20.83 Canceled (99 ) 21.00 Outstanding at March 31, 2019 2,895 20.49 Employee Stock Purchase Rights and Stock Options The Company uses the Black-Scholes valuation model to calculate the grant-date fair value of employee stock purchase rights and stock options. Stock based compensation expense is recognized over the vesting period using the straight-line method. Employee Stock Purchase Rights During the three months ended March 31, 2019 , there were no shares of common stock purchased under the ESPP. The fair values of employee stock purchase rights were estimated using the Black-Scholes option pricing model at their respective grant date using the following assumptions: Three Months Ended March 31, 2019 2018 Weighted-average grant date fair value per share $ 5.01 $ 6.51 Risk-free interest rate 2.51 % 1.39 % Dividend yield — % — % Expected life (in years) 0.50 0.50 Volatility 38.82 % 36.97 % The risk-free interest rate assumption was based on rates for United States (U.S.) Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The expected term is the duration of the offering period for each grant date. In addition, the estimated volatility incorporates the historical volatility over the expected term based on the Company's daily closing stock prices. Stock Options A summary of the Company’s stock options activity is as follows: Number of Options (in thousands) Weighted-Average Exercise Price Weighted-Average Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 2,659 $ 10.27 Exercised (609 ) 7.08 Canceled (7 ) 20.50 Outstanding at March 31, 2019 2,043 $ 11.19 2.43 $ 29,376 Vested and expected to vest at March 31, 2019 2,020 $ 11.11 2.39 $ 29,206 Exercisable at March 31, 2019 1,602 $ 9.41 1.50 $ 25,893 No stock options were granted by the Company during the three months ended March 31, 2019 . The intrinsic value of stock options exercised was $9.8 million and $2.1 million in the three months ended March 31, 2019 and 2018 , respectively. Cash received from exercise of stock options was $2.6 million and $1.0 million during the three months ended March 31, 2019 and 2018 , respectively. The tax benefit from stock options exercised was $9.0 million and $2.1 million during the three months ended March 31, 2019 and 2018 , respectively. Employee Incentive Bonus The Company settles a majority of bonus awards for its employees, including executives, in shares of common stock under the 2010 Equity Incentive Plan. When bonus awards are settled in common stock issued under the 2010 Equity Incentive Plan, the number of shares issuable to plan participants is determined based on the closing price of the Company's common stock as determined in trading on the New York Stock Exchange on a date approved by the Board of Directors. In connection with the Company's bonus programs, in February 2019, the Company issued 0.3 million freely-tradable shares of the Company's common stock in settlement of bonus awards to employees, including executives, for the 2018 performance period. At March 31, 2019 , the Company has an accrual of $2.4 million for bonus awards for employees for year-to-date achievement in the 2019 performance period. The Company's compensation committee retains discretion to effect payment in cash, stock, or a combination of cash and stock. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes primarily relates to projected federal, state, and foreign income taxes. To determine the quarterly provision for income taxes, the Company uses an estimated annual effective tax rate, which is generally based on expected annual income and statutory tax rates in the various jurisdictions in which the Company operates. In addition, the tax effects of certain significant or unusual items are recognized discretely in the quarter during which they occur and can be a source of variability in the effective tax rates from quarter to quarter. The Company utilizes the asset and liability method of accounting for income taxes, under which deferred taxes are determined based on temporary differences between the financial statement and tax basis of assets and liabilities using tax rates expected to be in effect during the years in which the temporary differences reverse. The Company records a valuation allowance to reduce its deferred taxes to the amount it believes is more likely than not to be realized. In making such determination, the Company considers all available positive and negative evidence quarterly, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and recent financial performance. Forming a conclusion that a valuation allowance is not required is difficult when there is negative evidence such as cumulative losses in recent years. Based upon the Company's review of all positive and negative evidence, the Company continues to have a valuation allowance on its state deferred taxes, certain of its federal deferred tax assets, and certain foreign deferred tax assets in jurisdictions where the Company has cumulative losses or otherwise is not expected to utilize certain tax attributes. The Company does not incur expense or benefit in certain tax free jurisdictions in which it operates. The Company recorded an income tax benefit of $6.5 million in the three months ended March 31, 2019 and an income tax benefit of $1.9 million for the three months ended March 31, 2018 . The income tax benefit in the three months ended March 31, 2019 and 2018 , each primarily relates to the mix of pre-tax income among jurisdictions, discrete tax benefits related to stock-based compensation, and release of uncertain tax positions under ASC 740-10. Income tax positions must meet a more-likely-than-not threshold to be recognized. Income tax positions that previously failed to meet the more-likely-than-not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not threshold are derecognized in the first financial reporting period in which that threshold is no longer met. The Company records potential penalties and interest accrued related to unrecognized tax benefits within the consolidated statements of operations as income tax expense. During the three months ended March 31, 2019 , the increase in unrecognized tax benefits was not material. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months. Accrued interest and penalties associated with uncertain tax positions as of March 31, 2019 were approximately $0.7 million and $0.1 million , respectively. The Company is subject to federal and state income tax in the United States and is also subject to income tax in various states and foreign tax jurisdictions. At March 31, 2019 , the Company’s tax years for 2014 , 2013 , and 2010 and forward are subject to examination by federal, state, and foreign tax authorities, respectively. The Company is under a routine compliance review by the Inland Revenue Authority of Singapore for its 2016 and 2017 tax years. The Company does not expect these reviews to have a material effect on its consolidated financial position or results of operations. In addition, the examination by the California Franchise Tax Board for the 2014 and 2015 tax years was closed during the quarter ended March 31, 2019 without any adjustments. The Company's subsidiary in Singapore operates under certain tax incentives in Singapore, which are generally effective through March 2022, and are conditional upon meeting certain employment and investment thresholds in Singapore. Under the incentives, qualifying income derived from certain sales of the Company's integrated circuits is taxed at a concessionary rate over the incentive period, and there are reduced Singapore withholding taxes on certain intercompany royalties during the incentive period. Primarily because of the Company's Singapore net operating losses and a full valuation allowance in Singapore, the incentives did not have a material impact on the Company's income tax benefit in the three months ended March 31, 2019 . |
Concentration of Credit Risk, S
Concentration of Credit Risk, Significant Customers and Geographic Information | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentration of Credit Risk, Significant Customers and Geographic Information | Concentration of Credit Risk, Significant Customers and Revenue by Geographic Region Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. Collateral is generally not required for customer receivables. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. At times, such deposits may be in excess of insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents. Significant Customers The Company markets its products and services to manufacturers of a wide range of electronic devices (Note 1 ). The Company makes periodic evaluations of the credit worthiness of its customers. Customers comprising greater than 10% of net revenues for each of the periods presented are as follows: Three Months Ended March 31, 2019 2018 Percentage of total net revenue Customer A 12 % 27 % Balances that are 10% or greater of accounts receivable, based on the Company's billings to the contract manufacturer customers, are as follows: March 31, December 31, 2019 2018 Percentage of gross accounts receivable Customer B * 10 % Customer C 11 % * ____________________________ * Represents less than 10% of the gross accounts receivable as of the respective period end. Significant Suppliers Suppliers comprising greater than 10% of total inventory purchases are as follows: Three Months Ended March 31, 2019 2018 Vendor A 19 % 14 % Vendor B 14 % 19 % Vendor C 13 % 16 % Vendor D * 21 % ____________________________ * Represents less than 10% of the inventory purchases for the respective period. Geographic Information The Company's consolidated net revenues by geographic area based on ship-to location are as follows (in thousands): Three Months Ended March 31, 2019 2018 Amount % of total net revenue Amount % of total net revenue Asia $ 71,548 85 % $ 84,814 77 % United States 4,352 5 % 5,195 5 % Rest of world 8,735 10 % 20,818 19 % Total $ 84,635 100 % $ 110,827 100 % The products shipped to individual countries representing greater than 10% of net revenue for each of the periods presented are as follows: Three Months Ended March 31, 2019 2018 Percentage of total net revenue China 67 % 61 % The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country accounted for more than 10% of net revenue during these periods. Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill by geographic area are as follows (in thousands): March 31, December 31, 2019 2018 (1) Amount % of total Amount % of total United States $ 430,879 85 % $ 426,321 85 % Singapore 70,289 14 % 71,945 14 % Rest of world 6,326 1 % 3,368 1 % Total $ 507,494 100 % $ 501,634 100 % _____________ (1) Amounts do not include leased right-of-use assets in the prior period due to the adoption of ASC 842 under the modified retrospective method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Revenue by Market The table below presents disaggregated net revenues by market (in thousands): Three Months Ended March 31, 2019 2018 Connected home $ 43,432 $ 65,658 % of net revenue 51 % 59 % Infrastructure 22,102 20,490 % of net revenue 26 % 19 % Industrial and multi-market 19,101 24,679 % of net revenue 23 % 22 % Total net revenue $ 84,635 $ 110,827 Revenues from sales through the Company’s distributors accounted for 41% and 39% of net revenue for the three months ended March 31, 2019 and 2018 , respectively. Contract Liabilities As of March 31, 2019 , customer contract liabilities consist of estimates of obligations to deliver rebates to customers in the form of units of products and were approximately $0.1 million . Revenue recognized in the three months ended March 31, 2019 that was included in the contract liability balance as of December 31, 2018 was immaterial. There were no material changes in the contract liabilities balance during the three months ended March 31, 2019 . Obligations to Customers for Price Adjustments and Returns and Assets for Right-of-Returns As of March 31, 2019 , obligations to customers consisting of estimates of price protection rights offered to the Company's end customers totaled $18.9 million and are included in accrued price protection liability in the consolidated balance sheets. For activity in this account, including amounts included in net revenue, refer to Note 6 . Other obligations to customers representing estimates of price adjustments to be claimed by distributors upon sell-through of their inventory to their end customer and estimates of stock rotation returns to be claimed by distributors on products sold as of March 31, 2019 were $7.3 million and $2.0 million , respectively, and are included in accrued expenses and other current liabilities in the consolidated balance sheets (Note 6 ). The increase in revenue from net changes in transaction prices for amounts included in obligations to customers for price adjustments as of January 1, 2018 was not material. As of March 31, 2019 , right of return assets under customer contracts representing the estimates of product inventory the Company expects to receive from customers in stock rotation returns were approximately $0.3 million . Right of return assets are included in inventory in the consolidated balance sheets (Note 6 ). As of March 31, 2019 , there were no impairment losses recorded on customer accounts receivable. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Leases The Company primarily leases office facilities under operating lease arrangements expiring at various years through 2023 . These leases often have original terms of 3 to 5 years and contain options to extend the lease up to 5 years or terminate the lease, which are included in right-of-use assets and lease liabilities when the Company is reasonably certain it will renew the underlying leases. Since the implicit rate of such leases is unknown and the Company is not reasonably certain to renew its leases, the Company has elected to apply a collateralized incremental borrowing rate to facility leases on the original lease term in calculating the present value of future lease payments. As of March 31, 2019 , the weighted average discount rate for operating leases was 5.0% and the weighted average remaining lease term for operating leases was 3.3 years . The table below presents aggregate future minimum payments due under leases for the next five years and beyond, reconciled to total lease liabilities included in the consolidated balance sheet as of March 31, 2019 : Operating Leases (in thousands) 2019 (9 months) $ 6,484 2020 8,853 2021 8,595 2022 3,784 2023 1,021 Thereafter — Total minimum payments 28,737 Less: imputed interest (2,336 ) Less: unrealized translation loss (236 ) Total lease liabilities 26,165 Less: short-term lease liabilities (8,033 ) Long-term lease liabilities $ 18,132 Operating lease cost was $0.9 million and $1.2 million for the three months ended March 31, 2019 and 2018 , respectively. Short-term lease costs for the three months ended March 31, 2019 were not material. There were no right-of-use assets obtained in exchange for new liabilities for the three months ended March 31, 2019 . The Company has subleased certain facilities that it ceased using in connection with prior years' restructuring plans (Note 3 ). Such subleases expire at various years through fiscal 2023. As of March 31, 2019 , future minimum rental income under non-cancelable subleases is as follows: Amount (in thousands) 2019 (9 months) $ 2,946 2020 4,036 2021 4,057 2022 782 2023 291 Thereafter — Total minimum rental income $ 12,112 Total sublease income related to leased facilities the Company ceased using in connection with a restructuring plan for the three months ended March 31, 2019 and 2018 was approximately $0.6 million and $0.7 million , respectively (Note 3 ). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Inventory Purchase and Other Contractual Obligations As of March 31, 2019 , future minimum payments under inventory purchase and other obligations are as follows: Inventory Purchase Obligations Other Obligations Total 2019 (9 months) $ 68,866 $ 6,122 $ 74,988 2020 — 4,574 4,574 2021 — 843 843 2022 — 425 425 2023 — 447 447 Thereafter — — — Total minimum payments $ 68,866 $ 12,411 $ 81,277 Other obligations consist of contractual payments due for software licenses. CrestaTech Litigation As disclosed in the Annual Report, the Company was a defendant in patent litigation originally filed by CrestaTech Technology Corporation, or CrestaTech. On January 21, 2014, CrestaTech filed a complaint for patent infringement against the Company in the United States District Court of Delaware, or District Court Litigation, alleging that the Company infringed U.S. Patent Nos. 7,075,585, or the '585 Patent and 7,265,792, or the '792 Patent. In addition to asking for compensatory damages, CrestaTech alleged willful infringement and sought a permanent injunction. CrestaTech also named Sharp Corporation, Sharp Electronics Corp. and VIZIO, Inc. as defendants based upon their alleged use of the Company's television tuners. Following the litigation history described in the Company's prior filings on Form 10-K and Form 10-Q, the District Court dismissed the District Court Litigation in April 2018. While the successor plaintiff following a Chapter 7 bankruptcy proceeding of CrestaTech below has suggested that the dismissal may have been in error, it has taken no action to re-instate the case. In the related bankruptcy proceeding, the plaintiff stated that it “no longer has any valid patent claims that it is asserting in any of the proceedings purchased through the Sale Agreement,” which includes the District Court Litigation against the Company. In re Cresta Technology Corporation, Case No. 16-50808 (N.D. Cal. Bank. 2016) at Dkt. No. 270. At this time, the Company cannot predict whether the District Court litigation will be re-instated. In addition, outside the District Court Litigation, the Company and the successor to CrestaTech are continuing to dispute certain matters relating to the ‘585 Patent through the inter parties review (IPR) and potential appeal process. Any re-instatement of the District Court Litigation, material expenses associated with the IPR and potential appeal process, or other costs arising from the dispute between the parties could adversely affect the Company's operating results. Trango Systems, Inc. Litigation On or about August 2, 2016, Trango Systems, Inc., or Trango, filed a complaint in the Superior Court of California, County of San Diego, Central Division, against defendants Broadcom Corporation, Inc., or Broadcom, and the Company, collectively, Defendants. Trango is a purchaser that alleges various fraud, breach of contract, and interference with economic relations claims in connection with the discontinuance of a chip line the Company acquired from Broadcom in 2016. Trango seeks unspecified general and special damages, pre-judgment interest, expenses and costs, attorneys’ fees, punitive damages, and unspecified injunctive and equitable relief. On June 23, 2017, the Court sustained the Company's demurrer to each cause of action in the second amended complaint filed on or about December 6, 2016. Trango filed its third amended complaint on or about July 13, 2017. On February 23, 2018, the Court sustained, in part, the Company's demurrer, dismissing with prejudice the cause of action for breach of a written contract, and Trango voluntarily dismissed its cause of action for breach of an implied-in-fact contract. The remaining causes of action have been permitted to proceed. On March 15, 2018, Trango filed its fourth amended complaint. The Company filed its answer on April 17, 2018. Also, on April 17, 2018, Broadcom filed a cross-complaint against the Company, alleging causes of action for indemnity, contribution and apportionment, and declaratory relief. Broadcom voluntarily dismissed the cross-complaint on June 8, 2018. On December 10, 2018, the Company filed a motion for summary judgment, or in the alternative summary adjudication concerning all of Trango’s causes of action asserted against the Company; on April 5, 2019, the Court granted that motion, in part, dismissing Trango’s fraud-based claims against the Company (specifically, claims for intentional fraud, promissory fraud/false promise, fraud by concealment, and negligent misrepresentation). The trial date has been continued and is now set for August 9, 2019. The Company intends to continue to vigorously defend against the lawsuit as it proceeds. The Company cannot predict the outcome of the Trango Systems, Inc. litigation. Any adverse determination in the Trango Systems, Inc. litigation could have a material adverse effect on the Company's business and operating results. Other Matters In addition, from time to time, the Company is subject to threats of litigation or actual litigation in the ordinary course of business, some of which may be material. Other than the CrestaTech and Trango litigation described above, the Company believes that there are no other currently pending litigation matters that, if determined adversely to the Company's interests, would have a material effect on the Company's business or that would not be covered by the Company's existing liability insurance. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | MaxLinear, Inc. was incorporated in Delaware in September 2003. MaxLinear, Inc., together with its wholly owned subsidiaries, collectively referred to as MaxLinear, or the Company, is a provider of radio-frequency, or RF, high-performance analog, and mixed-signal communications system-on-chip solutions for the connected home, wired and wireless infrastructure, and industrial and multi-market applications. MaxLinear's customers include electronics distributors, module makers, original equipment manufacturers, or OEMs, and original design manufacturers, or ODMs, who incorporate the Company’s products in a wide range of electronic devices, including cable DOCSIS broadband modems and gateways, wireline connectivity devices for in-home networking applications, RF transceivers and modems for wireless carrier access and backhaul infrastructure, fiber-optic modules for data center, metro, and long-haul transport networks, video set-top boxes and gateways, hybrid analog and digital televisions, direct broadcast satellite outdoor and indoor units, and power management and interface products used in these and a range of other markets. The Company is a fabless integrated circuit design company whose products integrate all or a substantial portion of a broadband communication system. |
Basis of Presentation and Principles of Consolidation | The accompanying unaudited consolidated financial statements include the accounts of MaxLinear, Inc. and its wholly owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and disclosures required by GAAP for complete financial statements. All intercompany transactions and investments have been eliminated in consolidation. Certain prior period amounts have been reclassified to conform with the current period presentation. Such reclassifications include the separate presentation of long-term lease liabilities on the consolidated balance sheets. In the opinion of management, the Company’s unaudited consolidated interim financial statements contain adjustments, including normal recurring accruals necessary to present fairly the Company’s consolidated financial position, results of operations, comprehensive income (loss), stockholders’ equity, and cash flows. The consolidated balance sheet as of December 31, 2018 was derived from the Company’s audited consolidated financial statements at that date. The accompanying unaudited consolidated interim financial statements should be read in conjunction with the audited consolidated financial statements and related notes thereto for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K filed by the Company with the Securities and Exchange Commission, or the SEC, on February 5, 2019 , or the Annual Report. Interim results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019 . |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes to unaudited consolidated financial statements. Actual results could differ from those estimates. |
Significant Accounting Policies | Refer to the Company’s Annual Report for a summary of significant accounting policies. On January 1, 2019, the Company adopted Financial Accounting Standards Board, or FASB, Accounting Standards Codification Topic 842, Leases , or ASC 842, using the modified retrospective transition method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019, and accordingly, modified its policy on accounting for leases as stated below . As described under “Recently Adopted Accounting Pronouncements,” below, the primary impact of adopting ASC 842 for the Company was the recognition in the consolidated balance sheet of certain lease-related assets and liabilities for operating leases with terms longer than 12 months. Such amounts were not previously accounted for in the Company's consolidated balance sheets. There have been no other material changes to the Company's significant accounting policies during the three months ended March 31, 2019 . Leases The Company’s leases primarily consist of facility leases which are classified as operating leases. The Company assesses whether an arrangement contains a lease at inception. The Company recognizes a lease liability to make contractual payments under all leases with terms greater than twelve months and a corresponding right-of-use asset, representing its right to use the underlying asset for the lease term. The lease liability is initially measured at the present value of the lease payments over the lease term using the collateralized incremental borrowing rate since the implicit rate is unknown. Options to extend or terminate a lease are included in the lease term when it is reasonably certain that the Company will exercise such an option. The right-of-use asset is initially measured as the contractual lease liability plus any initial direct costs and prepaid lease payments made, less any lease incentives. Upon adoption of ASC 842 on January 1, 2019, the carrying value of lease-related restructuring liability for certain restructured leases existing at that date, has been offset against the related right-of-use asset. Lease expense is recognized on a straight-line basis over the lease term. On January 1, 2019, the Company adopted ASC 842 using the modified retrospective transition method with a cumulative adjustment to accumulated deficit at the beginning of the period of adoption. Upon adoption, the Company elected certain practical expedients and accordingly has (1) carried forward its prior assessments of (a) whether existing contracts on the January 1, 2019 adoption date contain leases, (b) classification of leases as operating or financing and (c) initial direct costs for existing leases and (2) considered hindsight in determining the lease term and assessing impairment of the right-of-use-asset. In addition, the Company used a portfolio approach for its facility leases when making judgments and estimates, such as the discount rate (Note 12 ). Leased right-of-use assets are subject to impairment testing as a long-lived asset at the asset-group level. The Company monitors its long-lived assets for indicators of impairment. As the Company's leased right-of-use assets relate to facility leases, early abandonment of all or part of facility as part of a restructuring plan is typically an indicator of impairment. If impairment indicators are present, the Company tests whether the carrying amount of the leased right-of-use asset is recoverable including consideration of sublease income, and if not recoverable, measures impairment loss for the right-of-use asset or asset group. Impairment charges on leased right-of-use assets are included in restructuring charges in the statement of operations (Note 3 ). |
Recently Adopted Accounting Pronouncements | In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this update require a lessee to recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset. For leases less than twelve months, an entity is permitted to make an accounting policy election by class of underlying asset not to recognize right-of-use assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The Company made this election. Also, in July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements , to provide an additional transition method. An entity can elect not to present comparative financial information under Topic 842 if it recognizes a cumulative-effect adjustment to retained earnings upon adoption. The Company also made this election. Further, in January 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements , which clarified that post-adoption interim transition disclosures normally required in the year of adoption for the effect of a change in accounting principle on an entity’s financial statements are not required for the adoption of ASC 842. The amendments in these updates are effective for the Company for fiscal years beginning with 2019, including interim periods within those years, with early adoption permitted. The Company has completed its assessment of the impact of the adoption of ASC 842. Upon adoption, the Company recognized approximately $24.8 million of right-of-use assets and a net increase of $25.1 million in lease-related liabilities at January 1, 2019. Also, the impact of the adoption of ASC 842 on the Company’s accumulated deficit and deferred tax assets at January 1, 2019 was not material. Lastly, the impact of the adoption of ASC 842 on the Company's consolidated results of operations for the year ending December 31, 2019 is not expected to be material. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , to clarify on how to apply certain aspects of the new lease accounting standard. The amendments in this update, among other things, better articulates the requirement for a lessee’s reassessment of lease classification as of the effective date of a modification, clarifies that a change to an index or rate for variable lease payments does not constitute a resolution of a contingency that would result in the remeasurement of lease payments, and requires entities that apply Topic 842 retrospectively to each reporting period and do not adopt the practical expedients to write off any prior unamortized initial direct costs that do not meet the definition under Topic 842 to equity. The amendments in this update have the same effective date and transition requirements as the new lease standard summarized above. The Company has disclosed the impact of adoption of Topic 842 on the Company’s consolidated financial position and results of operations as stated above. In July 2018, the FASB issued ASU No. 2018-09, Codification Improvements , to clarify the Codification and prevent unintended application of the guidance. An amendment to ASC 718-740, Compensation—Stock Compensation—Income Taxes , clarifies that excess tax benefits should be recognized in the period in which the amount of the deduction is determined. The transition and effective date guidance is based on the facts and circumstances of each amendment. The amendment identified above became effective for the Company beginning with fiscal year 2019. The adoption of the amendments in this update in the three months ended March 31, 2019 did not have a material impact on the Company's consolidated financial position and results of operations. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) , which is intended to improve accounting for hedging activities by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The amendments in this update became effective for the Company for fiscal years beginning with fiscal year 2019, including interim periods within those years, with early adoption permitted in any interim period. The amendments in this update were required to be applied prospectively. The adoption of the amendments in this update in the three months ended March 31, 2019 did not have a material impact on the Company's consolidated financial statements. |
Recently Issued Accounting Pronouncements | In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment , to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. An entity no longer will determine goodwill impairment by calculating the implied fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if the reporting unit had been acquired in a business combination. Instead, under the amendments in this update, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The Board also eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this update are effective for the Company beginning with fiscal year 2020, including interim periods, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of the amendments in this update is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework— Changes to the Disclosure Requirements for Fair Value Measurement , to improve the fair value measurement reporting of financial instruments. The amendments in this update require, among other things, added disclosure of the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update eliminate, among other things, disclosure of the reasons for and amounts of transfers between Level 1 and Level 2 for assets and liabilities that are measured at fair value on a recurring basis and an entity's valuation processes for Level 3 fair value measurements. The amendments in this update will be effective for the Company beginning with fiscal year 2020, with early adoption permitted. Retrospective application is required for all amendments in this update except the added disclosures, which should be applied prospectively. The adoption of the amendments in this update is not expected to have a material impact on the Company’s consolidated financial position and results of operations. In August 2018, the FASB issued ASU No. 2018-15, Intangibles- Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract , to provide additional guidance on the accounting for costs of implementing cloud computing arrangements that are service contracts. The amendments in this update require the capitalization of implementation costs during the application development stage of such hosting arrangements and amortization of the expense over the term of the arrangement including any option to extend reasonably certain to be exercised or option to terminate reasonably certain not to be exercised. Capitalized implementation costs and amortization thereof are also required to be classified in the same line item in the statements of financial position, operations and cash flows associated with the hosting service fees. The amendments in this update will be effective for the Company beginning with fiscal year 2020, with early adoption permitted. Entities may select retrospective or prospective application to all implementation costs incurred after the adoption date. The adoption of the amendments in this update is not expected to have a material impact on the Company’s consolidated financial position and results of operations. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Earnings Per Share | The table below presents the computation of basic and diluted EPS: Three Months Ended March 31, 2019 2018 (in thousands, except per share amounts) Numerator: Net income (loss) $ (4,851 ) $ 1,847 Denominator: Weighted average common shares outstanding—basic 69,968 67,674 Dilutive common stock equivalents — 2,766 Weighted average common shares outstanding—diluted 69,968 70,440 Net income (loss) per share: Basic $ (0.07 ) $ 0.03 Diluted $ (0.07 ) $ 0.03 |
Restructuring Activity (Tables)
Restructuring Activity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table presents the activity related to the restructuring plans, which is included in restructuring charges in the consolidated statements of operations : Three Months Ended March 31, 2019 2018 (in thousands) Employee separation expenses $ 472 $ — Lease related charges 1,345 — Other 100 — $ 1,917 $ — Lease-related charges for the three months ended March 31, 2019 primarily related to exiting certain facilities and includes the impairment of long-lived assets (right-of-use assets) and leasehold improvements of $2.2 million and $1.4 million , respectively, partially offset by a gain on the extinguishment of lease liabilities of $2.9 million following the release from such liability by the landlord. |
Schedule of Restructuring Reserve by Type of Cost | The following table presents a roll-forward of the Company's restructuring liability for the three months ended March 31, 2019 . The restructuring liability is included in accrued expenses and other current liabilities in the consolidated balance sheets. Employee Separation Expenses Lease Related Charges Other Total (in thousands) Liability as of December 31, 2018 $ 409 $ 1,490 $ 47 $ 1,946 Restructuring charges 472 1,345 100 1,917 Transfer to right-of-use asset — (299 ) — (299 ) Cash payments (662 ) (1,445 ) (59 ) (2,166 ) Non-cash charges — 12 — 12 Liability as of March 31, 2019 $ 219 $ 1,103 $ 88 $ 1,410 Remaining lease related charges as of March 31, 2019 primarily consist of common area maintenance obligations. |
Goodwill and Intangibles Assets
Goodwill and Intangibles Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and other purchases: March 31, 2019 December 31, 2018 Weighted Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Value Accumulated Amortization Net Carrying Amount (in thousands) Licensed technology 3.7 $ 2,070 $ (1,265 ) $ 805 $ 2,070 $ (1,130 ) $ 940 Developed technology 6.9 240,461 (83,055 ) 157,406 238,961 (74,630 ) 164,331 Trademarks and trade names 6.1 13,800 (4,816 ) 8,984 13,800 (4,252 ) 9,548 Customer relationships 4.6 121,100 (60,697 ) 60,403 121,100 (55,647 ) 65,453 Non-compete covenants 3.0 1,100 (964 ) 136 1,100 (872 ) 228 6.1 $ 378,531 $ (150,797 ) $ 227,734 $ 377,031 $ (136,531 ) $ 240,500 |
Finite-lived Intangible Assets Amortization Expense | The following table sets forth amortization expense associated with finite-lived intangible assets, which is included in the consolidated statements of operations as follows: Three Months Ended March 31, 2019 2018 (in thousands) Cost of net revenue $ 8,434 $ 8,978 Research and development 34 42 Selling, general and administrative 5,798 7,994 $ 14,266 $ 17,014 |
Schedule of Finite-Lived Intangible Assets | The following table sets forth the activity related to finite-lived intangible assets: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 240,500 $ 310,645 Transfers to developed technology from IPR&D 1,500 — Amortization (14,266 ) (17,014 ) Ending balance $ 227,734 $ 293,631 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents future amortization of the Company’s finite-lived intangible assets at March 31, 2019 : Amount (in thousands) 2019 (9 months) $ 42,715 2020 56,168 2021 55,385 2022 37,855 2023 25,660 Thereafter 9,951 Total $ 227,734 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets consist entirely of acquired in-process research and development technology, or IPR&D. The following table sets forth the Company’s activities related to the indefinite-lived intangible assets: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 4,400 $ 4,400 Transfers to developed technology from IPR&D (1,500 ) — Ending balance $ 2,900 $ 4,400 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The composition of financial instruments is as follows: March 31, 2019 December 31, 2018 (in thousands) Assets Interest rate swap $ 1,005 $ 1,623 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table presents a summary of the Company’s financial instruments that are measured on a recurring basis: Fair Value Measurements Balance Quoted Prices Significant Other Significant (in thousands) Assets Interest rate swap, March 31, 2019 $ 1,005 $ — $ 1,005 $ — Interest rate swap, December 31, 2018 $ 1,623 $ — $ 1,623 $ — |
Derivative Instruments and Hedging Activities Disclosure | The following table summarizes activity for the interest rate swap: Three Months Ended March 31, March 31, (in thousands) Interest rate swap asset Beginning balance $ 1,623 $ 734 Unrealized gain (loss) recognized in other comprehensive income (loss) (618 ) 1,384 Ending balance $ 1,005 $ 2,118 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Cash, Cash Equivalents and Investments | Cash, cash equivalents and restricted cash consist of the following: March 31, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 71,102 $ 73,142 Short-term restricted cash 347 645 Long-term restricted cash 418 404 Total cash, cash equivalents and restricted cash $ 71,867 $ 74,191 |
Inventory | Inventory consists of the following: March 31, 2019 December 31, 2018 (in thousands) Work-in-process $ 15,365 $ 17,618 Finished goods 27,388 24,120 $ 42,753 $ 41,738 |
Property and Equipment | Property and equipment, net consists of the following: Useful Life March 31, 2019 December 31, 2018 (in thousands) Furniture and fixtures 5 $ 2,183 $ 2,020 Machinery and equipment 3-5 34,710 34,225 Masks and production equipment 2-5 12,645 12,645 Software 3 5,677 5,675 Leasehold improvements 1-5 16,199 17,493 Construction in progress N/A 360 133 71,774 72,191 Less accumulated depreciation and amortization (54,787 ) (53,787 ) $ 16,987 $ 18,404 |
Price Protection Liability | Accrued price protection liability consists of the following activity: Three Months Ended March 31, 2019 2018 (in thousands) Beginning balance $ 16,454 $ 21,571 Charged as a reduction of revenue 10,508 10,744 Reversal of unclaimed rebates — (2,367 ) Payments (8,019 ) (9,736 ) Ending balance $ 18,943 $ 20,212 |
Accrued Expenses | Accrued expenses and other current liabilities consist of the following: March 31, 2019 December 31, 2018 (in thousands) Accrued technology license payments $ 4,500 $ 4,500 Accrued professional fees 1,428 1,270 Accrued engineering and production costs 2,590 646 Accrued restructuring 1,410 1,946 Accrued royalty 923 980 Short-term lease liabilities 8,033 1,214 Accrued customer credits 556 1,204 Income tax liability 3,846 1,642 Customer contract liabilities 71 71 Accrued obligations to customers for price adjustments 7,317 7,558 Accrued obligations to customers for stock rotation rights 1,980 1,494 Other 53 995 $ 32,707 $ 23,520 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the change in balances of accumulated other comprehensive income (loss) by component: Cumulative Translation Adjustments Interest Rate Hedge Total (in thousands) Balance at December 31, 2018 $ (907 ) $ 1,179 $ 272 Current period other comprehensive income (loss) 513 (488 ) 25 Balance at March 31, 2019 $ (394 ) $ 691 $ 297 |
Debt and Interest Rate Swap (Ta
Debt and Interest Rate Swap (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The carrying amount of the Company's long-term debt consists of the following: March 31, December 31, (in thousands) Principal $ 247,000 $ 262,000 Less: Unamortized debt discount (1,555 ) (1,630 ) Unamortized debt issuance costs (4,401 ) (4,613 ) Net carrying amount of long-term debt 241,044 255,757 Less: current portion of long-term debt — — Long-term debt, non-current portion $ 241,044 $ 255,757 |
Stock-Based Compensation and _2
Stock-Based Compensation and Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | The Company recognizes stock-based compensation in the consolidated statements of operations , based on the department to which the related employee reports, as follows: Three Months Ended March 31, 2019 2018 (in thousands) Cost of net revenue $ 130 $ 106 Research and development 4,213 4,374 Selling, general and administrative 3,404 3,993 $ 7,747 $ 8,473 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of the Company’s restricted stock unit and restricted stock award activity is as follows: Number of Shares (in thousands) Weighted-Average Grant-Date Fair Value per Share Outstanding at December 31, 2018 3,263 $ 20.23 Granted 367 23.51 Vested (636 ) 20.83 Canceled (99 ) 21.00 Outstanding at March 31, 2019 2,895 20.49 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The fair values of employee stock purchase rights were estimated using the Black-Scholes option pricing model at their respective grant date using the following assumptions: Three Months Ended March 31, 2019 2018 Weighted-average grant date fair value per share $ 5.01 $ 6.51 Risk-free interest rate 2.51 % 1.39 % Dividend yield — % — % Expected life (in years) 0.50 0.50 Volatility 38.82 % 36.97 % |
Share-based Compensation, Stock Options, Activity | Number of Options (in thousands) Weighted-Average Exercise Price Weighted-Average Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2018 2,659 $ 10.27 Exercised (609 ) 7.08 Canceled (7 ) 20.50 Outstanding at March 31, 2019 2,043 $ 11.19 2.43 $ 29,376 Vested and expected to vest at March 31, 2019 2,020 $ 11.11 2.39 $ 29,206 Exercisable at March 31, 2019 1,602 $ 9.41 1.50 $ 25,893 |
Concentration of Credit Risk,_2
Concentration of Credit Risk, Significant Customers and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | Suppliers comprising greater than 10% of total inventory purchases are as follows: Three Months Ended March 31, 2019 2018 Vendor A 19 % 14 % Vendor B 14 % 19 % Vendor C 13 % 16 % Vendor D * 21 % ____________________________ * Represents less than 10% of the inventory purchases for the respective period. Customers comprising greater than 10% of net revenues for each of the periods presented are as follows: Three Months Ended March 31, 2019 2018 Percentage of total net revenue Customer A 12 % 27 % The products shipped to individual countries representing greater than 10% of net revenue for each of the periods presented are as follows: Three Months Ended March 31, 2019 2018 Percentage of total net revenue China 67 % 61 % Balances that are 10% or greater of accounts receivable, based on the Company's billings to the contract manufacturer customers, are as follows: March 31, December 31, 2019 2018 Percentage of gross accounts receivable Customer B * 10 % Customer C 11 % * ____________________________ * Represents less than 10% of the gross accounts receivable as of the respective period end. |
Revenue from External Customers by Geographic Areas | The Company's consolidated net revenues by geographic area based on ship-to location are as follows (in thousands): Three Months Ended March 31, 2019 2018 Amount % of total net revenue Amount % of total net revenue Asia $ 71,548 85 % $ 84,814 77 % United States 4,352 5 % 5,195 5 % Rest of world 8,735 10 % 20,818 19 % Total $ 84,635 100 % $ 110,827 100 % |
Long-lived Assets by Geographic Areas | Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill by geographic area are as follows (in thousands): March 31, December 31, 2019 2018 (1) Amount % of total Amount % of total United States $ 430,879 85 % $ 426,321 85 % Singapore 70,289 14 % 71,945 14 % Rest of world 6,326 1 % 3,368 1 % Total $ 507,494 100 % $ 501,634 100 % _____________ (1) Amounts do not include leased right-of-use assets in the prior period due to the adoption of ASC 842 under the modified retrospective method with a cumulative effect adjustment to accumulated deficit as of January 1, 2019. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from External Customers by Products and Services | The table below presents disaggregated net revenues by market (in thousands): Three Months Ended March 31, 2019 2018 Connected home $ 43,432 $ 65,658 % of net revenue 51 % 59 % Infrastructure 22,102 20,490 % of net revenue 26 % 19 % Industrial and multi-market 19,101 24,679 % of net revenue 23 % 22 % Total net revenue $ 84,635 $ 110,827 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The table below presents aggregate future minimum payments due under leases for the next five years and beyond, reconciled to total lease liabilities included in the consolidated balance sheet as of March 31, 2019 : Operating Leases (in thousands) 2019 (9 months) $ 6,484 2020 8,853 2021 8,595 2022 3,784 2023 1,021 Thereafter — Total minimum payments 28,737 Less: imputed interest (2,336 ) Less: unrealized translation loss (236 ) Total lease liabilities 26,165 Less: short-term lease liabilities (8,033 ) Long-term lease liabilities $ 18,132 |
Future Minimum Payments Under Operating Leases | The Company has subleased certain facilities that it ceased using in connection with prior years' restructuring plans (Note 3 ). Such subleases expire at various years through fiscal 2023. As of March 31, 2019 , future minimum rental income under non-cancelable subleases is as follows: Amount (in thousands) 2019 (9 months) $ 2,946 2020 4,036 2021 4,057 2022 782 2023 291 Thereafter — Total minimum rental income $ 12,112 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Other Obligations | As of March 31, 2019 , future minimum payments under inventory purchase and other obligations are as follows: Inventory Purchase Obligations Other Obligations Total 2019 (9 months) $ 68,866 $ 6,122 $ 74,988 2020 — 4,574 4,574 2021 — 843 843 2022 — 425 425 2023 — 447 447 Thereafter — — — Total minimum payments $ 68,866 $ 12,411 $ 81,277 |
Future Minimum Payments Under Inventory Purchase Obligations | As of March 31, 2019 , future minimum payments under inventory purchase and other obligations are as follows: Inventory Purchase Obligations Other Obligations Total 2019 (9 months) $ 68,866 $ 6,122 $ 74,988 2020 — 4,574 4,574 2021 — 843 843 2022 — 425 425 2023 — 447 447 Thereafter — — — Total minimum payments $ 68,866 $ 12,411 $ 81,277 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies (Details Textuals) $ in Millions | Jan. 01, 2019USD ($) |
Assets [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 24.8 |
Liability [Member] | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 25.1 |
Net Income (Loss) Per Share (De
Net Income (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income (loss) | $ (4,851) | $ 1,847 |
Denominator: | ||
Weighted average common shares outstanding—basic (shares) | 69,968 | 67,674 |
Dilutive common stock equivalents (shares) | 0 | 2,766 |
Weighted average common shares outstanding-diluted (shares) | 69,968 | 70,440 |
Net income (loss) per share: | ||
Basic (usd per share) | $ (0.07) | $ 0.03 |
Diluted (usd per share) | $ (0.07) | $ 0.03 |
Net Income (Loss) Per Share (_2
Net Income (Loss) Per Share (Details Textuals) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Common stock equivalents excluded from the calculation of diluted net income (loss) (shares) | 2.9 | 1 |
Restructuring Activity (Details
Restructuring Activity (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1,917 | $ 0 |
One-time Termination Benefits [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 472 | 0 |
Facility Closing [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,345 | 0 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 100 | $ 0 |
Restructuring Activities (Detai
Restructuring Activities (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Impairment of long-lived assets | $ 2,182 | $ 0 |
Restructuring charges | 1,917 | 0 |
Impairment of leasehold improvements | 1,442 | 0 |
Gain on extinguishment of lease liabilities | $ (2,880) | $ 0 |
Restructuring Activity (Detai_2
Restructuring Activity (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | $ 1,946 | |
Restructuring Charges | 1,917 | $ 0 |
Restructuring Reserve, Accrual Adjustment | (299) | |
Payments for Restructuring | (2,166) | |
Restructuring Reserve, Settled without Cash | (12) | |
Restructuring Reserve | 1,410 | |
One-time Termination Benefits [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 409 | |
Restructuring Charges | 472 | 0 |
Restructuring Reserve, Accrual Adjustment | 0 | |
Payments for Restructuring | (662) | |
Restructuring Reserve, Settled without Cash | 0 | |
Restructuring Reserve | 219 | |
Facility Closing [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 1,490 | |
Restructuring Charges | 1,345 | 0 |
Restructuring Reserve, Accrual Adjustment | (299) | |
Payments for Restructuring | (1,445) | |
Restructuring Reserve, Settled without Cash | (12) | |
Restructuring Reserve | 1,103 | |
Other Restructuring [Member] | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring Reserve | 47 | |
Restructuring Charges | 100 | $ 0 |
Restructuring Reserve, Accrual Adjustment | 0 | |
Payments for Restructuring | (59) | |
Restructuring Reserve, Settled without Cash | 0 | |
Restructuring Reserve | $ 88 |
Goodwill and Intangibles Asse_2
Goodwill and Intangibles Assets (Details 1) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Period Increase (Decrease) | $ 0 | |
Goodwill impairment | $ 0 | $ 0 |
Goodwill and Intangibles Asse_3
Goodwill and Intangibles Assets (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in Years) | 6 years 1 month 6 days | |||
Gross Carrying Amount | $ 378,531 | $ 377,031 | ||
Accumulated Amortization | (150,797) | (136,531) | ||
Net Carrying Amount | 227,734 | $ 293,631 | 240,500 | $ 310,645 |
Amortization | 14,266 | 17,014 | ||
Cost of net revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | 8,434 | 8,978 | ||
Research and development | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | 34 | 42 | ||
Selling, general and administrative | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization | $ 5,798 | $ 7,994 | ||
Licensed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in Years) | 3 years 8 months 12 days | |||
Gross Carrying Amount | $ 2,070 | 2,070 | ||
Accumulated Amortization | (1,265) | (1,130) | ||
Net Carrying Amount | $ 805 | 940 | ||
Developed technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in Years) | 6 years 10 months 24 days | |||
Gross Carrying Amount | $ 240,461 | 238,961 | ||
Accumulated Amortization | (83,055) | (74,630) | ||
Net Carrying Amount | $ 157,406 | 164,331 | ||
Trademarks and trade names | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in Years) | 6 years 1 month 6 days | |||
Gross Carrying Amount | $ 13,800 | 13,800 | ||
Accumulated Amortization | (4,816) | (4,252) | ||
Net Carrying Amount | $ 8,984 | 9,548 | ||
Customer relationships | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in Years) | 4 years 7 months 6 days | |||
Gross Carrying Amount | $ 121,100 | 121,100 | ||
Accumulated Amortization | (60,697) | (55,647) | ||
Net Carrying Amount | $ 60,403 | 65,453 | ||
Non-compete covenants | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted Average Useful Life (in Years) | 3 years | |||
Gross Carrying Amount | $ 1,100 | 1,100 | ||
Accumulated Amortization | (964) | (872) | ||
Net Carrying Amount | $ 136 | $ 228 |
Goodwill and Intangibles Asse_4
Goodwill and Intangibles Assets (Details 3) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 240,500 | $ 310,645 |
Intangible Assets, Transfer from IPRD to Developed Tech | 1,500 | 0 |
Amortization | (14,266) | (17,014) |
Ending balance | $ 227,734 | $ 293,631 |
Goodwill and Intangibles Asse_5
Goodwill and Intangibles Assets (Details 4) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
2019 (9 months) | $ 42,715 | |||
2020 | 56,168 | |||
2021 | 55,385 | |||
2022 | 37,855 | |||
2023 | 25,660 | |||
Thereafter | 9,951 | |||
Net Carrying Amount | $ 227,734 | $ 240,500 | $ 293,631 | $ 310,645 |
Goodwill and Intangibles Asse_6
Goodwill and Intangibles Assets (Details Textuals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Other Indefinite-lived Intangible Assets, Beginning | $ 4,400 | $ 4,400 |
Intangible Assets, Transfer from IPRD to Developed Tech | (1,500) | 0 |
Other Indefinite-lived Intangible Assets, Ending | 2,900 | 4,400 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0 | $ 0 |
Financial Instruments (Details
Financial Instruments (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | $ 1,005 | $ 1,623 | $ 2,118 | $ 734 |
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | $ 1,005 | $ 1,623 |
Financial Instruments (Detail_2
Financial Instruments (Details 2) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | $ 1,005,000 | $ 1,623,000 | $ 2,118,000 | $ 734,000 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | 1,005,000 | 1,623,000 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Assets [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative Asset | $ 1,005,000 | $ 1,623,000 |
Financial Instruments (Detail_3
Financial Instruments (Details 3) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Derivative Asset | 1,623,000 | 734,000 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | (618,000) | 1,384,000 |
Derivative Asset | $ 1,005,000 | $ 2,118,000 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details Textuals) - USD ($) | Mar. 31, 2019 | Mar. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Balance Sheet Details - Cash an
Balance Sheet Details - Cash and Investments (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Balance Sheet Related Disclosures [Abstract] | ||||
Cash and cash equivalents | $ 71,102 | $ 73,142 | ||
Short-term restricted cash | 347 | 645 | ||
Long-term restricted cash | 418 | 404 | ||
Total cash, cash equivalents and restricted cash | 71,867 | 74,191 | $ 57,333 | $ 74,412 |
Money Market Funds, at Carrying Value | 20,000 | 0 | ||
Restricted cash | $ 800 | $ 1,000 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventory (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Work-in-process | $ 15,365 | $ 17,618 |
Finished goods | 27,388 | 24,120 |
Inventory | $ 42,753 | $ 41,738 |
Balance Sheet Details - Propert
Balance Sheet Details - Property and Equipment (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 71,774 | $ 72,191 | |
Less accumulated depreciation and amortization | (54,787) | (53,787) | |
Property and equipment, net | 16,987 | 18,404 | |
Depreciation | $ 2,100 | $ 3,100 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Property and equipment, gross | $ 2,183 | 2,020 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 34,710 | 34,225 | |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Masks and production equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 12,645 | 12,645 | |
Masks and production equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Masks and production equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Software | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 3 years | ||
Property and equipment, gross | $ 5,677 | 5,675 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 16,199 | 17,493 | |
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 1 year | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 5 years | ||
Construction in progress | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 360 | $ 133 |
Balance Sheet Details- Accrued
Balance Sheet Details- Accrued Price Protection Liability (Details 5) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accrued Price Protection Rebate Activity [Roll Forward] | ||
Beginning balance | $ 16,454 | $ 21,571 |
Charged as a reduction of revenue | 10,508 | 10,744 |
Reversal of unclaimed rebates | 0 | (2,367) |
Payments | (8,019) | (9,736) |
Ending balance | $ 18,943 | $ 20,212 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Expenses (Details 6) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Capitalized Contract Cost [Line Items] | ||
Accrued technology license payments | $ 4,500 | $ 4,500 |
Accrued professional fees | 1,428 | 1,270 |
Accrued engineering and production costs | 2,590 | 646 |
Accrued restructuring | 1,410 | 1,946 |
Accrued royalty | 923 | 980 |
Short-term lease liabilities | 8,033 | 1,214 |
Accrued customer credits | 556 | 1,204 |
Income tax liability | 3,846 | 1,642 |
Customer contract liabilities | 71 | 71 |
Other | 53 | 995 |
Total | 32,707 | 23,520 |
Reduction in Transaction Price [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Accrued obligations to customers | 7,317 | 7,558 |
Sales Returns and Allowances [Member] | ||
Capitalized Contract Cost [Line Items] | ||
Accrued obligations to customers for stock rotation rights | $ 1,980 | $ 1,494 |
Balance Sheet Details Balance S
Balance Sheet Details Balance Sheet Details - AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 17 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning | $ 272 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | 513 | $ 393 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (488) | 1,196 | $ 1,000 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 25 | $ 1,589 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending | 297 | 297 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning | (907) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending | (394) | (394) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning | 1,179 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending | $ 691 | $ 691 |
Debt and Interest Rate Swap (De
Debt and Interest Rate Swap (Details) - USD ($) $ in Thousands | May 12, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | Mar. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 03, 2017 |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unamortized Discount | $ (2,100) | |||||||
Long-term debt | $ 241,044 | $ 241,044 | $ 241,044 | $ 255,757 | ||||
Line of Credit Facility, Incremental Borrowing Capacity | $ 160,000 | $ 160,000 | $ 160,000 | |||||
Debt Instrument, Frequency of Periodic Payment | quarterly installments | |||||||
Debt Instrument, Quarterly Amortization Rate | 0.25% | 0.25% | 0.25% | |||||
Debt Instrument, Call Feature | 1.0% soft call premium | |||||||
Debt Instrument, Soft Call Premium Rate | 1.00% | |||||||
Repayments of Debt | $ 178,000 | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.80% | 4.80% | 4.80% | 4.60% | ||||
Long-term Debt, Fair Value | $ 398,500 | $ 250,200 | $ 250,200 | $ 250,200 | $ 268,100 | |||
Debt Instrument, Interest Rate, Basis for Effective Rate | 0.046 | |||||||
Debt Issuance Costs, Gross | $ 6,000 | |||||||
Amortization of debt issuance costs and accretion of discount on debt and leases | 402 | $ 287 | ||||||
Debt Instrument, Annual Principal Payment | $ 247,000 | $ 247,000 | $ 247,000 | 262,000 | ||||
Derivative, Fixed Interest Rate | 4.25% | 4.25% | 4.25% | 1.74685% | ||||
Derivative Asset | $ 1,005 | 2,118 | $ 1,005 | $ 1,005 | 1,623 | $ 734 | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Inputs Reconciliation, Gain (Loss) Included in Other Comprehensive Income (Loss) | (618) | 1,384 | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | $ (488) | $ 1,196 | 1,000 | |||||
Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate Terms | a base rate | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Federal Funds Effective Swap Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate Terms | the federal funds rate, plus 0.50% | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Prime Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate Terms | prime rate | |||||||
One, Two, Or Three Month London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate Terms | an adjusted LIBOR rate determined on the basis of a one- three- or six-month interest period, plus 1.0% | |||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||
London Interbank Offered Rate (LIBOR) Subject to Floor [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate Terms | adjusted LIBOR rate, subject to a floor of 0.75% | |||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Debt Instrument, Variable Rate Basis Floor | 0.75% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Medium-term Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term Debt, Gross | $ 425,000 | $ 247,000 | 247,000 | 247,000 | 262,000 | |||
Debt Instrument, Unamortized Discount | (1,555) | (1,555) | (1,555) | (1,630) | ||||
Debt Issuance Costs, Net | (4,401) | (4,401) | (4,401) | (4,613) | ||||
Long-term Debt | 241,044 | 241,044 | 241,044 | 255,757 | ||||
Long-term Debt, Current Maturities | 0 | 0 | 0 | 0 | ||||
Long-term debt | 241,044 | 241,044 | 241,044 | 255,757 | ||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Derivative Financial Instruments, Assets [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Derivative Asset | $ 1,005 | $ 1,005 | $ 1,005 | $ 1,623 |
Stock-Based Compensation and _3
Stock-Based Compensation and Employee Benefit Plans - Additional Information (Details Textuals) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 8 months 16 days |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 3.7 |
Equity Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 14,636,122 |
2004 Equity Incentive Plan [Member] [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 416,007 |
ESPP [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,000,253 |
Restricted Stock Unit and Restricted Stock Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 46.3 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 5 months 27 days |
Employee Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 4 months 21 days |
Stock-Based Compensation and _4
Stock-Based Compensation and Employee Benefit Plans - Expense by Type (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 7,747 | $ 8,473 |
Cost of net revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 130 | 106 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | 4,213 | 4,374 |
Selling, general and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Allocated Share-based Compensation Expense | $ 3,404 | $ 3,993 |
Stock-Based Compensation and _5
Stock-Based Compensation and Employee Benefit Plans - Awards (Details 2) - Restricted Stock Unit and Restricted Stock Award [Member] shares in Thousands | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 3,263 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 367 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | shares | (636) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | shares | (99) |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | shares | 2,895 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 20.23 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | 23.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ / shares | 20.83 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | 21 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Grant Date Fair Value | $ / shares | $ 20.49 |
Stock-Based Compensation and _6
Stock-Based Compensation and Employee Benefit Plans - ESPP (Details 3) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
ESPP [Member] | ||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 0 | |
Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 5.01 | $ 6.51 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 2.51% | 1.39% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 38.82% | 36.97% |
Stock-Based Compensation and _7
Stock-Based Compensation and Employee Benefit Plans - Stock Options (Details 4) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Feb. 22, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 9,800 | $ 2,100 | |
Proceeds from Stock Options Exercised | 2,600 | 1,000 | |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | 9,000 | $ 2,100 | |
Shares Issued upon Settlement of Employee Bonus Plan | 300 | ||
Accrued Bonuses | $ 2,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 8 months 16 days | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,659 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | (609) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | (7) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,043 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable [Table Text Block] | 2020 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 1,602 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | $ 10.27 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 7.08 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 20.50 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price | 11.19 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | 11.11 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $ 9.41 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 2 years 5 months 5 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 4 months 21 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 1 year 6 months | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 29,376 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 29,206 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 25,893 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Valuation Allowance [Line Items] | ||
Income tax benefit | $ (6,462) | $ (1,864) |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 700 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | $ 100 |
Concentration of Credit Risk,_3
Concentration of Credit Risk, Significant Customers and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | |||
Net revenue | $ 84,635 | $ 110,827 | |
Net Revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | |
Net revenue | $ 84,635 | $ 110,827 | |
Net Revenue [Member] | Asia [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 85.00% | 77.00% | |
Net revenue | $ 71,548 | $ 84,814 | |
Net Revenue [Member] | UNITED STATES | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 5.00% | 5.00% | |
Net revenue | $ 4,352 | $ 5,195 | |
Net Revenue [Member] | Rest of World [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | 19.00% | |
Net revenue | $ 8,735 | $ 20,818 | |
Net Revenue [Member] | Geographic Concentration Risk [Member] | China [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 67.00% | 61.00% | |
Long lived assets [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 100.00% | 100.00% | |
Long lived assets | $ 507,494 | $ 501,634 | |
Long lived assets [Member] | UNITED STATES | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 85.00% | 85.00% | |
Long lived assets | $ 430,879 | $ 426,321 | |
Long lived assets [Member] | Rest of World [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 1.00% | 1.00% | |
Long lived assets | $ 6,326 | $ 3,368 | |
Long lived assets [Member] | SINGAPORE | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 14.00% | |
Long lived assets | $ 70,289 | $ 71,945 | |
Vendor A [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 19.00% | 14.00% | |
Vendor B [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 14.00% | 19.00% | |
Vendor C [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 13.00% | 16.00% | |
Vendor E [Member] | Supplier Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 21.00% | ||
Customer A [Member] | Net Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 12.00% | 27.00% | |
Customer B [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% | ||
Customer C [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 11.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | $ 84,635 | $ 110,827 | ||
Customer contract liabilities | 71 | $ 71 | ||
Accrued price protection liability | 18,943 | 20,212 | 16,454 | $ 21,571 |
Right of return assets | 300 | |||
Connected Home [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | 43,432 | 65,658 | ||
Infrastructure [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | 22,102 | 20,490 | ||
Industrial and multi-market [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net revenue | $ 19,101 | $ 24,679 | ||
Sales Revenue, Net [Member] | Connected Home [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk percentage | 51.00% | 59.00% | ||
Sales Revenue, Net [Member] | Infrastructure [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk percentage | 26.00% | 19.00% | ||
Sales Revenue, Net [Member] | Industrial and multi-market [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk percentage | 23.00% | 22.00% | ||
Accounts Receivable [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Impairment losses | $ 0 | |||
Reduction in Transaction Price [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Accrued obligations to customers for price adjustments | 7,317 | 7,558 | ||
Sales Returns and Allowances [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Accrued obligations to customers for stock rotation rights | $ 1,980 | $ 1,494 | ||
Revenue from Distributors [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk percentage | 41.00% | 39.00% |
Leases (Details)
Leases (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Lease Expiration Date | Dec. 31, 2023 | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.00% | ||
Operating Lease, Weighted Average Remaining Lease Term | 3 years 3 months 18 days | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $ 6,484,000 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 8,853,000 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 8,595,000 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 3,784,000 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 1,021,000 | ||
Thereafter | 0 | ||
Total minimum payments | 28,737,000 | ||
Less: imputed interest | (2,336,000) | ||
Less: unrealized translation loss | (236,000) | ||
Operating Lease, Liability | 26,165,000 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | (8,033,000) | $ (1,214,000) | |
Operating Lease, Liability, Noncurrent | 18,132,000 | $ 4,097,000 | |
Lessee, Operating Sublease, Description [Abstract] | |||
Operating Leases, Future Sublease Income, Remainder of Fiscal Year | 2,946,000 | ||
Operating Leases, Future Sublease Income, Due in Two Years | 4,036,000 | ||
Operating Leases, Future Sublease Income, Due in Three Years | 4,057,000 | ||
Operating Leases, Future Sublease Income, Due in Four Years | 782,000 | ||
Operating Leases, Future Sublease Income, Due in Five Years | 291,000 | ||
Thereafter | 0 | ||
Total minimum rental income | $ 12,112,000 | ||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Renewal Term | 5 years | ||
Lease, Cost [Abstract] | |||
Operating Lease, Cost | $ 900,000 | $ 1,200,000 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 0 | ||
Operating Leases, Rent Expense, Sublease Rentals | $ 600,000 | $ 700,000 | |
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 3 years | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 5 years |
Commitments and Contingencies_2
Commitments and Contingencies (Details 1) $ in Thousands | Mar. 31, 2019USD ($) |
Other Obligations | |
2019 (9 months) | $ 6,122 |
2020 | 4,574 |
2021 | 843 |
2022 | 425 |
2023 | 447 |
Thereafter | 0 |
Total minimum payments | 12,411 |
Total | |
2019 (9 months) | 74,988 |
2019 | 4,574 |
2020 | 843 |
2021 | 425 |
2022 | 447 |
Thereafter | 0 |
Total minimum payments | 81,277 |
Inventories [Member] | |
Inventory Purchase Obligations | |
2019 (9 months) | 68,866 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Total minimum payments | $ 68,866 |