Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | 1-May-15 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MX | ||
Entity Registrant Name | MAGNACHIP SEMICONDUCTOR Corp | ||
Entity Central Index Key | 1325702 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 34,056,468 | ||
Entity Public Float | $419,416,273 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $102,434 | $153,606 |
Restricted cash | 4 | |
Accounts receivable, net | 72,957 | 78,898 |
Inventories, net | 75,334 | 74,698 |
Other receivables | 10,616 | 6,011 |
Prepaid expenses | 7,560 | 9,194 |
Current deferred income tax assets | 237 | 1,348 |
Other current assets | 6,898 | 10,403 |
Total current assets | 276,036 | 334,162 |
Property, plant and equipment, net | 223,766 | 254,297 |
Intangible assets, net | 2,451 | 3,111 |
Long-term prepaid expenses | 10,916 | 16,405 |
Deferred income tax assets | 415 | 896 |
Other non-current assets | 14,147 | 16,319 |
Total assets | 527,731 | 625,190 |
Current liabilities | ||
Accounts payable | 70,767 | 75,059 |
Other accounts payable | 10,986 | 15,670 |
Accrued expenses | 81,060 | 65,494 |
Other current liabilities | 6,460 | 5,872 |
Total current liabilities | 169,273 | 162,095 |
Long-term borrowings, net | 224,035 | 223,923 |
Accrued severance benefits, net | 139,289 | 134,172 |
Other non-current liabilities | 13,636 | 23,459 |
Total liabilities | 546,233 | 543,649 |
Commitments and contingencies (Note 18) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 40,635,233 shares issued and 34,056,468 outstanding at December 31, 2014 and 40,627,131 shares issued and 34,048,366 outstanding at December 31, 2013 | 406 | 406 |
Additional paid-in capital | 118,419 | 116,222 |
Retained earnings (deficit) | -11,343 | 105,889 |
Treasury stock, 6,578,765 shares at December 31, 2014 and 2013, respectively | -90,918 | -90,918 |
Accumulated other comprehensive loss | -35,066 | -50,058 |
Total stockholders' equity (deficit) | -18,502 | 81,541 |
Total liabilities and stockholders' equity | $527,731 | $625,190 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 40,635,233 | 40,627,131 |
Common stock, shares outstanding | 34,056,468 | 34,048,366 |
Treasury stock, shares | 6,578,765 | 6,578,765 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Net sales | $698,218 | $734,177 | $807,336 |
Cost of sales | 545,356 | 579,109 | 564,089 |
Gross profit | 152,862 | 155,068 | 243,247 |
Operating expenses | |||
Selling, general and administrative expenses | 126,954 | 85,767 | 82,677 |
Research and development expenses | 92,765 | 87,862 | 76,255 |
Restructuring and impairment charges | 10,269 | 8,207 | |
Total operating expenses | 229,988 | 181,836 | 158,932 |
Operating income (loss) | -77,126 | -26,768 | 84,315 |
Interest expense, net | -16,289 | -20,360 | -22,600 |
Foreign currency gain (loss), net | -24,650 | 16,837 | 57,280 |
Loss on early extinguishment of senior notes | -32,812 | ||
Other income, net | 2,356 | 2,870 | 3,890 |
Income (loss) before income taxes | -115,709 | -60,233 | 122,885 |
Income tax expenses | 1,523 | 3,970 | 12,847 |
Net income (loss) | ($117,232) | ($64,203) | $110,038 |
Earnings (loss) per common share- | |||
Basic | ($3.44) | ($1.82) | $3.01 |
Diluted | ($3.44) | ($1.82) | $2.93 |
Weighted average number of shares- | |||
Basic | 34,055,513 | 35,232,194 | 36,567,684 |
Diluted | 34,055,513 | 35,232,194 | 37,533,391 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | ($117,232) | ($64,203) | $110,038 |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | 21,775 | -13,727 | -37,737 |
Derivative adjustments | |||
Fair valuation of derivatives | -69 | 7,497 | 5,237 |
Reclassification adjustment for loss (gain) on derivatives included in net income (loss) | -6,033 | -2,984 | 4,608 |
Investment adjustments | |||
Unrealized gain (loss) on investments | 1,201 | 606 | -15 |
Reclassification adjustment for gain on investments included in net income (loss) | -1,882 | ||
Net current-period other comprehensive income (loss) | 14,992 | -8,608 | -27,907 |
Total comprehensive income (loss) | ($102,240) | ($72,811) | $82,131 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |
Balance, beginning at Dec. 31, 2011 | $134,172 | $394 | $99,060 | $60,054 | ($11,793) | ($13,543) | |
Balance, Shares beginning at Dec. 31, 2011 | 37,907,575 | ||||||
Stock-based compensation | 2,389 | 2,389 | |||||
Issuance of common stock | 46 | 46 | |||||
Issuance of common stock, Shares | 4,499 | ||||||
Exercise of stock options | 916 | 2 | 914 | ||||
Exercise of stock options, Shares | 155,708 | 155,708 | |||||
Exercise of warrants, Shares | 52 | ||||||
Acquisition of treasury stock | -28,125 | -28,125 | |||||
Acquisition of treasury stock, Shares | -2,432,477 | ||||||
Other comprehensive income (loss), net | -27,907 | -27,907 | |||||
Net income (loss) | 110,038 | 110,038 | |||||
Balance, ending at Dec. 31, 2012 | 191,529 | 396 | 102,409 | 170,092 | -39,918 | -41,450 | |
Balance, Shares ending at Dec. 31, 2012 | 35,635,357 | ||||||
Stock-based compensation | 2,213 | 2,213 | |||||
Exercise of stock options | 4,546 | 6 | 4,540 | ||||
Exercise of stock options, Shares | 579,476 | 579,476 | |||||
Exercise of warrants | 7,064 | 4 | 7,060 | ||||
Exercise of warrants, Shares | 448,281 | ||||||
Acquisition of treasury stock | -51,000 | 0 | -51,000 | ||||
Acquisition of treasury stock, Shares | -2,614,748 | -2,614,748 | |||||
Other comprehensive income (loss), net | -8,608 | -8,608 | |||||
Net income (loss) | -64,203 | -64,203 | |||||
Balance, ending at Dec. 31, 2013 | 81,541 | 406 | 116,222 | 105,889 | -90,918 | -50,058 | |
Balance, Shares ending at Dec. 31, 2013 | 34,048,366 | 34,048,366 | |||||
Stock-based compensation | 2,072 | 2,072 | |||||
Exercise of stock options | 106 | 0 | 106 | ||||
Exercise of stock options, Shares | 6,795 | 6,795 | |||||
Exercise of warrants | 19 | 0 | 19 | ||||
Exercise of warrants, Shares | 1,307 | ||||||
Acquisition of treasury stock | 0 | ||||||
Other comprehensive income (loss), net | 14,992 | 14,992 | |||||
Net income (loss) | -117,232 | -117,232 | |||||
Balance, ending at Dec. 31, 2014 | ($18,502) | $406 | $118,419 | ($11,343) | ($90,918) | ($35,066) | |
Balance, Shares ending at Dec. 31, 2014 | 34,056,468 | 34,056,468 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net income (loss) | ($117,232) | ($64,203) | $110,038 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 29,989 | 32,726 | 32,066 |
Provision for severance benefits | 17,703 | 23,169 | 21,530 |
Bad debt expenses (reversal of allowance) | 3,718 | -85 | -6 |
Amortization of debt issuance costs and original issue discount | 614 | 890 | 1,009 |
Loss (gain) on foreign currency, net | 32,760 | -18,329 | -64,886 |
Gain on disposal of investments | -1,524 | ||
Impairment charges | 10,269 | 6,378 | |
Stock-based compensation | 2,072 | 2,213 | 2,389 |
Loss on early extinguishment of senior notes | 32,812 | ||
Other | 1,375 | 1,479 | -663 |
Changes in operating assets and liabilities | |||
Accounts receivable | -1,668 | 26,756 | 5,758 |
Inventories, net | -3,380 | 9,593 | -12,495 |
Other receivables | -5,052 | -3,964 | -337 |
Other current assets | 9,308 | 11,026 | 10,835 |
Deferred tax assets | 1,458 | 1,470 | 1,914 |
Accounts payable | -1,526 | -3,111 | -1,737 |
Other accounts payable | -13,046 | -10,376 | -11,007 |
Accrued expenses | 208 | 20,974 | 24,304 |
Other current liabilities | 1,179 | -387 | 9,497 |
Other non-current liabilities | 1,963 | 6,073 | -3,329 |
Payment of severance benefits | -6,650 | -6,130 | -6,997 |
Other | -7 | -219 | 223 |
Net cash provided by (used in) operating activities | -37,469 | 68,755 | 118,106 |
Cash flows from investing activities | |||
Decrease in restricted cash | 4 | 125 | 13,021 |
Increase in restricted cash | -6,238 | ||
Proceeds from disposal of plant, property and equipment | 20 | 94 | 937 |
Proceeds from disposal of investments | 2,003 | ||
Purchase of property, plant and equipment | -17,419 | -42,483 | -58,538 |
Payment for intellectual property registration | -958 | -605 | -882 |
Payment for purchase of Dawin, net of cash acquired | -8,642 | ||
Payment of guarantee deposits | -323 | -1,365 | -320 |
Other | -25 | 131 | 118 |
Net cash used in investing activities | -16,698 | -44,103 | -60,544 |
Cash flows from financing activities | |||
Proceeds from issuance of common stock | 68 | 11,375 | 962 |
Proceeds from issuance of senior notes | 218,836 | ||
Repayment of long-term borrowings | -229,333 | ||
Repayment of obligations under capital lease | -2,968 | ||
Acquisition of treasury stock | -51,000 | -28,125 | |
Net cash provided by (used in) financing activities | 68 | -50,122 | -30,131 |
Effect of exchange rates on cash and cash equivalents | 2,927 | -3,162 | -7,304 |
Net increase (decrease) in cash and cash equivalents | -51,172 | -28,632 | 20,127 |
Cash and cash equivalents | |||
Beginning of the period | 153,606 | 182,238 | 162,111 |
End of the period | 102,434 | 153,606 | 182,238 |
Supplemental cash flow information | |||
Cash paid for interest | 14,817 | 16,223 | 21,955 |
Cash paid (refunded) for income taxes | 875 | 6,267 | -609 |
Non-cash investing and financing activities | |||
Property, plant and equipment additions in other accounts payable | $688 | $116 | $2,989 |
Business_Basis_of_Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies | ||||
Business | |||||
MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (“IoT”) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory, and RF applications. The Company’s business is comprised of three key business lines: Display Solutions, Power Solutions and Semiconductor Manufacturing Services. The Company’s Display Solutions products provide flat panel display solutions to major suppliers of large and small flat panel display. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in consumer, communication and industrial applications. The Company’s Semiconductor Manufacturing Services provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve the consumer, computing, communication, industrial, automotive and IoT applications. | |||||
Basis of Presentation | |||||
The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||||
Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. | |||||
Principles of Consolidation | |||||
The consolidated financial statements include the accounts of the Company including its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | |||||
Business Combination | |||||
Pursuant to accounting guidance for ASC 805, “Business Combinations” (“ASC 805”), the Company (i) applies the definition of “business” and “business combination” as prescribed by the revised guidance; (ii) recognizes assets acquired, liabilities assumed (including goodwill) measured at fair value at the acquisition date; (iii) recognizes acquisition-related expenses in earnings; and (iv) capitalizes technology and customer relationships at fair value as intangible assets. | |||||
Use of Estimates | |||||
The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, stock based compensation, property plant and equipment, intangible assets, other long-lived assets, long-term employee benefits, contingencies liabilities, and assumptions used in the calculation of income taxes and sales incentives, among others. Although these estimates and assumptions are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be significantly different from the estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |||||
Foreign Currency Translation | |||||
The Company has assessed in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), the functional currency of each of its subsidiaries in Luxembourg and the Netherlands and has designated the U.S. dollar to be their respective functional currencies. The Company and its other subsidiaries are utilizing their local currencies as their functional currencies. The financial statements of the subsidiaries in functional currencies other than the U.S. dollar are translated into the U.S. dollar in accordance with ASC 830. All the assets and liabilities are translated to the U.S. dollar at the end-of-period exchange rates. Capital accounts are determined to be of a permanent nature and are therefore translated using historical exchange rates. Revenues and expenses are translated using average exchange rates for the respective periods. Foreign currency translation adjustments arising from differences in exchange rates from period to period are included in the foreign currency translation adjustment account in accumulated comprehensive income (loss) of stockholders’ equity. Gains and losses due to transactions in currencies other than the functional currency are included as a component of other income (expense) in the statement of operations. | |||||
Cash and Cash Equivalents | |||||
Cash equivalents consist of highly liquid investments with an original maturity date of three months or less when purchased. | |||||
Accounts Receivable Reserves | |||||
An allowance for doubtful accounts is provided based on the aggregate estimated uncollectability of the Company’s accounts receivable. The Company also records an estimate for sales returns, included within accounts receivable, net, based on the historical experience of the amount of goods that will be returned and refunded or replaced. In addition, the Company also includes in accounts receivable, an allowance for additional products that may have to be provided, free of charge, to compensate customers for products that do not meet previously agreed yield criteria, the low yield compensation reserve. | |||||
Sales of Accounts Receivable | |||||
The Company accounts for transfers of financial assets under ASC 860, “Transfers and Servicing,” as either sales or financings. Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constraints the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. If the transfer does not meet these criteria, the transfer is accounted for as a financing. Financial assets that are treated as sales are removed from the Company’s accounts with any realized gain or loss reflected in earning during the period of sale. | |||||
Inventories | |||||
Inventories are stated at the lower of cost or market, using the average cost method, which approximates the first in, first out method (“FIFO”). If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable value, and the difference is recognized as a loss on valuation of inventories within cost of sales. Inventory reserves are established when conditions indicate that the net realizable value is less than costs due to physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Reserves are also established for excess inventory based on inventory levels in excess of six months of projected demand for each specific product. | |||||
In addition, as prescribed in ASC 330, “Inventory,” the cost of inventories is determined based on the normal capacity of each fabrication facility. In case the capacity utilization is lower than a certain level that management believes to be normal, the fixed overhead costs per production unit which exceeds those under normal capacity are charged to cost of sales rather than capitalized as inventories. | |||||
Property, Plant and Equipment | |||||
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. | |||||
Buildings | 30 - 40 years | ||||
Building related structures | 10 - 20 years | ||||
Machinery and equipment | 10 - 12 years | ||||
Vehicles and others | 5 years | ||||
Routine maintenance and repairs are charged to expense as incurred. Expenditures that enhance the value or significantly extend the useful lives of the related assets are capitalized. | |||||
Impairment of Long-Lived Assets | |||||
The Company reviews property, plant and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”). Recoverability is measured by comparing its carrying amount with the future net undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured as the difference between the carrying amount of the assets and the fair value of assets using the present value of the future net cash flows generated by the respective long-lived assets. | |||||
Restructuring Charges | |||||
The Company recognizes restructuring charges in accordance with ASC 420, “Exit or Disposal Cost Obligations” (“ASC 420”). Certain costs and expenses related to exit or disposal activities are recorded as restructuring charges when liabilities for those costs and expenses are incurred. | |||||
Lease Transactions | |||||
The Company accounts for lease transactions as either operating leases or capital leases, depending on the terms of the underlying lease agreements. Machinery and equipment acquired under capital lease agreements are recorded at the lower of the present value of future minimum lease payments and estimated fair value of leased property and depreciated using the straight-line method over their estimated useful lives. In addition, the aggregate lease payments are recorded as capital lease obligations, net of unaccrued interest. Interest is amortized over the lease period using the effective interest rate method. Leases that do not qualify as capital leases are classified as operating leases, and the related rental payments are expensed on a straight-line basis over the shorter of the estimated useful lives of the leased property and the lease term. | |||||
Software | |||||
The Company capitalizes certain external costs that are incurred to purchase and implement internal-use computer software. Direct costs relating to the development of software for internal use are capitalized after technological feasibility has been established, in accordance with ASC 350, “Intangibles-Goodwill and Other” (“ASC 350”). Depreciation is recorded on a straight-line basis over the software’s estimated useful life, which is usually five years. | |||||
Intangible Assets | |||||
Intangible assets other than intellectual property include technology and customer relationships which are amortized on a straight-line basis over periods ranging from one to five years. Intellectual property assets acquired represent rights under patents, trademarks and property use rights and are amortized over their respective periods of benefit, ranging up to ten years, on a straight-line basis. | |||||
Goodwill and Acquired Intangible Assets | |||||
The Company records goodwill when the purchase price of an acquisition exceeds the fair value of the net tangible and intangible assets as of the date of acquisition. Goodwill is subject to impairment testing using a two-step process after considering a qualitative assessment. The first step of the goodwill impairment test is to identify potential impairment by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is not required. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value (i.e., the fair value of reporting unit less the fair value of the unit’s assets and liabilities, including identifiable intangible assets) of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying value of goodwill exceeds its implied fair value, the excess is required to be recorded as an impairment charge in earnings. The Company performs its annual goodwill impairment analysis during the fourth quarter. Goodwill must be tested between annual tests if events or changes in circumstances indicate that the asset might be impaired. The Company reviews changes in the business climate, changes in market capitalization, legal factors, operating performance indicators and competition, among other factors and their potential impact on the Company’s fair value determination. | |||||
Fair Value Disclosures of Financial Instruments | |||||
The Company follows ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in US GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by ASC 820 are: | |||||
Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||
Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | |||||
Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. | |||||
As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables, accounts payable and other accounts payable approximate their fair values because of the short maturity of these instruments. | |||||
Accrued Severance Benefits | |||||
The majority of accrued severance benefits is for employees in the Company’s Korean subsidiary, MagnaChip Semiconductor Ltd. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of December 31, 2014, 98% of all employees of the Company were eligible for severance benefits. | |||||
Accrued severance benefits are funded through a group severance insurance plan. The amounts funded under this insurance plan are classified as a reduction of the accrued severance benefits. Subsequent accruals are to be funded at the discretion of the Company. | |||||
In accordance with the National Pension Act of the Republic of Korea, a certain portion of accrued severance benefits is deposited with the National Pension Fund and deducted from the accrued severance benefits. The contributed amount is paid to employees from the National Pension Fund upon their retirement. | |||||
Revenue Recognition | |||||
Revenue is recognized when there is persuasive evidence of an arrangement, the price to the buyer is fixed or determinable, delivery has occurred and collectability of the sales price is reasonably assured. Revenue from the sale of products is recognized when title and risk of loss transfers to the customer, which is generally when the product is shipped to or accepted by the customer depending on the terms of the arrangement. | |||||
A portion of the Company’s sales are made through distributors for which revenue recognition criteria are usually met when the product is shipped to or accepted by the distributors, consistent with the principles described above. However, the risk of loss may not pass upon shipment of products to the distributor due to a variety of reasons, including the nature of the business arrangement with the distributor. For example, the financial condition of a distributor may indicate that payments by the distributor to the Company are contingent on resale of products to an end customer. In this situation, the Company defers recognition of revenue and cost of revenue on transactions with such distributor until the product has been resold to the end customer. | |||||
In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer is presented in the statements of operations on a net basis (excluded from revenues). | |||||
The Company provides a warranty, under which customers can return defective products. The Company estimates the costs related to those defective product returns and records them as a component of cost of sales. | |||||
In addition, the Company offers sales returns (other than those that relate to defective products under warranty), yield provisions, cash discounts for early payments and certain allowances to its customers, including distributors. The Company records reserves for those returns, discounts and allowances as a deduction from sales, based on historical experience and other quantitative and qualitative factors. | |||||
All amounts billed to a customer related to shipping and handling are classified as sales while all costs incurred by the Company for shipping and handling are classified as selling, general and administrative expenses. The amounts charged to selling, general and administrative expenses were $3,386 thousand, $2,850 thousand, and $3,057 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Derivative Financial Instruments | |||||
The Company applies the provisions of ASC 815, “Derivatives and Hedging” (“ASC 815”). This Statement requires the recognition of all derivative instruments as either assets or liabilities measured at fair value. | |||||
Under the provisions of ASC 815, the Company may designate a derivative instrument as hedging the exposure to variability in expected future cash flows that are attributable to a particular risk (a “cash flow hedge”) or hedging the exposure to changes in the fair value of an asset or a liability (a “fair value hedge”). Special accounting for qualifying hedges allows the effective portion of a derivative instrument’s gains and losses to offset related results on the hedged item in the consolidated statements of operations and requires that a company formally document, designate and assess the effectiveness of the transactions that receive hedge accounting treatment. Both at the inception of a hedge and on an ongoing basis, a hedge must be expected to be highly effective in achieving offsetting changes in cash flows or fair value attributable to the underlying risk being hedged. If the Company determines that a derivative instrument is no longer highly effective as a hedge, it discontinues hedge accounting prospectively and future changes in the fair value of the derivative are recognized in current earnings. The Company assesses hedge effectiveness at the end of each quarter. | |||||
In accordance with ASC 815, changes in the fair value of derivative instruments that are cash flow hedges are recognized in accumulated other comprehensive income (loss) and reclassified into earnings in the period in which the hedged item affects earnings. Ineffective portions of a derivative instrument’s change in fair value are immediately recognized in earnings. Derivative instruments that do not qualify, or cease to qualify, as hedges must be adjusted to fair value and the adjustments are recorded through net income (loss). | |||||
The cash flows from derivative instruments receiving hedge accounting treatment are classified in the same categories as the hedged items in the consolidated statements of cash flows. | |||||
Advertising | |||||
The Company expenses advertising costs as incurred. Advertising expense was approximately $155 thousand, $161 thousand and $142 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Product Warranties | |||||
The Company records, in other current liabilities, warranty liabilities for the estimated costs that may be incurred under its basic limited warranty. The standard limited warranty period is one year for the majority of products. This warranty covers defective products, and related liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liability include historical and anticipated rates of warranty claims and repair or replacement costs per claim to satisfy the Company’s warranty obligation. As these factors are impacted by actual experience and future expectations, the Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts when necessary. | |||||
Research and Development | |||||
Research and development costs are expensed as incurred and include wafers, masks, employee expenses, contractor fees, building costs, utilities and administrative expenses. | |||||
Licensed Patents and Technologies | |||||
The Company has entered into a number of royalty agreements to license patents and technology used in the design of its products. The Company carries two types of royalties: lump-sum and running basis. Lump-sum royalties which require initial payments, usually paid in installments, represent a non-refundable commitment, such that the total present value of these payments is recorded as a prepaid expense and a liability upon execution of the agreements and the costs are amortized over the contract period using the straight-line method and charged to research and development expenses in the consolidated statements of operations. | |||||
Running royalties are paid based on the revenue of related products sold by the Company. | |||||
Stock-Based Compensation | |||||
The Company follows the provisions of ASC 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. As permitted under ASC 718, the Company elected to recognize compensation expense for all options with graded vesting based on the graded attribution method. | |||||
The Company uses the Black-Scholes option-pricing model to measure the grant-date-fair-value of options. The Black-Scholes model requires certain assumptions to determine an option’s fair value, including expected term, risk free interest, expected volatility and fair value of underlying common share. The expected term of each option grant was based on employees’ expected exercises and post-vesting employment termination behavior and the risk free interest rate was based on the U.S. Treasury yield curve for the period corresponding with the expected term at the time of grant. The expected volatility was estimated using historical volatility of share prices of similar public entities. No dividends were assumed for this calculation of option value. | |||||
Earnings per Share | |||||
In accordance with ASC 260, “Earnings Per Share” (“ASC 260”), the Company computes basic earnings per share by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution of potential common stock outstanding during the period. In determining the hypothetical shares repurchased, the Company uses the average share price for the period. In the case that earnings are negative, any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. | |||||
Income Taxes | |||||
The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in a company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when it is necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. | |||||
The Company recognizes and measures uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step process. In the first step, recognition, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step addresses measurement of a tax position that meets the more-likely-than-not criteria. The tax position is measured at the largest amount of benefit that has a likelihood of greater than 50 percent of being realized upon ultimate settlement. | |||||
Concentration of Credit Risk | |||||
The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral for customers on accounts receivable. The Company maintains reserves for potential credit losses, which are periodically reviewed. | |||||
Recent Accounting Pronouncements | |||||
In April 2015, the FASB issued Accounting Standards Update. 2015-03, “Interest—Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company is currently evaluating the impact of the adoption of ASU 2015-03 on its consolidated financial statements. | |||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Presentation of Financial Statements – Going Concern” (“ASU 2014-15”), which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on its consolidated financial statements. | |||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements | 2. Fair Value Measurements | ||||||||||||||||||||
ASC 820 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820 requires, among other things, the Company’s valuation techniques used to measure fair value to maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||
As of December 31, 2014, the Company did not have any assets measured at fair value on a recurring basis other than cash and cash equivalents, restricted cash, accounts receivable, other receivables, accounts payable, and other accounts payable, fair value of which approximate carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1). | |||||||||||||||||||||
As of December 31, 2013, the following table represents the Company’s assets measured at fair value on a recurring basis and the basis for that measurement: | |||||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||||||
December 31, 2013 | Measurement | Active Markets | Other | Unobservable | |||||||||||||||||
December 31, 2013 | for Identical | Observable | Inputs | ||||||||||||||||||
Asset (Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Available-for-sale securities (other non-current assets) | $ | 1,236 | $ | 1,236 | $ | 1,236 | $ | — | $ | — | |||||||||||
Derivative assets (other current assets) | 4,912 | 4,912 | — | 4,912 | — | ||||||||||||||||
Items not reflected in the table above include cash and cash equivalents, restricted cash, accounts receivable, other receivables, accounts payable, and other accounts payable, fair value of which approximate carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1). | |||||||||||||||||||||
Fair Value of Long-term Borrowings | |||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||
Long-term Borrowings: | |||||||||||||||||||||
6.625% senior notes due July 2021 (Level 2) | $ | 224,035 | $ | 206,100 | $ | 223,923 | $ | 229,500 | |||||||||||||
The Company used net proceeds from the issuance of the Company’s 6.625% senior notes due July 15, 2021 (the “2021 Notes”) of $218.8 million, which represents $225.0 million of principal amount net of $1.1 million of original issue discount and $5.1 million of debt issuance costs, together with cash on hand, to repay all of the Company’s then outstanding 10.5% senior notes due April 15, 2018 (the “2018 Notes”), including applicable premium and accrued interest, and to pay related fees and expenses of the 2021 Notes offering. For further description of the senior notes, see Note 10, “Long-term Borrowings”. | |||||||||||||||||||||
Fair Values Measured on a Non-recurring Basis | |||||||||||||||||||||
The Company’s non-financial assets, such as property, plant and equipment, goodwill and intangible assets are recorded at fair value upon acquisition and are remeasured at fair value only if an impairment charge is recognized. The Company uses unobservable inputs (Level 3) to the valuation methodologies that were significant to the fair value measurements, and the valuations required management judgment due to the absence of quoted market prices. As of December 31, 2014, the Company recognized $10,269 thousand of impairment charges, which were incurred due to the closure of its six-inch fabrication facility. See Note 5, “Property, Plant and Equipment” for additional information. In 2013, the Company recognized $5,870 thousand of impairment charges related to the Dawin acquisition and restructuring its fabrication facility. See Note 6, “Intangible Assets” for additional information. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Accounts Receivable | 3. Accounts Receivable | ||||||||
Accounts receivable as of December 31, 2014 and 2013 consisted of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 74,850 | $ | 81,862 | |||||
Notes receivable | 257 | 460 | |||||||
Less: | |||||||||
Allowances for doubtful accounts | (263 | ) | (268 | ) | |||||
Sales return reserve | (787 | ) | (1,205 | ) | |||||
Low yield compensation reserve | (1,100 | ) | (1,951 | ) | |||||
Accounts receivable, net | $ | 72,957 | $ | 78,898 | |||||
Changes in allowance for doubtful accounts for the years ended December 31, 2014 and 2013 are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (268 | ) | $ | (401 | ) | |||
Reversal of allowance (Bad debt expense) | (3,718 | ) | 115 | ||||||
Write off | 3,508 | 18 | |||||||
Translation adjustments | 215 | — | |||||||
Ending balance | $ | (263 | ) | $ | (268 | ) | |||
Changes in sales return reserve for the years ended December 31, 2014 and 2013 are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (1,205 | ) | $ | (1,264 | ) | |||
Provisions | (3,224 | ) | (1,218 | ) | |||||
Usage | 3,598 | 1,296 | |||||||
Translation adjustments | 44 | (19 | ) | ||||||
Ending balance | $ | (787 | ) | $ | (1,205 | ) | |||
Changes in low yield compensation reserve for the years ended December 31, 2014 and 2013 are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (1,951 | ) | $ | (3,206 | ) | |||
Provisions | (766 | ) | (1,868 | ) | |||||
Usage | 1,563 | 3,150 | |||||||
Translation adjustments | 54 | (27 | ) | ||||||
Ending balance | $ | (1,100 | ) | $ | (1,951 | ) | |||
The Company has entered into an agreement to sell selected trade accounts receivable to a financial institution from time to time since March 2012. After the sale, the Company does not retain any interests in the receivables and the applicable financial institution collects these accounts receivable directly from the customer. The proceeds from the sales of these accounts receivable totaled $22,256 thousand and $28,869 thousand for the years ended December 31, 2014 and 2013, respectively and these sales resulted in pre-tax losses of $64 thousand and $73 thousand for the years ended December 31, 2014 and 2013, respectively, which are included in selling, general and administrative expenses in the consolidated statements of operations. Net proceeds of these accounts receivable sale program are recognized in the consolidated statements of cash flows as part of operating cash flows. | |||||||||
Receivable Discount Programs | |||||||||
The Company uses receivable discount programs with certain customers. While these discount arrangements allow the Company to accelerate collection of customers’ receivables, there can be no assurance that these programs will continue in the future. |
Inventories
Inventories | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventories | 4. Inventories | ||||||||
Inventories as of December 31, 2014 and 2013 consist of the following: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Finished goods | 40,404 | 43,734 | |||||||
Semi-finished goods and work-in-process | 68,153 | 92,030 | |||||||
Raw materials | 7,520 | 9,464 | |||||||
Materials in-transit and other | 6,745 | 1,870 | |||||||
Less: inventory reserve | (47,488 | ) | (72,400 | ) | |||||
Inventories, net | $ | 75,334 | $ | 74,698 | |||||
Changes in inventory reserve for the years ended December 31, 2014 and 2013 are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (72,400 | ) | $ | (25,429 | ) | |||
Change in reserve | (883 | ) | (48,015 | ) | |||||
Write off | 23,765 | 3,086 | |||||||
Translation adjustments | 2,030 | (2,042 | ) | ||||||
Ending balance | $ | (47,488 | ) | $ | (72,400 | ) | |||
Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods and work-in-process. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped. |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 5. Property, Plant and Equipment | ||||||||
Property, plant and equipment as of December 31, 2014 and 2013 are comprised of the following: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Buildings and related structures | $ | 70,552 | $ | 81,050 | |||||
Machinery and equipment | 269,031 | 269,840 | |||||||
Vehicles and others | 24,812 | 22,397 | |||||||
364,395 | 373,287 | ||||||||
Less: accumulated depreciation | (157,341 | ) | (136,397 | ) | |||||
Land | 16,712 | 17,407 | |||||||
Property, plant and equipment, net | $ | 223,766 | $ | 254,297 | |||||
Aggregate depreciation expenses totaled $28,475 thousand and $25,934 thousand for the years ended December 31, 2014 and 2013, respectively. | |||||||||
During the fourth quarter of 2014, the Company recognized $10,269 thousand of impairment charges, which were incurred due to the closure of its six-inch fabrication facility. The impairment charges primarily resulted from $8,239 thousand of impairment to building, $1,763 thousand of impairment of machinery and equipment and $267 thousand of impairment of other tangible assets. | |||||||||
During the fourth quarter of 2013, the Company recorded $508 thousand in impairment charges related to the impairment of certain machinery and equipment which were purchased as part of the Dawin acquisition. |
Intangible_Assets
Intangible Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Intangible Assets | 6. Intangible Assets | ||||||||
Intangible assets as of December 31, 2014 and 2013 are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Technology | $ | 19,683 | $ | 20,081 | |||||
Customer relationships | 28,269 | 29,444 | |||||||
Intellectual property assets | 8,359 | 7,829 | |||||||
Less: accumulated amortization | (53,860 | ) | (54,243 | ) | |||||
Intangible assets, net | $ | 2,451 | $ | 3,111 | |||||
Aggregate amortization expenses for intangible assets totaled $1,514 thousand and $6,792 thousand for the years ended December 31, 2014 and 2013, respectively. The aggregate amortization expense of intangible assets for the next five years are estimated to be $316 thousand, $315 thousand, $315 thousand, $315 thousand and $314 thousand, for the years ended December 31, 2015, 2016, 2017, 2018 and 2019, respectively. | |||||||||
During the fourth quarter of 2013, the Company’s management became aware that certain technology being developed in relation to the Dawin acquisition could no longer be used. The Company considered this event as an indicator of impairment in performing its annual analysis for potential impairment of its goodwill, which included examining, based on factors and conditions then existing, the impact of current general economic conditions on its future prospects. Based on this analysis, the Company determined that goodwill and certain technology associated with the Dawin acquisition were impaired and recorded an impairment charge of $3,389 thousand related to goodwill and $1,864 thousand of intangible assets. | |||||||||
In addition, the Company recognized an impairment charge of $617 thousand related to certain existing technology from restructuring its fabrication facility in 2013. |
Accrued_Expenses
Accrued Expenses | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accrued Expenses | 7. Accrued Expenses | ||||||||
Accrued expenses as of December 31, 2014 and 2013 are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 18,654 | $ | 19,869 | |||||
Withholding tax levied on intercompany interest income | 27,497 | 23,872 | |||||||
Interest on senior notes | 7,040 | 6,749 | |||||||
Settlement obligations | 8,976 | 6,460 | |||||||
Outside service fees | 10,640 | 1,462 | |||||||
Others | 8,253 | 7,082 | |||||||
Accrued expenses | $ | 81,060 | $ | 65,494 | |||||
Settlement obligations included in the table above relate to claims involving the Company’s products that may have caused a failure in the customer’s product. Although the Company does not agree with the claim, as its product met the customer’s specifications, the Company considered a number of factors and decided not to dispute the claim but make certain in-kind payments as demanded by the customer. These settlement obligations are accrued when they are deemed probable and can be reasonably estimated. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Derivative Financial Instruments | 8. Derivative Financial Instruments | ||||||||||||||||||||||||||||
The Company’s Korean subsidiary from time to time has entered into forward and zero cost collar contracts to hedge the risk of changes in the functional-currency-equivalent cash flows attributable to currency rate changes on U.S. dollar denominated revenues. | |||||||||||||||||||||||||||||
The Company did not have any derivative contracts in effect as of December 31, 2014. | |||||||||||||||||||||||||||||
The forward and zero cost collar contracts qualify as cash flow hedges under ASC 815, since at both the inception of the contracts and on an ongoing basis, the hedging relationship was and is expected to be highly effective in achieving offsetting cash flows attributable to the hedged risk during the term of the contracts. The Company is utilizing the “hypothetical derivative” method to measure the effectiveness by comparing the changes in value of the actual derivative versus the change in fair value of the “hypothetical derivative.” | |||||||||||||||||||||||||||||
The fair values of the Company’s outstanding forward and zero cost collar contracts recorded as assets as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Asset Derivatives: | |||||||||||||||||||||||||||||
Zero cost collars | Other current assets | $ | — | $ | 4,912 | ||||||||||||||||||||||||
Offsetting of derivative assets as of December 31, 2013 is as follows: | |||||||||||||||||||||||||||||
As of December 31, 2013 | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset | Net amount | ||||||||||||||||||||||||
recognized | offset in the | assets/liabilities | in the balance sheets | ||||||||||||||||||||||||||
assets/liabilities | balance sheets | presented in the | |||||||||||||||||||||||||||
balance sheets | Financial | Cash collateral | |||||||||||||||||||||||||||
instruments | received/pledged | ||||||||||||||||||||||||||||
Asset Derivatives: | |||||||||||||||||||||||||||||
Zero cost collars | $ | 4,912 | $ | — | $ | 4,912 | $ | — | $ | — | $ | 4,912 | |||||||||||||||||
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative, representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness, are recognized in current earnings. | |||||||||||||||||||||||||||||
The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Derivatives in | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||||||||||||||
ASC 815 Cash | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | ||||||||||||||||||||||||
Flow Hedging | Recognized in | Reclassified from | Reclassified from | Recognized in | Recognized in | ||||||||||||||||||||||||
Relationships | AOCI on | AOCI into | AOCI into | Statement of | Statement of | ||||||||||||||||||||||||
Derivatives | Statement of | Statement of | Operations on | Operations on | |||||||||||||||||||||||||
(Effective Portion) | Operations | Operations | Derivative | Derivatives | |||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective | (Ineffective Portion | ||||||||||||||||||||||||||
Portion and | and Amount | ||||||||||||||||||||||||||||
Amount | Excluded from | ||||||||||||||||||||||||||||
Excluded from | Effectiveness Testing) | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Testing) | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Forward | $ | — | $ | 3,405 | Net sales | $ | — | $ | 3,484 | Other income (expenses)— | $ | — | $ | 412 | |||||||||||||||
Others | |||||||||||||||||||||||||||||
Zero cost collars | (69 | ) | 4,092 | Net sales | 6,033 | (500 | ) | Other income (expenses)— | (12 | ) | 222 | ||||||||||||||||||
Others | |||||||||||||||||||||||||||||
Total | $ | (69 | ) | $ | 7,497 | $ | 6,033 | $ | 2,984 | $ | (12 | ) | $ | 634 | |||||||||||||||
As of December 31, 2014, the amount expected to be reclassified from accumulated other comprehensive income into earnings within the next twelve months is $485 thousand. | |||||||||||||||||||||||||||||
On September 1, 2014, the Company and the counterparty, the Goldman Sachs International bank (“GS”), mutually agreed to terminate a zero cost collar contract under termination provisions of the International Swaps and Derivatives Association (“ISDA”) agreement. In connection with this termination, the Company received $1,050 thousand for settlement proceeds from GS. | |||||||||||||||||||||||||||||
On September 30, 2014, the Company and the counterparty, UBS AG, Seoul Branch (“UBS”), mutually agreed to terminate a zero cost collar contract under termination provisions of the ISDA agreement. In connection with this termination, the Company received $430 thousand for settlement proceeds from UBS. |
Product_Warranties
Product Warranties | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Guarantees [Abstract] | |||||||||
Product Warranties | 9. Product Warranties | ||||||||
Changes in accrued warranty liabilities for each period are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 877 | $ | 1,223 | |||||
Provisions | 7,194 | 1,917 | |||||||
Usage | (4,923 | ) | (2,268 | ) | |||||
Translation adjustments | (175 | ) | 5 | ||||||
Ending balance | $ | 2,973 | $ | 877 | |||||
Longterm_Borrowings
Long-term Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term Borrowings | 10. Long-term Borrowings | ||||||||
Long-term borrowings as of December 31, 2014 and 2013 are as follows: | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
6.625% senior notes due July 2021 (the 2021 Notes) | $ | 225,000 | $ | 225,000 | |||||
Discount on senior notes | (965 | ) | (1,077 | ) | |||||
Long-term borrowings, net of unamortized discount | $ | 224,035 | $ | 223,923 | |||||
6.625% Senior Notes | |||||||||
On July 18, 2013, the Company issued $225,000,000 aggregate principal amount of the 2021 Notes at a price of 99.5%. Interest on the 2021 Notes accrues at a rate of 6.625% per annum, payable semi-annually on January 15 and July 15 of each year, beginning on January 15, 2014. | |||||||||
In connection with the issuance of the 2021 Notes, the Company capitalized certain costs and fees, which are being amortized using the effective interest method over its respective term, 2013 to 2021. Amortization costs, which were included in interest expense in the accompanying statements of operations, amounted to $503 thousand for the year ended December 31, 2014. The remaining capitalized costs as of December 31, 2014, which were included in other non-current assets in the consolidated balance sheet, were $4,320 thousand. | |||||||||
The Company used net proceeds from the issuance of the 2021 Notes of $218.8 million, which represents $225.0 million of principal amount net of $1.1 million of original issue discount and $5.1 million of debt issuance costs, together with cash on hand, to repay all of the then outstanding 2018 Notes, including applicable premium and accrued interest, and to pay related fees and expenses of the 2021 Notes offering. | |||||||||
In connection with the refinancing of the Company’s senior notes, the Company recognized $32.8 million of loss on early extinguishment of senior notes, which consisted of $23.8 million from the applicable premium, $5.3 million from write-off of debt issuance costs, $1.9 million from write-off of discounts and $1.8 million of interest incurred during the notice period. | |||||||||
The Company can optionally redeem all or a part of the 2021 Notes according to the following schedule: (i) at any time prior to July 15, 2016, the Company may on any one or more occasions redeem up to 35% of the aggregate principal amount of 2021 Notes issued under that certain Indenture, dated as of July 18, 2013, by and between the Company and Wilmington Trust, National Association, as trustee (the “Trustee”), as supplemented by that certain First Supplemental Indenture, dated as of March 27, 2014 (collectively, the “Indenture”), related to the 2021 Notes at a redemption price equal to 106.625% of the principal amount of the 2021 Notes redeemed, plus accrued and unpaid interest and special interest, if any, to the date of redemption with the net proceeds of a qualified equity offering; (ii) at any time prior to July 15, 2017, the Company may on any one or more occasions redeem all or a part of the 2021 Notes at a redemption price equal to 100% of the principal amount of the notes redeemed, plus the applicable premium as of, and accrued and unpaid interest and special interest, if any, to the date of redemption; and (iii) on or after July 15, 2017, the Company may on any one or more occasions redeem all or a part of the 2021 Notes, at a redemption price equal to 103.313%, 101.656% and 100% of the principal amount of the notes redeemed on or after July 15, 2017, 2018 and 2019 and thereafter, respectively, plus accrued and unpaid interest and special interest, if any, on the notes redeemed, to the applicable date of redemption. | |||||||||
The indenture relating to the 2021 Notes contains covenants that limit ability of the Company and its restricted subsidiaries to: (i) declare or pay any dividend or make any payment or distribution on account of or purchase or redeem the Company’s capital stock or equity interests of the restricted subsidiaries; (ii) make any principal payment on, or redeem or repurchase, prior to any scheduled repayment or maturity, any subordinated indebtedness; (iii) make certain investments; (iv) incur additional indebtedness and issue certain types of capital stock; (v) create or incur any lien (except for permitted liens) that secures obligations under any indebtedness; (vi) merge with or into or sell all or substantially all of the Company’s assets to other companies; (vii) enter into certain types of transactions with affiliates; (viii) guarantee the payment of any indebtedness; (ix) enter into sale-leaseback transactions; (x) enter into agreements that would restrict the ability of the restricted subsidiaries to make distributions with respect to their equity to the Company or other restricted subsidiaries, to make loans to the Company or other restricted subsidiaries or to transfer assets to the Company or other restricted subsidiaries; and (xi) designate unrestricted subsidiaries. | |||||||||
These covenants are subject to a number of exceptions and qualifications. Certain of these restrictive covenants will terminate if the notes are rated investment grade at any time. | |||||||||
As disclosed in the Company’s Form 8-K filed on June 25, 2014, the Company received a notice of default on June 20, 2014 (the “10-K and Q1 10-Q Notice of Default”) from the Trustee under the Indenture. The 10-K and Q1 10-Q Notice of Default related to the failure by the Company, pursuant to Section 4.03 of the Indenture, to file with the SEC its Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and its Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2014 (the “Initial Reporting Defaults”). The Company did not cure the Initial Reporting Defaults within the applicable 60-day grace period and the Initial Reporting Defaults ripened into Events of Default. The Company elected, as the sole and exclusive remedy for the Events of Default, to pay additional interest on the 2021 Notes at a rate equal to 0.25% per annum of the principal amount of the 2021 Notes (the “Additional Interest”) for a period of up to180 days following the occurrence of the Events of Default (the “Additional Interest Period”). | |||||||||
On August 20, 2014, the Company received a notice of default related to its failure to file its Form 10-Q for the fiscal quarter ended June 30, 2014 (the “Q2 10-Q Notice of Default”), and on November 19, 2014, the Company received a notice of default related to its failure to file its Form 10-Q for the fiscal quarter ended September 30, 2014 (the “Q3 10-Q Notice of Default”). These defaults also ripened into Events of Default and on December 29, 2014 and January 15, 2015, respectively, the Company elected to extend the Additional Interest Period for up to 180 days following each additional Event of Default. | |||||||||
Upon the filing with the SEC of the 2013 Form 10-K and the Form 10-Qs for each of the fiscal quarters ended March 31, 2014, June 30, 2014 and September 31, 2014, the Company regained compliance with its reporting obligations under the Indenture and cured all identified covenant defaults in each of the 10-K and the Q1 10-Q Notice of Default, the Q2 10-Q Notice of Default, and the Q3 10-Q Notice of Default, and ceased accruing the Additional Interest on the 2021 Notes as of February 12, 2015. |
Accrued_Severance_Benefits
Accrued Severance Benefits | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Postemployment Benefits [Abstract] | |||||||||
Accrued Severance Benefits | 11. Accrued Severance Benefits | ||||||||
The majority of accrued severance benefits is for employees in the Company’s Korean subsidiary, MagnaChip Semiconductor Ltd. (Korea). Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of December 31, 2014, 98% of all employees of the Company were eligible for severance benefits. | |||||||||
Changes in accrued severance benefits are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 135,356 | $ | 116,036 | |||||
Provisions | 17,703 | 23,169 | |||||||
Severance payments | (6,650 | ) | (6,130 | ) | |||||
Translation adjustments | (6,003 | ) | 2,281 | ||||||
140,405 | 135,356 | ||||||||
Less: cumulative contributions to the National Pension Fund | (346 | ) | (383 | ) | |||||
Group severance insurance plan | (770 | ) | (801 | ) | |||||
$ | 139,289 | $ | 134,172 | ||||||
The severance benefits are funded approximately 0.8% and 0.9% as of December 31, 2014 and 2013, respectively, through the Company’s National Pension Fund and group severance insurance plan which will be used exclusively for payment of severance benefits to eligible employees. These amounts have been deducted from the accrued severance benefit balance. | |||||||||
The Company is liable to pay the following future benefits to its employees upon their normal retirement age: | |||||||||
Severance | |||||||||
Benefit | |||||||||
2015 | $ | 294 | |||||||
2016 | 1,154 | ||||||||
2017 | 1,714 | ||||||||
2018 | 2,937 | ||||||||
2019 | 2,263 | ||||||||
2020 – 2024 | 23,798 | ||||||||
The above amounts were determined based on the employees’ current salary rates and the number of service years that will be accumulated upon their retirement dates. These amounts do not include amounts that might be paid to employees that will cease working with the Company before their normal retirement ages. |
Common_Stock
Common Stock | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Common Stock | 12. Common Stock | ||||||||||||||||
Common stock par value $0.01 per share, was authorized in the amount of 150,000 thousand shares, of which 40,635 thousand shares were issued and 34,056 thousand shares were outstanding as of December 31, 2014. | |||||||||||||||||
Changes in common stock for each period are as follows: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Common stock at the beginning of the period | 34,048,366 | $ | 406 | 35,635,357 | $ | 396 | |||||||||||
Exercise of stock options | 6,795 | 0 | 579,476 | 6 | |||||||||||||
Exercise of warrants | 1,307 | 0 | 448,281 | 4 | |||||||||||||
Acquisitions of treasury stock | — | — | (2,614,748 | ) | — | ||||||||||||
Total common stock outstanding at the end of the period | 34,056,468 | $ | 406 | 34,048,366 | $ | 406 | |||||||||||
On October 7, 2011, the Company’s Board of Directors adopted a stock repurchase program whereby the Company may, subject to prevailing market conditions and other factors, repurchase up to $35 million of its outstanding common stock. The Board of Directors extended and increased the program by an additional $25 million in August 2012, for a maximum aggregate repurchase amount under the original program of up to $60 million. On July 30, 2013, the Company announced that the Board of Directors approved a new stock repurchase program under which the Company is authorized to repurchase up to $100 million of its common stock. The new stock repurchase program was effective August 5, 2013 through December 15, 2014, and replaced the original stock repurchase program. The stock repurchase program did not require that the Company purchases a minimum amount of shares of its common stock and may be commenced, suspended, resumed or terminated at any time without notice. The timing and extent of any repurchases will depend upon prevailing market conditions, the trading price of the Company’s common stock and other factors, and subject to contractual restrictions and restrictions under applicable law and regulations. The Company purchased 2,615 thousand shares of common stock on the open market at a cost of $51,000 thousand for the year ended December 31, 2013. The Company accounted for the treasury stock using the cost method, which treats it as a temporary reduction in stockholders’ equity. As a result, the stockholders’ equity has decreased by $51,000 thousand for the years ended December 31, 2013. In March 2014, the Board of Directors suspended the stock repurchase program indefinitely, and the stock repurchase program expired by its terms on December 15, 2014. Subsequent to December 31, 2013, the Company did not repurchase any shares under the stock repurchase program. |
Equity_Incentive_Plans
Equity Incentive Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Equity Incentive Plans | 13. Equity Incentive Plans | ||||||||||||||||||||||||
The Company adopted its 2009 Common Unit Plan, or the 2009 Plan, effective December 8, 2009, which is administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). The 2009 Plan terminated immediately following the Company’s corporate conversion in March 2011, and no additional options or other equity awards may be granted under the 2009 Plan. However, options granted under the 2009 Plan prior to its termination will remain outstanding until they are either exercised or expire. The Company adopted its 2011 Equity Incentive Plan, or the 2011 Plan, in March 2010. The Company amended and restated the 2011 Plan in February 2011, and the Company’s stockholders approved the amendment in March 2011 to reflect that it became effective in 2011 upon the Company’s corporate conversion in March 2011. Awards may be granted under the 2011 Plan to the Company’s employees, including officers, directors, or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. While the Company may grant incentive stock options only to employees, the Company may grant nonstatutory stock options, stock appreciation rights, restricted stock purchase rights or bonuses, restricted stock units, performance shares, performance units and cash-based awards or other stock-based awards to any eligible participant, subject to terms and conditions determined by the Compensation Committee. The term of options shall not exceed ten years from the date of grant. Restricted stock purchase rights shall be exercisable within a period established by the Compensation Committee, which shall in no event exceed thirty days from the effective date of the grant. As of December 31, 2014, an aggregate maximum of 5,902 thousand shares were authorized and 955 thousand shares were reserved for all future grants. | |||||||||||||||||||||||||
Stock options and stock appreciation rights must have exercise prices at least equal to the fair market value of the stock at the time of their grant pursuant to the 2011 Plan. The requisite service period, or the period during which a grantee is required to provide service in exchange for option grants, coincides with the vesting period. The stock options typically vest over three years following grant, with 34% of the common stock vesting and becoming exercisable on the first anniversary of grant date and 8% or 9% of the common stock subject to the options vesting on completion of each three-month period thereafter. | |||||||||||||||||||||||||
The purchase price for shares issuable under each restricted stock purchase right shall be established by the Compensation Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares pursuant to a restricted stock bonus, the consideration for which shall be services actually rendered to a participating company or for its benefit. Stock issued pursuant to any restricted stock award may (but need not) be made subject to vesting conditions based upon the satisfaction of such service requirements, conditions, restrictions or performance criteria as shall be established by the Compensation Committee and set forth in the award agreement evidencing such award. During any period in which stock acquired pursuant to a restricted stock award remain subject to vesting conditions, such stock may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an ownership change event or transfer by will or the laws of descent and distribution. The grantee shall have all of the rights of a stockholder of the Company holding stock, including the right to vote such stock and to receive all dividends and other distributions paid with respect to such stock; provided, however, that if so determined by the Compensation Committee and provided by the award agreement, such dividends and distributions shall be subject to the same vesting conditions as the stock subject to the restricted stock award with respect to which such dividends or distributions were paid. If a grantee’s service terminates for any reason, whether voluntary or involuntary (including the grantee’s death or disability), then (a) the Company (or its assignee) has the option to repurchase for the purchase price paid by the grantee any stock acquired by the grantee pursuant to a restricted stock purchase right which remain subject to vesting conditions as of the date of the grantee’s termination of service and (b) the grantee shall forfeit to the Company any stock acquired by the grantee pursuant to a restricted stock bonus which remain subject to vesting conditions as of the date of the grantee’s termination of service. The Company has the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. | |||||||||||||||||||||||||
The following summarizes stock option and restricted stock bonus activities for the years ended December 31, 2014, 2013 and 2012 after giving effect to the corporate conversion. At the date of grant, all options had an exercise price above the fair value of common stock: | |||||||||||||||||||||||||
Number of | Weighted | Aggregate | Weighted | ||||||||||||||||||||||
Options | Average | Intrinsic | Average | ||||||||||||||||||||||
Exercise | Value of | Remaining | |||||||||||||||||||||||
Price of | Stock | Contractual | |||||||||||||||||||||||
Stock | Options | Life of | |||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Options | |||||||||||||||||||||||||
Outstanding at January 1, 2012 | 2,008,960 | $ | 6.79 | 2,773 | 8.1 years | ||||||||||||||||||||
Granted | 1,319,500 | 8.29 | — | — | |||||||||||||||||||||
Forfeited | (95,271 | ) | 11.07 | — | — | ||||||||||||||||||||
Exercised | (155,708 | ) | 5.88 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2012 | 3,077,481 | $ | 7.35 | 26,385 | 7.9 years | ||||||||||||||||||||
Vested and expected to vest at December 31, 2012 | 3,021,937 | 7.32 | 25,988 | 7.9 years | |||||||||||||||||||||
Exercisable at December 31, 2012 | 1,726,891 | 6.54 | 16,203 | 7.0 years | |||||||||||||||||||||
Outstanding at January 1, 2013 | 3,077,481 | 7.35 | 26,385 | 7.9 years | |||||||||||||||||||||
Granted | 455,000 | 17.08 | — | — | |||||||||||||||||||||
Forfeited | (8,360 | ) | 10.89 | — | — | ||||||||||||||||||||
Exercised | (579,476 | ) | 7.44 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2013 | 2,944,645 | $ | 8.82 | 31,558 | 7.3 years | ||||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 2,916,184 | 8.78 | 31,376 | 7.3 years | |||||||||||||||||||||
Exercisable at December 31, 2013 | 1,946,475 | 7 | 24,325 | 6.7 years | |||||||||||||||||||||
Outstanding at January 1, 2014 | 2,944,645 | $ | 8.82 | 31,558 | 7.3 years | ||||||||||||||||||||
Granted | 310,000 | 16.75 | — | — | |||||||||||||||||||||
Forfeited | (31,905 | ) | 8.34 | — | — | ||||||||||||||||||||
Exercised | (6,795 | ) | 7.03 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2014 | 3,215,945 | $ | 9.6 | 39,615 | 6.6 years | ||||||||||||||||||||
Vested and expected to vest at December 31, 2014 | 3,204,967 | 9.58 | 39,610 | 6.6 years | |||||||||||||||||||||
Exercisable at December 31, 2014 | 2,760,402 | 8.7 | 39,187 | 6.3 years | |||||||||||||||||||||
Total compensation expenses recorded for the stock options were $2,072 thousand, $2,213 thousand and $2,389 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there was $636 thousand of total unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average future period of 0.8 year. Total fair value of options vested were $2,957 thousand, $1,746 thousand and $1,515 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The Company utilizes the Black-Scholes option-pricing model to measure the fair value of each option grant. The following summarizes the grant-date fair value of options granted for the years ended December 31, 2014, 2013 and 2012 and assumptions used in the Black-Scholes option-pricing model on a weighted average basis: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Grant-date fair value of option | $ | 4.1 | $ | 4.3 | $ | 2.7 | |||||||||||||||||||
Expected term | 2.7 Years | 2.8 Years | 3.0 Years | ||||||||||||||||||||||
Risk-free interest rate | 0.7 | % | 0.4 | % | 0.4 | % | |||||||||||||||||||
Expected volatility | 36.7 | % | 37.6 | % | 48.8 | % | |||||||||||||||||||
Expected dividends | — | — | — | ||||||||||||||||||||||
The number and weighted average grant-date fair value of the unvested stock options are as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Grant- | Grant- | Grant- | |||||||||||||||||||||||
Date | Date | Date | |||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Unvested options at the beginning of the period | 998,170 | $ | 3.69 | 1,350,590 | $ | 2.79 | 796,514 | $ | 2.6 | ||||||||||||||||
Granted options during the period | 310,000 | 4.1 | 455,000 | 4.3 | 1,319,500 | 2.7 | |||||||||||||||||||
Vested options during the period | (819,818 | ) | 3.61 | (651,530 | ) | 2.68 | (654,022 | ) | 2.32 | ||||||||||||||||
Forfeited options during the period | (31,905 | ) | 3.2 | (7,106 | ) | 3.92 | (74,335 | ) | 4.02 | ||||||||||||||||
Exercised options during the period | (904 | ) | 3.16 | (148,784 | ) | 2.46 | (37,067 | ) | 1.87 | ||||||||||||||||
Unvested options at the end of the period | 455,543 | $ | 4.18 | 998,170 | $ | 3.69 | 1,350,590 | $ | 2.79 | ||||||||||||||||
Restructuring_and_Impairment_C
Restructuring and Impairment Charges | 12 Months Ended |
Dec. 31, 2014 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Impairment Charges | 14. Restructuring and Impairment Charges |
2014 Impairment Charges | |
The Company recognized $10,269 thousand of impairment charges, which were incurred due to the closure of its six-inch fabrication facility. The impairment charges primarily resulted from $8,239 thousand of impairment to building, $1,763 thousand of impairment of machinery and equipment and $267 thousand of impairment of other tangible assets. | |
2013 Restructuring and Impairment Charges | |
The Company recognized $1,829 thousand of restructuring charges for the year ended December 31, 2013 from restructuring its six-inch fabrication facility and $617 thousand of impairment charges from certain existing technology. | |
The Company recognized impairment charges related to impairment of goodwill, certain technology and equipment of $3,389 thousand, $1,864 thousand and $508 thousand, respectively. These impairment charges relate to goodwill, technology and equipment purchased in connection with the Dawin acquisition. |
Foreign_Currency_Gain_Loss_Net
Foreign Currency Gain (Loss), Net | 12 Months Ended |
Dec. 31, 2014 | |
Foreign Currency [Abstract] | |
Foreign Currency Gain (Loss), Net | 15. Foreign Currency Gain (Loss), Net |
Net foreign currency gain or loss includes non-cash translation gain or loss associated with intercompany balances. A substantial portion of the Company’s net foreign currency gain or loss is non-cash translation gain or loss associated with intercompany long-term loans to our Korean subsidiary. The loans are denominated in U.S. dollars and are affected by changes in the exchange rate between the Korean won and the U.S. dollar. As of December 31, 2014, the outstanding intercompany loan balance including accrued interests between the Korean subsidiary and the Dutch subsidiary was $766 million. The Korean won to U.S. dollar exchange rates were 1,099.2:1, 1,055.3:1 and 1,071.1:1 using the first base rate as of December 31, 2014, 2013 and 2012, respectively, as quoted by the Korea Exchange Bank. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 16. Income Taxes | ||||||||||||
The Company’s income tax expenses are composed of domestic and foreign income taxes depending on the relevant tax jurisdiction. “Domestic” refers to the income before taxes and current income taxes generated or incurred in the United States, where the parent company resides. | |||||||||||||
The components of income tax expense are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income (loss) before income taxes | |||||||||||||
Domestic | $ | (22,146 | ) | $ | (6,127 | ) | $ | (2,634 | ) | ||||
Foreign | (93,563 | ) | (54,106 | ) | 125,519 | ||||||||
$ | (115,709 | ) | $ | (60,233 | ) | $ | 122,885 | ||||||
Current income taxes expense (benefit) | |||||||||||||
Domestic | $ | (3,300 | ) | $ | (2,258 | ) | $ | 6,170 | |||||
Foreign | 3,312 | 4,875 | 4,533 | ||||||||||
Uncertain tax position liability (domestic) | 10 | (87 | ) | 14 | |||||||||
Uncertain tax position liability (foreign) | (66 | ) | 7 | 175 | |||||||||
(44 | ) | 2,537 | 10,892 | ||||||||||
Deferred income taxes expense | |||||||||||||
Foreign | 1,567 | 1,433 | 1,955 | ||||||||||
Total income tax expenses | $ | 1,523 | $ | 3,970 | $ | 12,847 | |||||||
Effective tax rate | — | — | 10.5 | % | |||||||||
The Company’s annual effective tax rate was 10.5% for the year ended December 31, 2012. | |||||||||||||
The differences between the annual effective tax rates and the U.S. federal statutory rate of 35.0% primarily result from the non-income based withholding tax levied on intercompany interest income in the Company’s Dutch subsidiary, application of lower tax rates associated with certain earnings from the Company’s operations outside the U.S., the parent Company’s interest income, which is non-taxable for US tax purposes and the change of valuation allowance of deferred tax assets. | |||||||||||||
The statutory income tax rate of the Company’s Korean subsidiary, MagnaChip Semiconductor, Ltd., applicable to the Company was approximately 24.2% in 2014, 2013 and 2012. | |||||||||||||
The provision for domestic and foreign income taxes incurred is different from the amount calculated by applying the statutory tax rate to the net income before income taxes. The significant items causing this difference are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision computed at statutory rate | $ | (40,498 | ) | $ | (21,082 | ) | $ | 43,010 | |||||
Change in statutory tax rate | — | — | — | ||||||||||
Difference in foreign tax rates | 10,130 | 5,375 | (12,544 | ) | |||||||||
Permanent differences | |||||||||||||
Derivative assets adjustment | (1,526 | ) | 1,469 | 3,364 | |||||||||
TPECs, hybrid and other interest | (6,813 | ) | (3,151 | ) | (5,920 | ) | |||||||
Permanent impairment | — | — | (935 | ) | |||||||||
Thin capitalization | — | — | 97 | ||||||||||
Deemed dividend | — | — | 7,609 | ||||||||||
Permanent foreign currency gain (loss) | (901 | ) | 3,351 | (465 | ) | ||||||||
Customs penalty | — | — | 742 | ||||||||||
Non-deductible settlement | 6,318 | — | — | ||||||||||
Other permanent differences | (1,097 | ) | (881 | ) | 1,556 | ||||||||
Withholding tax | 3,506 | 3,918 | 4,242 | ||||||||||
Foreign exchange rate adjustment | 4,687 | (7,455 | ) | (4,127 | ) | ||||||||
Change in valuation allowance | 29,484 | 24,062 | (21,184 | ) | |||||||||
Tax credit | (1,811 | ) | (1,818 | ) | (2,796 | ) | |||||||
Uncertain tax positions liability | (56 | ) | (80 | ) | 189 | ||||||||
Others | 100 | 262 | 9 | ||||||||||
Income tax expenses | $ | 1,523 | $ | 3,970 | $ | 12,847 | |||||||
A summary of the composition of net deferred income tax assets (liabilities) as of December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Deferred tax assets | |||||||||||||
Accounts Receivables | $ | 1,076 | $ | 28,628 | $ | 8,799 | |||||||
Inventories | 11,015 | 5,866 | 3,501 | ||||||||||
Accrued expenses | 9,030 | 8,758 | 2,812 | ||||||||||
Product warranties | 719 | 292 | 306 | ||||||||||
Other reserves | 457 | 684 | 1,072 | ||||||||||
Royalty income | 147 | 1,364 | 3,118 | ||||||||||
Property, plant and equipment | 15,914 | 13,667 | 12,945 | ||||||||||
Intangible assets | 780 | 922 | — | ||||||||||
Accumulated severance benefits | 30,413 | 27,769 | 23,465 | ||||||||||
Foreign currency translation loss | 17,496 | 12,220 | 13,533 | ||||||||||
NOL carry-forwards | 80,979 | 53,714 | 72,533 | ||||||||||
Tax credit | 25,161 | 26,041 | 26,786 | ||||||||||
Other long-term payable | 1,034 | 608 | 168 | ||||||||||
Others | 1,990 | 2,887 | 1,438 | ||||||||||
Total deferred tax assets | 196,211 | 183,420 | 170,476 | ||||||||||
Less: valuation allowance | (194,739 | ) | (178,729 | ) | (162,968 | ) | |||||||
1,472 | 4,691 | 7,508 | |||||||||||
Deferred tax liabilities | |||||||||||||
Derivative assets | — | 1,189 | 124 | ||||||||||
Intangible assets | — | — | 1,712 | ||||||||||
Foreign currency translation gain | 748 | 19 | 1,003 | ||||||||||
Others | 147 | 1,239 | 295 | ||||||||||
Total deferred tax liabilities | 895 | 2,447 | 3,134 | ||||||||||
Net deferred tax assets | $ | 577 | $ | 2,244 | $ | 4,374 | |||||||
Reported as | |||||||||||||
Current deferred income tax assets | $ | 237 | $ | 1,348 | $ | 1,788 | |||||||
Non-current deferred income tax assets | $ | 415 | $ | 896 | $ | 2,586 | |||||||
Current deferred income tax liabilities | $ | (72 | ) | $ | — | $ | — | ||||||
Non-current deferred income tax liabilities | $ | (3 | ) | $ | — | $ | — | ||||||
The valuation allowances at December 31, 2014, 2013 and 2012 are primarily attributable to net deferred tax assets at the Company’s Korean subsidiary for which, due to expected losses related to the Company’s Korean subsidiary in future years, the Company has recorded a full valuation allowance against the deferred tax assets, net of its deferred tax liabilities, and against certain foreign subsidiary’s deferred tax assets pertaining to its related tax loss carry-forwards that are not anticipated to generate a tax benefit. Changes in valuation allowance for deferred tax assets for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning balance | $ | 178,729 | $ | 162,968 | $ | 200,056 | |||||||
Charged to expense (income) | 29,484 | 24,062 | (21,184 | ) | |||||||||
NOL and tax credit expiration | (7,605 | ) | (10,150 | ) | (25,305 | ) | |||||||
Translation adjustment | (5,869 | ) | 1,849 | 9,401 | |||||||||
Ending balance | $ | 194,739 | $ | 178,729 | $ | 162,968 | |||||||
The amount presented as “Charged to expense (income)” primarily relates to the utilization of net operating loss and tax credit carry-forwards, or pre-tax losses for which there is no tax benefit. | |||||||||||||
The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires the Company to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate future taxable income within the period during which the temporary differences reverse, the outlook for the economic environment in which the Company operates and the overall future industry outlook. | |||||||||||||
As of December 31, 2014, 2013 and 2012, the Company had net deferred tax assets of $577 thousand, $2,244 thousand and $4,374 thousand, respectively, related to the Company’s Japanese subsidiary. As of December 31, 2014, 2013 and 2012, the Company recorded a valuation allowance of $194,739 thousand, $178,729 thousand and $162,968 thousand on its deferred tax assets related to temporary differences, net operating loss carry-forwards and tax credit in domestic and foreign subsidiaries. The Company maintained to record these valuation allowances on deferred tax assets based on its assessment that the negative evidence of expected losses in early future years outweighed the positive evidence of historical income. | |||||||||||||
As of December 31, 2014, the Company had approximately $315,344 thousand of net operating loss carry-forwards available to offset future taxable income. The majority of net operating loss is associated with the Company’s Korean subsidiary, which expires in part at various dates through 2024, and with the Company’s Luxembourg subsidiary with indefinite expiration. The Company utilized net operating loss of $1,219 thousand, $69,159 thousand and $86,938 thousand, for the years ended December 31, 2014, 2013 and 2012, respectively. The Company also has Korean, Dutch and U.S. tax credit carry-forwards of approximately $9,561 thousand, $15,210 thousand and $390 thousand, respectively, as of December 31, 2014. The Korean tax credits expire at various dates starting from 2015 to 2019, and the Dutch tax credits are carried forward to be used for an indefinite period of time. | |||||||||||||
Uncertainty in Income Taxes | |||||||||||||
The Company and the Company’s subsidiaries file income tax returns in Korea, Japan, Taiwan, the U.S. and in various other jurisdictions. The Company is subject to income tax examinations by tax authorities of these jurisdictions for all open tax years. | |||||||||||||
As of December 31, 2014, 2013 and 2012, the Company recorded $3,491 thousand, $3,706 thousand and $3,820 thousand of liabilities for unrecognized tax benefits, respectively. For the years ended December 31, 2014, 2013 and 2012, the Company recorded $110 thousand, $106 thousand and $5 thousand of income tax benefits by reversing liabilities due to the lapse of the applicable statute of limitations and incurred $44 thousand, $7 thousand and $55 thousand of income tax expenses for uncertain tax positions mainly resulting from withholding taxes related to intercompany balances. | |||||||||||||
The Company recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expenses. The Company recognized $10 thousand, $20 thousand, $139 thousand of interest and penalties as income tax expense for the years ended December 31, 2014, 2013 and 2012, respectively. Total interest and penalties accrued as of December 31, 2014, 2013 and 2012 were $480 thousand, $530 thousand and $544 thousand, respectively. | |||||||||||||
A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of each period is as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits, balance at the beginning | $ | 11,865 | $ | 11,196 | $ | 10,297 | |||||||
Additions based on tax positions related to the current year | 4,472 | 1,690 | 1,342 | ||||||||||
Additions for tax positions of prior years | 47 | — | 41 | ||||||||||
Lapse of statute of limitations | (1,040 | ) | (1,067 | ) | (942 | ) | |||||||
Translation adjustment | (375 | ) | 46 | 458 | |||||||||
Unrecognized tax benefits, balance at the ending | $ | 14,969 | $ | 11,865 | $ | 11,196 | |||||||
Geographic_and_Segment_Informa
Geographic and Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Geographic and Segment Information | 17. Geographic and Segment Information | ||||||||||||
The Company has one operating segment, consisting of three business lines: Display Solutions, Power Solutions and Semiconductor Manufacturing Services. The Company’s chief operating decision maker is considered to be its Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the operating segment level. | |||||||||||||
The following is a summary of net sales by business line: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales | |||||||||||||
Display Solutions | $ | 199,861 | $ | 202,951 | $ | 285,939 | |||||||
Semiconductor Manufacturing Services | 360,549 | 395,365 | 395,858 | ||||||||||
Power Solutions | 137,246 | 135,329 | 124,960 | ||||||||||
All other | 562 | 532 | 579 | ||||||||||
Total net sales | $ | 698,218 | $ | 734,177 | $ | 807,336 | |||||||
The following is a summary of net sales by region, based on the location of the customer: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Korea | $ | 260,139 | $ | 313,634 | $ | 365,682 | |||||||
Asia Pacific (other than Korea) | 324,248 | 284,429 | 271,908 | ||||||||||
U.S.A. | 91,308 | 100,790 | 124,481 | ||||||||||
Europe | 21,159 | 32,136 | 39,304 | ||||||||||
Others | 1,364 | 3,188 | 5,961 | ||||||||||
$ | 698,218 | $ | 734,177 | $ | 807,336 | ||||||||
Net sales from the Company’s top ten largest customers accounted for 61%, 59% and 61% for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
For the year ended December 31, 2014, the Company had two customers that represented 11.4% and 10.7% of its net sales, respectively. For the year ended December 31, 2013, the Company had one customer that represented 11.3% of its net sales. For the year ended December 31, 2012, the Company had another customer that represented 11.5% of its net sales. | |||||||||||||
96% of the Company’s property, plant and equipment are located in Korea as of December 31, 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 18. Commitments and Contingencies | ||||
Operating Agreements with SK Hynix | |||||
In connection with the acquisition of the non-memory semiconductor business from SK Hynix on October 4, 2004 (the “Original Acquisition”), the Company entered into several agreements with SK Hynix, including a non-exclusive cross license that provides the Company with access to certain of SK Hynix’s intellectual property for use in the manufacture and sale of non-memory semiconductor products. The Company also agreed to provide certain utilities and infrastructure support services to SK Hynix. | |||||
Upon the closing of the Original Acquisition, the Company’s Korean subsidiary and SK Hynix also entered into lease agreements under which the Company’s Korean subsidiary leases space to SK Hynix in several buildings, primarily warehouses and utility facilities, in Cheongju, Korea. These leases are generally for an initial term of 20 years plus an indefinite number of renewal terms of 10 years each. Each of the leases is cancelable upon 90 days’ notice by the lessee. The Company also leases certain land from SK Hynix located in Cheongju, Korea. The term of this lease is indefinite unless otherwise agreed by the parties, and as long as the buildings remain on the lease site and are owned and used by the Company for permitted uses. | |||||
Operating Leases | |||||
The Company leases land, office space and equipment under various operating lease agreements with various terms. Rental expenses were approximately $9,421 thousand, $8,829 thousand and $8,879 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
As of December 31, 2014, the minimum aggregate rental payments due under non-cancelable lease contracts are as follows: | |||||
2015 | $ | 5,876 | |||
2016 | 4,491 | ||||
2017 | 2,168 | ||||
2018 | 2,149 | ||||
2019 | 2,025 | ||||
2020 and thereafter | 29,913 | ||||
$ | 46,622 | ||||
Securities Class Action Complaints | |||||
On March 12, 2014, a purported class action was filed against the Company and certain of the Company’s now-former officers. On March 16, 2015, a second amended complaint in this same action was filed against the Company, certain of the Company’s current directors and former and now-former officers, and a stockholder of the Company on behalf of a putative class consisting of all persons other than the defendants who purchased or acquired the Company’s securities between February 1, 2012 and February 12, 2015. The second amended complaint asserts claims for (i) alleged violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by the Company and certain of the Company’s current directors and former and now-former officers, (ii) alleged violations of Section 20(a) of the Exchange Act by certain of the Company’s current directors and former and now-former officers, and (iii) alleged violations of Sections 20(a) and 20(A) of the Exchange Act by a stockholder. The action, Thomas et al., v. MagnaChip Semiconductor Corp., et al., No. 3:14-cv-1160, is pending in the Northern District of California. | |||||
On April 21, 2015, a related purported class action lawsuit was filed against the Company, certain of the Company’s current directors and former and now-former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings on behalf of a putative class consisting of all persons other than the defendants who purchased or acquired the Company’s securities between February 1, 2012 and February 12, 2015, including all purchasers of the Company’s common stock pursuant to or traceable to a shelf registration statement and prospectus issued in connection with the Company’s February 6, 2013 public stock offering. The complaint asserts claims for (i) alleged violations of Section 11 of the Securities Act by the Company, certain of the Company’s current directors and former and now-former officers, and certain financial firms that acted as underwriters of the Company’s public stock offerings, (ii) alleged violations of Section 12 of the Securities Act by the Company, certain of the Company’s former and now-former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings, (iii) alleged violations of Section 15 of the Securities Act by the Company, certain of the Company’s former and now-former officers, and a shareholder of the Company, (iv) alleged violations of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder by the Company and certain of the Company’s former and now-former officers, (v) alleged violations of Section 20(a) of the Exchange Act by the Company, certain of the Company’s former and now-former officers, and a shareholder of the Company. The action, Okla. Police Pension & Retirement Sys. v. MagnaChip Semiconductor Corp., et al., No. 3:15-cv-01797, is pending in the Northern District of California. A motion to consolidate Okla. Police Pension & Retirement Sys. v. MagnaChip Semiconductor Corp., et al., No. 3:15-cv-01797 and Thomas et al., v. MagnaChip Semiconductor Corp., et al., No. 3:14-cv-1160 is also pending. At this time, the Company is unable to estimate any reasonably possible loss, or range of reasonably possible losses, with respect to the matters described above. | |||||
SEC Enforcement Staff Review | |||||
In March 2014, the Company voluntarily reported to the Securities and Exchange Commission (“SEC”) that the Audit Committee had determined that the Company incorrectly recognized revenue on certain transactions and as a result would restate its financial statements, and that the Audit Committee had commenced the independent investigation. Over the course of 2014 and in the first quarter of 2015, the Company voluntarily produced documents to the SEC regarding the various accounting issues identified during the independent investigation, and whether the Company’s hiring of an accountant from the Company’s independent registered public accounting firm impacted that accounting firm’s independence. On July 22, 2014, the Staff of the SEC’s Division of Enforcement obtained a Formal Order of Investigation. On March 12, 2015, the SEC issued a subpoena for documents to the Company in connection with its investigation. The Company has and will continue to fully cooperate with the SEC in this investigation. At this time, the Company is unable to estimate any reasonably possible loss, or range of reasonably possible losses, with respect to the matters described above. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 19. Related Party Transactions |
Stockholders | |
Funds affiliated with Avenue Capital Management II, L.P. (“Avenue”) owned 12.0% of the Company’s common stock issued and outstanding at December 31, 2014. | |
Registration Rights Agreement | |
On November 9, 2009, the Company entered into a registration rights agreement with the holders of MagnaChip Semiconductor LLC’s common units issued in the Company’s reorganization proceedings, including Avenue, where the Company granted them registration rights with respect to the Company’s common stock. In 2012 and 2013, the Company paid fees and expenses of $1.2 million and $0.8 million, respectively, in connection with the registration and sale of shares of the Company’s common stock by Avenue pursuant to such registration rights agreement. Affiliates of Avenue currently have two employees serving as members of the Company’s Board of Directors. Another member of the Board of Directors was also previously employed by affiliates of Avenue until December 31, 2012, and currently serves as a consultant to affiliates of Avenue. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Accumulated Other Comprehensive Loss | 20. Accumulated Other Comprehensive Loss | ||||||||||||||||
Accumulated other comprehensive loss consists of the following at December 31, 2014 and 2013, respectively: | |||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Foreign currency translation adjustments | $ | (35,551 | ) | $ | (57,326 | ) | |||||||||||
Derivative adjustments | 485 | 6,587 | |||||||||||||||
Unrealized gain on investments | — | 681 | |||||||||||||||
Total | $ | (35,066 | ) | $ | (50,058 | ) | |||||||||||
Changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012 is as follows: | |||||||||||||||||
Year Ended December 31, 2014 | Foreign | Derivative | Unrealized | Total | |||||||||||||
currency | adjustments | gain on | |||||||||||||||
translation | investments | ||||||||||||||||
adjustments | |||||||||||||||||
Beginning balance | $ | (57,326 | ) | $ | 6,587 | $ | 681 | $ | (50,058 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 21,775 | (69 | ) | 1,201 | 22,907 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (6,033 | ) | (1,882 | ) | (7,915 | ) | ||||||||||
Net current-period other comprehensive income (loss) | 21,775 | (6,102 | ) | (681 | ) | 14,992 | |||||||||||
Ending balance | $ | (35,551 | ) | $ | 485 | $ | — | $ | (35,066 | ) | |||||||
Year Ended December 31, 2013 | Foreign | Derivative | Unrealized | Total | |||||||||||||
currency | adjustments | gain on | |||||||||||||||
translation | investments | ||||||||||||||||
adjustments | |||||||||||||||||
Beginning balance | $ | (43,599 | ) | $ | 2,074 | $ | 75 | $ | (41,450 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (13,727 | ) | 7,497 | 606 | (5,624 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (2,984 | ) | — | (2,984 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (13,727 | ) | 4,513 | 606 | (8,608 | ) | |||||||||||
Ending balance | $ | (57,326 | ) | $ | 6,587 | $ | 681 | $ | (50,058 | ) | |||||||
Year Ended December 31, 2012 | Foreign | Derivative | Unrealized | Total | |||||||||||||
currency | adjustments | gain on | |||||||||||||||
translation | investments | ||||||||||||||||
adjustments | |||||||||||||||||
Beginning balance | $ | (5,862 | ) | $ | (7,771 | ) | $ | 90 | $ | (13,543 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (37,737 | ) | 5,237 | (15 | ) | (32,515 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4,608 | — | 4,608 | |||||||||||||
Net current-period other comprehensive income (loss) | (37,737 | ) | 9,845 | (15 | ) | (27,907 | ) | ||||||||||
Ending balance | $ | (43,599 | ) | $ | 2,074 | $ | 75 | $ | (41,450 | ) | |||||||
Earnings_loss_per_Share
Earnings (loss) per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings (loss) per Share | 21. Earnings (loss) per Share | ||||||||||||
The following table illustrates the computation of basic and diluted earnings (loss) per common share: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) | $ | (117,232 | ) | $ | (64,203 | ) | $ | 110,038 | |||||
Weighted average common stock outstanding | |||||||||||||
Basic | 34,055,513 | 35,232,194 | 36,567,684 | ||||||||||
Diluted | 34,055,513 | 35,232,194 | 37,533,391 | ||||||||||
Earnings (loss) per share | |||||||||||||
Basic | $ | (3.44 | ) | $ | (1.82 | ) | $ | 3.01 | |||||
Diluted | $ | (3.44 | ) | $ | (1.82 | ) | $ | 2.93 | |||||
The following outstanding instruments were excluded from the computation of diluted earnings (loss) per share, as they would have an anti-dilutive effect on the calculation: | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Options | 3,215,945 | 2,944,645 | 255,023 | ||||||||||
Warrants | — | 1,426,330 | 1,874,977 |
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Results | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Unaudited Quarterly Financial Results | 22. Unaudited Quarterly Financial Results | ||||||||||||||||
The following tables present selected unaudited Consolidated Statements of Operations for each quarter of the years ended December 31, 2014 and 2013. | |||||||||||||||||
Fiscal Year 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 164,164 | $ | 172,070 | $ | 194,332 | $ | 167,652 | |||||||||
Gross profit | 40,277 | 35,457 | 42,630 | 34,498 | |||||||||||||
Operating loss | (7,887 | ) | (19,348 | ) | (19,482 | ) | (30,409 | ) | |||||||||
Net income (loss) | $ | (21,605 | ) | $ | 15,010 | $ | (46,807 | ) | $ | (63,830 | ) | ||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | (0.63 | ) | $ | 0.44 | $ | (1.37 | ) | $ | (1.87 | ) | ||||||
Diluted | $ | (0.63 | ) | $ | 0.43 | $ | (1.37 | ) | $ | (1.87 | ) | ||||||
Weighted average common stock outstanding: | |||||||||||||||||
Basic | 34,052,875 | 34,056,359 | 34,056,359 | 34,056,413 | |||||||||||||
Diluted | 34,052,875 | 35,177,915 | 34,056,359 | 34,056,413 | |||||||||||||
Fiscal Year 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 194,322 | $ | 193,533 | $ | 170,812 | $ | 175,510 | |||||||||
Gross profit | 58,235 | 45,241 | 34,413 | 17,179 | |||||||||||||
Operating income (loss) | 13,966 | 2,665 | (10,220 | ) | (33,179 | ) | |||||||||||
Net income (loss) | $ | (17,589 | ) | $ | (24,668 | ) | $ | 251 | $ | (22,197 | ) | ||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | (0.49 | ) | $ | (0.70 | ) | $ | 0.01 | $ | (0.64 | ) | ||||||
Diluted | $ | (0.49 | ) | $ | (0.70 | ) | $ | 0.01 | $ | (0.64 | ) | ||||||
Weighted average common stock outstanding: | |||||||||||||||||
Basic | 35,539,413 | 35,474,001 | 35,443,820 | 34,480,849 | |||||||||||||
Diluted | 35,539,413 | 35,474,001 | 37,484,601 | 34,480,849 |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | 23. Subsequent Events |
Restatement | |
On February 12, 2015, the Company filed with the SEC its 2013 Form 10-K containing audited financial statements of the Company for the year ended December 31, 2013 and audited restated financial statements for the years ended December 31, 2012 and 2011, and simultaneously filed its Form 10-Q for each of the quarters ended March 31, 2014, June 30, 2014 and September, 30, 2014, which included the corresponding comparative restated financial statements for the quarters ended March 31, 2013, June 30, 2013 and September 30, 2013, respectively. | |
Late Filings | |
On March 17, 2015, the Company filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that the Company would be unable to timely file its Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 10-K”) with the SEC. On May 12, 2015, the Company filed a Notification of Late Filing on Form 12b-25 with the SEC disclosing that the Company would be unable to timely file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 with the SEC. | |
NYSE Action | |
On April 6, 2015, the Company filed a Current Report on Form 8-K with the SEC announcing that on April 1, 2015 the Company received from NYSE Regulation, Inc. (the “NYSE”) a notice of failure to satisfy a continued listing rule or standard and related monitoring. The notice informed the Company that, as a result of the failure to timely file the 2014 10-K, the Company is subject to the procedures specified in Section 802.01E (SEC Annual and Quarterly Report Timely Filing Criteria) of the NYSE Listed Company Manual (“Section 802.01E”). Under the Section 802.01E procedures, the NYSE will monitor the status of the filing of the 2014 Form 10-K and any subsequent reports and related public disclosures for up to a six-month period from its due date. If the Company does not file the 2014 Form 10-K and any subsequent late report within six months from the filing due date, the NYSE may, in its sole discretion, allow the Company’s common stock to trade for up to an additional six months pending the filing of the 2014 Form 10-K and any subsequent late report prior to commencing suspension or delisting procedures, depending on the Company’s specific circumstances. On May 28, 2015, the Company filed the 2014 Form 10-K. The Company still must file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 in order to satisfy the NYSE continued listing requirements. | |
2021 Notes indenture reporting covenant default | |
As disclosed in the Company’s Form 8-K filed on May 4, 2015, the Company received a notice of default on May 1, 2015 (the “10-K Notice of Default”) from the Trustee under the Indenture. The 10-K Notice of Default related to the failure by the Company, pursuant to Section 4.03 of the Indenture, to file with the SEC its Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The Company believes it has cured the default referenced in the 10-K Notice of Default within the applicable 60-day grace period under the Indenture by the filing of this Report with the SEC. | |
Rights Agreement | |
On March 5, 2015 the Board of Directors of the Company, authorized and declared a dividend of one preferred stock purchase right (a “Right” and collectively, the “Rights”) for each share of the Company’s common stock, par value $0.01 per share, outstanding at the close of business on March 16, 2015. Each Right, once exercisable, will entitle the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.01 per share, at a purchase price of $24, subject to adjustment. | |
The Board of Directors implemented the plan to ensure that all stockholders realize the long-term value of their investment. The rights plan is designed to reduce the likelihood that any person or group would gain control of the Company through open market accumulation without appropriately compensating the Company’s stockholders for such control or allowing the Board of Directors and the stockholders sufficient time to make informed judgments. The Rights will not prevent a takeover, but will incentivize anyone seeking to acquire the Company to negotiate with the Board of Directors before making a takeover attempt. | |
Shareholder Derivative Complaints | |
A shareholder derivative action, styled Hemmingson et al. v. Elkins et al., Case No. 1-15-cv-278614, was filed in the Superior Court of the State of California in and for Santa Clara County on March 25, 2015, naming as defendants certain of the Company’s current directors and former and now-former officers, as well as a shareholder of the Company, and naming the Company as a nominal defendant. The complaint in this action asserts claims for (i) alleged breaches of fiduciary duty by certain of the Company’s current directors and former and now-former officers for purportedly knowingly failing to maintain adequate internal controls over its accounting and reporting functions and disseminating to shareholders certain alleged materially false and misleading statements, (ii) alleged breaches of fiduciary duty by certain of the Company’s current directors and a current shareholder of the Company for purported insider trading, and (iii) alleged unjust enrichment by a shareholder of the Company for purported insider trading. On May 13, 2015, the court so ordered a stipulation entered into by certain of the parties, agreeing to stay the litigation until Thomas et al., v. MagnaChip Semiconductor Corp., et al., No. 3:14-cv-1160 and Okla. Police Pension & Retirement Sys. v. MagnaChip Semiconductor Corp., et al., No. 3:15-cv-01797 are resolved, unless the stay is lifted earlier. | |
On May 13, 2015, a purported shareholder provided notice to the Company and the Board of Directors of a shareholder derivative action styled as Bushansky v. Norby, et al. that the purported shareholder proposes to file in the Superior Court of the State of California, Santa Clara County. The proposed action names as defendants certain of the Company’s current directors and former officers, and a shareholder of the Company, with the Company being named as a nominal defendant. The complaint asserts claims for (i) alleged breaches of fiduciary duties by certain of the Company’s current directors and former officers for knowingly failing to maintain adequate internal controls over the Company’s accounting and reporting functions and disseminating to shareholders certain alleged materially false and misleading statements; and (ii) alleged aiding and abetting of such breaches of fiduciary duties by all defendants. At this time, the Company is unable to estimate any reasonably possible loss, or range of reasonably possible losses, with respect to the matters described above. | |
Derivative contract | |
In May 2015, the Company and the counterparty, the Nomura Financial Investment (Korea) Co., Ltd., entered into derivative contracts of zero cost collars for the third and fourth quarters of the year ending December 31, 2015. The total notional amounts are $84 million. These derivative contracts were executed under the International Swaps and Derivatives Association (“ISDA”) agreement amended in the second quarter of the year 2015 with respect to deletion of the ratings decline provision. In connection with the contracts, the Company paid $5.0 million cash deposits to the counterparty in May 2015. | |
Reorganization | |
On May 28, 2015, organizational changes that will become effective immediately were simultaneously announced in connection with this filing of the 2014 Form 10-K. In conjunction with the Company’s plans to (i) realign its businesses and organizational structure and (ii) streamline and consolidate certain business processes to achieve greater operating efficiencies, the Company will manage its business and report its financial results in two operating segments: Semiconductor Manufacturing Services and Standard Products Group. These segments will be established based on how the Company’s business units will be managed prospectively and will have no effect on the Company’s historical consolidated results of operations. |
Business_Basis_of_Presentation1
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Business | Business | ||||
MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a Korea-based designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (“IoT”) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory, and RF applications. The Company’s business is comprised of three key business lines: Display Solutions, Power Solutions and Semiconductor Manufacturing Services. The Company’s Display Solutions products provide flat panel display solutions to major suppliers of large and small flat panel display. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in consumer, communication and industrial applications. The Company’s Semiconductor Manufacturing Services provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve the consumer, computing, communication, industrial, automotive and IoT applications. | |||||
Basis of Presentation | Basis of Presentation | ||||
The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). | |||||
Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. | |||||
Principles of Consolidation | Principles of Consolidation | ||||
The consolidated financial statements include the accounts of the Company including its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. | |||||
Business Combination | Business Combination | ||||
Pursuant to accounting guidance for ASC 805, “Business Combinations” (“ASC 805”), the Company (i) applies the definition of “business” and “business combination” as prescribed by the revised guidance; (ii) recognizes assets acquired, liabilities assumed (including goodwill) measured at fair value at the acquisition date; (iii) recognizes acquisition-related expenses in earnings; and (iv) capitalizes technology and customer relationships at fair value as intangible assets. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, stock based compensation, property plant and equipment, intangible assets, other long-lived assets, long-term employee benefits, contingencies liabilities, and assumptions used in the calculation of income taxes and sales incentives, among others. Although these estimates and assumptions are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be significantly different from the estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. | |||||
Foreign Currency Translation | Foreign Currency Translation | ||||
The Company has assessed in accordance with ASC 830, “Foreign Currency Matters” (“ASC 830”), the functional currency of each of its subsidiaries in Luxembourg and the Netherlands and has designated the U.S. dollar to be their respective functional currencies. The Company and its other subsidiaries are utilizing their local currencies as their functional currencies. The financial statements of the subsidiaries in functional currencies other than the U.S. dollar are translated into the U.S. dollar in accordance with ASC 830. All the assets and liabilities are translated to the U.S. dollar at the end-of-period exchange rates. Capital accounts are determined to be of a permanent nature and are therefore translated using historical exchange rates. Revenues and expenses are translated using average exchange rates for the respective periods. Foreign currency translation adjustments arising from differences in exchange rates from period to period are included in the foreign currency translation adjustment account in accumulated comprehensive income (loss) of stockholders’ equity. Gains and losses due to transactions in currencies other than the functional currency are included as a component of other income (expense) in the statement of operations. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||
Cash equivalents consist of highly liquid investments with an original maturity date of three months or less when purchased. | |||||
Accounts Receivable Reserves | Accounts Receivable Reserves | ||||
An allowance for doubtful accounts is provided based on the aggregate estimated uncollectability of the Company’s accounts receivable. The Company also records an estimate for sales returns, included within accounts receivable, net, based on the historical experience of the amount of goods that will be returned and refunded or replaced. In addition, the Company also includes in accounts receivable, an allowance for additional products that may have to be provided, free of charge, to compensate customers for products that do not meet previously agreed yield criteria, the low yield compensation reserve. | |||||
Sales of Accounts Receivable | Sales of Accounts Receivable | ||||
The Company accounts for transfers of financial assets under ASC 860, “Transfers and Servicing,” as either sales or financings. Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constraints the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. If the transfer does not meet these criteria, the transfer is accounted for as a financing. Financial assets that are treated as sales are removed from the Company’s accounts with any realized gain or loss reflected in earning during the period of sale. | |||||
Inventories | Inventories | ||||
Inventories are stated at the lower of cost or market, using the average cost method, which approximates the first in, first out method (“FIFO”). If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable value, and the difference is recognized as a loss on valuation of inventories within cost of sales. Inventory reserves are established when conditions indicate that the net realizable value is less than costs due to physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Reserves are also established for excess inventory based on inventory levels in excess of six months of projected demand for each specific product. | |||||
In addition, as prescribed in ASC 330, “Inventory,” the cost of inventories is determined based on the normal capacity of each fabrication facility. In case the capacity utilization is lower than a certain level that management believes to be normal, the fixed overhead costs per production unit which exceeds those under normal capacity are charged to cost of sales rather than capitalized as inventories. | |||||
Property, Plant and Equipment | Property, Plant and Equipment | ||||
Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. | |||||
Buildings | 30 - 40 years | ||||
Building related structures | 10 - 20 years | ||||
Machinery and equipment | 10 - 12 years | ||||
Vehicles and others | 5 years | ||||
Routine maintenance and repairs are charged to expense as incurred. Expenditures that enhance the value or significantly extend the useful lives of the related assets are capitalized. | |||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | ||||
The Company reviews property, plant and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, “Property, Plant and Equipment” (“ASC 360”). Recoverability is measured by comparing its carrying amount with the future net undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured as the difference between the carrying amount of the assets and the fair value of assets using the present value of the future net cash flows generated by the respective long-lived assets. | |||||
Restructuring Charges | Restructuring Charges | ||||
The Company recognizes restructuring charges in accordance with ASC 420, “Exit or Disposal Cost Obligations” (“ASC 420”). Certain costs and expenses related to exit or disposal activities are recorded as restructuring charges when liabilities for those costs and expenses are incurred. | |||||
Lease Transactions | Lease Transactions | ||||
The Company accounts for lease transactions as either operating leases or capital leases, depending on the terms of the underlying lease agreements. Machinery and equipment acquired under capital lease agreements are recorded at the lower of the present value of future minimum lease payments and estimated fair value of leased property and depreciated using the straight-line method over their estimated useful lives. In addition, the aggregate lease payments are recorded as capital lease obligations, net of unaccrued interest. Interest is amortized over the lease period using the effective interest rate method. Leases that do not qualify as capital leases are classified as operating leases, and the related rental payments are expensed on a straight-line basis over the shorter of the estimated useful lives of the leased property and the lease term. | |||||
Software | Software | ||||
The Company capitalizes certain external costs that are incurred to purchase and implement internal-use computer software. Direct costs relating to the development of software for internal use are capitalized after technological feasibility has been established, in accordance with ASC 350, “Intangibles-Goodwill and Other” (“ASC 350”). Depreciation is recorded on a straight-line basis over the software’s estimated useful life, which is usually five years. | |||||
Intangible Assets | Intangible Assets | ||||
Intangible assets other than intellectual property include technology and customer relationships which are amortized on a straight-line basis over periods ranging from one to five years. Intellectual property assets acquired represent rights under patents, trademarks and property use rights and are amortized over their respective periods of benefit, ranging up to ten years, on a straight-line basis. | |||||
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets | ||||
The Company records goodwill when the purchase price of an acquisition exceeds the fair value of the net tangible and intangible assets as of the date of acquisition. Goodwill is subject to impairment testing using a two-step process after considering a qualitative assessment. The first step of the goodwill impairment test is to identify potential impairment by comparing the fair value of the reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is not required. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value (i.e., the fair value of reporting unit less the fair value of the unit’s assets and liabilities, including identifiable intangible assets) of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying value of goodwill exceeds its implied fair value, the excess is required to be recorded as an impairment charge in earnings. The Company performs its annual goodwill impairment analysis during the fourth quarter. Goodwill must be tested between annual tests if events or changes in circumstances indicate that the asset might be impaired. The Company reviews changes in the business climate, changes in market capitalization, legal factors, operating performance indicators and competition, among other factors and their potential impact on the Company’s fair value determination. | |||||
Fair Value Disclosures of Financial Instruments | Fair Value Disclosures of Financial Instruments | ||||
The Company follows ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in US GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by ASC 820 are: | |||||
Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||
Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | |||||
Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. | |||||
As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, such as cash and cash equivalents, accounts receivable, other receivables, accounts payable and other accounts payable approximate their fair values because of the short maturity of these instruments. | |||||
Accrued Severance Benefits | Accrued Severance Benefits | ||||
The majority of accrued severance benefits is for employees in the Company’s Korean subsidiary, MagnaChip Semiconductor Ltd. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of December 31, 2014, 98% of all employees of the Company were eligible for severance benefits. | |||||
Accrued severance benefits are funded through a group severance insurance plan. The amounts funded under this insurance plan are classified as a reduction of the accrued severance benefits. Subsequent accruals are to be funded at the discretion of the Company. | |||||
In accordance with the National Pension Act of the Republic of Korea, a certain portion of accrued severance benefits is deposited with the National Pension Fund and deducted from the accrued severance benefits. The contributed amount is paid to employees from the National Pension Fund upon their retirement. | |||||
Revenue Recognition | Revenue Recognition | ||||
Revenue is recognized when there is persuasive evidence of an arrangement, the price to the buyer is fixed or determinable, delivery has occurred and collectability of the sales price is reasonably assured. Revenue from the sale of products is recognized when title and risk of loss transfers to the customer, which is generally when the product is shipped to or accepted by the customer depending on the terms of the arrangement. | |||||
A portion of the Company’s sales are made through distributors for which revenue recognition criteria are usually met when the product is shipped to or accepted by the distributors, consistent with the principles described above. However, the risk of loss may not pass upon shipment of products to the distributor due to a variety of reasons, including the nature of the business arrangement with the distributor. For example, the financial condition of a distributor may indicate that payments by the distributor to the Company are contingent on resale of products to an end customer. In this situation, the Company defers recognition of revenue and cost of revenue on transactions with such distributor until the product has been resold to the end customer. | |||||
In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer is presented in the statements of operations on a net basis (excluded from revenues). | |||||
The Company provides a warranty, under which customers can return defective products. The Company estimates the costs related to those defective product returns and records them as a component of cost of sales. | |||||
In addition, the Company offers sales returns (other than those that relate to defective products under warranty), yield provisions, cash discounts for early payments and certain allowances to its customers, including distributors. The Company records reserves for those returns, discounts and allowances as a deduction from sales, based on historical experience and other quantitative and qualitative factors. | |||||
All amounts billed to a customer related to shipping and handling are classified as sales while all costs incurred by the Company for shipping and handling are classified as selling, general and administrative expenses. The amounts charged to selling, general and administrative expenses were $3,386 thousand, $2,850 thousand, and $3,057 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||
The Company applies the provisions of ASC 815, “Derivatives and Hedging” (“ASC 815”). This Statement requires the recognition of all derivative instruments as either assets or liabilities measured at fair value. | |||||
Under the provisions of ASC 815, the Company may designate a derivative instrument as hedging the exposure to variability in expected future cash flows that are attributable to a particular risk (a “cash flow hedge”) or hedging the exposure to changes in the fair value of an asset or a liability (a “fair value hedge”). Special accounting for qualifying hedges allows the effective portion of a derivative instrument’s gains and losses to offset related results on the hedged item in the consolidated statements of operations and requires that a company formally document, designate and assess the effectiveness of the transactions that receive hedge accounting treatment. Both at the inception of a hedge and on an ongoing basis, a hedge must be expected to be highly effective in achieving offsetting changes in cash flows or fair value attributable to the underlying risk being hedged. If the Company determines that a derivative instrument is no longer highly effective as a hedge, it discontinues hedge accounting prospectively and future changes in the fair value of the derivative are recognized in current earnings. The Company assesses hedge effectiveness at the end of each quarter. | |||||
In accordance with ASC 815, changes in the fair value of derivative instruments that are cash flow hedges are recognized in accumulated other comprehensive income (loss) and reclassified into earnings in the period in which the hedged item affects earnings. Ineffective portions of a derivative instrument’s change in fair value are immediately recognized in earnings. Derivative instruments that do not qualify, or cease to qualify, as hedges must be adjusted to fair value and the adjustments are recorded through net income (loss). | |||||
The cash flows from derivative instruments receiving hedge accounting treatment are classified in the same categories as the hedged items in the consolidated statements of cash flows. | |||||
Advertising | Advertising | ||||
The Company expenses advertising costs as incurred. Advertising expense was approximately $155 thousand, $161 thousand and $142 thousand for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Product Warranties | Product Warranties | ||||
The Company records, in other current liabilities, warranty liabilities for the estimated costs that may be incurred under its basic limited warranty. The standard limited warranty period is one year for the majority of products. This warranty covers defective products, and related liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liability include historical and anticipated rates of warranty claims and repair or replacement costs per claim to satisfy the Company’s warranty obligation. As these factors are impacted by actual experience and future expectations, the Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts when necessary. | |||||
Research and Development | Research and Development | ||||
Research and development costs are expensed as incurred and include wafers, masks, employee expenses, contractor fees, building costs, utilities and administrative expenses. | |||||
Licensed Patents and Technologies | Licensed Patents and Technologies | ||||
The Company has entered into a number of royalty agreements to license patents and technology used in the design of its products. The Company carries two types of royalties: lump-sum and running basis. Lump-sum royalties which require initial payments, usually paid in installments, represent a non-refundable commitment, such that the total present value of these payments is recorded as a prepaid expense and a liability upon execution of the agreements and the costs are amortized over the contract period using the straight-line method and charged to research and development expenses in the consolidated statements of operations. | |||||
Running royalties are paid based on the revenue of related products sold by the Company. | |||||
Stock-Based Compensation | Stock-Based Compensation | ||||
The Company follows the provisions of ASC 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. As permitted under ASC 718, the Company elected to recognize compensation expense for all options with graded vesting based on the graded attribution method. | |||||
The Company uses the Black-Scholes option-pricing model to measure the grant-date-fair-value of options. The Black-Scholes model requires certain assumptions to determine an option’s fair value, including expected term, risk free interest, expected volatility and fair value of underlying common share. The expected term of each option grant was based on employees’ expected exercises and post-vesting employment termination behavior and the risk free interest rate was based on the U.S. Treasury yield curve for the period corresponding with the expected term at the time of grant. The expected volatility was estimated using historical volatility of share prices of similar public entities. No dividends were assumed for this calculation of option value. | |||||
Earnings per Share | Earnings per Share | ||||
In accordance with ASC 260, “Earnings Per Share” (“ASC 260”), the Company computes basic earnings per share by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution of potential common stock outstanding during the period. In determining the hypothetical shares repurchased, the Company uses the average share price for the period. In the case that earnings are negative, any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. | |||||
Income Taxes | Income Taxes | ||||
The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in a company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when it is necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. | |||||
The Company recognizes and measures uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step process. In the first step, recognition, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step addresses measurement of a tax position that meets the more-likely-than-not criteria. The tax position is measured at the largest amount of benefit that has a likelihood of greater than 50 percent of being realized upon ultimate settlement. | |||||
Concentration of Credit Risk | Concentration of Credit Risk | ||||
The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral for customers on accounts receivable. The Company maintains reserves for potential credit losses, which are periodically reviewed. | |||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||
In April 2015, the FASB issued Accounting Standards Update. 2015-03, “Interest—Imputation of Interest” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs are presented in the balance sheet as a direct deduction from the carrying amount of debt liability, consistent with debt discounts or premiums. The recognition and measurement guidance for debt issuance costs would not be affected. ASU 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. The Company is currently evaluating the impact of the adoption of ASU 2015-03 on its consolidated financial statements. | |||||
In August 2014, the FASB issued Accounting Standards Update No. 2014-15, “Presentation of Financial Statements – Going Concern” (“ASU 2014-15”), which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-15 on its consolidated financial statements. | |||||
In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements. |
Business_Basis_of_Presentation2
Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Estimated Useful Lives of Assets | Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. | ||||
Buildings | 30 - 40 years | ||||
Building related structures | 10 - 20 years | ||||
Machinery and equipment | 10 - 12 years | ||||
Vehicles and others | 5 years |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | As of December 31, 2013, the following table represents the Company’s assets measured at fair value on a recurring basis and the basis for that measurement: | ||||||||||||||||||||
Carrying Value | Fair Value | Quoted Prices in | Significant | Significant | |||||||||||||||||
December 31, 2013 | Measurement | Active Markets | Other | Unobservable | |||||||||||||||||
December 31, 2013 | for Identical | Observable | Inputs | ||||||||||||||||||
Asset (Level 1) | Inputs | (Level 3) | |||||||||||||||||||
(Level 2) | |||||||||||||||||||||
Assets: | |||||||||||||||||||||
Available-for-sale securities (other non-current assets) | $ | 1,236 | $ | 1,236 | $ | 1,236 | $ | — | $ | — | |||||||||||
Derivative assets (other current assets) | 4,912 | 4,912 | — | 4,912 | — | ||||||||||||||||
Schedule of Fair Value of Long-term Borrowings | Fair Value of Long-term Borrowings | ||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||
Value | Value | Value | Value | ||||||||||||||||||
Long-term Borrowings: | |||||||||||||||||||||
6.625% senior notes due July 2021 (Level 2) | $ | 224,035 | $ | 206,100 | $ | 223,923 | $ | 229,500 |
Accounts_Receivable_Tables
Accounts Receivable (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Schedule of Accounts Receivable | Accounts receivable as of December 31, 2014 and 2013 consisted of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Accounts receivable | $ | 74,850 | $ | 81,862 | |||||
Notes receivable | 257 | 460 | |||||||
Less: | |||||||||
Allowances for doubtful accounts | (263 | ) | (268 | ) | |||||
Sales return reserve | (787 | ) | (1,205 | ) | |||||
Low yield compensation reserve | (1,100 | ) | (1,951 | ) | |||||
Accounts receivable, net | $ | 72,957 | $ | 78,898 | |||||
Allowance for doubtful accounts [Member] | |||||||||
Schedule of Changes in Receivables and Reserves | Changes in allowance for doubtful accounts for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (268 | ) | $ | (401 | ) | |||
Reversal of allowance (Bad debt expense) | (3,718 | ) | 115 | ||||||
Write off | 3,508 | 18 | |||||||
Translation adjustments | 215 | — | |||||||
Ending balance | $ | (263 | ) | $ | (268 | ) | |||
Sales return reserve [Member] | |||||||||
Schedule of Changes in Receivables and Reserves | Changes in sales return reserve for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (1,205 | ) | $ | (1,264 | ) | |||
Provisions | (3,224 | ) | (1,218 | ) | |||||
Usage | 3,598 | 1,296 | |||||||
Translation adjustments | 44 | (19 | ) | ||||||
Ending balance | $ | (787 | ) | $ | (1,205 | ) | |||
Low yield compensation reserve [Member] | |||||||||
Schedule of Changes in Receivables and Reserves | Changes in low yield compensation reserve for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (1,951 | ) | $ | (3,206 | ) | |||
Provisions | (766 | ) | (1,868 | ) | |||||
Usage | 1,563 | 3,150 | |||||||
Translation adjustments | 54 | (27 | ) | ||||||
Ending balance | $ | (1,100 | ) | $ | (1,951 | ) | |||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Summary of Inventories | Inventories as of December 31, 2014 and 2013 consist of the following: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Finished goods | 40,404 | 43,734 | |||||||
Semi-finished goods and work-in-process | 68,153 | 92,030 | |||||||
Raw materials | 7,520 | 9,464 | |||||||
Materials in-transit and other | 6,745 | 1,870 | |||||||
Less: inventory reserve | (47,488 | ) | (72,400 | ) | |||||
Inventories, net | $ | 75,334 | $ | 74,698 | |||||
Changes in Inventory Reserve | Changes in inventory reserve for the years ended December 31, 2014 and 2013 are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | (72,400 | ) | $ | (25,429 | ) | |||
Change in reserve | (883 | ) | (48,015 | ) | |||||
Write off | 23,765 | 3,086 | |||||||
Translation adjustments | 2,030 | (2,042 | ) | ||||||
Ending balance | $ | (47,488 | ) | $ | (72,400 | ) | |||
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Summary of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2014 and 2013 are comprised of the following: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Buildings and related structures | $ | 70,552 | $ | 81,050 | |||||
Machinery and equipment | 269,031 | 269,840 | |||||||
Vehicles and others | 24,812 | 22,397 | |||||||
364,395 | 373,287 | ||||||||
Less: accumulated depreciation | (157,341 | ) | (136,397 | ) | |||||
Land | 16,712 | 17,407 | |||||||
Property, plant and equipment, net | $ | 223,766 | $ | 254,297 | |||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||
Summary of Intangible Assets | Intangible assets as of December 31, 2014 and 2013 are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Technology | $ | 19,683 | $ | 20,081 | |||||
Customer relationships | 28,269 | 29,444 | |||||||
Intellectual property assets | 8,359 | 7,829 | |||||||
Less: accumulated amortization | (53,860 | ) | (54,243 | ) | |||||
Intangible assets, net | $ | 2,451 | $ | 3,111 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Summary of Accrued Expenses | Accrued expenses as of December 31, 2014 and 2013 are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Payroll, benefits and related taxes, excluding severance benefits | $ | 18,654 | $ | 19,869 | |||||
Withholding tax levied on intercompany interest income | 27,497 | 23,872 | |||||||
Interest on senior notes | 7,040 | 6,749 | |||||||
Settlement obligations | 8,976 | 6,460 | |||||||
Outside service fees | 10,640 | 1,462 | |||||||
Others | 8,253 | 7,082 | |||||||
Accrued expenses | $ | 81,060 | $ | 65,494 | |||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||
Fair Value of Outstanding Forward and Zero Cost Collar Recorded as Assets | The fair values of the Company’s outstanding forward and zero cost collar contracts recorded as assets as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Asset Derivatives: | |||||||||||||||||||||||||||||
Zero cost collars | Other current assets | $ | — | $ | 4,912 | ||||||||||||||||||||||||
Offsetting of Derivative Assets | Offsetting of derivative assets as of December 31, 2013 is as follows: | ||||||||||||||||||||||||||||
As of December 31, 2013 | Gross amounts of | Gross amounts | Net amounts of | Gross amounts not offset | Net amount | ||||||||||||||||||||||||
recognized | offset in the | assets/liabilities | in the balance sheets | ||||||||||||||||||||||||||
assets/liabilities | balance sheets | presented in the | |||||||||||||||||||||||||||
balance sheets | Financial | Cash collateral | |||||||||||||||||||||||||||
instruments | received/pledged | ||||||||||||||||||||||||||||
Asset Derivatives: | |||||||||||||||||||||||||||||
Zero cost collars | $ | 4,912 | $ | — | $ | 4,912 | $ | — | $ | — | $ | 4,912 | |||||||||||||||||
Impact of Derivative Instruments on Consolidated Statement of Operations | The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Derivatives in | Amount of | Location of | Amount of | Location of | Amount of | ||||||||||||||||||||||||
ASC 815 Cash | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | ||||||||||||||||||||||||
Flow Hedging | Recognized in | Reclassified from | Reclassified from | Recognized in | Recognized in | ||||||||||||||||||||||||
Relationships | AOCI on | AOCI into | AOCI into | Statement of | Statement of | ||||||||||||||||||||||||
Derivatives | Statement of | Statement of | Operations on | Operations on | |||||||||||||||||||||||||
(Effective Portion) | Operations | Operations | Derivative | Derivatives | |||||||||||||||||||||||||
(Effective Portion) | (Effective Portion) | (Ineffective | (Ineffective Portion | ||||||||||||||||||||||||||
Portion and | and Amount | ||||||||||||||||||||||||||||
Amount | Excluded from | ||||||||||||||||||||||||||||
Excluded from | Effectiveness Testing) | ||||||||||||||||||||||||||||
Effectiveness | |||||||||||||||||||||||||||||
Testing) | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||
Forward | $ | — | $ | 3,405 | Net sales | $ | — | $ | 3,484 | Other income (expenses)— | $ | — | $ | 412 | |||||||||||||||
Others | |||||||||||||||||||||||||||||
Zero cost collars | (69 | ) | 4,092 | Net sales | 6,033 | (500 | ) | Other income (expenses)— | (12 | ) | 222 | ||||||||||||||||||
Others | |||||||||||||||||||||||||||||
Total | $ | (69 | ) | $ | 7,497 | $ | 6,033 | $ | 2,984 | $ | (12 | ) | $ | 634 | |||||||||||||||
Product_Warranties_Tables
Product Warranties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Guarantees [Abstract] | |||||||||
Schedule of Changes in Accrued Warranty Liabilities | Changes in accrued warranty liabilities for each period are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 877 | $ | 1,223 | |||||
Provisions | 7,194 | 1,917 | |||||||
Usage | (4,923 | ) | (2,268 | ) | |||||
Translation adjustments | (175 | ) | 5 | ||||||
Ending balance | $ | 2,973 | $ | 877 | |||||
Longterm_Borrowings_Tables
Long-term Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Components of Long-Term Borrowings | Long-term borrowings as of December 31, 2014 and 2013 are as follows: | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
6.625% senior notes due July 2021 (the 2021 Notes) | $ | 225,000 | $ | 225,000 | |||||
Discount on senior notes | (965 | ) | (1,077 | ) | |||||
Long-term borrowings, net of unamortized discount | $ | 224,035 | $ | 223,923 | |||||
Accrued_Severance_Benefits_Tab
Accrued Severance Benefits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Postemployment Benefits [Abstract] | |||||||||
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | ||||||||
Beginning balance | $ | 135,356 | $ | 116,036 | |||||
Provisions | 17,703 | 23,169 | |||||||
Severance payments | (6,650 | ) | (6,130 | ) | |||||
Translation adjustments | (6,003 | ) | 2,281 | ||||||
140,405 | 135,356 | ||||||||
Less: cumulative contributions to the National Pension Fund | (346 | ) | (383 | ) | |||||
Group severance insurance plan | (770 | ) | (801 | ) | |||||
$ | 139,289 | $ | 134,172 | ||||||
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its employees upon their normal retirement age: | ||||||||
Severance | |||||||||
Benefit | |||||||||
2015 | $ | 294 | |||||||
2016 | 1,154 | ||||||||
2017 | 1,714 | ||||||||
2018 | 2,937 | ||||||||
2019 | 2,263 | ||||||||
2020 – 2024 | 23,798 |
Common_Stock_Tables
Common Stock (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Schedule of Changes in Common Stock | Changes in common stock for each period are as follows: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Common stock at the beginning of the period | 34,048,366 | $ | 406 | 35,635,357 | $ | 396 | |||||||||||
Exercise of stock options | 6,795 | 0 | 579,476 | 6 | |||||||||||||
Exercise of warrants | 1,307 | 0 | 448,281 | 4 | |||||||||||||
Acquisitions of treasury stock | — | — | (2,614,748 | ) | — | ||||||||||||
Total common stock outstanding at the end of the period | 34,056,468 | $ | 406 | 34,048,366 | $ | 406 | |||||||||||
Equity_Incentive_Plans_Tables
Equity Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||
Summary of Stock Option and Restricted Stock Bonus Activities | The following summarizes stock option and restricted stock bonus activities for the years ended December 31, 2014, 2013 and 2012 after giving effect to the corporate conversion. At the date of grant, all options had an exercise price above the fair value of common stock: | ||||||||||||||||||||||||
Number of | Weighted | Aggregate | Weighted | ||||||||||||||||||||||
Options | Average | Intrinsic | Average | ||||||||||||||||||||||
Exercise | Value of | Remaining | |||||||||||||||||||||||
Price of | Stock | Contractual | |||||||||||||||||||||||
Stock | Options | Life of | |||||||||||||||||||||||
Options | Stock | ||||||||||||||||||||||||
Options | |||||||||||||||||||||||||
Outstanding at January 1, 2012 | 2,008,960 | $ | 6.79 | 2,773 | 8.1 years | ||||||||||||||||||||
Granted | 1,319,500 | 8.29 | — | — | |||||||||||||||||||||
Forfeited | (95,271 | ) | 11.07 | — | — | ||||||||||||||||||||
Exercised | (155,708 | ) | 5.88 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2012 | 3,077,481 | $ | 7.35 | 26,385 | 7.9 years | ||||||||||||||||||||
Vested and expected to vest at December 31, 2012 | 3,021,937 | 7.32 | 25,988 | 7.9 years | |||||||||||||||||||||
Exercisable at December 31, 2012 | 1,726,891 | 6.54 | 16,203 | 7.0 years | |||||||||||||||||||||
Outstanding at January 1, 2013 | 3,077,481 | 7.35 | 26,385 | 7.9 years | |||||||||||||||||||||
Granted | 455,000 | 17.08 | — | — | |||||||||||||||||||||
Forfeited | (8,360 | ) | 10.89 | — | — | ||||||||||||||||||||
Exercised | (579,476 | ) | 7.44 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2013 | 2,944,645 | $ | 8.82 | 31,558 | 7.3 years | ||||||||||||||||||||
Vested and expected to vest at December 31, 2013 | 2,916,184 | 8.78 | 31,376 | 7.3 years | |||||||||||||||||||||
Exercisable at December 31, 2013 | 1,946,475 | 7 | 24,325 | 6.7 years | |||||||||||||||||||||
Outstanding at January 1, 2014 | 2,944,645 | $ | 8.82 | 31,558 | 7.3 years | ||||||||||||||||||||
Granted | 310,000 | 16.75 | — | — | |||||||||||||||||||||
Forfeited | (31,905 | ) | 8.34 | — | — | ||||||||||||||||||||
Exercised | (6,795 | ) | 7.03 | — | — | ||||||||||||||||||||
Outstanding at December 31, 2014 | 3,215,945 | $ | 9.6 | 39,615 | 6.6 years | ||||||||||||||||||||
Vested and expected to vest at December 31, 2014 | 3,204,967 | 9.58 | 39,610 | 6.6 years | |||||||||||||||||||||
Exercisable at December 31, 2014 | 2,760,402 | 8.7 | 39,187 | 6.3 years | |||||||||||||||||||||
Assumptions used in Black-Scholes Option-Pricing Model on Weighted Average Basis | The following summarizes the grant-date fair value of options granted for the years ended December 31, 2014, 2013 and 2012 and assumptions used in the Black-Scholes option-pricing model on a weighted average basis: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Grant-date fair value of option | $ | 4.1 | $ | 4.3 | $ | 2.7 | |||||||||||||||||||
Expected term | 2.7 Years | 2.8 Years | 3.0 Years | ||||||||||||||||||||||
Risk-free interest rate | 0.7 | % | 0.4 | % | 0.4 | % | |||||||||||||||||||
Expected volatility | 36.7 | % | 37.6 | % | 48.8 | % | |||||||||||||||||||
Expected dividends | — | — | — | ||||||||||||||||||||||
Number and Weighted Average Grant-Date Fair Value of Unvested Stock Options | The number and weighted average grant-date fair value of the unvested stock options are as follows: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Number | Weighted | Number | Weighted | Number | Weighted | ||||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Grant- | Grant- | Grant- | |||||||||||||||||||||||
Date | Date | Date | |||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
Unvested options at the beginning of the period | 998,170 | $ | 3.69 | 1,350,590 | $ | 2.79 | 796,514 | $ | 2.6 | ||||||||||||||||
Granted options during the period | 310,000 | 4.1 | 455,000 | 4.3 | 1,319,500 | 2.7 | |||||||||||||||||||
Vested options during the period | (819,818 | ) | 3.61 | (651,530 | ) | 2.68 | (654,022 | ) | 2.32 | ||||||||||||||||
Forfeited options during the period | (31,905 | ) | 3.2 | (7,106 | ) | 3.92 | (74,335 | ) | 4.02 | ||||||||||||||||
Exercised options during the period | (904 | ) | 3.16 | (148,784 | ) | 2.46 | (37,067 | ) | 1.87 | ||||||||||||||||
Unvested options at the end of the period | 455,543 | $ | 4.18 | 998,170 | $ | 3.69 | 1,350,590 | $ | 2.79 | ||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Income Tax Expense | The components of income tax expense are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income (loss) before income taxes | |||||||||||||
Domestic | $ | (22,146 | ) | $ | (6,127 | ) | $ | (2,634 | ) | ||||
Foreign | (93,563 | ) | (54,106 | ) | 125,519 | ||||||||
$ | (115,709 | ) | $ | (60,233 | ) | $ | 122,885 | ||||||
Current income taxes expense (benefit) | |||||||||||||
Domestic | $ | (3,300 | ) | $ | (2,258 | ) | $ | 6,170 | |||||
Foreign | 3,312 | 4,875 | 4,533 | ||||||||||
Uncertain tax position liability (domestic) | 10 | (87 | ) | 14 | |||||||||
Uncertain tax position liability (foreign) | (66 | ) | 7 | 175 | |||||||||
(44 | ) | 2,537 | 10,892 | ||||||||||
Deferred income taxes expense | |||||||||||||
Foreign | 1,567 | 1,433 | 1,955 | ||||||||||
Total income tax expenses | $ | 1,523 | $ | 3,970 | $ | 12,847 | |||||||
Effective tax rate | — | — | 10.5 | % | |||||||||
Difference Between Provision for Domestic and Foreign Income Taxes and Amount Calculated by Statutory Tax Rate to Net Income Before Income Taxes | The provision for domestic and foreign income taxes incurred is different from the amount calculated by applying the statutory tax rate to the net income before income taxes. The significant items causing this difference are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Provision computed at statutory rate | $ | (40,498 | ) | $ | (21,082 | ) | $ | 43,010 | |||||
Change in statutory tax rate | — | — | — | ||||||||||
Difference in foreign tax rates | 10,130 | 5,375 | (12,544 | ) | |||||||||
Permanent differences | |||||||||||||
Derivative assets adjustment | (1,526 | ) | 1,469 | 3,364 | |||||||||
TPECs, hybrid and other interest | (6,813 | ) | (3,151 | ) | (5,920 | ) | |||||||
Permanent impairment | — | — | (935 | ) | |||||||||
Thin capitalization | — | — | 97 | ||||||||||
Deemed dividend | — | — | 7,609 | ||||||||||
Permanent foreign currency gain (loss) | (901 | ) | 3,351 | (465 | ) | ||||||||
Customs penalty | — | — | 742 | ||||||||||
Non-deductible settlement | 6,318 | — | — | ||||||||||
Other permanent differences | (1,097 | ) | (881 | ) | 1,556 | ||||||||
Withholding tax | 3,506 | 3,918 | 4,242 | ||||||||||
Foreign exchange rate adjustment | 4,687 | (7,455 | ) | (4,127 | ) | ||||||||
Change in valuation allowance | 29,484 | 24,062 | (21,184 | ) | |||||||||
Tax credit | (1,811 | ) | (1,818 | ) | (2,796 | ) | |||||||
Uncertain tax positions liability | (56 | ) | (80 | ) | 189 | ||||||||
Others | 100 | 262 | 9 | ||||||||||
Income tax expenses | $ | 1,523 | $ | 3,970 | $ | 12,847 | |||||||
Summary of Composition of Net Deferred Income Tax Assets (Liabilities) | A summary of the composition of net deferred income tax assets (liabilities) as of December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Deferred tax assets | |||||||||||||
Accounts Receivables | $ | 1,076 | $ | 28,628 | $ | 8,799 | |||||||
Inventories | 11,015 | 5,866 | 3,501 | ||||||||||
Accrued expenses | 9,030 | 8,758 | 2,812 | ||||||||||
Product warranties | 719 | 292 | 306 | ||||||||||
Other reserves | 457 | 684 | 1,072 | ||||||||||
Royalty income | 147 | 1,364 | 3,118 | ||||||||||
Property, plant and equipment | 15,914 | 13,667 | 12,945 | ||||||||||
Intangible assets | 780 | 922 | — | ||||||||||
Accumulated severance benefits | 30,413 | 27,769 | 23,465 | ||||||||||
Foreign currency translation loss | 17,496 | 12,220 | 13,533 | ||||||||||
NOL carry-forwards | 80,979 | 53,714 | 72,533 | ||||||||||
Tax credit | 25,161 | 26,041 | 26,786 | ||||||||||
Other long-term payable | 1,034 | 608 | 168 | ||||||||||
Others | 1,990 | 2,887 | 1,438 | ||||||||||
Total deferred tax assets | 196,211 | 183,420 | 170,476 | ||||||||||
Less: valuation allowance | (194,739 | ) | (178,729 | ) | (162,968 | ) | |||||||
1,472 | 4,691 | 7,508 | |||||||||||
Deferred tax liabilities | |||||||||||||
Derivative assets | — | 1,189 | 124 | ||||||||||
Intangible assets | — | — | 1,712 | ||||||||||
Foreign currency translation gain | 748 | 19 | 1,003 | ||||||||||
Others | 147 | 1,239 | 295 | ||||||||||
Total deferred tax liabilities | 895 | 2,447 | 3,134 | ||||||||||
Net deferred tax assets | $ | 577 | $ | 2,244 | $ | 4,374 | |||||||
Reported as | |||||||||||||
Current deferred income tax assets | $ | 237 | $ | 1,348 | $ | 1,788 | |||||||
Non-current deferred income tax assets | $ | 415 | $ | 896 | $ | 2,586 | |||||||
Current deferred income tax liabilities | $ | (72 | ) | $ | — | $ | — | ||||||
Non-current deferred income tax liabilities | $ | (3 | ) | $ | — | $ | — | ||||||
Changes in Valuation Allowance for Deferred Tax Assets | Changes in valuation allowance for deferred tax assets for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Beginning balance | $ | 178,729 | $ | 162,968 | $ | 200,056 | |||||||
Charged to expense (income) | 29,484 | 24,062 | (21,184 | ) | |||||||||
NOL and tax credit expiration | (7,605 | ) | (10,150 | ) | (25,305 | ) | |||||||
Translation adjustment | (5,869 | ) | 1,849 | 9,401 | |||||||||
Ending balance | $ | 194,739 | $ | 178,729 | $ | 162,968 | |||||||
Reconciliation of Total Amounts of Unrecognized Tax Benefits | A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of each period is as follows: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits, balance at the beginning | $ | 11,865 | $ | 11,196 | $ | 10,297 | |||||||
Additions based on tax positions related to the current year | 4,472 | 1,690 | 1,342 | ||||||||||
Additions for tax positions of prior years | 47 | — | 41 | ||||||||||
Lapse of statute of limitations | (1,040 | ) | (1,067 | ) | (942 | ) | |||||||
Translation adjustment | (375 | ) | 46 | 458 | |||||||||
Unrecognized tax benefits, balance at the ending | $ | 14,969 | $ | 11,865 | $ | 11,196 | |||||||
Geographic_and_Segment_Informa1
Geographic and Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Segment Reporting [Abstract] | |||||||||||||
Net Sales by Business Line | The following is a summary of net sales by business line: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net Sales | |||||||||||||
Display Solutions | $ | 199,861 | $ | 202,951 | $ | 285,939 | |||||||
Semiconductor Manufacturing Services | 360,549 | 395,365 | 395,858 | ||||||||||
Power Solutions | 137,246 | 135,329 | 124,960 | ||||||||||
All other | 562 | 532 | 579 | ||||||||||
Total net sales | $ | 698,218 | $ | 734,177 | $ | 807,336 | |||||||
Net Sales by Region, Based on Location of Customer | The following is a summary of net sales by region, based on the location of the customer: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Korea | $ | 260,139 | $ | 313,634 | $ | 365,682 | |||||||
Asia Pacific (other than Korea) | 324,248 | 284,429 | 271,908 | ||||||||||
U.S.A. | 91,308 | 100,790 | 124,481 | ||||||||||
Europe | 21,159 | 32,136 | 39,304 | ||||||||||
Others | 1,364 | 3,188 | 5,961 | ||||||||||
$ | 698,218 | $ | 734,177 | $ | 807,336 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Schedule of Minimum Aggregate Rental Payments Due Under Non-Cancelable Lease Contracts | As of December 31, 2014, the minimum aggregate rental payments due under non-cancelable lease contracts are as follows: | ||||
2015 | $ | 5,876 | |||
2016 | 4,491 | ||||
2017 | 2,168 | ||||
2018 | 2,149 | ||||
2019 | 2,025 | ||||
2020 and thereafter | 29,913 | ||||
$ | 46,622 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Equity [Abstract] | |||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consists of the following at December 31, 2014 and 2013, respectively: | ||||||||||||||||
Year Ended December 31, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Foreign currency translation adjustments | $ | (35,551 | ) | $ | (57,326 | ) | |||||||||||
Derivative adjustments | 485 | 6,587 | |||||||||||||||
Unrealized gain on investments | — | 681 | |||||||||||||||
Total | $ | (35,066 | ) | $ | (50,058 | ) | |||||||||||
Changes in Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||||
Year Ended December 31, 2014 | Foreign | Derivative | Unrealized | Total | |||||||||||||
currency | adjustments | gain on | |||||||||||||||
translation | investments | ||||||||||||||||
adjustments | |||||||||||||||||
Beginning balance | $ | (57,326 | ) | $ | 6,587 | $ | 681 | $ | (50,058 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 21,775 | (69 | ) | 1,201 | 22,907 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (6,033 | ) | (1,882 | ) | (7,915 | ) | ||||||||||
Net current-period other comprehensive income (loss) | 21,775 | (6,102 | ) | (681 | ) | 14,992 | |||||||||||
Ending balance | $ | (35,551 | ) | $ | 485 | $ | — | $ | (35,066 | ) | |||||||
Year Ended December 31, 2013 | Foreign | Derivative | Unrealized | Total | |||||||||||||
currency | adjustments | gain on | |||||||||||||||
translation | investments | ||||||||||||||||
adjustments | |||||||||||||||||
Beginning balance | $ | (43,599 | ) | $ | 2,074 | $ | 75 | $ | (41,450 | ) | |||||||
Other comprehensive income (loss) before reclassifications | (13,727 | ) | 7,497 | 606 | (5,624 | ) | |||||||||||
Amounts reclassified from accumulated other comprehensive income | — | (2,984 | ) | — | (2,984 | ) | |||||||||||
Net current-period other comprehensive income (loss) | (13,727 | ) | 4,513 | 606 | (8,608 | ) | |||||||||||
Ending balance | $ | (57,326 | ) | $ | 6,587 | $ | 681 | $ | (50,058 | ) | |||||||
Year Ended December 31, 2012 | Foreign | Derivative | Unrealized | Total | |||||||||||||
currency | adjustments | gain on | |||||||||||||||
translation | investments | ||||||||||||||||
adjustments | |||||||||||||||||
Beginning balance | $ | (5,862 | ) | $ | (7,771 | ) | $ | 90 | $ | (13,543 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (37,737 | ) | 5,237 | (15 | ) | (32,515 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 4,608 | — | 4,608 | |||||||||||||
Net current-period other comprehensive income (loss) | (37,737 | ) | 9,845 | (15 | ) | (27,907 | ) | ||||||||||
Ending balance | $ | (43,599 | ) | $ | 2,074 | $ | 75 | $ | (41,450 | ) | |||||||
Earnings_loss_per_Share_Tables
Earnings (loss) per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Table Illustrating Computation of Basic and Diluted Earnings (Loss) Per Common Share | The following table illustrates the computation of basic and diluted earnings (loss) per common share: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income (loss) | $ | (117,232 | ) | $ | (64,203 | ) | $ | 110,038 | |||||
Weighted average common stock outstanding | |||||||||||||
Basic | 34,055,513 | 35,232,194 | 36,567,684 | ||||||||||
Diluted | 34,055,513 | 35,232,194 | 37,533,391 | ||||||||||
Earnings (loss) per share | |||||||||||||
Basic | $ | (3.44 | ) | $ | (1.82 | ) | $ | 3.01 | |||||
Diluted | $ | (3.44 | ) | $ | (1.82 | ) | $ | 2.93 | |||||
Table Showing Outstanding Options and Warrants Excluded from Computation of Diluted Earnings (Loss) Per Share | The following outstanding instruments were excluded from the computation of diluted earnings (loss) per share, as they would have an anti-dilutive effect on the calculation: | ||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Options | 3,215,945 | 2,944,645 | 255,023 | ||||||||||
Warrants | — | 1,426,330 | 1,874,977 |
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Results (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Selected Consolidated Statements of Operations | The following tables present selected unaudited Consolidated Statements of Operations for each quarter of the years ended December 31, 2014 and 2013. | ||||||||||||||||
Fiscal Year 2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 164,164 | $ | 172,070 | $ | 194,332 | $ | 167,652 | |||||||||
Gross profit | 40,277 | 35,457 | 42,630 | 34,498 | |||||||||||||
Operating loss | (7,887 | ) | (19,348 | ) | (19,482 | ) | (30,409 | ) | |||||||||
Net income (loss) | $ | (21,605 | ) | $ | 15,010 | $ | (46,807 | ) | $ | (63,830 | ) | ||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | (0.63 | ) | $ | 0.44 | $ | (1.37 | ) | $ | (1.87 | ) | ||||||
Diluted | $ | (0.63 | ) | $ | 0.43 | $ | (1.37 | ) | $ | (1.87 | ) | ||||||
Weighted average common stock outstanding: | |||||||||||||||||
Basic | 34,052,875 | 34,056,359 | 34,056,359 | 34,056,413 | |||||||||||||
Diluted | 34,052,875 | 35,177,915 | 34,056,359 | 34,056,413 | |||||||||||||
Fiscal Year 2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Net sales | $ | 194,322 | $ | 193,533 | $ | 170,812 | $ | 175,510 | |||||||||
Gross profit | 58,235 | 45,241 | 34,413 | 17,179 | |||||||||||||
Operating income (loss) | 13,966 | 2,665 | (10,220 | ) | (33,179 | ) | |||||||||||
Net income (loss) | $ | (17,589 | ) | $ | (24,668 | ) | $ | 251 | $ | (22,197 | ) | ||||||
Earnings (loss) per share: | |||||||||||||||||
Basic | $ | (0.49 | ) | $ | (0.70 | ) | $ | 0.01 | $ | (0.64 | ) | ||||||
Diluted | $ | (0.49 | ) | $ | (0.70 | ) | $ | 0.01 | $ | (0.64 | ) | ||||||
Weighted average common stock outstanding: | |||||||||||||||||
Basic | 35,539,413 | 35,474,001 | 35,443,820 | 34,480,849 | |||||||||||||
Diluted | 35,539,413 | 35,474,001 | 37,484,601 | 34,480,849 |
Business_Basis_of_Presentation3
Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Business_Lines | |||
Nature Of Operations [Line Items] | |||
Number of business lines | 3 | ||
Cash equivalents, highly liquid investments original maturity date | Three months or less | ||
Percentage of employees eligible for severance benefits | 98.00% | ||
Advertising expense | $155,000 | $161,000 | $142,000 |
Standard limited warranty period | The standard limited warranty period is one year for the majority of products. | ||
Dividends | 0 | ||
Percentage of tax benefit realized upon settlement | 50.00% | ||
Selling, general and administrative expenses [Member] | |||
Nature Of Operations [Line Items] | |||
Shipping and handling cost | $3,386,000 | $2,850,000 | $3,057,000 |
Software [Member] | |||
Nature Of Operations [Line Items] | |||
Estimated useful life of Intangible assets | 5 years | ||
Minimum [Member] | Technology [Member] | |||
Nature Of Operations [Line Items] | |||
Estimated useful life of Intangible assets | 1 year | ||
Minimum [Member] | Customer relationships [Member] | |||
Nature Of Operations [Line Items] | |||
Estimated useful life of Intangible assets | 1 year | ||
Maximum [Member] | Technology [Member] | |||
Nature Of Operations [Line Items] | |||
Estimated useful life of Intangible assets | 5 years | ||
Maximum [Member] | Customer relationships [Member] | |||
Nature Of Operations [Line Items] | |||
Estimated useful life of Intangible assets | 5 years | ||
Maximum [Member] | Intellectual property assets [Member] | |||
Nature Of Operations [Line Items] | |||
Estimated useful life of Intangible assets | 10 years |
Business_Basis_of_Presentation4
Business, Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Vehicles and others [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 5 years |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 30 years |
Minimum [Member] | Buildings and related structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 40 years |
Maximum [Member] | Buildings and related structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 20 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 12 years |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Jul. 18, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from issuance of senior notes | $218,836,000 | |||
Impairment charges | 10,269,000 | 6,378,000 | ||
Six Inch Fabrication Facility Closure [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment charges | 10,269,000 | 10,269,000 | ||
Fabrication facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment charges | 617,000 | |||
Other Asset Class [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Assets fair value on recurring basis | 0 | 0 | ||
Senior notes [Member] | 6.625% senior notes due 2021 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from issuance of senior notes | 218,800,000 | 218,800,000 | ||
Interest rate | 6.63% | 6.63% | 6.63% | 6.63% |
Due date | 15-Jul-21 | 15-Jul-21 | 15-Jul-21 | |
Aggregate principal amount | 225,000,000 | 225,000,000 | 225,000,000 | |
Original debt issue discount | 965,000 | 1,077,000 | 965,000 | 1,100,000 |
Debt issuance costs paid | 5,100,000 | 5,100,000 | ||
Senior notes [Member] | 10.500% senior notes due 2018 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate | 10.50% | 10.50% | ||
Due date | 15-Apr-18 | |||
Dawin Electronics [Member] | Fabrication facility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment charges | $5,870,000 |
Fair_Value_Measurements_Assets
Fair Value Measurements - Assets Measured at Fair Value on Recurring Basis (Detail) (Assets measured at fair value on recurring basis [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Carrying Value [Member] | Other non-current assets [Member] | |
Assets: | |
Available-for-sale securities | $1,236 |
Carrying Value [Member] | Other current assets [Member] | |
Assets: | |
Derivative assets | 4,912 |
Fair Value Measurement [Member] | Other non-current assets [Member] | |
Assets: | |
Available-for-sale securities | 1,236 |
Fair Value Measurement [Member] | Other current assets [Member] | |
Assets: | |
Derivative assets | 4,912 |
Quoted Prices in Active Markets for Identical Asset (Level 1) [Member] | Other non-current assets [Member] | |
Assets: | |
Available-for-sale securities | 1,236 |
Significant Other Observable Inputs (Level 2) [Member] | Other current assets [Member] | |
Assets: | |
Derivative assets | $4,912 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Long-term Borrowings: | ||
Carrying amount of senior notes | $224,035 | $223,923 |
6.625% senior notes due 2021 [Member] | Senior notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Long-term Borrowings: | ||
Carrying amount of senior notes | 224,035 | 223,923 |
Estimated fair value of senior notes | $206,100 | $229,500 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Parenthetical) (Detail) (Senior notes [Member], 6.625% senior notes due 2021 [Member]) | 0 Months Ended | 12 Months Ended | ||
Jul. 18, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 18, 2013 | |
Senior notes [Member] | 6.625% senior notes due 2021 [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest rate | 6.63% | 6.63% | 6.63% | 6.63% |
Due date | 15-Jul-21 | 15-Jul-21 | 15-Jul-21 |
Accounts_Receivable_Schedule_o
Accounts Receivable - Schedule of Accounts Receivable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Receivables [Abstract] | |||
Accounts receivable | $74,850 | $81,862 | |
Notes receivable | 257 | 460 | |
Allowances for doubtful accounts | -263 | -268 | -401 |
Sales return reserve | -787 | -1,205 | -1,264 |
Low yield compensation reserve | -1,100 | -1,951 | -3,206 |
Accounts receivable, net | $72,957 | $78,898 |
Accounts_Receivable_Schedule_o1
Accounts Receivable - Schedule of Changes in Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ||
Beginning balance | ($268) | ($401) |
Reversal of allowance (Bad debt expense) | -3,718 | 115 |
Write off | 3,508 | 18 |
Translation adjustments | 215 | |
Ending balance | ($263) | ($268) |
Accounts_Receivable_Schedule_o2
Accounts Receivable - Schedule of Changes in Sales Return Reserve (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ||
Beginning balance | ($1,205) | ($1,264) |
Provisions | -3,224 | -1,218 |
Usage | 3,598 | 1,296 |
Translation adjustments | 44 | -19 |
Ending balance | ($787) | ($1,205) |
Accounts_Receivable_Schedule_o3
Accounts Receivable - Schedule of Changes in Low Yield Compensation Reserve (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Receivables [Abstract] | ||
Beginning balance | ($1,951) | ($3,206) |
Provisions | -766 | -1,868 |
Usage | 1,563 | 3,150 |
Translation adjustments | 54 | -27 |
Ending balance | ($1,100) | ($1,951) |
Accounts_Receivable_Additional
Accounts Receivable - Additional Information (Detail) (Trade Accounts Receivable [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sale of accounts receivable | $22,256 | $28,869 |
Selling, general and administrative expenses [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Pre-tax losses on accounts receivable | $64 | $73 |
Inventories_Summary_of_Invento
Inventories - Summary of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Inventory Disclosure [Abstract] | |||
Finished goods | $40,404 | $43,734 | |
Semi-finished goods and work-in-process | 68,153 | 92,030 | |
Raw materials | 7,520 | 9,464 | |
Materials in-transit and other | 6,745 | 1,870 | |
Less: inventory reserve | -47,488 | -72,400 | -25,429 |
Inventories, net | $75,334 | $74,698 |
Inventories_Changes_in_Invento
Inventories - Changes in Inventory Reserve (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Abstract] | ||
Beginning balance | ($72,400) | ($25,429) |
Change in reserve | -883 | -48,015 |
Write off | 23,765 | 3,086 |
Translation adjustments | 2,030 | -2,042 |
Ending balance | ($47,488) | ($72,400) |
Property_Plant_and_Equipment_S
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $364,395 | $373,287 |
Less: accumulated depreciation | -157,341 | -136,397 |
Land | 16,712 | 17,407 |
Property, plant and equipment, net | 223,766 | 254,297 |
Buildings and related structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 70,552 | 81,050 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 269,031 | 269,840 |
Vehicles and others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $24,812 | $22,397 |
Property_Plant_and_Equipment_A
Property, Plant and Equipment - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expenses | $28,475 | $25,934 | ||
Impairment charges | 10,269 | 6,378 | ||
Six Inch Fabrication Facility Closure [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | 10,269 | 10,269 | ||
Six Inch Fabrication Facility Closure [Member] | Machinery and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | 1,763 | 1,763 | ||
Six Inch Fabrication Facility Closure [Member] | Buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | 8,239 | 8,239 | ||
Six Inch Fabrication Facility Closure [Member] | Other tangible assets [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | 267 | 267 | ||
Dawin Electronics [Member] | Machinery and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment charges | $508 | $508 |
Intangible_Assets_Summary_of_I
Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Less: accumulated amortization | ($53,860) | ($54,243) |
Intangible assets, net | 2,451 | 3,111 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 19,683 | 20,081 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 28,269 | 29,444 |
Intellectual property assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $8,359 | $7,829 |
Intangible_Assets_Additional_I
Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expenses for intangible assets | $1,514 | $6,792 | |
Estimated aggregate amortization expense of intangible assets in 2015 | 316 | ||
Estimated aggregate amortization expense of intangible assets in 2016 | 315 | ||
Estimated aggregate amortization expense of intangible assets in 2017 | 315 | ||
Estimated aggregate amortization expense of intangible assets in 2018 | 315 | ||
Estimated aggregate amortization expense of intangible assets in 2019 | 314 | ||
Impairment charges | 10,269 | 6,378 | |
Fabrication facility [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 617 | ||
Dawin Electronics [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of goodwill | 3,389 | 3,389 | |
Dawin Electronics [Member] | Fabrication facility [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 5,870 | ||
Dawin Electronics [Member] | Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $1,864 | $1,864 |
Accrued_Expenses_Summary_of_Ac
Accrued Expenses - Summary of Accrued Expenses (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Payroll, benefits and related taxes, excluding severance benefits | $18,654 | $19,869 |
Withholding tax levied on intercompany interest income | 27,497 | 23,872 |
Interest on senior notes | 7,040 | 6,749 |
Settlement obligations | 8,976 | 6,460 |
Outside service fees | 10,640 | 1,462 |
Others | 8,253 | 7,082 |
Accrued expenses | $81,060 | $65,494 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Sep. 01, 2014 |
Contracts | |||
Derivative [Line Items] | |||
Number of derivative contracts | 0 | ||
Estimated amount reclassified from accumulated other comprehensive income into earnings, period | 12 months | ||
Estimated amount reclassified from accumulated other comprehensive income into earnings | $485 | ||
UBS AG Seoul Branch [Member] | |||
Derivative [Line Items] | |||
Settlement proceeds | 430 | ||
Goldman Sachs International bank [Member] | |||
Derivative [Line Items] | |||
Settlement proceeds | $1,050 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Fair Value of Outstanding Forward and Zero Cost Collar Recorded as Assets (Detail) (Zero cost collars [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Asset Derivatives: | |
Derivatives designated as hedging instruments, Asset | $4,912 |
Derivative designated as hedging instruments [Member] | Other current assets [Member] | |
Asset Derivatives: | |
Derivatives designated as hedging instruments, Asset | $4,912 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Offsetting of Derivative Assets (Detail) (Zero cost collars [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Zero cost collars [Member] | |
Derivative [Line Items] | |
Asset Derivatives, Gross amounts of recognized assets/liabilities | $4,912 |
Asset Derivatives, Gross amounts offset in the balance sheets | 0 |
Asset Derivatives, Net amounts of assets/liabilities presented in the balance sheets | 4,912 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Cash collateral received/pledged | 0 |
Asset Derivatives, Net amount after master netting | $4,912 |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Impact of Derivative Instruments on Consolidated Statement of Operations (Detail) (Derivatives in ASC 815 Cash Flow Hedging Relationships [Member], USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | ($69) | $7,497 |
Other income (expenses) - Others [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | -12 | 634 |
Net sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | 6,033 | 2,984 |
Forward [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 3,405 | |
Forward [Member] | Other income (expenses) - Others [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | 412 | |
Forward [Member] | Net sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | 3,484 | |
Zero cost collars [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | -69 | 4,092 |
Zero cost collars [Member] | Other income (expenses) - Others [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) | -12 | 222 |
Zero cost collars [Member] | Net sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | $6,033 | ($500) |
Product_Warranties_Schedule_of
Product Warranties - Schedule of Changes in Accrued Warranty Liabilities (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Commitments and Contingencies Disclosure [Abstract] | ||
Beginning balance | $877 | $1,223 |
Provisions | 7,194 | 1,917 |
Usage | -4,923 | -2,268 |
Translation adjustments | -175 | 5 |
Ending balance | $2,973 | $877 |
Longterm_Borrowings_Components
Long-term Borrowings - Components of Long-Term Borrowings (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 18, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Long-term borrowings, net of unamortized discount | $224,035 | $223,923 | |
Senior notes [Member] | 6.625% senior notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term borrowings | 225,000 | 225,000 | |
Discount on senior notes | ($965) | ($1,077) | ($1,100) |
Longterm_Borrowings_Components1
Long-term Borrowings - Components of Long-Term Borrowings (Parenthetical) (Detail) (Senior notes [Member], 6.625% senior notes due 2021 [Member]) | 0 Months Ended | 12 Months Ended | ||
Jul. 18, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 18, 2013 | |
Senior notes [Member] | 6.625% senior notes due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.63% | 6.63% | 6.63% | 6.63% |
Due date | 15-Jul-21 | 15-Jul-21 | 15-Jul-21 |
Longterm_Borrowings_Additional
Long-term Borrowings - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jul. 18, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 18, 2013 | |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of senior notes | $218,836,000 | |||
Loss on early extinguishment of senior notes | -32,812,000 | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | 225,000,000 | 225,000,000 | 225,000,000 | |
Interest rate | 6.63% | 6.63% | 6.63% | 6.63% |
Due date | 15-Jul-21 | 15-Jul-21 | 15-Jul-21 | |
Aggregate principal amount of senior notes pricing | 99.50% | |||
Proceeds from issuance of senior notes | 218,800,000 | 218,800,000 | ||
Original debt issue discount | 1,100,000 | 965,000 | 1,077,000 | 1,100,000 |
Debt issuance costs paid | 5,100,000 | 5,100,000 | ||
Loss on early extinguishment of senior notes | -32,800,000 | |||
Repurchase premium on senior notes | 23,800,000 | |||
Write-off of discounts, senior notes | 1,900,000 | |||
Write-off of debt issuance costs | 5,300,000 | |||
Interest incurred during the period | 1,800,000 | |||
Percentage of redeem aggregate principal amount of Notes issued | 35.00% | |||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 106.63% | |||
Redemption price | 100.00% | |||
Debt instrument, covenant terms | The Company did not cure the Initial Reporting Defaults within the applicable 60-day grace period and the Initial Reporting Defaults ripened into Events of Default. | |||
Interest rate additional to base rate | 0.25% | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | 2017 [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 103.31% | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 101.66% | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 100.00% | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | Interest Expense [Member] | ||||
Debt Instrument [Line Items] | ||||
Amortization costs | 503,000 | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | Other non-current assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining capitalized costs | $4,320,000 | |||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt acceleration period | 180 days |
Accrued_Severance_Benefits_Add
Accrued Severance Benefits - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Compensation and Retirement Disclosure [Abstract] | ||
Percentage of employees eligible for severance benefits | 98.00% | |
Percentage of severance benefits fund | 0.80% | 0.90% |
Accrued_Severance_Benefits_Cha
Accrued Severance Benefits - Changes in Accrued Severance Benefits (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Restructuring Cost and Reserve [Line Items] | ||
Accrued severance benefits, net | $139,289 | $134,172 |
Employee severance [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | 135,356 | 116,036 |
Provisions | 17,703 | 23,169 |
Severance payments | -6,650 | -6,130 |
Translation adjustments | -6,003 | 2,281 |
Ending balance | 140,405 | 135,356 |
Less: cumulative contributions to the National Pension Fund | -346 | -383 |
Group severance insurance plan | -770 | -801 |
Accrued severance benefits, net | $139,289 | $134,172 |
Accrued_Severance_Benefits_Fut
Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $294 |
2016 | 1,154 |
2017 | 1,714 |
2018 | 2,937 |
2019 | 2,263 |
2020 - 2024 | $23,798 |
Common_Stock_Additional_Inform
Common Stock - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Oct. 07, 2011 | Jul. 30, 2013 | |
Class of Stock [Line Items] | ||||||
Common stock, par value | $0.01 | $0.01 | ||||
Common stock, shares authorized | 150,000,000 | 150,000,000 | ||||
Common stock, shares issued | 40,635,233 | 40,627,131 | ||||
Common stock, shares outstanding | 34,056,468 | 34,048,366 | ||||
Purchase of common stock in open market, shares | 2,614,748 | |||||
Purchase of common stock in open market, value | $51,000,000 | $28,125,000 | ||||
Decrease in stockholders' equity | 51,000,000 | |||||
Expiration date of stock repurchase program | 15-Dec-14 | |||||
Program One [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock repurchase, maximum amount | 60,000,000 | 35,000,000 | ||||
Common stock purchase by an additional amount | 25,000,000 | |||||
Program Two [Member] | ||||||
Class of Stock [Line Items] | ||||||
Common stock repurchase, maximum amount | $100,000,000 | |||||
Program Two [Member] | Minimum [Member] | ||||||
Class of Stock [Line Items] | ||||||
New stock repurchase program, effective date | 5-Aug-13 | |||||
Program Two [Member] | Maximum [Member] | ||||||
Class of Stock [Line Items] | ||||||
New stock repurchase program, effective date | 15-Dec-14 |
Common_Stock_Schedule_of_Chang
Common Stock - Schedule of Changes in Common Stock (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Class of Stock [Line Items] | |||
Balance, Shares beginning | 34,048,366 | ||
Exercise of stock options, Shares | 6,795 | 579,476 | 155,708 |
Acquisitions of treasury stock, Shares | -2,614,748 | ||
Balance, Shares ending | 34,056,468 | 34,048,366 | |
Common stock at the beginning of the period | $406 | ||
Exercise of stock options | 106 | 4,546 | 916 |
Exercise of warrants | 19 | 7,064 | |
Acquisitions of treasury stock | -51,000 | -28,125 | |
Total common stock outstanding at the end of the period | 406 | 406 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common stock at the beginning of the period | 406 | 396 | |
Exercise of stock options | 0 | 6 | 2 |
Exercise of warrants | 0 | 4 | |
Acquisitions of treasury stock | 0 | 0 | |
Total common stock outstanding at the end of the period | $406 | $406 | $396 |
Common Stock Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Balance, Shares beginning | 34,048,366 | 35,635,357 | 37,907,575 |
Exercise of stock options, Shares | 6,795 | 579,476 | 155,708 |
Exercise of warrants, Shares | 1,307 | 448,281 | 52 |
Acquisitions of treasury stock, Shares | -2,614,748 | -2,432,477 | |
Balance, Shares ending | 34,056,468 | 34,048,366 | 35,635,357 |
Equity_Incentive_Plans_Additio
Equity Incentive Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options period shall not exceed from the date of grant | 10 years | ||
Number of shares authorized | 5,902,000 | ||
Number of shares reserved for future issuance | 955,000 | ||
Allocated share based compensation expense | $2,072 | $2,213 | $2,389 |
Fair value of options vested | 2,957 | 1,746 | 1,515 |
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 3 years | ||
Unrecognized compensation cost related to stock options | $636 | ||
Unrecognized compensation cost related to stock options, period for recognition | 9 months 18 days | ||
Options [Member] | First Anniversary, Service Period [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock vesting percentage | 34.00% | ||
Options [Member] | Quarterly Thereafter, Service Period [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock vesting percentage | 8.00% | ||
Options [Member] | Quarterly Thereafter, Service Period [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock vesting percentage | 9.00% |
Equity_Incentive_Plans_Summary
Equity Incentive Plans - Summary of Stock Option and Restricted Stock Bonus Activities (Detail) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Outstanding Beginning Balance, Number of Options | 2,944,645 | 3,077,481 | 2,008,960 | |
Granted, Number of Options | 310,000 | 455,000 | 1,319,500 | |
Forfeited, Number of Options | -31,905 | -8,360 | -95,271 | |
Exercised, Number of Options | -6,795 | -579,476 | -155,708 | |
Outstanding Ending Balance, Number of Options | 3,215,945 | 2,944,645 | 3,077,481 | 2,008,960 |
Vested and expected to vest, Number of Options | 3,204,967 | 2,916,184 | 3,021,937 | |
Exercisable, Number of Options | 2,760,402 | 1,946,475 | 1,726,891 | |
Outstanding Beginning Balance, Weighted Average Exercise Price of Stock Options | $8.82 | $7.35 | $6.79 | |
Granted, Weighted Average Exercise Price of Stock Options | $16.75 | $17.08 | $8.29 | |
Forfeited, Weighted Average Exercise Price of Stock Options | $8.34 | $10.89 | $11.07 | |
Exercised, Weighted Average Exercise Price of Stock Options | $7.03 | $7.44 | $5.88 | |
Outstanding Ending Balance, Weighted Average Exercise Price of Stock Options | $9.60 | $8.82 | $7.35 | $6.79 |
Vested and expected to vest, Weighted Average Exercise Price of Stock Options | $9.58 | $8.78 | $7.32 | |
Exercisable, Weighted Average Exercise Price of Stock Options | $8.70 | $7 | $6.54 | |
Outstanding Beginning Balance, Aggregate Intrinsic Value of Stock Options | $31,558 | $26,385 | $2,773 | |
Outstanding Ending Balance, Aggregate Intrinsic Value of Stock Options | 39,615 | 31,558 | 26,385 | 2,773 |
Vested and expected to vest, Aggregate Intrinsic Value of Stock Options | 39,610 | 31,376 | 25,988 | |
Exercisable, Aggregate Intrinsic Value of Stock Options | $39,187 | $24,325 | $16,203 | |
Outstanding, Weighted Average Remaining Contractual Life of Stock Options | 6 years 7 months 6 days | 7 years 3 months 18 days | 7 years 10 months 24 days | 8 years 1 month 6 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life of Stock Options | 6 years 7 months 6 days | 7 years 3 months 18 days | 7 years 10 months 24 days | |
Exercisable, Weighted Average Remaining Contractual Life of Stock Options | 6 years 3 months 18 days | 6 years 8 months 12 days | 7 years |
Equity_Incentive_Plans_Assumpt
Equity Incentive Plans - Assumptions used in Black-Scholes Option-Pricing Model on Weighted Average Basis (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Grant-date fair value of option | $4.10 | $4.30 | $2.70 |
Expected term | 2 years 8 months 12 days | 2 years 9 months 18 days | 3 years |
Risk-free interest rate | 0.70% | 0.40% | 0.40% |
Expected volatility | 36.70% | 37.60% | 48.80% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Equity_Incentive_Plans_Number_
Equity Incentive Plans - Number and Weighted Average Grant-Date Fair Value of Unvested Stock Options (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Beginning Balance, Number of Options | 998,170 | 1,350,590 | 796,514 |
Granted options during the period, Number | 310,000 | 455,000 | 1,319,500 |
Vested options during the period, Number | -819,818 | -651,530 | -654,022 |
Forfeited options during the period, Number | -31,905 | -7,106 | -74,335 |
Exercised options during the period, Number | -904 | -148,784 | -37,067 |
Outstanding Ending Balance, Number of Options | 455,543 | 998,170 | 1,350,590 |
Unvested options at the beginning of the period, Weighted Average Grant-Date Fair Value | $3.69 | $2.79 | $2.60 |
Granted options during the period, Weighted Average Grant-Date Fair Value | $4.10 | $4.30 | $2.70 |
Vested options during the period, Weighted Average Grant-Date Fair Value | $3.61 | $2.68 | $2.32 |
Forfeited options during the period, Weighted Average Grant-Date Fair Value | $3.20 | $3.92 | $4.02 |
Exercised options during the period, Weighted Average Grant-Date Fair Value | $3.16 | $2.46 | $1.87 |
Unvested options at the end of the period, Weighted Average Grant-Date Fair Value | $4.18 | $3.69 | $2.79 |
Restructuring_and_Impairment_C1
Restructuring and Impairment Charges - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $10,269 | $6,378 | ||
Dawin Electronics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment of goodwill | 3,389 | 3,389 | ||
Dawin Electronics [Member] | Technology [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 1,864 | 1,864 | ||
Machinery and equipment [Member] | Dawin Electronics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 508 | 508 | ||
Fabrication facility [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 617 | |||
Restructuring charges | 1,829 | |||
Fabrication facility [Member] | Dawin Electronics [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 5,870 | |||
Six Inch Fabrication Facility Closure [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 10,269 | 10,269 | ||
Six Inch Fabrication Facility Closure [Member] | Machinery and equipment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 1,763 | 1,763 | ||
Six Inch Fabrication Facility Closure [Member] | Buildings [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | 8,239 | 8,239 | ||
Six Inch Fabrication Facility Closure [Member] | Other tangible assets [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Impairment charges | $267 | $267 |
Foreign_Currency_Gain_Loss_Net1
Foreign Currency Gain (Loss), Net - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | USD ($) | KRW | KRW | KRW |
Foreign Currency Transaction [Abstract] | ||||
Exchange rates using first base rate | 1,099.20 | 1,055.30 | 1,071.10 | |
Intercompany loan balance | $766 |
Income_Taxes_Components_of_Inc
Income Taxes - Components of Income Tax Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income (loss) before income taxes | |||
Domestic | ($22,146) | ($6,127) | ($2,634) |
Foreign | -93,563 | -54,106 | 125,519 |
Income (loss) before income taxes | -115,709 | -60,233 | 122,885 |
Current income taxes expense (benefit) | |||
Domestic | -3,300 | -2,258 | 6,170 |
Foreign | 3,312 | 4,875 | 4,533 |
Uncertain tax position liability | -56 | -80 | 189 |
Current income taxes expense | -44 | 2,537 | 10,892 |
Deferred income taxes expense | |||
Foreign | 1,567 | 1,433 | 1,955 |
Income tax expenses | 1,523 | 3,970 | 12,847 |
Effective tax rate | 10.50% | ||
Domestic [Member] | |||
Current income taxes expense (benefit) | |||
Uncertain tax position liability | 10 | -87 | 14 |
Foreign [Member] | |||
Current income taxes expense (benefit) | |||
Uncertain tax position liability | ($66) | $7 | $175 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Contingency [Line Items] | ||||
Effective tax rate | 10.50% | |||
Statutory income tax rate | 35.00% | |||
Net deferred tax assets | $577 | $2,244 | $4,374 | |
Deferred tax assets, valuation allowance amount | 194,739 | 178,729 | 162,968 | 200,056 |
Net operating loss carry-forwards | 315,344 | |||
Net operating loss utilized | 1,219 | 69,159 | 86,938 | |
Net operating loss expiration date | 2024 | |||
Unrecognized tax benefits | 3,491 | 3,706 | 3,820 | |
Income tax benefits by reversing liabilities | 110 | 106 | 5 | |
Income tax expenses for uncertain tax positions | 44 | 7 | 55 | |
Recognized interest and penalties as income tax expense | 10 | 20 | 139 | |
Total interest and penalties accrued | 480 | 530 | 544 | |
MagnaChip Semiconductor, Ltd. [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Statutory income tax rate | 24.20% | 24.20% | 24.20% | |
Korean Statutory Tax Rate [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carry-forwards | 9,561 | |||
Net operating loss carry-forwards, expiration period | 2015 to 2019 | |||
Dutch [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carry-forwards | 15,210 | |||
Net operating loss carry-forwards, expiration period | Indefinite period of time | |||
U.S [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carry-forwards | $390 |
Income_Taxes_Difference_Betwee
Income Taxes - Difference Between Provision for Domestic and Foreign Income Taxes and Amount Calculated by Statutory Tax Rate to Net Income Before Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Provision computed at statutory rate | ($40,498) | ($21,082) | $43,010 |
Change in statutory tax rate | 0 | 0 | 0 |
Difference in foreign tax rates | 10,130 | 5,375 | -12,544 |
Permanent differences | |||
Derivative assets adjustment | -1,526 | 1,469 | 3,364 |
TPECs, hybrid and other interest | -6,813 | -3,151 | -5,920 |
Permanent impairment | -935 | ||
Thin capitalization | 97 | ||
Deemed dividend | 7,609 | ||
Permanent foreign currency gain (loss) | -901 | 3,351 | -465 |
Customs penalty | 742 | ||
Non-deductible settlement | 6,318 | ||
Other permanent differences | -1,097 | -881 | 1,556 |
Withholding tax | 3,506 | 3,918 | 4,242 |
Foreign exchange rate adjustment | 4,687 | -7,455 | -4,127 |
Change in valuation allowance | 29,484 | 24,062 | -21,184 |
Tax Credit | -1,811 | -1,818 | -2,796 |
Uncertain tax positions liability | -56 | -80 | 189 |
Others | 100 | 262 | 9 |
Income tax expenses | $1,523 | $3,970 | $12,847 |
Income_Taxes_Summary_of_Compos
Income Taxes - Summary of Composition of Net Deferred Income Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Deferred tax assets | ||||
Accounts Receivables | $1,076 | $28,628 | $8,799 | |
Inventories | 11,015 | 5,866 | 3,501 | |
Accrued expenses | 9,030 | 8,758 | 2,812 | |
Product warranties | 719 | 292 | 306 | |
Other reserves | 457 | 684 | 1,072 | |
Royalty income | 147 | 1,364 | 3,118 | |
Property, plant and equipment | 15,914 | 13,667 | 12,945 | |
Intangible assets | 780 | 922 | ||
Accumulated severance benefits | 30,413 | 27,769 | 23,465 | |
Foreign currency translation loss | 17,496 | 12,220 | 13,533 | |
NOL carry-forwards | 80,979 | 53,714 | 72,533 | |
Tax credit | 25,161 | 26,041 | 26,786 | |
Other long-term payable | 1,034 | 608 | 168 | |
Others | 1,990 | 2,887 | 1,438 | |
Total deferred tax assets | 196,211 | 183,420 | 170,476 | |
Less: valuation allowance | -194,739 | -178,729 | -162,968 | -200,056 |
Deferred tax assets, net | 1,472 | 4,691 | 7,508 | |
Deferred tax liabilities | ||||
Derivative assets | 1,189 | 124 | ||
Intangible assets | 1,712 | |||
Foreign currency translation gain | 748 | 19 | 1,003 | |
Others | 147 | 1,239 | 295 | |
Total deferred tax liabilities | 895 | 2,447 | 3,134 | |
Net deferred tax assets | 577 | 2,244 | 4,374 | |
Reported as | ||||
Current deferred income tax assets | 237 | 1,348 | 1,788 | |
Non-current deferred income tax assets | 415 | 896 | 2,586 | |
Current deferred income tax liabilities | -72 | |||
Non-current deferred income tax liabilities | -3 | |||
Net deferred tax assets | $577 | $2,244 | $4,374 |
Income_Taxes_Changes_in_Valuat
Income Taxes - Changes in Valuation Allowance for Deferred Tax Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $178,729 | $162,968 | $200,056 |
Charged to expense (income) | 29,484 | 24,062 | -21,184 |
NOL and tax credit expiration | -7,605 | -10,150 | -25,305 |
Translation adjustment | -5,869 | 1,849 | 9,401 |
Ending balance | $194,739 | $178,729 | $162,968 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, balance at the beginning | $11,865 | $11,196 | $10,297 |
Additions based on tax positions related to the current year | 4,472 | 1,690 | 1,342 |
Additions for tax positions of prior years | 47 | 41 | |
Lapse of statute of limitations | -1,040 | -1,067 | -942 |
Translation adjustment | -375 | 46 | 458 |
Unrecognized tax benefits, balance at the ending | $14,969 | $11,865 | $11,196 |
Geographic_and_Segment_Informa2
Geographic and Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Customer | Customer | Customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of operating segments | 1 | ||
Number of business lines | 3 | ||
Customer Concentration Risk [Member] | Net Sales [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of customers | 2 | 1 | 1 |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 61.00% | 59.00% | 61.00% |
Number of customers | 10 | 10 | 10 |
Customer Concentration Risk [Member] | Net Sales [Member] | Customer One [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 11.40% | 11.30% | |
Customer Concentration Risk [Member] | Net Sales [Member] | Customer Two [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 10.70% | 11.50% | |
Geographic Concentration Risk [Member] | Property, Plant and Equipment [Member] | Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration risk, percentage | 96.00% |
Geographic_and_Segment_Informa3
Geographic and Segment Information - Net Sales by Business Line (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Sales | |||||||||||
Total net sales | $167,652 | $194,332 | $172,070 | $164,164 | $175,510 | $170,812 | $193,533 | $194,322 | $698,218 | $734,177 | $807,336 |
Display Solutions [Member] | |||||||||||
Net Sales | |||||||||||
Total net sales | 199,861 | 202,951 | 285,939 | ||||||||
Semiconductor Manufacturing Services [Member] | |||||||||||
Net Sales | |||||||||||
Total net sales | 360,549 | 395,365 | 395,858 | ||||||||
Power Solutions [Member] | |||||||||||
Net Sales | |||||||||||
Total net sales | 137,246 | 135,329 | 124,960 | ||||||||
All Other [Member] | |||||||||||
Net Sales | |||||||||||
Total net sales | $562 | $532 | $579 |
Geographic_and_Segment_Informa4
Geographic and Segment Information - Net Sales by Region, Based on Location of Customer (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $167,652 | $194,332 | $172,070 | $164,164 | $175,510 | $170,812 | $193,533 | $194,322 | $698,218 | $734,177 | $807,336 |
Korea [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 260,139 | 313,634 | 365,682 | ||||||||
Asia Pacific (other than Korea) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 324,248 | 284,429 | 271,908 | ||||||||
U.S.A. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 91,308 | 100,790 | 124,481 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 21,159 | 32,136 | 39,304 | ||||||||
Others [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $1,364 | $3,188 | $5,961 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies Disclosure [Abstract] | |||
Initial term of leases | 20 years | ||
Renewal terms of leases | 10 years | ||
Notice period upon cancellation of leases | 90 days | ||
Rental expenses | $9,421 | $8,829 | $8,879 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Schedule of Minimum Aggregate Rental Payments Due Under Non-Cancelable Lease Contracts (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $5,876 |
2016 | 4,491 |
2017 | 2,168 |
2018 | 2,149 |
2019 | 2,025 |
2020 and thereafter | 29,913 |
Minimum aggregate rental payments due under non-cancelable lease contracts | $46,622 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (Avenue [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Avenue [Member] | |||
Related Party Transaction [Line Items] | |||
Common stock outstanding affiliated percentage | 12.00% | ||
Fees and expenses paid in connection with the registration and sale of shares of company's common stock | $0.80 | $1.20 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Loss (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Equity [Abstract] | ||||
Foreign currency translation adjustments | ($35,551) | ($57,326) | ||
Derivative adjustments | 485 | 6,587 | ||
Unrealized gain on investments | 681 | |||
Total | ($35,066) | ($50,058) | ($41,450) | ($13,543) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | ($50,058) | ($41,450) | ($13,543) |
Other comprehensive income (loss) before reclassifications | 22,907 | -5,624 | -32,515 |
Amounts reclassified from accumulated other comprehensive loss (income) | -7,915 | -2,984 | 4,608 |
Net current-period other comprehensive income (loss) | 14,992 | -8,608 | -27,907 |
Ending balance | -35,066 | -50,058 | -41,450 |
Foreign currency translation adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | -57,326 | -43,599 | -5,862 |
Other comprehensive income (loss) before reclassifications | 21,775 | -13,727 | -37,737 |
Net current-period other comprehensive income (loss) | 21,775 | -13,727 | -37,737 |
Ending balance | -35,551 | -57,326 | -43,599 |
Derivative adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 6,587 | 2,074 | -7,771 |
Other comprehensive income (loss) before reclassifications | -69 | 7,497 | 5,237 |
Amounts reclassified from accumulated other comprehensive loss (income) | -6,033 | -2,984 | 4,608 |
Net current-period other comprehensive income (loss) | -6,102 | 4,513 | 9,845 |
Ending balance | 485 | 6,587 | 2,074 |
Unrealized gain on investments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 681 | 75 | 90 |
Other comprehensive income (loss) before reclassifications | 1,201 | 606 | -15 |
Amounts reclassified from accumulated other comprehensive loss (income) | -1,882 | ||
Net current-period other comprehensive income (loss) | -681 | 606 | -15 |
Ending balance | $681 | $75 |
Earnings_Loss_per_Share_Table_
Earnings (Loss) per Share - Table Illustrating Computation of Basic and Diluted Earnings (Loss) Per Common Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | ($63,830) | ($46,807) | $15,010 | ($21,605) | ($22,197) | $251 | ($24,668) | ($17,589) | ($117,232) | ($64,203) | $110,038 |
Weighted average common stock outstanding | |||||||||||
Basic | 34,056,413 | 34,056,359 | 34,056,359 | 34,052,875 | 34,480,849 | 35,443,820 | 35,474,001 | 35,539,413 | 34,055,513 | 35,232,194 | 36,567,684 |
Diluted | 34,056,413 | 34,056,359 | 35,177,915 | 34,052,875 | 34,480,849 | 37,484,601 | 35,474,001 | 35,539,413 | 34,055,513 | 35,232,194 | 37,533,391 |
Earnings (loss) per share | |||||||||||
Basic | ($1.87) | ($1.37) | $0.44 | ($0.63) | ($0.64) | $0.01 | ($0.70) | ($0.49) | ($3.44) | ($1.82) | $3.01 |
Diluted | ($1.87) | ($1.37) | $0.43 | ($0.63) | ($0.64) | $0.01 | ($0.70) | ($0.49) | ($3.44) | ($1.82) | $2.93 |
Earnings_Loss_per_Share_Table_1
Earnings (Loss) per Share - Table Showing Outstanding Options and Warrants Excluded from Computation of Diluted Earnings (Loss) Per Share (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding units and warrants excluded from computation of diluted earnings (loss) per share/unit | 3,215,945 | 2,944,645 | 255,023 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Outstanding units and warrants excluded from computation of diluted earnings (loss) per share/unit | 1,426,330 | 1,874,977 |
Quarterly_Financial_Results_Sc
Quarterly Financial Results - Schedule of Selected Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $167,652 | $194,332 | $172,070 | $164,164 | $175,510 | $170,812 | $193,533 | $194,322 | $698,218 | $734,177 | $807,336 |
Gross profit | 34,498 | 42,630 | 35,457 | 40,277 | 17,179 | 34,413 | 45,241 | 58,235 | 152,862 | 155,068 | 243,247 |
Operating income (loss) | -30,409 | -19,482 | -19,348 | -7,887 | -33,179 | -10,220 | 2,665 | 13,966 | -77,126 | -26,768 | 84,315 |
Net income (loss) | ($63,830) | ($46,807) | $15,010 | ($21,605) | ($22,197) | $251 | ($24,668) | ($17,589) | ($117,232) | ($64,203) | $110,038 |
Earnings (loss) per share: | |||||||||||
Basic | ($1.87) | ($1.37) | $0.44 | ($0.63) | ($0.64) | $0.01 | ($0.70) | ($0.49) | ($3.44) | ($1.82) | $3.01 |
Diluted | ($1.87) | ($1.37) | $0.43 | ($0.63) | ($0.64) | $0.01 | ($0.70) | ($0.49) | ($3.44) | ($1.82) | $2.93 |
Weighted average common stock outstanding: | |||||||||||
Basic | 34,056,413 | 34,056,359 | 34,056,359 | 34,052,875 | 34,480,849 | 35,443,820 | 35,474,001 | 35,539,413 | 34,055,513 | 35,232,194 | 36,567,684 |
Diluted | 34,056,413 | 34,056,359 | 35,177,915 | 34,052,875 | 34,480,849 | 37,484,601 | 35,474,001 | 35,539,413 | 34,055,513 | 35,232,194 | 37,533,391 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | 28-May-15 | Mar. 05, 2015 | 28-May-15 | 26-May-15 | Dec. 31, 2013 | |
Segments | Segments | |||||
Subsequent Event [Line Items] | ||||||
Common stock, par value | $0.01 | $0.01 | ||||
Number of operating segments | 1 | |||||
6.625% senior notes due 2021 [Member] | Senior notes [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, covenant terms | The Company did not cure the Initial Reporting Defaults within the applicable 60-day grace period and the Initial Reporting Defaults ripened into Events of Default. | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Common stock, par value | $0.01 | |||||
Common stock dividend description | A dividend of one preferred stock purchase right (a " Right " and collectively, the " Rights ") for each share of the Company's common stock | |||||
Number of operating segments | 2 | |||||
Subsequent Event [Member] | Zero cost collars [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Derivative counterparty | Nomura Financial Investment (Korea) Co., Ltd. | |||||
Derivative notional amount | 84,000,000 | $84,000,000 | ||||
Deposit paid to counterparty | 5,000,000 | $5,000,000 | ||||
Subsequent Event [Member] | 6.625% senior notes due 2021 [Member] | Senior notes [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Debt instrument, covenant terms | The Company believes it has cured the default referenced in the 10-K Notice of Default within the applicable 60-day grace period under the Indenture by the filing of this Report with the SEC. | |||||
Subsequent Event [Member] | Series A Junior Participating Preferred Stock [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Preferred stock, par value | $0.01 | |||||
Purchase price of preferred Stock | $24 | |||||
Number of shares entitle to purchase on each right, once exercisable description | Each Right, once exercisable, will entitle the registered holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock |