Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jan. 31, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | MX | ||
Entity Registrant Name | MAGNACHIP SEMICONDUCTOR Corp | ||
Entity Central Index Key | 1,325,702 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 34,203,058 | ||
Entity Public Float | $ 260,362,764 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 128,575 | $ 83,355 |
Restricted cash (Note 14) | 18,251 | |
Accounts receivable, net | 92,026 | 61,775 |
Inventories, net | 73,073 | 57,048 |
Other receivables (Note 19) | 4,292 | 5,864 |
Prepaid expenses | 9,250 | 8,137 |
Hedge collateral (Note 8) | 7,600 | 3,150 |
Other current assets (Notes 1 and 2) | 15,444 | 5,113 |
Total current assets | 330,260 | 242,693 |
Property, plant and equipment, net | 205,903 | 179,793 |
Intangible assets, net | 4,061 | 3,085 |
Long-term prepaid expenses | 12,791 | 9,556 |
Deferred income tax assets | 264 | 193 |
Other non-current assets | 5,510 | 6,632 |
Total assets | 558,789 | 441,952 |
Current liabilities | ||
Accounts payable | 65,940 | 51,509 |
Other accounts payable | 10,261 | 12,272 |
Accrued expenses | 51,746 | 60,365 |
Deferred revenue | 8,335 | 11,092 |
Deposits received (Note 14) | 16,549 | |
Other current liabilities | 1,860 | 1,654 |
Total current liabilities | 138,142 | 153,441 |
Long-term borrowings, net | 303,416 | 221,082 |
Accrued severance benefits, net | 148,905 | 129,225 |
Other non-current liabilities | 7,963 | 10,318 |
Total liabilities | 598,426 | 514,066 |
Commitments and contingencies (Note 19) | ||
Stockholders' equity | ||
Common stock, $0.01 par value, 150,000,000 shares authorized, 42,563,808 shares issued and 34,189,599 outstanding at December 31, 2017 and 41,627,103 shares issued and 35,048,338 outstanding at December 31, 2016 | 426 | 416 |
Additional paid-in capital | 136,259 | 130,189 |
Accumulated deficit | (40,889) | (125,825) |
Treasury stock, 8,374,209 shares at December 31, 2017 and 6,578,765 shares at December 31, 2016, respectively | (102,319) | (90,918) |
Accumulated other comprehensive income (loss) | (33,114) | 14,024 |
Total stockholders' deficit | (39,637) | (72,114) |
Total liabilities and stockholders' equity | $ 558,789 | $ 441,952 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 | 42,563,808 | 41,627,103 |
Common stock, shares outstanding | 34,189,599 | 35,048,338 |
Treasury stock, shares | 8,374,209 | 6,578,765 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
Net sales | $ 679,672 | $ 687,969 | $ 633,712 |
Cost of sales | 491,779 | 531,743 | 498,848 |
Gross profit | 187,893 | 156,226 | 134,864 |
Operating expenses | |||
Selling, general and administrative expenses | 81,775 | 83,549 | 94,378 |
Research and development expenses | 70,523 | 72,180 | 83,420 |
Restructuring and other charges (gain), net | (17,010) | (6,480) | |
Early termination charges | 13,369 | 4,240 | |
Total operating expenses | 148,657 | 153,489 | 177,798 |
Operating income (loss) | 39,236 | 2,737 | (42,934) |
Interest expense | (21,559) | (16,238) | (16,268) |
Foreign currency gain (loss), net | 65,516 | (15,360) | (42,531) |
Other income, net | 2,898 | 2,990 | 1,779 |
Income (loss) before income tax expenses | 86,091 | (25,871) | (99,954) |
Income tax expenses (benefits) | 1,155 | 3,744 | (15,087) |
Net income (loss) | $ 84,936 | $ (29,615) | $ (84,867) |
Earnings (loss) per common share- | |||
Basic | $ 2.50 | $ (0.85) | $ (2.47) |
Diluted | $ 2.02 | $ (0.85) | $ (2.47) |
Weighted average number of shares- | |||
Basic | 33,943,264 | 34,833,967 | 34,380,517 |
Diluted | 44,755,137 | 34,833,967 | 34,380,517 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 84,936 | $ (29,615) | $ (84,867) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | (52,873) | 14,650 | 35,361 |
Derivative adjustments | |||
Fair valuation of derivatives | 7,736 | (1,032) | (3,748) |
Reclassification adjustment for loss (gain) on derivatives included in net loss | (2,001) | 637 | 3,222 |
Total other comprehensive income (loss) | (47,138) | 14,255 | 34,835 |
Total comprehensive income (loss) | $ 37,798 | $ (15,360) | $ (50,032) |
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] | Retained Earnings (Deficit) [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning at Dec. 31, 2014 | $ (18,502) | $ 406 | $ 118,419 | $ (11,343) | $ (90,918) | $ (35,066) | |
Balance, Shares beginning at Dec. 31, 2014 | 34,056,468 | ||||||
Stock-based compensation | 2,768 | 2,768 | |||||
Exercise of stock options | $ 3,436 | 5 | 3,431 | ||||
Exercise of stock options, Shares | 512,474 | 512,474 | |||||
Other comprehensive income (loss), net | $ 34,835 | 34,835 | |||||
Net income (loss) | (84,867) | (84,867) | |||||
Balance, ending at Dec. 31, 2015 | (62,330) | 411 | 124,618 | (96,210) | (90,918) | (231) | |
Balance, Shares ending at Dec. 31, 2015 | 34,568,942 | ||||||
Stock-based compensation | 3,843 | 3,843 | |||||
Exercise of stock options | $ 1,733 | 3 | 1,730 | ||||
Exercise of stock options, Shares | 296,103 | 296,103 | |||||
Settlement of restricted stock units | 2 | (2) | |||||
Settlement of restricted stock units, Shares | 183,293 | ||||||
Acquisition of treasury stock | 0 | ||||||
Other comprehensive income (loss), net | $ 14,255 | 14,255 | |||||
Net income (loss) | (29,615) | (29,615) | |||||
Balance, ending at Dec. 31, 2016 | $ (72,114) | 416 | 130,189 | (125,825) | (90,918) | 14,024 | |
Balance, Shares ending at Dec. 31, 2016 | 35,048,338 | 35,048,338 | |||||
Stock-based compensation | $ 2,336 | 2,336 | |||||
Exercise of stock options | $ 3,744 | 6 | 3,738 | ||||
Exercise of stock options, Shares | 539,183 | 539,183 | |||||
Settlement of restricted stock units | 4 | (4) | |||||
Settlement of restricted stock units, Shares | 397,522 | ||||||
Acquisition of treasury stock | $ (11,401) | 0 | (11,401) | ||||
Acquisition of treasury stock, Shares | (1,795,444) | (1,795,444) | |||||
Other comprehensive income (loss), net | $ (47,138) | (47,138) | |||||
Net income (loss) | 84,936 | 84,936 | |||||
Balance, ending at Dec. 31, 2017 | $ (39,637) | $ 426 | $ 136,259 | $ (40,889) | $ (102,319) | $ (33,114) | |
Balance, Shares ending at Dec. 31, 2017 | 34,189,599 | 34,189,599 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||
Net income (loss) | $ 84,936 | $ (29,615) | $ (84,867) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities | |||
Depreciation and amortization | 28,146 | 25,416 | 26,490 |
Provision for severance benefits | 24,373 | 14,432 | 15,289 |
Amortization of debt issuance costs and original issue discount | 1,987 | 707 | 660 |
Loss (gain) on foreign currency, net | (77,600) | 18,884 | 46,984 |
Restructuring gain and other | (17,010) | (7,785) | |
Stock-based compensation | 2,336 | 3,843 | 2,768 |
Other | 49 | 103 | 2,434 |
Changes in operating assets and liabilities | |||
Accounts receivable, net | (22,210) | 285 | 3,299 |
Inventories, net | (8,077) | (557) | 12,929 |
Other receivables | 3,981 | 19,125 | (21,463) |
Other current assets | 2,318 | 5,000 | 11,339 |
Accounts payable | 10,320 | (4,163) | (12,605) |
Other accounts payable | (12,141) | (6,603) | (10,892) |
Accrued expenses | (12,020) | (16,305) | (1,679) |
Deferred revenue | (3,949) | 1,674 | 8,136 |
Other current liabilities | (1,281) | (5,331) | (1,210) |
Other non-current liabilities | (760) | (1,574) | 3,105 |
Payment of severance benefits | (21,506) | (15,352) | (11,394) |
Other (Note 19) | (336) | 5,447 | 700 |
Net cash provided by (used in) operating activities | (18,444) | 7,631 | (9,977) |
Cash flows from investing activities | |||
Proceeds from settlement of hedge collateral | 10,615 | 6,317 | 10,841 |
Payment of hedge collateral | (14,839) | (3,552) | (17,182) |
Proceeds from disposal of plant, property and equipment | 18,834 | 688 | 9,886 |
Purchase of property, plant and equipment | (32,661) | (18,727) | (6,350) |
Payment for intellectual property registration | (1,207) | (1,049) | (742) |
Collection of guarantee deposits | 1,462 | 619 | 636 |
Payment of guarantee deposits | (41) | (193) | (675) |
Other | 94 | 23 | 195 |
Net cash used in investing activities | (17,743) | (15,874) | (3,391) |
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 | 3,744 | 1,732 | 3,436 |
Acquisition of treasury stock | (11,401) | ||
Net cash provided by financing activities | 72,691 | 1,732 | 3,436 |
Effect of exchange rates on cash and cash equivalents | 8,716 | (1,016) | (1,620) |
Net increase (decrease) in cash and cash equivalents | 45,220 | (7,527) | (11,552) |
Cash and cash equivalents | |||
Beginning of the period | 83,355 | 90,882 | 102,434 |
End of the period | 128,575 | 83,355 | 90,882 |
Supplemental cash flow information | |||
Cash paid for interest | 17,590 | 14,906 | 15,181 |
Cash paid (refunded) for income taxes | 1,027 | 693 | (5,276) |
Non-cash investing and financing activities | |||
Property, plant and equipment additions in other accounts payable | $ 2,520 | 3,091 | $ 3,348 |
Restricted cash received from sale of property, plant and equipment | $ (16,917) |
Business, Basis of Presentation
Business, Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Business, Basis of Presentation and Summary of Significant Accounting Policies Business MagnaChip Semiconductor Corporation (together with its subsidiaries, the “Company”) is a 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 memory and Radio Frequency (“RF”) applications. The Company’s business is comprised of two operating segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group is comprised of two business lines: Display Solutions and Power Solutions. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and mobile, automotive applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer and industrial applications. Basis of Presentation The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. Principles of Consolidation The consolidated financial statements include the accounts of the Company including its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. Reclassifications Certain charges related to the closure of the Company’s 6-inch fab and headcount reduction during 2016, previously included in selling, general and administrative expenses in the consolidated statements of operations, have been reclassified to restructuring and other charges (gain), net and early termination charges, respectively, to conform to the Company’s current year presentation. These reclassifications had no impact on the Company’s net income (loss), the consolidated balance sheets, the consolidated statements of comprehensive income (loss) and the consolidated statements of cash flows as previously reported. Use of Estimates The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, stock based compensation, property plant and equipment, intangible assets, other long-lived assets, long-term employee benefits, contingencies liabilities, estimated future cash flows and other assumptions used in long-lived asset impairment tests and calculation of income taxes and deferred tax valuation allowances, and assumptions used in the calculation of sales incentives, among others. Although these estimates and assumptions are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be significantly different from the estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. Foreign Currency Translation The Company has assessed in accordance with Accounting Standards Codification (ASC) 830, “Foreign Currency Matters” (“ASC 830”), the functional currency of each of its subsidiaries in Luxembourg and the Netherlands and has designated the U.S. dollar to be their respective functional currencies. The Korean Won is the functional currency for the Company’s Korean subsidiary, which is the primary operating subsidiary of the Company. The Company and its other subsidiaries are utilizing their local currencies as their functional currencies. The financial statements of the subsidiaries in functional currencies other than the U.S. dollar are translated into the U.S. dollar in accordance with ASC 830. All the assets and liabilities are translated to the U.S. dollar at the end-of-period exchange rates. Capital accounts are determined to be of a permanent nature and are therefore translated using historical exchange rates. Revenues and expenses are translated using average exchange rates for the respective periods. Foreign currency translation adjustments arising from differences in exchange rates from period to period are included in the foreign currency translation adjustment account in accumulated other comprehensive income (loss) of stockholders’ equity. Gains and losses due to transactions in currencies other than the functional currency are included as a component of other income, net in the statement of operations. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity date of three months or less when purchased. Accounts Receivable Reserves An allowance for doubtful accounts is provided based on the aggregate estimated uncollectability of the Company’s accounts receivable. The Company also records an estimate for sales returns, included within accounts receivable, net, based on the historical experience of the amount of goods that will be returned and refunded or replaced. In addition, the Company also includes in accounts receivable, an allowance for additional products that may have to be provided, free of charge, to compensate customers for products that do not meet previously agreed yield criteria, which the Company refers to as the low yield compensation reserve. Sales of Accounts Receivable The Company accounts for transfers of financial assets under ASC 860, “Transfers and Servicing,” as either sales or financings. Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. If the transfer does not meet these criteria, the transfer is accounted for as a financing. Financial assets that are treated as sales are removed from the Company’s accounts with any realized gain or loss reflected in earning during the period of sale. Inventories Inventories are stated at the lower of cost or net realizable value, using the first in, first out method (“FIFO”). If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable value, and the difference is recognized as a loss on valuation of inventories within cost of sales. Inventory reserves are established when conditions indicate that the net realizable value is less than costs due to physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. The Company evaluates the sufficiency of inventory reserves and take into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product age and other factors. Reserves are also established for excess inventory based on the Company’s current inventory levels and projected demand and its ability to sell those specific products. Situations that could cause these inventory reserves include a decline in business and economic conditions, decline in consumer confidence caused by changes in market conditions, sudden and significant decline in demand for our products, inventory obsolescence because of rapidly changing technology and consumer requirements, or failure to estimate end customer demand properly. A reduction of these inventory reserves may be recorded if previously reserved items are subsequently sold as a result of unexpected changes to certain aforementioned situations. In addition, as prescribed in ASC 330, “Inventory,” once a reserve is established for a particular item based on the Company’s assessment as described above, it is maintained until the related item is sold or scrapped as a new cost basis has been established that cannot subsequently be marked up. In addition, the cost of inventories is determined based on the normal capacity of each fabrication facility. In case the capacity utilization is lower than a certain level that management believes to be normal, the fixed overhead costs per production unit which exceeds those under normal capacity are charged to cost of sales rather than capitalized as inventories. Advances to Suppliers The Company, from time to time, may make prepayments to suppliers to procure materials to meet its planned production. The Company recorded prepayments of $7,404 thousand and $ 1,390 thousand as other current assets as of December 31, 2017 and 2016, respectively. Vendor Rebates The Company, from time to time, enters into arrangements whereby rebates are obtained from vendors when the Company achieves certain levels of purchases. The vendor rebates are computed at an agreed upon amount or percentage of purchase levels. As these vendor rebates are impacted by actual and estimated purchases for the applicable agreed upon period, the Company periodically assesses the progress of its purchase levels and revises the estimates when necessary. The Company accounts for such rebates as a reduction of inventory until the Company sells the product, at which time such rebates are reflected as a reduction of cost of sales in its consolidated statements of operations. Vendor rebates recorded as a reduction of inventory were $0 and $359 thousand as of December 31, 2017 and 2016, respectively. Vendor rebates recorded as a reduction of cost of sales were $379 thousand and $4,044 thousand for the years ended December 31, 2017 and 2016, respectively. Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. Buildings 30 - 40 years Building related structures 10 - 20 years Machinery and equipment 10 - 12 years Others 3 - 10 years Routine maintenance and repairs are charged to expense as incurred. Expenditures that enhance the value or significantly extend the useful lives of the related assets are capitalized. Impairment of Long-Lived Assets The Company reviews property, plant and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, “Property, Plant and Equipment”. Recoverability is measured by comparing its carrying amount with the future net undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured as the difference between the carrying amount of the assets and the fair value of assets using the present value of the future net cash flows generated by the respective long-lived assets. Restructuring Charges The Company recognizes restructuring charges in accordance with ASC 420, “Exit or Disposal Cost Obligations”. Certain costs and expenses related to exit or disposal activities are recorded as restructuring charges when liabilities for those costs and expenses are incurred. Lease Transactions The Company accounts for lease transactions as either operating leases or capital leases, depending on the terms of the underlying lease agreements. Machinery and equipment acquired under capital lease agreements are recorded at the lower of the present value of future minimum lease payments and estimated fair value of leased property and depreciated using the straight-line method over their estimated useful lives. In addition, the aggregate lease payments are recorded as capital lease obligations, net of unaccrued interest. Interest is amortized over the lease period using the effective interest rate method. Leases that do not qualify as capital leases are classified as operating leases, and the related rental payments are expensed on a straight-line basis over the shorter of the estimated useful lives of the leased property and the lease term. Intangible Assets Intangible assets other than intellectual property include technology and customer relationships which are amortized on a straight-line basis over periods ranging from one to five years. Intellectual property assets acquired represent rights under patents, trademarks and property use rights and are amortized over their respective periods of benefit, ranging up to ten years, on a straight-line basis. Fair Value Disclosures of Financial Instruments The Company follows ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in US GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by ASC 820 are: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, such as cash equivalents, accounts receivable, other receivables, accounts payable and other accounts payable approximate their fair values because of the short maturity of these instruments. Accrued Severance Benefits The majority of accrued severance benefits is for employees in the Company’s Korean subsidiary, MagnaChip Semiconductor Ltd. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of December 31, 2017, 98% of all employees of the Company were eligible for severance benefits. Accrued severance benefits are funded through a group severance insurance plan. The amounts funded under this insurance plan are classified as a reduction of the accrued severance benefits. Subsequent accruals are to be funded at the discretion of the Company. In accordance with the National Pension Act of the Republic of Korea, a certain portion of accrued severance benefits is deposited with the National Pension Fund and deducted from the accrued severance benefits. The contributed amount is paid to employees from the National Pension Fund upon their retirement. Revenue Recognition Revenue is recognized when there is persuasive evidence of an arrangement, the price to the buyer is fixed or determinable, delivery has occurred and collectability of the sales price is reasonably assured. Revenue from the sale of products is recognized when title and risk of loss transfers to the customer, which is generally when the product is shipped to or accepted by the customer depending on the terms of the arrangement. A portion of the Company’s sales are made through distributors for which revenue recognition criteria are usually met when the product is shipped to or accepted by the distributors, consistent with the principles described above. However, the risk of loss may not pass upon shipment of products to the distributor due to a variety of reasons, including the nature of the business arrangement with the distributor. For example, the financial condition of a distributor may indicate that payments by the distributor to the Company are contingent on resale of products to an end customer. In this situation, the Company defers recognition of revenue and cost of revenue on transactions with such distributor until the product has been resold to the end customer. The Company recorded deferred revenue in the amount of $8,335 thousand as of December 31, 2017 and $11,092 thousand as of December 31, 2016 as the Company received cash from certain customers and distributors for the sale of products prior to risk of loss being transferred based on the terms of the arrangement. In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer is presented in the statements of operations on a net basis (excluded from revenues). The Company provides a warranty, under which customers can return defective products. The Company estimates the costs related to those defective product returns and records them as a component of cost of sales. In addition, the Company offers sales returns (other than those that relate to defective products under warranty), yield provisions, cash discounts for early payments and certain allowances to its customers, including distributors. The Company records reserves for those returns, discounts and allowances as a deduction from sales, based on historical experience and other quantitative and qualitative factors. All amounts billed to a customer related to shipping and handling are classified as sales while all costs incurred by the Company for shipping and handling are classified as selling, general and administrative expenses. The amounts charged to selling, general and administrative expenses were $1,652 thousand, $1,631 thousand, and $2,394 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. Derivative Financial Instruments The Company applies the provisions of ASC 815, “Derivatives and Hedging” (“ASC 815”). This Statement requires the recognition of all derivative instruments as either assets or liabilities measured at fair value. Under the provisions of ASC 815, the Company may designate a derivative instrument as hedging the exposure to variability in expected future cash flows that are attributable to a particular risk (a “cash flow hedge”) or hedging the exposure to changes in the fair value of an asset or a liability (a “fair value hedge”). Special accounting for qualifying hedges allows the effective portion of a derivative instrument’s gains and losses to offset related results on the hedged item in the consolidated statements of operations and requires that a company formally document, designate and assess the effectiveness of the transactions that receive hedge accounting treatment. Both at the inception of a hedge and on an ongoing basis, a hedge must be expected to be highly effective in achieving offsetting changes in cash flows or fair value attributable to the underlying risk being hedged. If the Company determines that a derivative instrument is no longer highly effective as a hedge, it discontinues hedge accounting prospectively and future changes in the fair value of the derivative are recognized in current earnings. The Company assesses hedge effectiveness at the end of each quarter. In accordance with ASC 815, changes in the fair value of derivative instruments that are cash flow hedges are recognized in accumulated other comprehensive income (loss) and reclassified into earnings in the period in which the hedged item affects earnings. Ineffective portions of a derivative instrument’s change in fair value are immediately recognized in earnings. Derivative instruments that do not qualify, or cease to qualify, as hedges must be adjusted to fair value and the adjustments are recorded through net income (loss). The cash flows from derivative instruments receiving hedge accounting treatment are classified in the same categories as the hedged items in the consolidated statements of cash flows. Advertising The Company expenses advertising costs as incurred. Advertising expense was approximately $95 thousand, $149 thousand and $144 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. Product Warranties The Company records, in other current liabilities, warranty liabilities for the estimated costs that may be incurred under its basic limited warranty. The standard limited warranty period is one to two years for the majority of products. This warranty covers defective products, and related liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liability include historical and anticipated rates of warranty claims and repair or replacement costs per claim to satisfy the Company’s warranty obligation. As these factors are impacted by actual experience and future expectations, the Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts when necessary. Research and Development Research and development costs are expensed as incurred and include wafers, masks, employee expenses, contractor fees, building costs, utilities and administrative expenses. Licensed Patents and Technologies The Company has entered into a number of royalty agreements to license patents and technology used in the design of its products. The Company carries two types of royalties: lump-sum and running basis. Lump-sum royalties, which require initial payments, usually paid in installments, represent a non-refundable commitment, such that the total present value of these payments is recorded as a prepaid expense and a liability upon execution of the agreements and the costs are amortized over the contract period using the straight-line method and charged to research and development expenses in the consolidated statements of operations. Running royalties are paid based on the revenue of related products sold by the Company. Stock-Based Compensation The Company follows the provisions of ASC 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense, net of the estimated forfeiture rate, over the requisite service period. As permitted under ASC 718, the Company elected to recognize compensation expense for all options with graded vesting based on the graded attribution method. The Company uses the Black-Scholes option-pricing model to measure the grant-date-fair-value of options. The Black-Scholes model requires certain assumptions to determine an option’s fair value, including expected term, risk free interest rate, expected volatility and fair value of underlying common share. The expected term of each option grant was based on employees’ expected exercises and post-vesting employment termination behavior and the risk free interest rate was based on the U.S. Treasury yield curve for the period corresponding with the expected term at the time of grant. No dividends were assumed for this calculation of option value. Earnings per Share In accordance with ASC 260, “Earnings Per Share”, the Company computes basic earnings per share by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution of potential common stock outstanding during the period including stock options and restricted stock units, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options and restricted stock units), and convertibles, using the if-converted method. In determining the hypothetical shares repurchased, the Company uses the average share price for the period. In the case that earnings are negative, any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in a company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when it is necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. The Company recognizes and measures uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step process. In the first step, recognition, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step addresses measurement of a tax position that meets the more-likely-than-not criteria. The tax position is measured at the largest amount of benefit that has a likelihood of greater than 50 percent of being realized upon ultimate settlement. Concentration of Credit Risk The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral for customers on accounts receivable. The Company maintains reserves for potential credit losses, which are periodically reviewed. Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 provides new guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. The entire change in fair value for qualifying hedge instruments included in the effectiveness will be recorded in other comprehensive income (OCI) and amounts deferred in OCI will be reclassified to earnings in the same income statement line item in which the earnings effect of the hedged item is reported. ASU 2017-12 is effective for interim and annual periods for the Company on January 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption of ASU 2017-12 on its consolidated financial statements. In July 2017, the FASB issued Accounting Standards Update No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815)” (“ASU 2017-11”), which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in ASU 2017-11 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of adoption of ASU 2017-11 on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update No. 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 provides clarity and reduces both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, and interim periods within those years and early adoption is permitted. The Company does not expect the adoption of ASU 2017-09 to have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows (“ASC 230”), including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (“ASU 2016-18”). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-15 to have a material effect on the Company’s consolidated financial statements. The adoption of ASU 2016-18 will impact the Company’s current disclosures as it will require including restricted cash within cash and cash equivalents on the statement of cash flows. These ASUs will be adopted in the first quarter of 2018. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under US GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those reporting periods using a modified retrospective approach and early adoption is permitted. The Company is performing a preliminary review of its contracts that are expected to be applied under the new guidance. In M |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 2. Fair Value Measurements ASC 820 defines fair value, establishes a consistent framework for measuring fair value and expands disclosure requirements about fair value measurements. ASC 820 requires, among other things, the Company’s valuation techniques used to measure fair value to maximize the use of observable inputs and minimize the use of unobservable inputs. Fair Value of Financial Instruments As of December 31, 2017, the following table represents the Company’s assets measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Quoted Prices in Significant Significant Assets: Derivative assets (other current assets) $ 5,179 $ 5,179 — $ 5,179 — 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 Quoted Prices in Significant Significant Liabilities: Derivative liabilities (other current liabilities) $ 453 $ 453 — $ 453 — Items not reflected in the table above include cash equivalents, restricted cash, accounts receivable, other receivables, accounts payable, and other accounts payable, fair value of which approximate carrying values due to the short-term nature of these instruments. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs. Fair Value of Long-term Borrowings December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair (In thousands of US dollars) Long-term Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 81,576 $ 127,617 $ — $ — 6.625% senior notes due July 2021 (Level 2) $ 221,840 $ 224,719 $ 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 10, “Long-term Borrowings”. On July 18, 2013, the Company issued 6.625% senior notes due July 15, 2021 (the “2021 Notes”) of $225.0 million, which represents the principal amount, excluding $1.1 million of original issue discount and $5.1 million 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 10, “Long-term Borrowings”. Fair Values Measured on a Non-recurring Basis The Company’s non-financial assets, such as property, plant and equipment, and intangible assets are recorded at fair value upon acquisition and are remeasured at fair value only if an impairment charge is recognized. As of December 31, 2017 and 2016, the Company did not have any assets or liabilities measured at fair value on a non-recurring basis. |
Accounts Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | 3. Accounts Receivable Accounts receivable as of December 31, 2017 and 2016 consisted of the following (in thousands): December 31, 2017 2016 Accounts receivable $ 86,167 $ 63,116 Notes receivable 7,425 281 Less: Allowances for doubtful accounts (94 ) (83 ) Sales return reserves (628 ) (1,107 ) Low yield compensation reserve (844 ) (432 ) Accounts receivable, net $ 92,026 $ 61,775 Changes in allowance for doubtful accounts for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (83 ) $ (236 ) $ (263 ) Reversal — 148 3 Translation adjustments (11 ) 5 24 Ending balance $ (94 ) $ (83 ) $ (236 ) Changes in sales return reserves for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (1,107 ) $ (1,481 ) $ (787 ) Provision (40 ) (26 ) (1,586 ) Usage 626 361 851 Translation adjustments (107 ) 39 41 Ending balance $ (628 ) $ (1,107 ) $ (1,481 ) Changes in low yield compensation reserve for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (432 ) $ (480 ) $ (1,100 ) Reversal (Provision) (362 ) (29 ) 69 Usage 22 63 512 Translation adjustments (72 ) 14 39 Ending balance $ (844 ) $ (432 ) $ (480 ) 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 $18,973 thousand, $25,146 thousand and $57,185 for the years ended December 31, 2017, 2016 and 2015, respectively, and these sales resulted in pre-tax losses of $55 thousand, $78 thousand and $114 thousand for the years ended December 31, 2017, 2016 and 2015, respectively, which are included in selling, general and administrative expenses in the consolidated statements of operations. Net proceeds of the accounts receivable sale program are recognized in the consolidated statements of cash flows as part of operating cash flows. The Company uses receivable discount programs with certain customers. These discount arrangements allow the Company to accelerate collection of customers’ receivables. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | 4. Inventories Inventories as of December 31, 2017 and 2016 consist of the following (in thousands): Year Ended December 31, 2017 2016 Finished goods 13,737 7,867 Semi-finished goods and work-in-process 53,148 46,653 Raw materials 12,445 7,846 Materials in-transit 134 1,859 Less: inventory reserve (6,391 ) (7,177 ) Inventories, net $ 73,073 $ 57,048 Changes in inventory reserve for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (7,177 ) $ (16,033 ) $ (47,488 ) Change in reserve Inventory reserve charged to costs of sales (4,789 ) (7,646 ) (13,635 ) Sale of previously reserved inventory 3,784 4,985 13,932 (1,005 ) (2,661 ) 297 Write off 2,620 11,384 29,146 Translation adjustments (829 ) 133 2,012 Ending balance $ (6,391 ) $ (7,177 ) $ (16,033 ) Inventory reserve represents the Company’s best estimate in value lost due to excessive inventory level, physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. Inventory reserve relates to inventory items including finished goods, semi-finished goods and work-in-process. Write off of this reserve is recognized only when the related inventory has been disposed or scrapped. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | 5. Property, Plant and Equipment Property, plant and equipment as of December 31, 2017 and 2016 are comprised of the following (in thousands): December 31, 2017 2016 Buildings and related structures $ 69,958 $ 64,939 Machinery and equipment 308,713 255,618 Others 42,497 29,492 421,168 350,049 Less: accumulated depreciation (231,356 ) (184,521 ) Land 16,091 14,265 Property, plant and equipment, net $ 205,903 $ 179,793 Aggregate depreciation expenses totaled $27,498 thousand and $24,941 thousand for the years ended December 31, 2017 and 2016, respectively. In December 2017, a portion of the Company’s real estate was pledged as collateral in connection with a payment plan for taxes and penalties assessed by the Korean National Tax Service (the “KNTS”) as a result of a tax audit. For further description of the tax audit, see Note 17, “Income Taxes—Other Matter”. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 6. Intangible Assets Intangible assets as of December 31, 2017 and 2016 are comprised of the following (in thousands): December 31, 2017 Gross Accumulated Net Technology $ 20,194 $ (20,194 ) $ — Customer relationships 29,002 (29,002 ) — Intellectual property assets 11,319 (7,258 ) 4,061 Intangible assets, net $ 60,515 $ (56,454 ) $ 4,061 December 31, 2016 Gross Accumulated Net 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 expense for intangible assets totaled $ 648 thousand and $475 thousand for the years ended December 31, 2017 and 2016, respectively. The aggregate amortization expense of intangible assets for the next five years are estimated to be $751 thousand, $748 thousand, $727 thousand, $690 thousand and $582 thousand, for the years ended December 31, 2018, 2019, 2020, 2021 and 2022, respectively. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | 7. Accrued Expenses Accrued expenses as of December 31, 2017 and 2016 are comprised of the following (in thousands): December 31, 2017 2016 Payroll, benefits and related taxes, excluding severance benefits $ 16,724 $ 24,982 Withholding tax attributable to intercompany interest income 18,138 15,573 Interest on senior notes 8,268 6,831 Outside service fees 1,942 4,423 Others 6,674 8,556 Accrued expenses $ 51,746 $ 60,365 On December 10, 2015, it was determined that the Company was obligated to make an aggregate settlement payment of $23,500 thousand, which includes all attorneys’ fees, costs of administration and plaintiffs’ out-of-pocket expenses, lead plaintiff compensatory awards and disbursements. In connection with the securities class action complaints, the Company also settled with its insurers and obtained proceeds of $29,571 thousand in the first quarter of 2016, and disbursed the $23,500 thousand from the escrow account, recorded as restricted cash, in the third quarter of 2016. For more information on the accrued claim settlement, see Note 19, “Commitments and Contingencies”. Payroll, benefits and related taxes payable as of December 31, 2016 in the table above included unpaid other termination benefits under the voluntary resignation program of $1,392 thousand, the remaining balance of the $4,241 thousand total aggregate expense for such benefits accrued during the second quarter of 2016 and being paid out in equal monthly installments over the twelve month period which began in May 2016. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 8. Derivative Financial Instruments The Company’s Korean subsidiary from time to time has entered into 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 December 31, 2017 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement June 22, 2017 Zero cost collar $ 20,000 January 2018 to February 2018 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 ASC 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 December 31, 2017 and 2016 are as follows (in thousands): Derivatives designated as hedging instruments: December 31, 2017 2016 Asset Derivatives: Zero cost collars Other current assets $ 2,827 $ — Forward Other current assets $ 2,352 $ — Liability Derivatives: Zero cost collars Other current liabilities $ — $ 453 Offsetting of derivative assets as of December 31, 2017 is as follows (in thousands): As of December 31, 2017 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Asset Derivatives: Zero cost collars $ 2,827 $ — $ 2,827 $ — $ — $ 2,827 Forward $ 2,352 $ — $ 2,352 $ — $ — $ 2,352 Offsetting of derivative liabilities as of December 31, 2016 is as follows (in thousands): As of December 31, 2016 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Liability 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 years ended December 31, 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 (loss) Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Recognized in Statement of Operations on Derivatives (Ineffective Portion) 2017 2016 2017 2016 2017 2016 Zero cost collars $ 4,692 $ (1,032 ) Net sales $ 1,501 $ (637 ) Other income, net $ 606 $ (272 ) Forwards $ 3,044 $ — Net sales $ 500 $ — Other income, net $ (370 ) $ — Total $ $7,736 $ (1,032 ) $ 2,001 $ — $ 236 $ (272 ) As of December 31, 2017, the amount expected to be reclassified from accumulated other comprehensive income into income within the next twelve months is $5,299 thousand. The Company set aside $7,600 thousand and $2,500 thousand of cash deposits to the counterparty, Nomura Financial Investment (Korea) Co., Ltd. (“NFIK”) as required for the zero cost collar and forward contracts outstanding as of December 31, 2017 and 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 no such cash collateral was required as of December 31, 2017. As of December 31, 2016, $650 thousand of additional cash collateral was required and recorded as hedge collateral on the consolidated balance sheets. These outstanding zero cost collar 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. |
Product Warranties
Product Warranties | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Product Warranties | 9. Product Warranties Changes in accrued warranty liabilities for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ 466 $ 1,425 $ 2,973 Change in provision (224 ) (426 ) (648 ) Usage (65 ) (527 ) (758 ) Translation adjustments 39 (6 ) (142 ) Ending balance $ 216 $ 466 $ 1,425 |
Long-term Borrowings
Long-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | 10. Long-term Borrowings Long-term borrowings as of December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 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 (7,834 ) (3,918 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 303,416 $ 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 year ended December 31, 2017 was $5,349 thousand. 6.625% Senior Notes On July 18, 2013, the Company issued a $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 year ended December 31, 2017 and 2016 were $15,664 thousand and $15,613 thousand, respectively. |
Accrued Severance Benefits
Accrued Severance Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Accrued Severance Benefits | 11. 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 December 31, 2017, 98% of all employees of the Company were eligible for severance benefits. Changes in accrued severance benefits are as follows (in thousands): Year Ended December 31, 2017 2016 Beginning balance $ 130,144 $ 135,160 Provisions 24,373 14,432 Severance payments (21,506 ) (15,352 ) Translation adjustments 16,785 (4,096 ) 149,796 130,144 Less: Cumulative contributions to the National Pension Fund (259 ) (276 ) Group severance insurance plan (632 ) (643 ) Accrued severance benefits, net $ 148,905 $ 129,225 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 employees upon their normal retirement age (in thousands): Severance 2018 $ — 2019 610 2020 1,094 2021 1,573 2022 1,584 2023 – 2027 20,541 The above amounts were determined based on the non-executive employees’ current salary rates and the number of service years that will be accumulated upon their retirement dates. These amounts do not include amounts that might be paid to non-executive employees that will cease working with the Company before their normal retirement ages. The above table reflects an effect of a mandatory extension of retirement age in Korea from 57 to 60 under the Employment Promotion for the Aged Act effective from the beginning of 2016. |
Common Stock
Common Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Common Stock | 12. Common Stock Common stock par value $0.01 per share, was authorized in the amount of 150,000 thousand shares, of which 42,564 thousand shares were issued and 34,190 thousand shares were outstanding as of December 31, 2017. Changes in common stock for each period are as follows (in thousands): Year Ended December 31, 2017 2016 Shares Amount Shares Amount Common stock at the beginning of the period 35,048,338 $ 416 34,568,942 $ 411 Exercise of stock options 539,183 6 296,103 3 Settlement of restricted stock units 397,522 4 183,293 2 Acquisitions of treasury stock (1,795,444 ) — — — Total common stock outstanding at the end of the period 34,189,599 $ 426 35,048,338 $ 416 |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | 13. Equity Incentive Plans The Company adopted its 2009 Common Unit Plan, or the 2009 Plan, effective December 8, 2009, which is administered by the Compensation Committee of the Company’s Board of Directors (the “Compensation Committee”). The 2009 Plan terminated in connection with the Company’s initial public offering in March 2011, and no additional options or other equity awards may be granted under the 2009 Plan. However, options granted under the 2009 Plan prior to its termination will remain outstanding until they are either exercised or expire. The Company adopted its 2011 Equity Incentive Plan, or the 2011 Plan, in March 2010. The Company amended and restated the 2011 Plan in February 2011, and the Company’s stockholders approved the amendment in March 2011 to reflect that it became effective in 2011 in connection with the Company’s initial public offering in March 2011. The 2011 Plan was amended on October 23, 2017, to revise the clawback policy of the 2011 Plan. Awards may be granted under the 2011 Plan to the Company’s employees, officers, directors, or consultants or those of any present or future parent or subsidiary corporation or other affiliated entity. While the Company may grant incentive stock options only to employees, the Company may grant nonstatutory stock options, stock appreciation rights, restricted stock purchase rights or bonuses, restricted stock units, performance shares, performance units and cash-based awards or other stock-based awards to any eligible participant, subject to terms and conditions determined by the Compensation Committee. The term of options shall not exceed ten years from the date of grant. Restricted stock purchase rights shall be exercisable within a period established by the Compensation Committee, which shall in no event exceed thirty days from the effective date of the grant. As of December 31, 2017, an aggregate maximum of 7,975 thousand shares were authorized and 1,104 thousand shares were reserved for all future grants. Stock options and stock appreciation rights must have exercise prices at least equal to the fair market value of the stock at the time of their grant pursuant to the 2011 Plan. The requisite service period, or the period during which a grantee is required to provide service in exchange for option grants, coincides with the vesting period. Stock options typically vest over one to three years following grant. Restricted stock units granted under the 2011 Plan represent a right to receive shares of the Company’s common stock when the restricted stock unit vests. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares pursuant to a restricted stock unit, the consideration for which shall be services actually rendered to a participating company or for its benefit. Stock issued pursuant to any restricted stock unit may (but need not) be made subject to vesting conditions based upon the satisfaction of such service requirements, conditions, restrictions or performance criteria as shall be established by the Compensation Committee and set forth in the award agreement evidencing such award. Restricted stock units typically vest over one to three years following grant. The purchase price for shares issuable under each restricted stock purchase right shall be established by the Compensation Committee in its discretion. No monetary payment (other than applicable tax withholding) shall be required as a condition of receiving shares pursuant to a restricted stock bonus, the consideration for which shall be services actually rendered to a participating company or for its benefit. Stock issued pursuant to any restricted stock award may (but need not) be made subject to vesting conditions based upon the satisfaction of such service requirements, conditions, restrictions or performance criteria as shall be established by the Compensation Committee and set forth in the award agreement evidencing such award. During any period in which stock acquired pursuant to a restricted stock award remain subject to vesting conditions, such stock may not be sold, exchanged, transferred, pledged, assigned or otherwise disposed of other than pursuant to an ownership change event or transfer by will or the laws of descent and distribution. The grantee shall have all of the rights of a stockholder of the Company holding stock, including the right to vote such stock and to receive all dividends and other distributions paid with respect to such stock; provided, however, that if so determined by the Compensation Committee and provided by the award agreement, such dividends and distributions shall be subject to the same vesting conditions as the stock subject to the restricted stock award with respect to which such dividends or distributions were paid. If a grantee’s service terminates for any reason, whether voluntary or involuntary (including the grantee’s death or disability), then (a) the Company (or its assignee) has the option to repurchase for the purchase price paid by the grantee any stock acquired by the grantee pursuant to a restricted stock purchase right which remain subject to vesting conditions as of the date of the grantee’s termination of service and (b) the grantee shall forfeit to the Company any stock acquired by the grantee pursuant to a restricted stock bonus which remain subject to vesting conditions as of the date of the grantee’s termination of service. The Company has the right to assign at any time any repurchase right it may have, whether or not such right is then exercisable, to one or more persons as may be selected by the Company. The following summarizes restricted stock unit activities for the years ended December 31, 2017, 2016 and 2015. Number of Weighted Outstanding at January 1, 2015 — $ — Granted 265,332 7.68 Vested (129,962 ) 7.64 Outstanding at December 31, 2015 135,370 $ 7.72 Granted 505,689 5.71 Vested (101,240 ) 7.09 Forfeited (21,339 ) 6.24 Outstanding at December 31, 2016 518,480 $ 5.94 Granted 172,716 11.15 Vested (368,555 ) 5.72 Forfeited (830 ) 8.33 Outstanding at December 31, 2017 321,811 $ 8.99 Total compensation expenses recorded for the restricted stock units were $1,601 thousand, $2,292 thousand and $1,400 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $ 1,364 thousand of total unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted average future period of 0.8 years. Total fair value of restricted stock units vested were $2,107 thousand, $717 thousand and $993 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. The following summarizes stock option activities for the years ended December 31, 2017, 2016 and 2015. At the date of grant, all options had an exercise price not less than the fair value of common stock (aggregate intrinsic value in thousands): Number of Weighted Aggregate Weighted Outstanding at January 1, 2015 3,215,945 $ 9.60 $ 39,615 6.6 years Granted 802,193 7.92 — — Forfeited (325,765 ) 9.88 — — Exercised (512,474 ) 6.70 692 — Outstanding at December 31, 2015 3,179,899 $ 9.61 $ — 6.7 years Vested and expected to vest at December 31, 2015 3,155,828 9.62 — 6.7 years Exercisable at December 31, 2015 2,547,902 9.63 — 6.0 years Outstanding at January 1, 2016 3,179,899 $ 9.61 $ — 6.7 years Granted 827,406 6.04 — — Forfeited (282,537 ) 7.67 — — Exercised (296,103 ) 5.85 806 — Outstanding at December 31, 2016 3,428,665 $ 9.23 $ 525 6.7 years Vested and expected to vest at December 31, 2016 3,389,763 9.27 508 6.7 years Exercisable at December 31, 2016 2,531,243 10.11 236 5.9 years Outstanding at January 1, 2017 3,428,665 $ 9.23 $ 525 6.7 years Granted 70,865 10.43 — — Forfeited (88,443 ) 12.77 — — Exercised (539,183 ) 6.94 1,540 — Outstanding at December 31, 2017 2,871,904 $ 9.59 $ 6,073 6.2 years Vested and expected to vest at December 31, 2017 2,865,475 9.59 6,050 6.2 years Exercisable at December 31, 2017 2,395,979 10.11 4,603 5.7 years Total compensation expenses recorded for the stock options were $734 thousand, $1,551 thousand and $1,368 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $339 thousand of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average future period of 0.6 years. Total weighted average grant-date fair value of vested options was $794 thousand, $1,011 thousand and $1,361 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. The Company utilizes the Black-Scholes option-pricing model to measure the fair value of each option grant. The following summarizes the grant-date fair value of options granted for the years ended December 31, 2017, 2016 and 2015 and assumptions used in the Black-Scholes option-pricing model on a weighted average basis. For the year ended December 31, 2017, the expected volatility was estimated using historical volatility of the Company’s share prices. For the years ended December 31, 2016 and 2015, it was based on historical volatility of share prices of similar public entities: Year Ended December 31, 2017 2016 2015 Grant-date fair value of option $ 5.02 $ 1.54 $ 1.67 Expected term 2.5 Years 2.7 Years 2.4 Years Risk-free interest rate 1.2 % 1.0 % 0.8 % Expected volatility 81.7 % 36.8 % 33.8 % Expected dividends — — — The number and weighted average grant-date fair value of the unvested stock options are as follows: Year Ended December 31, 2017 2016 2015 Number Weighted Number Weighted Number Weighted Unvested options at the beginning of the period 897,421 $ 1.72 631,997 $ 2.40 455,543 $ 4.18 Granted options during the period 70,865 5.02 827,406 1.54 802,193 1.67 Vested options during the period (455,301 ) 1.74 (446,570 ) 2.26 (532,682 ) 2.56 Forfeited options during the period (19,031 ) 1.77 (85,934 ) 1.88 (92,959 ) 4.01 Exercised options during the period (18,029 ) 1.59 (29,478 ) 1.24 (98 ) 3.08 Unvested options at the end of the period 475,925 $ 2.19 897,421 $ 1.72 631,997 $ 2.40 |
Restructuring and Other Charges
Restructuring and Other Charges (Gain), Net | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Other Charges (Gain), Net | 14. 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 fabrication facility in Cheongju, South Korea (the “6-inch fab”) and became vacant upon the closure of the fabrication facility in February 2016. As of December 31, 2015, the building was fully impaired. The Company received proceeds of $18,204 thousand, including a $1,655 thousand value-added tax, for the sale of the building in December 2016. As the Company was obligated to perform certain removal construction work, it recorded the $18,204 thousand proceeds as restricted cash and $16,549 thousand as deposits received in its consolidated balance sheets as of December 31, 2016. During the first quarter of 2017, the Company completed all removal construction work necessary to transfer the title of the building, and the $18,204 thousand of restricted cash was fully released. Accordingly, the Company recorded $16,635 thousand as restructuring gain in the consolidated statements of operations for the three months ended March 31, 2017. 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 machineries in its closed 6-inch fab and recognized the $7,785 thousand of restructuring gain from the related deposit of $8,165 thousand received as of December 31, 2015, net of certain direct selling costs. |
Early Termination Charges
Early Termination Charges | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Early Termination Charges | 15. 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 $11,107 thousand and $2,262 thousand 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. |
Foreign Currency Gain (Loss), N
Foreign Currency Gain (Loss), Net | 12 Months Ended |
Dec. 31, 2017 | |
Foreign Currency [Abstract] | |
Foreign Currency Gain (Loss), Net | 16. Foreign Currency Gain (Loss), Net Net foreign currency gain or loss includes non-cash translation gain or loss associated with intercompany balances. A substantial portion of the Company’s net foreign currency gain or loss is non-cash translation gain or loss associated with intercompany long-term loans to our Korean subsidiary. The loans are denominated in U.S. dollars and are affected by changes in the exchange rate between the Korean won and the U.S. dollar. As of December 31, 2017, 2016 and 2015, the outstanding intercompany loan balances including accrued interest between the Korean subsidiary and the Dutch subsidiary were $677,267 thousand, $598,212 thousand and $591,388 thousand, respectively. The Korean won to U.S. dollar exchange rates were 1,071.4:1, 1,208.5:1 and 1,172.0:1 using the first base rate as of December 31, 2017, 2016 and 2015, respectively, as quoted by the KEB Hana Bank. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes The Company’s income tax expenses are composed of domestic and foreign income taxes depending on the relevant tax jurisdictions. Domestic income (loss) before taxes and income tax expenses are generated or incurred in the United States, where the parent company resides. The components of income tax expense are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Income (loss) before income taxes Domestic $ 27,461 $ (1,738 ) $ 32,903 Foreign 58,630 (24,133 ) (132,857 ) $ 86,091 $ (25,871 ) $ (99,954 ) Current income taxes expense (benefit) Domestic $ (359 ) $ (6 ) $ 25 Foreign 3,680 3,386 (14,301 ) Uncertain tax position liability (domestic) (476 ) 12 10 Uncertain tax position liability (foreign) (1,635 ) 339 (1,220 ) 1,210 3,731 (15,486 ) Deferred income taxes expense (benefit) Foreign (55 ) 13 399 Total income tax expense (benefit) $ 1,155 $ 3,744 $ (15,087 ) Effective tax rate 1.3 % (14.5 )% 15.1 % The differences between the annual effective tax rates and the U.S. federal statutory rate of 35.0% primarily result from the non-income based withholding tax attributable to intercompany interest income of the Company’s Dutch subsidiary, application of lower tax rates associated with certain earnings from the Company’s operations outside the U.S., the parent Company’s interest income, which is non-taxable for US tax purposes and the change of deferred tax assets and valuation allowance. The statutory income tax rate of the Company’s Korean operating subsidiary was approximately 24.2% in 2017, 2016 and 2015. The decrease in income tax expense in 2017 was primarily attributable to a decrease in the Company’s uncertain tax positions. The significant increase in income tax expense in 2016 is related to the reversal of withholding tax payable with respect to the waiver of the accrued interest on the loans granted to our Korean subsidiary by our Dutch subsidiary in 2015. The Company’s Korean and Dutch subsidiaries agreed that the Company’s Dutch subsidiary waived and released a partial amount of unpaid interest of $174 million on its intercompany loans granted to the Company’s Korean subsidiary in order to decrease the cumulative losses of the Company’s Korean subsidiary to enhance the subsidiary’s credit standing under the local banking rules. This transaction created a taxable income for the Company’s Korean subsidiary but did not result in a liability because of the utilization of expired loss carryforwards, which is deductible only against gains from cancellation of debt. The loss was not tax deductible for the Company’s Dutch subsidiary. This transaction also resulted in taxable loss for the Company’s Luxemburg subsidiary and this tax benefit was offset by an increase in the change in valuation allowance. In connection with the waiver of unpaid interest, the related withholding tax was reversed, resulting in the recognition of income tax benefit of $17.8 million as of December 31, 2015. The provision for domestic and foreign income taxes incurred is different from the amount calculated by applying the statutory tax rate to the net income before income taxes. The significant items causing this difference are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Provision computed at statutory rate $ 30,223 $ (9,055 ) $ (34,984 ) Change in statutory tax rates 13,438 — — Difference in foreign tax rates (12,344 ) 1,995 24,359 Permanent differences Derivative assets adjustment 1,937 (149 ) (143 ) TPECs, hybrid and other interest (7,526 ) (10,353 ) (27,273 ) Permanent impairment — — (62,334 ) Thin capitalization 1,888 2,120 2,457 Permanent foreign currency gain (loss) (838 ) (54 ) 11,575 Penalty 4,001 689 — Non-deductible bad debt expense — — 89 Other permanent differences 633 50 (69 ) Withholding tax 3,339 3,092 (14,457 ) Foreign exchange rate adjustment 16,075 (1,838 ) (8,954 ) Change in valuation allowance (56,744 ) 10,095 95,757 Tax credits claimed (659 ) (706 ) (875 ) Tax credits expired 2,638 1,578 — Uncertain tax positions liability (2,111 ) 351 (1,211 ) Change in net operating loss carry-forwards 6,878 — — Others 327 5,929 976 Income tax expense (benefit) $ 1,155 $ 3,744 $ (15,087 ) The tax expense of $13,438 thousand in 2017 due to change in statutory tax rates was primarily related to a remeasurement of deferred tax assets and liabilities using the reduced U.S. federal statutory rate of 21.0% from 35.0% effective January 1, 2018. For further description of the rate change, see “United States Tax Reform” below. The $4,001 thousand tax impact of the penalty in 2017 was related to the $3,000 thousand civil penalty imposed by the SEC as discussed in Note 19, “Commitments and Contingencies—SEC Enforcement Staff Review”, and certain taxes and penalties assessed by the KNTS as a result of a tax audit as discussed in “Other Matter” below. The change in net operating loss carry-forwards of $6,878 thousand in 2017 was attributable to the Company’s revised tax positions, which primarily related to periods with respect to which the Company previously restated its financial statements as a result of the independent investigation commenced by the Company’s Audit Committee in January 2014 (the “Restatement”). The permanent differences above include non-taxable Tracking Preferred Equity Certificates (TPECs) and interest income from other financial instruments for US tax purposes and non-deductible interest expense according to the thin capitalization rule for Korean tax purposes. The permanent impairment of $62,334 thousand in 2015 was related to the loss recognized by the Company’s Luxemburg subsidiary in connection with the cancellation of debt as described above, which was not recognized for US tax purposes. A summary of the composition of net deferred income tax assets (liabilities) as of December 31, 2017 and 2016 are as follows (in thousands): Year-Ended December 31, 2017 2016 Deferred tax assets Inventory reserves $ 1,630 $ 1,822 Derivative assets (1,253 ) 110 Accrued expenses 2,826 2,803 Product warranties 52 113 Other reserves 356 372 Property, plant and equipment 9,759 13,314 Intangible assets 35 103 Accumulated severance benefits 36,245 31,478 Foreign currency translation losses 20,067 53,130 NOL carry-forwards 175,543 167,590 Tax credit 20,583 20,249 Other long-term payable 1,801 2,079 Others 3,546 4,885 Total deferred tax assets 271,190 298,048 Less: Valuation allowance (251,132 ) (281,473 ) 20,058 16,575 Deferred tax liabilities Foreign currency translation gains 18,187 14,338 Prepaid expense 1,464 1,644 Others 143 410 Total deferred tax liabilities 19,794 16,392 Net deferred tax assets $ 264 $ 183 Reported as Current deferred income tax assets $ — $ 37 Non-current deferred income tax assets $ 264 $ 193 Current deferred income tax liabilities $ — $ (46 ) Non-current deferred income tax liabilities $ — $ (1 ) The valuation allowances at December 31, 2017 and 2016 are primarily attributable to deferred tax assets for the uncertainty in taxable income at certain of the Company’s foreign subsidiaries, including its Korean operating subsidiary. Changes in valuation allowance for deferred tax assets for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ 281,473 $ 279,867 $ 194,739 Charged to expense (54,816 ) 10,095 95,757 NOL/tax credit claimed/expired (1,928 ) (872 ) (1,197 ) Translation adjustments 26,403 (7,617 ) (9,432 ) Ending balance $ 251,132 $ 281,473 $ 279,867 The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires the Company to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed. Realization of the future tax benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate future taxable income within the period during which the temporary differences reverse, the outlook for the economic environment in which the Company operates and the overall future industry outlook. As of December 31, 2017, 2016 and 2015, the Company had net deferred tax assets of $264 thousand, $183 thousand and $171 thousand, respectively, related to the Company’s Japanese subsidiary. As of December 31, 2017, 2016 and 2015, the Company recorded a valuation allowance of $251,132 thousand, $281,473 thousand and $279,867 thousand on its deferred tax assets related to temporary differences, net operating loss carry-forwards and tax credits of domestic and foreign subsidiaries. The Company recorded these valuation allowances on deferred tax assets based on its assessment that the negative evidence of expected losses in early future years outweighs the positive evidence of historical income. As of December 31, 2017, the Company had approximately $770,233 thousand of net operating loss carry-forwards available to offset future taxable income, of which $281,383 thousand is associated with the Company’s Korean subsidiary, which expires in part at various dates through 2026. The net operating loss of $310,975 thousand associated with the Company’s Luxembourg subsidiary is mainly attributable to certain expenses incurred in connection with its shareholding in the Company’s Dutch subsidiary. Although this net operating loss amount is carried forward indefinitely, it will be recaptured on future capital gain. The remaining net operating loss mainly relates to the US parent company and its domestic subsidiary, which expires in part at various dates through 2037. The Company utilized net operating loss of $417 thousand, $279 thousand and $121 thousand, for the years ended December 31, 2017, 2016 and 2015, respectively. The Company also has Korean, Dutch and U.S. tax credit carry-forwards of approximately $5,639 thousand, $14,936 thousand and $9 thousand, respectively, as of December 31, 2017. The Korean tax credits expire at various dates starting from 2018 to 2022, and the Dutch tax credits are carried forward to be used for an indefinite period of time. United States Tax Reform On December 22, 2017, H.R. 1, originally known as the Tax Cuts and Jobs Act in the U.S. was enacted (the “Tax Reform”). The Tax Reform reduces the U.S. federal statutory rate to 21.0% from 35.0% effective January 1, 2018. The Tax Reform contains several key provisions that might affect the Company’s assessment on its deferred taxes as of December 31, 2017, which include the remeasurement of deferred taxes, recognition of liabilities for taxes on mandatory deemed repatriation and certain other foreign income, and reassessment of the realizability of deferred tax assets. ASC 740 requires that the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. As of December 31, 2017, the Company remeasured its deferred tax assets and liabilities at the reduced rate of 21.0%, assessed the realizability of remeasured deferred tax assets, which resulted in a reduction of its net deferred tax assets by $13,438 thousand. However, there was no net impact on the Company’s income tax expense due to a full allowance against the deferred tax assets. In addition, the Company recorded a tax benefit of $381 thousand due to certain minimum tax amounts being refundable under the Tax Reform. The Company is currently evaluating the newly enacted rule relating to the mandatory deemed repatriation tax. Uncertainty in Income Taxes The Company and its subsidiaries file income tax returns in Korea, Japan, Taiwan, the U.S. and in various other jurisdictions. The Company is subject to income- or non-income tax examinations by tax authorities of these jurisdictions for all open tax years. A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of each period is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Unrecognized tax benefits, balance at the beginning $ 2,459 $ 2,139 $ 3,495 Additions based on tax positions related to the current year 10 371 351 Additions (reductions) for tax positions of prior years (676 ) 317 (135 ) Lapse of statute of limitations (735 ) (670 ) (1,318 ) Additions (reductions) of interest and penalties (712 ) 334 (108 ) Translation adjustments 137 (32 ) (146 ) Unrecognized tax benefits, balance at the ending $ 483 $ 2,459 $ 2,139 For the year ended December 31, 2017, the Company recorded $676 thousand income tax benefit by reversing a withholding tax payable related to interests on intercompany balances as a result of the tax audit as discussed in “Other Matter” below. The Company also recorded a reduction of $712 thousand of interest and penalties in 2017, primarily due to a change in certain tax regulations at the Company’s subsidiary in Taiwan. Total interest and penalties accrued as of December 31, 2017, 2016 and 2015 were $8 thousand, $691 thousand and $359 thousand, respectively. A tabular reconciliation of the total amounts of uncertain tax positions at the beginning and end of each period is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Uncertain tax positions, balance at the beginning $ 11,894 $ 13,330 $ 14,969 Additions based on tax positions related to the current year (366 ) 942 1,789 Additions (reductions) for tax positions of prior years (8,923 ) 317 — Lapse of statute of limitations (2,218 ) (2,380 ) (2,142 ) Translation adjustments 675 (315 ) (1,287 ) Uncertain tax positions, balance at the ending $ 1,062 $ 11,894 $ 13,330 Other Matter In September 2017, the Company’s Korean subsidiary was notified that the KNTS would be examining its income- and non-income-based taxes for its 2012 to 2014 tax years. The KNTS conducted its audit, primarily focusing on non-income-based VAT transactions associated with the Restatement periods. As a result, the aggregate tax and penalty assessment by the KNTS was $6,030 thousand, of which $3,336 thousand had already been accrued by the Company in its financial statements in connection with the Restatement filed in 2015. Such amount also included $548 thousand related to employee withholding amounts and associated penalties, and to the extent any such tax obligation was that of the Company’s Korean subsidiary’s employees, the Company expects to seek reimbursement of the applicable amounts from those employees. In addition, KNTS assessed an administrative fine of $2,034 thousand in connection with the above-described tax audit. During the fourth quarter of 2017, the Company recorded the $4,179 thousand related to this additional tax assessment and associated penalties and administrative fine as selling, general and administrative expenses in its consolidated statements of operations for the year ended December 31, 2017 and recorded the $548 thousand related to employee withholding amounts as other receivables in our consolidated balance sheets as of December 31, 2017 as the Company expects to seek reimbursement of the applicable amounts from those employees. |
Geographic and Segment Informat
Geographic and Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic and Segment Information | 18. Geographic and Segment Information The Company had previously reported its results of operations under one operating segment. During the second quarter of 2015, organizational changes were made to (i) realign the Company’s businesses and organizational structure and (ii) streamline and consolidate certain business processes to achieve greater operating efficiencies. In furtherance of these objectives, the Company combined its Display Solutions and Power Solutions business lines into a new segment called Standard Products Group. Beginning in the second quarter of 2015, the Company began reporting its financial results in two operating segments: Semiconductor Manufacturing Services and Standard Products Group. During the third quarter of 2015, the Company changed the name of its Semiconductor Manufacturing Services segment to Foundry Services 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 two newly established operating segments were managed prospectively and all prior period amounts related to the segment change have been retrospectively reclassified to conform to the new presentation. The following sets forth information relating to the operating segments (in thousands): Year Ended December 31, 2017 2016 2015 Net Sales Foundry Services Group $ 320,089 $ 273,961 $ 290,775 Standard Products Group Display Solutions 209,539 281,967 207,480 Power Solutions 149,836 131,468 134,814 Total Standard Products Group 359,375 413,435 342,294 All other 208 573 643 Total net sales $ 679,672 $ 687,969 $ 633,712 Year Ended December 31, 2017 2016 2015 Gross Profit Foundry Services Group $ 95,458 $ 69,412 $ 66,175 Standard Products Group 92,227 87,194 68,094 All other 208 (380 ) 595 Total gross profit $ 187,893 $ 156,226 $ 134,864 The following is a summary of net sales by geographic region, based on the location to which the products are billed (in thousands): Year Ended December 31, 2017 2016 2015 Korea $ 279,883 $ 219,618 $ 241,715 Asia Pacific (other than Korea) 322,595 391,875 316,562 U.S.A. 35,089 33,201 51,164 Europe 41,109 42,274 23,461 Others 996 1,001 810 Total $ 679,672 $ 687,969 $ 633,712 Net sales from the Company’s top ten largest customers accounted for 57%, 64% and 64% for the years ended December 31, 2017, 2016 and 2015, respectively. For the year ended December 31, 2017, the Company had one customer that represented 15.6% of its net sales. For the year ended December 31, 2016, the Company had two customers that represented 23.5% and 11.4% of its net sales, respectively. For the year ended December 31, 2015, the Company had two customers that represented 15.2% and 11.0% of its net sales, respectively. 97% of the Company’s property, plant and equipment are located in Korea as of December 31, 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 19. Commitments and Contingencies Operating Agreements with SK Hynix In connection with the acquisition of the non-memory semiconductor business from SK Hynix on October 4, 2004 (the “Original Acquisition”), the Company entered into several agreements with SK Hynix, including a non-exclusive cross license that provides the Company with access to certain of SK Hynix’s intellectual property for use in the manufacture and sale of non-memory semiconductor products. The Company also agreed to provide certain utilities and infrastructure support services to SK Hynix. Upon the closing of the Original Acquisition, the Company’s Korean subsidiary and SK Hynix also entered into lease agreements under which the Company’s Korean subsidiary leases space to SK Hynix in several buildings, primarily warehouses and utility facilities, in Cheongju, Korea. These leases are generally for an initial term of 20 years plus an indefinite number of renewal terms of 10 years each. Each of the leases is cancelable upon 90 days’ notice by the lessee. The Company also leases certain land from SK Hynix located in Cheongju, Korea. The term of this lease is indefinite unless otherwise agreed by the parties, and as long as the buildings remain on the lease site and are owned and used by the Company for permitted uses. Operating Leases The Company leases land, office space and equipment under various operating lease agreements with various terms. Rental expenses were approximately $7,498 thousand, $8,898 thousand and $8,194 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. As of December 31, 2017, the minimum aggregate rental payments due under non-cancelable lease contracts are as follows (in thousands): 2018 $ 6,724 2019 3,764 2020 3,459 2021 1,472 2022 1,316 2023 and thereafter 15,448 $ 32,183 Long-term Purchase Agreements The Company purchases raw materials from a variety of vendors. During the normal course of business, in order to manage manufacturing lead times and help assure adequate supply, the Company from time to time may enter into multi-year purchase agreements, which specify future quantities and pricing of materials to be supplied by the vendors. The Company reviews the terms of the long-term supply agreements and assesses the need for any accrual for estimated losses, such as lower of cost or net realizable value that will not be recovered by future sales prices. No such accrual was required as of December 31, 2017. 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 the 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 On March 12, 2014, a purported class action was filed against the Company and certain of the Company’s now-former officers. On April 21, 2015, a related purported class action lawsuit (Okla. Police Pension & Retirement Sys. v. MagnaChip Semiconductor Corp., et al., No. 3:15-cv-01797) was filed against the Company, certain of the Company’s current directors and former and now-former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings. On June 15, 2015, these two class action lawsuits were consolidated. On June 26, 2015, an amended complaint was filed in the consolidated action, against the Company, certain of the Company’s current directors and former officers, a shareholder of the Company, and certain financial firms that acted as underwriters of the Company’s public stock offerings on behalf of a putative class consisting of all persons other than the defendants who purchased or acquired the Company’s securities between February 1, 2012 and February 12, 2015 and a putative subclass consisting of all purchasers On December 10, 2015, the Company and certain of its current and former officers and directors entered into a Memorandum of Understanding with the plaintiffs’ representatives to memorialize an agreement in principle to settle the consolidated securities class action lawsuit, Thomas, et al. v. MagnaChip Semiconductor Corp. et al., Civil Action No. 3:14-CV-01160-JST, pending in the United States District Court for the Northern District of California (the “Class Action Litigation”). On February 5, 2016, the plaintiffs in the consolidated securities class action filed a motion for preliminary approval of the settlement, as well as the stipulation and agreement of settlement and related exhibits. The stipulation and agreement of settlement provided that all claims asserted against all defendants in the Class Action Litigation except for Avenue Capital Management II, L.P. would be released. The stipulation and agreement of settlement also provided for an aggregate settlement payment by the Company of $23,500 thousand, which would include all attorneys’ fees, costs of administration and plaintiffs’ out-of-pocket expenses, lead plaintiff compensatory awards and disbursements. The settlement also included the dismissal of all claims against the Company and the named individuals in the Class Action Litigation without any liability or wrongdoing attributed to them. On April 13, 2016, the plaintiffs filed a renewed motion for preliminary approval of the settlement. On July 18, 2016, the court granted plaintiffs’ renewed motion for preliminary approval of the settlement. On October 17, 2016, plaintiffs filed their motions for final approval of the settlement and plan of allocation of the settlement and for an award of attorneys’ fees, reimbursement of litigation expenses, and reimbursement of the costs and expenses of Lead Plaintiff Keith Thomas. On December 1, 2016, following a hearing on November 21, 2016 and an order dated November 21, 2016, the court entered a supplemental order and final judgment (the “Judgment”) granting final approval of the settlement. The Judgment was not appealed within the applicable appeals period (on or before January 3, 2017). The settlement therefore became effective after the expiration of the appeals period. The settlement was fully funded by insurance proceeds. 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. The Company recorded $29,571 thousand of the proceeds from the insurers as other receivables in the consolidated balance sheets as of December 31, 2015 and as a deduction of the selling, general and administrative expenses in the consolidated statements of operations for the year ended December 31, 2015. The proceeds from the insurers of $29,571 thousand were deposited into the Company’s escrow account during the first quarter of 2016 and the Company reclassified the $29,571 thousand deposits recorded in other receivables into restricted cash. During the third quarter of 2016, the Company disbursed the aggregate settlement payment of $23,500 thousand after the court granted plaintiffs’ renewed motion for preliminary approval of the settlement in July 2016. Upon the settlement payment, $6,114 thousand of the insurance proceeds remained in the Company’s escrow account. For subsequent treatment of the escrow amount, see “Shareholder Derivative Complaints” below. Shareholder Derivative Complaints A shareholder derivative action, styled Hemmingson et al. v. Elkins et al. On June 1, 2015, a shareholder derivative action was filed in the Superior Court of the State of California, Santa Clara County styled Bushansky v. Norby, et al. On January 22, 2016, the Company and the plaintiffs in the Hemmingson Bushansky On February 22, 2016, the plaintiffs filed an unopposed motion for preliminary approval of the proposed derivative settlement. 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 “Shareholder Derivative Judgment”) granting final approval of the proposed settlement and awarding plaintiffs’ counsel $750 thousand for attorneys’ fees and litigation expenses. The Shareholder Derivative 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 ($2,250 thousand plus applicable interest) 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. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. Related Party Transactions Engaged Capital Flagship Master Fund, LP (“Engaged Capital Flagship Master Fund”), a fund for whom Engaged Capital, LLC (“Engaged Capital”) serves as investment advisor, and a managed account for which Engaged Capital serves as investment adviser (the “Engaged Capital Account”) purchased $4,496,288 and $503,712 principal amount of the Exchangeable Notes in the Exchangeable Notes Offering, respectively. Based on information contained in an Amendment No. 6 to Schedule 13D filed with the SEC on January 13, 2017 by Engaged Capital and certain affiliates, as of March 31, 2017, funds managed by Engaged Capital beneficially owned approximately 11.9% of the Company’s common stock (subject to certain blocker provisions in the Exchangeable Notes that may limit conversion to an aggregate of 9.99% of the Company’s common stock). In connection with the Exchangeable Notes Offering, the Company also repurchased 347,850 and 52,150 shares of the Company’s common stock from Engaged Capital Flagship Master Fund and the Engaged Capital Account, respectively, at an aggregate purchase price of $2,209 thousand and $331 thousand, respectively. On November 7, 2017, Engaged Capital filed with the SEC a Schedule 13D/A reporting beneficial ownership of less than 5% of the Company’s common stock. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 21. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the following at December 31, 2017 and 2016, respectively (in thousands): Year Ended December 31, 2017 2016 Foreign currency translation adjustments $ (38,413 ) $ 14,460 Derivative adjustments 5,299 (436 ) Total $ (33,114 ) $ 14,024 Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 Foreign currency translation adjustments Derivative adjustments Unrealized gain on investments Total Beginning balance $ 14,460 $ (436 ) $ — $ 14,024 Other comprehensive income (loss) before reclassifications (52,873 ) 7,736 — (45,137 ) Amounts reclassified from accumulated other comprehensive income — (2,001 ) — (2,001 ) Net current-period other comprehensive income (loss) (52,873 ) 5,735 — (47,138 ) Ending balance $ (38,413 ) $ 5,299 $ — $ (33,114 ) Year Ended December 31, 2016 Foreign currency translation adjustments Derivative adjustments Unrealized gain on investments Total Beginning balance $ (190 ) $ (41 ) $ — $ (231 ) Other comprehensive income (loss) before reclassifications 14,650 (1,032 ) — 13,618 Amounts reclassified from accumulated other comprehensive loss — 637 — 637 Net current-period other comprehensive income (loss) 14,650 (395 ) — 14,255 Ending balance $ 14,460 $ (436 ) $ — $ 14,024 Year Ended December 31, 2015 Foreign currency translation adjustments Derivative adjustments Unrealized gain on investments Total Beginning balance $ (35,551 ) $ 485 $ — $ (35,066 ) Other comprehensive income (loss) before reclassifications 35,361 (3,748 ) — 31,613 Amounts reclassified from accumulated other comprehensive loss — 3,222 — 3,222 Net current-period other comprehensive income (loss) 35,361 (526 ) — 34,835 Ending balance $ (190 ) $ (41 ) $ — $ (231 ) |
Earnings (Loss) per Share
Earnings (Loss) per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | 22. Earnings (Loss) per Share The following table illustrates the computation of basic and diluted loss per common share: Year Ended December 31, 2017 2016 2015 (In thousands of US dollars, except share data) Basic Earnings per Share Net income (loss) $ 84,936 $ (29,615 ) $ (84,867 ) Basic weighted average common stock outstanding 33,943,264 34,833,967 34,380,517 Basic earnings (loss) per share $ 2.50 $ (0.85 ) $ (2.47 ) Diluted Earnings per Share Net income (loss) $ 84,936 $ (29,615 ) $ (84,867 ) Add back: Interest expense on Exchangeable Notes 5,349 — — Net income (loss) allocated to common stockholders $ 90,285 $ (29,615 ) $ (84,867 ) Basic weighted average common stock outstanding 33,943,264 34,833,967 34,380,517 Net effect of dilutive equity awards 821,664 — — Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock 9,990,209 — — Diluted weighted average common stock outstanding 44,755,137 34,833,967 34,380,517 Diluted earnings (loss) per share $ 2.02 $ (0.85 ) $ (2.47 ) The following outstanding instruments were excluded from the computation of diluted loss per share, as they would have an anti-dilutive effect on the calculation: Year Ended December 31, 2017 2016 2015 Options 835,572 3,428,665 3,179,899 Restricted Stock Units — 518,480 135,370 |
Unaudited Quarterly Financial R
Unaudited Quarterly Financial Results | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Results | 23. Unaudited Quarterly Financial Results The following tables present selected unaudited Consolidated Statements of Operations for each quarter of the years ended December 31, 2017 and 2016. Fiscal Year 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands of US dollars, except share data) Net sales $ 161,710 $ 166,685 $ 176,697 $ 174,580 Gross profit 41,570 46,662 50,310 49,351 Operating income 6,367 9,742 15,490 7,637 Net income (loss) $ 43,738 $ (8,059 ) $ 5,604 $ 43,653 Earnings (loss) per share: Basic $ 1.30 $ (0.24 ) $ 0.16 $ 1.28 Diluted $ 1.05 $ (0.24 ) $ 0.15 $ 0.99 Weighted average common stock outstanding: Basic 33,662,297 33,952,574 34,103,029 34,176,812 Diluted 42,892,044 33,952,574 45,542,418 45,573,889 Fiscal Year 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands of US dollars, except share data) Net sales $ 148,105 $ 167,106 $ 192,296 $ 180,462 Gross profit 34,249 36,749 39,139 46,089 Operating income (loss) 4,267 (7,377 ) 618 5,229 Net income (loss) $ 8,125 $ (17,816 ) $ 29,866 $ (49,790 ) Earnings (loss) per share: Basic $ 0.23 $ (0.51 ) $ 0.86 $ (1.42 ) Diluted $ 0.23 $ (0.51 ) $ 0.85 $ (1.42 ) Weighted average common stock outstanding: Basic 34,698,904 34,716,081 34,849,805 35,068,330 Diluted 34,918,568 34,716,081 35,302,706 35,068,330 |
Business, Basis of Presentati31
Business, Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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 memory and Radio Frequency (“RF”) applications. The Company’s business is comprised of two operating segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides specialty analog and mixed-signal foundry services mainly for fabless and Integrated Device Manufacturer (“IDM”) semiconductor companies that primarily serve communications, IoT, consumer, industrial and automotive applications. The Company’s Standard Products Group is comprised of two business lines: Display Solutions and Power Solutions. The Company’s Display Solutions products provide panel display solutions to major suppliers of large and small rigid and flexible panel displays, and mobile, automotive applications and home appliances. The Company’s Power Solutions products include discrete and integrated circuit solutions for power management in communications, consumer and industrial applications. |
Basis of Presentation | Basis of Presentation The consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“US GAAP”). Significant accounting policies followed by the Company in the preparation of the accompanying consolidated financial statements are summarized below. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company including its wholly-owned subsidiaries. All intercompany transactions and balances are eliminated in consolidation. |
Reclassifications | Reclassifications Certain charges related to the closure of the Company’s 6-inch fab and headcount reduction during 2016, previously included in selling, general and administrative expenses in the consolidated statements of operations, have been reclassified to restructuring and other charges (gain), net and early termination charges, respectively, to conform to the Company’s current year presentation. These reclassifications had no impact on the Company’s net income (loss), the consolidated balance sheets, the consolidated statements of comprehensive income (loss) and the consolidated statements of cash flows as previously reported. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with US GAAP requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenue and expenses. Such estimates include the valuation of accounts receivable, inventories, stock based compensation, property plant and equipment, intangible assets, other long-lived assets, long-term employee benefits, contingencies liabilities, estimated future cash flows and other assumptions used in long-lived asset impairment tests and calculation of income taxes and deferred tax valuation allowances, and assumptions used in the calculation of sales incentives, among others. Although these estimates and assumptions are based on management’s best knowledge of current events and actions that the Company may undertake in the future, actual results may be significantly different from the estimates. Changes in those estimates resulting from continuing changes in the economic environment will be reflected in the financial statements in future periods. |
Foreign Currency Translation | Foreign Currency Translation The Company has assessed in accordance with Accounting Standards Codification (ASC) 830, “Foreign Currency Matters” (“ASC 830”), the functional currency of each of its subsidiaries in Luxembourg and the Netherlands and has designated the U.S. dollar to be their respective functional currencies. The Korean Won is the functional currency for the Company’s Korean subsidiary, which is the primary operating subsidiary of the Company. The Company and its other subsidiaries are utilizing their local currencies as their functional currencies. The financial statements of the subsidiaries in functional currencies other than the U.S. dollar are translated into the U.S. dollar in accordance with ASC 830. All the assets and liabilities are translated to the U.S. dollar at the end-of-period exchange rates. Capital accounts are determined to be of a permanent nature and are therefore translated using historical exchange rates. Revenues and expenses are translated using average exchange rates for the respective periods. Foreign currency translation adjustments arising from differences in exchange rates from period to period are included in the foreign currency translation adjustment account in accumulated other comprehensive income (loss) of stockholders’ equity. Gains and losses due to transactions in currencies other than the functional currency are included as a component of other income, net in the statement of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an original maturity date of three months or less when purchased. |
Accounts Receivable Reserves | Accounts Receivable Reserves An allowance for doubtful accounts is provided based on the aggregate estimated uncollectability of the Company’s accounts receivable. The Company also records an estimate for sales returns, included within accounts receivable, net, based on the historical experience of the amount of goods that will be returned and refunded or replaced. In addition, the Company also includes in accounts receivable, an allowance for additional products that may have to be provided, free of charge, to compensate customers for products that do not meet previously agreed yield criteria, which the Company refers to as the low yield compensation reserve. |
Sales of Accounts Receivable | Sales of Accounts Receivable The Company accounts for transfers of financial assets under ASC 860, “Transfers and Servicing,” as either sales or financings. Transfers of financial assets that result in sales accounting are those in which (1) the transfer legally isolates the transferred assets from the transferor, (2) the transferee has the right to pledge or exchange the transferred assets and no condition both constrains the transferee’s right to pledge or exchange the assets and provides more than a trivial benefit to the transferor, and (3) the transferor does not maintain effective control over the transferred assets. If the transfer does not meet these criteria, the transfer is accounted for as a financing. Financial assets that are treated as sales are removed from the Company’s accounts with any realized gain or loss reflected in earning during the period of sale. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, using the first in, first out method (“FIFO”). If net realizable value is less than cost at the balance sheet date, the carrying amount is reduced to the realizable value, and the difference is recognized as a loss on valuation of inventories within cost of sales. Inventory reserves are established when conditions indicate that the net realizable value is less than costs due to physical deterioration, obsolescence, changes in price levels, or other causes based on individual facts and circumstances. The Company evaluates the sufficiency of inventory reserves and take into consideration historical usage, expected demand, anticipated sales price, new product development schedules, the effect new products might have on the sale of existing products, product age and other factors. Reserves are also established for excess inventory based on the Company’s current inventory levels and projected demand and its ability to sell those specific products. Situations that could cause these inventory reserves include a decline in business and economic conditions, decline in consumer confidence caused by changes in market conditions, sudden and significant decline in demand for our products, inventory obsolescence because of rapidly changing technology and consumer requirements, or failure to estimate end customer demand properly. A reduction of these inventory reserves may be recorded if previously reserved items are subsequently sold as a result of unexpected changes to certain aforementioned situations. In addition, as prescribed in ASC 330, “Inventory,” once a reserve is established for a particular item based on the Company’s assessment as described above, it is maintained until the related item is sold or scrapped as a new cost basis has been established that cannot subsequently be marked up. In addition, the cost of inventories is determined based on the normal capacity of each fabrication facility. In case the capacity utilization is lower than a certain level that management believes to be normal, the fixed overhead costs per production unit which exceeds those under normal capacity are charged to cost of sales rather than capitalized as inventories. In July 2015, the FASB issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory” (“ASU 2015-11”). Under ASU 2015-11, inventory will be measured at the lower of cost and net realizable value, and options that currently exist for market value will be eliminated. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. No other changes were made to the current guidance on inventory measurement. The Company adopted ASU 2015-11 in the first quarter of 2017, and the adoption of ASU 2015-11 did not impact the Company’s consolidated financial statements. |
Advances to Suppliers | Advances to Suppliers The Company, from time to time, may make prepayments to suppliers to procure materials to meet its planned production. The Company recorded prepayments of $7,404 thousand and $ 1,390 thousand as other current assets as of December 31, 2017 and 2016, respectively. |
Vendor Rebates | Vendor Rebates The Company, from time to time, enters into arrangements whereby rebates are obtained from vendors when the Company achieves certain levels of purchases. The vendor rebates are computed at an agreed upon amount or percentage of purchase levels. As these vendor rebates are impacted by actual and estimated purchases for the applicable agreed upon period, the Company periodically assesses the progress of its purchase levels and revises the estimates when necessary. The Company accounts for such rebates as a reduction of inventory until the Company sells the product, at which time such rebates are reflected as a reduction of cost of sales in its consolidated statements of operations. Vendor rebates recorded as a reduction of inventory were $0 and $359 thousand as of December 31, 2017 and 2016, respectively. Vendor rebates recorded as a reduction of cost of sales were $379 thousand and $4,044 thousand for the years ended December 31, 2017 and 2016, respectively. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost, less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. Buildings 30 - 40 years Building related structures 10 - 20 years Machinery and equipment 10 - 12 years Others 3 - 10 years Routine maintenance and repairs are charged to expense as incurred. Expenditures that enhance the value or significantly extend the useful lives of the related assets are capitalized. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews property, plant and equipment and other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable in accordance with ASC 360, “Property, Plant and Equipment”. Recoverability is measured by comparing its carrying amount with the future net undiscounted cash flows the assets are expected to generate. If such assets are considered to be impaired, the impairment is measured as the difference between the carrying amount of the assets and the fair value of assets using the present value of the future net cash flows generated by the respective long-lived assets. |
Restructuring Charges | Restructuring Charges The Company recognizes restructuring charges in accordance with ASC 420, “Exit or Disposal Cost Obligations”. Certain costs and expenses related to exit or disposal activities are recorded as restructuring charges when liabilities for those costs and expenses are incurred. |
Lease Transactions | Lease Transactions The Company accounts for lease transactions as either operating leases or capital leases, depending on the terms of the underlying lease agreements. Machinery and equipment acquired under capital lease agreements are recorded at the lower of the present value of future minimum lease payments and estimated fair value of leased property and depreciated using the straight-line method over their estimated useful lives. In addition, the aggregate lease payments are recorded as capital lease obligations, net of unaccrued interest. Interest is amortized over the lease period using the effective interest rate method. Leases that do not qualify as capital leases are classified as operating leases, and the related rental payments are expensed on a straight-line basis over the shorter of the estimated useful lives of the leased property and the lease term. |
Intangible Assets | Intangible Assets Intangible assets other than intellectual property include technology and customer relationships which are amortized on a straight-line basis over periods ranging from one to five years. Intellectual property assets acquired represent rights under patents, trademarks and property use rights and are amortized over their respective periods of benefit, ranging up to ten years, on a straight-line basis. |
Fair Value Disclosures of Financial Instruments | Fair Value Disclosures of Financial Instruments The Company follows ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”) for measurement and disclosures about fair value of its financial instruments. ASC 820 establishes a framework for measuring fair value in US GAAP, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by ASC 820 are: Level 1—Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2—Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3—Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date. The carrying amounts of the Company’s financial assets and liabilities, such as cash equivalents, accounts receivable, other receivables, accounts payable and other accounts payable approximate their fair values because of the short maturity of these instruments. |
Accrued Severance Benefits | Accrued Severance Benefits The majority of accrued severance benefits is for employees in the Company’s Korean subsidiary, MagnaChip Semiconductor Ltd. Pursuant to the Employee Retirement Benefit Security Act of Korea, eligible employees and executive officers with one or more years of service are entitled to severance benefits upon the termination of their employment based on their length of service and rate of pay. As of December 31, 2017, 98% of all employees of the Company were eligible for severance benefits. Accrued severance benefits are funded through a group severance insurance plan. The amounts funded under this insurance plan are classified as a reduction of the accrued severance benefits. Subsequent accruals are to be funded at the discretion of the Company. In accordance with the National Pension Act of the Republic of Korea, a certain portion of accrued severance benefits is deposited with the National Pension Fund and deducted from the accrued severance benefits. The contributed amount is paid to employees from the National Pension Fund upon their retirement. |
Revenue Recognition | Revenue Recognition Revenue is recognized when there is persuasive evidence of an arrangement, the price to the buyer is fixed or determinable, delivery has occurred and collectability of the sales price is reasonably assured. Revenue from the sale of products is recognized when title and risk of loss transfers to the customer, which is generally when the product is shipped to or accepted by the customer depending on the terms of the arrangement. A portion of the Company’s sales are made through distributors for which revenue recognition criteria are usually met when the product is shipped to or accepted by the distributors, consistent with the principles described above. However, the risk of loss may not pass upon shipment of products to the distributor due to a variety of reasons, including the nature of the business arrangement with the distributor. For example, the financial condition of a distributor may indicate that payments by the distributor to the Company are contingent on resale of products to an end customer. In this situation, the Company defers recognition of revenue and cost of revenue on transactions with such distributor until the product has been resold to the end customer. The Company recorded deferred revenue in the amount of $8,335 thousand as of December 31, 2017 and $11,092 thousand as of December 31, 2016 as the Company received cash from certain customers and distributors for the sale of products prior to risk of loss being transferred based on the terms of the arrangement. In accordance with revenue recognition guidance, any tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between a seller and a customer is presented in the statements of operations on a net basis (excluded from revenues). The Company provides a warranty, under which customers can return defective products. The Company estimates the costs related to those defective product returns and records them as a component of cost of sales. In addition, the Company offers sales returns (other than those that relate to defective products under warranty), yield provisions, cash discounts for early payments and certain allowances to its customers, including distributors. The Company records reserves for those returns, discounts and allowances as a deduction from sales, based on historical experience and other quantitative and qualitative factors. All amounts billed to a customer related to shipping and handling are classified as sales while all costs incurred by the Company for shipping and handling are classified as selling, general and administrative expenses. The amounts charged to selling, general and administrative expenses were $1,652 thousand, $1,631 thousand, and $2,394 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. |
Derivative Financial Instruments | Derivative Financial Instruments The Company applies the provisions of ASC 815, “Derivatives and Hedging” (“ASC 815”). This Statement requires the recognition of all derivative instruments as either assets or liabilities measured at fair value. Under the provisions of ASC 815, the Company may designate a derivative instrument as hedging the exposure to variability in expected future cash flows that are attributable to a particular risk (a “cash flow hedge”) or hedging the exposure to changes in the fair value of an asset or a liability (a “fair value hedge”). Special accounting for qualifying hedges allows the effective portion of a derivative instrument’s gains and losses to offset related results on the hedged item in the consolidated statements of operations and requires that a company formally document, designate and assess the effectiveness of the transactions that receive hedge accounting treatment. Both at the inception of a hedge and on an ongoing basis, a hedge must be expected to be highly effective in achieving offsetting changes in cash flows or fair value attributable to the underlying risk being hedged. If the Company determines that a derivative instrument is no longer highly effective as a hedge, it discontinues hedge accounting prospectively and future changes in the fair value of the derivative are recognized in current earnings. The Company assesses hedge effectiveness at the end of each quarter. In accordance with ASC 815, changes in the fair value of derivative instruments that are cash flow hedges are recognized in accumulated other comprehensive income (loss) and reclassified into earnings in the period in which the hedged item affects earnings. Ineffective portions of a derivative instrument’s change in fair value are immediately recognized in earnings. Derivative instruments that do not qualify, or cease to qualify, as hedges must be adjusted to fair value and the adjustments are recorded through net income (loss). The cash flows from derivative instruments receiving hedge accounting treatment are classified in the same categories as the hedged items in the consolidated statements of cash flows. |
Advertising | Advertising The Company expenses advertising costs as incurred. Advertising expense was approximately $95 thousand, $149 thousand and $144 thousand for the years ended December 31, 2017, 2016 and 2015, respectively. |
Product Warranties | Product Warranties The Company records, in other current liabilities, warranty liabilities for the estimated costs that may be incurred under its basic limited warranty. The standard limited warranty period is one to two years for the majority of products. This warranty covers defective products, and related liabilities are accrued when product revenues are recognized. Factors that affect the Company’s warranty liability include historical and anticipated rates of warranty claims and repair or replacement costs per claim to satisfy the Company’s warranty obligation. As these factors are impacted by actual experience and future expectations, the Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts when necessary. |
Research and Development | Research and Development Research and development costs are expensed as incurred and include wafers, masks, employee expenses, contractor fees, building costs, utilities and administrative expenses. |
Licensed Patents and Technologies | Licensed Patents and Technologies The Company has entered into a number of royalty agreements to license patents and technology used in the design of its products. The Company carries two types of royalties: lump-sum and running basis. Lump-sum royalties, which require initial payments, usually paid in installments, represent a non-refundable commitment, such that the total present value of these payments is recorded as a prepaid expense and a liability upon execution of the agreements and the costs are amortized over the contract period using the straight-line method and charged to research and development expenses in the consolidated statements of operations. Running royalties are paid based on the revenue of related products sold by the Company. |
Stock-Based Compensation | Stock-Based Compensation The Company follows the provisions of ASC 718, “Compensation-Stock Compensation” (“ASC 718”). Under ASC 718, stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized as expense, net of the estimated forfeiture rate, over the requisite service period. As permitted under ASC 718, the Company elected to recognize compensation expense for all options with graded vesting based on the graded attribution method. The Company uses the Black-Scholes option-pricing model to measure the grant-date-fair-value of options. The Black-Scholes model requires certain assumptions to determine an option’s fair value, including expected term, risk free interest rate, expected volatility and fair value of underlying common share. The expected term of each option grant was based on employees’ expected exercises and post-vesting employment termination behavior and the risk free interest rate was based on the U.S. Treasury yield curve for the period corresponding with the expected term at the time of grant. No dividends were assumed for this calculation of option value. |
Earnings per Share | Earnings per Share In accordance with ASC 260, “Earnings Per Share”, the Company computes basic earnings per share by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share reflect the dilution of potential common stock outstanding during the period including stock options and restricted stock units, using the treasury stock method (by using the average stock price for the period to determine the number of shares assumed to be purchased from the exercise of stock options and restricted stock units), and convertibles, using the if-converted method. In determining the hypothetical shares repurchased, the Company uses the average share price for the period. In the case that earnings are negative, any potential common stock equivalents would have the effect of being anti-dilutive in the computation of net loss per share. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, “Income Taxes” (“ASC 740”). ASC 740 requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in a company’s financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based upon the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect in the years in which the differences are expected to reverse. Valuation allowances are established when it is necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable for the period and the change during the period in deferred tax assets and liabilities. The Company recognizes and measures uncertain tax positions taken or expected to be taken in a tax return utilizing a two-step process. In the first step, recognition, the Company determines whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step addresses measurement of a tax position that meets the more-likely-than-not criteria. The tax position is measured at the largest amount of benefit that has a likelihood of greater than 50 percent of being realized upon ultimate settlement. In November 2015, the FASB issued Accounting Standards Update No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”). The amendments in ASU 2015-17 require an entity to classify all deferred tax assets and liabilities as noncurrent. The Company adopted ASU 2015-17 in the first quarter of 2017 prospectively and all current deferred tax assets and liabilities in the prior periods have not been reclassified as noncurrent. |
Concentration of Credit Risk | Concentration of Credit Risk The Company performs periodic credit evaluations of its customers’ financial condition and generally does not require collateral for customers on accounts receivable. The Company maintains reserves for potential credit losses, which are periodically reviewed. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities” (“ASU 2017-12”). ASU 2017-12 provides new guidance about income statement classification and eliminates the requirement to separately measure and report hedge ineffectiveness. The entire change in fair value for qualifying hedge instruments included in the effectiveness will be recorded in other comprehensive income (OCI) and amounts deferred in OCI will be reclassified to earnings in the same income statement line item in which the earnings effect of the hedged item is reported. ASU 2017-12 is effective for interim and annual periods for the Company on January 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of adoption of ASU 2017-12 on its consolidated financial statements. In July 2017, the FASB issued Accounting Standards Update No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815)” (“ASU 2017-11”), which addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. For public business entities, the amendments in ASU 2017-11 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact of adoption of ASU 2017-11 on its consolidated financial statements. In May 2017, the FASB issued Accounting Standards Update No. 2017-09, “Compensation-Stock Compensation (Topic 718): Scope of Modification Accounting” (“ASU 2017-09”). ASU 2017-09 provides clarity and reduces both (i) diversity in practice and (ii) cost and complexity when applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-09 is effective for fiscal years beginning after December 15, 2017, and interim periods within those years and early adoption is permitted. The Company does not expect the adoption of ASU 2017-09 to have a material effect on the Company’s consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments” (“ASU 2016-15”). ASU 2016-15 reduces the existing diversity in practice in financial reporting across all industries by clarifying certain existing principles in ASC 230, Statement of Cash Flows (“ASC 230”), including providing additional guidance on how and what an entity should consider in determining the classification of certain cash flows. In addition, in November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash (“ASU 2016-18”). ASU 2016-18 clarifies certain existing principles in ASC 230, including providing additional guidance related to transfers between cash and restricted cash and how entities present, in their statement of cash flows, the cash receipts and cash payments that directly affect the restricted cash accounts. These ASUs are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2016-15 to have a material effect on the Company’s consolidated financial statements. The adoption of ASU 2016-18 will impact the Company’s current disclosures as it will require including restricted cash within cash and cash equivalents on the statement of cash flows. These ASUs will be adopted in the first quarter of 2018. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”) in order to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under US GAAP. ASU 2016-02 requires that a lessee should recognize a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those reporting periods using a modified retrospective approach and early adoption is permitted. The Company is performing a preliminary review of its contracts that are expected to be applied under the new guidance. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Subsequently, the FASB approved a deferral included in ASU 2015-14 that permits public entities to apply the amendments in ASU 2014-09 for annual reporting periods beginning after December 15, 2017, including interim reporting periods therein, and that would also permit public entities to elect to adopt the amendments as of the original effective date as applicable to reporting periods beginning after December 15, 2016. The new guidance allows for the amendments to be applied either retrospectively to each prior reporting period presented (the “full retrospective method”) or retrospectively as a cumulative-effect adjustment as of the date of adoption (the “modified retrospective method”). In March 2016, the FASB issued ASU 2016-08, which clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, which clarifies identifying performance obligations and the licensing implementation guidance. In May 2016, the FASB issued ASU 2016-12, The Company adopted the new revenue standard effective January 1, 2018 using the modified retrospective method. Based on our evaluation of the terms of revenue contracts and other arrangements, the most significant impact relates to the accounting for the Company’s foundry services revenue. The Company’s foundry services group manufactures products that have no alternative use since such products are made to specific customer orders, and has a legally enforceable right to payment for performance completed to date on these manufactured products including a reasonable profit. For those manufactured products, the Company will recognize revenue “over time” in proportion of wafer-manufacturing rather than at the time of shipment or delivery of the related products. The Company will recognize the cumulative effect of initially applying the new revenue standard as an adjustment to the Company’s equity as of January 1, 2018. The estimated impact is based on assessments undertaken to date and the Company expects this adjustment to increase the Company’s beginning equity as of January 1, 2018 by less than $10 million. |
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, “Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The primary impact of adoption is the recognition of excess tax benefits within income tax provision rather than within stockholders’ equity. The Company adopted ASU 2016-09 in the first quarter of 2017, and the adoption of ASU 2016-09 did not have a material impact to the Company’s consolidated financial statements. |
Business, Basis of Presentati32
Business, Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Assets | Depreciation is computed using the straight-line method over the estimated useful lives of the assets as set forth below. Buildings 30 - 40 years Building related structures 10 - 20 years Machinery and equipment 10 - 12 years Others 3 - 10 years |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | As of December 31, 2017, the following table represents the Company’s assets measured at fair value on a recurring basis and the basis for that measurement (in thousands): Carrying Value Fair Value Quoted Prices in Significant Significant Assets: Derivative assets (other current assets) $ 5,179 $ 5,179 — $ 5,179 — 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 Quoted Prices in Significant Significant Liabilities: Derivative liabilities (other current liabilities) $ 453 $ 453 — $ 453 — |
Schedule of Fair Value of Long-term Borrowings | Fair Value of Long-term Borrowings December 31, 2017 December 31, 2016 Carrying Fair Carrying Fair (In thousands of US dollars) Long-term Borrowings: 5.0% Exchangeable Senior Notes due March 2021 (Level 2) $ 81,576 $ 127,617 $ — $ — 6.625% senior notes due July 2021 (Level 2) $ 221,840 $ 224,719 $ 221,082 $ 193,500 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Accounts Receivable | Accounts receivable as of December 31, 2017 and 2016 consisted of the following (in thousands): December 31, 2017 2016 Accounts receivable $ 86,167 $ 63,116 Notes receivable 7,425 281 Less: Allowances for doubtful accounts (94 ) (83 ) Sales return reserves (628 ) (1,107 ) Low yield compensation reserve (844 ) (432 ) Accounts receivable, net $ 92,026 $ 61,775 |
Allowance for Doubtful Accounts [Member] | |
Schedule of Changes in Receivables and Reserves | Changes in allowance for doubtful accounts for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (83 ) $ (236 ) $ (263 ) Reversal — 148 3 Translation adjustments (11 ) 5 24 Ending balance $ (94 ) $ (83 ) $ (236 ) |
Sales Return Reserve [Member] | |
Schedule of Changes in Receivables and Reserves | Changes in sales return reserves for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (1,107 ) $ (1,481 ) $ (787 ) Provision (40 ) (26 ) (1,586 ) Usage 626 361 851 Translation adjustments (107 ) 39 41 Ending balance $ (628 ) $ (1,107 ) $ (1,481 ) |
Low Yield Compensation Reserve [Member] | |
Schedule of Changes in Receivables and Reserves | Changes in low yield compensation reserve for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (432 ) $ (480 ) $ (1,100 ) Reversal (Provision) (362 ) (29 ) 69 Usage 22 63 512 Translation adjustments (72 ) 14 39 Ending balance $ (844 ) $ (432 ) $ (480 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories as of December 31, 2017 and 2016 consist of the following (in thousands): Year Ended December 31, 2017 2016 Finished goods 13,737 7,867 Semi-finished goods and work-in-process 53,148 46,653 Raw materials 12,445 7,846 Materials in-transit 134 1,859 Less: inventory reserve (6,391 ) (7,177 ) Inventories, net $ 73,073 $ 57,048 |
Changes in Inventory Reserve | Changes in inventory reserve for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ (7,177 ) $ (16,033 ) $ (47,488 ) Change in reserve Inventory reserve charged to costs of sales (4,789 ) (7,646 ) (13,635 ) Sale of previously reserved inventory 3,784 4,985 13,932 (1,005 ) (2,661 ) 297 Write off 2,620 11,384 29,146 Translation adjustments (829 ) 133 2,012 Ending balance $ (6,391 ) $ (7,177 ) $ (16,033 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant and Equipment | Property, plant and equipment as of December 31, 2017 and 2016 are comprised of the following (in thousands): December 31, 2017 2016 Buildings and related structures $ 69,958 $ 64,939 Machinery and equipment 308,713 255,618 Others 42,497 29,492 421,168 350,049 Less: accumulated depreciation (231,356 ) (184,521 ) Land 16,091 14,265 Property, plant and equipment, net $ 205,903 $ 179,793 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Intangible Assets | Intangible assets as of December 31, 2017 and 2016 are comprised of the following (in thousands): December 31, 2017 Gross Accumulated Net Technology $ 20,194 $ (20,194 ) $ — Customer relationships 29,002 (29,002 ) — Intellectual property assets 11,319 (7,258 ) 4,061 Intangible assets, net $ 60,515 $ (56,454 ) $ 4,061 December 31, 2016 Gross Accumulated Net 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) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of December 31, 2017 and 2016 are comprised of the following (in thousands): December 31, 2017 2016 Payroll, benefits and related taxes, excluding severance benefits $ 16,724 $ 24,982 Withholding tax attributable to intercompany interest income 18,138 15,573 Interest on senior notes 8,268 6,831 Outside service fees 1,942 4,423 Others 6,674 8,556 Accrued expenses $ 51,746 $ 60,365 |
Derivative Financial Instrume39
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Details of Derivative Contracts | Details of derivative contracts as of December 31, 2017 are as follows (in thousands): Date of transaction Type of derivative Total notional amount Month of settlement June 22, 2017 Zero cost collar $ 20,000 January 2018 to February 2018 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 December 31, 2017 and 2016 are as follows (in thousands): Derivatives designated as hedging instruments: December 31, 2017 2016 Asset Derivatives: Zero cost collars Other current assets $ 2,827 $ — Forward Other current assets $ 2,352 $ — Liability Derivatives: Zero cost collars Other current liabilities $ — $ 453 |
Offsetting of Derivative Assets and Liabilities | Offsetting of derivative assets as of December 31, 2017 is as follows (in thousands): As of December 31, 2017 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Asset Derivatives: Zero cost collars $ 2,827 $ — $ 2,827 $ — $ — $ 2,827 Forward $ 2,352 $ — $ 2,352 $ — $ — $ 2,352 Offsetting of derivative liabilities as of December 31, 2016 is as follows (in thousands): As of December 31, 2016 Gross amounts of Gross amounts Net amounts of Gross amounts not offset Net amount Financial Cash collateral Liability 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 years ended December 31, 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 (loss) Reclassified from AOCI into Statement of Operations (Effective Portion) Amount of Reclassified from AOCI into Statement of Operations (Effective Portion) Location of Recognized in Statement of Operations on Derivative (Ineffective Portion) Amount of Recognized in Statement of Operations on Derivatives (Ineffective Portion) 2017 2016 2017 2016 2017 2016 Zero cost collars $ 4,692 $ (1,032 ) Net sales $ 1,501 $ (637 ) Other income, net $ 606 $ (272 ) Forwards $ 3,044 $ — Net sales $ 500 $ — Other income, net $ (370 ) $ — Total $ $7,736 $ (1,032 ) $ 2,001 $ — $ 236 $ (272 ) |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Guarantees and Product Warranties [Abstract] | |
Schedule of Changes in Accrued Warranty Liabilities | Changes in accrued warranty liabilities for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ 466 $ 1,425 $ 2,973 Change in provision (224 ) (426 ) (648 ) Usage (65 ) (527 ) (758 ) Translation adjustments 39 (6 ) (142 ) Ending balance $ 216 $ 466 $ 1,425 |
Long-term Borrowings (Tables)
Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-term Borrowings | Long-term borrowings as of December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 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 (7,834 ) (3,918 ) Long-term borrowings, net of unamortized discount and debt issuance costs $ 303,416 $ 221,082 |
Accrued Severance Benefits (Tab
Accrued Severance Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Changes in Accrued Severance Benefits | Changes in accrued severance benefits are as follows (in thousands): Year Ended December 31, 2017 2016 Beginning balance $ 130,144 $ 135,160 Provisions 24,373 14,432 Severance payments (21,506 ) (15,352 ) Translation adjustments 16,785 (4,096 ) 149,796 130,144 Less: Cumulative contributions to the National Pension Fund (259 ) (276 ) Group severance insurance plan (632 ) (643 ) Accrued severance benefits, net $ 148,905 $ 129,225 |
Future Benefits Payments to Employees | The Company is liable to pay the following future benefits to its non-executive employees upon their normal retirement age (in thousands): Severance 2018 $ — 2019 610 2020 1,094 2021 1,573 2022 1,584 2023 – 2027 20,541 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Changes in Common Stock | Changes in common stock for each period are as follows (in thousands): Year Ended December 31, 2017 2016 Shares Amount Shares Amount Common stock at the beginning of the period 35,048,338 $ 416 34,568,942 $ 411 Exercise of stock options 539,183 6 296,103 3 Settlement of restricted stock units 397,522 4 183,293 2 Acquisitions of treasury stock (1,795,444 ) — — — Total common stock outstanding at the end of the period 34,189,599 $ 426 35,048,338 $ 416 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Unit Activities | The following summarizes restricted stock unit activities for the years ended December 31, 2017, 2016 and 2015. Number of Weighted Outstanding at January 1, 2015 — $ — Granted 265,332 7.68 Vested (129,962 ) 7.64 Outstanding at December 31, 2015 135,370 $ 7.72 Granted 505,689 5.71 Vested (101,240 ) 7.09 Forfeited (21,339 ) 6.24 Outstanding at December 31, 2016 518,480 $ 5.94 Granted 172,716 11.15 Vested (368,555 ) 5.72 Forfeited (830 ) 8.33 Outstanding at December 31, 2017 321,811 $ 8.99 |
Summary of Stock Option Activities | The following summarizes stock option activities for the years ended December 31, 2017, 2016 and 2015. At the date of grant, all options had an exercise price not less than the fair value of common stock (aggregate intrinsic value in thousands): Number of Weighted Aggregate Weighted Outstanding at January 1, 2015 3,215,945 $ 9.60 $ 39,615 6.6 years Granted 802,193 7.92 — — Forfeited (325,765 ) 9.88 — — Exercised (512,474 ) 6.70 692 — Outstanding at December 31, 2015 3,179,899 $ 9.61 $ — 6.7 years Vested and expected to vest at December 31, 2015 3,155,828 9.62 — 6.7 years Exercisable at December 31, 2015 2,547,902 9.63 — 6.0 years Outstanding at January 1, 2016 3,179,899 $ 9.61 $ — 6.7 years Granted 827,406 6.04 — — Forfeited (282,537 ) 7.67 — — Exercised (296,103 ) 5.85 806 — Outstanding at December 31, 2016 3,428,665 $ 9.23 $ 525 6.7 years Vested and expected to vest at December 31, 2016 3,389,763 9.27 508 6.7 years Exercisable at December 31, 2016 2,531,243 10.11 236 5.9 years Outstanding at January 1, 2017 3,428,665 $ 9.23 $ 525 6.7 years Granted 70,865 10.43 — — Forfeited (88,443 ) 12.77 — — Exercised (539,183 ) 6.94 1,540 — Outstanding at December 31, 2017 2,871,904 $ 9.59 $ 6,073 6.2 years Vested and expected to vest at December 31, 2017 2,865,475 9.59 6,050 6.2 years Exercisable at December 31, 2017 2,395,979 10.11 4,603 5.7 years |
Assumptions used in Black-Scholes Option-Pricing Model on Weighted Average Basis | The following summarizes the grant-date fair value of options granted for the years ended December 31, 2017, 2016 and 2015 and assumptions used in the Black-Scholes option-pricing model on a weighted average basis. For the year ended December 31, 2017, the expected volatility was estimated using historical volatility of the Company’s share prices. For the years ended December 31, 2016 and 2015, it was based on historical volatility of share prices of similar public entities: Year Ended December 31, 2017 2016 2015 Grant-date fair value of option $ 5.02 $ 1.54 $ 1.67 Expected term 2.5 Years 2.7 Years 2.4 Years Risk-free interest rate 1.2 % 1.0 % 0.8 % Expected volatility 81.7 % 36.8 % 33.8 % Expected dividends — — — |
Number and Weighted Average Grant-Date Fair Value of Unvested Stock Options | The number and weighted average grant-date fair value of the unvested stock options are as follows: Year Ended December 31, 2017 2016 2015 Number Weighted Number Weighted Number Weighted Unvested options at the beginning of the period 897,421 $ 1.72 631,997 $ 2.40 455,543 $ 4.18 Granted options during the period 70,865 5.02 827,406 1.54 802,193 1.67 Vested options during the period (455,301 ) 1.74 (446,570 ) 2.26 (532,682 ) 2.56 Forfeited options during the period (19,031 ) 1.77 (85,934 ) 1.88 (92,959 ) 4.01 Exercised options during the period (18,029 ) 1.59 (29,478 ) 1.24 (98 ) 3.08 Unvested options at the end of the period 475,925 $ 2.19 897,421 $ 1.72 631,997 $ 2.40 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Expense | The components of income tax expense are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Income (loss) before income taxes Domestic $ 27,461 $ (1,738 ) $ 32,903 Foreign 58,630 (24,133 ) (132,857 ) $ 86,091 $ (25,871 ) $ (99,954 ) Current income taxes expense (benefit) Domestic $ (359 ) $ (6 ) $ 25 Foreign 3,680 3,386 (14,301 ) Uncertain tax position liability (domestic) (476 ) 12 10 Uncertain tax position liability (foreign) (1,635 ) 339 (1,220 ) 1,210 3,731 (15,486 ) Deferred income taxes expense (benefit) Foreign (55 ) 13 399 Total income tax expense (benefit) $ 1,155 $ 3,744 $ (15,087 ) Effective tax rate 1.3 % (14.5 )% 15.1 % |
Difference Between Provision for Domestic and Foreign Income Taxes and Amount Calculated by Statutory Tax Rate to Net Income Before Income Taxes | The provision for domestic and foreign income taxes incurred is different from the amount calculated by applying the statutory tax rate to the net income before income taxes. The significant items causing this difference are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Provision computed at statutory rate $ 30,223 $ (9,055 ) $ (34,984 ) Change in statutory tax rates 13,438 — — Difference in foreign tax rates (12,344 ) 1,995 24,359 Permanent differences Derivative assets adjustment 1,937 (149 ) (143 ) TPECs, hybrid and other interest (7,526 ) (10,353 ) (27,273 ) Permanent impairment — — (62,334 ) Thin capitalization 1,888 2,120 2,457 Permanent foreign currency gain (loss) (838 ) (54 ) 11,575 Penalty 4,001 689 — Non-deductible bad debt expense — — 89 Other permanent differences 633 50 (69 ) Withholding tax 3,339 3,092 (14,457 ) Foreign exchange rate adjustment 16,075 (1,838 ) (8,954 ) Change in valuation allowance (56,744 ) 10,095 95,757 Tax credits claimed (659 ) (706 ) (875 ) Tax credits expired 2,638 1,578 — Uncertain tax positions liability (2,111 ) 351 (1,211 ) Change in net operating loss carry-forwards 6,878 — — Others 327 5,929 976 Income tax expense (benefit) $ 1,155 $ 3,744 $ (15,087 ) |
Summary of Composition of Net Deferred Income Tax Assets (Liabilities) | A summary of the composition of net deferred income tax assets (liabilities) as of December 31, 2017 and 2016 are as follows (in thousands): Year-Ended December 31, 2017 2016 Deferred tax assets Inventory reserves $ 1,630 $ 1,822 Derivative assets (1,253 ) 110 Accrued expenses 2,826 2,803 Product warranties 52 113 Other reserves 356 372 Property, plant and equipment 9,759 13,314 Intangible assets 35 103 Accumulated severance benefits 36,245 31,478 Foreign currency translation losses 20,067 53,130 NOL carry-forwards 175,543 167,590 Tax credit 20,583 20,249 Other long-term payable 1,801 2,079 Others 3,546 4,885 Total deferred tax assets 271,190 298,048 Less: Valuation allowance (251,132 ) (281,473 ) 20,058 16,575 Deferred tax liabilities Foreign currency translation gains 18,187 14,338 Prepaid expense 1,464 1,644 Others 143 410 Total deferred tax liabilities 19,794 16,392 Net deferred tax assets $ 264 $ 183 Reported as Current deferred income tax assets $ — $ 37 Non-current deferred income tax assets $ 264 $ 193 Current deferred income tax liabilities $ — $ (46 ) Non-current deferred income tax liabilities $ — $ (1 ) |
Changes in Valuation Allowance for Deferred Tax Assets | Changes in valuation allowance for deferred tax assets for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 2016 2015 Beginning balance $ 281,473 $ 279,867 $ 194,739 Charged to expense (54,816 ) 10,095 95,757 NOL/tax credit claimed/expired (1,928 ) (872 ) (1,197 ) Translation adjustments 26,403 (7,617 ) (9,432 ) Ending balance $ 251,132 $ 281,473 $ 279,867 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits | A tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of each period is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Unrecognized tax benefits, balance at the beginning $ 2,459 $ 2,139 $ 3,495 Additions based on tax positions related to the current year 10 371 351 Additions (reductions) for tax positions of prior years (676 ) 317 (135 ) Lapse of statute of limitations (735 ) (670 ) (1,318 ) Additions (reductions) of interest and penalties (712 ) 334 (108 ) Translation adjustments 137 (32 ) (146 ) Unrecognized tax benefits, balance at the ending $ 483 $ 2,459 $ 2,139 |
Reconciliation of Total Amounts of UncertainTax Positions | A tabular reconciliation of the total amounts of uncertain tax positions at the beginning and end of each period is as follows (in thousands): Year Ended December 31, 2017 2016 2015 Uncertain tax positions, balance at the beginning $ 11,894 $ 13,330 $ 14,969 Additions based on tax positions related to the current year (366 ) 942 1,789 Additions (reductions) for tax positions of prior years (8,923 ) 317 — Lapse of statute of limitations (2,218 ) (2,380 ) (2,142 ) Translation adjustments 675 (315 ) (1,287 ) Uncertain tax positions, balance at the ending $ 1,062 $ 11,894 $ 13,330 |
Geographic and Segment Inform46
Geographic and Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Operating Segments | The following sets forth information relating to the operating segments (in thousands): Year Ended December 31, 2017 2016 2015 Net Sales Foundry Services Group $ 320,089 $ 273,961 $ 290,775 Standard Products Group Display Solutions 209,539 281,967 207,480 Power Solutions 149,836 131,468 134,814 Total Standard Products Group 359,375 413,435 342,294 All other 208 573 643 Total net sales $ 679,672 $ 687,969 $ 633,712 Year Ended December 31, 2017 2016 2015 Gross Profit Foundry Services Group $ 95,458 $ 69,412 $ 66,175 Standard Products Group 92,227 87,194 68,094 All other 208 (380 ) 595 Total gross profit $ 187,893 $ 156,226 $ 134,864 |
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): Year Ended December 31, 2017 2016 2015 Korea $ 279,883 $ 219,618 $ 241,715 Asia Pacific (other than Korea) 322,595 391,875 316,562 U.S.A. 35,089 33,201 51,164 Europe 41,109 42,274 23,461 Others 996 1,001 810 Total $ 679,672 $ 687,969 $ 633,712 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Minimum Aggregate Rental Payments Due Under Non-Cancelable Lease Contracts | As of December 31, 2017, the minimum aggregate rental payments due under non-cancelable lease contracts are as follows (in thousands): 2018 $ 6,724 2019 3,764 2020 3,459 2021 1,472 2022 1,316 2023 and thereafter 15,448 $ 32,183 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) consists of the following at December 31, 2017 and 2016, respectively (in thousands): Year Ended December 31, 2017 2016 Foreign currency translation adjustments $ (38,413 ) $ 14,460 Derivative adjustments 5,299 (436 ) Total $ (33,114 ) $ 14,024 |
Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2017, 2016 and 2015 are as follows (in thousands): Year Ended December 31, 2017 Foreign currency translation adjustments Derivative adjustments Unrealized gain on investments Total Beginning balance $ 14,460 $ (436 ) $ — $ 14,024 Other comprehensive income (loss) before reclassifications (52,873 ) 7,736 — (45,137 ) Amounts reclassified from accumulated other comprehensive income — (2,001 ) — (2,001 ) Net current-period other comprehensive income (loss) (52,873 ) 5,735 — (47,138 ) Ending balance $ (38,413 ) $ 5,299 $ — $ (33,114 ) Year Ended December 31, 2016 Foreign currency translation adjustments Derivative adjustments Unrealized gain on investments Total Beginning balance $ (190 ) $ (41 ) $ — $ (231 ) Other comprehensive income (loss) before reclassifications 14,650 (1,032 ) — 13,618 Amounts reclassified from accumulated other comprehensive loss — 637 — 637 Net current-period other comprehensive income (loss) 14,650 (395 ) — 14,255 Ending balance $ 14,460 $ (436 ) $ — $ 14,024 Year Ended December 31, 2015 Foreign currency translation adjustments Derivative adjustments Unrealized gain on investments Total Beginning balance $ (35,551 ) $ 485 $ — $ (35,066 ) Other comprehensive income (loss) before reclassifications 35,361 (3,748 ) — 31,613 Amounts reclassified from accumulated other comprehensive loss — 3,222 — 3,222 Net current-period other comprehensive income (loss) 35,361 (526 ) — 34,835 Ending balance $ (190 ) $ (41 ) $ — $ (231 ) |
Earnings (Loss) per Share (Tabl
Earnings (Loss) per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share | The following table illustrates the computation of basic and diluted loss per common share: Year Ended December 31, 2017 2016 2015 (In thousands of US dollars, except share data) Basic Earnings per Share Net income (loss) $ 84,936 $ (29,615 ) $ (84,867 ) Basic weighted average common stock outstanding 33,943,264 34,833,967 34,380,517 Basic earnings (loss) per share $ 2.50 $ (0.85 ) $ (2.47 ) Diluted Earnings per Share Net income (loss) $ 84,936 $ (29,615 ) $ (84,867 ) Add back: Interest expense on Exchangeable Notes 5,349 — — Net income (loss) allocated to common stockholders $ 90,285 $ (29,615 ) $ (84,867 ) Basic weighted average common stock outstanding 33,943,264 34,833,967 34,380,517 Net effect of dilutive equity awards 821,664 — — Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock 9,990,209 — — Diluted weighted average common stock outstanding 44,755,137 34,833,967 34,380,517 Diluted earnings (loss) per share $ 2.02 $ (0.85 ) $ (2.47 ) |
Schedule of Antidilutive Securities Excluded from the Computation of Loss Per Common Share | The following outstanding instruments were excluded from the computation of diluted loss per share, as they would have an anti-dilutive effect on the calculation: Year Ended December 31, 2017 2016 2015 Options 835,572 3,428,665 3,179,899 Restricted Stock Units — 518,480 135,370 |
Unaudited Quarterly Financial50
Unaudited Quarterly Financial Results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Selected Consolidated Statements of Operations | The following tables present selected unaudited Consolidated Statements of Operations for each quarter of the years ended December 31, 2017 and 2016. Fiscal Year 2017 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands of US dollars, except share data) Net sales $ 161,710 $ 166,685 $ 176,697 $ 174,580 Gross profit 41,570 46,662 50,310 49,351 Operating income 6,367 9,742 15,490 7,637 Net income (loss) $ 43,738 $ (8,059 ) $ 5,604 $ 43,653 Earnings (loss) per share: Basic $ 1.30 $ (0.24 ) $ 0.16 $ 1.28 Diluted $ 1.05 $ (0.24 ) $ 0.15 $ 0.99 Weighted average common stock outstanding: Basic 33,662,297 33,952,574 34,103,029 34,176,812 Diluted 42,892,044 33,952,574 45,542,418 45,573,889 Fiscal Year 2016 First Quarter Second Quarter Third Quarter Fourth Quarter (In thousands of US dollars, except share data) Net sales $ 148,105 $ 167,106 $ 192,296 $ 180,462 Gross profit 34,249 36,749 39,139 46,089 Operating income (loss) 4,267 (7,377 ) 618 5,229 Net income (loss) $ 8,125 $ (17,816 ) $ 29,866 $ (49,790 ) Earnings (loss) per share: Basic $ 0.23 $ (0.51 ) $ 0.86 $ (1.42 ) Diluted $ 0.23 $ (0.51 ) $ 0.85 $ (1.42 ) Weighted average common stock outstanding: Basic 34,698,904 34,716,081 34,849,805 35,068,330 Diluted 34,918,568 34,716,081 35,302,706 35,068,330 |
Business, Basis of Presentati51
Business, Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015Segments | Dec. 31, 2017USD ($)SegmentsBusiness_Lines | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Jan. 01, 2018USD ($) | |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of operating segments | Segments | 2 | 2 | |||
Cash equivalents, highly liquid investments original maturity date | Three months or less | ||||
Vendor rebates recorded as a reduction of inventory | $ 0 | $ 359,000 | |||
Vendor rebates recorded as a reduction of cost of sales | $ 379,000 | 4,044,000 | |||
Percentage of employees eligible for severance benefits | 98.00% | ||||
Recorded deferred revenue | $ 8,335,000 | 11,092,000 | |||
Advertising expense | $ 95,000 | 149,000 | $ 144,000 | ||
Standard limited warranty period | The standard limited warranty period is one to two years for the majority of products. | ||||
Dividends | $ 0 | ||||
Percentage of tax benefit realized upon settlement | 50.00% | ||||
Other Current Assets [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Prepayments to suppliers | $ 7,404,000 | 1,390,000 | |||
Selling, General and Administrative Expenses [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Shipping and handling cost | $ 1,652,000 | $ 1,631,000 | $ 2,394,000 | ||
Minimum [Member] | Technology [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of Intangible assets | 1 year | ||||
Minimum [Member] | Customer Relationships [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of Intangible assets | 1 year | ||||
Maximum [Member] | Technology [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of Intangible assets | 5 years | ||||
Maximum [Member] | Customer Relationships [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of Intangible assets | 5 years | ||||
Maximum [Member] | Intellectual Property Assets [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Estimated useful life of Intangible assets | 10 years | ||||
Maximum [Member] | Accounting Standards Update 2014-09 [Member] | Subsequent Event [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Adjustment to increase the equity | $ 10,000,000 | ||||
Standard Products Group [Member] | |||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||
Number of business lines | Business_Lines | 2 |
Business, Basis of Presentati52
Business, Basis of Presentation and Summary of Significant Accounting Policies - Estimated Useful Lives of Assets (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 30 years |
Minimum [Member] | Buildings and Related Structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Minimum [Member] | Others [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 3 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 40 years |
Maximum [Member] | Buildings and Related Structures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 20 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 12 years |
Maximum [Member] | Others [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful lives | 10 years |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Carrying Value [Member] | Other Current Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 453 | |
Carrying Value [Member] | Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | $ 5,179 | |
Estimate of Fair Value Measurement [Member] | Other Current Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | 453 | |
Estimate of Fair Value Measurement [Member] | Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | 5,179 | |
Significant Other Observable Inputs (Level 2) [Member] | Other Current Liabilities [Member] | ||
Liabilities: | ||
Derivative liabilities | $ 453 | |
Significant Other Observable Inputs (Level 2) [Member] | Other Current Assets [Member] | ||
Assets: | ||
Derivative assets | $ 5,179 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-term Borrowings: | ||
Carrying amount of senior notes | $ 303,416 | $ 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 | 81,576 | |
Estimated fair value of senior notes | 127,617 | |
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 | 221,840 | 221,082 |
Estimated fair value of senior notes | $ 224,719 | $ 193,500 |
Fair Value Measurements - Sch55
Fair Value Measurements - Schedule of Fair Value of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Dec. 31, 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 | Dec. 31, 2017 | Dec. 31, 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 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||||
Accounts receivable | $ 86,167 | $ 63,116 | ||
Notes receivable | 7,425 | 281 | ||
Allowances for doubtful accounts | (94) | (83) | $ (236) | $ (263) |
Sales return reserves | (628) | (1,107) | (1,481) | (787) |
Low yield compensation reserve | (844) | (432) | $ (480) | $ (1,100) |
Accounts receivable, net | $ 92,026 | $ 61,775 |
Accounts Receivable - Schedul58
Accounts Receivable - Schedule of Changes in Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Beginning balance | $ (83) | $ (236) | $ (263) |
Reversal | 148 | 3 | |
Translation adjustments | (11) | 5 | 24 |
Ending balance | $ (94) | $ (83) | $ (236) |
Accounts Receivable - Schedul59
Accounts Receivable - Schedule of Changes in Sales Return Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Beginning balance | $ (1,107) | $ (1,481) | $ (787) |
Provision | (40) | (26) | (1,586) |
Usage | 626 | 361 | 851 |
Translation adjustments | (107) | 39 | 41 |
Ending balance | $ (628) | $ (1,107) | $ (1,481) |
Accounts Receivable - Schedul60
Accounts Receivable - Schedule of Changes in Low Yield Compensation Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Receivables [Abstract] | |||
Beginning balance | $ (432) | $ (480) | $ (1,100) |
Reversal (Provision) | (362) | (29) | 69 |
Usage | 22 | 63 | 512 |
Translation adjustments | (72) | 14 | 39 |
Ending balance | $ (844) | $ (432) | $ (480) |
Accounts Receivable - Additiona
Accounts Receivable - Additional Information (Detail) - Trade Accounts Receivable [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Proceeds from sale of accounts receivable | $ 18,973 | $ 25,146 | $ 57,185 |
Selling, General and Administrative Expenses [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Pre-tax losses on accounts receivable | $ 55 | $ 78 | $ 114 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||||
Finished goods | $ 13,737 | $ 7,867 | ||
Semi-finished goods and work-in-process | 53,148 | 46,653 | ||
Raw materials | 12,445 | 7,846 | ||
Materials in-transit | 134 | 1,859 | ||
Less: inventory reserve | (6,391) | (7,177) | $ (16,033) | $ (47,488) |
Inventories, net | $ 73,073 | $ 57,048 |
Inventories - Changes in Invent
Inventories - Changes in Inventory Reserve (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |||
Beginning balance | $ (7,177) | $ (16,033) | $ (47,488) |
Change in reserve | |||
Inventory reserve charged to costs of sales | (4,789) | (7,646) | (13,635) |
Sale of previously reserved inventory | 3,784 | 4,985 | 13,932 |
Change in reserve | (1,005) | (2,661) | 297 |
Write off | 2,620 | 11,384 | 29,146 |
Translation adjustments | (829) | 133 | 2,012 |
Ending balance | $ (6,391) | $ (7,177) | $ (16,033) |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 421,168 | $ 350,049 |
Less: accumulated depreciation | (231,356) | (184,521) |
Property, plant and equipment, net | 205,903 | 179,793 |
Buildings and Related Structures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 69,958 | 64,939 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 308,713 | 255,618 |
Others [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 42,497 | 29,492 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, net | $ 16,091 | $ 14,265 |
Property, Plant and Equipment65
Property, Plant and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expenses | $ 27,498 | $ 24,941 |
Intangible Assets - Summary of
Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | $ 60,515 | $ 52,641 |
Accumulated amortization | (56,454) | (49,556) |
Intangible asset, Net amount | 4,061 | 3,085 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 20,194 | 17,903 |
Accumulated amortization | (20,194) | (17,903) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 29,002 | 25,712 |
Accumulated amortization | (29,002) | (25,712) |
Intellectual Property Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset, Gross amount | 11,319 | 9,026 |
Accumulated amortization | (7,258) | (5,941) |
Intangible asset, Net amount | $ 4,061 | $ 3,085 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense for intangible assets | $ 648 | $ 475 |
Estimated aggregate amortization expense of intangible assets in 2017 | 751 | |
Estimated aggregate amortization expense of intangible assets in 2018 | 748 | |
Estimated aggregate amortization expense of intangible assets in 2019 | 727 | |
Estimated aggregate amortization expense of intangible assets in 2020 | 690 | |
Estimated aggregate amortization expense of intangible assets in 2021 | $ 582 |
Accrued Expenses - Summary of A
Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Payables and Accruals [Abstract] | ||
Payroll, benefits and related taxes, excluding severance benefits | $ 16,724 | $ 24,982 |
Withholding tax attributable to intercompany interest income | 18,138 | 15,573 |
Interest on senior notes | 8,268 | 6,831 |
Outside service fees | 1,942 | 4,423 |
Others | 6,674 | 8,556 |
Accrued expenses | $ 51,746 | $ 60,365 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 10, 2015 | |
Securities Class Action Complaints [Member] | ||||||
Other Accrued Liabilities [Line Items] | ||||||
Proceeds from insurance settlement | $ 29,571 | |||||
Disbursements of accrued claims and settlements | $ 23,500 | |||||
Securities Class Action Complaints [Member] | Accrued Expense [Member] | ||||||
Other Accrued Liabilities [Line Items] | ||||||
Accrued claim settlement | $ 23,500 | $ 23,500 | ||||
Voluntary Resignation Program [Member] | ||||||
Other Accrued Liabilities [Line Items] | ||||||
Unpaid other termination benefits under the voluntary resignation program, current | $ 1,392 | |||||
Aggregate other termination benefits expense under the voluntary resignation program | $ 4,241 |
Derivative Financial Instrume70
Derivative Financial Instruments - Details of Derivative Contracts (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Zero Cost Collar One [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Jun. 22, 2017 | Nov. 11, 2016 |
Type of derivative | Zero cost collar | |
Total notional amount | $ 20,000,000 | $ 18,000,000 |
Month of settlement, start | 2018-01 | 2017-03 |
Month of settlement, end | 2018-02 | 2017-08 |
Zero Cost Collar Two [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Sep. 28, 2017 | |
Type of derivative | Zero cost collar | |
Total notional amount | $ 54,000,000 | |
Month of settlement, start | 2018-01 | |
Month of settlement, end | 2018-06 | |
Forward [Member] | ||
Derivative [Line Items] | ||
Date of transaction | Sep. 28, 2017 | |
Type of derivative | Forward | |
Total notional amount | $ 36,000,000 | |
Month of settlement, start | 2018-01 | |
Month of settlement, end | 2018-06 |
Derivative Financial Instrume71
Derivative Financial Instruments - Fair Values of Outstanding Zero Cost Collar and Forward Contracts Recorded as Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Zero Cost Collars [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | $ 2,827 | |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, Liability | $ 453 | |
Forward [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | 2,352 | |
Other Current Assets [Member] | Zero Cost Collars [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | 2,827 | |
Other Current Assets [Member] | Forward [Member] | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, Asset | $ 2,352 | |
Other Current Liabilities [Member] | Zero Cost Collars [Member] | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, Liability | $ 453 |
Derivative Financial Instrume72
Derivative Financial Instruments - Offsetting of Derivative Assets (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Zero Cost Collars [Member] | |
Derivative [Line Items] | |
Asset Derivatives, Gross amounts of recognized assets | $ 2,827 |
Asset Derivatives, Gross amounts offset in the balance sheets | 0 |
Asset Derivatives, Net amounts of assets presented in the balance sheets | 2,827 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | 0 |
Asset Derivatives, Net amount | 2,827 |
Forward [Member] | |
Derivative [Line Items] | |
Asset Derivatives, Gross amounts of recognized assets | 2,352 |
Asset Derivatives, Gross amounts offset in the balance sheets | 0 |
Asset Derivatives, Net amounts of assets presented in the balance sheets | 2,352 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Financial instruments | 0 |
Asset Derivatives, Gross amounts not offset in the balance sheets, Cash collateral pledged | 0 |
Asset Derivatives, Net amount | $ 2,352 |
Derivative Financial Instrume73
Derivative Financial Instruments - Offsetting of Derivative Liabilities (Detail) - Zero Cost Collars [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Derivative [Line Items] | |
Liability Derivatives, Gross amounts of recognized liabilities | $ 453 |
Liability Derivatives, Gross amounts offset in the balance sheets | 0 |
Liability Derivatives, Net amounts of liabilities presented in the balance sheets | 453 |
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 | (650) |
Liability Derivatives, Net amount after master netting | $ (197) |
Derivative Financial Instrume74
Derivative Financial Instruments - Impact of Derivative Instruments on Consolidated Statement of Operations (Detail) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ 7,736 | $ (1,032) |
Other Income, Net [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | 236 | (272) |
Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | 2,001 | |
Zero Cost Collars [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 4,692 | (1,032) |
Zero Cost Collars [Member] | Other Income, Net [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | 606 | (272) |
Zero Cost Collars [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | 1,501 | $ (637) |
Forward [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 3,044 | |
Forward [Member] | Other Income, Net [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (loss) Recognized in Statement of Operations on Derivatives (Ineffective Portion) | (370) | |
Forward [Member] | Net Sales [Member] | ||
Derivative [Line Items] | ||
Amount of Gain (loss) Reclassified from AOCI into Statement of Operations (Effective Portion) | $ 500 |
Derivative Financial Instrume75
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Estimated amount reclassified from accumulated other comprehensive income into income, period | 12 months | |
Estimated amount reclassified from accumulated other comprehensive income into income | $ 5,299,000 | |
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 | |
Zero Cost Collar and Forward Contracts [Member] | Nomura Financial Investment (Korea) Co., Ltd. [Member] | ||
Derivative [Line Items] | ||
Deposit with counterparty | 7,600,000 | |
Threshold amount of cash collateral | 500,000 | |
Cash collateral for credit exposure in derivatives | 0 | |
Termination provisions for cash and cash equivalents | $ 30,000,000 |
Product Warranties - Schedule o
Product Warranties - Schedule of Changes in Accrued Warranty Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Beginning balance | $ 466 | $ 1,425 | $ 2,973 |
Change in provision | (224) | (426) | (648) |
Usage | (65) | (527) | (758) |
Translation adjustments | 39 | (6) | (142) |
Ending balance | $ 216 | $ 466 | $ 1,425 |
Long-term Borrowings - Componen
Long-term Borrowings - Components of Long-term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Less: unamortized discount and debt issuance costs | $ (7,834) | $ (3,918) |
Long-term borrowings, net of unamortized discount and debt issuance costs | 303,416 | 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 - Compon78
Long-term Borrowings - Components of Long-term Borrowings (Parenthetical) (Detail) | Jan. 17, 2017 | Jul. 18, 2013 | Dec. 31, 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 | Dec. 31, 2017 | 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 | $ 5,349,000 | |||
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% | |
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 | $ 15,664,000 | $ 15,613,000 | ||
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% | ||
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 | |||
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 | $ 5,349,000 |
Accrued Severance Benefits - Ad
Accrued Severance Benefits - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Percentage of employees eligible for severance benefits | 98.00% |
Korea [Member] | Minimum [Member] | |
Retirement age of employees | 57 years |
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 | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Postemployment Benefits [Abstract] | |||
Beginning balance | $ 130,144 | $ 135,160 | |
Provisions | 24,373 | 14,432 | $ 15,289 |
Severance payments | (21,506) | (15,352) | (11,394) |
Translation adjustments | 16,785 | (4,096) | |
Ending balance | 149,796 | 130,144 | $ 135,160 |
Less: Cumulative contributions to the National Pension Fund | (259) | (276) | |
Group severance insurance plan | (632) | (643) | |
Accrued severance benefits, net | $ 148,905 | $ 129,225 |
Accrued Severance Benefits - Fu
Accrued Severance Benefits - Future Benefits Payments to Employees (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Retirement Benefits [Abstract] | |
2,018 | $ 0 |
2,019 | 610 |
2,020 | 1,094 |
2,021 | 1,573 |
2,022 | 1,584 |
2023 - 2027 | $ 20,541 |
Common Stock - Additional Infor
Common Stock - Additional Information (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 42,563,808 | 41,627,103 |
Common stock, shares outstanding | 34,189,599 | 35,048,338 |
Common Stock - Schedule of Chan
Common Stock - Schedule of Changes in Common Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Balance, Shares beginning | 35,048,338 | ||
Exercise of stock options, Shares | 539,183 | 296,103 | 512,474 |
Acquisition of treasury stock, Shares | (1,795,444) | ||
Balance, Shares ending | 34,189,599 | 35,048,338 | |
Balance, beginning | $ (72,114) | $ (62,330) | $ (18,502) |
Exercise of stock options | 3,744 | 1,733 | 3,436 |
Acquisitions of treasury stock | 11,401 | ||
Balance, ending | (39,637) | (72,114) | (62,330) |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Balance, beginning | 416 | 411 | 406 |
Exercise of stock options | 6 | 3 | 5 |
Settlement of restricted stock units | 4 | 2 | |
Acquisitions of treasury stock | 0 | 0 | |
Balance, ending | $ 426 | $ 416 | $ 411 |
Common Stock Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Balance, Shares beginning | 35,048,338 | 34,568,942 | 34,056,468 |
Exercise of stock options, Shares | 539,183 | 296,103 | 512,474 |
Settlement of restricted stock units, Shares | 397,522 | 183,293 | |
Acquisition of treasury stock, Shares | (1,795,444) | ||
Balance, Shares ending | 34,189,599 | 35,048,338 | 34,568,942 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options period shall not exceed from the date of grant | 10 years | ||
Number of shares authorized | 7,975,000 | ||
Number of shares reserved for future issuance | 1,104,000 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share based compensation expense | $ 1,601 | $ 2,292 | $ 1,400 |
Unrecognized compensation cost related to unvested restricted stock units | $ 1,364 | ||
Unrecognized compensation cost, period for recognition | 9 months 18 days | ||
Fair value of restricted stock units vested | $ 2,107 | 717 | 993 |
Restricted Stock Units [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock vesting period | 1 year | ||
Restricted Stock Units [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock vesting period | 3 years | ||
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share based compensation expense | $ 734 | 1,551 | 1,368 |
Unrecognized compensation cost, period for recognition | 7 months 6 days | ||
Unrecognized compensation cost related to stock options | $ 339 | ||
Weighted average grant-date fair value of vested options | $ 794 | $ 1,011 | $ 1,361 |
Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock vesting period | 1 year | ||
Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock vesting period | 3 years |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Restricted Stock Unit Activities (Detail) - Restricted Stock Units [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Restricted Stock Units, Outstanding Beginning Balance | 518,480 | 135,370 | |
Number of Restricted Stock Units, Granted | 172,716 | 505,689 | 265,332 |
Number of Restricted Stock Units, Vested | (368,555) | (101,240) | (129,962) |
Number of Restricted Stock Units, Forfeited | (830) | (21,339) | |
Number of Restricted Stock Units, Outstanding Ending Balance | 321,811 | 518,480 | 135,370 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Outstanding Beginning Balance | $ 5.94 | $ 7.72 | |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Granted | 11.15 | 5.71 | $ 7.68 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Vested | 5.72 | 7.09 | 7.64 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Forfeited | 8.33 | 6.24 | |
Weighted Average Grant-Date Fair Value of Restricted Stock Units, Outstanding Ending Balance | $ 8.99 | $ 5.94 | $ 7.72 |
Equity Incentive Plans - Summ87
Equity Incentive Plans - Summary of Stock Option Activities (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Outstanding Beginning Balance, Number of Options | 3,428,665 | 3,179,899 | 3,215,945 | |
Granted, Number of Options | 70,865 | 827,406 | 802,193 | |
Forfeited, Number of Options | (88,443) | (282,537) | (325,765) | |
Exercised, Number of Options | (539,183) | (296,103) | (512,474) | |
Outstanding Ending Balance, Number of Options | 2,871,904 | 3,428,665 | 3,179,899 | 3,215,945 |
Vested and expected to vest, Number of Options | 2,865,475 | 3,389,763 | 3,155,828 | |
Exercisable, Number of Options | 2,395,979 | 2,531,243 | 2,547,902 | |
Outstanding Beginning Balance, Weighted Average Exercise Price of Stock Options | $ 9.23 | $ 9.61 | $ 9.60 | |
Granted, Weighted Average Exercise Price of Stock Options | 10.43 | 6.04 | 7.92 | |
Forfeited, Weighted Average Exercise Price of Stock Options | 12.77 | 7.67 | 9.88 | |
Exercised, Weighted Average Exercise Price of Stock Options | 6.94 | 5.85 | 6.70 | |
Outstanding Ending Balance, Weighted Average Exercise Price of Stock Options | 9.59 | 9.23 | 9.61 | $ 9.60 |
Vested and expected to vest, Weighted Average Exercise Price of Stock Options | 9.59 | 9.27 | 9.62 | |
Exercisable, Weighted Average Exercise Price of Stock Options | $ 10.11 | $ 10.11 | $ 9.63 | |
Outstanding Beginning Balance, Aggregate Intrinsic Value of Stock Options | $ 525 | $ 39,615 | ||
Exercised, Aggregate Intrinsic Value of Stock Options | 1,540 | $ 806 | $ 692 | |
Outstanding Ending Balance, Aggregate Intrinsic Value of Stock Options | 6,073 | 525 | $ 39,615 | |
Vested and expected to vest, Aggregate Intrinsic Value of Stock Options | 6,050 | 508 | ||
Exercisable, Aggregate Intrinsic Value of Stock Options | $ 4,603 | $ 236 | ||
Outstanding, Weighted Average Remaining Contractual Life of Stock Options | 6 years 2 months 12 days | 6 years 8 months 12 days | 6 years 8 months 12 days | 6 years 7 months 6 days |
Vested and expected to vest, Weighted Average Remaining Contractual Life of Stock Options | 6 years 2 months 12 days | 6 years 8 months 12 days | 6 years 8 months 12 days | |
Exercisable, Weighted Average Remaining Contractual Life of Stock Options | 5 years 8 months 12 days | 5 years 10 months 25 days | 6 years | |
Outstanding, Weighted Average Remaining Contractual Life of Stock Options | 6 years 2 months 12 days | 6 years 8 months 12 days | 6 years 8 months 12 days | 6 years 7 months 6 days |
Equity Incentive Plans - Assump
Equity Incentive Plans - Assumptions used in Black-Scholes Option-Pricing Model on Weighted Average Basis (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Grant-date fair value of option | $ 5.02 | $ 1.54 | $ 1.67 |
Expected term | 2 years 6 months | 2 years 8 months 12 days | 2 years 4 months 24 days |
Risk-free interest rate | 1.20% | 1.00% | 0.80% |
Expected volatility | 81.70% | 36.80% | 33.80% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Equity Incentive Plans - Number
Equity Incentive Plans - Number and Weighted Average Grant-Date Fair Value of Unvested Stock Options (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Outstanding Beginning Balance, Number of Options | 897,421 | 631,997 | 455,543 |
Granted options during the period, Number | 70,865 | 827,406 | 802,193 |
Vested options during the period, Number | (455,301) | (446,570) | (532,682) |
Forfeited options during the period, Number | (19,031) | (85,934) | (92,959) |
Exercised options during the period, Number | (18,029) | (29,478) | (98) |
Outstanding Ending Balance, Number of Options | 475,925 | 897,421 | 631,997 |
Unvested options at the beginning of the period, Weighted Average Grant-Date Fair Value | $ 1.72 | $ 2.40 | $ 4.18 |
Granted options during the period, Weighted Average Grant-Date Fair Value | 5.02 | 1.54 | 1.67 |
Vested options during the period, Weighted Average Grant-Date Fair Value | 1.74 | 2.26 | 2.56 |
Forfeited options during the period, Weighted Average Grant-Date Fair Value | 1.77 | 1.88 | 4.01 |
Exercised options during the period, Weighted Average Grant-Date Fair Value | 1.59 | 1.24 | 3.08 |
Unvested options at the end of the period, Weighted Average Grant-Date Fair Value | $ 2.19 | $ 1.72 | $ 2.40 |
Restructuring and Other Charg90
Restructuring and Other Charges (Gain), Net - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restricted cash | $ 18,251 | $ 18,251 | |||||
Deposits received | 16,549 | 16,549 | |||||
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 | 1,655 | |||||
Restricted cash | 18,204 | 18,204 | |||||
Deposits received | $ 16,549 | $ 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 | 12 Months Ended | ||
Jun. 30, 2017USD ($)Employee_Position | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
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 | $ 2,262 | $ 11,107 | ||
Number of employees elected to resign | Employee_Position | 352 |
Foreign Currency Gain (Loss),92
Foreign Currency Gain (Loss), Net - Additional Information (Detail) $ in Thousands | Dec. 31, 2017USD ($)₩ / $ | Dec. 31, 2016USD ($)₩ / $ | Dec. 31, 2015USD ($)₩ / $ |
Foreign Currency Transaction [Abstract] | |||
Exchange rates using first base rate | ₩ / $ | 1,071.4 | 1,208.5 | 1,172 |
Intercompany loan balances | $ | $ 677,267 | $ 598,212 | $ 591,388 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income (loss) before income taxes | |||
Domestic | $ 27,461 | $ (1,738) | $ 32,903 |
Foreign | 58,630 | (24,133) | (132,857) |
Income (loss) before income tax expenses | 86,091 | (25,871) | (99,954) |
Current income taxes expense (benefit) | |||
Domestic | (359) | (6) | 25 |
Foreign | 3,680 | 3,386 | (14,301) |
Uncertain tax position liability | (2,111) | 351 | (1,211) |
Current income taxes expense | 1,210 | 3,731 | (15,486) |
Deferred income taxes expense (benefit) | |||
Foreign | (55) | 13 | 399 |
Income tax expense (benefit) | $ 1,155 | $ 3,744 | $ (15,087) |
Effective tax rate | 1.30% | (14.50%) | 15.10% |
Domestic [Member] | |||
Current income taxes expense (benefit) | |||
Uncertain tax position liability | $ (476) | $ 12 | $ 10 |
Foreign [Member] | |||
Current income taxes expense (benefit) | |||
Uncertain tax position liability | $ (1,635) | $ 339 | $ (1,220) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2015 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Income Tax Contingency [Line Items] | |||||||||
Statutory income tax rate | 35.00% | ||||||||
Partial unpaid interest amount waiver on intercompany loan | $ 174,000 | ||||||||
Income tax benefit recognized | $ 17,800 | ||||||||
Tax expense due to change in statutory tax rates, TCJA | $ 13,438 | ||||||||
Penalty | 4,001 | $ 689 | |||||||
Change in net operating loss carry-forwards | 6,878 | ||||||||
Permanent impairment | (62,334) | ||||||||
Net deferred tax assets | 171 | $ 264 | 264 | 183 | 171 | ||||
Deferred tax assets, valuation allowance amount | 279,867 | 251,132 | 251,132 | 281,473 | 279,867 | $ 194,739 | |||
Net operating loss carry-forwards | 770,233 | 770,233 | |||||||
Net operating loss utilized | $ 417 | 279 | 121 | ||||||
Net operating loss expiration date | 2,037 | ||||||||
Income tax benefit, minimum tax amounts refundable, TCJA | $ 381 | ||||||||
Income tax expenses (benefits) | 1,155 | 3,744 | (15,087) | ||||||
Recognized interest and penalties as income tax expense | (712) | ||||||||
Total interest and penalties accrued | $ 359 | 8 | 8 | $ 691 | $ 359 | ||||
Income tax penalties | $ 6,030 | ||||||||
Accrued tax penalties | 3,336 | ||||||||
Employee withholding amounts | 548 | ||||||||
Administrative fine related to tax audit | $ 2,034 | ||||||||
Selling, General and Administrative Expenses [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Income tax penalties | 4,179 | ||||||||
Other Receivable [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Employee withholding amounts | 548 | ||||||||
Securities and Exchange Commission Actions [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Settlement charge | $ 3,000 | 3,000 | |||||||
Scenario, Forecast [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Statutory income tax rate | 21.00% | ||||||||
KNTS Audit [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Income tax expenses (benefits) | 676 | ||||||||
Luxembourg Subsidiary [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Net operating loss carry-forwards | 310,975 | 310,975 | |||||||
Korean Statutory Tax Rate [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Tax credit carry-forwards | 5,639 | $ 5,639 | |||||||
Net operating loss carry-forwards, expiration period | The Korean tax credits expire at various dates starting from 2018 to 2022 | ||||||||
Dutch [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Tax credit carry-forwards | 14,936 | $ 14,936 | |||||||
Net operating loss carry-forwards, expiration period | Indefinite period of time | ||||||||
U.S [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Tax credit carry-forwards | 9 | $ 9 | |||||||
Korean Subsidiary [Member] | |||||||||
Income Tax Contingency [Line Items] | |||||||||
Statutory income tax rate | 24.20% | 24.20% | 24.20% | ||||||
Net operating loss carry-forwards | $ 281,383 | $ 281,383 | |||||||
Net operating loss expiration date | 2,026 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between Provision for Domestic and Foreign Income Taxes and Amount Calculated by Statutory Tax Rate to Net Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Provision computed at statutory rate | $ 30,223 | $ (9,055) | $ (34,984) |
Change in statutory tax rates | 13,438 | ||
Difference in foreign tax rates | (12,344) | 1,995 | 24,359 |
Permanent differences | |||
Derivative assets adjustment | 1,937 | (149) | (143) |
TPECs, hybrid and other interest | (7,526) | (10,353) | (27,273) |
Permanent impairment | (62,334) | ||
Thin capitalization | 1,888 | 2,120 | 2,457 |
Permanent foreign currency gain (loss) | (838) | (54) | 11,575 |
Penalty | 4,001 | 689 | |
Non-deductible bad debt expense | 89 | ||
Other permanent differences | 633 | 50 | (69) |
Withholding tax | 3,339 | 3,092 | (14,457) |
Foreign exchange rate adjustment | 16,075 | (1,838) | (8,954) |
Change in valuation allowance | (56,744) | 10,095 | 95,757 |
Tax credits claimed | (659) | (706) | (875) |
Tax credits expired | 2,638 | 1,578 | |
Uncertain tax positions liability | (2,111) | 351 | (1,211) |
Change in net operating loss carry-forwards | 6,878 | ||
Others | 327 | 5,929 | 976 |
Income tax expense (benefit) | $ 1,155 | $ 3,744 | $ (15,087) |
Income Taxes - Summary of Compo
Income Taxes - Summary of Composition of Net Deferred Income Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||||
Inventory reserves | $ 1,630 | $ 1,822 | ||
Derivative assets | 110 | |||
Derivative liabilities | (1,253) | |||
Accrued expenses | 2,826 | 2,803 | ||
Product warranties | 52 | 113 | ||
Other reserves | 356 | 372 | ||
Property, plant and equipment | 9,759 | 13,314 | ||
Intangible assets | 35 | 103 | ||
Accumulated severance benefits | 36,245 | 31,478 | ||
Foreign currency translation losses | 20,067 | 53,130 | ||
NOL carry-forwards | 175,543 | 167,590 | ||
Tax credit | 20,583 | 20,249 | ||
Other long-term payable | 1,801 | 2,079 | ||
Others | 3,546 | 4,885 | ||
Total deferred tax assets | 271,190 | 298,048 | ||
Less: Valuation allowance | (251,132) | (281,473) | $ (279,867) | $ (194,739) |
Deferred tax assets, net | 20,058 | 16,575 | ||
Deferred tax liabilities | ||||
Foreign currency translation gains | 18,187 | 14,338 | ||
Prepaid expense | 1,464 | 1,644 | ||
Others | 143 | 410 | ||
Total deferred tax liabilities | 19,794 | 16,392 | ||
Net deferred tax assets | 264 | 183 | 171 | |
Reported as | ||||
Current deferred income tax assets | 37 | |||
Non-current deferred income tax assets | 264 | 193 | ||
Current deferred income tax liabilities | (46) | |||
Non-current deferred income tax liabilities | (1) | |||
Net deferred tax assets | $ 264 | $ 183 | $ 171 |
Income Taxes - Changes in Valua
Income Taxes - Changes in Valuation Allowance for Deferred Tax Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 281,473 | $ 279,867 | $ 194,739 |
Charged to expense | (54,816) | 10,095 | 95,757 |
NOL/tax credit claimed/expired | (1,928) | (872) | (1,197) |
Translation adjustments | 26,403 | (7,617) | (9,432) |
Ending balance | $ 251,132 | $ 281,473 | $ 279,867 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Total Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, balance at the beginning | $ 2,459 | $ 2,139 | $ 3,495 |
Additions based on tax positions related to the current year | 10 | 371 | 351 |
Additions for tax positions of prior years | 317 | ||
Reductions for tax positions of prior years | (676) | (135) | |
Lapse of statute of limitations | (735) | (670) | (1,318) |
Additions (reductions) of interest and penalties | (712) | 334 | (108) |
Translation adjustments | 137 | (32) | (146) |
Unrecognized tax benefits, balance at the ending | $ 483 | $ 2,459 | $ 2,139 |
Income Taxes - Reconciliation99
Income Taxes - Reconciliation of Total Amounts of Uncertain Tax Positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Uncertain tax positions, balance at the beginning | $ 11,894 | $ 13,330 | $ 14,969 |
Additions based on tax positions related to the current year | (366) | 942 | 1,789 |
Additions (reductions) for tax positions of prior years | (8,923) | 317 | |
Lapse of statute of limitations | (2,218) | (2,380) | (2,142) |
Translation adjustments | 675 | (315) | (1,287) |
Uncertain tax positions, balance at the ending | $ 1,062 | $ 11,894 | $ 13,330 |
Geographic and Segment Infor100
Geographic and Segment Information - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015Segments | Mar. 31, 2015Segments | Dec. 31, 2017CustomerSegments | Dec. 31, 2016Customer | Dec. 31, 2015Customer | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | Segments | 2 | 2 | |||
As Previously Reported [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of operating segments | Segments | 1 | ||||
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 | Customer | 1 | 2 | 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 | 57.00% | 64.00% | 64.00% | ||
Number of customers | Customer | 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 | 15.60% | 23.50% | 15.20% | ||
Customer Concentration Risk [Member] | Net Sales [Member] | Top Customer Two [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Concentration risk, percentage | 11.40% | 11.00% | |||
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 Infor101
Geographic and Segment Information - Schedule of Operating Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | $ 174,580 | $ 176,697 | $ 166,685 | $ 161,710 | $ 180,462 | $ 192,296 | $ 167,106 | $ 148,105 | $ 679,672 | $ 687,969 | $ 633,712 |
Total gross profit | $ 49,351 | $ 50,310 | $ 46,662 | $ 41,570 | $ 46,089 | $ 39,139 | $ 36,749 | $ 34,249 | 187,893 | 156,226 | 134,864 |
Operating Segments [Member] | Foundry Services Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 320,089 | 273,961 | 290,775 | ||||||||
Total gross profit | 95,458 | 69,412 | 66,175 | ||||||||
Operating Segments [Member] | Standard Products Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 359,375 | 413,435 | 342,294 | ||||||||
Total gross profit | 92,227 | 87,194 | 68,094 | ||||||||
Operating Segments [Member] | Standard Products Group [Member] | Display Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 209,539 | 281,967 | 207,480 | ||||||||
Operating Segments [Member] | Standard Products Group [Member] | Power Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 149,836 | 131,468 | 134,814 | ||||||||
All Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total net sales | 208 | 573 | 643 | ||||||||
Total gross profit | $ 208 | $ (380) | $ 595 |
Geographic and Segment Infor102
Geographic and Segment Information - Net Sales by Region, Based on Location of Products are Billed (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $ 174,580 | $ 176,697 | $ 166,685 | $ 161,710 | $ 180,462 | $ 192,296 | $ 167,106 | $ 148,105 | $ 679,672 | $ 687,969 | $ 633,712 |
Korea [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 279,883 | 219,618 | 241,715 | ||||||||
Asia Pacific (Other Than Korea) [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 322,595 | 391,875 | 316,562 | ||||||||
U.S.A. [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 35,089 | 33,201 | 51,164 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | 41,109 | 42,274 | 23,461 | ||||||||
Others [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Total net sales | $ 996 | $ 1,001 | $ 810 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 18, 2016 | Feb. 05, 2016 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 10, 2015 |
Loss Contingencies [Line Items] | ||||||||||
Initial term of leases | 20 years | |||||||||
Renewal terms of leases | 10 years | |||||||||
Notice period upon cancellation of leases | 90 days | |||||||||
Rental expenses | $ 7,498 | $ 8,898 | $ 8,194 | |||||||
Restricted cash | 18,251 | |||||||||
Shareholder Derivative Actions [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Attorneys' fee and litigation expenses | $ 750 | |||||||||
Settlement charge paid | 2,258 | |||||||||
Proceeds from insurance settlement | $ 3,000 | |||||||||
Insurance proceeds in restricted cash reclassified from other receivables | (3,078) | |||||||||
Settlement charge paid, portion excluding interest | $ 2,250 | |||||||||
Securities Class Action Complaints [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Damages sought | $ 23,500 | |||||||||
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 | |||||||||
Securities Class Action Complaints [Member] | Accrued Expense [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Accrued claim settlement | 23,500 | $ 23,500 | ||||||||
Securities Class Action Complaints [Member] | Other Receivables [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Insurance receivable | $ 29,571 | |||||||||
Securities and Exchange Commission Actions [Member] | ||||||||||
Loss Contingencies [Line Items] | ||||||||||
Attorneys' fee and litigation expenses | $ 3,000 | $ 3,000 | ||||||||
Settlement charge paid | $ 3,000 |
Commitments and Contingencie104
Commitments and Contingencies - Schedule of Minimum Aggregate Rental Payments Due Under Non-Cancelable Lease Contracts (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 6,724 |
2,019 | 3,764 |
2,020 | 3,459 |
2,021 | 1,472 |
2,022 | 1,316 |
2023 and thereafter | 15,448 |
Minimum aggregate rental payments due under non-cancelable lease contracts | $ 32,183 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2017 | Nov. 07, 2017 | |
Related Party Transaction [Line Items] | |||
Stock repurchased, shares | 1,795,444 | ||
Stock repurchased, value | $ 11,401,000 | ||
Engaged Capital, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Common stock outstanding affiliated percentage | 11.90% | ||
Maximum percentage of exchangeable notes conversion | 9.99% | ||
Engaged Capital, LLC [Member] | Maximum [Member] | |||
Related Party Transaction [Line Items] | |||
Common stock outstanding affiliated percentage | 5.00% | ||
Engaged Capital Flagship Master Fund, LP [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate principal amount | $ 4,496,288 | ||
Stock repurchased, shares | 347,850 | ||
Stock repurchased, value | $ 2,209,000 | ||
Engaged Capital Account [Member] | |||
Related Party Transaction [Line Items] | |||
Aggregate principal amount | $ 503,712 | ||
Stock repurchased, shares | 52,150 | ||
Stock repurchased, value | $ 331,000 |
Accumulated Other Comprehens106
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | ||
Foreign currency translation adjustments | $ (38,413) | $ 14,460 |
Derivative adjustments | 5,299 | (436) |
Total | $ (33,114) | $ 14,024 |
Accumulated Other Comprehens107
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | $ (72,114) | $ (62,330) | $ (18,502) |
Total other comprehensive income (loss) | (47,138) | 14,255 | 34,835 |
Balance, ending | (39,637) | (72,114) | (62,330) |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | 14,460 | (190) | (35,551) |
Other comprehensive income (loss) before reclassifications | (52,873) | 14,650 | 35,361 |
Total other comprehensive income (loss) | (52,873) | 14,650 | 35,361 |
Balance, ending | (38,413) | 14,460 | (190) |
Derivative Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | (436) | (41) | 485 |
Other comprehensive income (loss) before reclassifications | 7,736 | (1,032) | (3,748) |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,001) | 637 | 3,222 |
Total other comprehensive income (loss) | 5,735 | (395) | (526) |
Balance, ending | 5,299 | (436) | (41) |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance, beginning | 14,024 | (231) | (35,066) |
Other comprehensive income (loss) before reclassifications | (45,137) | 13,618 | 31,613 |
Amounts reclassified from accumulated other comprehensive income (loss) | (2,001) | 637 | 3,222 |
Total other comprehensive income (loss) | (47,138) | 14,255 | 34,835 |
Balance, ending | $ (33,114) | $ 14,024 | $ (231) |
Earnings (Loss) per Share - Sch
Earnings (Loss) per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) | $ 43,653 | $ 5,604 | $ (8,059) | $ 43,738 | $ (49,790) | $ 29,866 | $ (17,816) | $ 8,125 | $ 84,936 | $ (29,615) | $ (84,867) |
Basic weighted average common stock outstanding | 34,176,812 | 34,103,029 | 33,952,574 | 33,662,297 | 35,068,330 | 34,849,805 | 34,716,081 | 34,698,904 | 33,943,264 | 34,833,967 | 34,380,517 |
Basic earnings (loss) per share | $ 1.28 | $ 0.16 | $ (0.24) | $ 1.30 | $ (1.42) | $ 0.86 | $ (0.51) | $ 0.23 | $ 2.50 | $ (0.85) | $ (2.47) |
Diluted Earnings per Share | |||||||||||
Net income (loss) | $ 43,653 | $ 5,604 | $ (8,059) | $ 43,738 | $ (49,790) | $ 29,866 | $ (17,816) | $ 8,125 | $ 84,936 | $ (29,615) | $ (84,867) |
Add back: Interest expense on Exchangeable Notes | 5,349 | ||||||||||
Net income (loss) allocated to common stockholders | $ 90,285 | $ (29,615) | $ (84,867) | ||||||||
Basic weighted average common stock outstanding | 34,176,812 | 34,103,029 | 33,952,574 | 33,662,297 | 35,068,330 | 34,849,805 | 34,716,081 | 34,698,904 | 33,943,264 | 34,833,967 | 34,380,517 |
Net effect of dilutive equity awards | 821,664 | ||||||||||
Net effect of assumed conversion of 5.0% Exchangeable Notes to common stock | 9,990,209 | ||||||||||
Diluted weighted average common stock outstanding | 45,573,889 | 45,542,418 | 33,952,574 | 42,892,044 | 35,068,330 | 35,302,706 | 34,716,081 | 34,918,568 | 44,755,137 | 34,833,967 | 34,380,517 |
Diluted earnings (loss) per share | $ 0.99 | $ 0.15 | $ (0.24) | $ 1.05 | $ (1.42) | $ 0.85 | $ (0.51) | $ 0.23 | $ 2.02 | $ (0.85) | $ (2.47) |
Earnings (Loss) per Share - 109
Earnings (Loss) per Share - Schedule of Computation of Basic and Diluted Earnings (Loss) Per Common Share (Parenthetical) (Detail) | Dec. 31, 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 (Loss) per Share - 110
Earnings (Loss) per Share - Schedule of Antidilutive Securities Excluded from the Computation of Loss Per Common Share (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | 835,572 | 3,428,665 | 3,179,899 |
Restricted Stock Units [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 | 518,480 | 135,370 |
Quarterly Financial Result - Sc
Quarterly Financial Result - Schedule of Selected Consolidated Statements of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 174,580 | $ 176,697 | $ 166,685 | $ 161,710 | $ 180,462 | $ 192,296 | $ 167,106 | $ 148,105 | $ 679,672 | $ 687,969 | $ 633,712 |
Gross profit | 49,351 | 50,310 | 46,662 | 41,570 | 46,089 | 39,139 | 36,749 | 34,249 | 187,893 | 156,226 | 134,864 |
Operating income (loss) | 7,637 | 15,490 | 9,742 | 6,367 | 5,229 | 618 | (7,377) | 4,267 | 39,236 | 2,737 | (42,934) |
Net income (loss) | $ 43,653 | $ 5,604 | $ (8,059) | $ 43,738 | $ (49,790) | $ 29,866 | $ (17,816) | $ 8,125 | $ 84,936 | $ (29,615) | $ (84,867) |
Earnings (loss) per share: | |||||||||||
Basic | $ 1.28 | $ 0.16 | $ (0.24) | $ 1.30 | $ (1.42) | $ 0.86 | $ (0.51) | $ 0.23 | $ 2.50 | $ (0.85) | $ (2.47) |
Diluted | $ 0.99 | $ 0.15 | $ (0.24) | $ 1.05 | $ (1.42) | $ 0.85 | $ (0.51) | $ 0.23 | $ 2.02 | $ (0.85) | $ (2.47) |
Weighted average common stock outstanding: | |||||||||||
Basic | 34,176,812 | 34,103,029 | 33,952,574 | 33,662,297 | 35,068,330 | 34,849,805 | 34,716,081 | 34,698,904 | 33,943,264 | 34,833,967 | 34,380,517 |
Diluted | 45,573,889 | 45,542,418 | 33,952,574 | 42,892,044 | 35,068,330 | 35,302,706 | 34,716,081 | 34,918,568 | 44,755,137 | 34,833,967 | 34,380,517 |