Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | MX | |
Entity Registrant Name | MAGNACHIP SEMICONDUCTOR Corp | |
Entity Central Index Key | 1,325,702 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 34,138,289 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 128,425 | $ 83,355 |
Restricted cash (Note 12) | 18,251 | |
Accounts receivable, net | 86,046 | 61,775 |
Inventories, net | 57,162 | 57,048 |
Other receivables | 2,944 | 5,864 |
Prepaid expenses | 12,654 | 8,137 |
Hedge collateral | 9,520 | 3,150 |
Other current assets | 3,641 | 5,113 |
Total current assets | 300,392 | 242,693 |
Property, plant and equipment, net | 186,390 | 179,793 |
Intangible assets, net | 3,748 | 3,085 |
Long-term prepaid expenses | 13,074 | 9,556 |
Deferred income tax assets | 274 | 193 |
Other non-current assets | 4,805 | 6,632 |
Total assets | 508,683 | 441,952 |
Current liabilities | ||
Accounts payable | 54,304 | 51,509 |
Other accounts payable | 12,319 | 12,272 |
Accrued expenses | 45,324 | 60,365 |
Deferred revenue | 9,465 | 11,092 |
Deposits received (Note 12) | 264 | 16,549 |
Other current liabilities | 2,321 | 1,654 |
Total current liabilities | 123,997 | 153,441 |
Long-term borrowings, net | 302,894 | 221,082 |
Accrued severance benefits, net | 132,288 | 129,225 |
Other non-current liabilities | 10,632 | 10,318 |
Total liabilities | 569,811 | 514,066 |
Commitments and Contingencies (Note 18) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 42,512,498 shares issued and 34,138,289 outstanding at September 30, 2017 and 41,627,103 shares issued and 35,048,338 outstanding at December 31, 2016 | 425 | 416 |
Additional paid-in capital | 135,185 | 130,189 |
Accumulated deficit | (84,542) | (125,825) |
Treasury stock, 8,374,209 shares at September 30, 2017 and 6,578,765 shares at December 31, 2016 | (102,319) | (90,918) |
Accumulated other comprehensive income (loss) | (9,877) | 14,024 |
Total stockholders' deficit | (61,128) | (72,114) |
Total liabilities and stockholders' equity | $ 508,683 | $ 441,952 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
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 | 42,512,498 | 41,627,103 |
Common stock, shares outstanding | 34,138,289 | 35,048,338 |
Treasury stock, shares | 8,374,209 | 6,578,765 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 176,697 | $ 192,296 | $ 505,092 | $ 507,507 |
Cost of sales | 126,387 | 153,157 | 366,550 | 397,370 |
Gross profit | 50,310 | 39,139 | 138,542 | 110,137 |
Operating expenses | ||||
Selling, general and administrative expenses | 17,266 | 20,082 | 58,144 | 60,437 |
Research and development expenses | 17,554 | 18,439 | 52,440 | 54,432 |
Restructuring and other charges (gain), net | (17,010) | (6,480) | ||
Early termination charges | 13,369 | 4,240 | ||
Total operating expenses | 34,820 | 38,521 | 106,943 | 112,629 |
Operating income (loss) | 15,490 | 618 | 31,599 | (2,492) |
Interest expenses | (5,485) | (4,055) | (16,099) | (12,185) |
Foreign currency gain (loss), net | (3,662) | 33,174 | 26,219 | 34,268 |
Other income, net | 198 | 887 | 1,892 | 2,429 |
Income before income taxes | 6,541 | 30,624 | 43,611 | 22,020 |
Income tax expenses | 937 | 758 | 2,328 | 1,845 |
Net income | $ 5,604 | $ 29,866 | $ 41,283 | $ 20,175 |
Income per common share- | ||||
Basic | $ 0.16 | $ 0.86 | $ 1.22 | $ 0.58 |
Diluted | $ 0.15 | $ 0.85 | $ 1.02 | $ 0.58 |
Weighted average number of shares- | ||||
Basic | 34,103,029 | 34,849,805 | 33,907,581 | 34,755,276 |
Diluted | 45,542,418 | 35,302,706 | 44,438,871 | 35,077,315 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,604 | $ 29,866 | $ 41,283 | $ 20,175 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 2,692 | (27,340) | (23,270) | (27,193) |
Derivative adjustments | ||||
Fair valuation of derivatives | (193) | (83) | 716 | (42) |
Reclassification adjustment for gain on derivatives included in net income | (42) | (1,347) | ||
Total other comprehensive income (loss) | 2,457 | (27,423) | (23,901) | (27,235) |
Total comprehensive income (loss) | $ 8,061 | $ 2,443 | $ 17,382 | $ (7,060) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Outstanding [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning at Dec. 31, 2015 | $ (62,330) | $ 411 | $ 124,618 | $ (96,210) | $ (90,918) | $ (231) | |
Balance, Shares beginning at Dec. 31, 2015 | 34,568,942 | ||||||
Stock-based compensation | 2,966 | 2,966 | |||||
Exercise of stock options | 1,503 | 3 | 1,500 | ||||
Exercise of stock options, Shares | 255,500 | ||||||
Settlement of restricted stock units | 1 | (1) | |||||
Settlement of restricted stock units, Shares | 162,812 | ||||||
Other comprehensive income (loss), net | (27,235) | (27,235) | |||||
Net income | 20,175 | 20,175 | |||||
Balance, ending at Sep. 30, 2016 | (64,921) | 415 | 129,083 | (76,035) | (90,918) | (27,466) | |
Balance, Shares ending at Sep. 30, 2016 | 34,987,254 | ||||||
Balance, beginning at Jun. 30, 2016 | (43) | ||||||
Other comprehensive income (loss), net | (27,423) | (27,423) | |||||
Net income | 29,866 | ||||||
Balance, ending at Sep. 30, 2016 | (64,921) | 415 | 129,083 | (76,035) | (90,918) | (27,466) | |
Balance, Shares ending at Sep. 30, 2016 | 34,987,254 | ||||||
Balance, beginning at Dec. 31, 2016 | $ (72,114) | 416 | 130,189 | (125,825) | (90,918) | 14,024 | |
Balance, Shares beginning at Dec. 31, 2016 | 35,048,338 | 35,048,338 | |||||
Stock-based compensation | $ 1,614 | 1,614 | |||||
Exercise of stock options | 3,391 | 5 | 3,386 | ||||
Exercise of stock options, Shares | 487,873 | ||||||
Settlement of restricted stock units | 4 | (4) | |||||
Settlement of restricted stock units, Shares | 397,522 | ||||||
Acquisition of treasury stock | $ (11,401) | (11,401) | |||||
Acquisition of treasury stock, Shares | (1,795,444) | (1,795,444) | |||||
Other comprehensive income (loss), net | $ (23,901) | (23,901) | |||||
Net income | 41,283 | 41,283 | |||||
Balance, ending at Sep. 30, 2017 | $ (61,128) | 425 | 135,185 | (84,542) | (102,319) | (9,877) | |
Balance, Shares ending at Sep. 30, 2017 | 34,138,289 | 34,138,289 | |||||
Balance, beginning at Jun. 30, 2017 | (12,334) | ||||||
Other comprehensive income (loss), net | $ 2,457 | 2,457 | |||||
Net income | 5,604 | ||||||
Balance, ending at Sep. 30, 2017 | $ (61,128) | $ 425 | $ 135,185 | $ (84,542) | $ (102,319) | $ (9,877) | |
Balance, Shares ending at Sep. 30, 2017 | 34,138,289 | 34,138,289 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 41,283 | $ 20,175 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Depreciation and amortization | 20,689 | 18,791 |
Provision for severance benefits | 15,354 | 13,609 |
Amortization of debt issuance costs and original issue discount | 1,464 | 527 |
Gain on foreign currency, net | (30,615) | (38,182) |
Restructuring gain and other | (17,010) | (7,785) |
Stock-based compensation | 1,614 | 2,966 |
Other | 459 | 421 |
Changes in operating assets and liabilities | ||
Accounts receivable, net | (20,241) | 977 |
Inventories, net | 3,281 | (9,412) |
Other receivables | 5,304 | 20,214 |
Other current assets | 2,897 | 510 |
Accounts payable | 178 | 7,088 |
Other accounts payable | (8,378) | (4,764) |
Accrued expenses | (16,459) | (22,087) |
Other current liabilities | (822) | (3,869) |
Deferred revenue | (2,243) | 2,662 |
Other non-current liabilities | 283 | (1,412) |
Payment of severance benefits | (19,578) | (14,178) |
Other | 35 | (182) |
Net cash used in operating activities | (22,505) | (13,931) |
Cash flows from investing activities | ||
Proceeds from disposal of plant, property and equipment | 18,753 | 185 |
Purchase of plant, property and equipment | (19,269) | (11,345) |
Payment for intellectual property registration | (977) | (754) |
Collection of guarantee deposits | 1,426 | 476 |
Proceeds from settlement of hedge collateral | 8,556 | 6,317 |
Payment of hedge collateral | (14,839) | (2,494) |
Payment of guarantee deposits | (41) | (185) |
Other | 24 | 9 |
Net cash used in investing activities | (6,367) | (7,791) |
Cash flows from financing activities | ||
Proceeds from issuance of senior notes | 86,250 | |
Payment of debt issuance costs | (5,902) | |
Proceeds from exercise of stock options | 3,391 | 1,502 |
Acquisition of treasury stock | (11,401) | |
Net cash provided by financing activities | 72,338 | 1,502 |
Effect of exchange rates on cash and cash equivalents | 1,604 | 4,766 |
Net increase (decrease) in cash and cash equivalents | 45,070 | (15,454) |
Cash and cash equivalents | ||
Beginning of the period | 83,355 | 90,882 |
End of the period | 128,425 | 75,428 |
Supplemental cash flow information | ||
Cash paid for interest | 17,590 | 14,906 |
Cash paid for income taxes | 830 | 635 |
Non-cash operating activities | ||
Insurance proceeds in restricted cash reclassified from other receivables | (29,571) | |
Non-cash investing activities | ||
Property, plant and equipment additions in other accounts payable | $ 2,092 | $ 1,738 |
Business, Basis of Presentation
Business, Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Significant Accounting Policies | 1. Business, Basis of Presentation and Significant Accounting Policies Business MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, industrial and automotive applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). These interim consolidated financial statements include normal recurring adjustments and the elimination of all intercompany accounts and transactions which are, in the opinion of management, necessary to provide a fair statement of the Company’s financial condition and results of operations for the periods presented. These interim consolidated financial statements are presented in accordance with Accounting Standards Codification 270, “Interim Reporting” The December 31, 2016 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by US GAAP. Reclassifications Certain charges related to the closure of the Company’s 6-inch Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2017-12, 2017-12”). 2017-12 2017-12 2017-12 In July 2017, the FASB issued Accounting Standards Update No. 2017-11, 2017-11”), 2017-11 2017-11 In May 2017, the FASB issued Accounting Standards Update No. 2017-09, 2017-09”). 2017-09 2017-09 2017-09 In August 2016, the FASB issued Accounting Standards Update No. 2016-15, 2016-15”). 2016-15 2016-18, 2016-18”). 2016-18 2016-15 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, 2016-02”) 2016-02 right-of-use 2016-02 In May 2014, the FASB issued Accounting Standards Update No. 2014-09, 2014-09”). 2014-09 2014-09 2015-14 2014-09 2016-08, 2016-10, 2016-12, 2016-20, 2016-08, 2016-10, 2016-12 2016-20 2014-09 The Company started analyzing the potential impact of applying the new guidance by reviewing its current accounting policies, customer arrangements and practices. The Company has assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. The Company’s in-progress analysis includes an evaluation of the terms of foundry services contracts and other arrangements that could potentially change the point in time revenue recognition to over time in proportion of wafer-manufacturing, which could have a material impact to the Company’s consolidated financial statements. The Company has not yet completed its assessment. As the Company continues its assessment, it is also identifying and preparing to implement appropriate changes to accounting policies, business processes and internal controls to support the new revenue standard and related disclosure requirements. The Company will adopt the new revenue standard on a modified retrospective basis on January 1, 2018. Recently Adopted Accounting Pronouncements In July 2015, the FASB issued Accounting Standards Update No. 2015-11, 2015-11”). 2015-11, 2015-11 2015-11 In November 2015, the FASB issued Accounting Standards Update No. 2015-17, (“ASU 2015-17”). 2015-17 2015-17 In March 2016, the FASB issued Accounting Standards Update No. 2016-09, 2016-09”). 2016-09 2016-09 2016-09 |
Sales of Accounts Receivable an
Sales of Accounts Receivable and Receivable Discount Program | 9 Months Ended |
Sep. 30, 2017 | |
Receivables [Abstract] | |
Sales of Accounts Receivable and Receivable Discount Program | 2. Sales of Accounts Receivable and Receivable Discount Program 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 interest 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 $16,180 thousand and $17,984 thousand for the nine months ended September 30, 2017 and 2016, respectively, and these sales resulted in pre-tax The Company uses receivable discount programs with certain customers. These discount arrangements allow the Company to accelerate collection of customers’ receivables. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories as of September 30, 2017 and December 31, 2016 consist of the following (in thousands): September 30, 2017 December 31, 2016 Finished goods $ 11,386 $ 7,867 Semi-finished goods and work-in-process 39,898 46,653 Raw materials 10,795 7,846 Materials in-transit 1,172 1,859 Less: inventory reserve (6,089 ) (7,177 ) Inventories, net $ 57,162 $ 57,048 Changes in inventory reserve for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands): Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Beginning balance $ (5,297 ) $ (7,177 ) $ (14,997 ) $ (16,033 ) Change in reserve Inventory reserve charged to costs of sales (2,084 ) (3,479 ) (3,459 ) (5,020 ) Sale of previously reserved inventory 816 3,380 5,025 5,339 (1,268 ) (99 ) 1,566 319 Write off 433 1,584 5,710 7,850 Translation adjustments 43 (397 ) (769 ) (626 ) Ending balance $ (6,089 ) $ (6,089 ) $ (8,490 ) $ (8,490 ) 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. Interim inventory reserves attributable to lower of cost or market caused by changes in market conditions may be reduced in subsequent interim periods within the same fiscal year to reflect recovery in market value. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 4. Property, Plant and Equipment Property, plant and equipment as of September 30, 2017 and December 31, 2016 are comprised of the following (in thousands): September 30, 2017 December 31, 2016 Buildings and related structures $ 65,385 $ 64,939 Machinery and equipment 279,614 255,618 Others 35,597 29,492 380,596 350,049 Less: accumulated depreciation (209,240 ) (184,521 ) Land 15,034 14,265 Property, plant and equipment, net $ 186,390 $ 179,793 Aggregate depreciation expenses totaled $20,224 thousand and $18,448 thousand for the nine months ended September 30, 2017 and 2016, respectively. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 5. Intangible Assets Intangible assets as of September 30, 2017 and December 31, 2016 are comprised of the following (in thousands): September 30, 2017 Gross amount Accumulated amortization Net amount Technology $ 18,868 $ (18,868 ) $ — Customer relationships 27,098 (27,098 ) — Intellectual property assets 10,401 (6,653 ) 3,748 Intangible assets, net $ 56,367 $ (52,619 ) $ 3,748 December 31, 2016 Gross amount Accumulated amortization Net amount Technology $ 17,903 $ (17,903 ) $ — Customer relationships 25,712 (25,712 ) — Intellectual property assets 9,026 (5,941 ) 3,085 Intangible assets, net $ 52,641 $ (49,556 ) $ 3,085 Aggregate amortization expenses for intangible assets totaled $465 thousand and $343 thousand for the nine months ended September 30, 2017 and 2016, respectively. |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 6. Accrued Expenses Accrued expenses as of September 30, 2017 and December 31, 2016 are comprised of the following (in thousands): September 30, 2017 December 31, 2016 Payroll, benefits and related taxes, excluding severance benefits $ 17,436 $ 24,982 Withholding tax attributable to intercompany interest income 17,402 15,573 Interest on senior notes 3,463 6,831 Outside service fees 2,293 4,423 Others 4,730 8,556 Accrued expenses $ 45,324 $ 60,365 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 7. Derivative Financial Instruments The Company’s Korean subsidiary from time to time has entered into zero cost collar and forward 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. Details of derivative contracts as of September 30, 2017 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement June 22, 2017 Zero cost collar $ 65,000 October 2017 to February 2018 June 22, 2017 Forward $ 15,000 October to December 2017 September 28, 2017 Zero cost collar $ 54,000 January 2018 to June 2018 September 28, 2017 Forward $ 36,000 January 2018 to June 2018 Details of derivative contracts as of December 31, 2016 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement November 11, 2016 Zero cost collar $ 18,000 March to August 2017 The zero cost collar and forward contracts qualify as cash flow hedges under Accounting Standards Codification 815, “Derivatives and Hedging,” 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 zero cost collar and forward contracts recorded as assets and liabilities as of September 30, 2017 and December 31, 2016 are as follows (in thousands): Derivatives designated as hedging instruments: September 30, 2017 December 31, 2016 Liabilities Derivatives: Zero cost collars Other current liabilities $ 1,257 $ 453 Liabilities Derivatives: Forwards Other current liabilities $ 267 $ — Offsetting of derivative assets and liabilities as of September 30, 2017 is as follows (in thousands): As of September 30, 2017 Gross amounts of recognized assets/liabilities Gross amounts offset in the balance sheets Net amounts of assets/liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liabilities Derivatives: Zero cost collars $ 1,257 $ — $ 1,257 $ — $ (700 ) $ 557 Liabilities Derivatives: Forwards $ 267 $ — $ 267 $ — $ (120 ) $ 147 Offsetting of derivative liabilities as of December 31, 2016 is as follows (in thousands): As of December 31, 2016 Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liabilities Derivatives: Zero cost collars $ 453 $ — $ 453 $ — $ (650 ) $ (197 ) 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 three months ended September 30, 2017 and 2016 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Loss Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Loss Recognized in Statement of Operations on Derivatives (Ineffective Portion) Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2017 2016 2017 2016 2017 2016 Zero cost collars $ (217 ) $ (83 ) Net sales $ — $ — Other income, net $ (142 ) $ (32 ) Forwards $ 24 $ — Net sales $ 42 $ — Other income, net $ (228 ) $ — Total $ (193 ) $ (83 ) $ 42 $ — $ (370 ) $ (32 ) The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the nine months ended September 30, 2017 and 2016 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain Recognized in AOCI on Derivatives (Effective Portion) Location of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Gain (Loss) Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 2017 2016 Zero cost collars $ 666 $ (42 ) Net sales $ 1,305 $ — Other income, net $ 127 $ 1 Forwards $ 50 $ — Net sales $ 42 $ — Other income, net $ (327 ) $ — Total $ 716 $ (42 ) $ 1,347 $ — $ (200 ) $ 1 As of September 30, 2017, the amount expected to be reclassified from accumulated other comprehensive income (loss) into loss within the next twelve months is $1,067 thousand. The Company set aside $8,700 thousand and $2,500 thousand cash deposits to the counterparty, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) for the zero cost collar and forward contracts outstanding as of September 30, 2017 and for the zero cost collar contracts outstanding as of December 31, 2016, respectively. These cash deposits are recorded as hedge collateral on the consolidated balance sheets. The Company is required to deposit additional cash collateral with NFIK for any exposure in excess of $500 thousand, and $820 thousand and $650 thousand of additional cash collateral were required and recorded as hedge collateral on the consolidated balance sheets as of September 30, 2017 and December 31, 2016, respectively. These outstanding zero cost collar contracts and forward contracts are subject to termination if the sum of qualified and unrestricted cash and cash equivalents held by the Company is less than $30,000 thousand on the last day of a fiscal quarter. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 8. Fair Value Measurements Fair Value of Financial Instruments As of September 30, 2017, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Measurement Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilities (other current liabilities) $ 1,524 $ 1,524 — $ 1,524 — As of December 31, 2016, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Measurement Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilities (other current liabilities) $ 453 $ 453 — $ 453 — Items not reflected in the table above include cash and cash equivalents, 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. Fair Value of Long-term Borrowings September 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands of US dollars) Long-term Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 81,247 $ 130,123 $ — $ — 6.625% Senior Notes due July 2021 (Level 2) $ 221,647 $ 219,656 $ 221,082 $ 193,500 On January 17, 2017, the Company’s wholly-owned subsidiary, MagnaChip Semiconductor S.A., closed an offering (the “Exchangeable Notes Offering”) of 5.0% Exchangeable Senior Notes due March 1, 2021 (the “Exchangeable Notes”) of $86,250 thousand, which represents the principal amount, excluding $5,902 thousand of debt issuance costs. The Company estimates the fair value of the Exchangeable Notes using the market approach, which utilizes quoted market prices that fall under Level 2. For further description of the Exchangeable Notes, see Note 9, “Long-term Borrowings”. On July 18, 2013, the Company issued 6.625% senior notes due July 15, 2021 (the “2021 Notes”) of $225,000 thousand, which represents the principal amount, excluding $1,125 thousand of original issue discount and $5,120 thousand of debt issuance costs. The Company estimates the fair value of the 2021 Notes using the market approach, which utilizes quoted market prices that fall under Level 2. For further description of the 2021 Notes, see Note 9, “Long-term Borrowings”. Fair Values Measured on a Non-recurring The Company’s non-financial non-recurring |
Long-Term Borrowings
Long-Term Borrowings | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Borrowings | 9. Long-Term Borrowings Long-term borrowings as of September 30, 2017 and December 31, 2016 are as follows (in thousands): September 30, 2017 December 31, 2016 5.0% Exchangeable Senior Notes due March 2021 $ 86,250 $ — 6.625% Senior Notes due July 2021 $ 225,000 $ 225,000 Less: unamortized discount and debt issuance costs (8,356 ) (3,918 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 302,894 $ 221,082 5.0% Exchangeable Senior Notes On January 17, 2017, MagnaChip Semiconductor S.A. closed the Exchangeable Notes Offering of $86,250 thousand aggregate principal amount of 5.0% Exchangeable Notes. Interest on the Exchangeable Notes accrues at a rate of 5.0% per annum, payable semi-annually on March 1 and September 1 of each year, beginning on March 1, 2017. The Exchangeable Notes will mature on March 1, 2021, unless earlier repurchased or converted. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding the stated maturity date. The Company used a portion of the net proceeds from the issuance to repurchase 1,795,444 shares of common stock under its stock repurchase program at an aggregate cost of $11,401 thousand. Upon conversion, the Company will deliver for each $1,000 principal amount of converted notes a number of shares equally to the exchange rate, which will initially be 121.1387 shares of common stock per $1,000 principal amount of Exchangeable Notes, equivalent to an initial exchange price of approximately $8.26 per share of common stock. The exchange rate will be subject to adjustment in some circumstances, but will not be adjusted for any accrued and unpaid interest. In addition, if a “make-whole fundamental change” (as defined in the Exchangeable Notes indenture (the “Exchangeable Notes Indenture”)) occurs prior to the stated maturity date, the Company will increase the exchange rate for a holder who elects to convert its notes in connection with such make-whole fundamental change in certain circumstances. MagnaChip Semiconductor S.A. may also, under certain circumstances, be required to pay additional amounts to holders of Exchangeable Notes if withholding or deduction is required in a relevant tax jurisdiction. If the Company undergoes a fundamental change, subject to certain conditions, holders may require the Company to repurchase for cash all or part of their notes at a purchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change purchase date. In addition, upon certain events of default described in the Exchangeable Notes Indenture, the trustee or holders of at least 25% principal amount of the Exchangeable Notes may declare 100% of the then outstanding Exchangeable Notes due and payable in full, together with all accrued and unpaid interest thereon. Payment of principal on the Exchangeable Notes may also accelerate and become automatically due and payable upon certain events of default involving bankruptcy or insolvency proceedings involving the Company, MagnaChip Semiconductor S.A. and their significant subsidiaries. The Exchangeable Notes are not redeemable at the option of MagnaChip Semiconductor S.A. prior to the maturity date. The Exchangeable Notes Indenture contains covenants that limit the ability of the Company, MagnaChip Semiconductor S.A. and the Company’s other 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; and (ix) designate unrestricted subsidiaries. These covenants are subject to a number of exceptions and qualifications. Certain of these restrictive covenants will terminate if the Exchangeable Notes are rated investment grade at any time. The Company incurred debt issuance costs of $5,902 thousand related to the issuance of the Exchangeable Notes. The debt issuance costs are recorded as a direct deduction from the long-term borrowings in the consolidated balance sheets and amortized to interest expense using the effective interest method over the term of the Exchangeable Notes. Interest expense related to the Exchangeable Notes for the nine months ended September 30, 2017 was $3,942 thousand. 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. The Company can optionally redeem all or a part of the 2021 Notes according to the following schedule: 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, 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 the 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 2021 Notes are rated investment grade at any time. The Company incurred original issue discount of $1,125 thousand and debt issuance costs of $5,120 thousand related to the issuance of the 2021 Notes. The original issue discount and the debt issuance costs are recorded as a direct deduction from the long-term borrowings in the consolidated balance sheets and amortized to interest expense using the effective interest method over the term of the 2021 Notes. Interest expenses related to the 2021 Notes for the nine months ended September 30, 2017 and 2016 were $11,744 thousand and $11,706 thousand, respectively. |
Accrued Severance Benefits
Accrued Severance Benefits | 9 Months Ended |
Sep. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Accrued Severance Benefits | 10. Accrued Severance Benefits The majority of accrued severance benefits are for employees in the Company’s Korean subsidiary. 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 September 30, 2017, 98% of employees of the Company were eligible for severance benefits. Changes in accrued severance benefits are as follows (in thousands): Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Beginning balance $ 130,894 $ 130,144 $ 132,800 $ 135,160 Provisions 4,578 15,354 3,782 13,609 Severance payments (1,496 ) (19,578 ) (1,076 ) (14,178 ) Translation adjustments (852 ) 7,204 8,350 9,265 133,124 133,124 143,856 143,856 Less: Cumulative contributions to the National Pension Fund (243 ) (243 ) (305 ) (305 ) Group severance insurance plan (593 ) (593 ) (705 ) (705 ) Accrued severance benefits, net $ 132,288 $ 132,288 $ 142,846 $ 142,846 The severance benefits funded through the Company’s National Pension Fund and group severance insurance plan 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 non-executive Severance benefit Remainder of 2017 $ — 2018 — 2019 537 2020 1,004 2021 1,439 2022 1,407 2023 – 2027 19,016 The above amounts were determined based on the non-executive non-executive Korea’s mandatory retirement age is 60 under the Employment Promotion for the Aged Act. |
Foreign Currency Gain, Net
Foreign Currency Gain, Net | 9 Months Ended |
Sep. 30, 2017 | |
Foreign Currency [Abstract] | |
Foreign Currency Gain, Net | 11. Foreign Currency Gain, Net Net foreign currency gain or loss includes non-cash non-cash |
Restructuring and Other Charges
Restructuring and Other Charges (Gain), Net | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges (Gain), Net | 12. Restructuring and Other Charges (Gain), Net As of December 21, 2016, the Company entered into a purchase and sale agreement to sell a building located in Cheongju, South Korea. The building has historically been used to house the Company’s six-inch “6-inch In March 2017, the Company sold its sensor product business, which was included in and reported as part of Display Solutions line of its Standard Products Group, to a third party for proceeds of $1,295 thousand, in an effort to improve our overall profitability. The Company recorded $375 thousand net gain from this sale after deducting the book values of certain assets transferred to the buyer. During the first quarter of 2016, the Company completed all procedures necessary to sell all machinery in its closed 6-inch |
Early Termination Charges
Early Termination Charges | 9 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Early Termination Charges | 13. Early Termination Charges As of February 22, 2017, the Company’s Board of Directors approved the implementation of a new headcount reduction plan (the “Headcount Reduction Plan”). As of June 30, 2017, 352 employees elected to resign from the Company during the period in which the Headcount Reduction Plan was offered. The total cash cost of approximately $31 million has been fully paid. The Company recorded in its consolidated statement of operations $11.1 million and $2.3 million in termination related charges as early termination charges for the three months ended March 31, 2017 and June 30, 2017, respectively. The remaining total estimated cost relates to statutory severance benefits, which are required by law and have already been fully accrued in the Company’s financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes The Company files income tax returns in the U.S., Korea, Japan, Taiwan and various other jurisdictions. The Company is subject to income- or non-income-based The Company’s Korean subsidiary is the primary operating subsidiary of the Company. For the nine months ended September 30, 2017 and 2016, no income tax expense or benefit for the Korean subsidiary was recorded due to net operating loss carry-forwards available to offset taxable income and full allowance for deferred tax assets. Income tax expense recorded for the nine months ended September 30, 2017 and 2016 was $2,328 thousand and $1,845 thousand, respectively. The increase in income tax expenses was primarily attributable to changes in unrecognized tax benefits as a result of a lapse of the applicable statute of limitations in the Korean subsidiary and an increase in accrued interests on intercompany loans. In September 2017, the Company’s Korean subsidiary was notified that the Korean National Tax Service would be examining the income- and non-income-based |
Geographic and Segment Informat
Geographic and Segment Information | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Geographic and Segment Information | 15. Geographic and Segment Information The Company has two operating segments: Foundry Services Group and Standard Products Group. The Company’s chief operating decision maker is its Chief Executive Officer who allocates resources and assesses performance of the business and other activities based on gross profit. The following sets forth information relating to the operating segment (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Net Sales Foundry Services Group $ 80,404 $ 73,863 $ 239,460 $ 196,152 Standard Products Group Display Solutions 57,236 84,706 155,868 217,171 Power Solutions 39,001 33,619 109,595 93,750 Total Standard Products Group 96,237 118,325 265,463 310,921 All other 56 108 169 434 Total net sales $ 176,697 $ 192,296 $ 505,092 $ 507,507 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Gross Profit Foundry Services Group $ 24,374 $ 17,340 $ 69,894 $ 45,820 Standard Products Group 25,880 21,691 68,479 64,836 All other 56 108 169 (519 ) Total gross profit $ 50,310 $ 39,139 $ 138,542 $ 110,137 The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Korea $ 74,327 $ 58,521 Asia Pacific (other than Korea) 83,221 107,551 U.S.A. 8,399 15,396 Europe 10,492 10,497 Others 258 331 Total $ 176,697 $ 192,296 Nine Months Ended September 30, 2017 September 30, 2016 Korea $ 207,389 $ 155,971 Asia Pacific (other than Korea) 239,209 289,451 U.S.A. 28,721 28,510 Europe 29,070 32,763 Others 703 812 Total $ 505,092 $ 507,507 Net sales from the Company’s top ten largest customers accounted for 58% and 69% for the three months ended September 30, 2017 and 2016, respectively, and 59% and 65% for the nine months ended September 30, 2017 and 2016, respectively. For the three months ended September 30, 2017, the Company had one customer that represented 16.9% of its net sales, and for the nine months ended September 30, 2017, the Company had one customer that represented 15.6% of its net sales. For the three months ended September 30, 2016, the Company had two customers that represented 27.8% and 11.2% of its net sales, respectively, and for the nine months ended September 30, 2016, the Company had two customers that represented 25.6% and 11.1% of its net sales, respectively. 97% of the Company’s property, plant and equipment are located in Korea as of September 30, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 16. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the following as of September 30, 2017 and December 31, 2016, respectively (in thousands): September 30, 2017 December 31, 2016 Foreign currency translation adjustments $ (8,810 ) $ 14,460 Derivative adjustments (1,067 ) (436 ) Total $ (9,877 ) $ 14,024 Changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2017 and 2016 are as follows (in thousands): Three Months Ended September 30, 2017 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (11,502 ) $ (832 ) $ (12,334 ) Other comprehensive income (loss) before reclassifications 2,692 (193 ) 2,499 Amounts reclassified from accumulated other comprehensive income — (42 ) (42 ) Net current-period other comprehensive income (loss) 2,692 (235 ) 2,457 Ending balance $ (8,810 ) $ (1,067 ) $ (9,877 ) Three Months Ended September 30, 2016 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (43 ) $ — $ (43 ) Other comprehensive loss before reclassifications (27,340 ) (83 ) (27,423 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,340 ) (83 ) (27,423 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 and 2016 are as follows (in thousands): Nine Months Ended September 30, 2017 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ 14,460 $ (436 ) $ 14,024 Other comprehensive income (loss) before reclassifications (23,270 ) 716 (22,554 ) Amounts reclassified from accumulated other comprehensive income — (1,347 ) (1,347 ) Net current-period other comprehensive loss (23,270 ) (631 ) (23,901 ) Ending balance $ (8,810 ) $ (1,067 ) $ (9,877 ) Nine Months Ended September 30, 2016 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (190 ) $ (41 ) $ (231 ) Other comprehensive loss before reclassifications (27,193 ) (42 ) (27,235 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,193 ) (42 ) (27,235 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) There was no income tax impact related to changes in accumulated other comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016 due to net operating loss carry-forwards available to offset taxable income and full allowance for deferred tax assets. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 17. Earnings per Share The following table illustrates the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 September 30, 2016 (In thousands of US dollars, except share data) Basic Earnings per Share Net income $ 5,604 $ 29,866 Basic weighted average common stock outstanding 34,103,029 34,849,805 Basic earnings per share $ 0.16 $ 0.86 Diluted Earnings per Share Net income $ 5,604 $ 29,866 Add back: Interest expense on Exchangeable Notes 1,400 — Net income allocated to common stockholders $ 7,004 $ 29,866 Basic weighted average common stock outstanding 34,103,029 34,849,805 Net effect of dilutive equity awards 991,176 452,901 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock 10,448,213 — Diluted weighted average common stock outstanding 45,542,418 35,302,706 Diluted earnings per share $ 0.15 $ 0.85 Nine Months Ended September 30, 2017 September 30, 2016 (In thousands of US dollars, except share data) Basic Earnings per Share Net income $ 41,283 $ 20,175 Basic weighted average common stock outstanding 33,907,581 34,755,276 Basic earnings per share $ 1.22 $ 0.58 Diluted Earnings per Share Net income $ 41,283 $ 20,175 Add back: Interest expense on Exchangeable Notes 3,942 — Net income allocated to common stockholders $ 45,225 $ 20,175 Basic weighted average common stock outstanding 33,907,581 34,755,276 Net effect of dilutive equity awards 695,427 322,039 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock 9,835,863 — Diluted weighted average common stock outstanding 44,438,871 35,077,315 Diluted earnings per share $ 1.02 $ 0.58 The following outstanding instruments were excluded from the computation of diluted earnings per share, as they have an anti-dilutive effect on the calculation: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Options 809,417 2,457,955 860,572 3,545,576 Restricted Stock Units — — — — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies SEC Enforcement Staff Review In March 2014, the Company voluntarily reported to the Securities and Exchange Commission, or the SEC, that the Company’s 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 an independent investigation. Over the course of 2014 and the first two quarters 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. On May 1, 2017, the SEC announced that it had reached a final settlement with the Company, resolving SEC’s investigation. In that connection, the Company has consented, without admitting or denying the SEC’s findings, to the entry of an administrative order by the SEC directing that the Company cease and desist from committing or causing any violations of certain provisions of the federal securities laws and related SEC regulations. The SEC’s administrative order was entered on May 1, 2017. The SEC imposed a monetary penalty of $3,000 thousand on the Company. In the first quarter ended March 31, 2017, the Company established a reserve in that amount for the potential settlement of this matter. The reserved monetary penalty of $3,000 thousand was paid to the SEC during the second quarter of 2017. The Company also agreed to an undertaking to cooperate fully with the SEC in any and all investigations, litigations or other proceedings relating to or arising from the matters described in the SEC’s order. In connection with the settlement, the SEC considered remedial acts promptly undertaken by the Company and its cooperation with the SEC staff during the course of the investigation. Among other things, as previously disclosed in the Company’s filings with the SEC, the Audit Committee of the Company self-investigated and self-reported the accounting errors, selected new management and implemented various additional controls designed to prevent similar errors going forward. Securities Class Action Complaints The Company recorded the $23,500 thousand of the settlement obligation for the Class Action Litigation as accrued expenses in the consolidated balance sheets as of December 31, 2015 and as selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2015. For further information regarding the Class Action Litigation, see “Part I: Item 3. Legal Proceedings” included elsewhere in the Company’s annual report on Form 10-K 10-K”). Shareholder Derivative Complaints Shareholder Derivative Complaints The settlement for the shareholder derivative actions described in “Part I: Item 3. Legal Proceedings” of the 2016 Form 10-K 10-K. Securities Class Action Complaints On June 10, 2016, the court granted plaintiffs’ motion for preliminary approval of the proposed settlement. On October 18, 2016, after a hearing held on October 14, 2016, the court entered its order and final judgment (the “Judgment”) granting final approval of the proposed settlement and awarding plaintiffs’ counsel $750 thousand for attorneys’ fees and litigation expenses. As a result, $750 thousand was paid out of the Company’s escrow account. The Judgment was not appealed within the applicable appeals period (on or before December 19, 2016). The settlement therefore became effective after the expiration of the appeals period and $2,258 thousand was paid to the Company from the escrow account, previously recorded as restricted cash, in December 2016. The remaining restricted cash related to insurance proceeds of $3,078 thousand was also released in December 2016. FORWARD LOOKING STATEMENTS |
Business, Basis of Presentati26
Business, Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Business | Business MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a designer and manufacturer of analog and mixed-signal semiconductor platform solutions for communications, Internet of Things (“IoT”) applications, consumer, industrial and automotive applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“US GAAP”). These interim consolidated financial statements include normal recurring adjustments and the elimination of all intercompany accounts and transactions which are, in the opinion of management, necessary to provide a fair statement of the Company’s financial condition and results of operations for the periods presented. These interim consolidated financial statements are presented in accordance with Accounting Standards Codification 270, “Interim Reporting” The December 31, 2016 balance sheet data was derived from the Company’s audited financial statements, but does not include all disclosures required by US GAAP. |
Reclassifications | Reclassifications Certain charges related to the closure of the Company’s 6-inch |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2017-12, 2017-12”). 2017-12 2017-12 2017-12 In July 2017, the FASB issued Accounting Standards Update No. 2017-11, 2017-11”), 2017-11 2017-11 In May 2017, the FASB issued Accounting Standards Update No. 2017-09, 2017-09”). 2017-09 2017-09 2017-09 In August 2016, the FASB issued Accounting Standards Update No. 2016-15, 2016-15”). 2016-15 2016-18, 2016-18”). 2016-18 2016-15 In February 2016, the FASB issued Accounting Standards Update No. 2016-02, 2016-02”) 2016-02 right-of-use 2016-02 In May 2014, the FASB issued Accounting Standards Update No. 2014-09, 2014-09”). 2014-09 2014-09 2015-14 2014-09 2016-08, 2016-10, 2016-12, 2016-20, 2016-08, 2016-10, 2016-12 2016-20 2014-09 The Company started analyzing the potential impact of applying the new guidance by reviewing its current accounting policies, customer arrangements and practices. The Company has assigned internal resources in addition to the engagement of third party service providers to assist in the evaluation. The Company’s in-progress analysis includes an evaluation of the terms of foundry services contracts and other arrangements that could potentially change the point in time revenue recognition to over time in proportion of wafer-manufacturing, which could have a material impact to the Company’s consolidated financial statements. The Company has not yet completed its assessment. As the Company continues its assessment, it is also identifying and preparing to implement appropriate changes to accounting policies, business processes and internal controls to support the new revenue standard and related disclosure requirements. The Company will adopt the new revenue standard on a modified retrospective basis on January 1, 2018. |
Recently Adopted Accounting Pronouncements - Simplifying the Measurement of Inventory | Recently Adopted Accounting Pronouncements In July 2015, the FASB issued Accounting Standards Update No. 2015-11, 2015-11”). 2015-11, 2015-11 2015-11 |
Recently Adopted Accounting Pronouncements - Income Taxes | Recently Adopted Accounting Pronouncements In November 2015, the FASB issued Accounting Standards Update No. 2015-17, (“ASU 2015-17”). 2015-17 2015-17 |
Recently Adopted Accounting Pronouncements - Improvements to Employee Share-Based Payment Accounting | Recently Adopted Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update No. 2016-09, 2016-09”). 2016-09 2016-09 2016-09 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of September 30, 2017 and December 31, 2016 consist of the following (in thousands): September 30, 2017 December 31, 2016 Finished goods $ 11,386 $ 7,867 Semi-finished goods and work-in-process 39,898 46,653 Raw materials 10,795 7,846 Materials in-transit 1,172 1,859 Less: inventory reserve (6,089 ) (7,177 ) Inventories, net $ 57,162 $ 57,048 |
Changes in Inventory Reserve | Changes in inventory reserve for the three and nine months ended September 30, 2017 and 2016 are as follows (in thousands): Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Beginning balance $ (5,297 ) $ (7,177 ) $ (14,997 ) $ (16,033 ) Change in reserve Inventory reserve charged to costs of sales (2,084 ) (3,479 ) (3,459 ) (5,020 ) Sale of previously reserved inventory 816 3,380 5,025 5,339 (1,268 ) (99 ) 1,566 319 Write off 433 1,584 5,710 7,850 Translation adjustments 43 (397 ) (769 ) (626 ) Ending balance $ (6,089 ) $ (6,089 ) $ (8,490 ) $ (8,490 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of September 30, 2017 and December 31, 2016 are comprised of the following (in thousands): September 30, 2017 December 31, 2016 Buildings and related structures $ 65,385 $ 64,939 Machinery and equipment 279,614 255,618 Others 35,597 29,492 380,596 350,049 Less: accumulated depreciation (209,240 ) (184,521 ) Land 15,034 14,265 Property, plant and equipment, net $ 186,390 $ 179,793 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets as of September 30, 2017 and December 31, 2016 are comprised of the following (in thousands): September 30, 2017 Gross amount Accumulated amortization Net amount Technology $ 18,868 $ (18,868 ) $ — Customer relationships 27,098 (27,098 ) — Intellectual property assets 10,401 (6,653 ) 3,748 Intangible assets, net $ 56,367 $ (52,619 ) $ 3,748 December 31, 2016 Gross amount Accumulated amortization Net amount Technology $ 17,903 $ (17,903 ) $ — Customer relationships 25,712 (25,712 ) — Intellectual property assets 9,026 (5,941 ) 3,085 Intangible assets, net $ 52,641 $ (49,556 ) $ 3,085 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of September 30, 2017 and December 31, 2016 are comprised of the following (in thousands): September 30, 2017 December 31, 2016 Payroll, benefits and related taxes, excluding severance benefits $ 17,436 $ 24,982 Withholding tax attributable to intercompany interest income 17,402 15,573 Interest on senior notes 3,463 6,831 Outside service fees 2,293 4,423 Others 4,730 8,556 Accrued expenses $ 45,324 $ 60,365 |
Derivative Financial Instrume31
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of Derivative Contracts | Details of derivative contracts as of September 30, 2017 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement June 22, 2017 Zero cost collar $ 65,000 October 2017 to February 2018 June 22, 2017 Forward $ 15,000 October to December 2017 September 28, 2017 Zero cost collar $ 54,000 January 2018 to June 2018 September 28, 2017 Forward $ 36,000 January 2018 to June 2018 Details of derivative contracts as of December 31, 2016 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement November 11, 2016 Zero cost collar $ 18,000 March to August 2017 |
Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities | The fair values of the Company’s outstanding zero cost collar and forward contracts recorded as assets and liabilities as of September 30, 2017 and December 31, 2016 are as follows (in thousands): Derivatives designated as hedging instruments: September 30, 2017 December 31, 2016 Liabilities Derivatives: Zero cost collars Other current liabilities $ 1,257 $ 453 Liabilities Derivatives: Forwards Other current liabilities $ 267 $ — |
Offsetting of Derivative Asset and Liabilities | Offsetting of derivative assets and liabilities as of September 30, 2017 is as follows (in thousands): As of September 30, 2017 Gross amounts of recognized assets/liabilities Gross amounts offset in the balance sheets Net amounts of assets/liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liabilities Derivatives: Zero cost collars $ 1,257 $ — $ 1,257 $ — $ (700 ) $ 557 Liabilities Derivatives: Forwards $ 267 $ — $ 267 $ — $ (120 ) $ 147 Offsetting of derivative liabilities as of December 31, 2016 is as follows (in thousands): As of December 31, 2016 Gross amounts of recognized liabilities Gross amounts offset in the balance sheets Net amounts of liabilities presented in the balance sheets Gross amounts not offset in the balance sheets Net amount Financial instruments Cash collateral pledged Liabilities Derivatives: Zero cost collars $ 453 $ — $ 453 $ — $ (650 ) $ (197 ) |
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 three months ended September 30, 2017 and 2016 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) Location of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Loss Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Loss Recognized in Statement of Operations on Derivatives (Ineffective Portion) Three Months Ended September 30, Three Months Ended September 30, Three Months Ended September 30, 2017 2016 2017 2016 2017 2016 Zero cost collars $ (217 ) $ (83 ) Net sales $ — $ — Other income, net $ (142 ) $ (32 ) Forwards $ 24 $ — Net sales $ 42 $ — Other income, net $ (228 ) $ — Total $ (193 ) $ (83 ) $ 42 $ — $ (370 ) $ (32 ) The following table summarizes the impact of derivative instruments on the consolidated statement of operations for the nine months ended September 30, 2017 and 2016 (in thousands): Derivatives in ASC 815 Cash Flow Hedging Relationships Amount of Gain Recognized in AOCI on Derivatives (Effective Portion) Location of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Gain (Loss) Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) Nine Months Ended September 30, Nine Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 2017 2016 Zero cost collars $ 666 $ (42 ) Net sales $ 1,305 $ — Other income, net $ 127 $ 1 Forwards $ 50 $ — Net sales $ 42 $ — Other income, net $ (327 ) $ — Total $ 716 $ (42 ) $ 1,347 $ — $ (200 ) $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Liabilities Measured at Fair Value on Recurring Basis | As of September 30, 2017, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Measurement Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilities (other current liabilities) $ 1,524 $ 1,524 — $ 1,524 — As of December 31, 2016, the following table represents the Company’s liabilities measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Measurement Quoted Prices in Active Markets for Identical Asset (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Liabilities: Derivative liabilities (other current liabilities) $ 453 $ 453 — $ 453 — |
Schedule of Fair Value of Long-term Borrowings | Fair Value of Long-term Borrowings September 30, 2017 December 31, 2016 Carrying Value Fair Value Carrying Value Fair Value (In thousands of US dollars) Long-term Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 81,247 $ 130,123 $ — $ — 6.625% Senior Notes due July 2021 (Level 2) $ 221,647 $ 219,656 $ 221,082 $ 193,500 |
Long-Term Borrowings (Tables)
Long-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-term Borrowings | Long-term borrowings as of September 30, 2017 and December 31, 2016 are as follows (in thousands): September 30, 2017 December 31, 2016 5.0% Exchangeable Senior Notes due March 2021 $ 86,250 $ — 6.625% Senior Notes due July 2021 $ 225,000 $ 225,000 Less: unamortized discount and debt issuance costs (8,356 ) (3,918 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 302,894 $ 221,082 |
Accrued Severance Benefits (Tab
Accrued Severance Benefits (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Postemployment Benefits [Abstract] | |
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows (in thousands): Three Months Ended Nine Months Ended Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 Beginning balance $ 130,894 $ 130,144 $ 132,800 $ 135,160 Provisions 4,578 15,354 3,782 13,609 Severance payments (1,496 ) (19,578 ) (1,076 ) (14,178 ) Translation adjustments (852 ) 7,204 8,350 9,265 133,124 133,124 143,856 143,856 Less: Cumulative contributions to the National Pension Fund (243 ) (243 ) (305 ) (305 ) Group severance insurance plan (593 ) (593 ) (705 ) (705 ) Accrued severance benefits, net $ 132,288 $ 132,288 $ 142,846 $ 142,846 |
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its non-executive Severance benefit Remainder of 2017 $ — 2018 — 2019 537 2020 1,004 2021 1,439 2022 1,407 2023 – 2027 19,016 |
Geographic and Segment Inform35
Geographic and Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segment | The following sets forth information relating to the operating segment (in thousands): Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Net Sales Foundry Services Group $ 80,404 $ 73,863 $ 239,460 $ 196,152 Standard Products Group Display Solutions 57,236 84,706 155,868 217,171 Power Solutions 39,001 33,619 109,595 93,750 Total Standard Products Group 96,237 118,325 265,463 310,921 All other 56 108 169 434 Total net sales $ 176,697 $ 192,296 $ 505,092 $ 507,507 Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Gross Profit Foundry Services Group $ 24,374 $ 17,340 $ 69,894 $ 45,820 Standard Products Group 25,880 21,691 68,479 64,836 All other 56 108 169 (519 ) Total gross profit $ 50,310 $ 39,139 $ 138,542 $ 110,137 |
Net Sales by Region, Based on Location of Products are Billed | The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Three Months Ended September 30, 2017 September 30, 2016 Korea $ 74,327 $ 58,521 Asia Pacific (other than Korea) 83,221 107,551 U.S.A. 8,399 15,396 Europe 10,492 10,497 Others 258 331 Total $ 176,697 $ 192,296 Nine Months Ended September 30, 2017 September 30, 2016 Korea $ 207,389 $ 155,971 Asia Pacific (other than Korea) 239,209 289,451 U.S.A. 28,721 28,510 Europe 29,070 32,763 Others 703 812 Total $ 505,092 $ 507,507 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consists of the following as of September 30, 2017 and December 31, 2016, respectively (in thousands): September 30, 2017 December 31, 2016 Foreign currency translation adjustments $ (8,810 ) $ 14,460 Derivative adjustments (1,067 ) (436 ) Total $ (9,877 ) $ 14,024 |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the three months ended September 30, 2017 and 2016 are as follows (in thousands): Three Months Ended September 30, 2017 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (11,502 ) $ (832 ) $ (12,334 ) Other comprehensive income (loss) before reclassifications 2,692 (193 ) 2,499 Amounts reclassified from accumulated other comprehensive income — (42 ) (42 ) Net current-period other comprehensive income (loss) 2,692 (235 ) 2,457 Ending balance $ (8,810 ) $ (1,067 ) $ (9,877 ) Three Months Ended September 30, 2016 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (43 ) $ — $ (43 ) Other comprehensive loss before reclassifications (27,340 ) (83 ) (27,423 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,340 ) (83 ) (27,423 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) Changes in accumulated other comprehensive income (loss) for the nine months ended September 30, 2017 and 2016 are as follows (in thousands): Nine Months Ended September 30, 2017 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ 14,460 $ (436 ) $ 14,024 Other comprehensive income (loss) before reclassifications (23,270 ) 716 (22,554 ) Amounts reclassified from accumulated other comprehensive income — (1,347 ) (1,347 ) Net current-period other comprehensive loss (23,270 ) (631 ) (23,901 ) Ending balance $ (8,810 ) $ (1,067 ) $ (9,877 ) Nine Months Ended September 30, 2016 Foreign currency translation adjustments Derivative adjustments Total Beginning balance $ (190 ) $ (41 ) $ (231 ) Other comprehensive loss before reclassifications (27,193 ) (42 ) (27,235 ) Amounts reclassified from accumulated other comprehensive income — — — Net current-period other comprehensive loss (27,193 ) (42 ) (27,235 ) Ending balance $ (27,383 ) $ (83 ) $ (27,466 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Common Share | The following table illustrates the computation of basic and diluted earnings per common share for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, 2017 September 30, 2016 (In thousands of US dollars, except share data) Basic Earnings per Share Net income $ 5,604 $ 29,866 Basic weighted average common stock outstanding 34,103,029 34,849,805 Basic earnings per share $ 0.16 $ 0.86 Diluted Earnings per Share Net income $ 5,604 $ 29,866 Add back: Interest expense on Exchangeable Notes 1,400 — Net income allocated to common stockholders $ 7,004 $ 29,866 Basic weighted average common stock outstanding 34,103,029 34,849,805 Net effect of dilutive equity awards 991,176 452,901 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock 10,448,213 — Diluted weighted average common stock outstanding 45,542,418 35,302,706 Diluted earnings per share $ 0.15 $ 0.85 Nine Months Ended September 30, 2017 September 30, 2016 (In thousands of US dollars, except share data) Basic Earnings per Share Net income $ 41,283 $ 20,175 Basic weighted average common stock outstanding 33,907,581 34,755,276 Basic earnings per share $ 1.22 $ 0.58 Diluted Earnings per Share Net income $ 41,283 $ 20,175 Add back: Interest expense on Exchangeable Notes 3,942 — Net income allocated to common stockholders $ 45,225 $ 20,175 Basic weighted average common stock outstanding 33,907,581 34,755,276 Net effect of dilutive equity awards 695,427 322,039 Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock 9,835,863 — Diluted weighted average common stock outstanding 44,438,871 35,077,315 Diluted earnings per share $ 1.02 $ 0.58 |
Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Common Share | The following outstanding instruments were excluded from the computation of diluted earnings per share, as they have an anti-dilutive effect on the calculation: Three Months Ended Nine Months Ended September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 Options 809,417 2,457,955 860,572 3,545,576 Restricted Stock Units — — — — |
Business, Basis of Presentati38
Business, Basis of Presentation and Significant Accounting Policies - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017SegmentsBusiness_Lines | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Number of operating segments | Segments | 2 |
Standard Products Group [Member] | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |
Number of business lines | Business_Lines | 2 |
Sales of Accounts Receivable 39
Sales of Accounts Receivable and Receivable Discount Program - Additional Information (Detail) - Trade Accounts Receivable [Member] - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Proceeds from sale of accounts receivable | $ 16,180 | $ 17,984 |
Selling, General and Administrative Expenses [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Pre-tax losses on accounts receivable | $ 47 | $ 56 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||||||
Finished goods | $ 11,386 | $ 7,867 | ||||
Semi-finished goods and work-in-process | 39,898 | 46,653 | ||||
Raw materials | 10,795 | 7,846 | ||||
Materials in-transit | 1,172 | 1,859 | ||||
Less: inventory reserve | (6,089) | $ (5,297) | (7,177) | $ (8,490) | $ (14,997) | $ (16,033) |
Inventories, net | $ 57,162 | $ 57,048 |
Inventories - Changes in Invent
Inventories - Changes in Inventory Reserve (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | ||||
Beginning balance | $ (5,297) | $ (14,997) | $ (7,177) | $ (16,033) |
Change in reserve | ||||
Inventory reserve charged to costs of sales | (2,084) | (3,459) | (3,479) | (5,020) |
Sale of previously reserved inventory | 816 | 5,025 | 3,380 | 5,339 |
Change in reserve | (1,268) | 1,566 | (99) | 319 |
Write off | 433 | 5,710 | 1,584 | 7,850 |
Translation adjustments | 43 | (769) | (397) | (626) |
Ending balance | $ (6,089) | $ (8,490) | $ (6,089) | $ (8,490) |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 380,596 | $ 350,049 |
Less: accumulated depreciation | (209,240) | (184,521) |
Property, plant and equipment, net | 186,390 | 179,793 |
Buildings and Related Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 65,385 | 64,939 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 279,614 | 255,618 |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 35,597 | 29,492 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 15,034 | $ 14,265 |
Property, Plant and Equipment43
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 20,224 | $ 18,448 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | $ 56,367 | $ 52,641 |
Accumulated amortization | (52,619) | (49,556) |
Intangible asset, Net amount | 3,748 | 3,085 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 18,868 | 17,903 |
Accumulated amortization | (18,868) | (17,903) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 27,098 | 25,712 |
Accumulated amortization | (27,098) | (25,712) |
Intellectual Property Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 10,401 | 9,026 |
Accumulated amortization | (6,653) | (5,941) |
Intangible asset, Net amount | $ 3,748 | $ 3,085 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 465 | $ 343 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll, benefits and related taxes, excluding severance benefits | $ 17,436 | $ 24,982 |
Withholding tax attributable to intercompany interest income | 17,402 | 15,573 |
Interest on senior notes | 3,463 | 6,831 |
Outside service fees | 2,293 | 4,423 |
Others | 4,730 | 8,556 |
Accrued expenses | $ 45,324 | $ 60,365 |
Derivative Financial Instrume47
Derivative Financial Instruments - Details of Derivative Contracts (Detail) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2017 | |
Zero Cost Collar One [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Jun. 22, 2017 | Nov. 11, 2016 |
Total notional amount | $ 65,000,000 | $ 18,000,000 |
Month of settlement, start | 2017-10 | 2017-03 |
Month of settlement, end | 2018-02 | 2017-08 |
Forward [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Jun. 22, 2017 | |
Total notional amount | $ 15,000,000 | |
Month of settlement, start | 2017-10 | |
Month of settlement, end | 2017-12 | |
Zero Cost Collar Two [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Sep. 28, 2017 | |
Total notional amount | $ 54,000,000 | |
Month of settlement, start | 2018-01 | |
Month of settlement, end | 2018-06 | |
Forward One [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Sep. 28, 2017 | |
Total notional amount | $ 36,000,000 | |
Month of settlement, start | 2018-01 | |
Month of settlement, end | 2018-06 |
Derivative Financial Instrume48
Derivative Financial Instruments - Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Zero Cost Collars [Member] | ||
Liabilities Derivatives: | ||
Derivatives designated as hedging instruments, Liability | $ 1,257 | $ 453 |
Forward [Member] | ||
Liabilities Derivatives: | ||
Derivatives designated as hedging instruments, Liability | 267 | |
Other Current Liabilities [Member] | Zero Cost Collars [Member] | ||
Liabilities Derivatives: | ||
Derivatives designated as hedging instruments, Liability | 1,257 | $ 453 |
Other Current Liabilities [Member] | Forward [Member] | ||
Liabilities Derivatives: | ||
Derivatives designated as hedging instruments, Liability | $ 267 |
Derivative Financial Instrume49
Derivative Financial Instruments - Offsetting of Derivative Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Zero Cost Collars [Member] | ||
Derivative [Line Items] | ||
Liability Derivatives, Gross amounts of recognized liabilities | $ 1,257 | $ 453 |
Liability Derivatives, Gross amounts offset in the balance sheets | 0 | 0 |
Liability Derivatives, Net amounts of liabilities presented in the balance sheets | 1,257 | 453 |
Liability Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 | 0 |
Liability Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | (700) | (650) |
Liability Derivatives, Net amount after master netting | 557 | $ (197) |
Forward [Member] | ||
Derivative [Line Items] | ||
Liability Derivatives, Gross amounts of recognized liabilities | 267 | |
Liability Derivatives, Gross amounts offset in the balance sheets | 0 | |
Liability Derivatives, Net amounts of liabilities presented in the balance sheets | 267 | |
Liability Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 | |
Liability Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | (120) | |
Liability Derivatives, Net amount after master netting | $ 147 |
Derivative Financial Instrume50
Derivative Financial Instruments - Impact of Derivative Instruments on Consolidated Statement of Operations (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ (193) | $ (83) | $ 716 | $ (42) |
Other Income, Net [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (370) | (32) | (200) | 1 |
Net Sales [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) | 42 | 1,347 | ||
Zero Cost Collars [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | (217) | (83) | 666 | (42) |
Zero Cost Collars [Member] | Other Income, Net [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (142) | $ (32) | 127 | $ 1 |
Zero Cost Collars [Member] | Net Sales [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) | 1,305 | |||
Forward [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 24 | 50 | ||
Forward [Member] | Other Income, Net [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain (Loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (228) | (327) | ||
Forward [Member] | Net Sales [Member] | ||||
Derivative [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Statement of Operations (Effective Portion) | $ 42 | $ 42 |
Derivative Financial Instrume51
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Estimated amount reclassified from accumulated other comprehensive income (loss) into loss, period | 12 months | |
Estimated amount reclassified from accumulated other comprehensive income (loss) into loss | $ 1,067,000 | |
Zero Cost Collar and Forward Contracts [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member] | ||
Derivative [Line Items] | ||
Deposit with counterparty | 8,700,000 | |
Threshold amount of cash collateral | 500,000 | |
Cash collateral for credit exposure in derivatives | 820,000 | |
Termination provisions for cash and cash equivalents | $ 30,000,000 | |
Zero Cost Collars [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member] | ||
Derivative [Line Items] | ||
Deposit with counterparty | $ 2,500,000 | |
Cash collateral for credit exposure in derivatives | $ 650,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - Other Current Liabilities [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 1,524 | $ 453 |
Estimate of Fair Value Measurement [Member] | ||
Liabilities: | ||
Derivative liabilities | 1,524 | 453 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 1,524 | $ 453 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Long-term Borrowings: | ||
Carrying amount of senior notes | $ 302,894 | $ 221,082 |
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Long-term Borrowings: | ||
Carrying amount of senior notes | 81,247 | |
Estimated fair value of senior notes | 130,123 | |
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 | 221,647 | 221,082 |
Estimated fair value of senior notes | $ 219,656 | $ 193,500 |
Fair Value Measurements - Sch54
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Sep. 30, 2017 | Dec. 31, 2016 |
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest rate | 5.00% | 5.00% | ||
Due date | Mar. 1, 2021 | Mar. 1, 2021 | ||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest rate | 6.625% | 6.625% | 6.625% | |
Due date | Jul. 15, 2021 | Jul. 15, 2021 | Jul. 15, 2021 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | Jan. 17, 2017 | Jul. 18, 2013 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt issuance costs paid | $ 5,902,000 | ||||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest rate | 6.625% | 6.625% | 6.625% | ||
Due date | Jul. 15, 2021 | Jul. 15, 2021 | Jul. 15, 2021 | ||
Aggregate principal amount | $ 225,000,000 | ||||
Debt issuance costs paid | 5,120,000 | ||||
Original debt issue discount | $ 1,125,000 | ||||
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest rate | 5.00% | 5.00% | |||
Due date | Mar. 1, 2021 | Mar. 1, 2021 | |||
Aggregate principal amount | $ 86,250,000 | ||||
Debt issuance costs paid | $ 5,902,000 | $ 5,902,000 | |||
Other Asset Class [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Assets fair value on non-recurring basis | 0 | $ 0 | |||
Liabilities fair value on non-recurring basis | $ 0 | $ 0 |
Long-Term Borrowings - Componen
Long-Term Borrowings - Components of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less: unamortized discount and debt issuance costs | $ (8,356) | $ (3,918) |
Long-term borrowings, net of unamortized discount and debt issuance costs | 302,894 | 221,082 |
Exchangeable Senior Notes [Member] | 5.0% Exchangeable Senior Notes due March 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | 86,250 | |
Senior Notes [Member] | 6.625% Senior Notes Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term borrowings | $ 225,000 | $ 225,000 |
Long-Term Borrowings - Compon57
Long-Term Borrowings - Components of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Sep. 30, 2017 | Dec. 31, 2016 |
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.00% | 5.00% | ||
Due date | Mar. 1, 2021 | Mar. 1, 2021 | ||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.625% | 6.625% | 6.625% | |
Due date | Jul. 15, 2021 | Jul. 15, 2021 | Jul. 15, 2021 |
Long-Term Borrowings - Addition
Long-Term Borrowings - Additional Information (Detail) - USD ($) | Jan. 17, 2017 | Jul. 18, 2013 | Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||||||
Repurchase of common stock, shares | 1,795,444 | |||||
Repurchase of common stock | $ 11,401,000 | |||||
Debt issuance costs paid | 5,902,000 | |||||
Interest expense related to the Exchangeable Notes | $ 1,400,000 | $ 3,942,000 | ||||
6.625% Senior Notes Due 2021 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 225,000,000 | |||||
Interest rate | 6.625% | 6.625% | 6.625% | 6.625% | ||
Due date | Jul. 15, 2021 | Jul. 15, 2021 | Jul. 15, 2021 | |||
Aggregate principal amount of senior notes pricing | 99.50% | |||||
Debt issuance costs paid | $ 5,120,000 | |||||
Interest expense related to the Exchangeable Notes | $ 11,744,000 | $ 11,706,000 | ||||
Original debt issue discount | $ 1,125,000 | |||||
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 | 103.313% | |||||
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 | 101.656% | |||||
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% | |||||
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 86,250,000 | |||||
Interest rate | 5.00% | 5.00% | 5.00% | |||
Due date | Mar. 1, 2021 | Mar. 1, 2021 | ||||
Aggregate principal amount of senior notes pricing | 5.00% | |||||
Convertible notes principal amount denomination value | $ 1,000 | |||||
Conversion of converted notes, shares issued | 121.1387 | |||||
Exchange price | $ 8.26 | $ 8.26 | ||||
Redemption price plus accrued, unpaid interest and special interest to the date of redemption | 100.00% | |||||
Minimum required percentage of holders to declare repurchase of notes | 25.00% | |||||
Percentage of notes to repurchased on declaration by minimum required holders | 100.00% | |||||
Debt issuance costs paid | $ 5,902,000 | $ 5,902,000 | ||||
Interest expense related to the Exchangeable Notes | $ 3,942,000 |
Accrued Severance Benefits - Ad
Accrued Severance Benefits - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2017 | |
Percentage of employees eligible for severance benefits | 98.00% |
Korea [Member] | Maximum [Member] | |
Retirement age of employees | 60 years |
Accrued Severance Benefits - Ch
Accrued Severance Benefits - Changes in Accrued Severance Benefits (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |||||
Beginning balance | $ 130,894 | $ 132,800 | $ 130,144 | $ 135,160 | |
Provisions | 4,578 | 3,782 | 15,354 | 13,609 | |
Severance payments | (1,496) | (1,076) | (19,578) | (14,178) | |
Translation adjustments | (852) | 8,350 | 7,204 | 9,265 | |
Ending balance | 133,124 | 143,856 | 133,124 | 143,856 | |
Less: Cumulative contributions to the National Pension Fund | (243) | (305) | (243) | (305) | |
Group severance insurance plan | (593) | (705) | (593) | (705) | |
Accrued severance benefits, net | $ 132,288 | $ 142,846 | $ 132,288 | $ 142,846 | $ 129,225 |
Accrued Severance Benefits - Fu
Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Retirement Benefits [Abstract] | |
Remainder of 2017 | $ 0 |
2,018 | 0 |
2,019 | 537 |
2,020 | 1,004 |
2,021 | 1,439 |
2,022 | 1,407 |
2023 - 2027 | $ 19,016 |
Foreign Currency Gain, Net - Ad
Foreign Currency Gain, Net - Additional Information (Detail) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($)₩ / $ | Dec. 31, 2016₩ / $ | |
Foreign Currency Transaction [Abstract] | |||
Intercompany loan balances | $ 669,637 | ||
Exchange rates using first base rate | ₩ / $ | 1,146.7 | 1,208.5 | |
New issue of intercompany loans | $ 75,000 |
Restructuring and Other Charg63
Restructuring and Other Charges (Gain), Net - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restricted cash | $ 18,251 | ||||||
Deposits received | 16,549 | $ 264 | |||||
Gain on sale of machinery and building as part of restructuring | $ 17,010 | $ 6,480 | |||||
Sensor Business [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Proceeds from sale of business | $ 1,295 | ||||||
Net gain on sale of business | $ 375 | ||||||
Korea [Member] | Buildings [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Gross proceeds from sale of building | 18,204 | ||||||
Value-added tax, for sale of the building | 1,655 | ||||||
Restricted cash | 18,204 | ||||||
Deposits received | $ 16,549 | ||||||
Decrease in restricted cash due to release | $ 18,204 | ||||||
Korea [Member] | Buildings [Member] | Restructuring Gain [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Gain on sale of machinery and building as part of restructuring | $ 16,635 | ||||||
6-inch Fabrication Facility Closure [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Gain on sale of machinery and building as part of restructuring | $ 7,785 | ||||||
Restructuring related deposits | $ 8,165 |
Early Termination Charges - Add
Early Termination Charges - Additional Information (Detail) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017USD ($)Employee_Position | Mar. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Early termination charges | $ 13,369 | $ 4,240 | ||
Headcount Reduction Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Cash payments | $ 31,000 | |||
Early termination charges | $ 2,300 | $ 11,100 | ||
Number of employees elected to resign | Employee_Position | 352 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Tax Contingency [Line Items] | ||||
Income tax expenses (benefits) | $ 937,000 | $ 758,000 | $ 2,328,000 | $ 1,845,000 |
Korean Subsidiary [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax expenses (benefits) | $ 0 | $ 0 | ||
Korean Subsidiary [Member] | National Tax Service, Korea [Member] | Earliest Tax Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, year under examination | 2,012 | |||
Korean Subsidiary [Member] | National Tax Service, Korea [Member] | Latest Tax Year [Member] | ||||
Income Tax Contingency [Line Items] | ||||
Income tax examination, year under examination | 2,014 |
Geographic and Segment Inform66
Geographic and Segment Information - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017Customer | Sep. 30, 2016Customer | Sep. 30, 2017SegmentsCustomer | Sep. 30, 2016Customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of operating segments | Segments | 2 | |||
Customer Concentration Risk [Member] | Net Sales [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of customers greater than ten percent threshold | 1 | 2 | 1 | 2 |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Ten Customers [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 58.00% | 69.00% | 59.00% | 65.00% |
Number of customers | 10 | 10 | 10 | 10 |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer One [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 16.90% | 27.80% | 15.60% | 25.60% |
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 11.20% | 11.10% | ||
Geographic Concentration Risk [Member] | Property, Plant and Equipment [Member] | Korea [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Concentration risk, percentage | 97.00% |
Geographic and Segment Inform67
Geographic and Segment Information - Schedule of Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Total net sales | $ 176,697 | $ 192,296 | $ 505,092 | $ 507,507 |
Total gross profit | 50,310 | 39,139 | 138,542 | 110,137 |
Operating Segments [Member] | Foundry Services Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 80,404 | 73,863 | 239,460 | 196,152 |
Total gross profit | 24,374 | 17,340 | 69,894 | 45,820 |
Operating Segments [Member] | Standard Products Group [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 96,237 | 118,325 | 265,463 | 310,921 |
Total gross profit | 25,880 | 21,691 | 68,479 | 64,836 |
Operating Segments [Member] | Standard Products Group [Member] | Display Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 57,236 | 84,706 | 155,868 | 217,171 |
Operating Segments [Member] | Standard Products Group [Member] | Power Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 39,001 | 33,619 | 109,595 | 93,750 |
All Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total net sales | 56 | 108 | 169 | 434 |
Total gross profit | $ 56 | $ 108 | $ 169 | $ (519) |
Geographic and Segment Inform68
Geographic and Segment Information - Net Sales by Region, Based on Location of Products are Billed (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 176,697 | $ 192,296 | $ 505,092 | $ 507,507 |
Korea [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 74,327 | 58,521 | 207,389 | 155,971 |
Asia Pacific (Other Than Korea) [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 83,221 | 107,551 | 239,209 | 289,451 |
U.S.A. [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 8,399 | 15,396 | 28,721 | 28,510 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | 10,492 | 10,497 | 29,070 | 32,763 |
Others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total net sales | $ 258 | $ 331 | $ 703 | $ 812 |
Accumulated Other Comprehensi69
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (8,810) | $ 14,460 |
Derivative adjustments | (1,067) | (436) |
Total | $ (9,877) | $ 14,024 |
Accumulated Other Comprehensi70
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | $ (72,114) | $ (62,330) | ||
Total other comprehensive income (loss) | $ 2,457 | $ (27,423) | (23,901) | (27,235) |
Balance, ending | (61,128) | (64,921) | (61,128) | (64,921) |
Foreign Currency Translation Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | (11,502) | (43) | 14,460 | (190) |
Other comprehensive income (loss) before reclassifications | 2,692 | (27,340) | (23,270) | (27,193) |
Total other comprehensive income (loss) | 2,692 | (27,340) | (23,270) | (27,193) |
Balance, ending | (8,810) | (27,383) | (8,810) | (27,383) |
Derivative Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | (832) | (436) | (41) | |
Other comprehensive income (loss) before reclassifications | (193) | (83) | 716 | (42) |
Amounts reclassified from accumulated other comprehensive income | (42) | (1,347) | ||
Total other comprehensive income (loss) | (235) | (83) | (631) | (42) |
Balance, ending | (1,067) | (83) | (1,067) | (83) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance, beginning | (12,334) | (43) | 14,024 | (231) |
Other comprehensive income (loss) before reclassifications | 2,499 | (27,423) | (22,554) | (27,235) |
Amounts reclassified from accumulated other comprehensive income | (42) | (1,347) | ||
Total other comprehensive income (loss) | 2,457 | (27,423) | (23,901) | (27,235) |
Balance, ending | $ (9,877) | $ (27,466) | $ (9,877) | $ (27,466) |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Loss) - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Equity [Abstract] | ||||
Income tax related to accumulated other comprehensive income (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Earnings per Share - Schedule o
Earnings per Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 5,604 | $ 29,866 | $ 41,283 | $ 20,175 |
Basic weighted average common stock outstanding | 34,103,029 | 34,849,805 | 33,907,581 | 34,755,276 |
Basic earnings per share | $ 0.16 | $ 0.86 | $ 1.22 | $ 0.58 |
Diluted Earnings per Share | ||||
Net income | $ 5,604 | $ 29,866 | $ 41,283 | $ 20,175 |
Add back: Interest expense on Exchangeable Notes | 1,400 | 3,942 | ||
Net income allocated to common stockholders | $ 7,004 | $ 29,866 | $ 45,225 | $ 20,175 |
Basic weighted average common stock outstanding | 34,103,029 | 34,849,805 | 33,907,581 | 34,755,276 |
Net effect of dilutive equity awards | 991,176 | 452,901 | 695,427 | 322,039 |
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 10,448,213 | 9,835,863 | ||
Diluted weighted average common stock outstanding | 45,542,418 | 35,302,706 | 44,438,871 | 35,077,315 |
Diluted earnings per share | $ 0.15 | $ 0.85 | $ 1.02 | $ 0.58 |
Earnings per Share - Schedule73
Earnings per Share - Schedule of Computation of Basic and Diluted Earnings Per Common Share (Parenthetical) (Detail) | Sep. 30, 2017 | Jan. 17, 2017 |
5.0% Exchangeable Senior Notes due March 2021 [Member] | Exchangeable Senior Notes [Member] | ||
Earnings Per Share [Line Items] | ||
Conversion of exchangeable notes to common stock rate | 5.00% | 5.00% |
Earnings per Share - Schedule74
Earnings per Share - Schedule of Antidilutive Securities Excluded from the Computation of Earnings Per Common Share (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Outstanding units and warrants excluded from computation of diluted loss per share/unit | 809,417 | 2,457,955 | 860,572 | 3,545,576 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 18, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Loss Contingencies [Line Items] | ||||||||
Insurance proceeds in restricted cash reclassified from other receivables | $ 29,571 | |||||||
Restricted cash | $ 18,251 | |||||||
Securities and Exchange Commission Actions [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Attorneys' fee and litigation expenses | $ 3,000 | |||||||
Settlement charge paid | $ 3,000 | |||||||
Shareholder Derivative Actions [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Attorneys' fee and litigation expenses | $ 750 | |||||||
Proceeds from insurance settlement | $ 3,000 | |||||||
Insurance proceeds in restricted cash reclassified from other receivables | 3,078 | |||||||
Litigation settlement paid from escrow | $ 750 | $ 2,258 | ||||||
Securities Class Action Complaints [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Proceeds from insurance settlement | 29,571 | |||||||
Insurance proceeds in restricted cash reclassified from other receivables | $ 29,571 | |||||||
Disbursements of accrued claims and settlements | $ 23,500 | |||||||
Restricted cash | $ 6,114 | $ 6,114 | ||||||
Securities Class Action Complaints [Member] | Accrued Expense [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Accrued claim settlement | $ 23,500 | |||||||
Securities Class Action Complaints [Member] | Other Receivables [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Insurance receivable | $ 29,571 |